Tuesday, December 23, 2008

Now or Never…

For last couple of months I was closely following the bailout news for the Big 3 in USA. GM and other two of the Big3 group was desperate for this support…I know they were anxious far more than me but like many other employee of GM, I was curious too. It was a must needed fuel for the cash starving US Auto Industry.
After the initial jolt from the Senate this loan of $17.4 billion came as a relief, at least for now. Out of this $9.4 billion will be provided to GM instantly and remaining amount on later stage. Chrysler too will get $4 billion right now. As a GM employee I welcome this step of the President Mr. Bush. But considering the way the big boys of these companies have performed in recent years, its totally unforgiving. Even as per the statement from White House, filling for bankruptcy would be the most eligible option for these automakers but considering already crumbling economy, loosing another sector entirely would be a knock out blow for the country.


Currently around 2,39,000 employees are working for the biggest manufacturer of Automobile. Combining all the suppliers, vendors, dealers and other related industries almost 2.5 million workforce is related directly or indirectly to GM. Considering the overall strength of the total workforce in automotive industry which is close to 3.5 million, this is a major portion. White House major concern was loosing these millions of job resulting from the collapse of Big3. How can you take this job loss of millions of people in the case of this economy slowdown? Even after paying billions of dollars of these guys to other financial companies in bailout and in a result you are laying off these poor taxpayers.

Its not a story of single night. For last several years all these American companies are loosing their money and market share quarter by quarter. How can these guys be so immature not to take a notice of this? Out of three Chrysler is the worst performer by loosing market share by 28%. GM and Ford are not far behind either.


Lets talk a bit about GM...
Since 2004, GM has lost more than $75 billion. Is it ringing some bell?
Still sounds not very appealing data, lets talk about another one… In a year company has lost more than 90% of the company share value. For decades, GM has provided several examples of their products, methods, and management processes, reviewed as case study in Ivy League colleges, which has kept this company at no.1 position for most of the part of the century. Now here goes another example from GM to be reviewed as a case study… how they lost their market share and everything so rapidly?
...Interesting?
You bet.


On September 30 GM had the reserve of $16 billion, not enough to continue operation past December. With this government loan, now GM can at least think to continue its operations for next few coming months. But at the same time again this loan is not assured one on which GM can blindly rely. If by March 31st GM doesn’t come up with a viable plan for restructuring the company, this loan will be called back and this will guarantee the bankruptcy of the organization. Pretty surprising, till this date GM and other companies could not come up with a plan which could satisfy White House. Just hope they have any such viable plan.


Talking about another one, Ford is currently in a better shape. Irrespective of their other bailout mate, Ford may need the cash after couple of quarter. Thanks to Mr. Mullaly who showed at least some vision and started restructuring his organization from 2006 itself. Selling out its loss making units, optimizing the production lines and reducing their workforces have put Ford today in a far better health than GM and Chrysler. They acted and acted aggressively. Other two should have at least taken some lessons from this company.
But at the same time Ford is not immune of the market and if GM and Chrysler collapse, it will shake the foundation of Ford too.

Next in the row is Chrysler, worst performer among three. Now seems even Cerberus is not willing to feed this elephant. According to their board of directors, Cerberus has already put more than allowed cash in this cash starving company. Looks like now they are just looking for a buyer who can buy this company. While buying Chrysler they looked very happy as thought they got a very cheap deal and after some time they will either sell this company for higher margin or they can turn around this company in a profitable one. Now it’s a well known fact that Cerberus has burnt their hands in this deal.

Cerberus is no longer in a mood to retain Chrysler and currently GM is not in a good health, so that it can go with this merger deal. It may be critical decision for both of them. It may not be good for Chrysler employee, as it will result in heavy lay off in that organization. Also, GM will have to invest billions in this cash strapped situation. If GM could not get it right, it will sink the ships of both the company together. But GM can get enough liquidity from Chrysler with this deal. Also, they can work together on the overlapping technology between two companies as well as they can have common dealers. Looks like this deal would be lucrative for GM, but again to go for it, GM should look for all the aspect as this could be their last mistakes…in case.

GMAC is among another loosing sector of the organization, which was once a major source of GM marketing and selling of its cars. But currently its share in the GM sell has reduced drastically. Currently GM has 49% stake in GMAC and Cerberus owns 51%. One deal GM can check to exchange the GMAC stake to Cerberus for the stake of Chrysler.

