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A Closer Look

2006 Impala SS
By Bob Lutz
GM Vice Chairman
To say that 2005 has been a wild ride at GM is quite possibly the understatement of this young millennium. We're certainly facing our challenges but I'm confident that the plan is in place to right the ship. Key to this success is an ongoing commitment to building world-class products in nearly every automotive segment. And, it’s my contention that we have made solid progress in 2005. Just look at (or better yet, drive) the lineup to discover this for yourself.
I can’t help but notice the perceptions and generalities I keep hearing about our cars and trucks, from pundits and public alike — even here on the blog. You often hear our products collectively criticized but individually praised, and it’s discouraging. You’ll hear an “expert” or “industry observer” throw out a blanket observation like “GM just doesn’t have any vehicles that people want.” Then you’ll just as often hear someone praising the Chevy HHR, or read a positive review of the Impala, or the Solstice, or any of our other recent launch products.
The truth is, many of our new cars and trucks are doing exceptionally well, and have met with acclaim. My recent post about HHR is but one example. But it goes beyond HHR and Solstice. The Buick Lucerne is off to a good start, generating buzz on network television and earning “Best New Car” in the $30,000 to $45,000 category from Kiplinger’s Personal Finance magazine.
The Chevy Impala continues to be a strong performer — our top-selling car for 2005 so far. Especially encouraging is the strong demand for Impala SS, with its 303-hp small-block V8, Displacement-on-Demand and 28 miles per highway gallon. The Cadillac DTS was the best-selling vehicle in the prestige luxury segment in October, outpacing the second-place BMW 5-Series by 17 percent. How many of you knew that?
The list goes on… Hummer H3 selling like crazy, and bringing new customers to the GM family… Pontiac Torrent increasing sales each month since its August launch and drawing non-GM products as trade-ins 40 percent of the time … G6 coupe and sedan both selling well in advance of the hard-top convertible debut next year… the new Saturn Vue sales up 18 percent in November… the Buick LaCrosse outselling combined Century/Regal models year-on-year for 11 out of the last 12 months. And so on and so forth.
These are the things I think about when I hear we don’t make any cars and trucks people want. Yes, we need to make more of them. No question about it. But the truth is, we do have products that people want, that people like and that people are buying. We still have a ways to go, obviously, to change perceptions. But, based on the cars and trucks we have now and the ones yet to come, I think we’re doing what we need to do to achieve that. And at the risk of sounding like a broken record… I can’t recommend a test-drive strongly enough!
Posted by Lutz on December 8, 2005 7:57 AM
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Comments
I am glad to hear you feel the new product is standing up well.
So how about some honest feedback on:
1) How close these vehicles as selling to MSRP? How does this fit into your long term plans and customer satisfaction (shopping experience and resale)?
2) How many of these sales are fleet sales? How does this fit into your long term plans and customer satisfaction (resale values)?
I think the above two would make for an interesting blog entry if they were written honestly (forget it if it would be the usual "red-tag" type propaganda entries)
Posted by: MJ on December 8, 2005 8:56 AM
Also at the risk of sounding like a broken record: when are the affordable (i.e. non-Cadillac) midsized RWD/AWD sedands coming??
Posted by: Scott on December 8, 2005 9:25 AM
Mr. Lutz:
Thanks for the blog entry. A couple of points:
1) Why is the base Lucerne equipped with a pushrod V-6 w/ only 195 BHP, when the Avalon and Azera come with 280 and 263 BHP? You'll never get me in a GM car with a 40 year old engine.
2) The Solstice: While it's going well right now, what's going to happen when buyers find out it has 1 (as in ONE) cubic ft. of trunk with the top down? I can pick up my wife, drop the top and go to the beach for the weekend. Or i can take luggage. But not both. Do you remember the Toyota MR Spyder? It was lambasted for having less than 2 cubit feet of storage.
Magazine testers have given the Solstice a pass on this, but real world buyers will not.
I know the Solstice is "your" car, but no trunk is inexcusable. of course, it's a low volume car and of no consequence to GM, but to me it's indicative of the problem.
It's going to take world beating cars, not just competittive cars, to lure my generation out of Japanese brands and back to GM. You'll have to prove that the cars hold up over time like Hondas and Toyotas, and that they'll hold their values as well. My guess is that it'll take 5-10 years to get the customers back.
