The Game Plan…An Edited Version
Bob Lutz at Auto Shanghai 2005
By Bob Lutz
GM Vice Chairman
Things have been pretty busy, as you can imagine, but I wanted to take a few minutes to post something because it’s been awhile, and I’d like to address a couple of things that we read time and again in your comments.
The first is your comments themselves…yes, we read them, every one of them. It’s not feasible to address them all, of course, but we try to gather up and get to as many as possible, as quickly as possible. And yes, I know that some bloggers do so more quickly than others…we’re all doing what we can.
The second and more important issue I’ve seen asked repeatedly is, “What is GM’s strategy for fixing its issues?”
A good and fair question. Let’s start by saying there’s no magic bullet for our issues, at least none that we’ve uncovered. The truth is we’ve spelled out in several forums and in several media interviews what we intend to do to address the challenges we face. What we won’t tell you is exactly how we intend to do those things.
I can tell you this: First and foremost, our recovery is riding squarely on the back of our new product programs. There has never been a turnaround in this industry that didn’t happen because of hot-selling cars and trucks. There never will be, either. We’ve talked a lot on this blog about the products we’ve introduced, and some we’ve got coming, and we’ll continue to do so.
This is intended to be a blog about cars and trucks, by the way, and some of the peripheral issues surrounding the buying and selling of same. We will not turn this into a debate about health care costs or public policy or anything related. Our cars and trucks are our lifeblood; we have a lot of great ones coming, and as they arrive, we’ll talk about them here.
For example, when we have news about a current product, like the Pontiac GTO, we’ll tell you about it here. I happened to be at a Pontiac dealership in Los Angeles on Tuesday, and they only had two left! Each of those was priced at a premium, too. L.A. is the No. 1 market for GTO — when was the last time we could say that about a Pontiac? Overall, GTO first-quarter sales were 81% higher than last year, and 2005 models are consistently outselling 2004 models, even though the ’04s have substantially more incentives on them.
For another example, we announced pricing last week for the upcoming Chevrolet HHR, which will start at $15,990. This is going to be a great vehicle for us, selling at a great price for you. That’s the kind of value story you’re going to see from us as we continue to revamp our marketing and pricing strategy.
And that’s exactly what Rick Wagoner has been saying in the context of GM’s plan to right itself. The HHR is but one example.
To touch briefly on what we have already said publicly, we’re going to take the new cars and trucks we build and we’re going to get a lot smarter about pricing them, about marketing them, and about selling them. We’re going to reach consumers we haven’t reached yet, and we’re going to reach them in places we haven’t been before, at least not at full throttle like we’re going to be.
The other two key aspects of GM’s plan are costs and quality. Simply put, we’re going to continue to be vigilant about eliminating waste and cutting our costs across the board, in every discipline, in every region. And we’re going to sustain the progress we’ve made on improving the quality of our products, and take it even further. Quality will be an even bigger focus for us going forward.
Sound pretty general? You bet it does. But if someone had asked the coach of the New England Patriots before the Super Bowl what his game plan was, he probably would have said something like, “We’re going to run the ball, we’re going to pass the ball, and we’re going to score as many times as we can. And, by the way, we’re going to stop the other team from doing the same thing.” I don’t think he would’ve turned over the script for his first 15 offensive plays from scrimmage…not even on his blog.
Believe me, GM has a crystal clear strategy in place to turn around our fortunes, particularly in the U.S. Now we are working hard and smart to execute it. You are seeing the fruit of that today in products such as the Chevy HHR, Pontiac G6 and GTO, Cadillac STS and the dozens of others we’ve recently introduced.
Now, go test drive one and see for yourself!
And, as always, your suggestions are welcome.
- Posted in Business
Steven Whittler
Thanks for your candidness Mr. Lutz. I think GM will turn this around. I own a 02 GMC Denali XL and I absolutely love it. The drivetrain is smooth and reliable with no glitches thus far.
I like the 05 GTO, but it still needs an upgraded exterior on the lines of the GTO Judge concept I have seen. Do that, and I along with others will but it. The Pontiac Solstice is another vehicle I may purchase. I did not like the Early Order Program, and cringe at the thought that your dealers are going to market adjust this nicely priced vehicle out of my market among others, but I like thus far what you have done.
Steve
Andrew Jennings
I’m excited about the Pontiac Solstice, but if dealers start gouging and severely marking up the price it will be a major disincentive…
Bill Strobel
First off I bought a 2005 GTO great car. Second you guys are in trouble and all I hear is wait till the new product hits the showroom. Then you’ll see us take off. That is exactly what you said 2 years ago and you are now in the middle of your new product introduction and guess what, you’ll telling us to wait again. People are buying cars look at the numbers, what they aren’t doing is buying GM cars. Continuing down the same path (telling everyone to wait for the new product) and expecting different results is ludicrous. You need new ideas. You need better marketing (check the Scion campaign for some ideas) Telling everyone to just hang in there and it will get better just is not making it. You guys earn 7 figures you ought to start earning your pay or retire and let someone who can do the job and deliver the numbers have a shot at it. Look at your stock price, look at your sales numbers you guys are failing. I mean someone knows how to sell cars, the big three from Japan post increasing sales and profits every month, while GM posts losses and loses market share. I’ll give you a free tip, hire the guys from Toyota, Nissan and Honda they seem to know what they are doing and they are not telling everyone that tomorrow (which for GM never seems to arrive) will be better.
Jack Krupansky
Despite the incessant criticism, GM’s future is not going to be determined merely by the greatness or lack thereof of your products. Rather, its all about culture, perception, and costs.
I personally think you have great products. Who could ever challenge the quality of the Corvette? But, great products are not the only or even primary factor that will determine your success as a business.
American car companies are viewed as bloated dinosaurs, and uncaring and indifferent dinosaurs at that. And if you disagree with that, remember my second point: it’s all about perception. The only way you can change that perception is to remake GM into a network of smaller, independent, leaner and meaner, and more customer-oriented businesses. I doubt that you have the nerve to take that route.
You really need to radically redo your cost structure. Nickel and dime-ing won’t help.
My view is that both Ford and GM will have been restructured out of existance within three years (if not sooner). If you fail to voluntarily restructure your business, market forces *will* do it for you.
I readily admit that I could be wrong, but the burden of facts that are readily available to us all would suggest that even my “extreme” view is being quite charitable.
– Jack Krupansky
John
Hey Bob,
Could you be a little more vague on your game plan?
Toyota’s already offered to raise prices and share hybrid technology to keep the pressure off GM, so what exactly are you hoping to gain by skimping on the details?
The whole point of this 2 way communication is that you can use it to help get effective input on how to make GM better, which is what we all want.
That said, I’ve still got a few comments.
Quality?
How about extending warranties like the Koreans did?
Korean cars used to be thought of as ridiculously unreliable, but since they came out with 6-10 year warranties, you don’t hear that much about reliability problems with Korean cars anymore.
It’s going to take GM more time than it has to convince people it’s now building reliable cars if it doesn’t start offering a significantly longer standard warranty. Honda and Toyota can get away with a three year warranty because they’ve been making reliable cars for decades. GM can’t, because it hasn’t. Seriously, if GM is really serious about making quality cars, then it shouldn’t cost very much to extend the warranties for several more years, and GM’s improved reputation would be invaluable.
Also, let me take a moment to second EVERYONE on hear who’s recommended a major overhaul to GM’s power steering. The geriatric crowd my love the absence of steering effort, but to some of us, that’s called road feel, and is an essential part of an enjoyable and safe driving experience. More road feel = more younger GM customers.
Product?
The HHR, for $16k, is MORE expensive, by close to or more than $1,000, than the Scion XB, and the PT Cruiser, the two trucklets that are its most obvious competition in the cool/stylized micro-truck department.
Come on, you can’t show up to the trucklet party several years late with a product that costs more than the competition and still expect us to believe that that’s a GREAT VALUE STORY. Now, if you priced it for $12,500-$13,990, and start selling a whole bunch of them without rebates (which will be inevitable at the $16k price), that would be a great value story!
The GTO? I live in L.A., and have yet to see one on the road. I’m glad they’re selling well, but you’d be selling a lot more of them if the Pontiac dealer experience wasn’t so unpleasant, and the dealer markups weren’t so high. Don’t compare 2005 GTO sales to 2004 GTO sales, that’s not really a useful benchmark. Compare 2005 GTO sales to 2005 Mustang GT sales. That’s your benchmark, and when you hit that, then you can congratulate yourselves.
Also, what’s the scoop on the Pontiac Solstice release date?
Have you worked out the production bugaboos yet?
We know that’s your baby, and it’s the first GM car in years that I can both afford and would consider buying, so let us know what’s going on with it.
I am glad to hear that GM is focusing on Product, Quality, and Cost though.
I can’t wait to see a range of high-quality, reliable, low-cost, fun to drive GM product.
Mervz | GM Autoblog
Lutz, Corvette Museum and more..
I’m proud to announce Iíll be in Bowling Green Kentucky at the National Corvette Museum, giving a seminar on satellite radio on May 28th @ 1pm.
Check out the event schedule.
Iíll post my PowerPoint presentation here after the seminar.
ìBelieve…
Chris
Why shouldn’t we turn this into a debate about public policy or health care costs or whatever we want? If you want to issue press releases and pat yourself on the back for the GTO beating last years dismal sales, you don’t need a blog for that. This is supposed to be a two way street, and wherever the debate goes, it goes. Thanks for another dog and pony show that totally misses the point… Either start treating this like a blog or stop calling it one. I appreciate that you take the time to share your (censored and edited) thoughts, but this is getting old fast.
Brooks Talley
I’m glad to hear that GM has a plan, and I think anyone has to respect the enthusiasm and can-do attitude that Lutz shows here.
However, I have to wonder if GM as an organization is capable of adjusting — not only to today’s consumers and vehicle market, but to tomorrow’s.
The days of one-size-fits-all really are dead. Today’s consumer wants a unique car that expresses their personality, and that’s where margins will be. Sure, there are some folks who don’t have much of a personality and/or don’t want a car that has one, but those needs are going to be filled by the Hyundai’s and Daewoo’s of the world. It makes no sense for GM, or any other US-based mega-corporation, to get into a battle of high-volume, low-margin products.
For my money, GM would be better served by further differentiating its still-overlapping brands, by producing more halo- or at least unique designs, and by offering more customization and build-to-order options.
The SSR is a good example; I think it’s hideous, but I respect GM for making it and the people who buy it.
The HHR is another good example, except it’s an example of what *not* to do: it’s so obviously a PT Cruiser knock-off that anyone who’s buying a car to express their personality and out of sheer enthusiasm for the car will pick up the Cruiser, leaving GM with the dregs of people for whom the HHR is a better deal (after the inevitable discounting). That is not a car that *anyone* is going to love.
Like Lutz says, GM’s salvation lies in product, not process or accounting or whatnot. I just have real doubts about GM’s ability to understand not just what people want today, but what they will want tomorrow.
Fair
After being a domestic fan for a decade, I had drifted to BMWs and other German imports. The disappointment with the quality of my 1994 Corvette and 1998 LS1 Firebird Formula left a bad taste, but that was all turned around with the 2005 Corvette Z51 I now own.
I am back on board with GM (and applaud the continuing development of pushrod V8s!) and pushing friends and family at the newest GM products that are good no matter what measuring stick you use: 2005 GTO, C6 Corvette, G6, CTS/V, STS/V, H3, etc. Going to test drive an ‘05 GTO tonight with my father-in-law! - Fair, Dallas, TX
beken
Hi Bob,
Well, I guess you’re trying to head in the right direction but I perceive it’s only half way. From time to time, GM comes up with a great car. Corvettes, Cadillacs, etc. Then it all gets messed up two or three years down the road when something falls apart and they can’t get it fixed.
The other half of the equation is the ownership experience. My dad was a “only buy GM” person. He owns a Honda now and says he got tired of dealing with the problems of his previous cars. My godparents used to always own GM cars. Now they drive Hondas, Toyotas and BMWs because they don’t have to deal with the “problems they have with GM cars”. It’s not just reliability of the cars but how they are treated by the dealerships. GM owners don’t feel like they’re getting fair value for money in their servicing and I’m tired of bringing my Buick back to fix something I already paid for and should have been fixed the first time. The entire GM product portfolio cycle (Product, sales, support/maintenance, upgrade) has crumbled at GM and GM is still stuck on Product development mode. Who designs your cars anyways and why does it take 5 to 10 years to get to market? Is the next generation Miata going to hit the showrooms before the Solstice? Why isn’t the Saturn Sky on the market yet?
GM is a BIG ship and it’s going to take awhile to turn around. From GM’s recent quarter earnings annoucements, it appears most of your current car-buying customers have stopped waiting.
All the best to your efforts.
Craig W
Bob,
Keep up the good work. GM needs more homeruns (touchdowns)? The HHR is going to be a winner. Put that Cobalt Supercharger in it too (please). Manual trannys in our performance cars/trucks.
I rented a Malibu Maxx last week and was very impressed. However, the electric steering needs a little more “feel”. Otherwise that vehicle is near perfect. Looking forward to the SS versions of the Epsilon. Manual trannys in those are needed also. Performance, value and driving excitement (driver involvement) is the key. Focus on quality and product. No more chintzy seats or interiors. If Hyundia and Mazda can do it, GM ought to be able to whip em. Let’s get this ship righted and kick the s- - - out of our competition.
Dale Coats
The idea of revamping how GM prices vehicles is great and long over due. GM has some great products, but many are overpriced. Such as the STS and SRX. Cadillac has made a great comeback, but still does not demand the same pricing as BMW. The SRX has received many great reviews but still struggles to meet sales expectations. I have to believe that high prices are a factor. For many GM models it is apparent that incentives have been factored in to the pricing structures.
New vehicles, such as the HHR, Solstice and H3 seem to be very aggressively priced. More in line with real world transaction pricing. These are all new vehicles with no predecessors. What about new models that are simply replacing a current offering? How will they be priced? A new Impala and the Lucerne are due later this year. They are replacing current models, so how will GM price these? If GM truly prices them competitively their respective prices will infringe on the Malibu and LaCrosse. Does that mean that the Malibu and LaCrosse pricing will be lowered as well? This is an interesting dilemma. Time will tell how GM works out situations such as this.
Tuukka
I would love to know more groundlevel details about how GM is working on field of quality, especially how it is combined with cost cutting and how to tackle publicly very negative image of large scale part sharing?
Also GM talks a lot about global engineering, it would be good idea to tell how it works actually.
James Peffley
Bob and Company,
Well - this is definitely the place where “Monday night Quarterbacks” hack away about how they propose to turn around the company - but careful now! - Check their credentials, I’ve said this before, BE METICULOUS IN EVERY DETAIL!!! about these cars and trucks you are introducing - as a formally trained scientist and engineer - I assure you, your largest asset resides in your passionate engineers, designers, calibrators who as so many bloggers note - can or can not set the sweet spot for tactile road feedback (and YES - the electronic steering assist can be CALIBRATED to feel like your hands are GLUED to the road!! - the Cobalt is a testament to this!!! - Good job by the way!), chassis and vibration attenuation, interior/exterior gap thickness, ect. YES even ultimately the COST!!! But it remains in the Top level design intent to Find and set these numbers (YES NUMBERS - these sensual/tactile feedback nuances are readily Calculatable as every engineer will tell you!!!) - it is no mistake that a BMW, all of them, can be serpinditiously felt to drive like …a BMW? - if you closed your eyes and drove - one would figure this out. Can you say a Buick feels like a Buick in a complimentary manner? - Nail these down for each of your beloved brands, play this game like its last shot at the title - because it damn well might be!!! These marketing issues are secondary and tertiary issues - make EXCELLENT cars, and the marketing and sales issues sort themselves out ALOT easier on the ass end of product sales and marketing. Don’t kid yourself to think that my generation (25-30) doesn’t pay attention to details, and think that just because one brand might have a “pretty showroom” and a friendly sales person, and nice advertisements (don’t get me wrong - these things obviously matter a lot in this day and age - but nothing like the product itself: remember - It is not the company that pays for your ridiculous salary, it is the PRODUCT!!!) - that you can sell me a poorly (relative to competitors!!! - not in house designs) engineered, constructed product. Period. Now go and make a RWD Buick Vellite (or new generation GTO or Camero/Firebird) drive like a Buick ought to!! and sell me one for Goodness sakes!!!! We’re waiting - but the money will be spent on somthing sporty if you dont get on this!!
Bill Aston
So many enthusiasts, so many problems, so few insights. Maybe we all are expecting too much from the well intentioned Bob Lutz.
As a group the readers of this blog appear to be ahead of the power curve re the problems facing GM. I can understand why those in command may not want to open their hands for inspection. They face intense competition. But then they should realize that without meaningful CONTENT this blog is certain to go downhill.
Hope I’m wrong. It would be a shame were the blog to deteriorate into a staff PR operation.
Cheers!
Bill
John
For what it’s worth, I might be the sort of customer you really want. I’m in my mid 30s and I’ve never owned a domestic car. Recently in the market for a new car, I decided to buy a Ford Mustang. Clearly, I’m not opposed to buying domestic but I found that GM had no products in my price range (mid-$20k) that appealed to me as a driver. By that I mean I wanted a sporty car with reasonable performance, acceptable handling (ie, rear-wheel drive), a manual transmission, and stylish (but tasteful) design. This doesn’t seem like it should be a giant obstacle for any competent automaker, but it apparently must be.
Frankly, the majority of product out there from GM (and Ford, too) seems to be aimed at people who need transportation but don’t like to drive. Hence the preponderance of cars with fake engineering: fake air scoops, plastic wheel covers that are supposed to look like cast aluminum wheels, useless rear spoilers, automatic transmissions, and front-wheel drive.
Chris
I like how you say “Now, go test drive one and see for yourself!” like its no big deal. Ask anybody who’s not a GM executive what its like to walk into a Chevy or Pontiac dealer and request a test drive… I can tell you what its NOT: easy, enjoyable, fast, low-pressure. I’m feeling a serious disconnect with you and GM management. I’m sure when you walk into a dealership you get treated like royalty, but the rest of us get treated like the scum that we are.
And, as always, your suggestions are welcome.
Mo
Mr. Lutz,
You are a great corporate “Go GM Corporation” spokesman, however, the truth is in the public experience, which makes up the numbers.
Americans are not as dumb and absent minded as GM, and other American Auto Giants would like them to be. If the price is more, for less (less quality, less options, less warranty, less reliability and duarability), Americans will notice the difference.
The HHR, which is an ok looking little car, is costing more than it’s competition as an introduction product. The HHR offers less in qaulity interiors, offers a less in warranty coverage and less in standard options than the Scion and the PT Cruiser. So, why would us “dumb” americans purchase a Chevy that costs more than the competition, the Chevy is a new model on the block that costs more than the competition which has been proven and around for a number of years already. Would you pay more for less?? Put aside the loyalty to the brand name and the made in USA Tag, would you truly, knowing what you know on the product, all around, pay more for a new competitor in the market who offers less all around, or pay less for a competitor that has been around which offers more all around.
On the subject of cars and trucks, as you mentioned, this blog is to discuss GM cars and trucks. I am seeing many more Tundras and Titans on the road than Silverados and Sierras. To be completely honest, I can see why. Just on plain looks alone, the Tundra looks nicer than the Silverado and Sierra. These trucks have been around forever, and they’re good truck. When GM redesigned the Silverado front end and grille, they made it ugly. The Sierra is still nice, but it’s looked like that for too long. The Nissan Titan is also nice looking. These trucks are more expensive than the GM models, but they hold better resale value because of the reliability, warranty and looks.
I’m sorry to say, but GM has nothing and no one to blame except GM, for the situation at hand.
Healthcare, out of respect for your comment that this blog is not intended to discuss this topic, I won’t. however, you did mention that GM cars and trucks sales, along with the new ones coming is what will revamp or save GM. But, was it not the GM cars and trucks, their quality, price and reputation that placed GM in this current situation?
You can’t cure a disease by infecting it with the same disease. If you gained weight by eating sweets, you will not loose weight by eating the same sweets. Same thing, if you sank GM with your GM cars and trucks, you can’t merely count on saving it with the same cars and trucks.
Redesign, re invent, offer a better product, make a better product, protect it with a better warranty. As someone mentioned above, the Koreans are selling hot, based only on design and warranty. GM has much more to offer than design, but GM refuses to use it.
Get your heads out of your tails, listen to the demand and get on the ball. you need to offer value, all around, you need to offer a great product, not a mediocre line and you need to upgrade your warranties all around, not just on Cadillac and Aveo/Daewoo.
I read of GM employees and dealer staff buying other non GM products. With the discounts offered and perks of being an employee, they are buying, driving and keeping non GM, mostly Honda, Toyota, Hyundai and Nissan. That says it all. When the people that make your product buy the competition, there’s much wrong with that picture. There’s much to be accomplisedto bring the great company that General Motors once was back to it’s “General” glory.
Good luck.
Mo
David Eagle
Bob-
Like John, I think I fall into one of your more aggressively targeted demographics - 33 yrs old, father of 2 young children, both my wife and I have Masters degrees (and the student loans to prove it), I’m a certifiable car nut (the guy everyone speaks to before buying a car), and I live and work in Los Angeles.
Rather than play armchair quarterback and try to give a simple solution to a complex array of problems, please allow me to state what I’m looking for in a car:
Rear wheel drive
Manual transmission
4 door sedan (no trucks, thank you)
Precise, neutral handling
Power/weight less than 10 lbs/hp
Room for my kids to be comfortable in the back seat behind my 6′4″ body
MSRP (with options) under $40,000.
