« What I Meant To Say Was… | Main | Podcast Reveals Solstice Details »

Issues Management
By Bob Lutz
GM Vice Chairman

Cobalt SS
I thought The Wall Street Journal might feel a little bit left out after I singled out The New York Times in recent posts. So just to show that I’m an equal opportunity enjoyer of all the major dailies, let’s have a look at the WSJ review of the Chevy Cobalt from Friday, March 11.
(Here’s the link for registered users.)
The article starts off, “How hard could it be to replace the Chevrolet Cavalier… for Chevrolet, the answer seems to be ‘pretty hard’…” and from there it gets even better!
Now, I am not one to quarrel with any writer’s subjective interpretations or opinions. On the other hand, we can’t always sit idly by and let the press say things like, “There are places where Chevy took obvious shortcuts, like with its rear drum brakes. Are we technology snobs for believing, more than 40 years after four-wheel disc brakes first appeared on passenger cars, that every car should have more-efficient discs on all four wheels?”
Here’s a partial list of cars in the segment (and others) that also have rear drum brakes: Toyota Corolla CE, S, and LE; Toyota Camry; Honda Civic DX, VP, HX, LX, EX and Hybrid; Honda Accord; Ford Focus S, SE, and SES; and the Chrysler PT Cruiser.
Somebody with the time and the stacks of old Wall Street Journals should really take a look, but I would bet their reviews of most of these other vehicles don’t complain much about rear drums.
The WSJ adds, “The Cobalt's 2.2-liter, four-cylinder engine puts out 145 horsepower -- more than the Civic and Corolla, but those lighter cars manage to come across as more peppy … The Cobalt was brisk enough for merging with highway traffic, but the overall feeling from the engine is one of laziness.”
Strangely enough, the April Car and Driver includes a review of an almost identical test car. They call it “Plainly Good,” a reference to Cobalt’s exterior styling. The C&D article begins thusly, “Those who pray to a higher power for the revival of General Motors should note that in many religions the savior prefers to arrive in plain dress.”
What’s very interesting is that, as I waded through Car and Driver’s subjective praise, I discovered that their performance numbers put the Cobalt’s braking at the head of its class. Imagine! Drum brakes and all! Also, their clocked zero-to-60 time was 8.4 seconds with that “lazy” 145-hp, 2.2-liter four, which placed it second (to the Neon) out of a group of 10 segment vehicles tested.

Cobalt SS
Furthermore, C&D separately clocks the Cobalt SS Supercharged model at a 0-60 time of 6.1 seconds. The SS model will have a gorgeous leather interior; unique fascias, rocker panels and spoiler; sport-tuned suspension; a 205-hp supercharged engine mated to a five-speed manual; 18-inch wheels and performance tires, starting at just over $21,000. Plus, an optional performance package offers Recaro performance front seats and a Quaife limited-slip differential.
I’m sure the SS will be more to the WSJ’s liking — but we’d like to know what the rest of you think about it ...
P.S. Edmunds Inside Line also reviewed the Cobalt SS this week.
Posted by Lutz on March 15, 2005 7:06 PM
Trackback Pings
TrackBack URL for this entry:
http://fastlane.gmblogs.com/cgi-bin/mt-tb.cgi/27
Listed below are links to weblogs that reference Issues Management:
» The decline of General Motors? from Mervz | GM Autoblog
I would love to talk to Bob Lutzbut would he even sit down with me?
The last week has proved very problematic for GM.
The bad news started when GM announced they were canceling their whole line of RWD cars for 2008. I could hear a collective GASP... [Read More]
Tracked on March 21, 2005 9:18 AM
» Pixels by the barrel from Blogworks
General Motors’ FastLane blog leads a weekend AP story about corporate blogs:
When General Motors Corp. wanted to stop spec...[Read More]
Tracked on June 7, 2005 1:59 PM
Comments
Bob,
Keep up the good work at GM and on this wonderful Blog. I believe the new Cobalt is going to change people's perceptions about what GM can do when it's committed to doing something right.
Question: Can we get the Recaro seat option in more of our cars? GM has a bad, bad habit of putting cheap uncomfortable seats in the cars. This habit must be broken with your good guidance. Please make sure the seats are comfortable. Nothing turns off a consumer quicker than an uncomfortable seat!!
On another point, the new HHR interior looks fantastic (in pictures). If this is a glimpse of things to come, GM should begin to turn the market share slide around soon.
Posted by: Craig W on March 15, 2005 7:39 PM
I'll have to admit that at this point I don't see why every car doesn't have discs at all 4 corners. The rational side of me knows that the rear wheels don't add a lot to the braking equation but it seems like the only reason drum brakes still exist is to make disc brakes more "elite" (for lack of a better term).
Admittedly, I'm not in the auto industry but from a laymans point of view I don't see how it could cost that much less to build a set of drum brakes compared to discs, especially when you factor in the cost of designing, testing, tooling & whatever is required to even put drum brakes on a car.
Since in almost all cases, you end up supporting rear discs for the "sporty" version of a given model why not just skip the drums altogether and put those discs on all the cars. Of course then the "sporty" version has one less cool sounding marketing point to justify its claims of sportiness.
Posted by: Robert Aitchison on March 15, 2005 7:40 PM
Mr. Lutz,
As I have not yet taken the Cobalt for a test drive, I can't attest to the actual assertions of the WSJ, but the common theme is the same - an absolute unwillingness for some people to acknowledge the fact that GM is NOT synonymous with "junk."
I completely agree with you regarding the subjective comments placed into a car review that can affect the opinions of one reading it. If the Cobalt isn't as "peppy," then on what basis would the reviewer like to base acceleration? The numbers are irrefutable facts, yet interjecting the subjective comment that the car "feels" slow is ridiculous.
Not only does the media relentlessly purport that foreign makers are infallible, but, based on some stories, I'm half expecting for Toyota to introduce cars that are powered on cold fusion that simultaneously stop world hunger!
Posted by: mike on March 15, 2005 8:00 PM
Indeed it is true that the WSJ writer singled out the 'pretty hard' replacement with his or her drum brake comment. If the writer really had a problem with drum brakes, he or she should have either written an article just about drum brake usage in new cars today or taken the industry to task for their continued usage.
Like yourself, the fact that many car manufacturers still utilize them today to save money hasn't missed my eyes (add Ford Five Hundred to your list). There is no doubt that this writer should have checked out the competition before taking this opportunity to drum the Cobalt.
For a sport compact like the Cobalt, only time will tell if it can revive GM's reputation in this market segment. There are hundreds of thousands of mid-'80s to late '90s Cavaliers/Sunbird/Sunfire/J2000/Cimarron/Skyhawk/Firenza that have reliability and paint problems. When my brother-in-law heard us talking about the Cobalt SS at the car show and we mentioned it replaced the Cavalier, he responded "You don't want that, the Cavalier was a piece of junk." He had driven a '95 Cavalier for years and he didn't like his experience so much it tainted his perception of the new car without having seen it, let alone driven it. This will be your toughest battle. The last version of the Cavalier and Sunfire appear to have improved both of these issues and only the rear view mirror can tell us if the Cobalt has improved as well.
The name change should help, and, it certainly has improved looks, and the 2.0L DOHC Supercharged Ecotec is an obvious improvement in power over any powertrain you have ever had in this segment. The fact that GM is willing to race the Cobalt with this engine also bodes well for its long term reliability vs. the past, since racing would immediately highlight any mid-90s weakness that this more modern powerplant might still possess.
GM certainly needs a more potent player in this segment than their past offerings. Especially if you hope to compete for future Lexus/Acura/BMW owners that are currently out there looking at the Corolla SE-R, EVO, Neon SRT-4, WRX, Eclipse, Civic SI, Focus, and Scion tC.
This is certainly GMs best attempt at an answer in this segment and has the potential to be a hit if it can break out of the perceptual mold that its predecessors cast for it in the hearts and minds of reviewers (i.e. WSJ) and consumers (i.e. my brother-in-law) alike. Good luck.
Current 05 GTO owner and future Zeta platform GTO owner,
Dion
Posted by: Dion Longworth on March 15, 2005 8:55 PM
Hey Bob,
Love the blog. As someone who predominantly prefers foreign cars, I think the new Cobalt is a great little car. It's much better than the horrible Cavalier it replaced. I particular like the styling and introduction of a performance version. If this car was sold under any of the foreign badges, people would be all over it singing praise.
Posted by: Shaun on March 15, 2005 9:06 PM
I have to agree with Mr. Aitchison above that there really isn't any good reason NOT to put disc brakes on a modern automobile, especially if the engineering resources are already being used to put them on high-end models. Having drum brakes comes across as being cheap. Most of the vehicles that have disc brakes also have anti-lock which has saved me from an accident more than once.
As far as the subjectivity of the WSJ article, I have mixed feelings. I've test driven many cars and while I usually look at the numbers, the "seat-of-the-pants" feel while driving is what really sets one car apart from another. And I've recommended cars to friends on my experiences and they usually agree. So while subjectivity is a personal thing, it usually has at least some margin of merit.
For instance, my Mazda Protege5 goes 0-60 in 8.4 seconds which isn't very fast. But what's important is that it FEELS fast. It also corners extremely well. Car and Driver concurred on both those points.
When I was looking to buy a car a few years ago, I test drove a lot of cars and GM had nothing that could compete in my opinion. If I were looking again now, I'd probably look at the Cobalt. But I'd be comparing it to the Mazda3 which is the current benchmark of the class IMHO. Not Civic, Corolla, or Focus.
Posted by: Don K on March 15, 2005 9:46 PM
Every one of the cars mentioned outperforms almost 90% of cars from 40 years ago. And does it at a relative improved price point. I remember a time when about 10% of cars had a/c and now only about 10% don't have it standard. Keep the performance coming, but Bob, please, how about a Pontiac version of the Cobalt (I know there is one in Canada)? And the Cobalt SS engine, is that something that will translate over to the Solstice/Sky?
Posted by: John on March 15, 2005 10:15 PM
Right on Mike! You nailed it on the head. Once true Americans stop supporting the "infallible" notion of foreign cars, reviewers will get the hint or be out of a job.
Posted by: James Kortes on March 15, 2005 10:34 PM
Bob,
First off I would like to say that to have an chance to talk to you in this way is very cool...Back to the issue. Last weekend I went to the yearly autoshow, and was blown away by the Cobalt and how much better in styling and interior design are leaps and bounds over the Cavalier. I have had many arguments with people who think the Cobalt is just a re-skinned Cavalier. The fit and finish of the Cobalt was excellent. Interior pieces looked really good. Keep up the good work...one more thing...Bring back the ZR-2 for the Colorado instead of the lame Z71.
Posted by: Tom on March 15, 2005 10:41 PM
I have not seen the SS yet.
The couple details I found lacking in the ION RL was the calipers don't have anything cool looking on them and they are just hanging out there - they need something. And it needs a dead pedal.
Some of us just can't rationalize or acquire $30K cars. This IS my Corvette, hopefully the little SS gets some trick cues.
I see no problem with drums on grocery getters. I don't think a lot of people sitting in front of their G5 sipping lattes really see what these poor things endure.
Trust me, you want some rudimentary stopping device on these vehicles as they get older. Somebody is going to forget to put pads on it for about 80K miles.
Now, how much for that limited slip upgrade? Thanks for the forum.
