Data Shows Traction on Key Vehicles
By Mark LaNeve
Vice President
GM North America Vehicle Sales, Service and Marketing
There’s no denying that we’re going through some tough times right now. It seems like every day I read or hear news stories that focus on the negative. I won’t say that it’s all undeserved. However, every once in a while there’s a good news story that I wish would get a little more attention.
A case in point is a recent press release that was put out by the Power Information Network, which is a part of J.D. Power and Associates. PIN’s research shows that five new GM vehicles, STS, G6, LaCrosse, Cobalt and Corvette, have made great strides compared to their predecessors in important measurements related to retail sales – specifically, a reduction in the use and amount of customer rebates, an increase in actual retail transaction prices and a decline in the number of days it takes for a dealer to sell the vehicle.
The results were consolidated for 10 vehicles across several manufacturers, so we don’t know what PIN’s exact numbers were for the GM products. We do know, however, that this is in synch with what we’ve been seeing – and saying – about these vehicles. When our dealers can sell vehicles at a competitive price, with fewer incentives and at a faster pace, that’s a recipe for success. And we’re pleased that of the 10 vehicles mentioned in the release, 50 percent of them were GM models.
The fact that this trend seems to be taking hold on some of our most important, high volume launch vehicles is really encouraging, and we’re starting to see tangible results. In recent months we’ve started to show significant sales gains with our launch vehicles, including G6, Cobalt, LaCrosse and STS — the same vehicles cited in the PIN release.
People who know me, know that I’m an optimist – but also a realist. These are good steps in the right direction, however we recognize there’s still a lot that needs to be done. While there’s no silver bullet, we’re executing a plan that we’re confident will get us profitable again in our home market.
(Background on Mark LaNeve:
Mark was named vice president, GM North America Vehicle Sales, Service and Marketing on March 1, 2005. Prior to that, he was vice president, GM North America Marketing and Advertising. Mark has had a variety of assignments at GM including brand manager for the Pontiac Bonneville and several marketing positions at Cadillac, ultimately being named Cadillac general manager in 2001. He left GM for a four-year period (1997-2001) during which he was first vice president of marketing and then president and chief executive officer at Volvo Cars of North America.)
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Other Than That, How Did You Like The Play, Mrs. Lincoln?
GM North America’s VP of Vehicle Sales Service and Marketing, Mark LaNeve, puts in a guest appearance on the GM Fastlane Blog this afternoon.
However, the products still aren’t as good as the competition. Consumers may not know what the difference means between the 4 speed transmission, pushrod V6 in the G6 and the 6 speed transmission, variable timing OHC V6 [1] in the Mazda 6, but they know it when they test drive it.
That they are great leaps over their predicessors is wonderful, that fewer vehicles are being dumped on rental fleets and the discounting is not so insane is fantastic. But the discounts are STILL heavy (0% and $1000 cash-back on the G6, a brand new model).
Please, PLEASE strangle a few beancounters to get a nice standard 5 or 6 speed transmission and a modern OHC, variable-timing V6 for the bread-and-butter cars. And we want Sigma Lite or whatever the “Epsilon Ain’t Dead” platform ASAP.
[1] Yeah, its a Duratec derivitive, but the Mazda-ization adds an extra 10% more power and a good top-end rush. And even that one pales next to Nissan and Honda’s V6 offerings, I was using the more generous comparison.
Dude,
Instead of mining each and every blog and press release for good news, how about just sitting down and making some decent cars that are equal to or better than their import rivals?
Then the good news and sales will take care of themselves!
Speaking of possible good news, when’s that Solstice coming out anyway? Have those production bugaboos been fixed yet? That car is pretty much the make or break vehicle for GM.
You guys screw that up, and a lot of us that would love to buy a GM product but can’t afford a Corvette will probably swear off GM forever, or until we win the lottery, whichever comes first.
Mark, here’s the deal:
For some reason the press is highly negative on GM, some for good reason, some not.
When you change model names it is seen as a sign of desperation.
The Grand Am should never have been named the G6. That hurt sales right there. If you continue with this naming scheme-G4, G8, etc, Pontiac will die.
Just because it worked with Cadillac don’t expect it to work with Pontiac. Cadillac’s cars were so radically different with the RWD and Styling that Caddy could pull it off. The G6 is still basically a better looking Grand Am but without the cool name.
Buick-LaCrosse? Lucerne? Please. The Regal was listed as the most reliable car in North America so what do you do, you change the name and immediately lose that recognition. What are you guys smoking?
Why change the name of the LeSabre? Its the best selling car in its price class. Just keep the name LeSabre.
Buick Park Avenue-the name still has cachet, why change it or kill it? Just make a nice design and keep the name. Toyota and Honda do not change the names of their vehicles.
Next, the styling is still way off. The Chevy Malibu for instance-how in the world did that front end ever get approved? How did the steering wheel in the Malibu and G6 sedan ever get approved? Are you guys blind?
Do yourself a favor and change the front end of the Malibu to the front end of the Malibu SS which is much better. Also, make the steering wheel in the G6 Sedan the same as the 3 spoke in the G6 Coupe and change the steering wheel in the malibu sedan to the same 3 spoke. Instant improvement. Also, get some color mixing in there. Add some black to the grey, etc.
Next-Electric Steering. I have heard nothing but horror stories about this steering system. Why did you guys put in a steering system that clearly was not ready for prime time? Would Toyota or Honda have ever done this? Not a chance. Don’t you test drive your cars before building them?
Get the electric steering out of all the vehicles that currently have it. That alone would increase sales.
Next-to be repeated over and over again for G_d sakes build more RWD Vehicles! A 4 door Chevelle, a new Camaro, a 4 door Pontiac Tempest, a new Firebird, the Buick Riviera (Velite).
Come on! How can you even consider killing the RWD platform when so many people were excited about it. You want nails to drive into the coffin? No, then accelerate RWD programs!
Cross-Over SUV’s. Are you bringing the Chevy S3X over here for sale? It is beautiful and just what Chevy needs in the market. It could replace the Equinox which is a little too big, or the Equinox could replace the trailblazer which is a gas-hog. Just do it!
Lastly-to be repeated over and over-
10 YEAR WARRANTY! Match Hyundia’s warranty to show people you mean business about building world class cars. No more rebates, just the warranty will sell the vehicles.
I would also suggest no-haggle pricing. It worked for Saturn, it would work for all your divisions.
To be successful GM has to make all these moves. They aren’t difficult and they are simple to understand the reasoning behind them, but they must be done immediately!
Get cracking and surprise us-hopefully a pleasant surprise for a change.
The Chevy Colorado is horrible compared to the competition. Where is the power? 225hp for a 3.5L DOHC engine is pathetic. GET A 6-SPEED AUTO IN THESE TRUCKS ASAP.
Suggest that all the GM folks who post here keep in mind that few of the readers are GM salespersons and none of us are looking for any Cheer Leading. Direct that to your employees.
We stockholders want excellent product across the full range, together with a growing number of best-in-class vehicles. Nothing else will save the company.
I agree with John. Quit trying to “convince” us of anything via press releases, etc. You tried to do this with your failed attempts at convincing us a Holden made a suitable GTO. It wasn’t until almost 2 years later you finally confessed a Holden was used to get SOMETHING that could be called a GTO into production quickly. Frank Zappa got it right: ” Shut up and Play”…Make your once legendary cars speak for themselves, it won’t matter what the press says or does.
Then why can’t they sell Saabs?
GM’s marketing head-honcho, Mark LaNeve, has blessed us with a delightful piece on the Fastlane blog regarding news about some improved sales data but all he does is beg the question – given a true quality product to sell, why
Most of the sentiments on this line of comments is what I have been saying all year: stop making excuses for inferior product. In fact, shut up about the inferior product because prattling about it will just draw more attention to it. Save the hype for cars that deserve it, and I do think you know which cars those are. Doing this would help your quickly eroding credibility.
Colorado is a great pickup truck. I love mine. Colorado and Canyon are the number one selling mid-size trucks for 2005 because they’re the best. When it comes to cars though, the Chrysler 300C offers the most for the money and it is too bad that GM can’t build desirable cars like that.
Right now GM is a big target, so it’s easy to hit.
And while some of the criticism is fair, much of it is unfair. For example–I’ve driven the G6 on the street, and also on a test track, and I was very impressed in both places. The car drove and handled far better than the Camry or Accord–and it LOOKS better, too.
If a German or Japanese company had come up with a car that looked like the G6, everyone would call it hot–and it is–unique, beautiful lines, big green house, wonderful visibility.
I also found the interior well-designed and put together. Certainly better than the Camry (which is ugly inside and out). It’s sporty, it’s Pontiac.
As for Pontiac’s future, what it DOESN’T need are badge engineered cars like the Torrent (terrible name, too). The Equinox/Vue platform is good and those are good small SUVs that will sell even more as people come to their senses and buy fewer large SUVS. But if you’re going to do a Pontiac version–make it sporty. The Torrent is nice but not endowed with the Pontiac “Action” DNA.