I’m ready to buy right now - I turned in my leased BMW 540i last month and am currently driving a borrowed car, waiting for a new car that meets the criteria above to be introduced or for the price of low-mileage used CTS-V’s to get into the low $30’s.
I’m tired of leasing, I’m tired of dealing with German electronics, I’d love to drive something with a Small Block V8.
Thank you for considering my needs.
Sincerely,
David Eagle
Thomas
Well, it sounds like you guys have a plan. Good, the company pay you guys a lot for that. I tend to agree someone’s comment here talking about the similarity of the plan now and the plan two years ago. I hope this time GM will have better products with better pricings go along with them.
Having a halo car like Corvette is good, but what you need to turn this company around is cars for everyone.
I think it is a very good idea you go to high school and college. Ask them what types and brands or car they like. That will be an eye opener for you. I asked my cousin who just graduated from UCLA. I asked him if any one of his friends drive GM cars or trucks. He said no. I asked why? He said import cars just look and drive better.
That is some scary stuff. If the younger generation does not even consider GM as one of their automotive choices. The future of GM is even worser than I thought.
talonsaab
Bob, we all appreciate your enthusiasm and determination. I have a few suggestions. There seems to be a struggle between cutting cost and improving quality with alienating the consumer and making the auto journalists happy. There are cost cutting ideas that are false cost savings. Decontenting or cheapening products that will hurt sales and in the long run not save anything. The strategy needs to be long not short-term gains. The consumer is becoming more educated and brand loyalty has become a minor consideration. Consumers look for design and style. Just look at Nissan and Infinity. Nice designs, excellent power trains but poor to mediocre quality and they sell. I think it will be difficult to beat Hyundai on price, quality and content alone. You need to beat them with style. I think at GM there is an over emphasis on JD power scores. JD power is based on consumers who already bought the car. GM needs to concentrate on how to attract new customers. I think JD power is more of a marketing strategy than anything. JD power is not the bible to consumer choice. Design and content are. I would concentrate less on JD power and more on styling and feature enhancements to attract new buyers. Listen to the media pet peeves and address them… now! Don’t wait for the next model or mid cycle enhancement. Need examples, ugly 4 spoke steering wheels, hard scratchy plastic, acres of high gloss plastic wood, uncomfortable seats, ugly wheels, cheap looking and feeling buttons, 4 spd transmissions, noisy engines, floaty suspensions, under steer, 100 function turn signal stalks, weird gauges and fonts, small brakes, wind noise. The G6 has great potential but needs some polishing of the interior center stack, tail lamps and drive train. As far as future styling, bold, sexy or different are key with slick but simple interiors. There are too many bean counters who fear GM will alienate their traditional customers. Who cares, they are dieing off. Why does a new Buick have to look like a Buick when Buicks don’t sell ? Why do seats have to be flat and wide to accommodate the 400lb ninety fifth percentile person? Let them go on a diet and accommodate the remaining 80%. I believe the Opel Astra would be a huge hit in NA and a real competitor to the Mazda 3. The GTO was a great idea, just poorly executed because the front end is all wrong. Notice how the GTO has been hugely applauded for amazing seats! Just copy those seats and no, the 400 pounder won’t fit. Just need to get the right people in the right seats on the bus and execute.
Sean McGrath
I have alot of respect for you Bob, but I have to agree with some of the other comments in that its going to take more than a flood of new and exciting product to turn things around. Of course it will help matters, but it seems the problem GM faces is one of IMAGE, not necessarily PRODUCT. I can’t even talk to you about your product because I haven’t stepped foot in a GM dealer in about ten years… and to be honest, I probably never will again.
There is such a thing as brand loyalty (which probably accounts for alot of GM’s current customers)… and having been disappointed with GMs product offering in the past, my family and I found the quality, service, safety, styling, performance and dependability we were looking for from foreign automakers.
So, the question is, if I have been exceedingly happy with my imports over the past ten years, then why on earth would I suddenly abandon them, especially as they continue to delivery and satisfy on all fronts? I’m here to say that it will ABSOLUTELY take more than a “we have a similar great product, you should come in for a test drive” to sell me on any GM brand.
I hope for your sake that you do eventually find a way.
frankO
Zeta cancelled.
No GTO after 05
Great plan
Lars Bogart
Why don’t you try THIS tactic, which will save you “Hybrid face” AND help your bottom line.
Cut BIG SUV production by 75% immediately and increase output of all smaller cars to the fastest rate you can produce them. This will do this:
Create a “shortage” and allow you to STOP giving rebates, and instead allow you to charge AT OR ABOVE MSRP for the Big Wagons, targeting the people who HAVE THE MONEY to say “I absolutely need an 8 passenger SUV.” This will swing your profit almost $10,000 into the black by allowing you to stop those ridiculous $5,000 rebates and charge $5,000 OVER MSRP !! It would work !!!
Then with the extra profit keeping your company afloat, along with the additional small car sales, start producing Hybrids, even if it is a $1000 loss per vehicle. That’s still a $9,000 total profit in the black when you sell a Big SUV and a Hybrid simultaneously !!
That will do a lot of things for you:
Increase your MPG figure across the board, which will please the EPA and the Greenies to NO end !!
Inflate the value of Big SUVs and you can charge more for the parts too !!
Put more small cars on the road, with lower GHG emissions, helping the Earth and reducing fossil fuel usage !!
I think this would work.
Steve G
I hope you are all reading every comment here because if you put most of them together GM will be saved.
To Summarize:
Get more RWD Cars produced, at any cost.
10 year Warranty.
Get rid of the Electric Steering.
Enact No Haggle Saturn like pricing on all your brands.
Improve your interiors.
Fire whoever designed the front end and steering wheel of the Malibu.
Your interiors should look more like the interiors of the new Minivans.
Seems pretty simple to us, why isn’t it to GM?
kurt
The good news is this blog reaffirms what we already know; GM is improving product quality, and will focus on new product as its way out of its current situation. And yes, I appreciate the effort!
The bad news is there is still no mention about how GM will improve other aspects of itself; sales and service.
If it is GM’s intent to make a car surpassing Toyota/Honda capabilities and quality, so that us buyers only require __ONE__ visit to the dealer (to buy the car), and drive the car for 10 or more years, well and good.
It would be nice, though, to hear what GM plans to do to improve its __total__ car ownership experience. We buy several cars in our lifetimes, and a bad experience with the car, the dealer, and/or its service can certainly sour future purchases from the same manufacturer!
'HotWheels' Blog
GM’s Game Plan — Bob Lutz Reveals All . . . Well, Not Exactly.
In his latest post at the GM blog, Fastlane, Vice Chairman Bob Lutz gives us as much information as possible in a frank look at the General’s upcoming game plan for getting out of its current troubles.
A good and fair question. Let’s start by sayi…
The TrueTalk Blog
You Gotta Like Bob
When Bob Lutz started blogging, I was skeptical.
Trollhattan Saab
Bob’s Best and Brightest
Congratulations Bob Lutz, on the best post I’ve seen on Fastlane.
ellis
Mr. Lutz, i was one of the ranting and raving “gm enthusiast” on this blog when this venture first started. but now i think it’s all about support and doing the best i can with my peers to correct any misconceptions about american cars in general. you’ve all heard plenty of good and bad advice on this blog from plenty of people who don’t have a clue on the ideosyncrosies of running a multi billion dollar corparation and all that that entails. so i just say do your best, and be for real about putting out the best product that you can. also, don’t forget who raelly sells your cars to the general public….your core enthusaist!! dont forget or disregard them!!
Christopher Clai
To say that GM is going to collapse because of marketing forces, like someone forementioned in a comment, is just ludacris.
The thing to realize here, is that GM realizes that they have made mistakes, or made design flaws. However, not one company is perfect. Not GM, Not Ford, and not any import company.
I have owned 2 GM Vehicles in a matter of the last 2 years. I have to say, that i enjoy them more, that i ever would have from a competitor. While some may say GM is being cheap with their vehicles, i would beg to differ. From my point of view, it seems as if GM is making alot of progress with its vehicles, however i do think that the engineering process needs to be more readily available to its customers. When a customer has a valid, good complaint or question for the engineering department, you feel ignored. It took 9 months for one of our complaints / requests to reach the Engineering department, only to be told that it’s not possible, which i find hard to believe. The request was to put onstar in the GM Fleet vehicles, one in particular the larger models of the Chevy Express Vans.
I currently own a 2004 Trailblazer NFE, and while i have enjoyed it, there are slight design issues, that make me wonder what the engineers are thinking, and the fact that dealerships, will try and say a problem is “Normal” unless it affects operation. For example, my trailblazer has a vibration upon a heavy acceleration, and it aggrivates me, but not to the point of getting rid of the car. Countless times, dealerships have ignored the problem, said its normal, or whatever else they could put.
In addition, Dealerships are not as easy to deal with as they use to. They more or less try to speed up the process, and not try to cater to the customers needs.
A recommendation i would have for GM, is to open up some kind of request line for the 2007 model year and beyond, for what people would like to see. For price points may be a good selling and marketing point, but they will not get GM out of the storm.
Remember that old saying “If you build it, they will come?”. Thats what GM needs to do. Stop worrying about trying to outcost the competition with everything. I rather pay for a car that i know is quality. Percieved Quality should be an extreme importance than just Quality itself. While the car may be quality, if it feels or looks cheap, its going to sell lower. Nickel and Diming is only going to be bad news.
GM should also push harder to get Alternative Fuel Vehicles in this country. Especially E85. One of the things i was disappointed with, on the announcement of the New Trailblazer is there was no E85 compatability, or Displacement on Demand.
While the competition can outsell, because of the low exchage rates, they cannot compare to an american car.
The HHR looks like a good step in the direction of competing price point wise, but if GM is to survive, GM needs to analyze their competition better. Its not all pricing.
What Makes the Honda Accord such a high seller? What is important to the customers? What makes a Toyota Camry so popular? These are things that should of been put into perspective a long time ago, but i think the Marketing / Research department is more worried about making flashy commercials.
Thats my percieved belief. Good Luck Mr. Lutz, and lets all hope that GM can figure out the glitches and fix them.
Rick
Bob,
I think the factory should be talking to and listening to sales people. We are on the front line everyday and receive a lot of feedback from customers on a daily basis. I have been in the car business for 25 years and I have never heard of factory personnel talking with salespeople. We get about as much respect from the factory as we do the public. We are not all slick talking, uneducated slime balls. Most us are real Professionals!
The market is constantly changing and we cannot expect the market to keep buying a vehicle in it’s sixth or seventh year. Give it a face lift after 2 years and discard it after 4 years. Example: Customers that can afford our big SUV’s can afford to buy a new vehicle every 2 or 3 years and they do not want to buy the same thing over and over. While we are trying to sell a six year old Tahoe, our customer is buying a Nissan or Toyota because they have already had two Tahoe’s that were identical and they want something different. Plus in today’s market development time for a product from start to finish should be no longer than 18 months.
Product models need to be simplified. The trim levels should not exceed three, at the most, with very few options. Our product line is so complicated salespeople cannot learn it. You do not have to build every combination in the world to sell a vehicle. Simplify the product lines and manufacturing costs will have to go down.
Thanks for the forum.
Rick
Wade
Bob,
I’m glad you still have a game plan. But when is it going to include information on what you’re planning for the GTO and Camaro? I agree with one of the other commenters: There isn’t much sense comparing the ‘05 GTO sales to the ‘04 GTO sales. My gosh, the total ‘05 GTO production is barely more than a month sales of the new Mustang GT. We’re smarter than that Bob. Now, when are you going to tell us your answer to the Dodge, Chrysler and Ford new “muscle” cars? The Solice is certainly not it. The C6 Corvette and Cadillac can’t do it…they’re too expensive. The only thing I can figure is your silence is the result of NO PLAN. Like other bloggers, we have the money, we’re in the market, but GM just isn’t providing us with the goods…or information. Tell us: Do you have a plan for the GTO in 2007? Is there to be an upgraded engine option for the ‘06 GTO? Is the Camaro going to happen within the next two years? The Shelby GT500 is calling to us! and the SRT Crossfire! and the SRT 300C!
You also say a lot about the importance of quality. I agree. But do you read the GM car forums? For example, people owning the ‘04 and ‘05 GTO seem to consistently have problems with the driver’s side window speed. Window motors are slow and more than normal amounts are being replaced. The passenger side windows seem to work much better and faster. One very obvious reason…it’s not an American car. The Aussies drive on the right side. Hence, for them the driver’s window problem isn’t a problem. Big goof, Bob.
Enough of just hot air talk. What are GM’s plans for the GTO, Camaro, or any other GM model to answer the $30-$40K super car performance from the other US automakers? I can’t help but come to the conclusion that silence on this subject can only mean that GM has NO PLAN.
We’re listening…
Wade
stephen clifford
Previous cars I’ve owed include a 1998 STS and a 2000 STS. Currently own a 300C and I would not go back to STS until it has a steering wheel that telescopes way back like the Chrysler does and until the knee room improves substantially on the STS where the console meets the lower part of the instrument panel.
Just look at how close the steering wheel is on a Monte Carlo Nascar race car. Proper positioning of the steering wheel aids substantially in being able to control the car in emergency situations, or spirited driving.
All GM cars and trucks should have telescoping steering wheels. This is an example of features that will sell cars, features that will cause a person to hopelessly fall in love with a car or truck, like I am with my 300C.
Anthony
Bob,
I have been waiting for any hint of the next camaro. Mine has so many miles on it that I dont think I can wait any longer. Please give some hope on the blog. The new Mustang and Charger are really starting to catch my eye. HELP.
Wade
Bob,
One more note. This is the GM blog site to provide us with information that I would assume is new, exciting and straight from the top. However, I haven’t gotten much out it; I learn a lot more from reading the forums. Give us some information that is truly noteworthy. Give us information that forums don’t already have. Give us information that we haven’t already read in auto mags for the last six plus months.
Don’t let this opportunity fizzle.
Wade
Guy Wilson
I have looked at your cars and think you offer a good product that is very competitive. I test drove the Buick LaCrosse, was impressed, and may buy one.
What I do not understand is why you put so much effort and energy into the Hummer brand. I see dealers building big beautiful new showrooms for this dinosaur. In the long run the effort put into that product line will appear short sighted. It is a environmental blackeye for GM, while the competition is promoting their environmental foresight. I recieve your GMability newsletter and think it is hypocritical to promote your environmental awareness while promoting the Hummer in consumer advertising and sales.
Doug
Ya know, Bob, at the end of the day, no matter what the endeavor, it all boils down to people. I’m a hotel manager and what I do most is deal with people…on both sides of the counter. I have long held that talking about guests is not professional and should not be done. But, I’ll make an exception in this forum.
Our hotel is in the mountains of Colorado where nearly every auto manufacturer does testing. I have walked past everything from Rolls Royces to Kia’s to get to the office.
Of every car manufacturer I have dealt with, GM has the most unigue “corporate culture”, if you will. It is almost like an aura of entitlement. Of a misplaced self-importance. Every car maker, save GM, just parks their cars in the lot. And we are talking about cars in ALL stages of development. GM requires a hidden corner where they huddle in a cloud of secrecy. The vehicles covered in tarps and guarded. (I might mention that our guard woke your guard up twice on the last visit). One guest asked me what was going on “over there” and I told him it was GM testing cars. He laughed and commented, “why the H**l do they go through all that, nobody pays any attention to GM’s cars”. Like a fading dowager still holding on to past glories…
I’m a “car guy” and I really enjoy what brief time I get to spend chatting with the folks from the car companies. But, GM’s people are different. They seem, for the most part, to be somewhat arrogant and, worse, lacking in enthusiasm. For example, I tried talking to one engineer when they were doing truck testing. I mentioned that I was happy to see GM coming out with the Duramax to give the Cummins a run for the money and that it was a “talking point” on all of the Dodge truck newsgroups. He replied that he really wasn’t interested in the competition and never checked newsgroups, etc to see what other people thought. Soooo, switching gears, I just said that it must be nice to have an interesting job. He snapped back, “some people might find it interesting”. That guy was an extreme but, he was pretty typical of the GM “attitude” that I encounter.
GM’s people get the best of everything. You sure don’t scrimp with them and we apprecite the extra perks you allow and we charge for. (Perhaps an area for cost cutting?) It’s great that you treat your people so well but, instead of appreciation, it seems to create an impression of “We work for GM. We’re owed this”.
Let me sum up what I am trying to say. Since you brought up the football analogy, I’ll follow suit. My nephew played football in high school. They played one team with a player called “Boomer”. By all logic that kid should not have been a high school football player. He was about 5′ and 120lbs. But, that 120lbs must have been all muscle and heart. Boomer was like greased lightning and would run right through the middle of the big, prima donna jocks. As they stumbled all over each other, the announcer would yell, “there goes Boomer!”
GM needs desperately to be less of a prima donna and more of a Boomer. The company and your workforce will be the better for it.
Jon
I hope some where in the game plan is to release the Solstice with the 2-tone interior ALONG WITH A HEAD UNIT THAT MATCHES THE INTERIOR! Looks great with the ebony interior, but horrible with 2-tone. Granted I’m going love my first 1k car as sly and 2-tone, but it almost makes me wish I went envious and ebony. Which can’t come with the 2-tone??? Though I do realise that tan doesn’t go with green or red, especially on roadsters…
gtjeff
How about starting a blog asking your customers what 4-5 models they would like GM to resurrect? The results would be very interesting.
schellinck
I used to think this site was cool…now it feels like a marketing tool ( hey, that rhymes! )
Bruce Sherman
Mr. Lutz has it right: the product must be GM’s salvation.
Having said that, it is critical that–somehow–GM get people to test drive its cars. I just bought a 2005 GMC Canyon. My first GM purchase in over 20 years. I really did my homework and I took test drives of the Canyon and all of its competitors. Canyon won–hands down. But had I just relied on the car magazines and not actually driven it, I probably would have chosen something else. So the key is to get people to try them out–and NOT at Hertz or Avis.
Now –please Mr. Lutz–produce a small open-air Hummer to compete with the Jeep Wrangler. That would be one hot seller.
Bruce Sherman
Chris C
There are a lot of GM skeptics out there. A lot of people believe that GM cars will automatically fall apart after warranty. I’m not one of those folks, I would suggest upping the warranty on more of your models to 5 years 50k miles. It would show the public that you folks really do have confidence in the quality of your products and that they should as well. It works exceedingly well for the Koreans. Don’t be afraid to spend a little more if it means having less recalls. I know recalling defective parts is expensive and embarassing as well. But I see the light at the end of the tunnel. The cobalt ss, H3, HHR, and Solstice are 4 cars I’d be happy to pay full MSRP for. You’ve priced them well, I hope dealer markups don’t ruin their introductions like they did the GTOs. I’m really looking forward to the gmt-900s, I hope you guys have something to turn the market on its ear.
inline6
Mr. Lutz,
Thanks again for your comments. I know that GM is taking a lot of hits right now in the media, in the stock market, and in the pocketbook. Your job must be rather difficult.
The thing that I’m most concerned about now is the future of the Buick line of vehicles. However, I realize you’re not going to tip your hand as to future plans for the brand now.
I don’t have to tell you about the clout that the Buick brand once held in the American market. Up until 10 years ago, Buick commonly sold more than half a million units a year in this country, sometimes approaching the million mark. And, at least through the early 1970s, Buick design was the embodiment of quality, beauty, and power.
However, besides the quality aspect, I fail to see how the latest additions to the Buick line (i.e. Rendezvous, Rainier, LaCrosse, Terraza, and Lucerne) communicate beauty and power to the customer.
The LaCrosse comes with a maximum of 240hp, while its platform mates for ‘06 get 303. The LaCrosse, while handsome, also looks eerily like the current Ford Taurus.
I take similar issue with the new Lucerne. With 195hp standard, and 275hp optional, I’m afraid that a car of that size will not keep up with the new Toyota Avalon, Hyundai Azera, or any Lexus for that matter. And the Lucerne, unless I miss my guess, is going to be costlier than the Toyota and Hyundai. Even the decidedly smaller Acura TL has 270hp standard. And the car’s styling, while an improvement, isn’t stirring. It’s very VW-like at the rear and Sable-like at the front. The front wheelhouse almost intrudes into the door, the overhangs are long, and the roof line is a little awkward. Now, I know that the designers have a 15 year-old platform to work with here, but I was hoping more beauty, more grace, and certainly more power.
The Terraza is only a Buick by trim and grille treatment. It’s only available with 200hp, while its competitors sport up to 255. It’s also selling poorly (less than 7000 units through April). I question the need for a Buick minivan in general, and I certainly don’t see much beauty in the Terraza, save the interior, which is in basic form shared with Chevrolet, Pontiac, and Saturn.
The Rainier also qualifies for this criticism. It’s merely a Bravada with a Buick grille tacked on. It isn’t selling well, either. The interior is rife with cheap plastic, awkward panel seams, and dated overall design. The QuietTuning may work well, but the truck has derivative styling and is on an aging platform shared with four other brands. At least it has a V8 available. But alas, it’s an option, not standard.