Posted by: Russ on March 15, 2005 11:24 PM
I guess if you're Asian or European your poop doesn't stink but if you're GM or Ford you could save a bus load of nuns from a terrorist and still be pond scum. This obvious bias with the media journalists in particular is bewildering, tacky and unprofessional.
Just like the liberals in hollywood who blame Republicans for their own cesspool creations, these tactics are old, stale, unwelcome and unpatriotic. It is time for journalists in the automotive community, such as Mark Phelan, to start giving American manufacturers a fair shake and stop turning a blind eye to the "in-vogue" foreigners. GM and Ford's quality has steadily marched upwards the past four years but you wouldn't know it from these publications. Honda had more recalls last year per car sold than any manufacturer but you wouldn't know it from reading the auto journalists. Since its rebuild in 2002, the Camry has been the boringest, blandest mid-size on the market with the cheesiest interior in its class but nobody ever talks about that.
This double standard needs to end, if you are a subscriber to the WSJ or any other publication with obvious bias such as consumer reports, boycott them, they are cancerous disinformation and nothing more.
Posted by: Timothy Gardner, Colorado Springs, CO on March 16, 2005 12:22 AM
I commented earlier in the interiors thread of this blog. I must reiterate that GM must exceed expectations if it expects to regain its reputation. I must commend you guys on the wonderful job you guys did on the interior. Major kudos for the radio design. My pals do have a problem with the fact that GM cars are coming with some of the essential car functions bundled into the radio head unit, making upgrading impossible. Will this be something to expect in the future? Just be aware that for some young buyers that would be a deal killer. I'm still praying someone is listening...
Dan
Posted by: Dan on March 16, 2005 1:08 AM
I should probably state that this is a car I am actually considering for purchase.
The limited slip differential should be available without the Recaros. They might provide good support but are sure ugly. I get the sense that many enthusiasts want the colored inserts or regular black leather seats as well as the LSD.
Where are all the wheel options that we keep hearing about? I wish GM would stop showing that picture you put up that shows wheels which are not actually available.
I sat in the car at the Detroit auto show and thought it was pretty nice overall. Again, the gray cloth on the Recaros is hideous.
Posted by: Julio Rodriguez
on March 16, 2005 1:43 AM
I haven't driven a Cobalt so I cannot say how well it drives but I did take a good look at one and it seems quite impressive except for one thing.
On the outside, this car is bigger than all of its competition. Why then does it have one of the smallest interiors in its class? Both total interior volume and rear seat legroom are smaller than the Honda Civic, Toyota Corolla, Ford Focus - even the Cavalier it is replacing!!
I currently own a Cavalier and if I were replacing it with a similar car, it would not be a Cobalt - solely because of its lack of interior space. It does not look as if anyone at GM sat in the back seat of this car with the front seats pushed all the way back and realized how much better the competition was in this respect.
- HCE
Posted by: HC_Earwicker on March 16, 2005 1:45 AM
Bob,
I know the Cobalt SS is aimed at a certain segment...but I think it would be great if you could get a rear spoiler delete option.
BTW, anything going on with the Torana?
-Charlie
Posted by: Charles Philippou,O.D. on March 16, 2005 2:00 AM
The Cobalt is a solid car with few vices. I've tested it twice and both times I've been impressed with its lack of any real glaring flaws.
The journalists are indeed on a witch hunt here.
HOWEVER...I think it would be nice to have the 4-wheel discs as an option.
Having driven the Ion redline and knowing its got the same powertrain mostly, I can say its a HOOT. Wonderful powertrain. Bravo, GM.
Mr. Lutz...why can't I buy a FOUR DOOR COBALT SS? Complete with the Recaros!!!!! I need to be able to put my kid in the back so she can have some fun, too. Jettas have four doors, you know.
Posted by: regf on March 16, 2005 2:22 AM
Mr. Lutz,
First of all, praise to you for your inspired leadership of GM and this innovative website. I have followed your posts on this blog and agree with most of your opinions.
That being said, I have different thoughts on this particular topic.
As you rightly pointed out, most of the cars in this segment (and some others) are also equipped with rear drum brakes. So why not do them one better? Keeping in mind that the new GM no longer wishes only to be averagely competitive, but to be the best in every segment, surely it follows that merely fitting rear drum brakes as per competitors is not enough?
Furthermore, as far as I can tell from your quotes, the WSJ does not seem to claim that the Cobalt is actually slower, but that it merely "felt" lazy.
Sure, the feeling of peppiness of engines has to do with power output and acceleration times, but it also has a lot to do with slack in the drivetrain, the way the car transmits the power to the road, the engine personality as characterised by power and torque curves, and yes, the weight of the car.
Even though the Cobalt has quick(er) acceleration times and good power output, could any of the above issues be a factor in the lazy feeling?
Finally, as good as the Cobalt seems, personally I really would rather GM break the recent trend amongst US manufactuers of building "after-market, boy racer," tacky looking cars, and build more properly designed performance cars as demonstrated by recent Pontiac and Cadillac offerings.
Thank you once again for taking the time to communicate with us enthusiasts and consumers.
Posted by: Felix Hong on March 16, 2005 3:24 AM
Until it becomes fashionable in the opinion of a bunch of pipe smokers…to buy American again... don’t expect the press to do anything but continue to attack and undermine anything American. Isn’t it sad!!!!
Look at Buick quality...and the new product of all GM...sure there is always something that could be changed for the better...in all brands...including Toyota!!!!
As American workers continue to lose there jobs and the American dream and jobs go away forever, makes you wonder why a few writers tainted responsibility to report the facts and yes there opinions is bias toward “imports.”
I say GOD BLESS AMERICA… and the leadership of our Automobile Industry. We are the industrial power house that started it all. And yes, we do have what it takes to be leaders on a global scale. We are there. And getting better every year and with every model that is introduced!!!!!
It's time for America to support its own and champion the “original” power house back to its place. To love and hold an industry that has more than once save the U.S. economy from stopping overnight. Yes we kept “America rolling”!!!!!
Last thought… When your family and neighbors lose there jobs as many already have from outsourcing and lack of demand due to foreign manufacturers, be sure to look at the car you drive. If it is Toyota or Honda, understand that you’re the problem and it’s your fault!!!!
Posted by: Todd M. Snell on March 16, 2005 4:40 AM
Last I checked, my wife's Accord EX has disc brakes on all four corners. More too the point, the vehicle that you supposedly benchmarked for the Cobalt, (the VW Jetta) offers 4 wheel disc brakes standard on every model.
I agree with the others here. There is no reason for rear drum brakes in this day and age. The cost difference between drums and discs can't be much, and the advantages of disc brakes are clear.
Posted by: Tom on March 16, 2005 7:26 AM
I recently drove a Cobalt sedan and I have to say I was impressed. The car performs well for what it is and as far as the interior is concerned (a big problem with GM cars over the last couple decades or so) it's a HUGE improvement. The engine pulls well (yeah, I looked, that's class-leading torque out of that Ecotec -- something the auto rags have neglected to mention, and only the Mazda3 has more standard horsepower).
The leather seats on the car I drove were kinda hard at first, but after a while they got REALLY comfortable. Best seats out of any small car I've driven. Ever. They're even better than the seats in the last 3-series BMW I drove, dare I say it. If only my current car, an el-cheapo '01 Cavalier coupe, had those seats.
Braking felt good to me, though I didn't try any panic stops. The car felt sure-footed enough to me. I'd have liked to have 4-wheel-discs as an option, but to be honest they didn't feel necessary.
Mind you the car I drove was pretty much loaded to the gills. Pioneer stereo, OnStar, side airbags, the only thing it didn't have was a sunroof. I would honestly not mind paying 20 grand for this car. It's THAT GOOD. (Of course I don't HAVE 20 grand, so it'll have to wait).
The Cobalt is a good, competitive car. I just hope it can hold its own against next year's Civic.
Posted by: Jim R on March 16, 2005 7:48 AM
The drum brake issue does bother me. If all the cars in the class of the Cobalt have drums as well, I'd pick something other than the Cobalt. Why can't we expect better from GM? Why can't the Cobalt be the car others want to be? Trying to be equal to is not the way to go.
Posted by: Rob on March 16, 2005 9:43 AM
If the WSJ was looking for a peppy car why not test the SS model? In the Edmunds review linked above they call the power there "absolutely explosive."
Posted by: Joel on March 16, 2005 10:07 AM
Mike, I am glad to see you challenge the WSJ review. I too have been disappointed by the many slanted GM reviews of date. I am still looking for the interior gaps in my new Malibu that were reviewed to be so wide that you could fall into them. In addition if Honda had tried EPS steering in a new Accord it would have been hailed as a great technological way to save gasoline. I see no other car company receiving such slanted reviews. Why?
Posted by: Steve N on March 16, 2005 10:11 AM
Although rear drum brakes work well and are appropriate for small cars I believe drum brakes signal "CHEAP" in big red letters. I very much enjoy my 2004 Grand Priz with 4-disc brakes which I helped develop when I was an project engineer with Delphi Chassis.
If GM wants to exceed customer expectations four-wheel disc brakes would be a good way to do it.
I am looking forward to the new rear wheel drive Grand Prix. Hopefully with a Gen IV V8!
Posted by: Andrew Zeek on March 16, 2005 10:12 AM
There may be a bias in the automotive press against American-made cars but I don't really believe the majority of Americans buy cars based on reviews.
I bought a Civic last summer after test driving the Focus, Mazda3, Jetta, and Corolla. I would have definitely tried the Cobalt and G6, which I think is a great-looking car, had they been available. Their not being available points to a bigger problem than media bias: overly long product lifecycles. The Cavalier was in dealerships virtually unchanged for 11 years. In that time Honda updated the Civic twice. In every Cobalt review I've read the Cavalier is mentioned disparagingly. If you want the car that replaces the Cobalt to get a better reception, you can't wait 11 years to introduce it.
Posted by: Craig K on March 16, 2005 10:14 AM
Why doesn't the Cobalt have a temperature gauge? It only has an idiot light.
Posted by: Tim on March 16, 2005 10:23 AM
Mr. Lutz, granted the negative tone in the WSJ article, but GM needs to perform at a high level to overcome recent history.
Cobalt is a missed opportunity, better than Cavalier (what isn't?) but it is heavy, not terribly space efficient, blandly styled, and does not drive as well as many competitors, expecially the steering. Even dowdy Corolla steers as well, Focus and Mazda 3 and Civic are far better.
The coupe looks Cavalier-like when a roomy, functional hatchback would have been more progressive and competitive. New to the market, and the coupe looks old, and not very practical. Dare to be more Astra-like, you would be surprised at the market reaction.
SS toys and the complication of the supercharger are irrelevant, most of the market desires a competent, functional and enjoyable car at a reasonable price. Honda, Mazda, Toyota deliver, GM can also but must look forward, not backward.
Posted by: Seppo
on March 16, 2005 10:36 AM
great response Bob!
Not only Toyota or Chrysler use drums. Audi for example uses this kind of breaks in A2 model and nobody here in Europe complains!
P.S. Bring the Cobalt to Europe :)
Posted by: Ralph on March 16, 2005 10:39 AM
Hey Bob,
While we're on the subject of Cobalt, why is it that we're still waiting for the SS in S. Florida? I have seen that dealers in the Midwest already have them which I find really strange. The area I live in has a HUGE sport compact market, and would make a much better plact to get sales rolling than the midwest.