WHAT PONTIAC NEEDS: More cars built on the new Solstice platform.
NEW FIREBIRD: Build it as the gorgeous Solstice coupe concept.
Take the CHEVY NODMAD concept and turn it into a little Mini-beating Solstice wagon.
Built out Pontiac’s lineup from the Solstice RWD platform. Then you’ll have a complete assortment of sporty, fun, small and fuel efficient cars.
Make Pontiac really about Action again–so the lineup is GTO, G6, and the Solstices. That’s what Pontiac needs to be–sporty, fun, beautiful.
Does he know something the rest of us don’t?
The biggest news story yesterday was the revelation that billionaire Kirk Kerkorian, who made a killing with Chrysler years ago – and tried to take over – has quietly bought 22 million shares of the ailing General Motors – and has offered to buy an add…
Mark,
I live in California and, with the exception of your trucks, you have a minimal presence in the cities. And now Nissan, Toyota, and Honda are starting to make big inroads in truck markets.
You guys need to make GREAT PRODUCTS AGAIN — no more push rod engines, no more bad interiors, no more investments in companies like Fiat, no blaming American auto workers, no more excuses…period.
You need to do what Nissan did and radically restructure your business. In order to do this, EVERYONE involved with GM needs to help: labor unions, retirees, executives, suppliers, dealers. You need to re-invent your company, making it customer driven, not a place where employees avoid risk-taking because they are worried about retirement. If you don’t do this, there are rogue investors gathering at your gates who will force you to.
The fact is that no one in my family has bought a GM car in over 20 years; I would be glad to do so once you make a truly competitive product. You are getting close with the new Cadillacs, but are not there yet (still bad interiors, more driving refinement needed).
I am rooting for GM but, like everyone, you need to help yourself out of this mess. Slash the number of divisions, create a culture of risk-taking, and build absolutely great product. Buy 500 Audi A4s, Honda Accords, and Nissan Muranos make your engineers, executives, bean counters to drive them. And then build vehicles that are better than these.
I agree with Steve, changing the names on your models so many times is uncalled for and is NOT seen in a positive light. I’m sure the new model is “so much better it warrants a new nameplate” – you’re basically telling us that the old model was so bad you want to get rid of the stigma. Some names, like the Cavalier, may have been good to drop because it was allowed to stagnate for 10 years…but the Grand Am? The name goes way back and has a rich history. Don’t throw it away for the silly “alpha-numeric high-tech the expensive brands are doing it so we should too” scheme.
And, PLEASE ditch that 4-speed automatic. You might be able to get away with pushrods, but pushrods and 4-speeds just doesn’t cut it.
Holden does make a suitable GTO. Matter of fact, it is the only RWD V8 coupe that GM has readily available. I don’t see what the problem is with this car. Oh, I am forgetting about that bland styling, or because it ain’t retro thought. Rather much have seen a GTO based on a related car from the 1960s and 1970s, than placing a bunch of GTO emblems on a V6 FWD coupe, or worse, sedan.
E.g., Dodge Charger, lol.
Matter of fact, the Mustang is nowhere near retro’d out as everybody would like to think. Never heard of many OHC or DOHC American muscle cars engines. The GTO still has a powerful large V8 for today’s standard. No turbo, no supercharger, all natural aspirated, and pulls 400 HP.
The history and the facts are there to see. GTO and Monaro are built with the same concept in mind. The Monaro inspired by the GTO. Now I can’t see any other automobile in GM that could make that connection, add the quality of the Holden compared to what GM would offer in its GMNA division, and now we’re understanding that GMNA has not reached the level of quality as the Holden division has for the money. Holden has done some really awesome work on the Monaro even if its an older platform; it still performs.
I agree totally with Steve G. Why in God’s creation do you change well known respectable Buick names. Lucerne is a Safeway dairy product. Go figure that one out. The LaSabre name is more appropriate.
Also, it’s all about product. Everyone of your new vehicles must be class leading, or they will continue to be heavily rebated, and retain poor residuals. The competition has 5-6spd automatics, and more refined powerplants. Why can’t GM offer them in mainstream vehicles.
Lastly, we need rwd family cars a.s.a.p. When will GM see the light and not have to play catch-up with the competition? Hopefully in my lifetime.
Mark,
Thanks for the article, but I gotta admit, as tired as you are of hearing only the negative about GM, we’re tired of hearing from GM all the tiniest factoids you can fine to prove you’re on the right path!
In a nutshell, citing statistics that show your BRAND NEW CARS have increased sales and reduced incentives is outrageous! Almost any redesigned car will have have the same results!
I’ve said it before: GM can not get is all right at once! If they get the styling right, the steering or handling is sub-par. If they get the interior close, their stylists went blind…
And ultimately, _most_ GM products will continue to NOT make my short list until GM stops making excuses as to why pushrods, etc are acceptable and build a fully competitive, price conscious V6 and 5 or 6 speed automatic.
I believe the people running GM are the right people, but it’s frustrating to be pulling for you, but to believe your new cars are *nice*, but still second-tier products.
GM Fires Back……..Again: Part Deux
Again, let me reiterate that I’m not a GM hater. I think the company has gotten a bad rap for the past few months and they must continually defend themselves against the fools in the automotive media. I’ve been doing…
I think a lot of what we’re seeing – and the primary reason for the intense frustration with GM – is that many, many people like GM. They want GM to succeed, despite the stumbles we see; I think GM’s fans are burying their faces in sadness just the same as the execs probably are!
We remember the ‘good ol’ days’ of GM, and see what the company can be. We remember (some only through our parents and the Dream Cruise!) when a Chevy bore no resemblance to a Pontiac and vice versa – each brand had its own personality! Now, though…they all look the same. GM is making an effort, but…I don’t know. It’s fairly maddening to see GM putting smashingly wonderful things on the road – the Corvette, the Malibu (not my style, but it’s a neat little car), and, we hope, the Solstice. But then we have the G6, which I can’t get excited about – like much of the rest of GM’s lineup. It’s bland, in short, and there isn’t much of a differentiation between the names! That’s what exasperates everyone, and probably explains a lot of the bad press – folks look at GM ‘back then’, and wonder what happened.
I wish GM the best of luck, but I’m not sure what my next vehicle will be. I think my ‘04 Monte Carlo is a terrific car, but I hate, hate, HATE the way the new one looks. The ‘Vette is out of my budget (*sigh*), and the Solstice rides far too low for Motown’s nasty roads. Sadly, sadly, I may commit sacrelige by getting a Solara or an RX-8; sharp, well-made, sophisticated, unique vehicles.
Unless I can find a ‘69 Camaro convertible.
Come on, gentlemen – please, calmly sit down, spread everything out on the table, and take a good, hard look. GM can absolutely turn this around – but it will mean doing risky stuff.
Instead of letting the circumstances change GM, why doesn’t GM try to change the circumstances – and the auto industry?
Actually I think GM has every right to comment on sales upticks here. The press has jumped on the negative bandwagon regarding GM. GM is in the process of revamping its models and engineering. You cant do it overnight. When Chrysler came out with the LH sedans, 1) it took years of complete engineering, and 2) they had quality problems the first 3 years of production b/c they were so new. GM is going at it slower than I like, but it takes time. Do you really think the G6 was going to go from Grand Am to Audi A6 in the first run at the model?
I have faith. Everybody who reads this blog should test drive a Cobalt LS sedan, then go test drive a Corolla. I think GM needs to take some drastic steps. I think the UAW better go to the table pronto before their options run out.
First, of all to call this “mining every blog and website for good news” is absurd. This was JD Power that put this out. Secondly, it is good news that GM cars are doing well. It seems that Mark’s point was, that despite the media critics, and whiners that continually post the same drivel on teh web, GM has several new products that are a success.
Fuel prices have made this a really tough business right now and its going to take a while for things to get sorted out.
I have owned a car from parctically every manufacturer on the planet, and I currently own two GM vehicles. They have been fantastic reliability-wise, but where you fall way behind the competition is the dealer experience… too much haggling over prices and service departments that refuse to fix anything until you bring it in 3 times for the same problem.
The most unreliable car I ever owned was an Acura TL, but I kept it for 2 years because it never seemed like a hassle to get it fixed. We all know GM’s got some product troubles, but your newest offerings are big improvements. But to keep people coming back, you have offer a pleasant experience after the purchase. I am reluctant to buy another GM product solely because of the hassle of the dealerships.
It’s open season for GM and the complaints are petty and ridiculous. The press sensationalizes everything by printing more editorials than facts and the public eats it up (just look at the many comments above). The ideal (which is completely impossible) would be to mask the identity of the vehicles and then get the verdict. Too bad it was not as simple as Coke vs. Pepsi.
Your products are better than they were, but they are not “there” yet. When they are, your marketing will need to focus on getting people to re-evaluate their preconcieved notions of American cars. This is probably one of the hardest things to do from a marketing standpoint.
Oh, and this blog was a great idea, but you are totally blowing it. There is no feedback to the comments, new topics every 3 days if we’re lucky, and the only people we ever hear from are Lutz and the marketing guy. Get some real employees on here – Engineers, designers, janitors, anybody with something to say.
