Billy, Alfred, and General Motors: The Story of Two Unique Men, a Legendary Company, and a Remarkable Time in American History

336 Pages·2006·0.91 MB·English

by  William Pelfrey

BILLY, ALFRED, AND GENERAL MOTORS
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BILLY, ALFRED,
A N D
GENERAL MOTORS
THE STORY OF TWO UNIQUE MEN, A LEGENDARY COMPANY,
AND A REMARKABLE TIME IN AMERICAN HISTORY
William Pelfrey
AMERICAN MANAGEMENT ASSOCIATION
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LibraryofCongressCataloging-in-PublicationData
Pelfrey,William.
Billy,Alfred,andGeneralMotors:thestoryoftwouniquemen,a
legendarycompany,andaremarkabletimeinAmericanhistory/
WilliamPelfrey.
p. cm.
Includesbibliographicalreferencesandindex.
ISBN0-8144-0869-9
1. GeneralMotorsCorporation—History. 2. Automobileindustryand
trade—UnitedStates—History. 3. Businesspeople—UnitedStates—
Biography. 4. Durant,WilliamCrapo,1861–1947. 5. Sloan,AlfredP.
(AlfredPritchard),1875–1966. I. Title.
HD9710.U54G47544 2006
338.7(cid:2)6292(cid:2)—dc22 2005024657
(cid:2)2006WilliamPelfrey.
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ForLilia,myBeliever
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C O N T E N T S
Acknowledgments xi
ANoteonSourcesandPermissions xiii
Introduction:WhatTheyWrought xv
1 1920:TheFatefulYear 1
AmericaandtheGeneralonaRoll ■ LosingaManNamedChrysler ■ The
EveofShowdown
2 APrecociousDropoutForgesHisFirstEmpire 17
AHands-OnEducation ■ SinsoftheFathers ■ JustaShortRideAcross
Town ■ SellingBillyDurant,ThenSellingtheProduct ■ ABitterLessonin
ProductionControl ■ FromStart-UptoIndustryLeader
3 AQuietStudentBecomesaFirst-ClassSupplier 37
StayingonMessage ■ AMostSeriousYoungMan ■ EarlyRiskand
Turnaround ■ SeeingaNewMarket
4 ANewMachineCreatesaNewOrder 51
AnAncientIdeaSlowlyTakesHold ■ EnterRansomOlds ■ Leland,Master
ofPrecision ■ HenryFordandHisDemons ■ LelandIsin,CadillacIs
Born ■ AlfredMeetsHenry...andHenryRisesAgain
5 RestlessinFlint,AntsyinNewYork 77
TheGoodLifeinFlint ■ SparedtheStrife...fortheTimeBeing ■ A
DifferentRoutineforBilly’sExecutiveTeam ■ AHardyManTakesthe
PlungeWithoutBilly ■ BillyTakesaSabbatical ■ DavidBuickTakesHis
Shot ■ EntertheBriscoeBoysandWhitingofFlint
6 TheDropout’sNextBigThing 93
MakingItaGo ■ AnotherIndustryPrecedent,andanEarlyJabfrom
Alfred ■ BillyFindsaNewFlame ■ BuickTriumphant ■ NoLegacyfor
David ■ AShakeoutontheHorizon
7 BirthofaGeneral 109
AHyattCustomerPreparestoShiftintoHighGear ■ HenryFord’sDifferent
ProductStrategy ■ BillyTakesAnotherCall ■ BillyBringstheBigFour
vii
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viii Contents
Together... ■ HenryFordKillsMorgan’sBigDeal ■ BillyCutsHisOwn
Deal ■ NoHeadlinesforBilly’sNewborn
8 ShootingfortheStars 129
PuttingtheHouseofOldsinOrderbyCuttingtheBabyinQuarters ■
CadillacMakesItselftheWorldStandard...DespiteSlumpingSales ■
WooingtheLelands ■ OneMoreRunatHenryFord ■ TheGreatRace...
andMoreGreatOpportunities ■ AWhirlingDervishUnconstrained
9 DownbutHardlyOut 147
BillySaysGoodbye...forNow ■ ACaseofConspiracyorPrudence? ■
HenryPullsAway...andBringsAmericawithHim ■ HeadybutPrecarious
DaysforSloantheSupplier ■ TheBankersTurntoJamesStorrow,
Brahmin ■ BillyChampionsaFormerProte´ge´ ■ EveryExecutive
Recruiter’sDreamCandidate:WalterChrysler ■ TheBankers’Bottom
Line ■ EnterKetteringwithHisSelf-Starter ■ TheBankers’Philosophyvs.
HenryFord’s
10 BeatingtheOddswithChevrolet 169
TakingontheModelT...Slowly ■ ADifferentWaytoBuildBrand
AwarenessandCommunityRelations ■ Finally,theLong-AwaitedHit ■
HenryAgainChangestheGame ■ TheGuardianfromDelawareandHis
RightHand
11 ABoardroomCoupLikeNoneBeforeorSince 187
TheMotherofAllProxyBattles ■ AnotherClashofPhilosophies:Pierrevs.
BillyonCorporateGovernance ■ CementingtheBase:StepOne,Locking
inChrysler ■ StepTwo,LuringAlfredintotheFold ■ AlfredMovesUpwith
Billy
12 TheFounder’sGripSlipsAgain 205
HenryFord’sPlungeintoPacifism,Politics,andPrejudice ■ BillyDurantvs.
theLelands ■ GoodTimesontheNewJerseyShore,butNotonWall
Street ■ TheWizardGamblesAgain...andDilutesHisPower
13 ALastGood-ByetotheBaby 221
PreludetotheCrisis ■ GeneralMotors’Responsevs.FordMotor’s ■ The
FounderHasHisOwnDoubtsasHisLeadershipTeamRemainsMute ■
DoneinbytheStreet...Again ■ BillyDoesRightbyHisBaby ■ TheEnd
ofanEra
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Contents ix
14 AlfredPullstheRanksTogether 237
PierreComesOutfromBehindtheCurtain ■ Kettering’sCopper-Cooled
Engine ■ FromStandofftoNearMeltdown ■ DefyingtheConsultantsto
SaveChevrolet ■ DecentralizedOperationswithCoordinatedControl ■
HenryFordMissesaSeaChangeintheMarket ■ ACarforEveryPurse
andPurpose
15 FromTransformationtoDomination 253
ANewParadigmforProductDesign ■ TheAnnualModelChange ■
BeyondtheUnitedStates ■ NonautomotiveForaysandLegacies ■
Financial(andOther)Controls ■ Attracting,Developing,andHoldingthe
BestTalentatAllLevels ■ UnrestintheRanks ■ PoliticiansandExecutives
Don’tMix ■ TheFinestHour:GeneralMotorsGoestoWarforAmerica ■
TheSloanPhilosophyandLegacyofWinning
Epilogue:What’sGoodforGeneralMotors... 273
ChronologyofKeyEvents 281
Notes 285
SelectedBibliography 297
Index 303
AbouttheAuthor 315
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