The same thing happened with the '05 GTO. They just started coming in a little while ago, long after other places had theirs. If your going to introduce a rwd sports car in winter, wouldn't you at least want to make sure that you have as many as possible in places where there's no snow? Why does the way in which GM distributes their vehicles make so little business sense?
Posted by: David on March 16, 2005 10:43 AM
Dear Mr. Lutz,
The WSJ, if you'll pardon the slang, has been drinking from the Haterade bottle like much of the mainstream American press. They seem to follow the trend that, if something is built by the Big Three, it must be of lower quality and value than those cars wearing an import badge. WSJ obviously hasn't strayed too far from this thing. However, it seems that the magazines, C/D, MT, et. al, are warming up to the new product GM and the rest of Mowtown are rolling out.
My opinion of the Cobalt is slightly biased, however, I can say truthfully that the Cobalt LS is a great car, and I've had the oppourtunity to sample one. It's composed, peppy, and I like the exterior. (I don't consider it "plain-jane" like most others do.) I really enjoy the simple elegance of this car.
As for the media, I'm sure they'll warm up to the idea of GM-built cars after they start following the Love-Detroit bandwagon that the magazines are pushing.
Posted by: Dref De Moura on March 16, 2005 10:44 AM
So long as we are talking journalism, what's your opion on this Bob?
http://www.forbes.com/columnists/columnists/2005/03/15/cz_jf_0315flint2.html"
Thanks.
Posted by: media on March 16, 2005 10:47 AM
Mr. Lutz,
THANK YOU for going after this biased article. It's great to see GM get out in front and fight back against bias. USA Today had a similarly negative article the same day this one was printed.
May I suggest that you take on Consumer Reports, they have the Cobalt as an average sedan, and their publication is well read. I firmly believe that when it comes to reviews, this organization costs GM more sales than any other. Recently, CR shredded the Equinox and G6 as well. It's time someone stood up to this "non-biased" publication.
Thank you for a great start!
Posted by: Patrick on March 16, 2005 10:49 AM
Right On!
It is time for GM to show confidence in its terrific new products, LIKE THE COBALT!
Auto journalist are perception creators. They clearly need help in changing their minds about GM.
This is a good first step. How about a blog a week pointing out these inaccurate, old school biases, Mr. Lutz?
You have a great product story to tell. No one else offers as many great products as GM.
Now, the journalists need some help in opening their eyes!
The WSJ reporter who did that story was recycling old perceptions about the past. That lazy 'review' could not have been on the same Cobalt I have driven! Maybe they had a Toyota and mistook it for a Cavalier??
Consumers Report is another biased, statistically flawed, recycler of old perceptions. Consumers Union receives only roughly 400,000 surveys each year with no controls for location bias or overrepresented nameplate samples (in relation to number of vehicles sold). How many of their 400k returns are from Toyota owners? Is it 12.2% of the responses which would correlate with Toyota's marketshare? Their skewed and biased results are predictably, they like their Toyotas.
Why then does JD Powers rank GM's car engines better than Toyota's? Why is dealership satisfaction higher at Buick, Saturn, and Cadillac than at Toyota?
Again, I applaud your effort to point out bias. Maybe if you say it often enough some of these perception creators will decide that they want to scoop the story of GM's great new products. Maybe they will change their own perceptions of GM at the same time.
Posted by: 308gt4 on March 16, 2005 11:18 AM
Today we hear of the next step in the destruction of an American institution which has been perpetrated by 40 years of mismanagement. GM management makes another startling announcement that their forecasting is not to be trusted. Just another in a long string of missteps. The market is voting no confidence with the stock price and bond ratings.
Management now states negative cash flow and earnings 25% of what was expected just weeks ago. Debt will probably be downgraded from BBB- to something worse. Pure junk I presume. This means many bond fund managers, who are prohibited from holding junk bonds, will have to sell GM bonds. Today GM is the third largest issuer of corporate bonds in the world. If this comes to pass, this will possibly create a mini crisis in the bond market and a major crisis for GM. Debt servicing costs may become catastrophic and the issuance of new debt will be at such an extreme cost that GM's demise could become a self fulfilling prophecy.
I doubt many people truly understand the gravity of this situation. Wall Street does which is why GM's stock is at ten year lows.
GM will likely go back and ask for relief from rigid union contracts which keep them from hacking even more employees. In addition, retiree health care, which is a legitimate problem, will surely be cited.
The union had about as much to do with GM's problems as orange growers from Florida. Sales aren't moving and margins are being squeezed because GM needs to "give" cars away in the market. Funny thing about the markets. Consumers choose the winners. BMW, Toyota, Lexus, Honda and Nissan brands are eating GM's proverbial lunch because of unattractive, bland vehicles.
I ask again, when will the GM board be accountable? When an American icon is gone?
Posted by: Barry on March 16, 2005 11:19 AM
Bravo Mr. Lutz!!!! These half a**ed reviewers spend 20 minutes in a car, 20 hours coming up with back handed insults, and 20 seconds reviewing their facts!!!! I really wish reviewers would not slather their articles with so much subjectivity, but of course, that is what sells reviews!
Posted by: Jacob Messing on March 16, 2005 11:24 AM
Just make sure there is a "wing delete" option for the Cobalt SS.
Posted by: The Anonymous Poster on March 16, 2005 11:40 AM
Mr. Lutz:
In my mind, the issue is NOT about disc or drum brakes. The issue is: Is the Cobalt best in class?
For the sake of hundreds of thousands of jobs directly and indirectly dependent on sales of new GM vehicles, the Cobalt MUST be best in class!
If it is, then customers, not the press will tell you so with their $$$. If it isn't, then the question is: why can't GM deliver in spite of its vast talent and resource pool?
Posted by: SG on March 16, 2005 11:47 AM
Stop blaming automobile reviewers and start building better cars !
Posted by: Tim on March 16, 2005 12:05 PM
The feeling of peppyness often comes down to weight, handling, and other factors, not just acceleration. I could see how a reasonably fast car could be perceived as non-peppy.
But in any case, I'm going to reserve judgement for this weekend:
For those who don't know about it, GM has a really nice idea: A traveling testdrive show. See if it is coming to your area. (Mr Lutz, is this one of your ideas?)
http://www.autoshowinmotion.com/
I'm a demo-ride junkie (you don't want to KNOW how many motorcycles I've demo-ridden), and I'm glad to see the same thing for cars (I don't like wasting dealer time with test-drives unless I'm serious, but test-drive events are fine).
Me, I want to try the base Cobalt (compare with previous rental Mazda-3 and Corrola), Cobalt SS (compare with previous testdriven RSX-S), and a bunch of others (eg, Caddilac CTS/CTS-V, SRX vs Chevy TrailBlazer, the Saabaru 9-2x, etc).
Posted by: Nicholas Weaver on March 16, 2005 12:12 PM
The Cobalt is definitely a good sign of changes at GM. Although the general styling of the car doesn't shout out, its also competes in a segment where none of its competitors styling shout out either. In fact compared to the Civics, Corollas, and even the Scions of the world I'd say the styling is above average especially on the coupe. Although I do think that wing on the SS is a bit overstated. The interior is getting there and I think it performs admireably. Its definitely a great car compared to its competition and with a tad more refining could be best in class.
GM is on its way. Just got to get more of that across its other brands and cars.
Posted by: Christian Aviles on March 16, 2005 12:40 PM
People buy foreign cars because foreign car manufacturers produce what people want to buy.
AND they run and run and run, without nickel and diming their owners to death.
Posted by: Oceanic56 on March 16, 2005 2:07 PM
After sitting in my parents' new Focus, the comparison with the Chevrolet Cobore is quite illuminating. The Cobore has no sense of spaciousness whereas the Focus has a high seating position that lends to spacious feeling. The Focus wins hands down in the rear seat room since the Cobore has absolutely no legroom whatsoever.
I distinctly recall visiting the Richmond, Virginia car show a few weeks back with my over 6 foot tall brother-in-law. He's somewhere in the 6 foot 2 inch plus range and I had him sit in the front seat and to position it where he was comfortable AFTER I managed to climb into the backseat of the Cobore. Simply put, I was pinned into the back of the front seat with my lower legs being shoved into the seat cushion.
I COULD NOT EXIT THE CAR SINCE I WAS PINNED IN. I am a 5 foot 11 inch, 190 lb male so I'm not a huge guy. Needless to say that I have never had so little room in the backseat of a car since the days of Mustang II's, Pintos, Gremlins, and Vegas.
In order to get out of the Cobore, I had two options:
(1) Call the fire department to have them to cut me out of the car;
(2) To have the front seat moved forward after the driver got out of the car (we chose this option).
Needless to say it is reprehensible for any automaker of a four door car to have such a putrid level of attention to detail. This car should never be purchased and should be boycotted for its embarrassing lack of room. Chevrolet crows about fixing the problems of the Ion when it released the Cobore. Unfortunately the worst problem, lack of interior room that plagued the Ion, remains UNCHANGED in this four wheeled piece of trash.
I don't care what it looks like or what the interior has that the Cavalier didn't. This car is simply unworthy of anyone's hard earned dollar. I short anyone who buys this car is profoundly stupid.
Posted by: laserwizard@juno.com on March 16, 2005 2:43 PM
I've been driving a rental 2004 Neon recently while my own car is being repaired.
The other week, I was in the UK, and rented a 1.4 Fiesta and, subsequently, an Astra 1.6 "Design." Both of these cars, but especially the lighter Fiesta, comprehensively kicked the Neon's butt. They were about as fun to drive on twisty roads as my 3-series due to their (relatively) precise, well-weighted steering and tenacious grip - tiny power outputs notwithstanding.
The Astra, which is, of course, a GM product, lagged behind the Fiesta slightly in the handling department, but was perfectly practical and extremely attractive inside and out. I'd be happy to buy a GM product, if only GM started selling cars like the Astra over here.
Unfortunately, GM sees fit to inflict Neons, Cavaliers, Sunfires and Grand Prix on us, cars that handle like shopping carts, drive like leaky garbage scows, and appear to have been constructed from yogurt pots. I'm not surprised the WSJ was unimpressed by the Cobalt.
Posted by: I. Lindley on March 16, 2005 2:47 PM
Bob, I will agree with you that there are a lot of biased journalists out there. I see not only GM cars, but other domestic cars bashed repeatedly about minor issues for multiple paragraphs, where as the same fault on an import branded vehicle gets a quick sentance or two mentioning it, and then giving it a free pass. I have seen some favorable reviews of GM vehicles recently, and hope that the media continues to give us more unbiased and fair reporting!
As for the Cobalt SS... Overall, I think its great. I had a chance to crawl through one at our local autoshow (Buffalo) a month or so back, and thought the interior looked great both from a design standpoint and a fit and finish standpoint. The boost guage was a nice touch (and something the Ion Redline should get standard). I cannot imagine this car not picking up a bunch of sales.
Speaking of the Ion Redline (and Ions in general), you should make it a high priority to rip out the cyclopse dash in that car and get the Cobalt's dash into it! With the positive press the Saturn Sky is receiving, people will begin to look at Saturn as a viable option again, and it could translate into a few sales if customers don't get scared off right away by the unusual dash layout. I think the Ion Redline is a good looking coupe from the outside, better than the more generic Cobalt. Its rear access doors make it a little more user friendly too, and the plastic body helps keep it parking lot dent free. However, that dash is just too...um...strange!