The success for GM is not what GM does directly as building the cars as it is the dealers who have pushed the customers away.
Check the junkyards, there are far more offshore cars dying there then good old American ones.
The dealers once and for all must be made to treat the customers and cars with respect. I suggest you put some dealers out of business before they bury you.
The horror stories we all have in taking a car to a dealer and coming out with more problems then we went in with.
We know more about how to fix these cars then the people wrenching on them in the dealership.
GM does not need 1000’s of dealerships, rather fewer ones that assure the car over its lifetime is treated correctly.
Stop the 3 to 5 times in to get the same repair done, getting the car back to find someone eat their lunch in it or took it for a 50 mile joy ride.
Get people in the zoning offices that side with the customer and not the dealer.
Get people who answer the GM toll free support phones that know which end of a screwdriver to use and stop dealers from charging bloated prices in their parts dept.
Put some pride in your AMERICAN made models, seems your scared to promote a car being made here in the USA.
Get rid of the ugly models such as those holdens, and quit trying to sell cars that look NON American, we care less what Europe likes, we want American looks with American performance for it sure looks like GM wants to kill off American nameplates like Olds, or models like Camaro and sell us cars from cheap labor countries.
Ooh and if you really think I am buying a car that was made in China, forgetaboutit.
Mr. Lutz,
Even if GM had superior products, 10 year warranty, and excellent service (zero for 3), your success would be nil because of the dealerships.
I have been watching the GTO debacle and had to comment. Dealers initially put a markup on the 04′ GTO. Then in December were trying to unload them with $5k rebates. The build quality is there, the styling is eh, and the power/$ is more than nice. So what’s killing it besides leadtime? Dealers. If they are not killing it on price, they are simply not ordering cars from GM to sell. Dealers need to be owned by the manf. A dealers should not be able to get away with not ordering 05 GTO’s because they got burnt on 04’s. Fix the dealer problem and offer a decent warranty and you will be sucessful.
Advertising is laughable as well. I recently went to a SEMA type show in Harrisburg, PA. There was 1 GTO. No literature, no signs screaming 400 hp, no kiosk playing “The last Ride”, no literature to take home to drool over, nobody to talk to. You had one chick onstage next to a G6 trying to sell a car in the most competitive market. The Solstice at that point was a production vehicle, yet you couldn’t $^^&(& sit in it. You must be kidding!?!? Please advertise. Don’t advertise specific vehicles. Advertise all Pontiac products like you do with the Chevy car hauler commercial.
Jason
1998 Triple White RA Vert
Owned: 81 TA, 94 TA, 69 FB 400/400, 67′ FB 400/4 sp.
http://www.outlawpontiacdragseries.com
:Rant mode off:
It’s obvious this blog is to announce and promote new products, and __not__ offer anything about how GM is going to improve service and support of existing products. Ok, well and good and have fun!
Trouble is, Bob, you can hype the new products to death, but my GM reality is the car (a Malibu) that I am driving. It has improved over previous GM cars, but I cannot throw it away every year like you wish.
I am happy to pay GM money improving it (where are more advanced engines we might buy to replace those ancient pushrods?) and fixing it once warranty is up. But I expect GM and its dealers to properly support it by dealer service knowing the TSB’s, being well trained, and doing their job.
If instead you/GM would rather release half finished cars that the “independent business” dealers you value so much cannot fix, maybe I should sell my Junk GM stock and get in line for a Toyota like so many other Americans are doing.
Get the product right and consumers will buy. It really is simple. So why does GM have such a hard time with execution? Yes, the new vehicles are better than the ones they replace. The problem is that they are not yet class-leading. GM needs top-notch products today, not in the future.
Here is an idea – use the high-feature 3.6 V6 across all GM divisions. Much in the same way Nissan has with their award winning V6. I have heard that capacity is not there. No more excuses. Find a way to do it. Just think what the press would have said if the G6 had the 3.6 as the standard launch engine.
One last thing. Of all the GM vehicles in the last few years, the CTS is the one that all future offerings should be modeled after. Sales were higher than anticipated and have increased every year. Constant upgrades and improvements have made the CTS better year after year. Much in the way many foreign makes continually improve their vehicles.
The plan is simple – bring quality, innovative and class-leading products to the market today, not tomorrow. GM can no longer afford to keep saying “wait until…”. The time is now or there may not be a tomorrow for GM.
Hey GM,
On the next blog post, can you all address what GM’s strategy is for fixing the issues it’s facing?
It’s not like you all need to keep any corporate strategies secret at this point, what with the head of Toyota having offered to raise prices on his company’s cars just to take some of the pressure off GM.
The people who post here, positive or negative, are the ones who are dying for GM to succeed. I know I’m not the only one here that would drive to Detroit in a heartheat to work for GM for minimum wage if I thought I could help make GM a better company.
How about some straight up honesty about what GM is planning, and some responses to the comments? We’d love to see that you all are actually taking our thoughts into account.
Or is this just GM’s way of trying to keep the malcontents on the web from posting negative stuff about GM on other, more widely read, car forums (caranddriver.com, motortrend.com, autoweek.com)?
Please tell me you’re actually reading this stuff and thinking about what we’re saying.
Gary, I agree with you fully. Perhaps you have heard the comments I am about to make until from many different quarters. But I will retaliate again.
How did Cadillac CTS become a success? Within its first year of Launch, you guys went back, upgraded the engine, retuned the suspension and addressed the issues that came up when the car was launched. You forgot the interior though. And let it go its entire model life without interior upgrades, except the gauge cluster.
Here is what you need to do, to succeed with your car market. Being a car bluff, trust me, I know, and I will tell you, critic after critic, (your market gate keepers) will tell you this.
- You need DOHC VVT V6 engines, for your mid market sedans. I have read all your market information about the superiority of pushrods, they are lighter and more efficient than DOHC’s, but the market insist, that they are old tech. If you intend to keep pushrods, emphasize that they are technologically superior to DOHC’s
- GM comes of as gas guzzling, you need to address this issue now.. Obviously on a comparison basis GM has far more fuel efficient vehicles than other import manufacturers. The Market though thinks that you guzzle gas… Get out the word.
- You need base ecotecs that gives better mileage than both corolla and civic, Aveo is a disaster for GM. Why? Its smaller than Corolla, yet it gets less miles. How about a 1.8 or 1.6 liter ecotec with a 5 speed or 6 speeds for good mileage?
- Hybrid versions of your car and truck lines
- More gears. 4 Speeds simply are not cutting it here.
- Interiors. If you want to get out of inferior interior perceptions, you have to benchmark your interiors with cars above the class you compete against. For example G6 should be benchmarked against Acura TL. God job on the Minivans interiors.G6 and Malibu, STS and Equinox interiors need an immediate upgrade. Do not wait for 3 years. Do it now.
- Navigation. GM may not get it, but Navigation is hot these days. All your car lines should have Navigation, as an option next year. Trust me, it may not make sense, but if you have Navigation, you will sell your cars.
- Kill Rebates. They make people think your cars are crap.
- Lastly, keep your products secret until one month before launch. The problem with GM is that you wait for too long btw announcing a product and the time one can buy one. For example, we are tired of waiting for the Cobalt SS, and HHR.
- Saab AWD, match it against Audi. Make all Saab cars and SUV’s Turbo. No compromise. Otherwise Saab is going to die. Wait and see.
One last thing.
Your dealerships are really bad. Cadillac’s, next to Buicks next to Saabs, Hummers etc, in buildings built in the 60’s. and salesmen waiting to devour you. The customer at the gates
Chevy Dealerships are notoriously bad… Rebate marking on the windows like you see on the thrift stores. Terrible. Don’t you hold them to certain standards? All I see in Southern California Chevy dealerships are Monster trucks, You have to go inside and get horded by salesmen to see any cars…
They are time capsules from the 70’s…
You want to hear from GM employees, well I’m one. What’s wrong with the company? Redundant products, for one. G6 and Grand Prix, for example. A lack of modern trannys, although my 4-speed autos shift very smoothly and are quite reliable. Creating a buzz about a product that is not yet available (G6, Solstice) What’s right? We are at world class efficiencies in some assembly plants and very good in nearly all. Designs on new products are as good as anyone else’s (except Malibu). Quality is as good or better than nearly any manufacturer – why doesn’t anyone talk about the abysmal JD Power scores of Nissan’s new truck? And as we all know, there are a lot of retirees being taken care of. This is not a bad thing, what’s wrong with someone who’s been generating profits for a company for 30 plus years collecting his contractual due? Product is key to righting this ship, and I believe it is on the horizon.
On a positive note, at least the latest products are light years ahead of their predecessors in terms of design and quality. Please just update the powertrains and the sales experience! Pricing products correctly out of the box would help too. Good job on the HHR pricing though, it’s getting better.
All of you people who want to
bad mouth GM, why aren’t you
designing cars?
You seem to have all the answers.
