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Wall Street Journal Original article ›
LyrArc Article Gist
GM sales rose 4.7% and Ford sales rose 3% in October 2009. But Chrysler sales tumbled by 30%. Toyota sales remained flat.

Jeep Readies Global Push

Wall Street Journal Original article ›
LyrArc Article Gist
Chrysler-Fiat's efforts to ramp up Jeep's global sales in 2012-2014. Plans to build 120,000 Jeeps annually in St. Petersburg. Chrysler CEO Marchionne sees Jeep as Chrysler's global brand. The problem with sales in Russian and Chinese markets is price, because of high import duties. In Russia this can add upto $22,000 to price, and in China $37,000. This put Jeep prices in Russia at about $86,000 for a Grand Cherokee, forcing it to compete with luxury SUV's like Land Rover. Production locally in Russia and China should make Jeep prices competitive. For covering the international market Chrysler's plan is to build 6 Jeep models with new designs for a sleeker appearance as a lifestyle vehicle. In the past the Jeep was seen largely as a off-road SUV in emerging markets rather than a lifestyle vehicle.
Wall Street Journal Original article ›
WSJ Original article ›
LyrArc Article Gist
Carlos Tavares runs Stellantis the company that combined the operations of France's Peugeot, Italy's Fiat and America's Chrysler right out of his living room in his Lisbon, Portugal home one week every month. He is a believer in the advantages of hybrid work model and says most of the 75,000 workers at the company can work remotely most of the time.The quality time that is generated in this new work model that allows life balance and getting fresh air walks outside is needed when you consider that auto companies such as his are embracing world of electric cars- Stellantis will have 75 models of electric cars by 2030 In this interview with the WSJ shown here he says the fact that one is giving back high quality time that otherwise goes to commuting means you get more time during the day. Carlos Tavares says remote work is an opportunity to recreate a better life balance. He doesn't see any risk in it at all. He sees how hard people are working, harder than they did before, and says giving back one half hour or two hours of quality time actually helps the process of getting good work. Look he says after a long day of remote work people need that time to go out and have a walk for an hour just to refresh one's mind, because the work was so intense. Tavares asks why shouldn't we trust each other? He believes it is the only way to go. Asked about his own work routine for remote work.He says it is the Portuguese routine of  7 am to 4 pm or 5 pm and then an hour out for a walk. He has a small desk in his living room, and he is sitting there with his iPad, grandkids are going by but nobody sees them. Does he miss the face to face contact? He does says Tavares. He still sees other employees as he does go to the office. What about mentoring for junior  employees? This does not have to be five days a week, you may want coaching one day a week, what you don't want is someone on your back five days a week. For Tavares it is all about the quality of time that is used. On company culture the much abused word Tavares makes some good points. If you say this is the culture and hand it to somebody then how do you get that creative mind to exercize his own judgement, how do you get diversity of thinking. Tavares is forthright and honest here- he says if I give you a culture and put you in that box I will get it wrong, and by killing the valuable diversity of thinking I will make it counterproductive. Actually with French, Italian and American operations under one roof and employees of 170 nationalities there is a value in appreciating the value each employee can bring. Practices at Stellantis- Tavares says if you want your people to be in game shape or in great shape mentally don't call them or email them on weekends, so that they can use the weekend to recharge themselves. He even apologizes for calling on a weekend. Or if you email your people tell them to not respond till Monday. ...
New York Times Original article ›
New York Times Original article ›
LyrArc Article Gist
A look at the automobile market in the U.S. in October 2014 shows a large increase in SUV sales. Sales of the Jeep brand increased by over 50%, and Dodge Ram by 33% in Oct. 2014, compared to the month in 2013. Sales of the Honda Civic declined by 9%. Chrysler gained market share reaching 13.3%, with sales concentrated on the RAM and Jeep brands. Japanese makers had about 35% of the market, compared to about 46% for American brands Ford, GM and Chrysler. GM had 17.7% share in the U.S. market, Ford 14.7%, Toyota 14.1%.
Wall Street Journal Original article ›
LyrArc Article Gist
WSJ says that administration officials are considering aplan whereby on the first day of bankruptcy the government would announce the setting up of a "new GM" with Chevrolet, Cadillac, and good assets as part of it and a separate "old GM" that would hold the bad assets, retiree and health care obligations, Hummer and Saturn. The "good" GM would have responsibility for $20 billion in government loans. THe old GM could stay in bankruptcy for longer till buyers are found for parts of it or as it is wound down, with proceeds from the sales of assets going to creditors claims. WSJ sources familiar with the developments and the administration's views say that the administration prefers this route, and GM will likely will be forced into filing for bankruptcy protection in mid-May. That would be 45 days into the 60 day period President Obama has given GM to come up with a new plan that will work. The submitted plan was rejected by Obama's team on grounds that the assumptions for sales were too optimistic, none of the concessions from bondholders and the UAW that were needed had been made, the Chevy Volt was not going to pe price competitive, and fuel efficient car production was not a critical part of the plan. The government has asked Fiat to scale back its planned ownership of Chrysler to 20%, as part of an agreement for more government loans....
Wall Street Journal Original article ›
LyrArc Article Gist
New models introduced by Chrysler, Ford and GM, and the revitalization of the U.S. auto industry in 2011-2013.
New York Times Original article ›
Wall Street Journal Original article ›
New York Times Original article ›
Wall Street Journal Original article ›
LyrArc Article Gist
Chevrolet and GMC finish in the top 5 in the J.D. Powers Initial Quality Survey for 2013. Owners reported 97 problems per 100 vehicles in the first 90 days of ownership for Chevrolet, and GMC owners reported 90 problems. The survey incudes problems with new technology such as navigation systems. Ford had 131 problems per 100 vehicles largely because of problems owners have with the new touch screen multimedia systems called MyFord Touch. GMC and Chevrolet use butons and knobs for the MyLink entertainment and navigation systems. By not doing extensive redesign GM moved up in the rankings. Because mechanical quality is about even for Toyota, Honda, Nissan, Ford, GM and VW, the rankings now include new tech systems performance for automobile owners.
Wall Street Journal Original article ›
LyrArc Article Gist
Fiat's Marchionne's decision to focus on the Fiat 500 and the Panda city car in the price sensitive European market. Fiat has no success in selling its Bravo larger car. In 2011 sales of the Bravo model were only 32,036 compared to VW Golf model sales of 522,370 in Europe, according to IHS Global Insight. Sales of the Fiat 500 were 119,836 units vs. sales of 83,150 for the BMW Mini in the first half of 2012. Fiat has suffered more than other automakers in the European market with sales decline of 16.7% compared to 7.2% decline for the overall market, for Jan-Sept 2012. Fiat's new plans are for five new Fiat models and three new Fiat light trucks in Europe between 2013-2016. Fiat launched the 500L minivan in Europe in Sept 2012. Fiat's European factories are running at 45% of capacity on average, and the European operations are likely to burn through 700 million euros in 2013, similiar to 2012, unlikely to breakeven before 2015 or 2016. This makes getting the product decisions right critical for Fiat. Fiat's chief in Europe, Gianluca Italia talks of the functional and emotional soul of Fiat cars for Europe in a emphasis on making Fiat's models in the price sensitive segments more distinctive and commanding a premium in the European market. Fiat's 500 has about a 25% premium over a similiar Ford Ka in its segment. The new Fiat 500 models will be exported to Asia and Latin America in an effort to increase capacity utlilization in its Italian factories....