GM current situation is the reward of the inefficient management of the inefficient management for a long time. Even GM is making big promises and swearing for a revival, how much these top guys can be trusted, is a concern.
Gone are the time when you had the luxury of sitting and thinking. Its time to act, react and perform. Much needed restructuring of the organization is the most vital decision right now, which management has to do it with priority.
The most ambitious plan of GM is getting delayed. Looks like they were waiting for the bailout. Its beyond understanding why the most hyped and ambitious project is taking the back sit.

What should be the decision on Hummer? It’s an ancient question in GM. Surprisingly, in this critical situation, such critical questions are not getting answered for more than a year. How can a company be so lethargic in such adverse scenario?
Its not about what you lost, but its about what you could save from the house in fire. While in storm, to make your ship light you have to through the heavy stuffs out of the ship, no matter how much dear they are. Hummer is currently one of the heaviest loads on the company, which is supposed to be removed in spite it is the image of GM in off road vehicle segment.

Even after getting loans and big promises by Big three to make their company more competitive, leaner and efficient, questions remain unanswered. Considering their lethargic approach in reacting to this tragedy of lifetime, they are not looking very aggressive. If not now…when? Didn’t they have enough lessons from their past?
Its never too late…is this statement holds true for these companies right now? Do they still have chance of revival? Even their own country and President has lost their faith in these companies. While giving loan Mr. President has told, to go bankrupt would be the best option for these companies but considering already collapsed market, this is not a good option to loose another millions of job, considering this month only more than half a million got laid off. It clearly shows getting loan was not the very choice of White House. They got loan considering the adverse effect that it may cause with collapse. But clearly those guys were not pretty happy with the management and the way they are working.

This is another, may be the last opportunity provided to these companies. Its their last chance to prove. Its nothing less than do or die situation.
Also, to counter Japanese all three have to act together and with force. Together they may consider a joint venture to share technology and facility at least for coming few years. It may reduce the unwanted models from the market and will be beneficial for all 3 at the same time. It may cause initial job loss, but it will help to regain the reputation of US in the automotive industry. It will be a win-win situation for all 3 and also for employees eventually.

Sunday, November 30, 2008

Renaissance Center: Waiting for Renaissance

Once upon a time there was a company called GM…and story goes on.

Above line may seems like a line from a Science Fiction book where a character is chatting with another about the automotive industries of past. The question is… how far is that future?

Not surprisingly GM has created the most reputed name in the Automotive world ever which belongs to several brands and their world class models. Ruled the planet for more than three quarter of the century, it is the Blue Whale of Automotive Ocean. And if someone is saying less than a couple of year before that GM is going to die in a year…everyone who has having even the slightest idea of this industry on wheels would have think that person is the most crazy and foolish person in this world. But observing the current situation of the market, if someone is saying GM will survive beyond six months (here I am becoming optimistic) without government support, again he/she must be considered now in the same category as above.

After loosing its share value more than 95% in almost a year, once one of the biggest company in the world is on its knees in front of the government asking for a bailout. After the report of third quarter loss of $2.5 billion company market value dropped to a record low of $2.67 billion (per share value $3.36, Nov11, 2008). Cash reserve of the company came to an alarming value of $16.6 billion after the end of third quarter. As per company it needs between $11 to $14 billion to remain operative. Seeing this data and looking at the current market trend end of GM seems inevitable. Even after the assurance by President elect Obama, survival of GM is not guaranteed. As per Deutsche bank analyst, GM has not enough cash to continue operation beyond December and without government assistance collapse of GM is certain. Every other day GM share is touching new low which is not only giving blow to already injured company but also shaking the trust of people in the company’s future.

Such bad shape of the company didn’t happen in a single day, month or quarter. But GM along with Ford and Chrysler were loosing money for several past years. Even after seeing the down trend, these companies were too stubborn to acknowledge the loss and its future impact. Result, in 1960’s when GM has half the market share came to the first decade of 21st century when it has merely around 20% of market share. They are loosing on their home ground by the outsider. Seems outsider has a better idea of their home customers. Fall of GM will not only risk the millions of job losses but it will be the epicenter for the radical crises which will include tier1-tier2 suppliers, dealers, financial market. Even US government understands that GM is too big to loose but at the same time GM is so huge that it may not be easy to protect it as a whole. Initially request was of $25billion for bailout for the Big three was modified to $50billion in just a month. But even the medicine of this much amount doesn’t guarantee the cure of this illness.

If management truly wants to come out of this trauma they need to reform the whole organization and redefine the way it operates. Rules set in the last century may need not be correct in the current scenario. If you are loosing at your home pitch where you have ruled for a century then certainly it’s a high time to recall your basics. Not just rely on the help which may or may not come in the way but act accordingly with all your guts.

