GM's Continued Infatuation With the Top Line

By Kevin Meyer

30 months ago... yes 30, we told you about GM's love of the top line - sales - as opposed to what truly matters.  Don't underestimate the impact of such a focus as it has lead to such inane distortions as booking a sale when a car is shipped to a dealer, as opposed to when a customer actually buys it.

GM continues to be insanely focused on "being number one"... number one in sales that is.  We've written before about how this is a meaningless metric, and finally the business press is starting to see it the same way.

Those of us that have started small companies soon realize a very important fact: you can sell yourself right out of business.  And sales mean squat if they have negative margin. Perhaps GM needs to look in the classifieds in the back pages of Entrepreneur magazine to find an executive staff with some fundamental business sense.


Well, 30 months of decreasing market share, increasing losses, a government bailout resulting in a complete shuffling of management and board members, and even an Evolving Excellence post pointing the way hasn't changed that flawed mentality.

The new chairman of General Motors Co. said the car maker must not lose the No. 1 spot in U.S. sales and has charged his management team with regaining market share after years of decline. Edward E. Whitacre Jr., in an interview Tuesday after the company's first board meeting since emerging from bankruptcy in July, said GM's business plan needs to be "tweaked."


"Tweaked?"  Are you serious?  Completely demolished and rebuilt from scratch should be more like it.  How about completely forgetting about the top line and creating the tiniest of focus on the bottom line?  Then perhaps figuring out that more goes into improving the bottom line than bashing the crap out of already teetering suppliers, laying off thousands of brains under the mistaken assumption they are just a pair of hands, and... well, you get the picture.

GM has a lot of work to do.  Far more than a "tweak."  Once again I'm very concerned about my unwanted investment in GM.