I think you're moving in the right direction, but there's a long way to go.
As I said on another blog:
"I'd love to corner Maximum Bob and beg him to give me one car and 24 months to turn it around. I'll even take the Malibu."
Posted by: Zarba
on December 8, 2005 9:47 AM
Your products are getting better and better, which is good, but they're not good enough to overcome your archaic pricing strategies and lousy advertising. And up the warranties already... The budget-priced Aveo and Cobalt come with 5/60,000 powertrain coverage, yet my $30k Sierra only has 3/36,000??? Not smart.
Posted by: Arizona Slim on December 8, 2005 9:56 AM
Keep pressing forward! But I think even many of your older cars were desirable, too, with not that many outright duds. They often did not get their due in the press.
We have a GMC XUV that we totally love, and feel that these "mid-size" GM utes were very under-regarded by the press, particularly after the '05 freshening. (I also have an '04 Corvette) This brings me to my point: GM's biggest problem right now may be that people, unfortunately including many journalists, put on their cloudy "GM glasses" when they test your cars, finding fault wherever they can to fulfill their preconceived notions about GM cars. Just offhand, I recall a recent review of the HHR in Autoweek that practically sneered from the printed page from beginning to end, and for such a cool car! I felt like punching the guy.
I think many of these folks need to prop up their own sense of "discernment" that imported cars must be superior, due to some kind of fundamental insecurity perhaps.
When they get in an import like Honda, BMW, Toyota, they expect to find things they'll like and often ignore shortcomings. Take the center stack in the Honda Accord, it's an ergonomic flub! The large volume/radio knob is placed right between (and slightly below) the fan and temperature knobs, in what's looks like a related group of knobs. If that appeared in a Malibu, I have no doubt you would have heard about it from at least 10 automotive writers. This is far from an isolated incident.
Another problem is that most of the leading publications overemphasize track performance, not just for Solstice, Corvette, etc. (where it's appropriate) but on cars like the G6 or DTS. There is almost no relation to the things that most people would really care about in everyday driving and the rankings in "shoot-outs". Look at how OnStar or remote starting are sharply undervalued when comparing vehicles. I'm all for performance, but I'm much more interested (and think most others would be as well) in a car that doesn't rattle before I care about its 9/10ths handling behavior.
Until journalists and influential enthusiasts can get over themselves about disdaining GM, there is no amount of quality, style, or reliability that will keep GM from sinking further in market share (and survivability!) I wish I knew the answer, but if you're looking for a place to spend more money, you need the best possible consultants for raising GM's image across the board; a dedicated and sizeable task force ideally. I know the products will be competitive, but they need to be perceived as exceptional.
You have my sincere best wishes in turning things around!
Posted by: Bob Larson on December 8, 2005 10:18 AM
Mr. Lutz,
As you know and have done here, you can only address ignorance with data. I applaud your approach.
Hard data. No emotion.
I think your advertising needs to do the same thing.
"You’ll hear an “expert” or “industry observer” throw out a blanket observation like “GM just doesn’t have any vehicles that people want.”
Again, data - just like you provided here. Take them to the carpet on it and make them back up their opinions with data.
Kicking GM is the new national sport (well... it's not that new...). The way to take the pundits on is not to argue about opinions, but to counter opinions with facts.
"So they've got us surrounded, good! Now we can fire in any direction,
those *expletive* won't get away this time!"
LTG CHESTY PULLER, USMC
Posted by: PacerX on December 8, 2005 10:39 AM
I still think that GM has missed the boat. The details that make the cars simple to maintain and reliable are being left behind. The placement of a water pump that requires a full day of labor to replace. You could have designed this as a lifetime pump!
Ask anyone who purchases a Toyota why? They do not break down! GM tries to make too much money on parts and service!
Posted by: Douglas Kay Bohner on December 8, 2005 10:50 AM
Mr. Lutz,
Will GM jump ahead of the hybrid crowd with a diesel version? Low sulfur blends are coming and you guys already have prototype diesel-hybrids that get crazy mileage: you know this well, so what kinds of fuel prices can make it happen? I don't want to see the US get beat.
