Last week, GM’s new (and third one this year) CEO Ed Whitacre announced major leadership changes, moving swiftly to put a management structure in place that he and the board feel will better position GM for continued growth and profitability.  Gone is the change that Fritz Henderson made, splitting sales from marketing.  Sales and marketing are now recombined under Susan Docherty, newly appointed as VP of Vehicle Sales, Service & Marketing (”VSSM”, which also includes Service Parts and OnStar).

Bob Lutz, who was put in charge of marketing and public relations in the previous shakeup, is going back to the product side, where he will be a special advisor to Chairman and CEO Ed Whitacre on product and design.

So where does this leave Tom Stephens, who assumed the title of vice chairman of global product development when Lutz went to marketing?  Tom must have been thinking that Pete Townshend had taken over GM.  ”Meet the new boss, same as the old boss…”  Whitacre tossed a bone to Stephens by adding purchasing to his responsibilities, but if this newest realignment doesn’t work, Stephens won’t get fooled again.

Perhaps the biggest change of all, though, is the reappearance of a president of North America, a job that went away earlier this year when Troy Clarke “resigned”.  Mark Reuss, who only recently was repatriated to North America as VP of Engineering, is appointed President of North America.

Aside from the obvious issues with leadership churn, I think these changes mostly make sense.  Sales, service and marketing belong together, and it makes sense to have somebody in charge at the North American level.  When the General dismantled North America, it tried to globalize everything, including marketing.  Sales and marketing, by their very nature, are not global.  They are regional or local.

More than anything else, the new “temporary” CEO is promoting people into positions of power that will have loyalty to him, not the previous regimes.  And it sends a signal to the rest of the company that he is serious about accountability in the organization going forward.

That’s what I think - how about you?  Please leave your comments below.

There were other changes as well.  See the full announcement below.

To improve accountability and responsibility for market performance in North America and around the world, several key leadership changes were announced today by GM Chairman and CEO, Ed Whitacre.

“I want to give people more responsibility and authority deeper in the organization and then hold them accountable,” Whitacre said.  “We’ve realigned our leadership duties and responsibilities to help us meet our mission to design, build and sell the world’s best vehicles.”

Mark Reuss is named president of GM North America.  Reuss was briefly vice president of Engineering after leading GM’s Holden operations in Australia in 2008.  Reporting to Reuss will be Susan E. Docherty, who is appointed vice president, Vehicle Sales, Service and Marketing operations.  Also aligned under the new North American group will be Diana D. Tremblay, who is named vice president, Manufacturing and Labor Relations.  Tremblay was most recently vice president of Labor Relations.  Denise C. Johnson is named vice president, Labor Relations.  Johnson was most recently vehicle line director and chief engineer for Global Small Cars.

Nick Reilly is named president, GM Europe.  Reilly has been leading the restructuring efforts in Europe with the Opel/Vauxhall operations and will leave his role leading GM International Operations.

Tim Lee is named president of GM International Operations, overseeing GM’s Asia-Pacific, Latin America, Africa, and Middle East operations.  Lee was most recently group vice president, Manufacturing and Labor Relations.

Bob Lutz remains vice chairman and will act as advisor on design and global product development.

Thomas G. Stephens remains vice chairman of Global Product Operations, and will now take on global purchasing in his organization, which will continue to be lead by Robert E. Socia, vice president, Global Purchasing and Supply Chain.  Karl-Friedrich Stracke is appointed vice president, Engineering, reporting to Stephens.  Stracke was most recently executive director of Engineering.

J. Christopher Preuss, vice president, Communications, will now report to Whitacre; he previously reported to Lutz.

The balance of the direct report staff remains unchanged and includes CFO Ray G. Young;  John F. Smith, vice president Corporate Planning and Alliances;  Terry Kline, vice president IS&S;  Mary T. Barra, vice president Human Resources;  Mike Millikin, vice president of Legal;  and Ken W. Cole, vice president Government Relations and Public Policy.

27 vehicles (19 cars and 8 SUVs) earned the Insurance Institute for Highway Safety’s Top Safety Pick award for 2010, substantially lower than for 2009, the IIHS announced recently.  The main reason for the lower number of recipients is that the IIHS added a requirement that the vehicles must score a “good” in a roof strength test to measure protection in a rollover is required to win. 94 vehicles earned the Top Safety Pick for 2009.

Ford was the big winner for the 2nd year in a row, earning 6 Top Safety Picks, while Volkswagen and Subaru were next with 5 each.  Chrysler earned 4, and IIHS commented specifically on Chrysler’s efforts, saying, “… continuing a recent trend of improving the crashworthiness of its vehicles.”  Notable in their absence from the list are Toyota (which includes 28 Toyota, Lexus and Scion models), and BMW.

3 of the best selling midsize cars notably didn’t make the list. Honda Accord and Ford Fusion just missed scoring a “good” on the roof strength test or they would have earned the Top Safety Pick.  Toyota Camry would have qualified with good ratings, except for its rear crash evaluation.  Camry’s seats and head restraints are rated marginal for protection against whiplash injury.