I am a GM retiree and a dedicated GM employee and you
just watch. They will come out of this bigtime. In the meantime those purchasing foreign autos, where to you think all the profits are going to? Not in the US.
Are you guys/gals at GM really reading this stuff? If so PLEASE respond specifically to some comments here or people are going to get tired of this blog. We want to know if anybody is listening!
I agree with Steve G on the name changes. They stink. I don’t even like the Cadillac alphabet soup. Stop trying to copy everyone else.
I do like the G6 (not the name) and the Malibu is a good car. I get a solid 35 MPG highway with my 2.2L (Better than the Cobalt with the same engine) explain that one please. The Solstice looks promising, but again you blew it by not having it ready for this summer.
‘Detroit Auto News Network’
6 May 2005
In an effort to respond to the criticism over the GTO, Pontiac has announced the release of the all new 2+2 Catalina. The drag racing star of the early 1960s is all new, all powerful, full of style, and mean as ever.
The 2+2 Catalina is slated to be optioned as a 2 door coupe or a 4 door sedan. In an effort to boost sales the 2+2 Catalina will have the new 3.9 V6 and for those in the mood for a V8, there is slated to be a Super Duty displacement on demand V8; although rumors are the LS2 or even LS6 may find its way into the new 2+2 SD Catalina.
“disclaimer” This is a hint. Build it and they will come.
One can only dream……….
Mr. LaNeve:
Although I have no plans to buy a GM car, I’m still rooting for GM to succeed. For GM to fail would be a big letdown for the country that sent a man to the moon first.
That’s why it was encouraging to see the latest Consumer Reports say nice things about the Cadillac STS.
Here’s an idea, assuming that you haven’t thought about it already: Give that STS team a BIG bonus, find more people like them at GM, and give them the job of fixing GM’s high volume vehicles so they too can be the best in class.
I was in the market for a new Corvette. I bought a Nissan 350Z instead. Why? The dealers you have act like they are selling gold not cars. A simple thing as a test drive and no price gouging would have helped. Some tried such silly things as saying someone else is coming in for the car so I might hurry. Well, I drove by a month later and the same car was still there parked in the same place in the showroom. You have a nice looking car, but it seems like the dealers love them so much they don’t want to sell them. You had a chance to gain me back as a customer after the Lumina fiasco, but as usual your dealers blew it again. I hope these comments are helpful because I do want you to succeed, but I did not want to be a sacrifice in the process.
GM products are better than they were, but sorry, GM, not up to the best, and you know it.
I too would like GM to succeed, which is in part why after 25 years of foreign cars, I got an “american” car three times in a row. Each time my experience has been the same as others here – an improved car compared to earlier vsrsions, but abysmal dealers and service to the point that the next car will be foreign again.
I can accept, even like, a product that is not quite the best __if__ there is good support for it and the company making it is interested in thoughtful comments and participation as to how to make the product better.
So, GM, are you going to do something about the sales and service? Or just shove new products at us? Try looking at the whole car buying and owning experience and do something unique for a change!
This is with respect to the comment above by Edward -
“Obviously on a comparison basis GM has far more fuel efficient vehicles than other import manufacturers” -
Hello?? Come again??
I think you need to look at the facts as published by the Union of Concerned Scientists in their annual report every year on http://www.ucsusa.org – specifically the ‘Automaker Rankings 2004 : The Environmental Performance
of Car Companies’. This will tell you how much more (or rather, less) green GM vehicles actually are compared to other automakers.
What a lot of GM supporters like me would really like to see, is GM getting into the green game. Saturn’s EV-1, and the subsequent concepts – Hywire and Autonomy are the things GM should be rolling out (even at the cost of making a loss; ala the Prius) so as to get an instant image makeover.
What’s more, the minute you burn your own fingers researching such technology, you stand a better chance in the future than by simply buying Ballard’s fuel cell systems as a cheaper option. See what the top honchos at Honda say – they don’t want to buy from Ballard even though it’s cheaper – simply because they want proprietary control of whatever technologies they develop tomorrow.
Ultimately, it’s always about the next generation, and that generation is much more attuned to the various issues facing the planet, the environment and Nature’s inevitable backlash. Wake up and go green.
Vazir Fatehi
Bombay.
I think, in response to what you said, these things are important:
*I’m glad you’re judging your gains based on new models, which are real indicators where you’re headed.
*Feedback from owners is important-do you have a system that provides critical response from owners? Put a postcard in every glovebox and employ an administrator who aggregates high & low points for each car. Ask some open ended questions. Share the info with product managers and use as guidelines for the continual improvement that’s needed to keep the public interested in models past the first year. JD Power is fine as on source, but by time feedback gets to you, it’s been overly sanitized/filtered and is too far out time-wise to provide you with what you need to improve in the necessary timeframe.
*Long-term reliability, in terms of mileage, is important. Make each car last at least 200k miles. Not every owner will hold onto a car that long, but word gets out which brands last that long, and are coveted. Higher resale values will result, too, which is another plus for owners.
*Advertisements should include what technologies you use for more dynamic handling, such as testing your Caddy’s at that German test track, and which technologies you use to increase performance and gas usage on your engines, such as your current ohv engines that are using computer management of cams, intakes, etc. There are actually some people who like to know you put effort in, so they don’t assume that they’re buying a cosmetic reface.
*I’m also glad that you’re at least trying to lower your prices and diminish the cash-rebates. Many people don’t look further than sticker price, and I’ve heard/read from many sources that GM’s tend to be high before rebates. It will also put your models in the correct competition, not in a higher price class.
Thanks for keeping us updated, and good luck!
Regards,
Dave in NY
Customers who buy GM cars have to pay for their health insurance. GM assembly line workers, retirees and retirees famalies get it free. That’s the problem. If workers and retirees would be as generous to GM as GM has been to them, then there would be the $6 or $7 billion additional that is needed now for Research and Development to create product to bring back market share. So how about it employees, do you want to help save your company or not?
1. SOLID financially.
$40 billion cash $70 available credit
2. SOLID new product.
The Chevy HHR is the Chrysler 300 of the compact world and with a retail starting under $16 it will send shock waves through the industry.
***All Positive Posts everywhere for this vehicle and its price;););)
Hummer H3 will be like the original Grand Cherokee. We are going to see it everywhere fast and with a price starting under $30 it outprices even the Toureg.
Solstice under $20. How many sold in 41 sec.? It is not low volume with those numbers.
I’ll take all three.
3. SOLID future vehicle program.
Saturn with the Sky and Aura and a bigger crossover and Saab with the 9-6, 9-7 both will have a full line-up for the first time ever.
Too many others to mention but the ones I will watch are GMC Graphite and other crossovers and the Hybrid full size Yukon Suburban and Escalade. Bling bling and that ULS
;);)
5. SOLID growth internationally.
Cadillac and Chevy going global. This is an absolute phenomenon that the press has not presented a single story. All through Europe the Chevy and Cadillac brands are being launched. Nearly 200 countries Chevy will sell the Aveo and perhaps 6 other drop dead gorgeous Chevys made by Daewoo. A good investment for GM that the press does not talk about, no only Fiat.
Just a few short years ago they didn’t make right had drive versions. Now sales are exploding in the UK and around the world.
But you will not hear about this in the American Press.
Biased? Yes they are!!! Absolutely!!!
Hey GM,
You all might want to change the name of the “Request a Quote” function of your website to “Request unhelpful e-mails from a local GM dealer”.
I’m currently daydreaming about buying a new car sometime in the hopefully not-too-distant future. I think a Pontiac GTO, minus the hoodscoops, badges, and spoiler, in grey or silver, would be a perfect sleeper vehicle, as it looks like a rental, but does 150+.
Unfortunately, I can’t get a dealer to e-mail me a realistic quote.
No wonder GM’s market share is shrinking. It’s hard to buy a product from a retailer who won’t tell you the best price on his product.
IT’S A PONTIAC DEALERSHIP FOR PETE’S SAKE, NOT A BAZAAR OR A FLEA MARKET! YOU ALL ARE SUPPOSED TO BE PROFESSIONAL CAR SALESPEOPLE, AND YOU’RE ACTING LIKE YOU’RE SELLING HUBCAPS AT THE LOCAL SWAP MEET.
Just tell me how much it costs and let me decide whether or not I want it, without expecting me to be dumb enough to pay over MSRP.
Thanks for your attention to this matter. I’d find it much easier to consider buying a GM car if the dealers would consider giving me a price quote.
Another way to get real customer feedback is, like Dave suggested, put a survey card or send a survey form to new buyers.
To expand on that, let customers say yay/nay in being contacted/participating in yearly or bi-yearly survey or (gasp….) long term test feedback. For those who say yay, let them bring the car to a local GM test/training facillity for examination and review.
There do exist people that are happy to help you make your cars better, and give you their time to do so: MAKE USE OF THEM !!
Is it just me, or do the taillamps on the G6 sedan, Cobalt sedan and Lacross all look the same (you can add the Saturn Ion and the new 2006 Impala). To all you saps who bought a Toyota, reportedly they made $10 billion in profits, guess what, you paid $3,000 too much. Funny how other auto makers can get by on a billion or so in profits.