And finally the Rendezvous. This car has been sporting awkward styling and a less-than-refined 3.4 V6 and interior since its inception. The awkward styling has now aged after 4 seasons, and the optional 3.6 V6 model is rather expensive. It’s also falling out of favor with customers, as sales are about 20% lower than last year’s model. It severely needs a thorough updating with more sleeker, harmonious styling, more standard power (at least give us the 3.5L standard), refined chassis dynamics, and a class-competitive interior.
Mr. Lutz, the Century, Regal, LeSabre, and Park Avenue served the brand well, but did so for far too long. And I know that reviving Buick is a challenge because of the damaged image the brand now has.
So I thoroughly and sincerely respect your efforts to save the brand. I am convinced that it needs all-new vehicles on new platforms with bold, sexy styling and refined, powerful engines to do the trick. Please do the best you can.
Give us a Buick brand that embodies quality, beauty, and power in design and execution.
I’m 22 years old, sir, and I’d like Buick to be around and their products palatable enough for me to buy one new when I can afford one.
Thanks again,
Rhett
Josh E. Oliver
My suggestion is. Why the Torrent? This is a very typical GM practice of “badge engineering.” What exactly is the difference between this and the Equinox besides the front facia and a few badges here and there?
If Pontiac is to be the performance division, it would have come equipped with AWD and the Vue’s V6 although it IS sourced from Honda (and why is that?).
The HHR may be a fine vehicle, but is still produced in Mexico. Could you explain why? Especially when you continue to ask the UAW for concessions on healthcare while sending jobs down to Mexico and hey, lets not forget out the overcapacity that will soon be facing us from China.
Thanks to that great “Free Trade Agreement” which our Government refuses to hold countries accountable on.
And what’s this I hear? Toyota wishes to ‘help’ GM in our (I say our, because I’m an avid supporter of GM) troubles? How did this happen?
How can Toyota manipulate the yen as much as they do and GM’s leaders let it go by? I’m talking about more than Wagoner going to Capitol Hill and mentioning this. I’m talking about him DEMANDING something be done about this.
It’s not about the UAW. It’s not about the rising dollar. It’s about GM Management sitting on their collective a**es and doing nothing more than collection millions for doing NOTHING.
I’m irked, yes. I’ve said a lot yes. I’d like a response as I’ve provided (what I feel are) very educated questions.
By the way. Where’s GM’s plan for massive RWD? Hopefully it’s on page 1 of GM’s 15 play scrimmage page play book?
Josh E. Oliver
And one more thing. Why does Kirk Kerkorian have an interest in GM when his only motive in Chrysler was a hostile take over?
How can this man be in a position to purchase enough GM stock (as it falls over the next few months as it sure is to) to purchase enough, and break up the company just for the GMAC mortgage company? Could somebody please explain that? If you’d like to, you know how to reach me.
Tim Geisler
Dear Mr Lutz,
After visiting my local GM store (Punte Hills, LA Country, California) just to browse and see what all they hype about the new Cobalt and G6, I came to realize they still had 1 ‘04 GTO for sale along with 1 ‘05, they didn’t have any coupe Cobalts for me to see and only 1 sedan. As for the G6 it looks outstanding, but again the dealership only had 2 for me to see. And those GTO’s prices (if my memorys serves me correctly it was priced at $39,999)seemed to almost compare to the price of the Corvette. Which the Chevy Dealership also did not have any Vettes.
But all in all I’m excited to see new coming GM products. Also I have high hopes one day as a GM engeneer, so don’t let the media’s dreams become reality with the fall of a Giant, GM.
James
Bob,
While I am a GM guy at heart and I come from a GM family, I personally own 2 newer DCX vehicles. We switched to DCX because the vehicles we wanted were not available at GM.
Many times I have read that GM is seemingly blaming the customer for not buying the product. But GM has abandoned much of the market place. There is a lack of RWD vehicles, no Pony Car, and the HD trucks lack the ruggedness and durability of the competition. IFS vs. the solid axle Dodge and Ford 4×4s is just plain laughable.
Common guys, I want to buy from GM, but the products just aren’t up to the competition.
Edward Kariithi
Lutz, I have one thing to tell you!
NAVIGATION!!!
Why does GM think its wiser than everyone else? Japanese autos are offering navigation in economy cars.. Buick does not have Navigation in Lacrosse!!
Please make Navigation an option in all your vehicles.. PLEASE! It will help sales…
I need the HHR, or someting close to it.. The only thing I will buy a Mazda 3 is becouse YOU DO NOT OFFER NAVIGATION!!
I need it for my wife
saab9x
for the love of humanity, please hire better designers. the hideous chevrolet hhr is a cross between a pt cruiser and a dodge durango. be original. wasn’t anything learned from the failure of the subaru-based, saab 9-2x? if a new model can’t make its own statement, why bother.
now, back to what gm needs to do; it’s simple–give more than what’s expected and don’t take shortcuts.
why does it feel like gm’s ideas are created in a vacuum? figure out how to inspire potential consumers, not bore them. flooding the market with “aimless” new models is counterproductive.
Craig S.
Bob, don’t talk to me about product until you stand on your own and compete with Honda/Toyota. Don’t tell me to look at the G6 or Malibu. I drive a ‘03 Accord and it wipes the floor with those cars. Put the 3.6 VVT with a 5 or 6 speed auto in those cars and watch them fly off dealer’s lots. The 3.5 OHV and 4-speed auto get you lots of bad press, which with the G6 is not totally deserved.
NSAP
Someone commented that GM cars are “for people who need transportation, but don’t like to drive.”
I suggest that that person go and drive some of GM’s new performance models before opening his mouth. Go drive a Cobalt SS, Grand Prix GXP, G6 GTP, or any Caddy V-Series model. Then you can make comments like that.
GM is on the right path- product wise. Some of the people on this board still seem to think that GM’s latest products are lackluster, which is just shows that they have not personally experienced them.
I own a 2005 Equinox, and I love it. The interior is very nice, and of high quality. I just wish that you would have made remote start avaliable on it.
My thoughts:
-Get rid of rebadges!!! I know they are cheap and fill in product gaps, but in today’s market, they are not worth it. People want unigueness. And yes, I am talking about the CSV’s.
-The HHR is going to be a hit. I can see it, and so should everyone else.
-The upcoming Lucerne should not have the 3800. I suppose you put it in the car so you could continue to build the engine for the Grand Prix too. It isn’t worth the effort to put it in the car. The base powertrain for a mid-luxury car should not have a whimpy 195 HP. Make the 3600 the base engine for it.
Tired of the bashing
For all of you who think GM employees are “primadonnas”, here is my take…
I worked for a vendor for GM up until my 20th week of pregnancy, when I finally had to stop working or lose my baby. I was working 50-60-70 hours a week to make my project succeed. My husband sees his kids during the week for maybe 1 - 1 1 /2 hours each evening because he works his tail off to make GM succeed. Any and every employee I have come in contact with or directly worked with, works their fingers to the bone to make this company succeed. Luxurious business trips? Ha.. When my husband has to catch a flight on Sunday afternoon, a time I consider to be family time, to be at a meeting first thing Monday morning, I don’t call that being a primadonna, I call that being loyal to your company. Only once did he mention his coach airline ticket to ho-hum hotel was a surprisingly pleasant when the hotel gave a suite at the regular room price. Guess he lucked out that day, huh? I can’t even imagine the hours put in by Bob Lutz or Rick Wagoner. It makes my head spin to think about it.
Chris C
Hey, Bob -
I’m from Toronto. We’re dying up here. We sort of feel like the ugly debutante at the prom. Toyota and Honda are kicking our a**es up here. The Aveo and Optra have helped, but we’re bleeding to the Toyota dealers.
Perception is everything. You and I both know that it is the lowly Impalas and Malibus that sell - with automatics. But it is the motorheads on these sites that you have to make happy. It is the so-called auto journalists who all want to drive 6 speed manuals and 300 hp. Yeah, I know: not much fun to drive on the freeway in rush hour, eh? But they will whine until they get their way.
I’ve driven the Corollas and Camrys out there. I know GM’s cars are better. I’ve heard the Toyota dealers griping, too. You are on the right track, just find a better way to get the message out. Make something the armchair critics want, even if it doesn’t sell, just to get them off your back.
Oh, and please don’t wait 7 years between model changes, okay?
Jeffrey S Lloyd
There are many things GM does Very well and some Not so much.. I currently sell Nissan Branded products after years of working for Domestic Dealers. I can honestly say I like the lesser expensive Impala Over our own Maxima. but that is my personal taste. I like my sedan to have high value and the torquy motor and simple interior do endear me.. and it’s a very “drivable” car.
Having Brand Distinction is vital.. Caddy with the northstar and V series products technological coolness without the overwhelming Gizmoesque interiors that BMW and mercedes have been offering (and having problems with).
Pontiac. technological innovation at an affordable price. I’d like to see pontiac with more modern drivetrains then the comparable chevrolet models, chevy should be the simple value price point leader it has made itself out to be. pontiac should be more saablike eg. a prusuit in america, but offer it with the ecopower 175hp engine not the chevy SS model, Pontiac should be more saablike. and retain it’s earned “excitment” label.
Saturn I like making it more opel. The Opel product is awesome saturn can sell them here and PLEASE bring over the AWESOME diesel offerings. who could argue with a Ion Vs. Prius commercial “the new clean diesel L series gets 52 miles per gallon more real world mileage then the toyota prius, and costs thousands less”
ok enough rambling.. hopefully this makes some sense.
Jordan T. Marmara
The problem is GM doesn’t take risks, particularly with styling. Chevrolets should be vanilla, thats fine with me, they always have been (Minus the Corvette and Camaro, speaking of which…Where is the Camaro?). Pontiacs then should be all RWD or AWD optional with daring sexy designs. What Chevy is to Ford, Pontiac should be to Jaguar (well design wise at least).
Buick needs upscale options, HID headlights, Navigation systems, DVD players, etc. It’s great that you want to bring the average age of Buick down from Dead, to Vegetable-Status but you need to have the technology to back it up. Buick and Cadillac should be almost equals but aimed at different buyers. Cadillac towards BMW and Buick towards the Lexus side of the Spectrum. Caddy needs to have great handiling, sporty ride and tons of technology. Buick can do with a little less technology, but still have them as options. Buick should have a comfortable ride, QuietTune everything, supple interior materials and curvacious exteriors.
Take some risks and you will be rewarded, just make sure they are calculated.
RobiNZ Personal Blog
GM: The Game Plan…A Really Edited Version
Bob Lutz on
Italo
Dear Mr. Lutz,
Thank you for your post and giving us some insight into your game plan. I’m a huge fan of GM and it’s encouraging to hear that management is taking steps to reverse its fortunes. Though I agree with some of the folks who have already sounded off here in that it is kind of vague, I must concede that you don’t show your hand before it’s time. No doubt that GM has some plans in place, but better to keep it to yourselves for now and put the competition in check.
Nevertheless, if I were to ‘advise’ you — not likely to happen, but at least I’ll put in my two cents here — I would say that in this industry, perception is everything. We have seen this time and time again in any industry, but it holds especially true in the auto industry. Reality counts for nearly nothing, and everything is based on the perceptions that are ingrained in the court of public opinion. There is no doubt that the negative articles about GM over the past few months — both as a company and their product performance, weather warranted or not — have eroded some of this perception in the public eye. And no doubt it has taken a toll on the morale over at Renaissance Center.
But looking beyond the moment, I would say that if you want to change perceptions in the auto industry, you do not only have to deliver what customers want but also convince the auto journalists out there that you products are just as competitive as the imports. Now I know that you’ve been trying this for years and no amount of marketing and PR spin can actually placate these folks. And while I know it doesn’t happen over night, you need to start now to fix this. How? By being proactive - look at Toyota. Toyota sells a large number of SUVs and Trucks equipped with a 4.7L V8 that is both less fuel efficient and not nearly as “clean”. GM by contrast has some of the best fuel economy in this class, yet Toyota gets off as a “green” company while GM is seen as a horrible polluter with ancient engines. Why? Cause of vehicles like the Prius or Echo - fuel efficient and clean cars that are great PR pieces. Even though Toyota sells 50 times the number of trucks and SUVs than it does Prius hybrids, people will always think of Toyota Mr. Green for the environment. In this case the reality is that GM is probably better off than Toyota overall in this case, but b/c of the Prius, Toyota can do no harm.
GM is a great company with vast resources and technologies, yet there are things that nag at the common consumer and auto journalists especially - again perception! For example, GM’s family of OHV engines are terrific - smooth, torquey, and economical while getting good fuel economy for their size. Engines like the Gen IV small-block and 3800 V6 are nearly legendary in this business. But even legends need to step aside. The Gen IV is a great engine and must continue to be a staple in GM catalog of engines. The recent resurgence of Chrysler’s HEMI proves that OHV engines have their place.
Yet, when it comes to mass market vehicles that normal, everyday folks drive, I can’t help but wonder why it is that GM hasn’t made the move to OHC engines? I’m not saying this is the case with truck engines or sports car engines like the GTO or Corvette, but for mid-sized vehicles, MiniVans, Crossovers, etc. GM should start to push OHC engines. Don’t get me wrong, I understand that OHV engines are cheaper to produce, maintain, fix, typically have competitive fuel economy (albeit in larger displacement form), have great low-end torque and help GM’s CAFE regulations with Uncle Sam. And though I enjoy these OHV engines, a number of auto journalists complain about them, say they are inferior and generally give them lukewarm reviews in vehicles like the Malibu, G6 and Terraza.
One other important factor is that GM needs to stop giving auto journalists a reason to put you down. It’s better to be proactive than reactive in this regard - to prevent potential customers from getting swayed away from your products. Whether we like it or not, auto journalists set a tone that many in the public follow; their opinions (even if biased or skewed) hold true for a larger number of consumers. With this in mind, I would advise that GM needs to start creating more OHC engines to quell this criticism and stop giving the writers a reason to criticize. Besides which, by putting these new engines in such large volume products, you will be ensuring your best engines are making it to a large percentage of the population.
Another area that perception needs to be addressed is in the “sportiness” of specific products. I am a young man, 26 years of age, who loves vehicles with good handling and powerful engines. But what good is the perception of these vehicles if they are not offered with a manual transmission? To me it’s incredibly disappointed to know that GM will offer a Grand Prix GXP with a great V8 engine - but you have to make due with an automatic. What sense does that make? Why doesn’t GM offer more manual transmissions on their mainstream vehicles and not just on econoboxes, sports cars and trucks? I know that the majority of Americans would rather have an automatic - you’ll get no argument out of me there. But the perception a vehicle - and not necessarily the reality of the consumer - is what sets the tone. Again, auto journalists are an incredibly vocal and opinionated group of people who reads flock to before making a purchase. If the perception of a vehicle is that it isn’t “sporty” due to an automatic transmission being the sole offering - even if the consumer themselves would rather have one - it tarnished the “perception” of a vehicle.
Even with this point aside, however, it’s no secret that younger buyers like manual transmissions. Case in point is Honda where half of all Civic sales have manual transmissions or Jetta/Golf sales where a similar number of folks opt for a standard shift. Even luxury car marques the 3-Series has a 35% take on manual transmissions. With median age of your consumers going up an up on select brands or market segments, I would suggest you reverse this with exciting styling, great engines and handling - and a manual transmissions.
What is even more upsetting to consumers like myself in North America is that you already have many of these transmissions in place in markets like Europe and South America that can handle the power and torque in some of these vehicles. H**l even Ford offers a manual on the new Fusion and the imports do as well. If I were in the market for a mid-sized car right now, there wouldn’t be one car out there that has a V6 w/ a manual right now - and as a consumer that would make me go and look at a foreign car like the Altima, Accord or Passat when I’d rather buy a domestic. Sure the GTP version of the G6 will have a manual - but why not the base V6 so consumers like me can afford it? Why not on the Malibu?
Thanks Mr. Lutz for listening to my rants. I’m sure you have better things to do than read my comments, but hope that they are somewhat useful. The offerings GM has out right now are very good - but the perception of these vehicles needs to improve before you’ll win over any converts or win back market share. I suggest that you don’t give the journalists, writers or consumers of the world any reason to doubt your ability to deliver quality products. Perception is everything.
Thanks,
Nick De Palma
Justin Berkowitz
GM products at this point should be good enough to compete with imports. But image is still not on GM’s side. What to do? First, much like universities pander to US News, perhaps it is worth pandering a bit to the automotive press. That means it is worth putting the 3.6 liter V6 in every car, because regardless of how good the 3800 is, they all insult it.
Secondly in terms of image, I believe GM needs a consistent and powerful marketing campaign. We all know having good products is not enough - you need to make them desirable and get people into the showroom.
Greg
The GTO is not a competitor to the Mustang, no matter how hard you try to classify it as such…in fact, I am not really sure what it competes against - perhaps the Charger.
There is only one competitor for the ‘Stang and that is the Camaro. Period. I sure wish that GM would give us a little faith in their plan by hinting at when the new Camaro will be coming out.
Tom
Mr. Lutz,
I’m so glad you mentioned the GTO. I’m hoping it becomes a long term model in the GM line-up. The GTO is 95% perfect. I know you’re tired of hearing this, but if the styling was tweaked a little, I would not be able to stop myself from buying one. And when that one wore out, I would probably replace it with another one. Again and again.
BTW, please consider an AWD option for the GTO if it’s technically feasible. Also, the auxiliary input for the sound system is an EXTREMELY welcome addition. I only wish it was hidden in the center console storage so it wouldn’t be necessary to unplug everything when parking (to hide stuff from thieves).
thecarguy
While GM has many structural issues that they must confront, I agree that product will play a big part in their turnaround. While GM has new SUV, pickup, and full-size crossover SUV product coming out in the next couple of years (and I certainly hope that it is good product), one has to question why it has taken GM so long to bring this product to market. GM finds itself in its current financial predicament partly because of the product gap that exists in 2005. GM really needed its new GMT900 truck program and full-size crossover vehicles much sooner. The real question going forward is how will GM bring new product to market with greater speed and efficiency? I believe that new product in 2006 and 2007 will help GM’s financials, provided that the product is very good. What about 2009 and 2010? Will GM experience another dry spot in new product introductions? Will the market need to wait 7 - 8 years for the successor to the GMT900?
As for product, GM needs to take more design risk. I am awe struck by Chrysler and the 300C. I believe that the Charger will have the same type of appeal. What is even more impressive is that Chrysler was able to take a single platform and common powertrains and make two very distinct vehicles, appealing to two very separate and distinct segments of the market. Ford and GM would be wise to take notes and learn from this example.
The product that GM has been launching lately hasn’t been overly exciting, but I do see some reason for hope. The Solstice and the Sky are just drop dead gorgeous, but other more mainstream vehicles have fallen short of the mark, in my opinion. While there haven’t been anymore Aztek’s, vehicles like the Lacrosse and G6 are okay. They aren’t offensive, but they don’t really stand out in the sea of vehicles that are out on today’s highways either. I find it somewhat frustrating that more cannot be done with Buick. It’s price points are higher than average, with solid product Buick should be able to be a very profitable division for GM. Instead sales and market share continue to decline.
Looking into the next decade, it will be imperative that GM diversify its profit and revenue streams away from full-size SUVs and Pickups. As the baby boom generation ages and moves closer to fixed incomes, they will be looking for comfort, utility and value. I don’t believe that the utility aspect of owning a vehicle is going away as people age, but ride comfort and value will become much more important. This would put full-size crossovers in a perfect position to capatalize on this demograhic trend. GM needs to position itself firmly in this segment with Lambda. GM will also want to look at ways of providing value to this segment, as we will likely see migration of boomer buyers from luxury toward more value orientated brands. What this means is that boomers may have a greater propensity to opt for Buick or Saturn over Cadillac, but the product needs to be there. Another good example would be the Acura MDX and the Honda Pilot. While luxury brands have performed very well during the baby boomers peak income and spending years, I believe value will be come more important in the future…. so while the MDX is a very nice offering the Honda Pilot provides much better value. Next decade will also bring a resurgance in small car purchases as the number of echo boomers of car driving age increases. Toyota is already trying to cultivate this market with Scion. It will become increasing important for automakers to have a competent line up of small cars. Automakers that will benefit from this trend will be those that can produce and successfully market creative small cars profitably. GM will need Daewoo to do this and should begin to leverage them now, with more than just the Aveo.
This is not meant to be critical of GM. Rather, my comments are meant to provide contructive feedback. I would like very much for US automakers to once again regain their competitive posture. This can only be done through developing stong product and bringing it to market expediently and cost effectively.
John Decherland
BOB:
READ DAVID EAGLE’S POST, SUBTRACT 13K, THEN YOU WOULD HAVE THE YOUNG MAINSTREAM BACK.
Brian
Where are you plans for RWD cars Mr. Lutz?
CCRyder
Mr. Lutz,
Thanks for letting us know that you and your staff really do read this stuff.
Everyone should understand that you cannot give out details about upcoming plans.
I do agree with other posts that the GM dealer experience can be brutal, however, not all GM dealers are bad.
You really do need address the bad dealerships because people need to test drive your cars instead of reading bad press about them.
People: YOU CAN’T BELIEVE EVERYTHING YOU READ!!
I also have one suggestion about how to develop new products: Get some young people in there and trust their judgement. The old school way of product development and marketing is not going to work with the young professional people that you need to purchase your cars in the future. I remember reading that you (Mr. Lutz) would not have approved the 300 if you were still with Chrysler, and that you did not like the edgy styling of the CTS. Hmmmm, these two cars seem to be doing quite well….
