GM president speaks on campus

What is the secret to success? For Jack Smith, president and chief executive officer of General Motors, it's ice cream. Smith, currently the head of the world's largest industrial corporation with revenues of more than $138 billion, began his career in an ice cream business in Worcester, Mass. And yesterday, more than 300 people gathered in Dunlop Auditorium to hear him speak on the company's plans for restructuring its current operations. The lecture, which drew a crowd of mostly graduate Wharton students, was hosted by the Zweig Executive Dinner Series. "In 1992, [Smith] was named CEO," said Mona Patel, a fourth year Wharton graduate student and member of the selection committee for the Zweig Executive Series. "[That] was also the year that GM posted its worst losses in history, so he had a lot of work ahead of him." But Smith's introduction into the leadership of General Motors signaled a trend toward increased efficiency and productivity, Patel added. "The problems have really just built up for decades," Smith said. "[Now,] we're trying to position General Motors for the long-term general gain." The company's work has included "closing the quality gap," placing extra emphasis on the retail market and looking at increasing worldwide purchasing. "We're now 50 to 60 percent along in our recovery process," Smith said. "We've made a lot of progress, but we have a lot more to do here." Changes in operations, namely an increase in the consolidation of production, has resulted in a dramatic increase in sales and revenue for GM, according to Smith. "We're bringing new knowledge from every car we bring out into every new car we bring out," Smith said. "And we're learning to pay more attention to our customers." The formation of the North American Automotive Operations has allowed the company to begin expanding its resources and consolidating its formerly immense bureaucracy, Smith said. But there are significant continuing challenges for General Motors as it tries to remain competitive in the global market, he added. "So what are we doing about all of this?" Smith asked. "Well, we're working like the devil."