Posted by: mike weber on December 8, 2005 10:51 AM
Interesting premise. If the vehicles are truly that good (not claiming that they are not, here) then the real trick to changing perception is to simply get buyers into the showrooms.
Let's think about this. Xmas is here and most folks are taking a lot of their spare time to make the rounds of the malls and big box stores. That's where the people are in December. If the folks won't come to the cars, take the cars to the folks. I know, too simple, but who knows?
Perhaps....just perhaps...instead of knocking the wind out of the employees, suppliers and automotive infrastructure....just perhaps...a really good sales campaign would knock the socks of the buying public?
Take a little advertising risk. Could it really hurt? Actually, you need to take a huge advertising risk, and this is not about buying all the Superbowl airtime. You need to communicate your vision and how your lineup reflects it. It's been done before and it can be done again.
Posted by: Dave Lawson on December 8, 2005 11:56 AM
Mr. Lutz,
Your candor in this latest blog is refreshing. Keep up the fight - challenge the nay-sayers at every turn. Use data to prove the GM position and stimulate the advertising approach.
I agree with another blogger - the GM warranty should be increased to 5 yrs/50,000 miles. It only makes sense in terms of the reliability improvements made on GM vehicles.
Posted by: Ed Gansen on December 8, 2005 11:59 AM
My take as a GM customer:
1. Chevy HHR: GREAT vehicle. Love it. Versatile, fuel efficient, affodable, stylish. May buy one next year. Door locks need trim rings that you can even get on the Aveo, though...
2. Buick Lucerne: Great only in the upper trim levels. Still stuck with a 4-speed, G-body, and 3800 combo from 10+ years ago. No reason to trade up from my 2000 Bonneville SSEi, and my supercharged 3800 probably gets better fuel economy to boot.
3. Cadillac DTS: About the best that could be done with the Lucerne + Cadillac styling. Interior is a little too Lucerne for comfort, though.
4. Chevy Impala: Good new engine lineup, great interior, but 4-speed "old tech" transmission will be constantly compared to the 2006 Camry's 6-speed to its detriment. Don't wait until 2008 to fix that unless you like losing market share. People do read internet reviews before buying a car, and just about all of them will harp on that fuel sucking 4-speed.
5. Pontiac Torrent: Cheap "No R&D required" rebadge with a horrid last-generation, 10-year-old version of the 60-degree V6 family imported from China to save a buck or two, even though the much improved 3500 and now the 3500VVT were available at launch. Otherwise its a solid, attractive vehicle I would buy right now, if not for the "beancounter's dream" engine from yesteryear.
6. Hummer H3: Great example of what GM can do with platform sharing, just like the HHR. Fantastic vehicle, just a little too thirsty for me. Would love a Brazilian S-10 4-cyl. diesel engine in there getting high 20's MPG.
Posted by: ming on December 8, 2005 11:59 AM
I'm sorry to have to tell you Mr. Bohner, but Toyotas do break down, in some cases rather more frequently than their major competitors. Privately even Toyota is getting concerned about key products like the Camry falling behind. Take a look, when was the last the Camry won any kind of quality award? You're far better off buying a Malibu, or shock, horror! a late model Hyundai Sonata.
Posted by: Andrew Charles
on December 8, 2005 12:14 PM
Mr Lutz,
Your cars are getting much better, I'm hoping to put myself in a G6 in 2006. But there are so many people that write of GM vehicles as garbage. My marketing professor bashes GM at least once a week, making the claim that the Japanese produce more cars in the United States than the Big 3, and that the Big 3 produce everything in Mexico. I called him out on it, but I don't think anyone believed me. The best thing GM could do is start a new ad campaign that cites GM's improvement in reliability, and raise the entire fleet's warrantee to 5/50k. The average person equates a longer warantee to quality and trust in a product.
Posted by: Chris C on December 8, 2005 12:23 PM
MJ
None of these vehicles are selling for anywhere near MSRP due to the Red tag sale nor were they before.I imagine the shopping experience is not what it could be due to the fact that salespeople make $75.00
commision per sale during these programs and are not interested in spending a major amount of time with customers for that kind of compensation,resale is bad due to the incentives put on these vehicles and the low transaction price not the MSRP price.The fire sale mentality also hurts resale and perception of quality.When a lot of people think of a GM product its about how much can I get off
Posted by: Scott on December 8, 2005 1:39 PM
Nice comments from an unbiased hedge fund manager on GM, senior management and the state of its business.