I think you should do a mid-cycle enhancement after two years on EVERY vehicle and a full refresh every four. Don’t let your products get stale. No one wants a new car that looks like his neighbor’s 5 year old one.
And, can you bloggers please proof-read your posts? When I read a comment with a bunch of misspelled words, I automaticlly disregard it as worthless babble.
Robert Schroll
The ‘05 Malibu Maxx LS I rented last weekend earned me an undeserved ticket for squealing its tires while accelerating in a left turn.
I will buy no GM products.
I will not buy front wheel drive.
Chris
Saturn-style experience at all GM dealers and longer standard warranties. Do it now before someone else does, or you will always be seen as followers instead of leaders.
Jeffrey Lloyd
One thing The plan needs to address is the horrable inacurate reviews that supposed “automotive Journalists” put out.. I guess the free cruises Toyota gives them pays off I sent this to automovile mag because I was so disgusted.
I was reading this review off the Malabu SS
http://www.automobilemag.com/auto_shows/2005_new_york/0503_chevrolet_malibu_ss/
I read
“The engine is the latest version of GM’s trusty (and
rather wheezy) OHV V-6, displacing 3.9 liters and
making 240 horsepower and 245 lb-ft of torque. The
numbers are good enough, but we haven’t been bowled
over by the latest versions of GM’s OHV six.”
did this make publication?… as of this date to the
best of my knowledge No one has driven a 3.9 equipped
malabu so how is it known to be “WHEEZY” second the
240hp 3.9 is supposed to be a DOHC design.. does
automobile Magizine make it a point to down GM
vehicles before they can even get their facts
straight? How am I supposed to trust this publication?
Jeffrey Lloyd
Dennis Schrage
Bob
Build us some Rear wheel drive V8 powered cars, Fire all the current designers and front wheel drive supporters and get some new blood in there. You need a revolution like GM had in the 60’s. Rear wheel drive, Big v8’s and cool body styles. That is the way to sell, Your current plan is doomed. Ford and Chrysler already understand this and are making the changes, Why aren’t you?
FH Alexander
Bob -
Your comments are filled with attempts at inspiration and I do wish you all the best in revitalizing your troops of buyers. However, I fear you’re only motivating the people who are already in your clubhouse and you’re not attracting any outside buyers.
I went to Northwood in Midland, MI. I received the Edward N Cole award named for the former leader of your very company. One thing I remember most about NU, and our outdoor auto show in particular, is that the GM booths were always full of cars and people perused them, but nobody flipped out over them.
Your HHR is a good attempt at reaching out to the cool market. But if you notice half of the people who drive Scions aren’t young people they are old people trying to pretend to stay young, which is exactly what happened to the PT Cruiser, and that’s probably what’ll happen with your vehicle as well. Someone on this blog commented about how they are going to purchase a new Mazda 3 and if you want to “copy” a car that would be a good place to start, not the Scion.
I don’t like/dislike Ford any more than I do GM, but what they seem to finally be figuring out is that young people today aren’t into the “hippest looking cars”. Those cars have their place, it’s called Europe. The 18-28 year old US car buyer thinks of them self as a successful individual and wants something that’s cool, but is also very nice in their eyes. Why do you think the Mini took off like it did, it was an affordable BMW. This is the same reason the Jetta will always do well, people view it as a nice, reliable, quality car that with a decent job they’ll be able to make a payment on.
Until GM can remind, re-invent, or repackage their product to convince the public that there is quality and prestige in owning a GM product you don’t need to worry about what they look like or cost.
I love the blog; I added it to my RSS feed so I’ll be watching y’alls progress. All the best in turning the corner and revitalizing what is clearly a sinking brand…fh
stambaub
Once a new blog comes out, comments regarding the old ones appear to lose any attention. Because of that apparent fact, I am redirecting my comment regarding the HHR to this ‘current’ blog.
First, you’ve over-blown the base price of the HHR by $2,000 from what was previously predicted.
If $2,000 rebates are part of your marketing plan to get the sales of the HHR off to a quick start, then I understand the pricing. If not, then you are not only making a major mistake, but also ignoring the “drop the MSRP and eliminate the rebate” suggestions which would be a welcome change in marketing philosophy.
Second, ‘crank up’ the assembly line in Mexico with three shifts, and flood the market with HHRs. Greatly expand the color availability to include: ‘pastels’, enamels and flats. (There are no greens, browns AND NO NON-METALLICS other than White or Black shown on the color chart.) There were NO 1949 Chery Suburbans painted with metallic paints, and there should be more non-metallic color options available on the new HHR. Care to comment?
Third, bring on AWD, hybrid and performance versions ASAP.
The HHR has the potential to become the early 21st Century version of what the VW Beetle became the late 20th Century.
Joe R
Bob,
You are right about product being GM’s salvation…full speed ahead. GM needs great product…period. I like some of your new niche cars, but you also need a few cars with huge volume potential: a true accord and camry fighter (something better than the G6); a mid-priced car-based SUV; entirely new mini-vans; and some revamped pick up trucks. And you need them fast!
I am sure you are tired of getting business advice from us bloggers, but, sorry, that is the nature of the blogsphere where everything is up for discussion. So here goes: for most buyers 35-years of age and below, Pontiac and Buick brands are completely irrelevant…we only have memories of mediocre Grand Ams and geezer Le Sabres, respectively. For older buyers these makes have legendary backgrounds (and pleasant testerone-related memories), but in a generation or so, except for a few, no one will miss Buick. Ditto for GMC. To me, Saab and Saturn still have great potential and only need better product and smarter marketing. Of course, continue to strengthen Chevy and Caddy.
So now I am going to “out” myself at some risk from GM loyalists: I now drive a 2004 BMW 330Ci(coupe with 6-speed manual)and look forward to the day when I can buy a car from GM with the same level of engineering, quality, handling, design, balance (50/50 weight distribution), refinement, efficiency (20 mpg +), and all-around performance. Until then, I am not compromising; in order to win over customers like me, neither can you. I am rooting for you and GM, and hope your efforts will make me a GM customer within the next five years.
Boris
Hello,
I was curious if any dealer revisions are part of GM’s edited gameplan? Other brands spend excessive amounts of time designing flagship retailers but I have never seen one of these from GM (particularly in reference to Cadillac). The Audi dealers with their cafes… BMW dealers with their internet lounges — upscale services are offered to upscale customers.
I think this may be a small part of the overall problem. My local GM dealer has STS’s sitting next to Aveos, all in the grandeur of a 1980’s style showroom. This is an area holding GM back that I have never once heard being addressed. It’s great that emphasis is finally being placed on product but I’ve heard no regard toward dealer experience.
Cadillac is now an extremely capable brand, able to hang with the German makes — we all know that. Unfortunately, those great new Cadillacs are crammed into showrooms filled with Chevrolets, Pontiacs, and GMs other brands.
I think that for Cadillac to be taken seriously, it should be spun into a unique dealer entity. I’m not saying Cadillac should be a stand alone, but I think it should at least have personally designated showroom space (ala Scion and Toyota). Another thing would be to perhaps encourage ‘foreign’ car dealers to engauge a Cadillac franchise.
Dealer’s exist that carry Audi, BMW, Volvo, Mercedes — a consumer looking for a vehicle in those segments is saved a lot of time by going only to one dealer and checking out a variety of brands. If Cadillac could tap into those retailers I think it would do nothing but benefit — it would definitely help to give Cadillac the unique identity it is striving for: a competitive luxurious brand, as opposed to luxury GM.
Thanks,
- B
loudpedal
What you spell out here is all important basic work which I believe must be done. A car company without good, exciting cars might as well hang it up. GM had me as a customer for life. I grew up in Flint, MI, all of my friend’s dads worked at GM (except for one who drove a Ford and was mercilessly persecuted…). We all loved our GMCs, Chevys and Pontiacs. I started working with GM as a supplier in 1989 and loved that too. In the last six or seven years, things turned bad as GM’s short-sighted corporate greediness reached into the stratusphere. I left the auto supply industry about a year ago figuring it wasn’t worth the hassle. I can tell you that among my co-workers, GM made enemies nearly every day. And with me, GM has gone from the car of choice to the car I almost won’t consider. Before you dismiss this post as one from some kind of loser working at a hack company, let me tell you that the company I was at won GM’s Supplier of the Year (in a particular commodity) for several years in a row. We had great products. Also, my friends who worked with Toyota and Honda would listen in horror as I recounted some of the heavy-handed tactics of some of the GM (and Ford) assembly plants. They always said that their customers would never stoop to those kinds of actions.
GM has a lot of suppliers who could be potential customers. It would be wise to understand the differences in how GM and it’s competition (read: Toyota and Honda) deals with them.
Nicholas Seman
Hi Bob:
Just a quick GM Marketing comment - I have owned 5 new Pontiac Trans Ams over the last 19 years. So what kind of marketing information do I receive from GM? Buick.
My Mother’s last four cars purchased new were a Pontiac Vibe, Grad Am GT, Grand Am, Safari Wagon. What kind of GM Marketing information does she receive? GTO.
Now I did not go to Wharton, but I am pretty sure that even I could do better than that.
Thanks;
Nick Seman
Martin
Regarding the HHR, I purchased one of the very first PT Cruisers in 2000, and still have it. I bought because of it’s looks, but it lasted this long because of it’s utility and–surprisingly–it’s interior quality. It is amazing for a $16K car. The HHR will sell because of its utility and price, but I believe it’s long term success will be tied to it’s interior quality; that is what owners see every day. It doesn’t have to be Lexus-like, but a few details go a long way. Hopefully the HHR interior will be better than the Equinox, which frankly looks cheap and fragile.
Interior quality aside, the timing of the HHR’s intro cannot be ignored, I mean it is 5 years after the PT Cruiser craze (and that was crazy for 18 months). As a long time owner in this segment, I think the only thing that will sustain sales after the initial “look at that thing’ phase is the ‘utility for the price’ characteristic. You should push that.
I for one am moving on to something else next year, a near luxury sedan. I’ll check out many of them at the AutoShowinMotion next weekend in Foxboro (a great idea, by the way), so GM’s products will get a look. However, I wonder how the CTS and LaCrosse can really compete straight up (including price/value) against the G35, Maxima and the new Zephyr.
Bart
Dear Bob,
Thanks for chiming in again. I again applaud your teams involvement in the blog. I received a response from one of your engineers and I was impressed that they took the time to write.
I am not going to criticize as you have plenty already to absorb. I would just say that I hope your plans include trimming down models and trim levels, so that your teams can focus their efforts on bring additional quality to the succesful models.
Good Luck !
Go Pistons
CCRyder
The HHR is sweet, with a great engine!
I agree with stambaub, more colors would be nice.
It will be my next vehicle.
Tim Joseph
Mr, Lutz,
You talk about great cars. You talk about How well GTO sales are going. The question on so many minds, will there be a 2007 GTO?
Tim Joseph
President, Performance Pontiacs of the Carolinas GTOAA Chapter
Christian Aviles
Funny thing, its obvious a lot of us out here think alike, because I see a lot of the comments have touched the same topics I thought about after reading your BLOG.
The description or your plan is rather vague. Almost like saying, our plan to get better is to get better.
I think quality product all around should be the number one priority for GM thats pretty obvious. But we know GM is capable of it because we see what has happened to Cadillac and we’ve seen the Corvette for a while now. But when I say all around quality I think it should include styling. The GTO is a great product that is poorly styled. Although the 2005 face-lift has helped a bit as shown by your increased sales, lets face it the GTO wasn’t the hit GM expected and one of the reasons is poor styling. Styling helps create an emotional response that will at least create interest in a car. Great example of this is the much asked about Solstice. No one has any idea yet just how great of a car that is, but everyone wants to know.
GM needs to market itself to change public perception. Quality products will sell very slowly if people don’t think they are quality products. Extending the warranty on vehicles I think is a great idea, its kinda like putting your money where your mouth is. And if they’re truly quality products shouldn’t be too costly. It worked well for the Koreans. Pricing smarter so as to not rely on so many rebates helps too. Rebates make some people wonder why a car needs to be rebated to sell.
I guess there really is a lot to be done. Lucky for me I’m not Bob Lutz and have to think about all the work ahead of me. Then again its too bad I’m not Bob Lutz because I’d love to help make some great cars.
By the way as everyone else who loves cars wants to know, when do we get to know more about the Solstice? That car has HIT written all over it, but how are you going to control market adjustment pricing? When are people going to be allowed to drive them. When is the supercharged version coming out? Less talk more Solstice!!!!!!!!
Chris
Speaking of the GTO, why’d you go and stick those lame hoop scoops on it? Just when you were starting to de-cheese Pontiac, they fall right back into their old habits. Try some plastic body cladding, that was classy stuff.
Chris
Bob, thanks for the Blog.
Your marketing people really need to get out in the market to see what the people WANT, not what GM THINKS they want.
Also, fix the UAW mess. It is painfully obvious that they are the vampire of the auto industry. Then reinvest the funds into product development and superior materials.
And please, keep the GTO in production for many years to come.
Chris
Terry
Quick suggestion.
The heck with putting the 5.3 gen3 in the Grand Prix, put it in the mini vans and the Lucerne instead.
Why follow, go where the other guy isn’t.
Gen 3 or Northstar? Gen 3 in a heartbeat.
Keith
I’d like to agree and disagree with Nick above. In terms of manual tranmissions, I have to agree. Get more 5 and 6 speeds available and not just on the top end motors.
A good friend of mine just test drove the Maxx. He loved it, especially the engine (200HP/200ft-lb). This engine is certainly sporty enough for a manual tranny. You might even consider a hybrid drive ratio design. Do a six speed with 5 sporty gears and make the overdrive significantly higher, with the aim of improved quieting/fuel economy. Bring the RPM down to ~2000 @ 65-70 mph.
Where I have to disagree with Nick is in the engine department. I believe GM should tout the advantages of OHV. I am sick and tired of high revving low torque engines that are over-aspirated. They have to rev like crazy to get any torque and they bleed fuel. When I found out (earlier reading on this blog), as Nick seems to know, that they cost more and are harder to maintain I just don’t get it.
But then again the only thing I don’t like about my Kawasaki Concours is the lawnmower-like sound of the engine (that has too much power if anything).
There does seem to be a young ‘fast and furious’ tuner market for motorcycle-like car engines. If you are going to do OHC engines, shoot for this market. Maybe in Saturn Red Line, or low end Pontiacs. You could aim a Sunfire replacement at the tuner market?
Another observation I’d like to make is that there seems to be a reversal of themes going on in the car business. I used to wonder how much of Toyotas quality came from having tamer customers. The 80’s Corollas had the most spindly tires and supsension systems. In the mid-90s it was hard to get a car with better than 150HP/150ft-lbs. Now it is hard to get less. It is not clear to me that typical buyers will want more than the Maxx engine. But Altima, Accord, and Camry all go to the 250 HP range (undoutedly with OHC that revvs to high, doesn’t get the torque it should, and gets lousy Torque/MPG numbers). I think GM would be wise to create a pragmatic niche here and leave the ‘crazy’ HP/torque options for SS, GTP, V and the like.
My car? I drive a 96 SAAB 900SE when I’m not riding. The engine gets decent torque ~170 ft-lbs and MPG (>30 highway), but has to be above 2000 RPM or it is dead (which bugs me).
E Chiu
If you are looking for the fastest and cheapest way to improve the perception quality, do this right now, put in a better looking steering wheel for G6, Corvette, Malibu, most of the SUV.
This is the part that people touch all the time during driving. To me, I want to touch something nice instead of some cheap crapy stuff.
Don’t worry about the cost. If it cost an extra $100, raise the price to cover it. People are paying 5 figure for the vehicle, I don’t think they mind to pay an extra $100. Guaranty your vehicle will look much better if not driven better.
Wimzy
Offer the exciting interiors of the 60’s; offer more color choices; increase the warranty — time and scope; offer better tranmissions - manual and automatic. I an entitiled to the GM employee price but own a Honda.
Steve G
More ideas:
For Cadillac, the wreath and crest seems out of place with its new image. I would keep the crest but put it inside a black circle. The scripted Cadillac needs to be changed to a more modern font.
The front grill of all the Caddy’s need to be changed, except for the XLR and V-Series cars.
Make sure that every car has a hand operated parking brake. You want to give an image of being a car for old folks? Then keep using a foot brake-its ridiculous.
The Cobalt Sedan looks strange. The cut lines at both ends are at a wierd angle to the bumpers. They should be vertical like every other car on the road.
Since you did the dumbest thing in decades by killing the RWD Zeta Platform (whoever came up with killing Zeta should be out of a job), you still have the Kappa platform to work with. GM needs more RWD cars, period!
Make AWD an option on all your midsize car lines. AWD is the next big thing. Take advantage of your part ownership of Subaru and use their systems and they should not cost more than 2 grand more than the regular versions.
Speaking of Subaru (and even Daewoo), how about using some of their 4 cylinder engines?
I think the HHR could be a hit if you position it against the Scion Xb. Why drive a box when you can drive in style? Drop another Grand off the price, though.
All new platforms and suspensions on any vehicle that gets a name change. Better yet, STOP changing names!
Rebadge the G6 as the Grand Am G6. The 4 Cylinder model can be called the Grand Am G4.
The current GTO should be the base for the next Grand Prix.
Oh, yeh, 10 YEAR WARRANTY.
NO ELECTRIC STEERING.
HIRE BETTER DESIGNERS.
Sorry for yelling but I’m not sure you guys are getting it!
Steve G
Someone above asked which 4-5 models we would like to see return. Here are mine:
Chevrolet Camaro
Chevrolet Chevelle (4 Door RWD)
Pontiac Firebird
Pontiac Tempest (4 Door RWD)
Buick Riviera (What the Velite should be called)
Buick Park Avenue (to compete with lexus)
Cadillac Coupe Deville (Retro)
Steve G
What does everyone think the product lineups should be?
This will take awhile but this is my plan:
Chevrolet (Bread and Butter Division)
Aveo
Cobalt
S3X (To go up against CRV and RAV4)
HHR (Personally I wouldnt have done it-kill off if doesnt sell well)
Camaro(RWD)
Chevelle(RWD)
Monte Carlo
Impala(Bring back Round Taillights)
Equinox( may not need with S3X)
Trailblazer (Redesign)
Silverado (Redesign)
Colorado (improve interior)
Yukon
Suburban
Venture (change name back from Uplander-improvements needed though)
Pontiac (Sporty looking):
Pursuit (version of Cobalt)
Vibe
Grand Am (G6)
Grand Prix (RWD)
Firebird
Tempest (RWD)
Solstice
NO MINIVAN
GMC:
Keep as is
Buick:
Regal (LaCrosse)
LeSabre (Lucerne)
Park Avenue
Ranier
Rendezvous
Terraza
Riviera (Velite)
Saturn (Geared towards Imports):
Ion (completely remake)
Aura
Sky
Relay
An SUV
Cadillac:
CTS
STS
XLR
Smaller SUV than SRX
SRX
Escalade
Thats all i can come up with for now. If one division needs to be axed I would get rid of Pontiac because its the most redundant.
Saturn still has a fresh image and can connect with people who won’t buy what they feel is a stodgy American brand. As long as the cars are magnificent like the Sky and Aura look to be. The Ion and Relay will either have to be radically improved or killed off.
Buick can still be positioned against lexus and Infiniti while Cadillac takes on BMW and Mercedes, but Buick’s styling and interior quality will have to radically improved-NO fake wood and better looking steering wheels for instance.
I also suggest getting a new advertising agency.
Cadillac needs to get rid of that Led Zeppelin song already. How about switching to The Doors’ Break On Through To The Other Side?
Kramer
Vice Chairmain Lutz,
I’m a GM fanatic and I would like nothing more than to see GM attain the 50% market share it once had decades ago. If you don’t mind, I’ll go ahead and tell you how. 1st: Sell SAAB to the highest bidder, but still maintain a stake in the company. 2nd: Phase out Pontiac Motor Division. 3rd: concentrate on Chevrolet. The Cobalt is an excellent car by all standards, but it needs improvements. I would make the steering more communicative and weighted better- with more positive feedback. I would also add more chrome and high-quality touches to the interior. More upscale gauge faces, slicker shifter, chrome door handles, and more sound insulation. Camaro: 2 body styles, 2 trim lines (coupe and convertible), RS and Z/28. 110.1″ wheelbase, 187.0″ length, 72.3″ width, 3425 lbs. (Z-28). 3.9L V6 with 245 hp/255 lb-ft, and 5.7L LR1 V8 with 325 hp/375 lb-ft. 6-speed manual and 6-speed automatic. Live-axle rear suspension that handles nicer and rides better than the Mustang. Retro styling exterior with heacy inspiration from the 1969 model (the most loved of all 35 years). Impeccable build quality with 2mm panel gaps and a paint job on par with Lexus. The interior will be the best part. Build quality/fit-and-finish/materials/panel gaps/touch and feel- all on par with the Lexus LS430/GS430/IS350/SC430. Recaro bucket seats with the best leather in the business. All the features of a Toyota Camry Solara in the interior. 54 cu. ft. volume up front and 36 cu. ft. in the rear. Dependability/durability/reliability and resale value should be your number one priority. Setting a new benchmark in these fields would revolutionize the car in general. Does the term “Standard of the World” mean anything to you? If you show the world you can build a car better than the Europeans and Aisans, and back it up with everything that they do better than us- people will flock to your showrooms. GM does need help, and you can’t rely on heavily-invested FWD G6 and Lacrosse to spurt you ahead of the competition. You need an example to show GM’s massive improvement over the last 40 years of engineering. This may sound like a long shot, but please put me on the team to engineer the Camaro. I promise you, once this car is on the streets you could be seeing 180 maybe 200 thousand people buying Camaro’s. If you take that formula and invest it into every car and in a decent amount of time, you are back on top. Thanks for your time. Next time you’re in Chicago, drop me an e-mail. Andrew A. Kramer
Edward Hayes
Please!!!
