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TRAVERSE CITY, Mich. — The General Motors of today is a faster-moving organization that doesn't waste time in making prudent decisions, the company's chairman and chief executive officer claims.

In fact, the automaker puts forth the effort to make decisions that are smart for business, but is being quick about it, Edward Whitacre said last week during a speech at the CAR Management Briefing Seminars in Traverse City, Mich.  

This is certainly a change from the GM of old, which was often criticized for being slow-moving and slow to change.

"We're changing the way we do business at GM — doing all we can to make smart decisions and make them fast … while clearing the underbrush that can impede good thinking," Whitacre pointed out.

He cited the expedient introduction of GM Ventures in June, a new subsidiary seeking out and building new technologies for the automaker to offer its customers.

This was launched "in a matter of weeks," Whitacre pointed out.

He also noted the swiftness in which AmeriCredit deal was conducted, emphasizing that this deal only took roughly a month to form and that were "no consultants, no drawn-out analysis … and no doubts, either." 

This thoughtful expediency surrounding GM's decision making was just one of four key factors that have been spurring GM's comeback along, according to Whitacre.

During his speech, he also honed in on the company's clear focus, the revamped team and organization, and the quality of the end product.

Whitacre also shared a few examples of where opportunities lie for GM to "reshape" itself and have an impact on the overall industry, as well.

This all started with change.

The Difference a Year Makes

In the outset of his speech, Whitacre painted a picture of how things have changed dramatically in the last year for the automaker.

To illustrate the progress GM has made, Whitacre said the exact same problems that existed in 2009 still exist today … but for totally different reasons.

This time, there's a positive undertone.

"This is my first time at this conference, so I hope you will take it easy on me. You were nice enough to invite me last year … but at the time, I was still trying to figure out my way around the RenCen without getting lost," Whitacre said in his opening remarks

"Plus, this time last year, I had nothing but problems everywhere I looked," he added. "Angry dealers. Irate suppliers. Upset customers. Worried employees. You name it. So you can understand why I wasn't racing up here to this event.

"Today, our dealers are unhappy because we can't make cars, trucks and crossovers fast enough. Our suppliers are frantically trying to keep up with demand," he shared.

"Our employees are stressed because many had to forgo the usual summer shutdown so we could keep up production," Whitacre added. "And we have some customers upset because they don't want to wait on their new GM vehicles.

"Now, no one wants problems," he continued. "But if you have to have them, these are the kinds of problems we like to have."

How the Turnaround Happened

Beyond the quicker decision making, the GM chief also explained the other factors he believes are leading the turnaround.

Whitacre said GM's focus has been made clear.

"Today, GM has a clear and simple vision:  ‘Design, build and sell the world's best vehicles,'" he noted. "That's what we do … that's all we do.  Everyone at GM knows this and has rallied around it.  Anything that does not support this vision has either been stopped, or is on its way out."

Next, Whitacre delved into how the automaker's reorganization and the bolstering of its team has borne fruit. Citing the popular expression, "Nothing concentrates the mind like the prospect of one's own hanging," he stressed how GM's own "near-death experience" in 2009 gave the company new energy and "concentrated our thinking."

Whitacre also emphasized the new leadership that GM has brought into the fold as well as the "expertise" of the leaders it kept onboard. Furthermore, the experience has given some of the GM's younger leaders — such as Mark Reuss, president of GM North America — the chance to show their talent, he highlighted.

"We're unleashing the energy and enthusiasm of our people and it's really great to see their response," he noted. 

And finally, it's the actual product. Whitacre contends the automaker is "making vehicles that people just can't wait to buy."

After all, that's what makes everything else in the process function.

"Everything I've just talked about only works … if the company produces cars and trucks that customers absolutely love. And we're doing that today," he noted.

Whitacre also voice praise for former GM leaders who helped to bring many of the automaker's current vehicles to fruition.

"Of course, as I've come to learn, it takes years to bring a new vehicle to market. So we owe a debt of gratitude to the people who had the foresight to develop these awesome cars and trucks — people like Rick Wagoner, Fritz Henderson, Bob Lutz and others," he stated. "And I'm happy to report that the products we have in the pipeline are just as exciting as the ones we're selling now." 

Where to Go from Here

Moving on, Whitacre looked at what he called "three of my personal favorites" when it comes to further making an impact and increasing growth.

The first example he gave dealt with how much room the industry has to grow, particularly in developing markets. In Brazil, Russia, India and China, for instance, their combined growth in vehicle sales by 2015 is likely to total roughly 13 million units.

To its own credit, GM is rolling out 10 new or revamped vehicles in China in 2010. One reason for doing so is that the automaker's year-to-date sales through June in that market have climbed close to 50 percent.

"For those who are ready, the opportunities to grow the business both here and abroad are tremendous," he shared. "And I believe no one is better positioned for global success than GM."

Whitacre added: "Meanwhile, North America remains critically important, and it's very gratifying to see the beginning of a return to normal here."

Continuing on, he also shared how technology presents an opportunity. Expressing the urgency of developing new fuel sources and maximizing the current resources, Whitacre stressed that the internal combustion engine must become more efficient.

He said this gives GM reason to be amped up about its Chevrolet Cruze Eco, which officials say will have a highway fuel economy of 40 miles per gallon.

If the dependency on petroleum is to be cut, hybrids have to play a bigger role, he stressed, as well as vehicles capable of running on E85 ethanol, bio-diesel, liquefied petroleum gas and compressed natural gas.

"Maybe most important, it involves the virtual reinvention of the automobile … through the development of electric vehicles, fuel cells and so on," Whitacre highlighted.

"At GM, we're doing all these things and more. We have aggressive plans to expand the number of hybrids and plug-in vehicles in our portfolio … and I know many of you are working on the same challenges at your companies," he further noted. "The opportunities are huge … and we're just beginning to see the possibilities."

Next, he touched on the need to adapt the way in which vehicles are marketed.

The Internet, of course, has been a major game-changer as far as how consumers shop for vehicles, but GM believes there is to be more "shopping revolutions." 

For instance, Chevrolet rolled out a pilot iPhone and iPad app program that gives salespeople greater flexibility and convenience as they attempt to woo potential customers.

"Now, I don't want to tip my hand about all of the things we're doing, but I can tell you this — whatever we do in this space will be done with the support of our great GM dealers," Whitacre noted. "We certainly had our issues over the last year … and putting those issues behind us is critical to GM's future." 

New Dealer Network

That led into Whitacre's comments regarding GM's recently completed dealer arbitrating process. As revealed last week, GM's dealer network as of Nov. 1 will consist of roughly 4,500 dealerships throughout the country.

"The GM dealer network will be the right size … and have the right dealers … to make our customers happy and keep them coming back. Our network will be about 25 percent smaller than it was, but it will still be the nation's largest," he shared.

"In the meantime, we've embarked on what we believe is the largest facility makeover the industry has ever seen," Whitacre continued.

GM has enhanced more than 300 dealership facilities and plans to have more than 1,000 revamped before 2011 begins. 

Continuing the Fight

In his concluding remarks, Whitacre again reflected on the progress GM has made, as well as the overall auto industry.

He tipped his hat to Chrysler and Ford, applauding them on their respective improvements, and also gave kudos to the suppliers, "who toughed it out with all of us."

"At GM, we were pretty much flat on our backs a year ago. Now, we're on our feet again … getting into fighting shape … and taking the fight back to the marketplace," Whitacre commented.

"It's a fight we are going to win. And it's going to be a lot of fun in the process," he concluded.