Berman: Kerkorian = Bad!

The Detroit News reports: Laura Berman: Gambler Kerkorian holding GM's fate is creepy thought. Fine, Mr. Kerkorian is a bad dude. He made his money in Vegas (That's bad now? But making money on Wall Street is honest?), couldn't keep a wife (along with most of America), and isn't giving his money away like Mr. Gates (because the ends always justify the means?).

We're not backing Mr. Kerkorian. We're not backing Mr. Wagoner. But we get the impression Ms. Berman has this romantic notion about GM:

So he's [Kerkorian] using his 9.9 percent stake in General Motors Corp. to put fear into a generation of baby boomer managers who are tough enough to get to the top of the world's largest car manufacturer's tortuous corporate ladder but who likely never flew small planes beyond their fuel tank limits.

They're all about teamwork and corporate citizenship and a multitude of group values that are antithetical to Kerkorian's straightforward precepts.

They're all about teamwork and corporate citizenship? What? Group values? Man, we want to work there! In that happy, fantasy land where Jessica Alba runs around in French maid outfits,* it rains M&Ms,** and Alison plays her sweet fiddle.

Maybe Ms. Berman wants Mr. Wagoner to just stay in charge while GM continues to slide into oblivion? While it makes no difference to us (we don't take sides at Cars! Cars! Cars!), it would still be a shame for GM to disappear. On the other hand, there's the chance Mr. Kerkorian is just out to raise the stock price... which is what Wall Street wants. Mmmm, raining M&Ms.

*Suxor
**The chocolate ones, not the peanut ones. When you eat the peanut ones, it's inevitable that something gets caught in your throat and then you start coughing, but since they're M&M, you keep popping the mofos in, and the coughing turns into choking, and you start waving your arms around and praying that girl from accounting doesn't walk over, because your face is all red and spit and snot flying from your head... and where's the dignity in that?

Comments

[Dan]

I was SORELY disappointed that that wasn't a picture of Jessica Alba in a french maid outfit.

[K]

GM is now doing a lot of things right. But they are so big that leaves a lot of things being done wrong.

My guess is that changing management can't save them; there is simply too much baggage from pensions, unions, and poor product choices made for decades.

This is not a big mystery. By 1970 it was apparent that the Japanese were formidable and that Europe and almost everyone else was recovering fast and had new ideas.

Detroit's response? Business as usual.

I could continue this with paragraphs for 'by 1980 it was', 'by 1990 it was',

They are awake now and competitive in some new markets such as China. Probably too late for our domestic industry.