NO MORE SWISS CHEESE PRODUCT STRATEGY.
SLOAN SAID A CAR FOR “EVERY PURSE AND PURPOSE” AND YOUR PROBLEMS YOU ARE HAVING TODAY STEM FROM THE HOLES YOU LEFT OPEN.
NO CAMARO/TRANS AM FOR ECLIPSE/MUSTANG
NO CAPRICE FOR DODGE CHARGER
NO EV1 FOR PRIUS
NO FIERO FOR BMW Z3
KEEP WORKING ON THE ULS FOR MAYBACH
NICE REBOUND IN CROSSOVERS
THE MINIVAN SEGMENT; STOP GIVING IT AWAY ALREADY!!! ANSWER THE SIENNA, CARAVAN, TOWN & COUNTRY AND ODESSEY WITH DISTINCT AND CLASS LEADING VEHICLES.
TAKE CARE OF THE HOLES IN THE DAM AND THE DAM WILL NOT BURST.
COVER EVERY SEGMENT ALL THE TIME. YOU CAN NOT PREDICT WHAT THE CUSTOMERS WILL WANT TOMMORROW.
roger strassburg
Mr. Lutz: I am 51, married, and need to replace two personal cars, used mainly for commuting and pleasure driving. I am a lawyer and, as a kid, was a car nut, going so far as to build (with the help of an indulgent father) a kit car in high school (a Fiberfab GT on a VW frame/motor). I subscribe to Car and Driver, still, so maybe I still am a car nut. My wife and I own two domestic vehicles (a LeBaron and an Expedition)and one foreign one, a Toyota.
I have shopped the foreign and domestic dealers for new cars, four or five place sedans. I travel a lot for business and have rented a number of GM products, Chevys, and Pontiacs. I have been very impressed with the build quality and reliability, particularly in light of the 1983 Buick Regal I owned (and liked a lot, generally). The new GM cars seem strong, no rattles, run smooth, with good road feel, and tautly sprung for passenger sedans, even though I don’t much care for front drive. It seems to me that GM is doing so many things that are right and quality driven with payoff that is obvious from the products. I havent bought any, however, though I very much want to support the domestic mfrs, particularly after learning about GM’s contribution to the relief for the victims of 9/11, where the foreign makers did not. I own some shares of GM stock and have not increased them, either. The Fiat settlement frankly eroded my confidence in the sagacity and toughness of management. Kerkorian may well sense this too. But you know all this.
Still, Carlos Ghosn has been quoted in the press as saying that there are few problems of a car company that product won’t fix. You seem to know this too.
I suppose I should be writing FOrd since I own and very much like my Expedition. After seeing the redo of the T-bird, Mustang, and GT, it just doesnt seem to me that Ford has any openness to new designs and ideas. They seem interested in repeating the past. I don’t think that will be a good strategy for them.
You seem open to building cars that don’t have to look like ones GM built before and don’t seem to mind customer or customer to be feedback. While I don’t expect an answer given the volume of mail you must get, I thought I would try to give you my reasons for my reservations about your products for whatever benefit there may be.
1. GM’s product line suffers from overly conservative design, both outside and inside. The production cars seem generic. There are some differences with the Japanese or German rivals, but, except for Cadillac, the differences are incremental and lost in the bustle of the market, whatever the advertising says. For example, the GTO to my eye simply resembles Hondas and Toyotas, which have better reputations for quality. Only Cadillac is noticeably different, though you seem to have chilled your boldness with the STS. I don’t think GM can afford to continue building cars that look like every one else’s however big a retained earnings account there is.
I don’t think that quality is your problem. What people want, I think, is a car that is stirring, visually exciting for a fair price. And, why should customers who only have $20k to spend have to be satisfied with cars that are not boldly and innovatively designed with quality interiors? Why don’t American cars have a distinctive appearance that stamps them as products of the optimism and daring that made the last century the American one? Why not throw caution to the winds and bring to market the most outrageous looking cars that the Company’s designers can create? Isnt it really riskier to keep building cars that look not much different than those of Japanese companies with better reputations for quality or German ones with better cache (not that they deserve it)? The difference between the design of your cars and your rivals ought to be dramatic, stunning, and obvious. Otherwise, I wonder how much longer GM can keep going. If you embolden your designers and do stuff that is really new, you could own the market, especially now that Mercedes has stumbled in quality– mostly software.
2. You still have a lot of good will. Everyone I know who now drives an import, used to drive an American car usually a GM and was disappointed in the quality. But it will take the design to lure them back. Toyota builds the dullest looking things on the road and people buy them for fear that other cars will fall apart. At least the Toyota will be reliable, if boring. Why not do outrageous designs that really catch the eye. Your company is conservative. What appears outrageous to your management may be nicely innovative in the market today.
3. Interiors. You evidently are all too aware about this aspect and the new Corvette shows that youre doing something about it. But, I sat in a Mercedes and was taken with the interior trimmings. All that mighty engineering and what caught my eye were the stitching in the leather around the dash, the satin finish wood stips, little metal bezels around the instruments. It all breathed class, quality, and substance, even if the rest of the car was no big deal. I wonder, why shouldnt Chevy owners get the same kind of feeling when they sit in the interior. The Lacrosse is getting there, but it still looks like plastic inside. Why can’t plastic look and feel like leather and real wood? Why can’t the wood trim have a satin finish that makes it look real. Maybe it ought to be real leather and real wood. Why shouldnt all GM’s customers experience the kind of interiors that the most expensive cars have? Youve evidently put a lot of effort in new plants and engineering that turns out solid and well built vehicles. But the part of the product we all interact with all the time is the seats, door handles, and interiors. That experience can either be winsome or irritating, no matter how great the engineering under the sheet metal. As I get older, I start to think that cars, and maybe light trucks, are more a form of personal adornment, like jewelry, than utilitarian transport. Maybe they should look like jewels on the inside, where most of us spend the most time forming opinions about what our next car should be.
4. Electronics. There’s too much of the stuff. The dashes look like VCRs. The owners manuals are 300 pages long and 100 relate to the audio system. No one can read them. The big screens for the nav systems should retract or cover up when not in use. All the electronic aids just get in the way of experiencing the machinery. A lot of it is really off-putting. Why not take all that stuff out and advertise its absence? Like getting back to basics, just me and the road. Simple, sturdy, reliable?
5. On Star. What a great idea this is. I see GM advertising the safety angle and really like it. But, we here in Arizona go to Mexico and the real usefulness of the system is in the boondocks, especially the Mexican ones, but it doesnt work there. It really should, though. Parts of Arizona are the car theft capitol of the country and the tracking system like On Star has great appeal.
6. Manual Transmissions. Would it upset the balance of nature, or something, if you could get a manual transmission on the STS? All that power of the Northstar, but why not a manual. I just can’t bring myself to get interested in cars that dont connect me to the machinery and the manual trans is a real pleasure that I just don’t want to give up. (The new Corvette’s transmission feels like a work of art). I know the auto in the CTS is a beauty, but even as good as it is, Id still like to shift the gears myself, but still have the comfort of a sedan. But, you can’t get a manual transmission in a car that can hold five people.
7. Pricing. Your dealers are selling vehicles at prices way below sticker. But the people who don’t buy only see the sticker and the last price they wouldnt pay. Why not put the sticker prices closer to the actual selling prices? Your cars and trucks are much more affordable than your sticker prices make them appear. What other company does this?
Thanks for your company’s openness to customer feedback. Good luck in the upcoming season.
Jim Musgraves
Mr Lutz,
I have a couple things to point out.
First, I have no idea which dealership in LA you went to but I was recently in the LA/Pasadena area and there were a couple Pontiac dealerships with at least 3 2004 GTOs on the lot selling fro a reduced price to move them out.
I would recommend you randomly visit dealerships and not ones hand picked for you because of past success. That way you’ll get a better “true” picture of how things are working, or not, for GM
Secondly, there are two things GM is screwing up right now that you need to fix. First, stop the “reactionary” process. Right now GM is playing “monkey see, monkey do” with the import cars. GM is always “reacting” to consumer enthusiasm for new imports. GM cannot afford to be “reacting” as evidenced by the current state of affairs of GM.
Also, customer service after the sale needs to be at the front of the dealership concerns. For example, if someone is to buy a $50K+ Corvette, they should be able to expect service after the sale accordingly, meaning, a Corvette technician should be at every dealership with a Corvette allocation. There is nothing worse than having a mechanic that spends 51 weeks a year working on Cavaliers to be the one guy that the dealership assigns to replacing the rings in your Corvette engine.
Thanks for you time. Feel free to email me with comments.
Jim
mccccland
I’ve been watching GM car development with great interest, trying to figure out what’s wrong. Had two GM vehicles (Impala and Yukon) and could never understand why so many people complain about GM quality, I did not have a single problem. Great vehicles, well done, well thought features. Now I drive a Japanese car (very quiet, fully loaded, lacks features my Impala had)and cannot wait to replace it with a GM car, as soon as I can find what I need. The problem is that there is nothing out there right now from GM that would appeal to me. STS seems like a great car, but the 6 cylinder does not have xenon lights. You can get them on a $25,000 Japanese car, but not on the STS. CTS is too small. The new and improved Buick still does not have a decent engine, Lucerne looks like a larger Cobalt from a side and like VW from the rear. The comment about giving Lucerne the 275 hp engine “to protect Caddy” really iritated me. GM still is thinking like it is 1950. Look at the new Avalon, is its engine intended to protect Lexus? Buick always had different clients than Caddy, especially now when Caddy is all edgy and Buick is not, what’s the concern? Do you really think that the Caddy buyer will drop STS and go for Lucerne just because Lucerne has 300 hp engine? Ridiculous. Two different segments.
I wonder whether anybody at GM has learnt any lesson from the Impala story. Car so “hated” in the beginning, for its looks became eventually one of the GM stars as owners started sharing their experience with others. Can the Impala story be replicated? Do you guys really understand what happened there?
Kyle Markley
I’ve been shopping around for a new car for several months. The thing that won me over to GM was OnStar. I hope there are enough people like me that your OnStar push pays off.
I’ll be doing some test drives over the next few days but I’m already 80% sure I’m going to buy a LaCrosse CXS. I’m 27, you should be happy to have me. (I drive a ‘92 Regal today!)
Wish I could get one in a rich dark green, though.
Snafu SS
I love GM vehicles more specifically Chevrolet. I would be very happy to still HAVE a Chevrolet in the future when i actually have money to buy a new one for a change. I hope that you follow through with your plans in every way, please do not skimp out on us and keep up the good work. Keep shooting for the all important buzz word “class leading product.”
I know pleanty of the people GMInsidenews would agree with that. But basically, keep up the good work and I and many others are looking forward to your new plan’s results!!
Jim
Bob, Talking of products, I have an S-10 and want a Canyon. My problem with is five cylinders, why not have six or a 4.8 V-8? Talking of trucks, I think the SSR should evolve into a El Camino type vehicle, skip the convertable, more practical, more as a everyday driver with a much lower price. That’s an untouched market waiting to be tapped. Thanks
motorman
Are the big guys at GM doing like Bill Ford not taking any pay till the company turns around?
SCOTT S
Mr Lutz, I am glad how you address everyone and know you can’t ell everything that you plan.
I wish you would address something few understand.
Would you address the cost and labor needed to come out with a new platform. Too many of the bench builders do not understand it takes more than a phone call to revamp a platform. I beleive few understand the Billions of dollars and millions of man hours it takes.
Also please explain why names are changed when a new product come out. The die hards get upset with a loss of a name but never understand the marketing of a new name id to attract a new customer who would have not ever considered the old car.
I read the cheersandgears.com daily. They have a lot of good info on new product. But too often many of the post show too few really understand what it takes to build a car. I was lucky growing up to have a great uncle who was well placed at GM from the 20’s through the 60’s. He was like a grandfather to me and taught me a lot about the auto industry. I fear too many of the critics today just have no idea what it really takes to build a new car from a draft.
Sirk (Jakarta)
Dear Bob,
It’s nice to hear the positive vibes at the product development side at GM in contrast to all the negative finance talk. I would like to ask you if there are any plans for developing any exciting new innovative vehicles for Asia?
Chris Fountain
I wish you well, Mr. Lutz, because I don’t want to see such an important manufacturer go the way of, say, our airlines. But I think you have a long way to go. I haven’t owned an American car since I was given my parents’cast-off 1968 Caprice. On business, when my request for an import is ignored and I’m handed the keys to one of your fleet vehicles I am reminded, again, why I won’t consider an American model for my own - cheesy materials, badly fitted doors, etc. My American made Honda Accord is superb, so why can’t you guys do the same thing? I applaud your re-invention of the Cadillac but those of us who rent cars aren’t exposed to those-I suggest you upgrade the quality of your fleet vehicles and expose people like me, who have sworn off your product, to your new ways. When that happens.
But I do wish you well, and good luck.
stephen clifford
I agree with Bruce Sherman’s observations (May 12). The Chevy Colorado and GMC Canyon twins are an outstanding product. Jaded car magazine testers don’t gush about them, but if you buy one, you’ll find out now nice they are to drive and own, and how good one of them looks in your driveway. It’s a youthful truck, makes you feel 10 years younger.
Barry
Well Bob,
That is a great game plan. I can tell you that if I were a major shareholder, I’d be pushing for new members of the board if that’s all you plan to tell the owners of the company. I don’t have to worry as it appears that will happen soon enough. The reality is that GM has little wiggle room and is backed into the corner. You aren’t playing in the Super Bowl and you don’t get the ball. You didn’t make the playoffs and the reality is that you don’t get to play offense. You are somewhat at the mercy of the markets because of tremendously poor management for over thirty years. But, I’d expect to hear that from GM as it is so insular and arrogant that it is easy to believe management really doesn’t get it. I’ve seen much of the “new” product expected to launch and there are no high volume winners. You had the chance with the Malibu and G6. Both are “ok” cars but their launch, design, marketing, warranty, etc were all botched. A few low volume cars that will be interesting but they aren’t going to pull you out of a tail spin.
New SUVs and Pickups may help somewhat but the game is a new one. Oil will never be cheap again for many reasons, not the least of which is much is controlled by terrorist states. But even more important is Toyota, Nissan and Honda are poised to do to you in that market what they did in autos. You see, generally giving up on the compact, subcompact and midsize market was a losing strategy. All that did was give superior management teams a foothold from which to launch an all out assault on your bread and butter pickup/SUV business.
I take it GM’s management team has never read “The Art of War”. Your competitors live it.
If the Japanese continue to post double digit gains, how do you propose to keep them from crossing the goal line? Right now the best hope GM has is a little prayer until Kerkorian gets his claws into GM and forces significant change. Unfortunately, what will also come with that change is probably a continued destruction of America’s middle class. Again, back to “The Art of War”. Poor management will eventually destroy the middle class auto/auto supplier base which is your largest consumer.
If GM would have created a blog and really listened to critics before, we might not be posting these critical messages in 2005.
Agent_Provocateur
I tend to agree with the commenter who mentioned the opinions of his college aged friends and would like to expand on that point.
GM could make serious inroads onto Toyota and Honda territory by trying to recapture the young buyers. A cheap car doesn’t have to remind you that it’s cheap everytime you get into it, and that’s what cars like the Cavalier do. Get into a Honda Civic. You will find the same level of quality and attention to detail that you will find in their most desirable luxury Acura’s. This seems to be seriously lacking with GM’s and other domestic manufacturers. They don’t make good small cars.
Young buyers of Cavaliers, Neon’s, etc disaffected with ill-fitting cheap plastic interior panels, exposed screws, confusing controls, noisy and harsh drivetrains, overly quick and rubbery steering, zero road feel and paint that fades and peels in 4 years do not make Impala and Denali buyers 8 years down the road and Caddy buyers in 20-30.
Turning this around will take years, time that GM doesn’t seem to have at the moment but can’t afford to waste any more time putting off.
Tom L
Mr. Lutz,
The Mustang is selling fast over sticker for the GT the Cobra is on the plate now what about CAMARO!! Exciting cars we need it a retro type of Camaro with the proper advertising, and promotion, the G6?? The european GTO? We need to make an awesome muscle car to compete with Ford how about a RWD 400 LS2 impala! Happy your at GM but instead of hiring college kids who have no car knowledge just degrees lets get car people back at GM to keep the corporation from getting a junk bond rating!
KenS
GM is finally getting a clue. I think they are too late.
The problems: labor costs and central planning.
GM still thinks in terms of minimizing the cost for each part by master planning across 100 models and schemes on 5 continents. This stifles the internal competition which destroys quality.
The GM brands that fare best are Cadillac, Corvette, and (until recently) Saturn. They are also the brands least integrated into master planning.
Sell off every subsidiary (GMAC, etc). And every European brand and operation.
Spin off Saturn, Cadillac, Buick, GMC, and Corvette as separate companies. GM stockholders take shares of the spinoffs which must swin or sink. Declare extra dividends with the cash.
The company is now Chevrolet and Pontiac. Merge them.
File for bankruptcy.
The debt goes away, the union contracts go away, and the pension obligations go away.
In reorganization ruthlessly cut overhead and management salaries. Keep the best at Pontiac and Chevrolet, market 2 cars, 1 van, 1 suv, and no trucks.
GM’s central management has botched it. And it is going to hurt.
Doyal Gipe
Mr. Lutz, this comes a bit ‘off-topic’, but I’m afraid I must bring this up. What exactly are the fruits of joining with Toyota in your fuel-cell research? Knowing Japanese business practices, the only time they will ‘join’ with another company is if there is something they want…
I’m afraid GM will be burned in the same public perception that Ford was. If you don’t get your IP patented, Toyota will hold over your head that their fuel-cell technology is running at the heart of GM vehicles. Regardless of who did the research, that will still be held over your head if you do not protect YOUR property. This will damage the ery fagile public image you have at the moment. True car people will know the difference, like Ford’s system is 100% in house, but a simple patent will get stupid people to think that Toyota was feeling nice to a competitor. This isn’t all too different when Toyota raised their prices, quoted, “To help GM”. A PR move that put more money in their pockets.
I have faith in you and GM. GM is the only company I’d buy from. All I ask is that you watch your back, and stay very paranoid about this ‘venture’ with Toyota. If you’re betting SO MUCH of your future on fuel-cell cars… you shouldn’t allow yourselves to be outdone. Regardless if you have the best tech. You had teh best electric technology 10 years ago, but most don’t remember. Toyota just capitalized on the times. You’re treating them like a friend, when you should be treating them like an enemy.
Bill
I’m glad to see GM is commited to better products. Carlos Ghosn said it well - there’s no problem that good product can’t cure.
I think the biggest detriment to GM right now is its reputation for inferior/inconsistent build quality and reliability. I talk to a lot of buyers who buy Hondas and Toyotas for the sole reason that they’re reputed to the most reliable and dependable cars on the road. I tell them about how my ‘98 Grand Prix has been as reliable as Old Faithful and how my brother has had more problems with his ‘00 Accord. It seems as if everyone I speak with has a counter example to my statements.
It will take awhile, but good product will turn GM’s reputation around. I’m in GM’s corner and I’d love to see it happen.
Miguel Carvalho (Portugal)
Mr.Lutz
The focus continues to be in US,i agree,but how about the europeans ?
It¬¥s not the best market,but it¬¥s a “market”…
Am i wrong… don¬¥t think so.
Best ragards
Joe P.
Hi Bob
I’d like you to comment on the sales figures for the Saab 9-2x.
To me the Saab 9-2x was a great demonstration of how GM can leverage its worldwide investments to create a fantastic product. Without question, the 9-2x is a better
car than either Saab or Subaru has to offer.
I ordered the Aero version in November, and am wondering if I have made a mistake … Since I ordered the car I have not seen even one 9-2x on the road.
I’d like to understand why you think GM haas not been able to move these vehicles. Is there a plan to continue sales / improve sales figures, or will GM simply cut its losses and stop production ?
To me the extra price is justified by a car that is more refined than the subaru offering. However based on sales figure comparisons between GM and SAAB, it seems GM has failed in its efforts to properly market this car.
I think that I could sell this car in my sleep …. Why can’t GM ?
Alex
I have a dilemma which is relevant to GM product development. I am currently leasing a 9 3 which I am thoroughly enjoying it. The lease will expire early next year. I know that if I remain within GM products, I would get a good lease. Here are my options within GM:
Cadillac CTS: I don’t want to drive a 4 years old model. Also, the driver seat seems to be designed for really tall people.
Cadillac STS: Got good reviews in Consumer Report. A possible candidate. But a bit too big and expensive for me. Also, in the front fascia, don’t like the wide space between center grill and the lights (minor issue).
Another Saab 9 3: Only if a new engine becomes available. Otherwise, why lease the same vehicle twice (needless to mention that Saab 9 5 is way out of date).
But now look at what is available from competition: New 3-Series, New IS, New Audi, etc.