When whole world is moving towards fuel efficiency, is it smart to bank on your previous successful fuel thirsty models. Change with the time and adapt fast with the new technology. The technology which has been developed by GM is being used by other company to capture its home market. This is surly the lack of vision. Otherwise, electric vehicle which was the concept of GM motors would not come from other company’s stable. Also, GM is a cluster of several brands like Cadillac, Chevrolet, Pontiac, GMC, Saab, Saturn, Buick, Hummer which acts like hindrance in many cases for upcoming brilliant design. To reform the company whole company need to be restructured. Even USA government is not going to provide a big blank check unless GM assures that it is going to restructure the company for the future.

GM is not just a company which will end if it fall, but it will be the end of the dreams, efforts and believes of millions of people who had and who are working together to help the civilization to move fast for more than a century. Even in this crisis of the lifetime GM is keeping its head up for the future. Brilliant designs and breakthrough futuristic cars are in the pipeline which are committed to change the way we used to travel. Volt, Eflex are just few names who are going to redefine the future of automotive industry but their own existence is dependent on the future of the company. To redesign the future it is needed to redesign the whole structure of the whole organization. Its good to have big ambition and dream of bright future but don’t forget the shaking present which is the foundation for the coming next 100 years of GM and Automotives. Lets hope the story of GM doesn’t shape as the story of dinosaurs but it turned to be the story of the evolution. We may not have the leadership of legendry Lee Iaccoca this time but we do have the learning of the episode of Chrysler revival. Seriously in this high time we are missing his kind of leadership.

Nevertheless its not time for expecting a hero to come and save but to execute as a team. Lets hope and work together for a bigger, brighter and stronger future and bring a brand new Renaissance at Renaissance Center.

Saturday, November 8, 2008

Sankalp says...

Here is a guy with whom you can Discuss... but whatever is present below is not a discussion.



Sankalp... I wont/cant describe him. He is he.
Just like always you may draw his picture as per your perceptions and imaginations.



I may not have the complete idea of what made him and I to write these mails but this is the way many times we talk.



Seems we live or dream in an Imaginative Idea world...but this is the way we think and believe we will get it.



Mails are in original form. Original mail from Sankalp followed with my reply of this follows Sankalp re reply.







Date: 4th Oct 2008



You know I don't resist,.. I don't like resisting... it kills you, your natural self... thats why writing again...




Hesitation is not me... I never wanted it to be... but for a long time.. it remained a part of me.. killing me softly... not knowing it was its own skin which it was shredding to pieces... Now sometimes... the feeling is ... No... I can't describe...itIts not the feeling of working in the world's biggest media agency or for that matter world's biggest automobile company...doing what you wanted to do or something like that... the feeling is important when you can still feel something burning in your belly..bcoz the moment there is no fire... all one ll be left with ..will be ash...


have lost money in markets a year ago... kept loosing for almost one and a half year... yes,.. was in pain... but efforts... that feel to learn, unlearn... n learn again... its like those adventorus rides we have taken to versoli, alibagh n other different places...


remember that bike ride...objective was not reachin there... objective was enjoying the journey... or maybe that became the objective... or we realised thats what shud have been the objective... once you n nits met wit an accident...I can still see clearly Nits' smile n that freaking out/yelling n shouting like looking directly in life's face... bcoz journey is what decides the goal...journey is what makes this life worth living..all i cud feel was life that moment bhai... fear... I dnt knw what it meant... or whether it existed.. Its like the moment we start living n u cud feel the FORCE with you...


Lot of people have started laughing at me... yes again...:)


saying why don't u concentrate in media... why stock markets now...


I have a question to myself why not now....we write rules... we create blocks in our mind.. we create the world as we want it... its like either inhale or exhale... don't do both...why... bcoz u might lose focus...


Every passion ...has a different space in your life..and that space deserves that passion..


2 years now into Media n enjoying it... my soul still has blisters of the fire within... in fact the blisters have doubled.. one more passion has joined the fray...


2 yrs into market... lot of burning hands... but enjoyed every moment of that burning sensation... infact loved it...


haaan sapna hai... kuch apna kaam karna hai... kab tak .. nahi pata..


jyada nahi pakaunga....


Sankalp




-- Dreams are not those which you see when you sleep, But those which don't let you sleep till they are achieved.











Date: 9th Oct 2008



Mostly you reply to an argument or an answer. Whatever you have statedand tried to put it is neither of these. Its an statement. and you know I dont have any different stand from yours. Infact no one has.