Why can’t I use my GM Gold Card points on a Saab?
I want a 9-3 covertible, but am about to get the Audi A4 convertible instead.
I have half a mind to attend this year’s shareholder’s meeting and I have only one thing to say to the board:
Doesn’t the GM of the past 25-30 years remind you of almost every other floundering company that is buried, gone or only a shell of its former self? A good example is AT&T, which threw money at acquisition after acquisition (cable, NCR, cellular … can you say Fiat?). More examples of floundering companies … Kmart, Woolworth, Montgomery Ward, Ames, LTV Steel …. should I go on? GM is doing some things right, but overall GM still reminds me of each and every one of these FAILURES.
I beleive there is something that is structurally wrong with GM. There is simply no other explanation for why it’s taken 25 years, 40% less market share, the death of Oldsmobile, and GM still has a sad line-up of cars.
GM simply builds cars that don’t justify the price you are charging for them. For example, I think the Pontiac G6 is a nice looking car. But why would I pay $23,000 for a G6 when for $19,000 I can get Honda Accord with a 4 cylinder that handles better and has more pep! C’mon guys, wake up!!! The reason your cars don’t sell unless you give $5,000 worth of incentives is because that Pontiac G6 is only worth about $18,000 … not $23,000!
I don’t think you can blame it on the employees and their benefits. If the employees don’t get it, then management will (can you say multi-million dollar stock options?) Blame it on the same do-do’s that blew $5 billion on Fiat. I wonder how many new engine/transmission programs the $5 bil would have funded?
A little item for those toiling in the PR Mines for nuggets of good news about GM.
http://www.intellichoice.com/best_values/bovy/year/2005/
GM takes the Intellichoice awards for Best Overall Value – Full Size Van (GMC Savana, Chevy Express), and Best Overall Value – 1/2 ton, 3/4 ton, and 1 ton Pickups (Chevy Silverado 1500, 2500, and 3500).
Now sure, it would have been cool to see GM represented in any of the Car, or even any of the SUV classes, but I’m trying to keep this post a positive one.
Way to make those full-size vans and pickups GM!
We had own GM vehicles since 1973. On our 2004 Envoy it does not have enough cup holders or storage space for stuff. Why not build cup/bottle holders into the side door panels. The center console, move the gear shift lever to the colum that would give more storage space for stuff
I have own GM Vehicles since 1973.Curretly I drive 45,000 miles a year. My 1998 Pontiac Bonnelviile had some good features that are not on my 2003 Pontiac – cup holders built into the door panels and hand grasp indent to help close the trunk lid.
I find it amazing how some of you on this blog are so uninformed on GM product.
Most of you have probably never even driven a G6, but insist that if Consumer Reports (such a joke of a magazine) says the G6 is bad, you agree too. Grow up, go test drive the new GM products FOR YOURSELF. You may be surprised.
As for best in class. The new Cobalt is. Oh thats right, it is just as good or better than the Corolla. Go test drive one of those too.
I also find it odd that some people say GM’s products are bland. Do you get that from the biased medai too? Take a look at Toyota products. Then go to your Chevrolet dealer and look at the products. Then tell me which is more bland.
That is a problem with the automotive market. No one can look for themselves. They have to turn to biased media outlets (such as Consumer Reports) and suck up to their every word.
I hate to beat a dead horse, but I still think that the silver GM badges are a bad idea. BTW, I have seen them on 2 new GM models, the G6 coupe (craps up the nice coupe silhouette) and the Hummer H3. The Hummer badge is particularly bad because the silver GM square is placed right next to a beautifully styled H3 symbol on the front doors, which serves to distract from the main brand identifier and looks like a silver zit. Warm up your heat guns, these poorly conceived squares are comin’ off!
Making an argument for the badges however, you also can make a case for why this is a bad marketing idea. Assuming that the silver square GM badging idea is good from a marketing standpoint (it isn’t, but…) – any marketing boob with a BS business degree knows that to get a viable public response the badge would need to be seen by customers frequently and be well recognized.
Given that GM should be trying to get eyeballs with this blatant commercialism, is the bodyside / front door a great place for badge placement? Answer : NO!
a) we have already established its bad from a styling standpoint as it will likely screw up the design lines.
b) No one will see it, because when you are stuck in traffic all you see is the rear end of the vehicle in front of you!!!! (not the bodyside, you advertising in the Tubes!!!)
A better (still bad) place to put this badge would be on the decklid or hatch of the vehicle. That way anyone stuck in traffic would be forced to look at it on their bumper-to-bumper commute. The fact that marketing are placing it low on the vehicle and on the bodysides is proof that they themselves think this is a DUMB idea. Putting the badge on the rear would also cut material and labor cost in half (only one per vehicle – YAY purchasing cost reductions, give yourselves a gold star!).
After reading some of the comments here, there is a high level of denial going on — especially amongst stalwart GM supporters. Many times, in order to change things, you need to be really honest about how bad things are. Yes, it is called facing reality. Nissan did and they turned things around. Rover didn’t and they went bankrupt. You can quibble about the names of GM cars, advertising, and other secondary things. But in the auto business it all comes down to PRODUCT, PRODUCT, PRODUCT.
Over twenty years ago, I remember reading a quote from a GM executive who called foreign cars “over-engineered”. After driving most GM cars today, I feel they are decidely under-engineered and under-designed. Americans aren’t stupid, and that is why they are voting with their wallets.
I support the GM executives in restructuring their company; but everyone must help and sacrifice — workers, execs, suppliers, banks, investors. The sooner GM faces the fact they haven’t made a class-leading family car since the Cutlass, the sooner they can truly build. Stop being so inward looking, GM folks — with rationalizations for push-rod engines, etc. Simply build a car that most Americans would prefer to a Camry or Accord — without resorting to rebates or generous financing; if you can do that, you do anything.
I am cheering for you, GM.
You don’t need a GM badge on the cars, just mention GM in your ads.
For the new Chevy Impala for example:
” Get a little all American attitude from The General”
I see car mags referring to GM as “The General”. I think you should incorporate that in your ads.
To NSAP
I found your remarks quite interesting, since I have been following CR for quite some time. Here’s my take on this:
CR is not unbiased; their survey comes from their own subscribers; their staff is composed of 19 people for cars ratings: 19 individuals represent the true opinions of many millions peoples? I doubt it
- The sample of US manufacturer is under-represented. For ex GM represents 15% of the total CR’s database, which is way lower than their actual market share. I suspect this Asian side is over-represented .
- CR had some value in the 1980’s but if you have followed their last 25 years ratings, you will come to the conclusion that you will be very inclined to buy Toyota or Honda now.
-To be unbiased, they would need to send their questionnaires at random, to a population not influenced by their ratings. You can’t trust a survey send by a company with this kind of strong “penchant” for non-us vehicles.It is like doing a survey on President Bush in the Iraki Herald, if you get my drift.
-The reason people buy CR recommended cars is most often resale value. In fact, CR determine resale value by their ratings. They dictate the resale value to the market. For ex 40% of Honda buyers read Consumer Reports to secur their choice.
- Look at Edmunds .com and look at the Honda problems and solutions forum , you see over 10,000 postings. It would take many US built (not Transplant) to reach this level.
- Honda and Toyota customers have a very different attitude toward the manufacturer. They tend to downplay the problems. You can see this in the tone of their remarks in Edmunds, and also, this is why they don,t tell CR about it. They say to themselves; I was not lucky, but it is fixed under warranty. Toyota for ex has problems with sludge in the engine, rattles in their Corollas, hesitation with the Camry, which are no better or worse than the rest of the Car cies. Honda has problems with rattles, transmission, suspension etc. Look at the forums in Edmunds, where the customers remarks are not shielded by an editor.
-Because CR subscribers have been told fo 30 years that Honda , Toyota, Mazda, etc has been above average, when they have a problem, they don’t bother to send their questionnaires back to CR, or they send it not mentionning any problems. Why would they? That would be against their own religion, and would deteriorate the resale value of their acquisitions. Look at the april CR ,Toyota for ex; you can’t find a trace about the engine problems in the reliability studies; the sludge and hesitation problems are widely known; they still score much better than average in this engine category.
- The opposite is true for US cie; they have been told for so many years that their vehicles were inferior, the first problem the owner has and. bingo, they told me so.
In conclusion, based on any serious statistical evidence, I have to say that CR is not unbiased. They reflect an opinion based on a corrupted database that wil get worse and worse, even with the progress any car company (non asian) could make. What is frightening is that their influence is colossal, their comments often demeaning , subjective. By doing this, they contribute to the destruction of their own country, loss of employement in the US, and also , the exportation of jobs (don’t try to tell me about the few transplant Toyota has in US; this is PR move to circumvent Trade deficit issues or quotas).
Thy also make money with their books, magazines, Auto Guides , so their mission is not humanitarian. They don’t accept advertisement, true, but get their money from their subscribers. Some notorious religious movements and sects are like this also.