The moral of the story is that GM needs to become more competitive in near luxury cars segment and freshen up the models more frequently.
chris franklin
I was born in 1971 and, at a young age, I kind of thought that GM, Ford and Chrysler cars were the bizarre foreign products and that it was Honda, Toyota, Volvo and Mercedes that were the domestics autos. Of course, I grew up around Washington, D.C. and the buying habits of its populace, so that kind of skewed my perspective a little.
Frankly, I thought that GM, Ford, Chrysler were over in the 1980’s…I mean who the heck was buying that stuff? The demographic must have entirely been senior citizens and teens/young adults in one dealership small towns.
My 2 cents for GM:
I live in Studio City, Ca. (basically Hollywood) today. Los Angeles is car-centered like no other place in the U.S. And Hollywood and the entertainment industry are about “vehicles,” typically entertainment “vehicles” for its actors. What I am saying is that Hollywood should be desigining your cars (they have to know what the international public will want or what will suprise the world population when they make movies). I bet they could do the same for GM vehicles.
Wade
Bob,
It appears my May 12th post didn’t get posted. I’ll try to recap.
You are responsible for it all. I’m just interested in the rear-wheel drive sports car…e.g., the GTO. I would have bought one right off the bat if the design would have looked a little more aggressive and a bit less C6/Grand Amish. You put the LS2 in the ‘05 model…that’s a wise move. You made some body changes that clearly helped…but not enough. Now that I’ve read that the ‘06 doesn’t have any hp/torque increases it’s just a newer ‘05. It’s sad that you couldn’t put the LS7 as an option; I would have ordered one already.
You want to compete with the other auto makers then you need to listen to those of us who buy your products…that is if you have a product to compete.
Dodge and Chrysler each have answered the enthusiasts’ call with the SRTs: 300C (425 hp); Challenger (425 hp); Magnum (425 hp). Ford answered the call with the Shelby Cobra (450+ hp). GM answered the call with cars that are at least $10k more and less hp (Vette, Cadillac). The GTO is nicely priced but, believe it or not, now under powered! WOW!
The “Australian” GTO is a quality car but it has problems. For example, the original design puts the driver on the right side. This explains the consistent problems with the speed and motors of the now driver’s side window motor. The now passenger’s side window motor is strong, fast and lasts. How about trunk space? Let’s see, it’s about 7 cu.ft. Why? Because GM had to move the gas tank to meet US standards. Another sacrifice for the sake of “quick to the market so GM has something that will answer Ford and Dodge/Chrysler”. Big mistake. It appears GM under estimated we the buyers.
I have consistently ask you through these blogs, as well as countless others, to let us know what you are planning for ‘07 and beyond. Is there to be a US made GTO? If yes, what are the engine options? Will there be a Camaro? Again, when and what options? We ask and you are silent. Silence on these things communicates very LOUDLY that GM doesn’t have a plan for these models. I can’t imagine why else you can’t answer the question with a simple “Yes” or “No”…unless of course GM has NO PLANS.
Bob, a lot of us have the money to spend but we don’t necessarily want to wait to see what GM “might” do. The other US automakers have already answered the call and the answer is good. Please give us some info to let us know if we should wait for GM in’07. Without it, I assure you that one of your competitors will getting our money.
Wade
RS Davis
Mr. Lutz,
I do not envy the position GM is in. While I recognize the obstacles GM must wrestle with in producing competitve vehicles, it is clear that the company lacks a clear vision of what Americans want in an automobile. Let me use Pontiac as an example.
Americans are tremendously proud of our know-how and are, perhaps, nationalistic to a fault. So be it. America is the greatest nation the world has ever seen and we should be proud…but to expect an individual who is prone to purchase a BMW to change his mind because Pontiac’s models are going to be named after numbers (like G6). That is unbelievably simplistic. In the rush to “Europeanize” Pontiac’s line up, it has abandoned every shred of tradition, history and product identification Americans have known since 1957. I’m sure some think this is a good idea, but to many more in ‘real’ America, flyover country, it is just another foolish step in the direction of globalism that will ultimately see the complete disappearance of the American auto industry - an industry in which we should easily be dominating.
Could Toyota or Honda compete if burdened with the same challenges GM has to deal with? No, I do not believe so. But instead of seeking to celebrate our American pride and distinction, our biggest automobile company seems to be apologizing for being American and offering bland, banal, vanilla and lackluster cars that seem to beg to be thought of as a good cheap European/Japanese alternative that will try to at least look European/Japanese.
Remember when, in the 60’s, BMW stated it wanted to be the Pontiac of Europe? Now Pontiac is scrambling to ditch its entire history of performance and style in a panicky “me too” attempt to be the BMW of America. The BMW guy I mentioned above is not going to buy a Pontiac instead of a BMW no matter what you call it or how generic and European you try to make it look. In fact, I do not know one single Pontiac enthusiast that is not convinced of the all of the following notions:
1. Pontiac had been earmarked for extinction long ago, and GM is slowly playing out its death while it waits for new models to come up in a few years…Chevy.com shows upcoming models with classic names and V-8 power. Pontiac.com is bragging about a 4 cyl. roadster? A conv. G6? This is GM’s performance division? HUH?
2. The GTO is a joke. It looks like a Kia on steroids and it is not even made in the country that invented the damn muscle car. I know that you, Mr. Lutz, do not care for retro styling, but why use a retro name if you are unwilling to go with the styling the name inevitably invokes in one’s mind? It would have sold more models and gained more respect if you had named it something else, like G400 or something generic to match its looks.
3. GM seems to have nothing but contempt for Pontiac’s legacy. Bonneville…dead.Trans Am…dead. Grand Prix…dead (or will be, when renamed the G-whatever). If GM cared at all about those who love Pontiac,why dump abortions like the Aztec, the Sunfire, the G6, the Vibe (A TOYOTA FOR CRYING OUT LOUD!) on us? Do you care that loyal Pontiac buyers feel stabbed in the back?
4. GM will eventually move out of America all together or merge with Toyota and the complete sell-out of the American automobile will be complete. Those of us that love cars built in our own nation by our fellow countrymen will eventually be forced to talk about the American car industry as a memory, like FDR’s fireside chats or a Coca-Cola being a nickle. (”‘When I was a boy, cars were made in America.’ ‘Really Grandpa?’”).
The above may seem reactionary, but when we hear of Cadillacs being made in the oppresive and virulently anti-American communist regime of China, one can only wonder how long it will before Chevy, GMC and Pontiac will follow.
I know the unions are killing GM, and I know their death grip on GM’s resource must be loosed if GM is to survive. I realize that the uniformitarianism of vehicle lines and building in China are attempts to deal with GM’s financial issues, but can it really help to be ripping away from loyal buyers the very legacy and history of an entire division and replacing it with Euro-wanna-be blobs of mediocrity?
I do not mean to be insulting, but Americans want American cars. Nothing Pontiac has looks, sounds or promotes that. I do not want a Japanese car. I do not want a European car. I do not want an American car that is TRYING to be a Japanese or European car. American class and timelessness in auto design was never achieved by trying to reinvent a Euro/Jap. car over here or pandering to the hip-hop generation. Why do people still talk about cars like the ‘57 Chevy, the ‘69 GTO, the ‘70 Firebird, numerous Cadillacs, Monte Carlos, 442’s, Grand Nationals, and the like? They were great American cars built to look, sound and drive like American cars…proudly so.
GM cannot compete as long as it tries to be what it is competing with(BMW, Mercedes, Toyota). It will compete when it embraces what it is and where is has been and what it means to American history. It is General Motors, the largest company on the face of the earth and is AMERICAN. In an even and fair competition it can crush Toyota, Honda, Nissan, Mitsubishi, Mercedes, BMW and any other competitor with ease. You do not need gee-whiz Jap. headlights on your pickup trucks and Cadillacs. You do not need BMW wanna-be nameplates on your Pontiacs. You do not need to live and die by focus groups that tell you cars-by-committee can please all the people all the time. Bill Jordan, Zora Duntov, John Delorean, Bunkie Knudsen, Ed Cole, Harley Earl…these men understood the unique and collossal role GM played in American life. Please do not water down the greatest and largest company in human history so as to look more ‘global’ or to sell something that, in the final analysis, is not really true to GM. Attempting to be an another version of another company that isn’t even American costs GM credibility.
Let me condense what I mean. Americans do not think American cars are low on quality or value. When presented as American cars, we see them just that way, American cars. Americans only see American cars cynically and trun to other models when they are put up in attempts to compete as ‘European’ or ‘Japanese’. If you try to sell a Pontiac as a legitimate equal, altenative and substitute for a BMW, people snicker because a Pontiac is NOT a BMW. But when a Pontiac is sold AS a Pontiac and nothing else, then it, stand alone, is a very good American car and American buyers care less what a BMW does or can do. Don’t try to catch up with the other guys by being what they are…make them catch up to you by being what they can never be…the greatest auto builder in America. By definition, the world will follow. If a guy wants a BMW or Toyota, he will buy it. If a guy is undecided but sees a BMW or Toyota and the competing Chevy or Pontiac that is trying to be that BMW or Toyota, what will he do? He will buy the real deal anyway. Why buy a copy when you can buy the real thing. When he is given a distinct choice, though, between that BMW/Toyota and a clear, distinct and American Chevy/Pontiac/Buick that stands strong on its own merits, then that buyer has a real choice. Not a choice between live or Memorex.
Sorry for the ramble, but I hate to see a such a giant and intregal part of American history fall from self-mutilation, because in a fair fight there is not another auto company on earth that can touch it.
Jim Dollinger
Your site is not much more than a company soapbox.
Simon
Bob,
I find it interesting you reference the GTO so heavily. Somewhat understandable given it seems to have been much your baby but what happens now there is no Zeta for the US? Once Holden releases the VE next year a new Monaro is a big maybe according to our local auto media, even if they do make one (god I hope so) and then turn out another US version if Elizabeth is the only place building them you’d still be stuck with a paltry supply even if you did find yourself with a hit. It just seems strange to me to make so much of a model sold in such tiny numbers that won’t even be around in the near future.
Secondly a question, who has been left holding the bag regarding the cost of Zeta development for North America,? I believe much of the work was being done at Fishermans Bend, I really hope it isn’t Holden, I imagine they’d be hard pressed selling enough cars to cover the cost even with exports to the Middle East, Asia, Brazil etc.
In summary, please leave Holden alone, myself and many others love their work and don’t wish to see it hit by the woes or desires of GM NA
smack
%*&%%$ Dealerships…what a horrible experience, worse than sitting in the dentists chair all day! It takes longer to buy a new car than to buy a house. Then you drive home wondering just how badly you’ve just got screwed. You need some secret shoppers to evaluate your dealerships, after all, the dealerships are the “face” of GM. No matter how great the car is; if the dealership experience is bad, we don’t want to return, period. I have been putting off taking my vette in for the steering recall just because I hate going to “the dealership” to have it done. I just don’t trust them. Fix that and you will have more customers.
Tom Castle
Bob -
Please forgive me if I’m unconvinced by your declaration that this time, really really, GM is going to execute. That is not enough, and never will be. GM can’t execute if it’s continually competiting against itself with its countless overlapping brands and models.
Overall, you spend far less money per year (billions less) than Toyota on R&D and design. At the same time, you have several times as many products and brands to sustain. There is simply no way GM (or any other company on Earth) can afford to give the time, attention, and resources to EACH AND EVERY MODEL that is required to compete.
It’s that simple. You need to kill 3 or 4 brands and try competing against the Japanese instead of against yourselves. As much as you marketing wizards at GM like to pretend otherwise, out here in the real world, few people give a toss what the difference is between a Buick or a Pontiac, between a Chevy and a Buick, between a GMC truck and a Chevy truck. Marketing mavens care; consumers, by and large, do not.
I wish you the best of luck. Really. But you’re going to have to take far more serious and credible steps to compete in the long run. Promising to execute isn’t nearly enough.
Thomas
Geeze, I thought I was alone when talking about GM’s ugly 4 spoke steering wheel design.
I have to go one step further. GM four spoke steering wheels in G6, Malibu and various other cars and trucks are the ugliest I have ever seen across all brands in the world!
Please, we need to gather more support to push GM to change the steering wheel design. For the sake of millions of workers in the automotive industry across the Unitied States, whoever designed steering wheels and the aztek should be fired and never step a foot onto GM’s designing facilities for the rest of their lives!
Just a suggestion.
Dave Bazan
I can say this: the General Motors car line-up is certainly respectable. The G6, Cobalt, Mailbu, STS, et al- are all fine cars.
Bob Lutz at GM has not been the savior experience we had anticipated. GM is not able, apparently, to be like Chrysler in the ’90’s was- for whatever reasons.
GM struggles, Lutz stays relentlessly positive. The public, as always, seeks its own satisfactions wherever they are being met.
With the Zeta gone, $2B lost to Fiat, truck sales vulnerable- GM is simply not an easy fix. If this were a non-company sight it would be curious what Mr L would have to say. Maybe not much different. I would dearly like to see GM become something special again. It seems what took many years to get into will take a bit more than a few to get out of. I blame the 1970 1/2 Pontiac Ventura II for the inital volley-shot into GM’s long slide toward the abyss. Never before was ther a badge-engineered GM car. But, by the time the decade was out- and into the eighties- a public used to buying GM ate up these look-a-like mobiles. When a new generation came upon the scene- well, GM had cashed in and all that was left was time to sink. . . Good luck, Mr Lutz, good luck,
Steve G
>Geeze, I thought I was alone when talking about GM’s ugly 4 spoke steering wheel design.
I have to go one step further. GM four spoke steering wheels in G6, Malibu and various other cars and trucks are the ugliest I have ever seen across all brands in the world!
Please, we need to gather more support to push GM to change the steering wheel design. For the sake of millions of workers in the automotive industry across the Unitied States, whoever designed steering wheels and the aztek should be fired and never step a foot onto GM’s designing facilities for the rest of their lives!
Just a suggestion.
Shaun
GM isn’t an easy fix, I think we can all see that. But, I think that if relentless research and development is shown on development on new, rear-drive mid-size and full-size cars, better front-drive compacts for divisons outside of Chevy, then GM will have a strong line of products that will be competitive and stay that way for awhile.
I think GM should just go back to making cars the way it did in the ’50s, ’60s, and ’70s. The glory days. Reviving old names, rear-drive cars, cheap V-8 power. I can’t tell you how much respect GM will gain back from the consumer if nameplates like Chevelle, Nova, or Bonneville are continued and live up to what the original models were. The Impala and Monte Carlo falls short of the mark, although from what I see in the ‘06 models, there may be hope for the all-new generation. Look at Honda, which seems to be GM’s benchmark these days. Has Honda ever renamed the Accord for another generation? No. Those older nameplates have recognition and repect with consumers. Lets revive them and not tarnish the car in the process. And badge engineering kills a car company. I don’t matter if powertrains and platforms are common, but the interior and exterior design is just where I draw the line. The Pontiac Torrent and Chevy Equinox is just too redundant and is, in my opinion, a blemish on the company.
You may think I’m moving on in my years by the previous statement, but no. Actually,I will be making my first car purchase next year, and it probably will be a later model GM car. GM should be keeping a close eye on me and listen to what I say. The next wave of products will either make or break me as a loyal customer. Yes, I will admit that the quality and durablilty of the first car is a factor, but, if I want to replace that GM car with another GM car, the quality, design (interior and exterior), and features matter.
Thank you for your time, Mr. Lutz. I look forawrd to seeing as how this all will turn out.
steve
Once and for all, the Aztek designer was fired. Hired by Honda and created the Element, moved to Toyota and came up with the Scion Bx. Two cars that are the ugliest pieces of crap. Where were the voices of the auto critics who panned the Aztek for it’s looks. Oh, excusssss me, they’re made by Japanese mfg’s, ergo, they must be good.
dave
Please place me among those desperately hoping to see the G6/Equinox/Malibu 4-spoke steering wheel changed. When I got into a G6 at the South Florida auto show, my reaction was, “decent interior, hideous steering wheel.”
Trollhattan Saab
Bob’s Best and Brightest
Congratulations Bob Lutz, on the best post I’ve seen on Fastlane. To sum it up in a nutshell, here are the key quotes:"What is GM’s strategy for fixing its issues?" A good and fair question. Let’s start by saying there’s…
Bobby
Bob,
It is obvious GM uses a crystal ball to predict rebate amounts when setting the price for every vehicle.
If you really want to get out of the rebate game, you would be very smart to immediately end all current and planned future rebates and do a 5-10% price drop across the board.
When we drive past the billboard with signs exclaiming $13,000 off a new Chevy, how do you think that makes Chevy drivers feel about their vehicles?
More importantly, if a manufacturer has to pay the consumer $13,000 to take a vehicle, that also is a sign that it is not desirable or there is something wrong with it.
Successful marketing creates desire for a company’s products. Offering these five figure rebates does the exact opposite effect.
big picture guy
The GTO is really growing on me. The clean lines don’t really jump out and scream muscle car, but the sound of the exhaust note is unmistakable! The more I see it, the more I like the “stealth” design concept.
Design and build great cars and trucks and all the other problems will melt away.
Steve Williams
It is enjoyable to read all the comments. I make a living selling GM trucks. Yes it is a little slow. Yes we need the new updated trucks now! Fuel mileage on our full sized trucks is better than the rest! Customers who have owned the other brands and now have a new GMC tell me this often! In driving to Lansing several weeks ago to move some of my sons stuff out of his dorm, I was able to get 19.5 mpg. On the way back with a load and head wind(strong one that day) 17.8 mpg. I drove to Lansing on one other occasion and was able to 20 mpg going and 19 mpg back. This is with a full size 1/2 ton 4×4. Cars, the new Malibu is a good car. Good platform. When I met my wife a few years ago she was driving a Z3. She is now driving a Malibu LS(Pontiac didnt have the new chassis yet, I prefer Pontiacs), and loves it. We purchased an early production and had a few glitches, but overall she likes her car. I drive a car that GM should relook at the concept. I love driving my mid engined plastic car! Fun to drive and I get mid 30’s mpg all time, with over 100,000 on it! Like Bob says, drive a GM vehilce before you criticize! James great point! Oh and I am in the “Baby Boomer” age group. Just my .02.
Steve
Thom Moon
Mr. Lutz -
Recently, I rented a new Malibu Classic. Let me give you a piece of advice: immediately discontinue manufacture of that car and buy back all the ones that are in rental fleets. It was the most dissapointing vehicle I’ve driven since I rented a 3-cylinder, auto transmission Geo Metro (worse even than a Yugo or Renault Alliance).
Complaints against the Malibu Classic? Squishy ride. Impossible-to-modulate power brakes with no feeling of how close they were to locking up. The deadest feel to a power steering since my Dad’s ‘65 Olds Delta 88. Uncomfortable, unsupportive seats. Power windows that worked only part of the time. Awful ergonomics. Noisy, rough engine. Roughly shifting, slow-to-react transmission. Dismal interior.
I know you only sell those to rental agencies, but a lot of people receive their only impression of GM cars via rentals. If I were ever tempted to check out a GM car to buy, the Malibu Classic ruined any chance of that. A miserable conveyance.
Admittedly, I’m not a great candidate for a GM vehicle: I despise SUVs, trucks and vans; I want a small, economical yet sporty car (I drive either an ‘03 VW Jetta turbo/manual or a ‘92 Alfa Romeo Spider Veloce). Still, I hope you can turn around GM.
But giving people experiences such as driving a Malibu Classic sure won’t bring in anyone to GM showrooms except the brain dead.
Future 9-2X aero buyer
GM is to the car industry what Czarist Russia was to Europe: The Sleeping Bear. Slow to rise, but if provoked, start running.
GM’s dominating scale (spreading R&D and development costs across many platforms) advantage may finally be fully brought to bear by Mr. Lutz et al. One day, GM could be refreshing models faster than the other volume OEMs knew what to do about it….
exciteable boy
To “Motorman”:
Wagoner putting his “money where his mouth is” with the $1.5 million purchase of common stock is good enough for this GM shareholder.
Mark
I don’t understand the concern about dealer markup. It’s a high honor when a car is good enough to sell above MSRP. Ford Mustang GT has been selling at or above MSRP for a full year because it is a great car that people want to buy. When was the last time GM had a car that would even sell for invoice price? If GM can make a car that commands more than MSRP, they are truly on the right track.
Steve G
That ugly steering wheel would prevent me from buying the car. There is no way I would stare at that monstrocity every day. I also wouldnt want to buy a car from a company dumb and blind enough to pollute the interior with it.
And what is with the ‘Malibu’ emblem next to the hazard signal on the dash? How tacky and unecessary. You think people dont know what car they are driving?
And I agree with the other person about the Chevy ‘Classic’. People will rent it and immediately take Chevy off their car shopping list.
George Kay
Dear Bob, I have been in the car buisness for over 12 years and in those years 11 of them have been in top level management in GM and Toyota dealerships and here is what I have noticed first hand and actually frustated myself over because I truly love GM and would love to see it regain its place as a truly great automotive manufacturer. Toyota has a buisness plan for the next 20 years already mapped out GM has as you put it in so many words has a plan that you can not and will not tell us about, but Im sure its a real kicker. Toyota has been building cars that people want with outstanding quality and a very fair price for years. GM has been building terrible quality cars at ridiculous prices, case and point Toyota has a Camry for less than 20 grand and we have the Grand Prix, 04 Camrys used are trading at auction for 15k were you can buy a 04 Grand Prix for 11k and the Grand Prix is more expensive new than the Camry. The proof is in the pudding look at how GM’s vehicle’s loose their value. I firmly believe it is due to the fact that they are not good cars. Bob let me give you a great buisness plan make a great car(one that doesnt just look good one that is good) sell it for a fair price, treat your customers like they are your own mother, make sure your dealers treat their customers like they are the last people on earth (because in GM’s world they are), make sure that your product is better than your compititon because in this buisness it really is all about product, and make sure that people you have working for you mainly your reps have some idea of what they are doing because to be honest with you they do not even have a clue. I think you can make a difference but right now you cant because your people cant give you the information you need because they have no idea what is really going on. I can honestly tell you that I do. I have been in the trenches for 12 years selling these cars to people like you and I and believe me I can tell you exactly what is going on and how to fix it but the funny thing is none of your people have ever asked…..Toyota has but dont worry I wont say anything because anything I’ll tell them they already know….. their doing it right now!