Getting back to the Cobalt, I have one other question. Why go with those massive 18-inch wheels as standard? People who are looking for budget performance may not want 18-inch steamrollers and their $200 a piece tires! A good set of 17 inchers would have offered plenty of performance tire choices while cutting down replacement costs a little bit, as well as rotational mass and unsprung weight. Let the 18's be an added cost option for the people who really want them, and give the rest of the budget performance buyers something that fits the budget image a little more closely.
Posted by: John P on March 16, 2005 3:01 PM
Bob -
I'm with you on this one. That WSJ article really was shockingly ignorant and biased. GM has made great strides over the past few years - meaning only that it is now truly competitive with several of its newer products. Other products (G6, La Crosse)...ehhhh...not so much.
With the Cobalt, it's clear that the WSJ was speaking from a prejudiced position. The author seems almost totally unaware of what this product segment is about and of the other products in this segment. Now you just need to build a midsize sedan that good.
Posted by: Slippery Pete on March 16, 2005 3:07 PM
GM needs to consolidate into three new divisions: GM Luxury, GM Sport, and GM Value. Corvettes and Aveos should not sit side by side at a dealership. GM Luxury would sell all special purpose luxury models from Buick, Pontiac, Cadillac, etc. When people go car shopping, they don't say, "Well I think I'll go buy a Pontiac," they have an idea of the kind of car they want, and find the model that meets their needs and wants. There are a lot of other things that can be done in the interim: inspiring interiors, MULTI-SPEED transmissions in ALL car ranges, cars that don't roll over when you take a curve, interiors that don't rattle and shake when you go over brick pavement (like my current '03 Cavalier), and engines that like to REV. GM needs vehicles with 7000+ rpm redlines. I wish I could run GM.
Posted by: Reagan Williams on March 16, 2005 3:21 PM
i'd just to put my $.02 in on the subject of drum brakes.
I consider them the analagous to the role of cassette tapes to the auto industry.
The case of cassette tapes begs thought: what is more expensive to produce, a cassette or a CD? A case requires reels, tape, a plastic case, and a finicky magnetic recording process. The production and materials cost is considerably higher per unit than a CD. Go to a Sam Goody, though, and this is not readily apparent - where cassette tapes (if available) are typically half the cost of compact discs.
Same with drum brakes: the amount of moving parts and the assembly and maintenance costs of drums are usually greater. A disc break is considerably simpler in operation and FAR easier to maintain; why then are disc brakes a "premium" option?
Because they perform better, that's why. Tapes are less expensive than CD's because they don't perform nearly as well, and that's the same with drum brakes. They're less linear, more prone to fade and lock-up unde hard braking, and they're a pain to work on and maintain.
I have to admit, I don't see the logic.
Posted by: James on March 16, 2005 3:40 PM
Let's see:
Corrola, Civic = reliable (sorry guys, reliable reputation is earned. Honda + Toyota have EARNED it)
Mazda3, Civic, Scion Tc = Fun to drive
Scion, Mazda3 = Stylish
Hyundai, Kia = Cheap and big warranty
Cobalt = ?????
It needs to stick out in a competetive market segment in order to win.
Stop worrying about the WSJ (Look at the WSJ demographic - they probably aren't going to go out and buy Corrolas either) and build better cars that stick out for one reason - hopefully positive - or another.
Posted by: M3 on March 16, 2005 3:55 PM
You're letting a WSJ car review twist your panties? I understand they're part of the print media, but I can't think anyone seriously considers the view point of the WSJ on a car valid, or even worth stressing over.
You've obviously built a great little car (with horrible rear leg room). The SS model should do well in its market, and hopefully you built something the tuner kids can play with (since that will be THE defining factor of whether the Cobalt takes off).
As far as torque is concerned. I think it's time the Americans (and the Europeans for that matter, actually VW does do this in one commercial) do what AMD did to the MHZ myth to the HP myth. Torque is what most people think HP is, so mount a Torque campaign, let people know that Torque is the figure they should be looking at and not horsepower. The Japs have made Americans think that the higher the peak HP the better the engine, when we all know that is not true. It should also include the fact that low end torque is more important than high end torque. I could care less that my engine revs to 8500 rpm if I have to be above 5000 rpm to get any usable torque. I want gobs of torque at 1500 rpm (for smaller engines) so I can pass and merge with confidence and not have my engine wailing in pain for being near the top of its rpm range.
Bob, it's great that your doing this, but it's also obvious that you're NOT a car guy, and that's fine. But I think you need to pay a lot more attention to your engineers, and the people in your company that love cars, love to drive them and love to design them. I think you'll see yourself designing better, more enjoyable cars to drive.
Posted by: Steve on March 16, 2005 3:56 PM
Although it will NEVER happen, I agree with Reagan's GM setup. It should be divided into luxury, sport, and economy/work.
I feel part of the reason for GM's poor performance in the passenger market is that there are too many brands. Sure one may argue that having multiple brands sell the same car is good for business because it cuts costs. One may also say it doesn't matter which brand they buy because it all goes to the same coffers.
However, I think all these brands ultimately hurt GM because it greats brand dilution. You have all these mid range brands (Buick, Pontiac, etc) that basically have no reason to exist--no BRAND IDENTITY. People don't know WHY they should buy them. Also with so many models, you're stuck developing a variety of mediocre products instead of a few great ones. Now one could pour heaps of money into each brand to try and save it, but that becomes expensive when you have so many brands.
Solution? Cut down the number of brands and models. This will reduce cost in terms of labor and development. By pooling your resources into a few great products, you'll finally be able to offer cars that are head and shoulders best in their class.
But like I said, this will never happen because I know this is an ideal solution for a non-ideal world.
Posted by: Shaun
on March 16, 2005 5:40 PM
The brands GM currently has are really arbitrary and meaningless. Is Saturn the new Pontiac, if so what happens to Pontiac? Is Chevy the value brand, if so why sell the Corvette? Is Buick the Cadillac for really old people? Or should Buick be an in between but SPORTY brand, like Infiniti? There is so much brand confusion at GM it isn't even funny. GM needs to FOCUS, people know that Mazda is Zoom Zoom, and that BMW is luxury performance, but with GM people have no idea.
Get rid of the brand names and move to GM Luxury, GM Sport/Performance, and GM Value, so that people know what they're looking for. You could also have GM Commercial. Why sell identical pickups under 2 different brands like GMC and Chevy? It has the be the worst marketing stratagy I've ever seen. And it's killing GM. The other car companies are focused, while GM is wondering around with blinders on. Get rid of the divisions, Oldsmobile was a start...or at least focus them and get rid of duplication.
Also, the Malibu is ugly and has really ugly seat fabric, the G6 is great, but get rid of the 4 speed automatic. If the G6 had and 6-speed auto and the 3.9L or the dohc 3.6L standard it would outsell everything.
The pickups need more torqe and 6 speed automatics, as do all other GM SUVs. The Trailblazer has a uninspired interior, old 4 speed auto, and horrible handling. The Corvette interior is ugly, and needs a 6 speed tiptronic with gearing like the Porsche 911. The Buick CSX is nice, but needs a 6 speed auto and better interior. The Rondezvous is hideous. The Torrent needs the new 3.9L. I mean these things are so obvious one has to wonder if GM is purposly trying to commit automotive suicide or is really just incompetant.
Posted by: Reagan Williams on March 16, 2005 5:45 PM
It is about time someone take on the biased nature of the auto press. Cobalt can stand toe to toe with anything from anybody in the price range. Ecotec is a great engine, and the Cobalt drives well. Thanks for putting some perspective on this issue.
Posted by: MarkSS on March 16, 2005 6:06 PM
Chevy changed the name of the Cavalier to the Cobalt, but what they don't realize is the there is the same amount if not more bad name asociation with Chevy is there was with Cavalier. GM waited too long. It may not be possible to rebuild the reputations of the brands themselves. It didn't have to happen, but the threshold may have already been reached. When I think of Buick, I think of cars I don't ever get behind at stop lights...because it's always the case that some old person is driving going to take their sweet time when the light turns green. This is what the decision matrix for GM should look like.
1. Should we move to a structure beyond current "branding" to differentiate our prouduts?
1. a. If yes, then what should that new branding stucture look like? ie... GM Lux, sport, value, commercial.
1.b. If no, then how are we going to focus our current brands to end customer confusion and inspire people?
Any time a vehicle is built, Lutz should go sit in it and in the current market leader and not let the GM vehicle out of the door untill it meets or beats the competition. Compare the Lexus ES330 to the Buick CSX for example. There is a big difference in the interior. Also, compare the Accord interior to the Malibu. Compare Cobalt to RSX. Compare silverado to Titan/F-150. Also, let's get rid of the FWD, nobody likes it. At least offer RWD like the Ford 500.
Posted by: Reagan on March 16, 2005 6:09 PM
The Cobalt commercials are horrible. A bunch of cars playing ball? Are you serious? Thats the best thing you could come up with?
First of all there should be an SS specific commercial, with the Cobalt out accelerating an RSX-S or something. Or show it on a race track, and let the audience hear the roar of the supercharged engine.
Posted by: Reagan on March 16, 2005 6:21 PM
The media revolves around whatever is cool, and lately, the trend has been to adore domestic muscle and other "patriotic" gas-guzzlers. Just look at the cover of any enthusiast magazine, and you'll trip over bolded, size-72 "1000 HP MANIA!" headlines, publicizing the latest and greatest of Corvettes, 300Cs, Escalades, and other vulgar, powercrazed engines-on-wheels. Most of the media is now rooting for Detroit.
Re: the Cobalt, I'm seriously disappointed by it. After reading Car and Driver's "first look" preview, I was expecting a Jetta for the price of, well, a Cavalier. Benchmarking something 6 years old would be fine if it's just as good for less, but the Cobalt fails to do so. It lacks character and style, and everything about it is too average for a 2005 release. The steering lacks precision, the fuel economy isn't that great, and the interior styling and quality is horrible. What's with the twist-beam rear axle? To add to the insult, the Cobalt isn't cheap, either. A mid-level LS model with side airbags is $17K.
GM needs a car that embarasses the competition. "Catching up" or being "plainly good" isn't good enough without an incentive.
Posted by: Michael S on March 16, 2005 6:37 PM
Bob,
In many ways you may be preaching to the choir... but there is a public perception fighting against you.
I think it's pretty clear that the Cobalt was getting hit pretty hard by WSJ for things that would be overlooked on other cars. That is an unfortunate reflection of what the general public probably thinks. Those of us paying attention to GM's transformation are more likely to be reading reviews in Car and Driver, which gave the Cobalt a pretty darn good review.
MSM not geared towards automotive junkies will reflect the opinion of folks who are not automotive junkies and still perceive cars like the Cobalt as rehashes of cars like the Cavalier. Changing the mind of mere mortals will not be a matter of just building a good car. You gotta build insanely great cars (to borrow Jobs' catch-phrase). You gotta get them in there and excited...give people a reason to WANT to see a car. People didn't line up to buy a Chrysler 300 because that Concorde was such a great car...Chrysler created such a buzz that people HAD to at least see it. Once they got in, they were pleased and bought.
GM can't just make cars that compete...they have to blow the competition away with styling, performance, comfort and quality. Because of its past sins, GM has a much higher bar than others.