Stratojet
I see so many examples of GM not putting an all out effort into their vehicles. I have already mentioned many of them.
For instance-what is with the cut lines on the Cobalt? From the front fender there is a diagonal line from the headlight down, whereas a straight vertical line would have looked better.
It’s even worse at the back with that diagonal line coming down instead of the more traditional vertical line.
They both make the car look very odd.
I will mention the electric steering once more, which just got panned in consumer reports for lack of feel and an artifical assist that can change in the middle of a corner. I know CP sucks but I have heard this mentioned in every review I have read about the Cobalt, G6, Malibu, VUE and Equinox. I wonder how much more positive the reviews would have been all around if it weren’t for the steering. Car mags have little patience with engineering stupidity. GET RID OF THE ELECTRIC STEERING!
Do not wait until the next model year to make changes, however small.
How can the Impala still have the same dashboard it had since the beginning? No way would something that ugly survive in a Honda, Toyota, or Nissan all this time. And the steering wheel!? Come one, how can that still be in there?
Face it, you guys are just not on the ball. You don’t have the talent, the urgency, the leadership, to be number 1.
Until I see signs otherwise, GM is not going to make it with the talent they have.
It saddens me, but when I read about GM cutting the Zeta Platform for badly needed RWD Vehicles so it can concentrate instead on large trucks and SUVs, which are declining in popularity, it makes me wonder if GM deserves to survive.
You can get positive publicity immediately if you announce that the Zeta platform is being revived immediately.
I won’t hold my breath, though. I am very close to abandoning my favorite car company. I am sick and tired of having to defend GM from its incompetence.
WAKE UP GM!
Chrysler put their pentastar on the lower rear part of the right front fender only in the sixties and seventies and I thought that was a neat little deal. I don’t like badging and lettering on doors though. I took the “COLORADO” letters off my Chevy Colorado and it looks nicer.
I got the idea from reading the coloradofans.com site. Lots of young guys gushing loads of praise and enthusiasm for their Colorados and Canyons at that site.
Well, as the saying goes “you can’t fall off the floor.”
I will add my list to the rest…
— DUMP the rebates. Assuming that 1/2 the cars sold would be purchased without rebates, the ones that sell DUE to rebates are costing twice as much. Here’s how. Customer “A” loves the Envoy and comes in to buy it. To his surprise he is getting $4K back that he didn’t ask for. Customer “B” is driven to the dealer and buys the Envoy due to the rebates… he also gets $4K back. You are spending $8K for this buyer!
— SHUT UP ABOUT NEGATIVE PRESS… you sound like Conservatives who complain about liberal media. Look in the mirror. Stock is not falling and bonds are not junk because of the media… it is because of your products.
— NEW RULES: 5 speeds only. No more pushrods after 2007.
— Numbers and intials are great. If you ask someone what they drive and they say “Malibu” or “Accord” the corporate name is not mentioned. Owners of CTSs tell others it is a Caddilac, the name you want mentioned.
— Match the 10 yr warantees of Hyundai and others. Does Hyundi have more faith in their products then you do? Seems that way.
— Even for people who know nothing about cars, a V6 with 200HP (or less) is no big deal.
I want to like GM but am so tired of the same old rental car aura. With the exception of Cadillac and Corvette, it’s ho-hum. Seems you still don’t understand that PRODUCT, not marketing, is what matters. Solstice looks like Grand Prix. Impala is econobox. G-6 says “Avis”. New big-snout vans (Montana, Saturn) embarrassingly butt-ugly with new nose tacked on old body. Even the GTO is way too bland. And on and on. Whatever…
Mark,
Always good to hear the good news. Let’s keep it rolling.
Here’s an idea.
Give direct GM employees one year lease deals on new products. Pretty simple eh?
With this new program, GM employees are always driving new GM products. This program creates good turnover, keeps the plants running, the employees very happy, the dealers have excellent return sales and everyone wins. It would be excellent (mostly free) advertising also. GM should fully support a program like this to make sure your direct employees are driving brand new GM products and using word-of-mouth promoting them to neighbors, friends and relatives.
Thanks for listening.
Could someone clarify the worthiness of hybrids? I recently read an article at msn.com, “The Costly Secrets of Hybrid Cars” that indicated the cost savings involved with purchasing some of the new hybrids could take up to 8 years to recoup. I also listened to “Car Talk” one day and heard them tell a consumer NOT to by a hybrid since she was driving a huge amount of highway miles daily. I’m a bit confused on this? Does this have anything to do with GM focusing more on hydrogens than hybrids?
Okay,
I have a hard time understanding why GM refuses to make rear wheel drive auto’s. Why is the focus going to be placed on more SUV’s and Trucks. Can’ you understand that the demand for these is shifting? I am only hoping that it is being developed secretly, and the return of the Chevelle will happen. Why does GM insist on products that are already out there. Has anyone at GM noticed how popular the 94-96 Impala is?? People love those cars! Why can’t you have an answer for the Crown Vic again, or better yet, the 300C?? Pontiac needs AWD, Chevy needs some RWD, and the new cars that are out are great. Just do me a favor, and don’t revisit RWD at a later date when that is what people want. Also, if you want a home run, build a full size truck that costs the same, but get’s 35mpg highway without having to pay extra…
Am I the only one who thinks all this talk about the death of the SUV is a little premature? I own two full size SUVs and will be looking to replace both of them as soon as there is something in the market worth buying. In the next year or two I will probably be buying a new Suburban and a new Avalanche. I think product cycles may be partly to blame for declining SUV sales. I was happy to hear GM was pushing up the launch of the new trucks and SUVs – with my needs for passenger space and towing, I have no use for a car, be it FWD or RWD. At least until my kids are grown.
The public’s perception of GM’s powertrains is not very favorable, and that has to change. People think of GM as a maker of old, ancient technology pushrods. What to do?
Heavily promote the newer engines. The upcoming 2.4L VVT DOHC ecotec for example, the DOHC high feature V6’s. The 4.2L inline 6 truck engines. Highlight these powerplants in your ads. Yes, GM does sell many pushrod engines, but most people think GM only sells pushrods, and does not have the ability to even make an over-head cam motor.
Also, advertise the technology in the engines. The DOD system of the V8’s, new technologies in the pushrod V6’s (upcoming VVT, DOD, etc). Tell people these are not the same old pushrod their father had in their 1980 Grand Prix, but much better, more improved engines.
Transmissions: Get the new 6 speed auto into cars ASAP. This should be a huge priority. Then advertise the heck out of it. Since I have not even seen it mentioned in this thread, I have a feeling most people have no idea that it is in the works. Just do it. Also, advertise the 5 speeds you do have (such as in the Equinox) and consider buying more 5 speed Aisin’s for other cars, such as the G6.
Finally, keep improving the products with short life cycles. Try to get some of your mainstream models on 4 year cycles to keep them fresh and accelerate the pace at which you get their improvements up to the rest of the market. For example, the Buick Century had no significant changes from 1997 to 2005. Why? By 2001 it was already stale in the market. If it were on a 4 year schedule, the LaCrosse would have been new in 2001, and you would have an even newer, better car than the LaCrosse on the market this year. With quicker redesigns, you will keep your products fresh, stay away from higher rebates at the end of their model runs, and make quicker improvements to materials and designs.
Oh, and toss out the Ion cyclopse dashboard. That one car has virtually destroyed the whole division. A Cobalt clone would sell better.
Quote from Motor Trend about the Equinox:
>This is a tricky choice to explain. Like the beauty-contest winner whose smile reveals a particle of food in her teeth, the Equinox is blessed with prodigious charm and grace–but there’s an aspect of it that causes you to roll your eyes.
The bit of spinach stuck between the Equinox’s front teeth is its electrically assisted steering. It’s hard to recall a steering system with less feedback, a slower ratio, or more over-assisted effort. It’s so off-putting that it threatens to detract from any of the Equinox’s other driving qualities, a shame considering these include a competent 9.1-second 0-to-60-mph time, emergency-stopping distances that better those of the Escape or Santa Fe, and a nicely sensitive brake pedal. But the Equinox’s strongest appeal really isn’t about performance at all; it’s the repeated bull’s-eyes it tallies in design and styling.
I don’t quite understand how so many analysts and journalists think that the solution to GM’s financial and market share problems is to cut “divisions.” Do these people actually have P and L statements for every sales division or marque? Put another way, how does anyone but GM itself know whether or not Buick is profitable? I really like the new LaCrosse – the focus on quiet reminds me of some very nice rides as a kid in many a Oldsmobile and Buick. The only thing that might keep this import buyer away would be the lower resale values.
Someone mentioned about GM presence in California. It is true that you hardly hear anyone shopping in a GM dealer when they go car (not SUV) shopping. Part of the problem of course is the historical mistakes of the company in ignoring California. But I also have problem with consumers in this state. For instance, I see more and more Hyundai’s and Kia’s in the streets. In fact, the sales data for both car companies are way up these days. I don’t believe any of these Korean companies have historically been associated with producing quality cars. Only recently Hyundai got good ranking in JD Powers. But so all the cars from Detroit have significantly improved their quality lately. Then why is that California consumers are attracted back to Hyundai and Kia ranks while totally ignoring the cars from GM and Ford? It almost looks like the car shoppers in California have totally blocked their mind about buying a domestic car. I find this rather disturbing.