Posted by: Barry on December 8, 2005 2:02 PM
Bob,
you need to offer a long warranty to prove your claims of improved reliability. The public will only see your claims as bulls**t if you don't. If your cars really are better its probably cheaper than firesale pricing.
Good luck turning it arround
Tim
Posted by: Tim Colyer on December 8, 2005 2:53 PM
The new assortment of vehicles does sound promising but the trick to selling them is in convincing customers who are already satisfied with another brand to leave their comfort zone and give a GM vehicle an honest look.
Heres a radical approach. What about a 12 cars in 12 months "Sampler Platter" lease arrangement. For a set price, customers could sign up for a year contract in which they could drive a variety of GM cars and trucks for a month at a time.
Of course the traditional business model is to match a vehicle to a buyer, sign the papers and move on to the next customer, so this whole idea sounds crazy at first glance.
But a lot of customers don't really know what they want until they find out what they don't want. Or they are afraid of getting stuck in a long term relationship with a vehicle they lack confidence in. Then there are many who just plain get bored with whatever vehicle they are driving.
This approach would be novel and probably even allow GM to charge a bit more just because they would be the first company to offer such a program.
Try something new in marketing. All those executives and ad agencies have been able to come up with for the last few years is deeper and deeper discounts. GM can't survive forever giving cars away.
Posted by: Big Picture Guy on December 8, 2005 3:06 PM
Hey, how about instead of focusing on the positive things the media is missing, how about acknowledging the valid criticisms the media is making and then saying what steps you'll be taking to fix them.
You know, like the dead feeling power steering that seems to affect every GM car from the Cobalt to the Z-06.
http://autoweek.com/article.cms?articleId=103671
"Jumping immediately into the Corvette, the difference is huge. Turn the wheel and it sort of mushes over in the direction you want it to. This is by no means SUV/minivan mushy, but compared to the Viper it feels like a wet paper bag."
You know, like the fact that the new Civic gets 30 mpg city and 40 highway while most GM small cars barely get 30mpg on the highway.
Like the fact that both Toyota and Honda offer multiple hyrid cars getting great mileage, while GM doesn't offer any. (That pickup doesn't count.)
Like the fact that the Camaro prototype/model pictures that hit the net this week probably won't be turned into a real car until AFTER the domestic muscle-car enthusiasts have already purchased a Mustang or a Challenger, which will then keep GM from making any more affordable RWD performance cars, thus continuing the downward spiral.
Like the fact that GM doesn't make a single class leading benchmark car costing less than $30k.
I could go on, but you get the point.
If GM's going to succeed, it's got to acknowledge the problems, and then address them in a 1 year time-frame, rather than promising that things will be better in 3-5 years.
On another note entirely, how about lobbying for national healthcare?
If you got Washington to guarantee healthcare for each and every American, it sure would save you all a lot on benefits.
Posted by: John on December 8, 2005 3:38 PM
Dear Mr. Lutz,
It is a pleasure to read your blog. It is very unusual in this day and age to have an Executive be this forthcoming.
My father owned Buicks (85 Electra and '89 Park Avenue) from 1986 to 1995. The Electra was a nightmare, but the Park Avenue was an excellent car. He ended up trading the Park Ave. in for a '92 Lexus LS400.
Normally, I wouldn't consider a Buick, but things have changed..I've known about Buick quality from my dad's experience with our Park Ave, but found both the product and high MSRP's to be lacking.
The real draw was the unveiling of the Lucerne. It looks excellent, the interior is a real work of art. I don't understand the complaints about the Front Wheel drivetrain..The Northstar/ FWD combination is excellent especially for those who have to deal with nasty Winters.
I frequently get ES330 loaners and they are nothing special. The LaCrosse I drove some time back came quite close to the ES in ride quality, without the jerky transmission.