Posted by: JD on March 16, 2005 6:42 PM
To clear one issue--driving a "foreign"-branded car is neither unpatriotic nor does it threaten American jobs. Many Japanese-branded vehicles are built in American factories, by American workers, often with superior management and labor practices. By the same token, many of Ford's and GM's vehicles are engineered overseas, and built in Canada or Mexico. This issue is more nuanced than "the badge on the grille ain't 'Merican."
I've driven a few Cobalts, and it is indeed a very competitive car in its class. Smooth ride, fair handling, great looks, and very good interior quality. The drum brakes work just fine.
The reason the Cobalt is facing criticism in the automotive press has nothing to do with an anti-American or "liberal" bias (have you ever read the editorials in Car & Driver? Yeesh.) The issue is this: The Cobalt is all-new, yet it has only caught up with the current-generation Civic and Corolla, which have been in production for a few years now.
Next year will bring an all-new Civic, and a new Corolla can't be too far off. Once those vehicles are introduced, the Cobalt will find itself an also-ran again, unless quick, meaningful updates are implemented.
Bottom line here is that Chevrolet built a great car that more than holds its own against the new-for-2003 class leaders. But GM's benchmark was a few years behind the competition, and the Cobalt does not raise the bar in any given area. As a result, the Cobalt will date very quickly without further improvements.
Posted by: P.J. on March 16, 2005 7:02 PM
Mr. Lutz, you are facing an uphill battle with this market. I fail to understand why such effort has been poured into designing this car from scratch, specifically FOR the U.S. market. The foreign automakers have one great aspect in common. Their vehicle classes are all shifted down by an order of magnitude. Their markets will expect the same level of engineering finesse on a subcompact as would be expected on a compact in the U.S., the same level of finesse on a compact that would be expected on a midsize, etc. That is why you Europe and Japan have loaded, turbo-charged Toyota Echoes (Yaris/Vitz), and call [our midsize] Camry's and Accords "Executive Sedans." If we were to suddenly discover a previously untapped market where a Malibu would be a very small compact, and a LeSabre barely midsize, these cars would impress the pants off of those markets because their engineering, chassis tuning, and general feel would be indicative of a much larger car.
Take Honda: look at a Civic. It's the bottom of the line in the U.S. Honda lineup; a car that a college student could easily afford. In other markets, a Civic is a bread-and-butter family car, with the Jazz holding up the small car market. The same goes for Toyota, though they have attempted to sell their subcompact Echo with disappointing results...who wants one when the Corolla is almost as cheap?
GM is the world's largest carmaker. There are competitive Vauxhalls, Opels, and Holdens around the world that would make excellent small-car templates for the domestic small car market. Using Daewoo engineering to create the Aveo was a step in the right direction, but perhaps a more established, refined product line would serve as a better DNA donor.
This said, with it's incompetitive prices, the Cobalt has several possibilities:
A: The tanking U.S. dollar will equalize prices with the far east.
B: Costcutting will result in a cheaper but decontented automobile, which will establish a clear lineage to the Cavalier.
C: Rebates will appear to kick the sales into action, concurrently dropping the resale value and once again reminding people why they didn't buy a second Cavalier.
D: The Cobalt will fail, sucking down millions of dollars in R&D, and crippling GM's next attempt at a competitive compact car.
E: The Cobalt SS will give the car enough street cred that it will become a sensation. Compact enthusiasts tend to favor imports almost exclusively, and owning an import is almost a rite of passage. Domestic enthusiasts scoff at FWD 4 cylinder performance. With the Focus SVT off the market, that leaves the Neon SRT-4 as the sole competition in the domestic hi-performance market.
I'm glad I'm not in your shoes to find a way out of this nasty spot. Best of luck to you Mr. Lutz, I suspect you'll need it!
Posted by: Steve B. on March 16, 2005 7:54 PM
Bob: GM needs to exceed, not just meet the competition. There's a reason that the BMW 3-series and Accord have been on Car and Driver's "10 Best" list so often.
Please don't put drums on the car and then compare them to others... put all discs AND THEN CLAIM that you, YES GM, and NOT Toyota Corolla CE, S, and LE; Toyota Camry; Honda Civic DX, VP, HX, LX, EX and Hybrid; Honda Accord; Ford Focus S, SE, and SES; and the Chrysler PT Cruiser) have all disc brakes!
Exceed, or BLOW AWAY the competition, don't say "they do, so we are too."
A few ideas:
1. Offer an entire car line with AWD as on option. Great marketing and safety. It's offered as on option on all Audis and Volvos and most Mercedes. Imagine an ad that said "AWD, offered on all Chevys, as well as Audi and MB for TWICE THE PRICE!"
2. Aside from all discs, give 'em ABS on ALL CARS standard!
3. Eliminate the old cars. If the Cavalier is a drain on your reputation, kill it. Tell Avis, National and Alamo that it's a Cobalt or nothing.
4. Get on the hybrid train. The EV didn't work. Hybrids are not weird cars anymore... Civics, Accords, RX330 SUVs as well as the Prius and Ford Escape. GM is silent and this is a bad move.
That's all for now. Until next time, keep up the good work. I'm looking forward to visiting the GM display in NY at the end of the month.
Posted by: Andrew on March 16, 2005 7:56 PM
Thanks for putting this info up.
Posted by: jon cline on March 16, 2005 8:09 PM
Thank`s for bringing it to everyone`s attention of the bias of the American press.
I wonder what Consumers Report has to say? Does anyone wonder why the
American auto makers' sales are down and foreign sales are up?
Posted by: Cliff on March 16, 2005 8:09 PM
To all those ragging on drum brakes in 'this day and age' and other BS excuses...
The Cobalt was rated 2nd in stopping distance by C&D. Who cares what the brake configuration is? It's about performance, not form.
You are probably the same people who would discount the Corvette simply because it still uses a pushrod engine.
Wow, cry me a river.
Posted by: DerBlitzkrieger on March 16, 2005 9:22 PM
I work in a bank as a lender; but for a couple years I sold Chrysler cars. All I can say is that some people get an idea of something in their head and nothing will sway them, no matter how much they believe they are being objective. I think the "Matrix" has them has been my conclusion.
One example. I have had 2 Neons (the second one having outstanding quality). I went for a drive with with a fellow to get coffee in his girlfriend's Civic Si (nice looking 2 door Civic with a spoiler etc.). I found in incredible cheap inside, lots of shiny plastic, the seats were hard (and I did not fit them), the roof was so low I had to lean back to the point I felt silly; even the famous "Honda" gauges (which were outstandingly well layed out) were cheap plastic-ie looking creations. Fingerprints everywhere, which shows you how much the plastic looked like plastic).
Got back to my '01 Neon, and my seats not only looked like they were plushier, they were instantly more comfortable, my finishing was better (cloth) and my dash at least looked like an attempt at VW-like leather grain. My car is quieter with less rattles when driving on rough roads and over tracks (and seems to behave better). My engine might be a bit louder, but the outside world is much louder in the Civic (which mean I can listen to my stereo better ... which BTW my Neon has a better sounding "standard" unit in it).
So I'm constantly thinking when I look at Corolla, Camry, Kia, etc ... I just don't get it, why do people spend more money for so much less. The only thing I can figure about the Japanese is that they build things so well with such high tolerances; that they can get away with using cheap materials. But at the end of the day the quality of materials used (ie GM and Chrysler now use outstanding paint) are what makes something durable and easy to live with over the long term.
Add to that how important the American-Canadian plants directly impact our economies (the Japanese, Korean, etc hardly show up,which tells us the profits go elsewhere) and I cannot imagine why an magazine often bad-mouth their own products using propaganda like reviews.
Posted by: Glenn Laycock on March 17, 2005 1:30 AM
GM Luxury, GM Sport and GM Value.. Sorry NO!!! When I want a Chevy I go and look at a Chevy dealer so I can see what kind of Chevy I want. GM has a luxury badge the name is CADILLAC. People CADILLAC... Chevy and Pontiac speak to the more sporty-minded Olds and Buick the more family minded each of these badges has its own flair that would be ruined with a combining of the company like is suggested. Let's face it, each car company is set up like this. FORD, Jaguar, Mercury and Lincoln are all FORD companies but we don't insist the become FORD Luxury...Etc.
Back on topic. I own and Cobalt and I can attest to the peppiness of this car. It's a dream to drive if you know how to drive a four cylinder. I've spun the wheels pulling out from a green light already the power is there. The handling is there, the feel of exceleration and excitement is there. I've OWNED a Cavilier and I will and have been telling people who've seen this car to give it a chance. And what about the issues of legroom. Well yeah it's lacking a bit in the back seat, but it's not a problem for me...I'm the DRIVER I sit in the driver's seat. I came back to Chevy after owning a Neon for 5 years and I can say that I'm not dissapointed with this car. This Cobalt is a beautiful thing and I will continue to tout its praises for as long as I own my peppy little car.
Thank you Mr. Lutz, Thank You.
Posted by: Merrill Davis on March 17, 2005 1:57 AM
I purchased a Cavalier new in 2003, and am quite pleased with its performance, especially the acceleration and braking. The arrival of the Cobalt just makes me wish I had waited a little longer, and the SS makes me kick myself even harder. The way I see it, if people want optimal brake performance they will purchase aftermarket brakes, and replace the drums anyhow. So paying for two discs and two drums seems to be the most efficient in all respects. Keep up the good work, and excellent service.
Posted by: Adam on March 17, 2005 2:38 AM
I have read both reports and they sure are very contradictory. But, why not strive to be best in the class? Why compare yourself with the other average cars in the same space? If other cars in the class have drum, GM should do better and put disc brakes, not because it is much better than drums but because customers and opinion leaders precieve it to be better. GM must work harder than other car companies to change the opinion of car buyers; just being as good is not enough in this case.
I don't want to sound like a management guru, but I believe one of the reasons for the sucess of Toyotas and Hondas is that they didn't set their mind to build a car as good as GM or Ford, rather, they set their goals to be better than the best and more expensive cars in the class.
Posted by: Alex on March 17, 2005 2:53 AM
PLEASE!!! Electric cars. The air is getting worse and worse. The weather in the Middle West is crazy. I refuse to buy a new car until I can buy one without guilt! Show that a corporation can make money *and* give a damn about the future of the world. Begging. Genuinely begging.
Posted by: Patrick Haines on March 17, 2005 3:34 AM
My mother once asked me, "If all your friends went up to the roof and jumped off, would you?" That's just about my attitude toward your list of cars with rear drum brakes. If I'm buying the competition now (and, apparently, a lot of people are because GM's sales are down again) I'm not going to stop doing that just to get the same thing from GM.
In its favor, the Cobalt has 5hp more than my '76 Camaro --which also has rear drum brakes.
Posted by: Bill on March 17, 2005 6:23 AM
In my opinion, the problem with many of the new vehicles (Cobalt, G6, LaCrosse) is that they don't look different enough from their predecessors for most consumers to give them a second glance. Despite greatly improved content and mechanics, the Cobalt looks like a refreshed Cavalier and the G6 looks like a refreshed Grand Am. The LaCrosse looks like, well, a Hyundai Sonata.
