Less than a week after reporting a sharp drop in September sales, GM said its U.S. sales chief is leaving as the automaker struggles to prop up its falling share of the market.
General Motors Co. CEO Fritz Henderson announced the departure of Mark LaNeve on Wednesday during a conference call with media and investors. LaNeve, 50, is taking a job at a firm outside the auto industry effective Oct. 15, GM spokesman John McDonald said.
Although LaNeve’s replacement has yet to be determined, his exit gives the company an opportunity to bring in fresh talent and a different view on sales, Henderson said.
GM’s September U.S. sales plunged 45%, crashing after the government’s Cash for Clunkers program wrapped up at the end of August. So far this year, its sales are down 36%.
GM’s global market share stood at 11.9% in the third quarter, down from 12.4% in 2008, largely because of falling sales in the U.S. and Canada, Henderson said.
In the U.S., GM’s control of the market fell to 19.5% in the third quarter from 22.1% in 2008. Other regions are performing better than expected.
LaNeve has told dealers that his departure was not a reflection of the company’s product or marketing plans, McDonald said. He added that the consolidation and closing of dealerships had taken a toll on him. GM had 6,375 U.S. dealers at the end of 2008 and expects to have 5,600 by the end of this year.
LaNeve had been in charge of sales and marketing until July 10, the day GM emerged from bankruptcy protection, when Henderson took marketing away and put it in the hands of veteran executive Bob Lutz.
Lutz, who had served as head of product development and dropped plans to retire, had expressed disdain for GM’s previous marketing efforts. Almost immediately, he ordered changes to ads to make them focus on vehicles and brands, comparing them with competitors in an effort to get customers to consider GM.
After Lutz was given the marketing job, he and LaNeve tussled over how to spend GM’s marketing dollars, according to a person with knowledge of the situation. Lutz changed advertising agencies for the new “May the Best Car Win” ad campaign, which began Sept. 20.