I'm sure you have enough Monday Morning Quarterbacks telling you what to do, so I'll give you our perspective as 4 time Lexus LS owners:
Lexus drills "Reliability" in the buyers with every chance they get. I don't know if you remember their 1990 campaigns where they piled Champagne glasses onto a LS400, did that famous ball bearing test, and numerous others showcasing the build quality of the car..They love to brag about their JD Power scores at every opportunity.
What was the end result? They got people such as my father to plunk down $35K for brand that was unproven at the time.
The car was so impressive that most original LS owners came back for newer ones and continue to pay $100/hr for service with a smile. While this was happening the LS price increased from $35K (1990) to over $71K (Fully loaded that is) I'm sure you know the rest of the story.
Buick needs to mimic this. Enthusiasts such as myself KNOW Buick is a quality car, but the Mainstream car buyer does not. They likely take their advice from BMW crazy Car and Driver type publications.
With Buick you've got the most important part right: Product. People are impressed when they see the actual Car. But perception remains dated. People still believe Buick to be the official car for Geriatrics. The new Lucerne reminds me alot of the original Olds Aurora. It was sleek and was an excellent value for money.
All you need to do is fight the fiction with FACT. Buick has long dominated the JD Power rankings. Drill this point home in a classy Media blitz. Get rid of Tiger Woods and spend the $$$ on creative and interesting ads that show the quality. (Much like the 1990 Lexus ads or the VW ads of past)
For the record I am 23 yrs old and a Management Consultant. I specialize on B2B Relationships, Loyalty, and Retention. I don't know if Buick is aiming for my age group, but I am strongly inclined to buy a Lucerne when my Corolla lease is up. Heck if I can find a way to get out of it early, I'll be at the Buick dealership putting a deposit on a Lucerne!
I think you've been a breath of fresh air for GM, and please tell the Lucerne team they've done a great job!
Best of luck,
Sam Verma
Posted by: Sudip Verma on December 8, 2005 3:45 PM
Bob, I agree with Scott. Here we are in the snowbelt and I always have to use 4 snowtires even on FWD. What I really would like from GM is AWD, not RWD as the next generation Grand Prix is rumored to be. It was done before with the 6000, and can be done again. What a great rally car a G6 coupe with AWD would make, as well. Since you have given up on Subaru, put the minds at Suzuki to work and give us an American Audi Quattro.
Posted by: John P on December 8, 2005 4:17 PM
Mr Lutz,
Last week I saw an HHR for the very first time on the road. I must say, it looks a lot better than in pictures. I'm not sure I liked the way it handled a lefthand turn that started up and then turns downhill. But overall a good effort. I'm not in need for such a vehicle so no, I won't be buying one. I have yet to see a Solstice on the road but have seen many of its direct competitors (MX-5). Therein lies your problem. Your competitors are still ahead of you. I have no doubt GM builds good cars. But of late, GM is building cars to be competitive in a marketplace. There is nothing GM sells at a reasonable price that trounces its competitors. GM being the home team is the favorite to WIN and have been highly disappointing. An example, in my opinion, Mazda raised the bar in entry level economy/commuter cars by coming up with the Mazda3. GM finally replaces the Cavalier/Sunfire with the Cobalt/Pursuit lines. I've looked at the Pursuit and Cobalt. They are good cars (I have a few minor knit picks about them, however). But they are only competitive with the Mazda3. I had hoped they were much better (BTW I bought a MINI Cooper instead). GM no longer leads the marketplace. So my thoughts about your latest offerings? Good, even very good in some instances. But not good enough....yet. And then follows the financial dilemna. With all the discounting, does GM actually make any money on any of these cars?
We're all rooting for GM to win. That's why you're getting such hard criticism. As well as you think you're doing, it's not yet good enough. Let's see you raise the bar in all segments of of the transportation market you compete in. So I wish you all the best as you keep at it.
Posted by: beken on December 8, 2005 4:43 PM
Bob,
I agree with you that the media and magazines habitually give GM products less credit than they deserve. In the latest Motor Trend issue, the editors wrote rather harshly of some of GM's new products in the Motor Trend Car of the Year article. Specifically, they gave the Impala poor reviews and they even claimed that the Solstice is on the whole a mediocre product. In contrast, I've noticed a surprisingly high number of new Impalas on the road and nearly every dealership is sold out of the Solstice, which is selling at sticker price. It makes me wonder if Motor Trend and other magazines feel that GM isn't spending enough money taking their editors out to dinner or if they have some other bias. Whatever the reason, I share your frustration, but I'm glad to here that sales aren't consistent with the general negativity. I appreciate the figures presented in your article - I'll use them to correct my friends when they tell me that GM doesn't make hot cars anymmore.