If these new models are such a great improvement over the one's they're replacing, then they need to look distinctly different. I understand the need to maintain brand identity as the product line evolves, but other designers managed to wrap few signature features into an exciting new design. GM does a pretty good job with this with the Corvette and recent Cadillacs and needs to bring that design philosophy to the mass market brands.
Posted by: Greg on March 17, 2005 8:19 AM
LOL ... You're seeing shadows and bias in every corner. The fact is the Cobalt is a ho-hum car, worse to my eye it looks like an imitation of a 10-year-old Civic.
I'm not trying to be harsh but you need some tough love boys. There is absolutely nothing special here. Instead of comparing the Cobalt to a Civic or Jetta or another car that is due to be replaced next year, try comparing it to another relatively new car design. How about the Mazda 3? I dont think it compares to favorable to that one, and the Mazda has already been out a year.
That's where these bad reviews come from - not bias. The Cobalt is brand new, and already its only barely as good as the competition. If Honda were to re-release a '00 Civic today, they'd get horrible reviews too - and I think you know this.
So what are you going to do GM? Keep benchmarking your competition's outgoing models - and making yours just a *tiny* bit better? And then let the Cobalt rot on the shelf for 12 years while the competition updpates their cars 3-4 times? Thats old-school thinking and not going to win you any enthusiast friends.
Or are you going to step up to the plate and raise the bar with a new model - not just barely meet the bar? We know what path Ford has chosen (refusal to bring the new Focus over to the U.S., the lame engine in the 500...etc.) Is that the same path you're choosing?
Its time to stop whining about the "bias" media and get serious about competing. Nobody likes a sore loser.
Posted by: Alenjin on March 17, 2005 8:46 AM
Mr. Lutz,
I am optimistic about the Cobalt's chances in the market.
Regarding the SS, it sounds like a great car, BUT, could we lose the "boy racer" wing? These "spoilers" don't have an real function, and look silly. Keep it as an option, some people would rather have a fast car that blends in, than a car that screams "hey, look at me!"
Posted by: MF1911 on March 17, 2005 8:53 AM
Mr Lutz,
I believe if GM were to once again be the brand all others wanted to emulate you would have turned the proverbial corner and the company could do no wrong.
Competition is intense and market share is dwindling. Taking on the competition as equals just won't cut it anymore.
If the competition has front disc/rear drum brakes, GM's products should have disc at all four corners. If the competition has side curtain airbags standard - and all the testing states these are the best for the protection of the occupants - then GM had better make them standard too.
That's fine if Ford and the other automotive manufacturers have rear discs, but this is a GM product and it's better than the rest. (get the idea!)
I would also like to chime in and agree with "REGF" above who posted:
"Mr. Lutz...why can't I buy a FOUR DOOR COBALT SS? Complete with the Recaros!!!!! I need to be able to put my kid in the back so she can have some fun, too. Jettas have four doors, you know."
Please do include a four door Cobalt SS, or at the least add the 2.4 170hp motor to the LT as an option...and an optional delete box for the giant wing spoiler on the order form.
In closing, I would like to thank you for all that you have done for GM so far. With your continued guidance and use of the tools available (like this blog) I look forward to GM's return to the leader and pinnacle of the automotive world market.
Posted by: Aaron on March 17, 2005 8:54 AM
You Go Bob!
I have worked in and around the auto induatry for years. Remember, GM consumers have been short changed for a lot of years. Many of us have hung with you and gotten slapped around with inferior product and poor customer care. Yes that is changing, but it all begins with an honest addmital of past errors and a new public evangelical commitment to the core of the business - nothing less than outstanding cars and outstanding people. We are all just waiting to believe, because deep down we love you GM!
The Dealers need to believe too...they have subtley bought into the inferiority of the GM product on a number of levels. G-d bless you Bob, RE Commit to TOP QUALITY nothing but the best for us!
Posted by: martin on March 17, 2005 8:55 AM
Dear Mr. Lutz,
I have to ask the inevitable question. I see from the blog that you have a lot of people that either love or hate GM cars (along with other American cars).
I personally would not choose to buy the majority of American cars (Corvette is a rare exception) for the simple reason that I believe the Japanese have better quality, attention to detail and most importantly, reliability. The problem with American cars dates back to a period of about 20 or 30 years ago, when American cars were the epitome of planned obsolence.
In addition, I have had bad experiences in some American cars. The worst was a Ford Ranger double cab pick up I drove in a couple of years ago. It was supposedly new but was the most uncomfortable cars I have ever been in. I drove it and swore that I would never drive that vehicle again. Strangely enough, this is a vehicle that is sold under the badge name of Mazda as well and a couple of weeks later I drove an identical Mazda, that was a hundred times more comfortable. I cannot explain this, but experiences like this only seem to happen when driving an American car with so many people that I have met. Don't even ask if the fates are conspiring against you.
Another thing that makes people turn away from American cars is the generally old technology. I mean, look at a Subaru and see that you don't need to have a 7 litre V8 giving 3 kilometres a litre to have a quick car. You can do it with a smaller engine with more racing tricks like turbo's etc.
Posted by: P. Ganapathy on March 17, 2005 10:23 AM
Dear Mr. Lutz,
In reference to the HHR...why is GM not capitalizing on a niche it (unwillingly) creating with the Astro van? All of these newer Japanses cubes (Element, XB, Nissan cube) are a direct result of the cult status the Astro has in Japan. Instead we get a PT Cruiser clone. Why not create a Cobalt-based small boxy Astro (call it Astro not HHR) and capitalize on the this niche? Why follow their lead when GM created it in the first place???
Posted by: Steve on March 17, 2005 10:37 AM
re: 4 wheel disc brakes
Pro: uniform 'energizing' effect, enhancing rapid deceleration/near lockup performance--even with electro/hydraulic interventions; uniform 'inclement weather' characteristics, i.e. wet component performance;
facility of brake maintenance; unsprung weight..possibly a tossup;
ultimate stopping efficiency...maximum deceleration "g's"; much the same, much superior heat dissipation in components with disc system;
and...definitely, marketing, in view of the competition's including them on most models
Con: cost; parking brake issues; application feasibility in view of particular vehicle/model performance/power specs.
Is it truly value added for all vehicles in view of these and other considerations???
Posted by: allen staples on March 17, 2005 10:53 AM
I must echo some of the earlier comments. The Cobalt is aimed square at the middle of the pack as far as compacts go. GM needs to create vehicles that are not only better than what is on the market now, but better than what is going to be here 3 years from now. The Cobalt should have the 2.4 ECOTEC 177HP *STANDARD*
4-wheel disc brakes with ABS/Traction control *STANDARD*
Head curtain airbags *STANDARD*
It doesn't matter if any of these things make the car safer in reality. Consumers are mostly sheep. They don't buy reality, they buy PERCEPTION. The perception of quality is better than actual quality, that is why GM is mere months from being the world's 2nd leading automaker.
The same problems afflicting the Cobalt are also the problem of the new minivans. Although bigger than most others in their class, the CSV brethren RELAY, Terraza, Uplander and Montana SV6 are all smaller on the inside, underpowered and quite difficult to configure.
GM Powertrain is ready to roll out high-feature V-6 engines with lots of HP and technology and GM insists on putting "High value" V6s in everything. Yea, they have more torque but so-what. The first question out of everyone's mouth is "how much horsepower does it have"
Perception > Reality.
GM needs to blow the competition so far away that there is NO DOUBT who is the leader.
Posted by: Peter A. Willis on March 17, 2005 11:32 AM
Bob,
It is great to see GM becoming involved with the community in this way.
I drove a 1986 Cavalier Z-24 from 1994-2000. The 2.8L V6 was so zippy with the 4-speed manual that I was able to beat a V8 Ford Mustang off the line up to about 50 mph.
The powertrain was fantastic and held together. This is my typical experience with a GM product...great powertrains, but the rest of the car falls apart (including my parent's newer Cadillac). For example, the electronic dashboard failed on me at about 80,000 miles. I put the next 25,000 miles on the car with no speedometer and no gas gauge (I only ran out of gas a few times ;). Finally I was able to find a junkyard replacement and GM thankfully went back to manual dashboards.
The other apalling failure was that the stick shifter broke! The metal actually just snapped and appeared to be of poor quality!
My advice is to keep up the good work and try to improve the quality on the little things. BE CONSERVATIVE! My Nissan is simple and basic with no bells and whistles, but the attention to quality is incredible. I know GM can do the same.
Posted by: Mike on March 17, 2005 11:58 AM
Mr. Lutz,
Every day I read the forums at on-line magazines and all I read is bashing of GM. I don't get it! It must be that you are No. 1, and that makes GM the easiest target. The new Buicks, Pontiacs, Chevrolets, and especially Cadillacs are great cars that are all major steps in the right direction for the general (with the exception of the new X-over vans). The future Saturns show a ton of promise, and I love the new Solstice.
As a happy owner of a '97 Pontiac Sunfire (yes that's right, I said happy owner, 600 miles per week, trouble free) I am very anxious to test drive the new Cobalt SS. I sat in one at the NAIAS, and the feel of the finish, the seats; really the whole car was exceptional. I agree that the rear wing should definitely be an option and that a four door SS should be available. Not everyone wants their car to shout "Look at me." This would make the car appeal to a larger audience.
One thing that I love about my '97 Sunfire is that it has four doors and a five speed. Not a very popular combination. I put some Eibach springs and some wheels on it, and it is now a fun little commuter. On ramps are the highlight of my day! It is not fast, but still fun, and has tons of room for my friends. The last generation Z24 Cavalier, in my opinion looked way better with four doors, the design had better proportions. The practicality of a four door is also hard to top, and maybe weight distribution might be better?? I'm not too sure.
Mr. Lutz, I'm a General Motors man through and through, have been all my life, and I want to thank you for all you have done so far. Keep up the great work! I can't wait to see what you are putting out in another couple years when I'm finally done with college and can afford a new GM car and truck.
Posted by: john r on March 17, 2005 12:02 PM
It’s a bit off the topic however this question has been on my mind for some time now. It has been well over 20 years since the Japanese car manufacturers emerged as a force to be reckoned with in the American car market. Over this time the American car industry has not been able to find a sustainable strategy with witch they can out compete the Japanese car makers. I just can understand why, after 20 years, are the American car makers still loosing the competition with the Japanese car makers? Can you share your thoughts on why this situation persists?
Posted by: Michael Williams on March 17, 2005 12:12 PM
Bob,
Could we get the supercharger option in the HHR? How about an AWD option also? Both of these "option only" would work wonders for sales!
Keep up the good work!
Posted by: Craig W on March 17, 2005 12:20 PM
Bob,
Why the truck like air space between the tires and fenders on the Cobalt? Is there an off-road version in the works? GM is never going to lead unless they build cars that are better than the best that the competition has to offer. The Cobalt, new mini-vans, small pickups, etc. don't meet this standard.
Posted by: Al on March 17, 2005 2:06 PM
Hey Bob,
Glad to see that this blog is generating so much noise. It's this feedback which is essential for us to communicate our praises, gripes, and desires to you and those who can help drive decisions and continue to move GM forward.
I just wanted to thank you in this message for putting your heart and soul into Saturn's renewal. I am a happy Ion Red Line owner, and despite some early production kinks (and a truly horrible stock ECU program), Saturn/GM has treated me with honesty, speed, and courtesy that I would only have expected at a Lexus dealer. I'm thanking you now for the wonderful after-sales support and service that will keep me smiling from ear to ear every time I put the Ion in first gear. Keep up the great service, and don't forget to check your rearview mirror (to ensure your current customer's voices are heard) as you continue to move forward.
