Ed Whitacre p2 - Fixing the Fabric of the United States
This is part two of a two part series. So, don’t miss part one if you haven’t heard it.
The General Motors Years:
Fast forward to a time when I received an unexpected call from the White House, shortly after retiring for a few years. They asked me to consider helping General Motors escape bankruptcy—an endeavor that initially left me perplexed considering my lack of knowledge about automobiles. However, they reminded me that my expertise lay in managing companies, and General Motors required just that. With their persuasive argument of serving my country and the absence of a substantial financial incentive, I decided to take on the challenge.
Upon joining General Motors, I swiftly gathered all senior managers for a meeting. As we delved into discussions about the company's bankruptcy, their answer astonished me: "We don't know why we went bankrupt; we were doing everything right." Armed with this insight, I realized we needed to assess the management team and swiftly implement changes that would redefine General Motors' identity.
We established a simple slogan: "Design, build, and sell the world's best vehicles." This clear focus, coupled with decisive upper management modifications, led to a rapid turnaround. Within a matter of months, we transformed from losing money to making a billion-dollar profit.
There were skeptics who doubted General Motors' ability to bounce back. Rumors circulated, including reports originating from the White House claiming that the company was beyond repair. However, these naysayers were proven wrong. General Motors proved that success lies in efficient management, strategic decision-making, and an unwavering commitment to designing, building, and selling superior vehicles.
During my tenure, I encountered various challenges, such as the controversial decision to move employees to a different campus thirty miles away from downtown Detroit. Unconvinced of the necessity behind this decision, I promptly canceled the relocation plans, causing some initial unrest.
Additionally, my hands-on management style drove me to interact with employees at all levels, including visiting the United Auto Workers (UAW) headquarters. By fostering a dialogue with the UAW's president, Ron, we established a common goal—ensuring the success of both General Motors and its workforce.
Throughout my career, I have remained steadfastly loyal to the companies I have associated with, namely AT&T and General Motors. In line with this commitment, I expect those who do business with us to share the same loyalty. If they wanted to secure loans from our company, they needed to invest in our vehicles by driving Cadillacs or Buicks. This philosophy ensured that our partners had a stake in our success and demonstrated their commitment to our shared growth.
I cannot overlook the rise of electric cars and General Motors' pioneering role. Our initial foray into electric vehicles with the introduction of the Volt marked a significant milestone. As climate change concerns and technological advancements continue to shape consumer preferences, the future of General Motors lies in embracing these changes and improving battery technology. With companies like Tesla pushing the boundaries of innovation, the possibility for electric vehicles to dominate the market is not far-fetched.
Today, as I enjoy retirement with my family, including my two accomplished daughters, one residing in San Antonio and the other in Dallas, I reflect on the legacies I have helped build. The engineering school named after me at Texas Tech stands as a testament to my commitment to education, while my continued allegiance to Cadillac exemplifies my unwavering support for the brands I believe in.
In a world where skeptics question America's competitive edge and the strength of our economy, I reaffirm my belief in our nation's capacity for greatness. While challenges may arise, we possess the ingenuity, resilience, and talent to remain at the forefront of innovation and success. My experience at General Motors taught me the power of transformative leadership, the importance of fostering relationships, and the value of making difficult decisions for the greater good.
Remember, luck never hits a guy sitting in the shade.