We all studied in the same kind of school, where they taught us thesame apart from the text....think big, dream big. be good, be brave.no fear, dont scare....etc.same to all isnt. that is our foundation.that is what we have made up of, designed for. we keep growing. like many chapters, subjects and books we keep forgetting our basics toouless we keep revising them, utilising them. you know what is meant by revising here. keep dreaming...keep thinking....BIG. be good, be brave. the moment you have stopped the revision, you will find lots of companion but believe me that will be the moment when you will be more uncomfortable and restless...cause you are away from your root, you have left your base. the more you are doing the revision the more comfortable you will become for the test.


dont compare but look around. how many do you find, who are achieversas per your definition...ability vs achievement. i bet you will not besurprised. you know the reason as well, person at the position of his choice has is not a hard worker essentially but he is a hard believer...in his capabilities, his dreams, his choices and every thing that is related to him only.


we kept growing...suddenly we have been started to taught that we need to compromise. we need not to dream. be realistic. but what isreal....now we are confused. our base is shaken. same person when weare kid is stating something which is not same. where to go. Choice.keep dreaming or welcome the so called real world full of choiceless lives.
not very strange, any species doesnt welcome outcast unless they find he is superior or beneficial. do you think either of these two is something you admire. No. because this is again not from choice. first one generates from fear and second from selfishness. now you become inert. inert for those choiceless surroundings. you look for the ones who still have spirit alive within. you have respect, love and sense of brotherhood with them. you create a world with them. that is the world of your choice. your place of satisfaction and happiness. how many years will it take to build it. dont know, dont care. but that is worth keep waiting and keep trying. because just to say a single sentence at the end of the day "...and this part of my life is calledHappiness" takes a lifetime, a lifetime full of choice, believe and....Dream.


I dont prefer writing all these...cause for the person i write knows the better meaning and live these words every moment. for me its in theory for you in your bloodline. but as you asked me to....this isfor you. Wish your every step bring you closure to your dream and in this journey you will find many Real FRIENDS around you. Cause you will get satisfaction when you will reach the destination but its Friends who makes the journey interesting and worth remembering.

Wish you a Successful Interesting Journey.

...Maddy


--Best Wishes,


Madhukar



"when you want something, all the universe conspires in helping you toachieve it."











Date: 17th Oct 2008



Almost all the time... you undermine yourself,your efforts.. don't know why... I am the one who is inspired by your efforts... that resilience... that tenacity.. You shouldn't forget them ever..You won't be able to... ever.. Useless advising..


No way and no where have you been moving away from what you have written before.. Phase of desperation or frustration doesn't decides life.. Its a decision during that phase which does...


Sometimes I wonder, its gud that we have signals.. where the two most important lights are RED and YELLOW.. if you look back in retrospect these two are the ones who give us a breather in life... time to reflect contemplate...what fun would life if there would be no RED and YELLOW light in life...racing faster and faster ... but where... these 2 lights tell us, provoke us to think and answer the question... "where"


so any phase which brings restlessness is infact peaceful... its the phase which is not making us restless should disturb us...


some stories never end... jus to make interesting, they always keep having new chapters...


Wat more do we want !!


rgrds

Sankalp

..........................................................................................................................................................................

I may post some of his mails in my next blogs.

Ani talk

I got this mail... when I first came to USA...(Other side of globe). I was alone, bore, desperate to go back.
This was general mail started with simple conversation... goes beyond.

Its about Ani (http://iamag33k.blogspot.com/)...(selflabled G33k... I use other word)
Well... He is the Gold Medalist of his batch, fan of Avril, addicted of Coffee, Passionate for coding, follower of Linux... Started with Wipro... helped Lehman Brothers in bancrupsy later :) and currently with Nomura(Company who bought LB India Operation)




This mail is in original format... (I just deleted one name)




Date: 8/27/06

Hey,


I guess you can pass this mail to all ur friends. Kinda plain simple General Mail written while sipping coffee (So u know I am not drunk!).





First few days in USA, everything seems nice. It may seem nice to ur eyes but not to ur heart, coz heart always confuses everybody. It's a hidden thought that you never want to deal with and try to smile away everything that comes your way. The cool, calm atmosphere of ignorant people where nobody cares may seem nice to you. It's like you love the independent thing thrust on you for the first few days or the first few hours. Time keeps changing and clock keeps tickin and you find yourself nobody talkative enough just to listen to you. For an extrovert person like you it may never be the case.