Erik Quick
2004 Ion Red Line
1986 Buick Grand National
Posted by: Erik Quick on March 17, 2005 2:10 PM
DO NOT let the opportunity to use 427 on the ZO6 hood go away! Look at how Chrysler has used the Hemi in their marketing. Those 3 numbers on the hood just like the old days would be awesome! 7.0 does not mean crap to Born in the USA motorheads who always wanted that Corvette and the power of the 427 ci engine. IMHO
Posted by: Randy on March 17, 2005 2:49 PM
With regard to P.J.'s comment above: I've said it before in this blog, where do you think the profits from the sales of foreign cars go? Do you think foreign automakers invest in the U.S. to grow our economy with no regard to their own? Keep buying Toyotas, Hondas and Nissans and pretty soon we can all be "proud" to say that the number one car company in the world is Japanese and we helped put them on top! U.S. automakers are still paying for mistakes made in the 1980s. I've never ever looked at a Civic or a Corolla and said "wow." They are the most average looking cars out there.
Posted by: Lisa on March 17, 2005 3:09 PM
Hey Alenjin, what's with the ******** comment? That really shows your enlightenment. Instead of HONEST DEBATE WE GET AD HOMINIM ATTACKS. Mr. Lutz has several valid points, to which you lauch baseless attacks against people with a diffenent opinion than yours. Subjective opinion is one thing, political attacks soemthing else. So much of the blog seems to Ad hominum attacks on GM in particular and American Manufacters in general. It cracks me up to hear people on the street say how much better the Toyota Matrix is than the Pontia Vibe not knowing they are the same car--although the Vibe looks better. The truth is everyone makes good cars. The only difference maker is the Corvette. No one else comes close in value with this car. JMO
Posted by: Dan Bokros on March 17, 2005 3:16 PM
I read the WSJ story the day it came out and was extremely disappointed. The comments seem so much at odds with my own impressions the Cobalt.
The rear brakes on a FWD car are pretty much for parking anyway, the fronts do all the work.
Right now GM seems to be everyone's whipping boy. I would love to have these guys do evaluations with no logos on the cars and see how much different they might come out.
Posted by: murray500 on March 17, 2005 4:06 PM
Although burned by the 2003 Saturn Ion, I might look at Cobalt in future as it seems greatly improved!
My 2004 Mailbu Maxx is also much better than earlier GM cars. It outrides the Camry and Accord I used to own and is great for long freeway trips!
But Bob, it would be really nice to see GM Service improve as well. Most GM dealers I visit cannot service the cars GM sells (the ION was damaged to point of recall, the Maxx is suffering). Please remember that once we buy these cars, we OWN them for a long time and want to keep them in good shape. If GM dealers cannot or will not do this, it is a huge dis-incentive to getting another GM product.
Posted by: kurt on March 17, 2005 4:26 PM
The credibility and objectivity of those who complain about the Cobalt is undermined by their ignorance and stupidity.
The Neon is a Dodge, made by DaimlerChrysler, not GM. Civic and Accord sales are crashing faster than most GM trucks. "Planned obsolescence" was the annual model changes of the '50s and '60s. The product becomes obsolete (like last month's PC) much faster tha it needed to be replaced. Buick CSX? Do you mean the Buick LaCrosse CXS, Rendezvous CXS or Lucerne CXS? The Ford Five Hundred is fwd, not rwd. Perhaps you mean the Chrysler 300? Although sales of rwd and awd vehicles are increasing, most people still prefer fwd, or they wouldn't be buying the afore-mentioned ES330, Toyota Camry, or Chevrolet Impala.
GM made an outstanding electric car (the EV-1), but it (and every other electric car) was almost completely ignored. ZAP still sells a few electric cars (and reconditioned, Americanised Smarts), but not enough people will accept the compromises for volume production.
Finally, the LS7 is not a 427 ci engine, it's actually a 428. Kind of spoils that, huh?
Posted by: Andrew Charles on March 18, 2005 12:02 AM
I went to the GM Autoshow In Motion today in SF and had some comments on the event, and the GM cars.
First--I've enjoyed these events in the past, but this time all the test tracks seemed too short to really get a feel for the cars.
Next--the cars. Kudos on:
CADILLAC STS--smooth, powerful, great handling, beautiful fit and finish. Does it beat a Lexus? Yes on style and handling. Does it beat a Chrysler 300 which is $15K less? In many ways, no.
PONTIAC G6--great design, fine handling, good-looking interior (especially with the light taupe perforated seats) and cool panoramic glass roof.
SATURN VUE--my wife and I were both surprised by how comfortable it was, and how well it drove and how it just felt more in control than other small SUVs and were also pleased to hear it had good fuel economy.
And good work on the Saab 92x--I know it's a Subaru--but GM has made it sufficiently Saaby, and the two-tone interior is something GM should carry through on other models because it's terrific.
The Corvette is fantastic in every way--great job. The Cadillac V-series is also very impressive--Cadillac has been reborn (except...)
============
WHAT GM needs to sell is SAFETY.
SIDE AIR BAGS AND SIDE CURTAIN AIR BAGS SHOULD BE STANDARD ON ALL CARS.
Standard. Not options. SAFEY is something everybody understands and appreciates. Is your life worth $300? Most people would answer "yes." So add them and add $300 and then say you put safety first. That's a great selling point and you are missing the boat on it. OnStar is great--you're selling safety there--why not capitalize on that with better crash-protection safety?
===
I was disappointed with the Buick LaCrosse. Attractive front end, but the back looks Pontiacish and the side is a too Taurus. The interior design seems good at first, but but it didn't "feel" right and my wife's comment was, "This fake wood is ugly." That's from a woman who DOESN'T read auto trades and had no prompting from the press.
If the Kia Amante can have REAL wood that looks good, why can't the La Crosse? If it requires that you source it from South Korea, then do it.
The car was quiet, but the handling was weak and priced as it is, it's just not in the same class as, say, the new Toyota Avalon.
With the falling American dollar, why should the La Crosse cost the same as the high-Yen Avalon?
The Cadillac Escalade, which I know is a big seller, is horrible, inside and out. Outside it looks like it was cobbled together. Inside it doesn't look much better than a Chevy.
The Lincoln Navigator is better looking on the outside, had retractable running boards that REALLY work, and is beautiful inside--the dash and interior say Lincoln, not melting Chevy plastic dash with glued on fake wood bits, which is what the Escalade screams.
GM is clearly moving in the right direction (and I can't wait for the Solstice).
But GM needs to consider simple yet important things it can do, like making more airbags standard on ALL models, that would raise people's opinion of GM and how it takes care of its customers.
Posted by: Daniel Will on March 18, 2005 5:29 AM
Bob:
I'm a big fan of your effort at GM and the new products GM is rolling out.
A word about the 4 wheel disc brakes. As an owner that values performance, 4 wheel disc brakes is what I look for first in selecting a car.
As a result, some fine cars don't get my consideration. The drum brakes what I didn't like about the old Malibu (Classic), and the disk brakes is what I like about the new one.
Please keep in mind that rear disks were what really differentiated GM trucks from the others years before Ford and Chrysler put them on their trucks.
Congruent class performance of other small cars aside, disk brakes are a great selling point. Put them on all your cars.
Posted by: Rich Saunders on March 18, 2005 9:53 AM
I agree with most of what you write, Bob, however, the Cobalt should have rear disks. The LS should also be availble with a manual transmisson. Also, the forthcoming HHR should be badged a Cobalt. Chevy would then be able to publicize the Cobalt as the best selling car in its class.
Posted by: bone on March 18, 2005 10:15 AM
Mr. Lutz,
You make some good points about the flaws in the review and allude to the bias that GM must fight.
True, the media is baised against GM. However, being ex-military you should know that respect is earned.
Honda and Toyota didn't just show up on US shores with good reputations. They earned their respect. And during the time from then to now, GM lost it.
Today the global vehicle market is even more competitive. And GM is faced with the daunting task of earning respect in that environment. It's not impossible, but GM has to try a lot harder.
Innovate:
Make cars customer configurable on-line. Customization is huge. Imagine the draw that GM would have if they could take a Cobalt, color it, add custom wheels, remove the rear wing, whatever... It also helps reduce the amount of inventory that dealers need to cary.
Build a better rapport with the customer. Let them vote on different vehicle designs. The Cobalt is a reasonable design, but I've got to believe that GM designers are capable of something more exciting.
GM has a lot of hard work ahead of it, and there are tons of things they can do.
Pointing out the flaws in reviews is likely counter-productive in the long run. To the foriegn brands it must sound like a bunch of whining.
Posted by: Jay Miller on March 18, 2005 1:01 PM
My concern with drum brakes isn't available stopping force - they're plenty good at that, which is why they're used on heavy trucks and trains.
The real issue from a functional standpoint, in my opinion, is the time to respond to the initial application, and the time to unlock. It's here that discs really shine. While the latter issue is masked somewhat by ABS (it certainly doesn't go away - it's just harder for the operator to notice), the first issue is likely going to be noticable.
There's also the servicability aspect. I do my own wrenching, and I'd much rather do a brake job on discs than drums.
What I'd like to know is why GM felt the need to put discs on the rear of the GMT800 from the get-go, and then go back to drums 6 years later. That move reeks of cost-cutting! What's the deal? I find it hard to imagine that the rear discs were costing all that much more than drums, especially considering that the tooling should have been bought-and-paid-for by that point. I mean, we've only been using discs for 40 years now - you'd think there'd be some manufacturing capacity built up by now, and that their inherent simplicity would win-out on the cost side of things.
I'd have to agree with the many others who have noted that simply matching the competition is no longer good enough. The Cobalt is a very nice car, without a doubt, and it'd be one that I'd consider if shopping for such a vehicle (but I'm still disappointed at the lack of an affordable GM passenger car with a truly "American" attitude). But something like standard discs out back would give it an immediately noticable advantage over many of its competitors.
Posted by: Angry Engineer on March 18, 2005 11:04 PM
Mr. Lutz,
A lot of people have already commented on GM cutting down on the number of brands it has, but I seriously don't think that's such a good idea. First of all, Toyota is also increasing the number of brands in its portfolio - Scion for youth, WiLL for difference, Daihatsu for small, Lexus for luxury and Hino for truck.
What GM has, it does not need to lose - I remember your comment on the Olds decision saying it was made before you got there. Furthermore, each of your brands has some heritage - which Toyota's do not. Build on these, because heritage sells. That is why Americans are crazy about the far east - their countries have 5,000-year histories where Americans have 200! The brands which didn't need to exist - such as LaSalle, etc. have already been killed off.
Secondly, the important thing for each brand to increase value is 'FOCUS.' If Cadillac is Luxury, Pontiac is Excitement, Chevy is the Heartbeat of America and Saab is Safety, then make it known to the world. Ford has been successful in that Volvo is touted as the Safety brand, even though Renault is the manufacturer with most 5-star ratings in the Euro-NCAP. Everybody "thinks" or "feels" Volvo cars are engineered with safety as priority 1.
Thirdly, I think Saturn was Roger Smith's worst ever decision - kill it now, and bring back Olds. If the latter didn't need to exist, Sloan would have killed it when he was Boss - and he really knew how to run GM !
