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BusinessCars & TrucksThe Game Plan...An Edited Version

Lutz at Auto Shanghai
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 by Lutz on May 12, 2005 12:04 PM

Comments

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

Posted by: Steven Whittler on May 12, 2005 12:52 PM

I'm excited about the Pontiac Solstice, but if dealers start gouging and severely marking up the price it will be a major disincentive...

Posted by: Andrew Jennings on May 12, 2005 1:07 PM

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.

Posted by: Bill Strobel on May 12, 2005 1:43 PM

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

Posted by: Jack Krupansky on May 12, 2005 1:44 PM

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.

Posted by: John on May 12, 2005 1:47 PM

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.

Posted by: Chris on May 12, 2005 2:09 PM

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.

Posted by: Brooks Talley on May 12, 2005 2:09 PM

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

Posted by: Fair on May 12, 2005 2:16 PM

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.

Posted by: beken on May 12, 2005 2:23 PM

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.

Posted by: Craig W on May 12, 2005 2:24 PM

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.

Posted by: Dale Coats on May 12, 2005 2:26 PM

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.

Posted by: Tuukka on May 12, 2005 2:36 PM

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!!

Posted by: James Peffley on May 12, 2005 2:57 PM

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

Posted by: Bill Aston on May 12, 2005 3:13 PM

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.

Posted by: John on May 12, 2005 3:28 PM

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.

Posted by: Chris on May 12, 2005 4:16 PM

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

Posted by: Mo on May 12, 2005 4:32 PM

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

Posted by: David Eagle on May 12, 2005 4:59 PM

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.

Posted by: Thomas on May 12, 2005 5:17 PM

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.

Posted by: talonsaab on May 12, 2005 5:20 PM

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.

Posted by: Sean McGrath on May 12, 2005 6:12 PM

Zeta cancelled.
No GTO after 05
Great plan

Posted by: frankO on May 12, 2005 6:14 PM

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.

Posted by: Lars Bogart on May 12, 2005 6:18 PM

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?

Posted by: Steve G on May 12, 2005 6:19 PM

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!

Posted by: kurt on May 12, 2005 7:11 PM

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!!

Posted by: ellis on May 12, 2005 8:03 PM

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.

Posted by: Christopher Clai on May 12, 2005 8:16 PM

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

Posted by: Rick on May 12, 2005 8:26 PM

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

Posted by: Wade on May 12, 2005 9:29 PM

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.

Posted by: stephen clifford on May 12, 2005 9:30 PM

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.

Posted by: Anthony on May 12, 2005 9:31 PM

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

Posted by: Wade on May 12, 2005 9:35 PM

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.

Posted by: Guy Wilson on May 12, 2005 10:25 PM

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.

Posted by: Doug on May 12, 2005 10:32 PM

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...

Posted by: Jon on May 12, 2005 10:33 PM

How about starting a blog asking your customers what 4-5 models they would like GM to resurrect? The results would be very interesting.

Posted by: gtjeff on May 12, 2005 10:38 PM

I used to think this site was cool...now it feels like a marketing tool ( hey, that rhymes! )

Posted by: schellinck on May 12, 2005 10:44 PM

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

Posted by: Bruce Sherman on May 12, 2005 10:45 PM

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.

Posted by: Chris C on May 12, 2005 11:22 PM

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

Posted by: inline6 on May 13, 2005 12:06 AM

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?

Posted by: Josh E. Oliver on May 13, 2005 12:52 AM

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.

Posted by: Josh E. Oliver on May 13, 2005 12:57 AM

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.

Posted by: Tim Geisler on May 13, 2005 1:38 AM

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 4x4s is just plain laughable.
Common guys, I want to buy from GM, but the products just aren't up to the competition.

Posted by: James on May 13, 2005 2:19 AM

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

Posted by: Edward Kariithi on May 13, 2005 2:25 AM

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.

Posted by: saab9x on May 13, 2005 4:48 AM

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.

Posted by: Craig S. on May 13, 2005 6:46 AM

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.

Posted by: NSAP on May 13, 2005 8:26 AM

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.

Posted by: Tired of the bashing on May 13, 2005 9:01 AM

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?

Posted by: Chris C on May 13, 2005 9:27 AM

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.

Posted by: Jeffrey S Lloyd on May 13, 2005 9:47 AM

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.

Posted by: Jordan T. Marmara [TypeKey Profile Page] on May 13, 2005 9:54 AM

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

Posted by: Italo on May 13, 2005 10:31 AM

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.

Posted by: Justin Berkowitz on May 13, 2005 10:36 AM

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.

Posted by: Greg on May 13, 2005 10:40 AM

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).

Posted by: Tom on May 13, 2005 10:43 AM

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.

Posted by: thecarguy on May 13, 2005 10:43 AM

BOB:

READ DAVID EAGLE'S POST, SUBTRACT 13K, THEN YOU WOULD HAVE THE YOUNG MAINSTREAM BACK.

Posted by: John Decherland on May 13, 2005 10:52 AM

Where are you plans for RWD cars Mr. Lutz?

Posted by: Brian on May 13, 2005 11:04 AM

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.

Posted by: CCRyder on May 13, 2005 11:05 AM

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.

Posted by: Robert Schroll on May 13, 2005 11:10 AM

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.

Posted by: Chris on May 13, 2005 11:17 AM

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

Posted by: Jeffrey Lloyd on May 13, 2005 11:18 AM

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?

Posted by: Dennis Schrage on May 13, 2005 11:46 AM

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

Posted by: FH Alexander on May 13, 2005 12:07 PM

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.

Posted by: stambaub on May 13, 2005 12:16 PM

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.

Posted by: Joe R on May 13, 2005 12:27 PM

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

Posted by: Boris on May 13, 2005 12:30 PM

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.

Posted by: loudpedal on May 13, 2005 1:11 PM

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

Posted by: Nicholas Seman on May 13, 2005 1:14 PM

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.

Posted by: Martin on May 13, 2005 1:24 PM

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 ;-)

Posted by: Bart on May 13, 2005 1:48 PM

The HHR is sweet, with a great engine!

I agree with stambaub, more colors would be nice.

It will be my next vehicle.

Posted by: CCRyder on May 13, 2005 2:02 PM

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

Posted by: Tim Joseph on May 13, 2005 2:07 PM

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!!!!!!!!

Posted by: Christian Aviles on May 13, 2005 2:37 PM

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.

Posted by: Chris on May 13, 2005 4:08 PM

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

Posted by: Chris on May 13, 2005 4:28 PM

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.

Posted by: Terry on May 13, 2005 4:30 PM

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).

Posted by: Keith on May 13, 2005 4:42 PM

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.

Posted by: E Chiu on May 13, 2005 4:48 PM

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.

Posted by: Wimzy on May 13, 2005 5:21 PM

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!

Posted by: Steve G on May 13, 2005 6:28 PM

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)

Posted by: Steve G on May 13, 2005 6:31 PM

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?

Posted by: Steve G on May 13, 2005 6:48 PM

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

Posted by: Kramer on May 13, 2005 7:30 PM

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.

Posted by: Edward Hayes on May 13, 2005 8:04 PM

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 intereste