Posted by: Bill H. on December 8, 2005 4:47 PM
Well said Mr. Lutz. GM has had a tough year but there is no doubt in my mind that they will rebound. My family has always selected GM cars and trucks for there quality, design and reliability. My personal favorite being the impala SS. This car does not get nearly enough attention it deserves from the main stream automobile press. Keep up the good work and we look forward to a great 06.
Posted by: Ryan on December 8, 2005 4:55 PM
The last comment is interesting and I agree with it at least in part. Much of GM's problem is with the quality of the products, yes, but perception is almost as much of the problem! As an example, an acquaintance of mine told me his Toyota Avalon's CD player broke. What? The CD player broke (in a 98 Avalon)?? That's funny --- the CD player in my 1997 Buick Riviera (with 125K miles) STILL WORKS. The engine has never let me down, and the air conditioner is still PERFECT and I've never even had it serviced. Yet the person with the broken CD player in the Avalon would never think to criticize Toyota. It's all in the perception. Even if the Toyota breaks down, people will be forgiving of it. Meanwhile, as my Riviera soldiers on, people (at least here in CA) think it's a piece of garbage and are amazed it's still running! Just an isolated example of what GM is up against.
Posted by: Chris Green on December 8, 2005 5:08 PM
"Ask anyone who purchases a Toyota why? They do not break down! GM tries to make too much money on parts and service!
" - WTF? GM NOW has statistically insignificant defects compared with toyidiota - try getting in a wreck in your prius and see what happens
Posted by: ghughes on December 8, 2005 5:14 PM
People think GM vehicles are cheap because 1) they break down a lot and 2) they have tons of incentives, all the time. The first issue is being addressed or even has been addressed, the second one hasn't. Why would I go and buy a car now when the next promotion might be even better?
Also, on your websites...it's a genuinely bad idea to tack on a star* and "before incentives" next to the MSRP of your vehicles. If the incentives are basically perminent...just lower the price.
You also have to beat the competitors in areas that count (performance, fuel economy) and not just match them because GM's technology looks dated and uncompetitive on paper. A buyer is going to see:
Impala - pushrod V6, 211 hp, 4-speed auto
Camry - DOHC V6, 263 hp, 6-speed auto
Which one is he going to pick, especially given that Toyota has a better track record?
You have to blow them out of the water, and as good as the Impala is, I don't think using the W-body and 4-speeds is the way to go.
Posted by: James on December 8, 2005 5:18 PM
GM's current product line-up is better than it's ever been, with many very appealing - even exciting - entries. I am constantly amazed at how the media paints the Company and its products - it's very evident that many journalists have either not done their homework, or are simply writing with malicious intent. Perhaps it's time for GM to start responding to erroneous reporting, and to set the record straight.
From a marketing perspective, GM needs to do two things: (1) continue to highlight the GM product advantages/superiority where fuel economy and features are concerned in all of its advertising, and (2) given
current build-quality, extend warranties across-the-board: nothing states nor engenders product confidence more than a good warranty, and this could be a very effective tool for re-establishing confidence in the GM brand, while at the same time, contributing to the bottom line. An improved warranty would lessen any need for discounted pricing, while at the same time, might not be that costly, given improved build-quality levels.
Given the Company's current initiative, I have every confidence that GM will continue to merit the position of the world's #1 vehicle producer. Keep the effort up, GM!
Posted by: MBB on December 8, 2005 5:37 PM
Mr. Lutz, Some of us want a rear-wheel driven flagship.
Buick Roadmaster; not Lucerne.
Chevrolet Impala; not a front-driver and with the Impala Tri-Light Taillights.
A Colorado with a V8.
And finally a Camaro worthy enough to beat Mustang again.
Does GM remember the sixties?
Or is GM stuck in Roger Smith's 80's?