Economist Original article ›
LyrArc Article Gist
How Marchionne made the turnaround at Fiat. It takes a crisis to get something done, but you also need a leader who can make things happen. Marchionne turned out to have a direct approach to Fiat's problems, not shirking away from anything he needed to get done. But how he was able to get workers and the younger managers to team up in a new culture of openness and directness to get things done shows that he brought some rare qualities of leadership and persuasion.
Wall Street Journal Original article ›
BusinessWeek Original article ›
LyrArc Article Gist
Explores the possible consequences of $100 Oil. 1. More difficulties for GM and Ford and Chrysler. 2. Ben Bernanke has a difficult choice, increase interest rates to curb inflation or lower rates to stimulate an economy thats slowing down considerably. 3. Ethanol gets a big boost. 4. Middle East funded resistance or terrorist groups get a boost fro oil money. 5. Oil at $100 is not enough to cause a resession according to one estimate, Standard and Poor's Chief Economist David Wyss, it could lower growth from 2.5% to 1% in 2007. 6. Hybrids get a boost. Honda does better with the Civic and the new Fit. Toyota's hybrids get a new boost. 7. Oil Company profits go even higher. Does this boost funding for exploration to a higher level than currently remains a question both for national oil companies and private oil companies.
New York Times Original article ›
Wall Street Journal Original article ›
LyrArc Article Gist
Fiat CEO Marchionne's tells Fiat managers to focus on export markets and to look beyond, Italy and the European market. In a presentation to prime minister Mario Monti he emphasizes the capacity utilization at Fiat's Italian plants of 40% in 2012.
WSJ Original article ›
LyrArc Article Gist
Isaacson tells the story of Musk and paying $44 billion for Twitter, how all these birds have to go. Of Musk seeing the words "psychological safety" at Twitter and being take aback. Mental wellbeing, worklife balance were not his thing, says Isaacson. A failed acquisition, conversion and renaming of Paypal, led Musk to Twitter as a way to create a site that does all things including payments and social media. Contrast Musk with Carlos Tavares, CEO of European EV automaker Stellantis who makes worklife balance part of his way of running the company, and one sees a shocking contrast in a war of ideas of what is the most productive and what makes productive employees.

