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Hogan leads GM's Net effort
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August 10, 1999: 3:32 p.m. ET
'Yellowstone' proponent to create global e-business enterprise for No. 1 automaker
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NEW YORK (CNNfn) - General Motors Corp. appointed controversial executive Mark Hogan Tuesday to transform the company's automotive operations into a global e-business enterprise.
Hogan, previously the general manager of GM's small car program, will oversee the automaker's attempt to place a wider array of company products and services at the consumer's fingertips.
That includes consolidating current efforts that allow GM customers to purchase their car or truck online from dealers, with future projects like accessing the Internet or e-mail from GM automobiles under one electronic mall.
Other GM innovations -- such as Onstar, the company's advanced communication -- and current online supplier programs also will be featured as part of the strategy, Hogan said.
However, the company doesn't plan to circumvent its dealers and sell cars directly to customers as part of this strategy, at least not yet, a company spokesman said.
"Our intent is basically to be able to service the customer when he or she wants," Hogan told CNNfn.
"The goal is just to run the gamut," said Mike Meyerand, a GM spokesman. "We see the future as a place where the Internet kids will want to do everything online."
Company officials said the world's No. 1 automaker's extensive dealer network won't be harmed by the new approach. Instead, GM hopes to integrate individual dealer e-commerce initiatives with its own efforts.
GM already runs more than 100 consumer Web sites around the globe that recorded 3.8 million unique visits in June alone. In addition, more than 650,000 customers visited GM BuyPower, the company's U.S.-based car and truck shopping service.
Hogan sparked a outcry of criticism from United Auto Workers officials last year when he publicly supported Project Yellowstone, a new manufacturing proposal that would replace aging GM factories with newer plants using modular assembly techniques and a fraction of the current workers.
The Yellowstone proposal would allow independent suppliers to construct and provide large sections of each vehicle. Hogan was quoted as saying the new process would save the company roughly $2,000 per vehicle in the United States.
General Motors later scrapped plans for the project and steered funds toward its booming truck line instead. Company officials said Hogan's appointment was based on his position as one of the younger GM executives with international experience.
"Mark has a history of innovation and a proven, results-oriented track record," said Ronald L. Zarrella, president of GM North America. "With his extensive global experience, he understands the practical requirements necessary to drive change throughout the enterprise."
General Motors (GM) stock was down 1-5/16 at 60-11/16 Tuesday afternoon. 
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General Motors
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