Keep in mind that all cars and trucks have to pass certain safety standards to be for sale in the US; the IIHS evaluates vehicles to determine which are the safest, according to their own standards.  In some ways, the IIHS is at odds with the federal government, which promotes fuel economy.  In the IIHS press release, they say, “Keep in mind vehicle size and weight, because larger, heavier vehicles generally afford better protection in serious crashes than smaller, lighter ones.  Even with a Top Safety Pick, a small car isn’t as crashworthy as a bigger one.”  All things equal, a “larger, heavier vehicle” will get poorer fuel economy than a “smaller, lighter vehicle.”  The smaller, lighter one will also generally be more maneuverable, thus helping avoid the accident in the first place.  My point is simply to remind you that there is no one way to evaluate a potential vehicle purchase.  Use your common sense (if you have any) to look at how the vehicle scores on many different criteria.

Here is the IIHS’s complete list of Top Safety Picks for 2010:

Large cars
Buick LaCrosse
Ford Taurus
Lincoln MKS
Volvo S80

Midsize cars
Audi A3
Chevrolet Malibu
Chrysler Sebring 4-door with optional electronic stability control
Dodge Avenger with optional electronic stability control
Mercedes C class
Subaru Legacy
Subaru Outback
Volkswagen Jetta sedan
Volkswagen Passat sedan
Volvo C30

Small cars
Honda Civic 4-door models (except Si) with optional electronic stability control
Kia Soul
Nissan Cube
Subaru Impreza except WRX
Volkswagen Golf 4-door

Midsize SUVs
Dodge Journey
Subaru Tribeca
Volvo XC60
Volvo XC90

Small SUVs
Honda Element
Jeep Patriot with optional side torso airbags
Subaru Forester
Volkswagen Tiguan

That’s what I think - how about you?  Please leave your comments below.

Fritz Henderson, who took over as GM’s CEO when Rick Wagoner was relieved of his position in March, resigned effective today, following the monthly board of directors meeting.  GM Chairman Ed Whitacre will assume the title of CEO while GM conducts an international search for a permanent replacement.

Henderson, 51, was a GM lifer, who had been with GM for 25 years, and has been hurt by that image. The press and government have portrayed him as a competent manager and finance executive, but one who would not provide the kind of outside influence that GM needs. GM spokesman Chris Preuss denied any government involvement in the decision, calling it a “board decision.”

GM issued the following statement:

At its monthly meeting in Detroit today, the General Motors Board of Directors accepted the resignation of Fritz Henderson as Director, President and CEO of the company.

Fritz has done a remarkable job in leading the company through an unprecedented period of challenge and change.  While momentum has been building over the past several months, all involved agree that changes needed to be made.  To this end, I have taken over the role of Chairman and CEO while an international search for a new president and CEO begins immediately.  With these new duties, I will begin working in the Renaissance Center headquarters on a daily basis.  The leadership team – many who are with me today – are united and committed to the task at hand.

I want to assure all of our employees, dealers, suppliers, union partners and most of all, our customers, that GM’s daily business operations will continue as normal. I remain more convinced than ever that our company is on the right path and that we will continue to be a leader in offering the worldwide buying public the highest quality, highest value cars and trucks.  We now need to accelerate our progress toward that goal, which will also mean a return to profitability and repaying the American and Canadian tax payers as soon as possible.

In closing, I want to once again thank Fritz Henderson for his years of leadership and service to General Motors; we’re grateful for his many contributions.  I look forward to working with the entire GM team as we now begin the next chapter of this great company.

Henderson’s bio, according to Wikipedia:

Henderson was born in Detroit, Michigan. Henderson is a 1976 graduate of Lake Orion High School in Lake Orion, Michigan. He holds a Master of Business Administration degree from Harvard Business School and a bachelor’s degree in business administration from the University of Michigan’s Ross School of Business. During his time at Michigan, Henderson pitched for the University of Michigan Wolverines baseball team.

Since joining GM in 1984, he held a number of positions with the company until 1992 when he became GMAC group vice president of finance in Detroit.

From 1997 to 2000, Henderson became GM vice president and managing director of GM do Brasil covering GM operations in Brazil, Argentina, Paraguay, and Uruguay. Here he was successful in introducing small, inexpensive cars such as the Celta subcompact and the Meriva microvan, both produced in Brazil.

In June 2000, he was appointed group vice president and president of GM-LAAM (Latin America, Africa and Middle East) and in January 2002, he moved to Singapore as president of GM Asia Pacific where he was successful in expanding operations in Korea and China.

In 2004, Henderson was appointed chairman of GM Europe, based in Zurich, Switzerland, where he undertook substantial restructuring including significant reductions in jobs.

After becoming vice chairman and chief financial officer in January 2006, in March 2009, he became GM president and chief operating officer. At the time, the Financial Times quoted him as saying: “Being part of a turnround at GM when, frankly, many people don’t think it can be done, is exhilarating, if you like challenges. I have never had a dull day in my time at GM.”

When GM exited bankruptcy, Henderson said, “This is an exciting day for General Motors, one that will allow every employee, including me, to get back to the business of designing, building and selling great cars and trucks and serving the needs of our customers. We deeply appreciate the support we’ve received. We’ll work hard to repay the trust, and the money, that so many have invested in GM.”

In August 2009, Henderson refused to move the economically priced, rear wheel drive, Pontiac G8, to another GM marque after slashing the brand.

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