According to a recent Businessweek article, GM spends “$7 billion for capital spending and research and development last year, vs. $15.3 billion for Toyota. The portion of that spent in North America gets spread over GM’s 89 auto models and eight divisions, compared with Toyota’s 26 nameplates in three divisions.”
Given that disparity, I don’t know how GM is going turn this situation around without cutting divisions. Frankly, your mult-divisional strategy was relevant in the 1950’s but is hopelessly outdated today, when there is a multitude of new foreign car brands in the U.S. You need to be investing in product, not for separate sheetmetal, dealer support, and advertising campaigns for what, in many cases, is the same car underneath. Not so smart in 2005. Moreover, in the last 10 years or so, you have been selling many of your cars (not trucks)to more price-conscious American consumers, who, are targeted increasingly by low-cost Korean and (soon-to-be Chinese manufacturers). So you need to move up the value chain and fast!
Finally, in reading the above blog entries, I am amazed by the consistency of the feedback by readers: get better interiors, develop more OHC engines, design beautiful cars, add modern transmissions, and develop refined driving cars. You need to beat the next Accord from Honda, not merely develop a car that is “competitive” with this model. And everyone at GM — workers, unions, execs, engineers, dealers, designers — needs to stop the internecine fighting and do this today!
I agree with Chris on the SUV’s. I would much rather have my SUV on my family vacation than a sedan. All these articles trying to kill the SUV market with PC ideas of fuel efficient sedans must take airplanes to all their vacation desitnations!
How would YOU blog on bad news?
Readers are hammering GM marketing executive Mark LaNeve at the GM FastLane blog for talking about a bit of good news from JD Power during a week of very bad news.
I just read about GM’s impending deal with DCX to jointly develop a hybrid system. It’d be nice to get someone on here to discuss your alternate-fuels strategy… Personally, I think working with DCX is a smart move, since you will have to invest far less money. Hybrid is a lame-duck technology – so much time and energy being put into their design, but what’s the end-game? Better electric cars? I just don’t see electric cars as our future. Your research with fuel cells could pay big dividends if you can weather this hybrid storm, and splitting development costs with Daimler gives you far less exposure than someone like Toyota. I’d like to hear other people’s thoughts on hybrids, because I feel like I’m the only one who thinks they’re a waste of time.
The above comments about GM needing 6 speed automatics and overhead cam engines is silly. I bought into that when I was 12 and thought that everything Car and Driver said was gospel. Now, as a 30-something I appreciate low maintenance costs, smoothness, room for the kids and quiet (whenever I can get it:). GM should make promote the advantages of its OHV technology and promote the Hydramatic name more. I for one don’t believe more than 4 speeds are necessary in an automatic nor 5 in a manual. Keep improving your styling. Keep honing the 4 channel strategy in North America. Eliminate models or trims that don’t fit the marque’s mission. Do these things and GM can prosper.
I sincerely worry about your long-term prospects, and I’ll be the first to admit I don’t have all of the answers given how much trouble you guys are in. But the points below are a good start, since I can’t see how you can possibly make it much longer if you continue to disregard them:
KEEPING IT FRESH: You’ve gotta STOP trying to sell the same model for seven or eight years with no significant changes, such as the last Impala (7 years) or the last Cavalier (11 years). I know it’s very expensive to introduce new generations of models, but when the Japanese renew their lineups every four or five years why would ANYONE consider your offerings once they get stale (especially since they’ve got the “crude & outdated” reputation already)?
By the way, you’ve GOT to reach a lot further when you do revamp a model; from where I sit your new Cobalt is as good or just a little better than the Honda Civic, which has already been on sale since 2001 and is just about to get a revamp — after a five year product cycle. You’ve got to stop thinking “Is this as good as the competition”? and start thinking “How can we do BETTER than the competition” since the competition will have moved on to its next generation by the time you bring your new model out.
ENGINES: Why is it that Buick could build a little gem of an engine in the early ’60’s, an aluminum V8, then switch to cast iron (to save money) and lop off two cylinders (to save money) and more than FORTY years later STILL be making that same basic engine?? Why does GM STILL cling to pushrod engines in most of their mainstream cars when the market has clearly swung over to OHC designs? Yes, we’ve heard all of the catch phrases: simpler, quieter, better torque, lower engine height – what they never say is the REAL reason; that it’s CHEAPER. Why not take it all the way and go back to FLATHEAD engines? The same catch phrases still apply versus the OHVs. The point is, the buying public is deciding they simply won’t have pushrod engines anymore; the same way that three-speed automatics finally became unsalable versus four-speed autos. (that’s a subject for another time).
GM needs to drop most of their pushrod engines post haste; either by converting their existing designs to OHC (it has been done by other companies) or by expanding production of the OHC’s they already make. Not enough production capacity? That’s a MANAGEMENT decision; either expand the production facilities or switch the factories making pushrod engines over to the new engines.
INTERIORS: It wasn’t THAT long ago that when I bought a red car I could get a red interior, or a blue car with a blue interior. Would it REALLY cost that much extra to offer three or four interior color choices, especially when all of the other companies have gone pretty much to either grey or beige only?
Speaking of grey or beige, the person who designs the interiors for the medium and lower-priced cars should be working for McDonalds instead of GM. Not only do the interiors evoke memories of Eastern Bloc cars, the greys and beiges you use look downright mousy. Look at the Mazda 6, the new VW Golf or even the Suzuki Verona; if you must use so much plastic in the dashboard and door panels, it wouldn’t kill you to use a little contrast in the color of the plastics. And PLEASE, there is NO excuse for not having a tachometer as part of the standard instrumentation, whether it’s a Cobalt or an Impala. Leaving the tach off only makes your product look like a cheap rental car, and costs you far more in first impressions than the three or four dollars per vehicle you save by doing without it.
PRICING: It seems that you intentionally overprice your cars; knowing full well that you’ll have to start offering rebates 90 days later. All this does is create a self-fulfilling prophecy, as buyers know not to take any of your new offerings seriously until 3-6 months later when the rebates kick in. In the meantime, just when you could use some sales momentum the most, the only people who actually buy under the inflated stickers are the chumps.
Wouldn’t it be wiser to price your cars realistically right from the start, when you could advertise what a good value it actually is, instead of overpricing the cars and then having to give $4000 rebates within the first 6 months when nobody bites at the higher prices? Case in point: the Pontiac G6, which is actually a fairly decent value now that the real price has been established. It should’ve NEVER have been priced above the 4-cylinder Accord, which is its real competition. Remember, the price of anything isn’t set by the manufacturer or dealer — it’s set by the customer.
Also; when you do have a new car on the way, do NOT show it off at the car shows two full years before you actually start producing it. Every time you have some hot new car on the way you show it SO early that by the time you get it to market it’s stale or else the buying public has gotten tired of waiting for it. This is exactly what happened to Ford’s Thunderbird; now it looks like the same thing may happen to the Pontiac Solstice. I wouldn’t start publicizing anything more than 60 days before introduction, tops.
Remember the G6? You got a gold mine of publicity thanks to Oprah’s show; then what happened when all of Oprah’s viewers actually went down to the Pontiac dealer to see it in the flesh? Right, they got a good look at the cheesy old Grand Am and maybe some advance publicity flyers of the G6; which was obscenely sticker-priced at intro time anyway. GREAT way to lose the bounce.
FINALLY: ENOUGH with the whining about your legacy costs. You could’ve taken a strike and gotten your costs under some semblance of control the last time your labor contract was up for renewal; but instead you people were more likely thinking about how you wouldn’t get your yearly bonuses if there was a strike instead of thinking of the health of the company. You CHOSE to get stuck with this contract, just like you chose to buy into Fiat a few years ago and then had to pay up all over again just to get out of the deal. What were you thinking in either case? Is management like THIS what you get stock options for??
I turn 49 this year. During these years I have seen GM’s future in jeapordy twice. Back in the 1960’s there was talk of breaking GM up because it’s dominance of the market was bordering on a monopoly. Today the winds have changed to the point that many believe GM can’t compete and it’s share of the market continues to erode. It is not just a commentary on GM but, the US economy as a whole. It seems like we can the statement, “what’s good for GM is good for the country” still holds true.
There are two good books dealing with what (and i can’t believe I am writing these words) the crisis GM faces today. One is “American Motors the Last of the Independents” and “The Fall of the Packard Motor Car Company”. Back in the early 1950’s Packard was still one of the largest 100 companies and hardly anyone thought it could cease to exist. Reading it again during this time, it is like looking inside what the GM management team must be experiencing as they try to right the once mighty ship.
Now, the jest of this post. If you read either of the above mentioned books something will stand out that is going on today. This is the role that the press played then and is playing today. As soon as they get a target in their radar screen they beat it to death. They hypothesize, second guess, over-exaggerate and keep at it until the brand or company gets an ill-earned loser status that has devestating effects.