P.S. old saying in sales goes like this… you can not ad value to something that you are dropping the price on. Try selling your cars for a fair price instead of giving huge rebates. You are destroying the value of your own product! Just give a great price out of the box!
Alan B.
How long does it take for comments to be reviewed and posted from the date sent?
Alan B.
Thomas
Mr Lutz,
Please listen to us on this. You cars overall interior and exterior design are very competitive now, with the one obvious exception:
“The steering wheel”, Either the trucks small steering wheel center with long four spokes….yikes or the Malibus’ two spokes pointing straight downward designs, they gotta go. It is not the matter of taste here. They are just downright ugly. I know your cars & trucks prices are so competitive, some people are willing to overlook that, but why?
It doesn’t cost much to change that right. Imagine the increase in sales when you replace those hedious steering wheels with some better ones.
I will give you an example. Take my 98 passat’s steering. Nice balance between the center and the spokes. Four spokes design. Looks good and feels great in my hands. It is a joy to use it. It is perfect for a 4 door sedan.
My S2000’s three spoke small diameter steering wheel. Small center and a slightly longer spokes. Looks and feels like a race car steering wheel. Quick ratio, totally responsive to my input. A joy to use, either on the street or on the autocross, slicing and dicing the salom course.
Call me crazy, I can look at them for hours and admire the beauty of them. But not to the four spokes steering wheels of G6, Malibu, chevy trucks….
They are downright hedious.
For rental cars, maybe they are good enough. For my money, there is no way I will settle for an eye sore placed right in front of me everytime I drive my car.
No way!
GoatFink
Bob, Bob, Bob,
We really need to look at exploiting, ‘cough’ ‘a-hem I mean benchmark’ the GTO with a little more of the Monaro CV8 options here in the states. This will boost GTO sales even more.
Dash pod guages for battery power and oil pressure. Very simple to add in. 18 in wheels just as in the Monaro CV8 should be standard. On-Star should be another feature added into the GTO option list (it can’t be that difficult to add that in). Sunroof, especially for us in the blessed warmer climates. DVD navigational system as in the Monaro CV8 and power seat memory options for those who have more than 1 GTO driver.
All these features exists now on the Monaro CV8. I don’t think it would be that cost prohibitive to bring a few of those options to the states.
An additional power outlet is nice, darkened taillamps okay, illuminated steering wheel radio control options are nice. But I was hoping for a Ram Air induction package even if its dealer installed and has factory warranty backing. Perhaps a 3.55:1 rear end to keep the Mustang GT in check and from walking away. These are the only two big power changes I feel the GTO should have at least went to. It cannot cost that much to do the Ram Air induction package, at least that would have been a very nice addition for 2006.
Not that the 2005 needs much improvement in power. I just don’t think 3 minor changes are enough. Especially when we have such a great vehicle already at our disposal in Australia loaded with a lot of wonderful options.
My dream option: Since we all know the Monaro CV8 can hold a 427 cu in engine with no problem. How about one in 2007?
GoatFink
Quote from Blogger R.S. Davis
“2. The GTO is a joke. It looks like a Kia on steroids and it is not even made in the country that invented the damn muscle car. I know that you, Mr. Lutz, do not care for retro styling, but why use a retro name if you are unwilling to go with the styling the name inevitably invokes in one’s mind? It would have sold more models and gained more respect if you had named it something else, like G400 or something generic to match its looks.”
GTO is not a joke. I think you are missing the big pic here. When the GTO came out it there was no retro Stang, no retro 300C, no retro this or that except for the Ford T-bird.
In 2004 GTO was capable of doing 0-60 in 5.3 seconds and that was fairly decent, its the average of what an 05 Mustang will get you. I know the Mach 1 and Cobra SVT were up to the challenge and the SVT smoked the GTO, but at a premium too. The Mach 1 about equaled the GTO.
390 horsepower against 350 and it being supercharged well you know who’s gonna win.
I would hardly call the 2005 GTO a joke at all. It has in every test consistently and I mean consistently beaten the Ford Mustang GT in every review even in Ford Mustang only magazines. 400 hp of natural aspiration V8 is not a joke and the performance stats prove that point.
Next, go drive one, go sit inside one and then tell me what the joke is. The GTO’s interior is many more levels refined over the Mustang GT. Not that the Mustang GT is bad in refinement. Ford has jumped leaps and bounds in this area. But it still falls short in refinement when compared against the GTO. That is no joke.
Did you test drive a GTO? I think once you get inside and take it for a ride you’ll see this car is no joke. It’s pure power and pleasure.
You need to stop looking at the magazine articles and pictures and take a look and test drive one. You’ll see this car is no joke. The exhaust note will tell you this car is no joke.
Some of you will cry well the Charger will have a 6.1 Hemi, 300C will have a 6.1 Hemi, etc at 425 horsepower and the Ford Shelby will have 460 plus horsepower. At what price????????????
43K and higher. The GTO is 33K and offers 400 HP 6.0L V8 STANDARD!! No Joke!!!!
The GTO for 2005 is ahead of the curve, and it won’t take much to get more than 75 hp out of the LS2. That point has been proven already.
For those who lust after the power only, the 427 cu in V8 fits in the GTO. Exceeding 530 horsepower. Go check out Holden’s Special Vehicle page.
As far as the body style comments. Sorry, if the GTO looks like a European sports car and not an American muscle car retro knock off.
The GTO was never meant to be a complete retro designed car. Go buy the real deal if you want retro. Go get a 65 or 66 Mustang GT or get a 64 and 65 GTO and restore it.
The new GTO pays homage to the old one without imitating it by being retro, and its does it with greatness.
So what that it wasn’t made in the country that “invented
” the muscle car. Truth is then we’ll need to criticize every car in the US because it wasn’t the US who invented the first car. Kind of lame don’t you think? The term muscle car wasn’t even used in the 1960s. It was called a supercar. And I would highly suggest a review of your “muscle car history”. The Jag XKE would cause great unease in many of the vette drivers. The Monaro is an Australian muscle car that has GTO connections. The truth is, American’s did not own the muscle car scene exclusively to themselves.
The world is not flat, and wasn’t flat in the 1960s. It wasn’t only in America where performance was sought after.
V8, RWD, 2 door coupe and boatloads of POWER!!!!!!!
THAT GTO IS NO JOKE!
Nick Richards
In response to Jeffrey Lloyd’s comment above,
1. Automobile’s critique calls the Malibu SS engine the latest of GM’s “trusty” V-6s, implying the engines have been around for a long time. In
fact, the 3.9L V-6 in the SS is part of a NEW family of V-6 engines; new from the block up, using only the lifters from any previous GM engine. The new 3.9L employs a host of advanced technologies, such as variable valve timing (a first for a cam-in-block engine) and a variable intake manifold to
deliver competitive horsepower and torque. In fact, the use of these technologies delivers a broad torque band, with 90 percent of the 241 lb-ft
available from 1800 to 5800 rpm. And, looking closer at the engine output, it makes its horsepower at 6000 rpm, so calling it “wheezy” is a stretch. Especially when many competitors’ DOHC engines don’t rev that high.
2. Jeffrey is incorrect, however, in saying that the engine is a DOHC (dual-overhead camshafts). The Malibu SS’s 3.9L V-6 is NOT a DOHC engine — it is an advanced overhead-valve engine (or, cam-in-block, pushrod
engine, etc.).
Nick Richards
GM Powertrain Communications
Chris
Mr. Richards, thanks for the info on the 3.9L. Its cool when we get an actual response from an actual GM employee. But why wait 5 days to correct the faulty information?
Thomas
Ok, given that the engine is proven reliable, now please go and fix the front and back and the steering wheels.
Or just ask a high school kid if he would put a Malibu SS poster in his bedroom or drive it to pick up his prom’s date.
I bet he would pick an Accord.
Put them side by side and judge them by the looks. I personally want to talk to the designer who design Malibu’s front end and ask him/her why? Why a great car like the Malibu, you have to give it an ugly face like that.
I will pay to talk to him/her.
Tell me where to sign up for that.
Steve G
Why does GM insist on using pushrod engines when they repeatedly get panned in the car mags?
Why can’t GM put more sophisticated engines in their cars like the japanese and koreans do?
Step it up and put in the best you have already.
n.r. von staden
I hope its a new start after the Fiat fiasco and the Aztek to go along with that..OK we all hsave to get our shots in but we all want GM to make it…remember the unveiling of the new cars in Sept? performace is what sells cars along with he style and feel of the drive….the PTcruiser is a good example…one guy did it…..The 05 Mustang.. a great timeless design and rear drive..just an very updated 69 but look what has happened..you have to remember what happen when the 64 stang was released(sales record that will never be beat)…there is a whole new generation out there thats wants to feel that way about a car…you can still do it in less that 18 months if you al work together….
GoatFink
“Why does GM insist on using pushrod engines when they repeatedly get panned in the car mags? Why can’t GM put more sophisticated engines in their cars like the japanese and koreans do?”
I would hardly call the LS2, LS6, and LS7 engines lacking in quality. They are classic in power and still beat the snot out of any DOHC engine. I am a firm believer there is no replacement for the displacement no matter how you cut it. An example of how an LS2 engine still is outpowering a 5.4 DOHC Ford motor is good proof. So Ford has to supercharge their 5.4 DOHC V8 to beat the 6.0 LS2 engine in power/performance. You will not find the torque and power curves of the LS1, LS2, LS6, and LS7 engines in any japanese or korean eng.
Granted, the OHV V6 from GM has needed some serious updates. Needless to say, they have been performing well over the last several years beating out the last generation Mustang GT. With the 3.9 out, I’m sure GM in due time will catch up and bring in a 4.2 to keep it on par with everything else out there.
DannyK
I agree with the sentiments of James Peffley. Your largest asset resides in your passionate engineers, designers, calibrators who can or can not set the sweet spot for tactile road feedback. A Buick should feel like a Lexus. A Pontiac should feel like an Acura or a VW. A Chevy should feel like a Honda or a Toyota! These are just examples … don’t copy — be better than these examples!
Jay Miller
The first move of consolidating brands and abandoning the flawed strategy of a Trailblazer for every brand had to come, and it is a pleasure to see.
The next move is harder to determine. GM being more marketing driven, I would presume that re-differentiating the individual brands toward specific demographics would be the next step.
Yet fixing your marketing is the easy part. That may get a few more folks in the door, but there needs to be a re-thinking of just how GM designs and builds it’s vehicles.
When that step happens, then I’ll think about buying a GM vehicle. For right now, it’s just fun to watch a corporate megalith squirm.
Jaim
Bob,
Thanks for acknowledging that you read these (or try really hard to).
I have to admit you (and by you I mean your designers/engineers) did a great job on the Solstice. We saw it on the “Apprentice” last night. That is the marketing you need to do, get it out there. I have owned a 2 seater convertible for the past 12 years and am ready for my next one. Looking forward to test driving this guy, PLEASE don’t disappoint me.
Hurry up and get more cars out on the lots. And more importantly STOP using those CHEAP plastic interiors.
James
Dear Mr Lutz
I believe the U.S. is in a battle to stave off Asian economic dominance of our country. Manufacturing is an essential part of an advanced economy. GM is still the crown jewels of that industrial economy and I feel it is vital that you succeed. Although I have been angry and frustrated with the U.S. automobile companies I could never consider a foreign car. I sincerly wish you and GM the best because I belieive that you are fighting for America against foreign dominantion and yes colonialism. My biggest issue with GM is daytime running lights, I hate them. They have kept me from buying GM cars in the past. I believe that the owner should have a right top decide whether he drives with lights on in the daytime. GM started this policy in 95 and it may be more than a coincidence that market share has been decl;ining since then. I do not say this is the only reason, but why does GM wish to alienate customers who do not like this feature.
Jim Hopson
John (May 12), Christian (May 13), et. al.
I appreciate your continued enthusiasm for the Solstice. We are still on track to start building the cars this summer. The first cars built will go to those lucky enough to receive one of the exclusive First 1,000 cars we sold as part of early order program after our appearance on The Apprentice.
Then, we will start working as fast as we can to build the additional 6,000 orders we have already received. In short, we’ve just been blown away by this early response and we are going to do everything we can to get the cars into dealerships as soon as possible.
Jim Hopson
Pontiac Communications
James
Dear Mr Lutz
I am worried about the future of Pontiac and Buick.
In the late 80″s GM mismanaged its senior brands by turning them into old peoples cars. I am glad GM reinvented Cadillac and hope GM can do the same with Buick.
If Buick is to play a smaller role then let it be benchmarked against Chrysler. Buick should build cars like the Chrysler 300 in sedan coupe and wagon guise.
Buick still resonates with me because I remember the Riverias and Wildcats of the 60’s. I believe the automakers made a mistake by only concentrating on SUVs and ignoring the development of cars, especially coupes. I know SUVS are the cash cows but I believe the automakers allowed the car lines to atrophy. I wish Pontiac and Buick sucess and survival and I do not agree with Mr. LeNeve that these are brands of the past. If Cadillac had not been reinvented it would to be a brand of the past, another old persons car. Fortunately it was reinvented. The same can be done with Buick and Pontiac. Do not allow Buick to die, instead do the same with it that you did with Cadillac.
Benchmark Cadillac against Mercedes and Lexus and Buick against Chrysler. Buick must become rear wheel drive. Killing the Zetz platform was a terrible mistake. Also I think the automakers should offer more cars as both sedans and coupes instead of only as sedans. A CTS coupe for example should be a no-brainer. What about an Eldorado. Many of these old names are stil remembered and loved.
Ben
I agree with James. Also, killing the Zeta platform to “faster develop some unnamed project(s) smacks of over-reactionary management and total lack of foresight.
I’m now going to look at a Mustang GT. Just one of the American made rear wheel drive cars responsible for this upper-managerial debacle. That is if they still have one in stock I can test drive. I understand they’re ordering is 120 days out in the Tulsa, OK area.
John
Jim Hopson,
Thanks for getting back to us!
Now if you can just get Pontiac dealers to give internet price quotes, and keep them from gouging customers and thus selling the first few dozen Solstices with dealer markups, killing the buzz, and then having to offer rebates to every other customer, you might just have a hit on your hands!
I asked about this once already, and the Pontiac Customer Relationship Manager who e-mailed me back said that the individual dealers set their own business rules and prices.
That may be true, but you’d better get them on a short leash for the next 6 months, as you can’t afford to have your dealers blow the Solstice launch with lousy service and ridiculous markups.
I wish you the best of luck!
R.S. Davis
Posted by Goatfink:
“The world is not flat, and wasn’t flat in the 1960s. It wasn’t only in America where performance was sought after.
V8, RWD, 2 door coupe and boatloads of POWER!!!!!!!
THAT GTO IS NO JOKE!”
Sorry, Mr. Fink, but if I’m wrong and you’re right, why did the original GTO surprise GM executives and sell so many more than planned? And why does your beloved “new” goat sell like a rotten rat sandwich from a homeless street vendor? In ‘64 they hoped to sell 5,000 and ended up selling over 32,000. Today those figures are reversed. I never said the ‘new’ GTO was a slow or bad car. I never said an XKE could not compete with a Corvette.
What I did say was that it is a joke to use a retro name and expect people to buy a car based on the status and history of that retro name, but design the car to look like a lead turnip from Tokyo.
You can put a JATO rocket engine on a Yugo and call it a musclecar, supercar or a Vegematic; it makes little difference to those who know what ‘GTO’ means in terms of American car history. This car does not live up to the reputation of styling and presence that the name implies. I still stand by what I say - if you insist on emasculating Pontiac by destroying every legendary name and marque in a vain attempt to ‘modernize’ it, then what the heck is the purpose of using a retro moniker like GTO?
Sorry to drive you to histrionics, Goatfink, but you misread what I said as clearly as GM misread the market by releasing an Aussie-built, Honda-looking blob and gluing on the most highly revered name in musclecar history.
Is the new one fast? Sure. Does it have a nice interior? Sure. Does it handle well and brake well? Sure. So does a Nissan 350Z. Why not call it ‘GTO’ as well, or ‘Trans Am’ or a ‘Catalina Super Duty’? Because that would be a joke. Just as calling that ‘thing’ you adore so much a ‘GTO’. (And I’m not so nationalistic I can’t see the benefit in saving corporate cash by building out of country to escape our ludicrous union thugs and their inane contract demands -when GM built the 4th generation F-bodies in Canada they were at least smart enough to style them in the same vein as they were engineered: American cars with American heritage and American performance, even if built in the Great White North… doofus marketing and greed for SUV profit killed those cars, not the product.)
Lastly, if I’m so wrong and you’re so right, why does it appear the next generation of GTO is now dead? Bottom line, pal, they ain’t selling.
Those who want a GTO do not accept the new version as a GTO and no amount of coaxing and spin can change the minds of those who the car was targeted at. If they had called it anything else, it would have probably sold better. But don’t insult those who reject its attempt to usurp the legend it CLEARLY doesn’t deserve. You like it? Fine.
You voted with your checkbook. But a H**l of a lot more people did too, by NOT buying it, and that is the bottom line.
Enjoy your car, Goatfink. It is fast, it is gutsy and it performs. No question.
But it is NOT a GTO.
RSD
(BTW, How much did an XKE cost in ‘63? About $6000. A split-window Stingray was about $4200 and the roadster about $4000, around 33% less. That extra $2000 was one heck of a lot of scratch in 1963. No one said the world was flat, but your math certainly is if you think the XKE was worth the extra 33%, when the Chevy was more than competitive and could be serviced coast to coast or in your own garage with ease and was not plagued by the Prince of Darkness, Lucas electrical wiring. And by ‘64 the real GTO arrived and was about $3500 with Tri-Power, 4 speed and Posi-trac and could boot a Jag or a ‘Vette into next week on the strip. Sure other countries built fast cars, but America built just as fast cars, if not faster, than anyone else in the world and for a heck of a lot less.)
motorman
The styling department need to get the wheel well openings smaller to fit the tires because most GM cars look like 4 wheel drive trucks with all that space around the wheels. No one uses tire chains anymore so there is no need for all that clearance. Look at the MB and BMWs the wheel wells come down over the tires to give a better looking stance to the cars. The C-6 corvette even has this problem and a lot of Corvette owners lower the cars themselves. you do not have to lower the chassis just lower the bodies over the suspension.
Rickie
Hey Bob- Thanks for your candid blog. There are thousands of Solstice buyers waiting to find out when production will begin. Isn’t it time to let us in on the “secret”. Most of us were hoping to have our cars by the summer. What’s up? I’m one of the lucky first 1000. Rickie
Don
Let me first say that I appreciate the fact that you are making yourself available through this blog. I just read about it in the paper.
As a retired GM employee I have a special interest in what GM does. I guess I don’t understand why GM is not more of a leader rather than a follower. If H2 becomes feasible in a few years I would readily agree that GM is taking a leadership role as they should. But what about now. Why has GM placed its future with SUV etc when the everyone could see that gas prices where going to hit the roof. This reminds me of the 1980’s when we were stuck building large cars because they broght greater profits. This sounds fimilar doesn’t it. So my point is, why does GM not take the lead in hybrids, unique smaller cars and sedans. Usually the answer is that we build what the market wants. But if that was the case, everyone would be playing on the same field and GM would not be in such a difficult situation.
Thanks for the opportunity to comment.
Don
Jamie
The problem facing General Motors today is the product line. There is a grotesque amount of front wheel drive cars ya’ll offer. These cars are styled to match Europe, and claim to have better quality than the Japanese. Unfortunately, that’s a false vision that GM has. A wide array of rebadge front wheel drive cars on a “global” platform is not what consumers want from an American car. Consumers want what Americans are known to build the best, rear wheel drive vehicles. My prediction: Honda/Toyota maintains the front wheel drive market, Chrysler/Ford runs away with the wide open rear wheel drive market, and GM is left with a eroding truck market. Good luck playing catch up five years from now!
Edward Hayes
Lutz, Lutz, Lutz, Lutz, Lutz
Read this…
Read this…
Sales outlets should respect your five price class heritage. No paring of luxury Buicks with Pontiac and GMC’s.
Your full hand is…
1. Chevrolet (Daewoo)
2. Pontiac/GMC
“Professional grade, professional play” Dealerships for the blue collar professional.
3. Saturn/Opel (Vauxhall-Holden)
“Full line import fighter” and Opels complement Saturn and fill out their line. Let Opel sell in California GM only 17% of market there.
4. Buick/Hummer (Saab)
“The perfect escape on the road, or the perfect escape from it.” Dealerships for the white collar elite.
No more Buicks at low cost dealers. Nike will not sell sneakers through Wal-Mart so why sell Buicks through GMC dealers.