Take heed, you need all the brands you got, not less.
Posted by: Vazir on March 19, 2005 1:36 AM
The "Gotta Have" philosophy is not working. You are spending too much money on low volume and niche vehicles. The emphasis in GM should be on lean. Right now GM's vision of lean is lip service. There is not a corporate culture of lean. Reduce the amount of classified High $ employees & get serious. It may already be too late.
Posted by: stockholder on March 19, 2005 10:42 AM
Is it true that the Zeta program has been cancelled for North America? Please say no!
Posted by: Bob Miller on March 19, 2005 11:54 AM
I couldn't care less about a stick shift. The majority of Americans don't want them, only accept them if the price is signifcantly cheaper, and there are few places to drive where they really make a difference.
Cloth seats, even as an option, are quite good. Those of us with K9 pets appreciate them. Leather seats (and "seating surfaces") make seat warmers necessary.
Decontent your cars for the love of Mike! You had a great replacement for the aging S-10 pickup in the SSR. It has a V8, a mode many S-10 onwers were doing to their own trucks. What does GM do? Gimmick-out the SSR until it's outpriced its market and then introduce some really dorky looking "mid size" replacement. (Parking lights at the top of the fenders? It looks as confused as the Charger with its truck grill.)
I know GM is trying to pick up aging Corvette owners with the new Cadillac, but either get some older or younger stylists in house. As is, the Cadillac (and its ilk) looks like someone tried to make it look like a Mercedes, thought they went too far, and then smooshed the front to make sure they wouldn't get sued. The only people who think it looks great are auto journalists who grew up with video games that had poor resolutions. Everything had to be angular there.
And just because I've had a bad morning, what about that GTO? Was Pontiac embarrassed to sell it? Is that why it went badgeless and barely acknowledged until people on the street started to complain? Sales any better than they were for the Camaro? Bring the price down $5K so the car's market can afford it.
The concept of cars as cachet is gone. They're back to being visceral. You're missing the existing and emerging market.
Disclaimer: I've never owned a Ford and won't. With minor departures, I was a Dodge guy from '72 - '94 (until my V-10 pickup); was a GM guy from '94 - '98 (Beretta, Formula, T/A GT, Z28, Z28SS, Corvette Pace Car, S-10 SS). Best value vehicle - '98 S-10 SS std cab. Worst value vehicle - '03 Hemi std cab pickup. Should have never sold the S-10...
Posted by: Bill on March 19, 2005 12:18 PM
Of course, confronting the media is perceived as a bunch of whining and the task at hand to change this perception is enormous. Allow me to explain that it will not happen for at least 5 to 10 years; here is why:
1) The current writers got their names on the map by bashing US Cies (deserved or not is not the the topic). This behaviour provided them with one major advantage: recognition of their own name. This is call in marketing "brand recognition."
2) The junior journalists that they train cannot speak their minds, even if they could think otherwise. This is called the party line in politics. I have seen many cases in some customer magazine where I live. To be hired, do not say you are in love with Ford!
3) The demography will take care of the "has been most senior writers." Some of them have been riding too long in this automotive jungle to be impartial. Their mind is made up and will not change, no matter what the manufacturer are doing. Those writers are now in their fifties and will most likely be replaced with a younger generation.
4) The reasons why those writers do not want and will not change their mind are the same as the cie they criticized: what has been succesfull in the past will keep on being succesfull. Why change? They also derived many benifits doing so for the last 30 years.
My suggestion to the US industry is this: do not waste your time trying to convince actual consumer magazine writers: talk to their assistants and keep them near your hearth. The solution is the next generation.
In fact, the proof of this is look at what is going on in China; no manufacturers is benefitting from the journalist opinions and Buick is one of the best selling nameplate! China is still a virgin territory as far as media influences go. Very interesting lab experiment.
Posted by: stratojet on March 19, 2005 12:36 PM
I love how the WSJ can bash something built in north america and can't see the entire market for this vehicle. They just can't get their collective head around the fact that we north americans can build a good product. When we do they give it faint praise or just call it acceptable.
I don't know what you have to do to swing the perception out there in the media world. I think you have to do something extreme to wake them up. JD Power and Assoc. is seeing the reality and it is also showing in the Harbour report on productivity. It is not showing in the media and the choices of consumers. The perception will take a couple generations of great vehicles to over come. That is how the Japanese built their reputation, and now how the Koreans are doing it as well.
The unfortunate thing is that it takes time and you guys have such high legacy costs that major shifts will have to take place before you get over the hump. I am sure it will happen, but you guys will have to cherry pick your best and brightest and run with the highest quality plants. You will need to cut poor products and maybe even eliminate brands to get there as well. Less brands with more focus on the remaining products will make them better.
Put your best powertrains in all model lines. Drop the 3800 and crank up the production on the 3.6L for all to enjoy. I also think you guys should have not supercharged the Northstar for the STS-V and dropped in the ZO6 engine to compete head to head with the new M5. 500hp vs 500hp. The Northstar is a great engine, but we are at war. Time to pull out all the stops and spank the Germans, Japanese, and Koreans... AGAIN! Sorry, got a little fired up.
The Cobalt is a great car. The SS is spot on. Keep going, don't stop!
Posted by: Jeff Crew on March 19, 2005 2:18 PM
the journalist community is made up of america haters and that bleeds over to their feelings about our cars - it is simple - i mean how many articles have you seen that ?s why we sell 30,000 cars to the japanese market of 9 million cars per year?
Posted by: ghughes on March 19, 2005 8:58 PM
In response to previous comments:
1. Production of the Cavalier ended last fall.
2. A manual transmission is standard on the Cobalt LS (and probably base models too).
3. Scrap the existing brands and replace them with "GM Luxury, GM Value", etc.? No thanks! Each brand has a lot of history behind it and I don't see how scrapping them would reverse GM's sales slide.
4. Ditch FWD? I'd like to remind the person who made that suggestion that if nobody liked FWD, the Honda Accord and Toyota Camry probably wouldn't be around (at least not in FWD form).
I've owned a 2005 Cobalt LS sedan for just over a month now, and it's a really good car -- especially the Ecotec engine. It seems very reliable to me so far. Not to mention this car is cheap to insure -- about half of what it cost me to insure a new Malibu, and less than the Cavaliers too.
Posted by: Shawn on March 19, 2005 11:43 PM
And did you notice that they had the Cobalt sedan weighing in at 3200+ lbs? That's about 400 lbs over its fighting weight.
Very sloppy work out of the world's greatest newspaper.
Posted by: AMcA on March 20, 2005 1:03 AM
First off, I think the Wall Street Journal needs to stick to covering Wall Street and let real car magazines test, compare, and review cars. I wouldn't expect People magazine to give me a worthwhile review of the latest handgun would I?
Bob, even with all that said and with all due respect, I just don't think some of you get it at GM. I used to have the same mentality you did..."look at the competition, they do it the same way!!!" What we're talking about is perception. GM (and Ford for that matter) can't afford to make their cars "just good enough" or match the competition to win people over...they need product that BLOWS THE COMPETITION AWAY.
Civics have rear drums? Well you know what Mr. Lutz? We shouldn't shoot to match a Civic. Our car is going to have rear disc brakes. Our Ecotec four cylinder is going to whallop the competition. You need to challenge your engineers and your beancounters to not build cars that are "just good enough", but cars that make people sit up and take notice...cars that even the most staunch of import-lovers have no choice but to say "wow...that's a nice piece." And you can't do that by simply matching the Japanese. It has to be a crushing defeat. You are fighting perception, NOT reality.
I remember when GM used to be the leader. It was clearly #1 for a reason. When did the corporate culture turn from innovation to copying? Since when was doing what the other guy does "good enough." With the apparent financial meltdown GM is headed toward, I'm hoping GM's brass recognize that being followers and not leaders in any trend or segment is what threw GM in this 30 year downward spiral in the first place, before it is too late.
Posted by: Mark on March 20, 2005 2:35 AM
Are you really not bringing ZETA to north america? B/C if not that will be a huge mistake.
Posted by: Mike Griffin on March 20, 2005 3:26 PM
I might as well comment on the recent news, which seems more pressing than WSJ's take on the Cobalt.
Mr. Lutz, GM wonders why its market share is declining every year, and why its profits dwindle. They do "studies" to try and understand the market, but in the end this is a company hopelessly out of touch with its customer base with little sign of improvement.
The public wants cool cars like the 300C and the Mustang. They also like to buy cars like the Honda Odessey and Nissan Altima, which offer great value and even a nice dose of performance.
The public does NOT want to buy cars built on warmed over 15 year old suspensions. They do not want 20 yr old engines that simply don't match the competition. They do not want cars with 4-speed autos when everybody else offers 5-speeds. In other words, they don't want to spend their hard earned money on mediocre efforts like the LaCrosse, the CSV's and the G6 when other car comapnies aren't asking them to compromise.
You guys can cancel your rwd offerings. You can continue to put the old trusty 3800 in your new offerings, and employ cheap 4-speed auto's that in fact get the job done. You can redesign the W-bodies and G-bodies an infinite amount of times. However, this is not going to save your company.
Posted by: David on March 21, 2005 2:33 AM
Bob,
I think we are all expecting an article on the Zeta development. This seems contrary to what should be done to the man on the street.
Posted by: Joel on March 21, 2005 9:08 AM
"Good is the enemy of great." - Jim Collins
The biggest bugaboo about the Cobalt seems to be it's Cavalier lineage. The Cavalier was barely "average" when it was introduced, and then it hung around for 10-odd years. By the end of its lifecycle, it became one of the least desirable cars on the road.
Everyone probably agrees that the Cobalt is superior than the Cavalier by nearly every measure. But that's damning it with faint praise: one could safely make that argument for every other car in the same class.
The trick is to not allow anyone to make that kind of comparison. It's important to cull the herd, Bob. The Cavalier should have been killed off YEARS ago. Keeping it around just to play in the compact segment did more damage than good.
If you can't play with the big dogs, get off the porch.
Posted by: emkay on March 21, 2005 10:44 AM
Not sure if this this the blog, but I needed a place to vent. I can't believe Zeta got the ax! I have been lusting over the idea of a Pontiac version of a Crysler 300. I need an afordable rear wheel drive 4 door car. I am sick and tired of poor handeling FWD cars and am finding it hard to be loyal to GM if the cars you keep pushing on us isn't what we want.
Posted by: Jim Tierney on March 21, 2005 2:12 PM
Hello Mr. Lutz. As a GM employee I want to say that I like the Cobalt SS. Haven't driven it yet but it looks like it can do battle with the segment that it is targeted at. I had a 2002 Cavalier LS Sport. I have since moved back to a '96 Caprice due to size and love for our B-bodys. Both had drum brakes in the rear and I did not have a problem with the brakes or thier capacity on either one. I also have a '96 Impala SS with 4 wheel disc and I haven't noticed much if any difference between that and the Caprice. I love what you a doing with our lineup. Just wish the media would see it that way. One request though, bring back some type of rear wheel drive sedan like the '96 Impala SS and there will be a lot of happy campers among the rest of us car guys.
Clarence.
Posted by: Clarence Erickson on March 21, 2005 3:29 PM
The Cobalt SS has some very nice touches and its interior is so much more inviting than the ION red line's plastic rattlefest. But do those 18" wheels and rubber band tires help handling? Those seem more like m