If these self-appointed “experts” know so much, why aren’t they running a car company? They are like the fat couch potatos who sit around the bar and analyze every play a team makes when they could not even run around the parking lot without getting winded at best.
Who knows what the future holds. My point is give Management some breathing room to do their job in the boardroom and not spend so much time trying to put out arsen fires in the press.
GM needs to fix its health care NOW. The Unions are fighting themselves out of jobs because they demand too much. Cherys are on their way in 2007 or 2008. Toyota, and Nissan are posting the highest sales. You can design the best car, but your bottom line is still higher. Get me a cheaper car I can sell, or a better car at the same price as the foreign ones.
GM’s market share problems come from the lack of styling and power/drive train options. The GM minivans are a good example. GM never made a good stylish van that could compete with the minivan leaders Chrysler and Honda. Now you have this redesigned thing with a duckbill nose that really doesn’t look much different from the old vans. Come out with something to compete with the leaders, or pack it in. The best selling vehicles are the best looking, like the Trailblazer and the Corvette. The trucks sell only because Chevy trucks are good and have great power options. Buick cars all look alike and all have 4 doors; what ever happened to the Riviera, couldn’t the designers come up with something nice that would turn heads again like the 79-85 or the 69 Riv? Why get rid of cars that were once great, only to get the bad hand at redesigning? If GM cancels more cars or divisions based on bad designs keeping cars from selling, the revenue base will be reduced, and the company won’t make the capital to pay its debts, rendering it bankrupt.
Bottom line, get better designers so that all of the products have an equal chance of selling. Just think where Oldsmobile would be if they came out with a Vista Cruiser minivan that was competitively styled with the Town and Country, the Oddessy or the Seinna, and had a V-8.
Blog on the News – Both Good and Bad
Haas MS
Doug: “Who knows what the future holds. My point is give Management some breathing room to do their job in the boardroom and not spend so much time trying to put out arsen fires in the press.”
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Doug, GM has had 25 or 30 years to right this ship and they still can’t get it right. GM absolutely does some things right, but overall they still have a lousy line-up of cars and they beat the cars they do have to death before they refresh them.
GM needs to have a policy of no more than 5 years before a model change. GM doesn’t necessarily need to be making the sexiest automobiles in the world, but they do need to be making cars that are attractive and provide a superior driving experience. From what I see, they aren’t doing this yet.
Someone hit it on the head previously regarding the Pontiac GTO. It is actually the dealers dragging this “Great” car down. Take a look in the Detroit metro Pontiac car dealer ads (TV & Print) and I will give you $100 if you find one Pontiac Dealer even promoting & even mentioning/showing the GTO. This is a shame. They need get off their butts to start selling!
As a previous owner of a 67/68 GTO and a current owner of an 04 (and a real gear head) I can attest to the new GTO’s performance advantage to anything out there in the price range. To anyone who would like to bash the car, I would politely ask that you visit your local Pontac store (even tho they don’t advertise the car but yes they carry the model) and take one for a serious test drive. Find some “Twisties” and a nice 1/4 mile test track and yes, make sure the Pontiac sales person is firmly planted in the passenger seat so that they get a dose of what the car is capable of. This will accomplish two things: #1 You will never bash the car again & may even buy it and #2. That Pontiac sales person may get the rolladex out and start selling the car!!
PS: Thank you Mr. Lutz for bringing the car over!
Mike
I have an ‘02 Z06, would be interested in an ‘05 or ‘06 but from all the info I have been reading the new one will be 65-70,000. Are you trying to run out your loyal fans, and only appeal to the Porsche type snobs?
Next question are you going to put a USA built engine in the Equinox, or will I have to go to the competition to get what I desire. I want an all USA built vehicle.
Are you going to continue outsourcing jobs to our sworn enemies in China, or are you going to bring back and keep jobs in America?
We need American cars and trucks built by Americans for Americans.
I agree. A Chinese Engine is a disgrace. What, you don’t make enough V6’s in the US already?
First time to this site…but after reading I also have to vent…..
The new GTO has the performance to back up its heritage, and in regards to styling, the 64s were not “reach out and grab ya!” either, but PONTIAC did improve its appearance, in the years to follow. I like the ’04s and I really like the ’05s(how few I have seen). I feel that advertising is the key, yea “drifting” is cool to watch, but, the GTO buyers are mostly from a different era(street racing, cruising and legit NHRA drag racing),heck, get it in NASCAR and it would be a success, show them on TV for crying outloud. I can remember seeing 1 commercial where the GTO leaves the traffic light and bits and pieces of the car in front of it was spit all over the road, I SAW IT ONCE, WTF???? That was inspiring, it took 3-6 months for my local dealer to get one, and they have yet to get an 05.
All I can say is take a lesson from FORD, build it cheaper with out all the bells and whistles, advertise the heck out of it, and get it on the road where you can see it!! I can drive 30 minutes to work and see, atleast 2 new stangs, I can drive all week and not see 1 GTO, what does this tell you????
Ok Im going to jump off my soap box….
pontiaclocator.tripod.com
Interesting posts here. But all should know that GM is presently planning both a rwd and fwd 6 speed auto trans. they are going to be made at Willow Run and Warren starting next spring.
I like American cars, GM’s in particular.
Obviously many don’t. The Japanese almost have the lion’s share of the auto market.
It’s easy to see that the American consumer wants the best bang for the buck.
I guess that is why the Japanese are winning. I’ve heard dozens of times how a Japanese car is approaching 200,000 miles and has only had oil changes.
I wish I could say that for GM’s cars. I can’t.
As I said, I only buy GM and that is because I like them and feel an obligation as an American to buy them. The vast majority of Americans are NOT like me.
To GetALifeAgain,
I had a Saturn SC (a GM product) that had 330,000 km (198,000 miles) before I gave it to my brother in-law a year ago. And he is still driving it as of today. And basically I only had oil change (every 5000km). No timing belt change was needed like the Japanese model, because it is chain.
I agree about GM’s consistent practice of changing product names and titles unnecessarily.
I know that there’s a panel of well paid GM executives who believe that they can generate sales and interest by changing names of your bread and butter products, the logic being that by changing a name, people will think that it’s a brand new concept and not a modernization of a successful line.
WRONG WRONG WRONG!!
Don’t change the name of an exhibiting product line. You’re confusing the market!!!
Back in the 80’s Chevy had the S-10 Blazer, and the full sized Blazer. Both had the mid ranged options package known as the “Tahoe”. Then in 1995, what was the S-10 Blazer was simply called the Blazer, and what was the full sized Blazer was renamed the Tahoe. WHY??? Many people became confused, thinking that their full sized Blazer had shrunk, and that the Tahoe was still an options package and not a new name for the full sized Blazer! To this very day, such words as “S-10, Blazer, and Tahoe” garner much arguments by both GM enthusiasts and critics alike.
Keep it simple stupid! (KISS)
If you have a successful line of products, keep the name. It’s worth every penny! Name recognition is what you WANT! When people hear the word “Corvette”, they KNOW what the car is, and what it stands for.
GM chevy cobalt is a good carbut you guys could had took it more but left it at good abd better then bad but good dont sell. only better then good sells. your spending tons of money on these NEW SUV’S and no one want a SUV with gas prices like that are. you should had spent the money on the cobalt and redid that ugly saturn ion to look good at least and got rid of that ugly dashboard in it. I had 4 cavaliers and i try to tell myself they were all good cars though i had major problems with 2 and had minor problems with the other 2. this morning i went to test drive 3 cars a ford focus and a new 2006 honda civic i did test drive a cobalt SS with the 2.4 coupe. my best ride i got in those test rides were the civic then the cobalt but the thing i saw is cobalt COST TOO MUCH and is not wroth the chance with the bad history of GM cars. i am afrauid i’ll have to take my money to honda. GM you need to lower the prices on the cobalt and get more better cars. though i give you this, the cobalt a good start though i am buying a civic cuz i want better at a better price with a better history. GOOD LUCK GM BECAUSE YOU NEED IT
hey mark i think your thinking is right on point id love to hear your insight on brand marketing for this summit im producing
Big chunk of an answer to GM’s problem, or the “silver bullet” as Mr. Mark LaNeve says, is under there corporate noses.
Answer is go RETRO–what GM built in the past and was famous for. For example, late 60’s to 72 range camaro, firebird, chevelle, gto. Build them, shrink the size BUT keep ALL cosmetic design. Dont muck-up the appearance like Ford did with the “retro” thunderbird by blending retro with modern, or even worse a job done of what GM did with the so-called GTO.
Ford has wise-up with retro skills and is having a heyday with the ‘05-’06 mustang, even factoring the sales figures GM gave to Ford of the ponycar business.
Sometimes the best cosmetic design EVER done is in the past whether it be clothing, furniture, or yes cars. Styles have a way of ALWAYS coming back around.
Too many same-o same-o’s out there, cant tell domestic from import design. The time for real American retro comeback is now–”build them and they will come!!” Timing is important.