Buick is the Hummer of the car world. And Buicks are Big Saabs and Saabs are small Buicks price wise that is.
5. Cadillac “Top of the world.” Art & Science (Thanks for the book) is more than a design theme it is a miracle; a movement that is shaking up the auto world.
Buick can do the same if it finds its heritage with themes from the Buick 8 and Hummer H3 with its thin, high window profile. Buicks can rule the car world like Hummers rule trucks.
Your full hand won America and it can win the world. Continue breaking down those boarders.
A GM without boarders.
Dan Winegarden
We read about the cost disadvantages GM faces because of high legacy costs associated with retirees and comparatively rich health care benefits. What I haven’t seen is how this translates into product design choices or limits. Can GM afford to refresh products less frequently? Are old engines a resulting necessary economy? Are GM’s interiors less expensive than VW’s or Toyota’s?
In my experience good product design is not necessarily more expensive. Were do GM’s excessive costs show up in the product?
Carlos Fernandes
Quality, reliability, fit, finish, egonomics……I don’t care about this.
First comes image. Me in a PONTIAC. A tuff mean performance image. What happened?
I don’t like what you’ve done to Pontiac. I’ve had 4 Grand Am’s since ‘85 and it broke my heart to leave. I mean it.
All the current models suffer this washed out smooth looking “toyota” shape. The G6 looks like a big Neon. The 2dr coupe a Solara lady car.
Me? A Mustang GT now.
I’ll keep waiting till you get it right (again)
Brad
I think the current GTO is very uninspiring,boring and not worthy of the nameplate.REGARDLESS of the drivetrain. The Holden Monaro is NOT a good GTO.
The original GTO was a car already in the lineup, We all know the reasons why that was not done this time except no one seemed to look at a car Pontiac has/was developing already that could have carried the nameplate more proudly,and exciting like the G6.It has a look and in a 2 door version with RWD which could have been engineered in while it was on the drawing board, it would be awesome as the GTO!
A 2 door, RWD G6 SHOULD be the new GTO right now!
Fuzzyman
Bob,
I agree that making great products that people want is key. But it will take time and focus to restore GM’simage of quality. My last GM car was an ‘87 Bonneville, and it barely made to to 100,000 miles. Now, I know that cars are much, much better these days. The 80’s were a bad time for everyone. But it left a bad taste in my mouth.
My last two cars were Chryslers and I was very happy with them (Cirrus and Concorde). Needing something more fun to drive and with more space to haul stuff, I went small SVU/wagon shopping.
The Equinox and Vue didn’t even make the list (pricing them online showed them to be way over my budget. Were there inscentives? I dunno). My wife, having owned a Saturn, practically forbade me to go there, even though I like the look of the car. The PT Cruiser was a contender and a great value, but the handling was a little soft for my tastes. Subarus didn’t make the cut due to a reputation for transmision problems. Likewise, Ford products didn’t make the cut due to reputation. (Okay, I grew up a Chevy guy and it would kill me to own a Ford).
I’d considered the Malibu Maxx, but again optioned the way I wanted, too expensive… and ugly as sin. Sorry. The Saab 9-3 and the G6 look so good, it’s hard to beleive they share the same platform.
The Mazda 3 was a fun drive, but too small (by the way, why couldn’t the Cobalt be as attractive as the Mazda? What are your stylists thinking?). So I ended up with a Honda CR-V - mainly because it fit all my needs at a great price, but also because (yes, here is the point, finally) they have a reputation for bulletproof quality. That was the deciding factor in this case. I need a car that is going to 200,000 miles or 10 years. GM cars, sadly, do not have that reputation.
It was a difficult moral quandry for me to buy a Japanese car made in Japan. I’ve always believed in supporting the US industry by buying the best US products as my way of saying, “Yes! This is what you should build! Keep going!” But I need this car to last a long time. I’m putting a lot of miles on my car and I can’t have it be “used up” as soon as it’s paid off.
So I have a Honda. They got me. Can you get me back? What will GM’s rep be in 10 years, when I’m in the market again?
jim
Bob-
The only thing missing for me with the New-Generation GTO is
a FACTORY SUNROOF.
I wholeheartedly realize that this thing doesn’t have one for a reason, and that it is most likely an engineering issue.
I think that if you fixed that and did something about wheel choice (think chrome), that you would have some incremental sales on your hands.
I won’t even consider it because of this shortcoming.
JIM
PENNSYLVANIA
The Painful Truth
NSAP: You love your Equinox, and you should, it’s not a true, GM designed vehicle, read the tags all over your car and under the hood, yeah, that’s right, it’s not english. you drive a Honda based, Toyota copied, Korean built product of Asia, that’s why it’s high in quality, that’s why it’s reliable and that’s why it looks nice. I also suggest, before praising, praise the right individuals.
The Equinox, which if you didn’t know, noticed or relaized, it’s not a true GM product, just another rebadge from a Daewoo/Honda/Toyota/Subaru/Suzuki GM joint venture.
Good luck w/ that all Amerisian product.
The Painful Truth
Don't Do That
To anyone who has ever done so, specifically STAMBAUB in this blog. Please, don’t insult the VW Beetle, it’s history, accomplishments, innovations, record and uniqueness by comparin it’s glory to that of what the HHR might be. It is a different time, and a different time, my friend. Don’t Do That. Comparing what the VW Beetle has been in the automobile history to the HHR. The HHR is a copy of the PT Cruiser, and will never accomplish nor compare to the ever mighty VW Beetle. Expecting the HHR to be what the Beetle has been and is, You will be dissappointed.
Don’t Do That
C.P.
Just have alook at the holden ss ute now thats a sure way to make money.
Jim Geiser
Quality is a state of mind when it comes to an item as complcated as an automobile. So when you turn on TV for the night news on your local station and see 6 or 7 auto commercials and the ones where the “owner” is screaming that he has umteen thousand cars to sell at rediculously low prices (that means he is not makeing his full spread on each car) and that he is great and has always been great, how can you trust the quality of such a product that the manufacturer helps to advertise this way?
Accords for all
I appreciate the ability to talk to a very influential person within GM, however when I found out that Mr Lutz helped t push the Explorer into production in 85 / 86. It bother me a lot.
I enjoyed your car-lover personality when you were over at Chrysler and felt bad when things changed over there. But, being at GM with the bean counter culture and the organization structure would kill a lot of the car-person in Mr Lutz.
I drive a 1992 Honda Accord with 500,000 original miles. I also purchased another Accord of 05 in such perfection it hurts. I say this to taunt GM about what they can not produce — perfect reliable mid sized sedans, that get redone every 4-5yrs.
It also bothers me that one of the problems that GM encounters are its SUVS, its poor attempt at a minivan, given to 4 companies.
GM needs a lot of help. They need to cut down the models they have, the people they have, MAKE WAGONS AGAIN. Stop selling people on an Yukon, Trailblazer Suburban. When GM starts giving people what it wants.. instead of showing them what it wants to give them, things will be a lot better.
How many people take a HUMVEE off road?? How many people take a Trailblazer off road?? SUVS are a problem for safety design and security. Height, safety and size are not a compensation for being in a good sedan. Admit your problems to Honda and Toyota and the world, and start making sedans that people want and stop lying to everyone by producing 5,6,7000lb suvs!!
Make the world a better place!
Ed Kastler
It would seem a perfect opportunity when the present Employee Pricing for Everyone program ends to announce that all GM products will begin using the Saturn no haggle price system. We are moving our pricing down to match the transaction price so why delay. We should take the bold step, go for the gold, and go for the throat. This is a team effort union, non union, management, investors, and dealers, all pulling together. We are leaving the biggest member of our team out. We need to bring the car buyers back onto our team and the best way I know is to be honest and upfront. No hidden motives just great cars at the a great price the same for everyone no mysteries no deception bold cold truth. We need them to trust us and join us and together we can win.
Ron Couch
Greetings:
I am a grateful GM salaried retiree, and the welfare and security of my family and I depends largely upon the success of General Motors. I promote GM products and have owned over twenty GM cars and trucks between 1960 and the present. I’ve probably influenced a dozen or more people to buy GM. I feel confident, after reading the “Plan” GM is on the right track. GM retirees will be as faithful as GM is to them. Some trust was lost as a result of cost-cutting measures among many salaried retirees, but we remain, largely, dedicated, as we were when actively employed. GM functions at its very best in difficult situations. Adversity will strengthen the General!
Ron Couch
Evan from Orlando
Bob, The New designs for Saturn are amazing and as long as the prices stay reasonable and performance and reliability stays strong I will keep purchasing Saturns year after year. Along with an Escalade. I hear all over ONLINE that alot of BMW Z4 owners are interested in buying the Sky. I can’t wait to see how far we go up the Car Company chain. Keep up the awesome designs and I won’t stop buying. It’s all eye candy. Thanks.
Evan from Orlando
Hey Bob,
Regarding the Saturn SKY.
I think that for this amazing car you need to have a really cool commercial. Marketing is really important even though these cars sell themselves. Get Micheal Bay to do it, he works with Jerry Bruckheimer on movies like Bad Boys 2, which had an amazing Car chase scene to get ideas from. Go here and contact Mr. Bay: http://www.michaelbay.com/
Also, I would love to see The Sky Redline or V8 conversion in a James bond movie. make it flying around corners. No more Saturn Clown Ad’s. Thank you,
Thomas
HHR? It is 6 years too late and one gear too short.
Boy it really takes you guys that long to jump on the retro wagon.
It looks better than Aztek and it should sell more than Aztek.
Ron Couch
Greetings,
I don’t expect this to be published as was my note of June 10, 2005, but since then I’ve been able to influence one individual to trade in their Toyota on a 2005 Chevrolet Impala! They love it! I love it! The dealership (Tarr Chevrolet in Jefferson City, TN) loves it, and I hope to send them more business. Congratulations on the great June sales numbers.
Bill Frank
GM should lobby their friends in the federal government for Universal Healthcare to make them more competitive in the global market. That would substantially reduce costs and help bolster the fortunes failing American automakers.
John Bakarich
I realize that you have not brought up your continuing research on HYDROGEN CELL VECHILES, but I was wondering how you plan to fuel them on an element that is not readily available. Although it is in the air, no one is able to efficently split hydrogen and oxygen. I was wondering this just because I, like many, am extremely concerned about Gm’s future.
John Bakarich
P.S. I recently drove the new Pontiac Solstice and, besides lack of rear trunk space, loved it!
George Fish
Dear Mr. Lutz.
Saturn has recognized me as one of the first to be contacted to order a Sky. As a recent retiree and former Management employee of yours at Chrysler, I am eagerly awaiting the March 2007 arrival of the Saturn Sky but have deep concerns over the launch and delivery timing. Will the majority of the problems be worked out by then, referencing the Solstice, allowing a smooth incorporation of the Saturn lineup at Wilmington?
I’ve always heard Saturn to be know for quality. Will this be of concern due to the fact that the Solstice and the Sky will be built under 1 assembly plant roof.
Saturn Corporation does not plan to let the dealers gouge the public on the units? Even Chrysler did not allow this when the P.T. Cruiser came out.
I anxiously await the oppportunity to order and take delivery of my new Sky in March of 2006, per the calander sent to me by Saturn Corporation.
Gene Strong
Fuel Economy.
It seems to make most economic sense for the US market to try to develop full size/luxury/SUV vehicles with better gas milage than to try to sell smaller more fuel efficient vehicles to the US consumer.
Kind regards,
Gene Strong
Conroe, TX
narendra nangea
dear sir, one of the greatest auto compny in the world has got its shares quoted at the lowest level in the their history. please focus, focus, focus what the world wants. a low cost fuel efficent relible vehicle. maximum buyrs are in china, india, brazil, russia and indonesia. a car costing 10,000$ to 15,000 dollrs with capability to use electricity, biofuel, cng or normal petrol in habrid form. produce 100 models in next 5years. with warmest regards. narendra nangea portland or usa
L. Mahan
Dear Mr. Lutz,
I retired from GM several years ago. Fuel economy has always been most important to us. We have two Saturn wagons, a 2000 SW and recently traded our ‘96 SL for a 2002 LW. Both current cars were purchased used, as they are no longer being produced. Why did you dump these great cars? Not everyone can afford the high costs of an SUV. Please bring back economy wagons before these wear out. Thanks.
Brian Colvin
Well Mr Lutz, you say there is no miracle cure.
Yes, there is. I have a functional strategy on how to make a platform that will first of all cost a whole mountain less than the ones you currently are making, second it is also versatile enough to have FWD, AWD or RWD. This is by simply putting to use all of the resources in your company and combining it with some technology that is already in use today.
Also, I have a few designs that yet need to be tested but show a possibility to use a IC Hydrogen engine, without fuel cells.
Of course those two statements alone will put me in the crackpot category. After all, I did not grow up next door to Mr. Wagoner and babysit his kids, so my lack of a well known name surely means I must be a nut and not worth listening to.
Kind of like how you post jobs for designers on the GM careers page. Submit your Resume, and if it does not have anything on there from one of the top 3 design schools in the world, forget it. And you do not want to see any type of creative work, right? I mean then you could hire people judging from the talent that they have instead of basing it entirely upon what school they went to. But that goes for everything there at GM doesn’t it? How’s that been working out for you then?
Bud Labitan
“Industrial Work” to “Knowledge Work” in 6 months?
I feel bad about the 30,000 GM workers losing their jobs. What can a modern vibrant American economy offer them? I recently thought about this problem while considering a run for the 2006 US Senate seat from Indiana. As a young Republican Moderate, what could I do to help these folks? Brainstorm and Broker multiparty deals?
I met with a few local GOP leaders last week at Charlie’s Ale Restaurant in Munster, Indiana, and they informed us that Senator Lugar is going forward for his sixth term in the Senate. So, it is unlikely that my senate candidacy can go forward unless the Senator changes his mind.
Here is one idea I came up with. Since there are huge amounts of genetic sequences yet to be classified, Imagine if a Senator Bud Labitan(R) from Indiana, could broker and encourage a deal between Lilly, Microsoft, and GM to develop a simple plan to convert 30,000 “GM line workers” into gene-segment analysts or “knowledge workers.” Also, imagine that these workers are all connected on a networked X-Box360 running a simple research software application (developed by Lilly, Microsoft, and GM) from their homes, within 6 months.
This temporary WPA-like program would help accelerate the discovery of genetic instructions. And, just like road building, new innovations would be developed as the projects progressed. Setting the proper incentives and time limits to government subsidized programs like these could facilitate the transfer of work groups back into a stimulated private sector of biotech knowledge work. If such a big conversion of industrial to knowledge work were brought about successfully, we would all benefit from more medicines and better health products developed.
Our Party can lead or “be lead.” Pulling our party closer to the middle is vitally important to the future successes of our party’s candidates. In my view, younger blood is needed for the healthy political competition of ideas. An elder statesman like Senator Lugar will not be inclined to tease Clinton and Obama, like Arnold went after his California “Girly-Men.” I would like the opportunity to debate as well as “tease” Clinton and Obama as a senate equal on the good issues. Playing to the media, “the Indiana Oak” may help bring more good humor back to the GOP and help maintain “mass appeal” in the middle. Without more of the middle plus additional minority support, out GOP is in for a spell of losing.
Cesar “Bud” Labitan, MD, MBA
Schererville
Fernando
I believe the GM strategy will not showed here, But I would like to send a suggestion about product, customization and service. I think there is a lot of things that you could develop using LCD screens and computer that is not being used, e.g., creating a interface that allows developers to change digital gadgets, add smart devices, build GUIs and sell accessories and softwares like the PC industry. Then you can increase the profits, revenues, experience and fidelity. Good Luck
Bob Bruton
Bob,
As a GM dealer employee (Pontiac, Buick, GMC) the line up is fresh, inovative and competitive. It occurs to me that if we are selling the design value, GM should support that in the same way Lee Iaccoca did in the turn around at Chrysler. He sold consumers on the value of the products. He sold value, not cheap pricing. I want to know I am buying a damn good car, if you ask consumers as you know they will say buy an import if you want real quality. I say the G6 is every bit as good as Honda, Toyota or the like. Let’s prove to our customers that buying American means something. I see nothing on how good our products are, but only on how cheap we can sell them. Can we not find a balance in our message? You have brought some really cool new products to market; example: “Solstice” great car, great value (not to expensive), a fun car! We should be praising inovation, design and quality, not that we can sell it cheaper than our competitors, consumers deserve a good quality product at a fair price. I think everyone would agree with that…Thanks, and good luck!
Todd Engle
As a number of the other repliers have stated the problem with GM is Vehicle reliability. GM has determined that they only want to assemble vehicles. Let the suppliers determine reliability. This is only one of the mistakes GM is making. The Japenese would never do that. I worked as the highest level technical person to hire into Honda. The CEO would travel around the world to look into vehile problems. Does GM management even understand what their vehicle problems are? GM offers one of the poorest warrenties in the business. A 10 year 100,000 mi. warrenty would go a long way in bringing customers back from their competitors and forcing GM to make a reliable vehicle. GM needs to have people in charge that understand the smallest details of what it takes to make a dependable vehicle.(Henry Ford where are you?) The details are what is important not just the imediate bottom line. GM management always blames its workers for their problems. Toyota workers make more than GM workers. If things don’t change at GM and they continue to be run by people that have no idea what it takes to make a dependable vehicle then I only see bankruptcy for them. Where would any army be without a good general.I belive that a CEO from Toyota might be a great improvement.
Todd Engle (Automotive Engineer)
(1) track warrenty by days in service. After 1 year nothing should be above .1% failure.
(early failures will show up with just about any problem)
Make a list of these problems.
(2) track this information with people located at enginering centers.
(determine whether the problem is design or process related.(engineering call)
engineering to contact plant concerning process related problems. Plant to fix problems with qualified people. Plant manager to be involved.
(3) set up teams with people from design/suppliers
to solve design related problems within 60 days
(4) present plans for solving various design problems to upper management.
(5) work with suppliers and team to solve their prolems with GM leading the charge.
(6) solving problems requires a crossfunctional approach utilizing whoever is necessary to solve the problem.
design, testing, modeling
You need highly qualitied people leading these groups.
Joe
Even thou GM is improving there vehicles I believe that still is not enough,Gm is still losing money.I believe GM must get rid of its union. The united auto union is making it harder for GM to compete agents Toyota ,Honda ,and other foreign companies.I believe once Gm get rid of its union Gm will recover and focus on quality product. If GM does not do something fast they might head for bankrupts.
Larry
Will GM ever learn from the Japanese and Germans?
I’m a physician and when I look around in the parking lots of the various hospitals all I see are foreign cars. I’ve discussed this issue with my colleages and we all agree that we would like to buy american but when you compare the quality of materials, reliability, styling and performance of american cars (with the exception of Daimler-Chysler in styling) compared to the foreign cars its hard to justfy buying american. Just look at cars like the Honda Accord, Civic, Pilot, Nissan Murano, Maxima, Toyota Camry, Acura TL etc.. The build quality and driving experience is unmatched by most american cars.
When ever I travel I rent GM cars and I’m always disappointed with the cheap interior materials used along with dashboards that look like they were thrown together at the last minute and bland styling. The engines always seem noisy, unpolished and the steering inprecise. Even cars like the Cadillac CTS have odd interiors with funky lookng AC vents.
I don’t understand why GM cant learn from cars like the Accord and TL and use these as a starting point to surpass the foreign car companies.
Edward L Miller
I am a retired salary employee who would love to see GM gain strength in the auto business. Currently I understand 0% financing will be offered which is the same story for other auto companies. Why not a loyalty rebate, if you keep your new GM automobile for two years a $3000 allowance own, $2000 lease, will be applied to your next GM automobile. This way you are staying with the GM family and the rebate is applied at a later date. Can combine both the current and loyalty rebate at time of purchase to slow moving models.
cars
The nation’s biggest automaker joined the United States Climate Action Partnership along with 13 other newcomers including Dow Chemical Co. and PepsiCo Inc. - I have got it in may 8 ,2007.
It will great news for greeners cz gm is the leading auto company ….so their joining in green revolation will be influnce to turn the world to green cars…………..thanks GM we will looking forward for ur action in this green section
BILL JOHNSON
MR. LUTZ,
I FEEL LIKE THERE IS STILL A MARKET FOR A COMPACT TRUCK IN THE U.S.—-THINK OF A CONCEPT THAT IS A “54 MODEL 5 WINDOW WITH A BED THAT IS 4″ WIDE WIDE AND A MODERN POWER TRAIN.POWER TRAIN SHOULD BE AT LEAST A V-6 OR THE NEW 5 CYCLINDER UP TO THE 5.3 LITER V-8.
TRUCK SHOULD BE LOW ENOUGHT THAT AN OLDER PERSON (AGE 66) LIKE MYSELF WOULD NOT REQUIRE GRAB BARS TO ENTER VEHICLE. I DO OWN AN ‘07 BLACK CHEVY CLASSIC WITH A 2″- 4″ DROP,5.3 LITER G.M. AFTERMARKET 4.11 GEAR,EDELBROCK HEADERS WITH TWIN CATALYTIC CONVERTERS AND 4 WHEEL DISC BRAKES. THE HHR IS NICE BUT STICK MORE TO THE SIZE OF THE ORIGINAL AND THE GRILLSHOULD BE THE SAME
Dave
I am now dead set on buying a GM vehicle because General Motors Corp Vice Chairman Bob Lutz sayed global warming is a crock. Thanks for standing up for the truth. Oh, and you can bet I won’t be buying a hybrid.