Remember career is the foremost thing that matters.....things in the heart keep changing and sometimes they may be right also....but ur mind is never wrong...however evil it may become. U know why coz it always thinks about you. Heart may prompt you to think about others but have you ever felt ur brain prompting you to think about others. I know it's selfish for me to write this stuff, but belive me truth is always bitter as you might have known. It's a hard to accept but general truth that "One you loves may never love you back...and one u do not love wil always love u back" ....It's kinda Murphy's law.........So what do u do...try to love the ones who u don't love...hoping that ones who do not love....will rethink. No I know this is not ur attitude. U r tooo engrossed in your life that you hardly think about those people. And we never should but sometimes there are times when u r prompted to rethink about the simplest of things.....(Hey I am not talkin about ****....it's about someone in general....u will find out soon). Trying to absorb urself in work and never thinkin about it may seem the best solution but it's an ever lasting one. Know why coz even GEETA says....tat "Always work...without expectin result". It may or may not come and sometimes it never does in short duration. Sometimes u keep thinkin about something and try to change urself just to show him / her tat u can change. But change is the only thing that shows ur weakness. U remember u had told me once...."I wish u never change"...I also wished the same for myself. It's like te best thing to do is always be in love with urself..........People will come by and go...but ur own self will never leave you. It's like defining urself....ur strengths and ur weaknesses to urself and u can't cheat bcoz u r the one lookin after it. Have u ever tried defining urself? I see so many good qualities in so many people that i just wanna copy them but u know somethings can't be copied they can just be admired. (My Punch line I know!).

Here are my examples...


Nitya........Most caring person....but never shows it....tries to joke away everything..and u never know what he is thinkin. It's like u can hate him and love him at the same time.

Sunil......Fun lovin person.....with amazing sense of humour......

Sankalp.......Perfect philospher............with an answer to every question.....Will never tell anything about himself...and try to find more and more about u...andwill always respect ur opinion......


Shikha.....Childish behavior which hides a mature person

Kushboo..... Mature and caring..........likes to be a leader..... (truly will become a gr8 manager)

Pooja.....u never know whats in her heart...she will never show even her anger...she will wait till it subsides...and will resume laughing at everything. Mostsenstive emotional person u will ever come across.


But it's like I miss somethings so much that i just wanna be someone else. Maybe these feelings come to u also...or maybe they will come in loneliness coz it's the only thing that makes u rethink about complete nonsense. But still I hope u always concentrate on ur career....I know u ignore my comments about ur studyuing skills.

But I know when u put ur mind to something...even god can't stop u from doing that. It's like u have a knack for problem solving but u never acknowldge that or u r too modest to do that. It's one of the best qualities I like about u...coz I try to brag about my knowledge thats why people know it. But u have so many things to share that I know u can never be alone anywhere.....in USA or anywhere in world. Coz people like to interact with people who have something to give...not something to take away. It's kinda selfishness in a general way. Everybody accepts that, even while making friends u choose on the basis of something. Maybe u never do it but ur subconcious mind does.......i know u will never accept that...coz selfishness is never ur trait but just wanted to put it into words.



Well waitin for ur contact number...so I can shell out some money from ISD Phones here in office.....!

Till then

Bye

TC

Enjoy

Ani



Regards,

Animesh Saxena

Objective...

There is always an objective to create something... knowingly or unkowingly.

I dont know what made me to create this blog, but I guess I am inspired, motivated or more preciecly trying to copy the act of other guys creating blogs... (so many movie stars included as well).

Oh... Objective...?

Well, let it be...its fun any way.

Sounds weird? No way. Its the most obvious objective. Just spending time to make sense of something you are doing... or just doing what your sense says. Time saved...isn't.

One can do a task in n numbers of ways. Well... in my case n equals zerO in most of the cases and in remaining cases it is equal to 1. Looks like I am having much limited capabilities.... I am feeling blessed. I dont like dilemma.

I have grown (from the time I have started this blog and will keep on... I cant stop it, its beyond my or anyone capacity). I have experience (again its the inevitable result of the previous one).
These experiences are strange things... unbiased supporter, friend, teacher..savior. It can be anywhere anytime...omnipresent.

(Buntu has justed started talking to me on gtalk... let me end this blog here...next thoughts next time...)

This is a place where I will (try to) put my experiences... well it may be in different forms... mails, snaps, conversations, thoughts....


If you are reading this... come on, how can I be so dumb (ofcourse you are reading)... I welcome any kind of your suggestions or comments or thoughts or anything...

Wish you well...

Maddy
(The Piscean)


P.S. Posts may not be in chronological...but hopefully logical. Also, regarding the name of this blog (Finding Questions...) I wanted to explain, but I guess you know or will know eventually.