Posted by: Douglas K. Duarte on December 8, 2005 5:45 PM
"Chevy Impala: Good new engine lineup, great interior, but 4-speed "old tech" transmission will be constantly compared to the 2006 Camry's 6-speed to its detriment. "
I believe the 2006 Camry has a 5 speed at all trim levels. I know that you aren't directly bashing the ransmission, but many posters in various blogs deride the HydraMatic 4 speed for having one less cog.
Will these same posters reverse their sentiments when a 6 speed HydraMatic is available in the Saturn Aura for the same price as 5 speed Imports? I doubt it. Hypocracy and criticism are joined at the hip.
Posted by: Jeremy B on December 8, 2005 5:46 PM
ditto on that last one.....ditto in more ways than one......
Posted by: ellis on December 8, 2005 6:02 PM
I was at the GM driving event at Arlington International Racecourse (IL) this past summer which afforded consumers the opportunity to drive the vast majority of the vehicles in the GM lineup alongside several popular "competition" models (BMW 3 & 5 series sedans, the new Jetta, Toyota 4Runner, etc.). The lines for the competition models were extremely long while the only GM cars with lines were the Vette (of course) and the CTS-V, and people seemed fine with waiting a good 20 minutes to drive the new (base model) Jetta as opposed to 1 minute to drive a loaded Pontiac Gran Prix GTP. Just my observation...
Posted by: jeffhenderson on December 8, 2005 6:45 PM
Andrew,
Funny that you mentioned about Camry's quality. Currently, I own both 4th and 5th gen. Camry. And my uncle has his 3rd gen.
So far, they all run just fine. The only thing we need to take care of is normal wear and tear.
Btw, I am waiting for the 6th Gen Camry which will due next year. And I am proud to be Toyota's owner.
Posted by: Ray on December 8, 2005 6:53 PM
I am amused by this blog entry.
GM is not producing cars people want. It's producing cars that it call sell to fleet buyers.
People are looking for automobiles with style. What is GM producing that is any different than evolutional from previous design, or a copy of another manufacturer?
Where's some cutting edge styling like the 300c or Acura TL or even some of the new Ford stuff?
And don't point to the HHR, it's a blatant PTCruiser knockoff.
I had personal hopes for the '07 Suburban. But what is it? It's a giant TrailBlazer. We're talking 5 year old styling. How disappointing can it get??
And what is the whole point to keeping the Pontiac brand anyway? It seems like a collosal waste of money to rebadge all of these nearly identical cars.
You don't see Toyota or Honda with a child division peddling the same cars with more plastic body cladding on them. Take the Torret. What's the point? Just sell the Equinox!
GM deserves to be out of business.
Posted by: Michael White on December 8, 2005 6:54 PM
Well, I don't have a lot of time, so a quick note will have to do. Just a few things Bob.
I'm a total GM fan. I've been keeping the GM stock price on a ticker at my desk at work, all of this sour news has me biting my nails, wondering if I indeed will be able to trade in my aging Jimmy for an 08 or 09 rear wheel drive, V8 powered Pontiac GTO or Chevy Camaro (I hope the answer is yes). Oh, and it better have an interior and seats at least on par with my wife's IS300. (Actually, I think the latest GTO is really awesome on the inside, but where is the XM Radio????)
Few mistakes GM made on recent releases:
1) Lucerne base V6 should have been the OHC 3.5L with VVT and at least 250 hp to compete with the Avalon. The old 3800 shouldn't even be offered in that car.
2) Lucerne optional V8 should have had more horsepower. The Northstar was making 300 in the old body STS, why not in the Lucerne?? Weird.
3) I like the G6, but Motor Trend said it best, why would I buy that car for $27k when I can have a rear wheel drive Mustang with 300 hp for the same money? When put that way, I thought, "good question". Lower the price and/or put a better V6 in it.
4) I like a lot of the new interiors, but they're still a tick or two behind the Japanese.
Also, in the STS, integrate the XM Radio traffic information in real time to the nav screen like the Acura RL (Caddy may already have it, I don't know)
5) And like I said before on this blog - REAR WHEEL DRIVE V8s to compete with the 300C and Charger - and a coupe to compete with the Mustang and the G35 Infiniti. Please.