Wall Street Journal Original article ›
Wall Street Journal Original article ›
LyrArc Article Gist
How an outside director is heard at meetings of China Netcom Group (Hong Kong), in this case former Goldman banker Thornton. This is rare in Chinese board meetings. There is a story behind this and Jason Dean tells us what happened to bring Thornton, Roderic Hills a former SEC chairman, McKinsey, Qian, a governance expert at UC Berkeley, Tian, a US trained founder of Netcom, and Mr Zhang together to shape Netcom's corporate governance, as a model for the other state controlled Chinese companies. Especially useful is the insight from Zhang about the role of the Communist party committee in Netcom, of which he is party secretary, and its counterparts which really run state controlled Chinese companies. The communist party committee is responsible for six functions, not spelled out here, but probably refers to the social goals as perceived by the communist party. One of the goals is modernization- bringing Chinese company management to best practice standards in Europe and the US. Netcom's incentive is that it needs to stand out against its better positioned competitors China Telecom and China Mobile, which have a big share of the market. Zhang gives the impression of being a thinking type willing to try out new ideas to help achieve the goal of "catching up" to best practice governance....
Wall Street Journal Original article ›
LyrArc Article Gist
One manager looks at gaining experience overseas as a professional objective, after already having worked in Spain for 3 months, and spent 6 weeks in Germany as part of an MBA program. He is even opting for dual citizenship with Italy and hopes to use his EU passport to get new experiences.
New York Times Original article ›
LyrArc Article Gist
Airbus will be run by Louis Gallois as head of the management team with Thomas Enders reporting to him. Ruediger Grube becomes Chairman of EADS. He will oversee Gallois and Enders and the rest of the Airbus management team. The dual structure was considered inappropriate for a company in a competitive business environment and blamed for many of Airbus's recent problems. It has been taken out with Gallois now in charge of decisions and responsible for the running of the company. This was important to French president Sarkozy and agreement was achieved with Ms. Merkel, his German counterpart.
Wall Street Journal Original article ›
LyrArc Article Gist
How the global supplier system, while it spreads some of the financial risk, also creates a number of problems Boeing has to resolve. The advanced nature of the plane using composite materials instead of aluminium, and many other new aspects, all make it necessary for careful attention to details and coordination of different partners roles. Things like training of workers who do the work at new plants put up by suppliers like Vought Aircraft of Dallas and Alenia Aeronautica of Italy, in this case in Charleston, S.C., were inadequate. This had the effect of compounding problems Boeing already has in shortage of aluminium and titanium fasteners to assemble the different parts. Based on this report the unveiling of the Dreamliner on July 8, before 15,000 invited guests, was probably a bad idea, as much of the plane under the shiny covers was a mess. idea
Wall Street Journal Original article ›
LyrArc Article Gist
How the Brazilian culture of InBev took over Interbrew and absorbed it ,and the future if Anheuser Busch is acquired looks like it would be similiar, as this Brazilian compay has a unique culture all its own.

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