(6 of 10)
Fast Recovery. Only in emergencies does Curtice move in and take over. Soon after he became president, he stepped in to straighten out the Allison Division (aircraft engines), which was in trouble because it had been afraid to invest money in research and development unless armed forces orders were assured. By contrast, Competitor Pratt & Whitney had sunk millions in engine development.
In 1953 G.M.'s Engines Vice President Cyrus Osborn told Curtice that there were three alternatives for Allison: 1) continue as is, "which is ridiculous"; 2) get out of the business entirely; or 3) make the moves necessary to ensure leadership. Curtice said that he would "only be satisfied with leadership." Together Curtice and Osborn spent three months visiting military and airframe people, then laid out a $74 million investment to produce "a whole new family of aircraft engines."
Last week Curtice and Eastern Air Lines Chairman Eddie Rickenbacker jointly announced that Eastern's 40 new Lockheed Electra airliners, scheduled for service in 1958, will be powered by $26 million worth of Allison turboprop engines.
Since Curtice's drive for leadership is as relentless as a turnbuckle, his success has naturally brought some new strains for G.M. In the furiously competitive race for auto sales, relations are more tense between G.M. and its major competitor, Ford, than ever before. Ford executives, who used to meet G.M. friends for a Sunday round of golf, now only nod perfunctorily when they bump into the G.M. crowd at the Bloomfield Hills Country Club. G.M. blames Ford for giving in last summer to the United Automobile Workers' Walter Reuther on the guaranteed annual wage. Fordmen blame G.M. for keeping silent while Reuther turned on Ford first.
Stop Sign. Curtice's problems in Washington are tougher to deal with. With annual sales ($13 billion) almost twice as large as those of the second-largest corporation (Standard Oil Co. of N.J.), G.M. is an ever-tempting political target. Moreover, some of Eisenhower's economic advisers are complaining about the rapid increase in consumer credit (up $4 billion in the first nine months of 1955, to $34.3 billion), and at the automobile industry's $14 billion share of it (although repayments are remarkably regular and repossessions low). Because Defense Secretary Wilson is an ex-G.M. man, G.O.P. politicians have tactfully suggested that he taper off on G.M.'s defense contracts. They are now down from 19% of G.M.'s business in 1953 to less than 10% in 1955, although Pentagon purchasing agents give G.M. topmost marks for quick decisions and on-schedule delivery.
Over in the Justice Department's Antitrust Division, the trustbusters keep a close watch on Curtice. The Administration tactfully told him to settle for no more than 50% of the auto market and keep out of trouble.