Friday, January 21, 2011

To General Motors

Dear GM and new global product head, Ms. Mary Barra:

I've just been reading today's Wall Street Journal and I noticed that GM has been having some problems. Now, to be completely honest when it comes to American cars I'm pretty loyal to Ford, but I want to put in my two cents that may or may not be insightful for you.

I read that in 2007 40% of your sales came from new or heavily redesigned vehicles. This year you expect that only 12% of your sales will come from the same category of vehicles. I see this as a pretty big problem for you. I'm not very familiar with GM and your base strategy, but it seems to me that recently GM has tried to focus on driving innovation and meeting the demand of drivers everywhere for more efficient and safe vehicles. This drop in percentage of sales of new or heavily redesigned vehicles strikes me as a problem, and it reminds me of a problem another company that I am more familiar with once had: Apple.

Upon founding Apple, the CEO Steve Jobs said that he wanted to change the world through technology and innovation. Recent apparent GM strategy has shown me that this is possibly your goal as well. Like Apple in the 1990's, it seems like you have lost sight of this in recent years. When Steve Jobs came back to Apple in 1997 he made an impactful effort to return to their core strategy. It didn't take long for Apple to refocus this strategy and develop innovative new products that have led them to become the consumer electronic giant that it currently is.

It was once said that Apple was like a boat with a hole in it and a treasure on board with everyone rowing in different directions. The hole to me is the loss of focus on the strategy of innovation and as a result everyone loses their direction. The treasure of course is the potential for huge profitability. I see the same thing beginning with the GM boat in recent years. You are possibly losing focus on your strategy for innovation and people are losing their direction. You, as one of America's great auto makers, have an enormous potential sitting in your boat. To you, Ms. Barra and to the rest of GM, I suggest you plug your hole fast. Refocus on driving auto innovation and showing consumers what is possible with their cars and point the company in the right direction.

Live free, drive hard. Go America.

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