GM needs some "gotta have-its" in a price range that most people would be willing to shell out. Right now, I can't think of too many from GM. The GTO is sweet, but it's a little outdated looking - I'll spend my 35K on a G35. The CTS is a great car, but needs a major redo on the inside. Buick REALLY needs a flashy, rear drive coupe like the Velite concept - something to put it on the map again. (Remember the 71' Riviera?)
Gotta run
Bob
Posted by: Bob Miller on December 8, 2005 6:57 PM
GM is improving just doesn't seem to be at a fast enough pace. Interiors are getting a lil better, but the material selection still seems sub par in most cars. Image needs to be improved as much as the cars themselves are improving. Put your money where your mouth is, if quality is up, why aren't the warranties.
Posted by: Christian Aviles on December 8, 2005 7:48 PM
While I think GM's product line is the best its been in the 20 years I've been following the car market, I'm still not seeing too many of the "gotta have" products we were promised. (Unless what I "gotta have" is a sports car or small wagon). What GM needs is "gotta have" designs for mainstream market segments. Take the 2006 Honda Civic for example, its radical design makes the Cobalt look a generation behind. It makes buying a small sedan seem exciting. I know that putting advanced design on top sellers is risky, but I think its the only way to really get the market to take notice.
Posted by: Michael White on December 8, 2005 7:57 PM
Mr Lutz:
In general I agree with the points you make in this article, but the general public's perception is that GM quality and engine technology lags the rest of the manufacturers (as is evident in GM's sales declines). That may not be the case, but it is now entrenched in the public's mind and is something you guys have to address rapidly. GM has lost the confidence of a generation of customers. I dont know how you are going to change this perception with products like the Impala, Grand Prix and Allure. They remind me of the Lumina. As much as I would like to see GM sucessful again, I find it hard to believe you when you say these are great cars.
My preference in vehicles is a rear wheel drive performance 2 dr coupe with 2+2 seating like the Pontiac GTO. Much to my chagrin, this model was not sold in Canada. I still dont understand why that bumper or whatever could not be changed to allow GM to sell me one. What model in GM Canada's lineup would you recommend for me? Word is that GM will have some excellent stuff at this year's NAIAS including a new CTS, Camaro and a second generation GTO. Please get Mr Wagoner to tell GM Canada to market the GTO and Camaro in Canada. You can write me down for one if you do.
Posted by: J Reid on December 8, 2005 8:48 PM
Mr. Lutz
I admit some of your new products are very enticing - I suggest instead of RED Tag prices - put a 10yr-100K full vehicle warranty - unprecendented in the world - to show how confident you are in your engineering - one reason GM has lost share is to disenchanted owners with quality problems they really shouldn't have had to pay for.
Posted by: Tim on December 8, 2005 9:01 PM
Bob - I enjoyed reading your comments and keep up all the good work you are doing. I recently just chose to purchase an E320 CDI vs. the new STS solely because of the diesel powerplant. I hope you you all are seriously considering getting on the diesel bandwagon. I love all the torque and the great gas mileage. Any chance the new Suburbans will get a diesel or even better a diesel-electric hybrid? We need to trade in our Excursion!
Posted by: Kurt Bonatz on December 8, 2005 9:02 PM
GM cars are what I call 3/4 complete. They either have 3/4 of the styling correct, or 3/4 of the ergonomics correct, or 3/4 of the fit and finish correct. Even the Warranty is 3/4.
I have been in numerous GM cars, mostly rental cars and the interiors light up like Christmas trees. The interiors look better at night than in the day where you can actually see them, and they suffer from poor ergonomics.
GM historically has never been able to produce a small (external dimensions) lightweight automobile that can compete with the imports, with the exception of the NEW Cobalt all GM cars are larger and heavier than their competition
With the exception of the C6 Corvette, and possibly the Solstice (which is overweight) There are no GM products that I would ever want regardless of how much you reduce their price. It's been 20 years since I last bought a GM product, an IROC Z28 and the 6 Pontiacs before it.
Posted by: Nelson Paiva on December 8, 2005 9:46 PM
Mr Lutz,
I'm an auto consumer on the east coast. (An early 30-something, single computer scientist who can choose to buy almost any car he wants, in case you are curious about demographics.) I've followed your industry with intense interest for over half my life. I read many of the auto industry trade publications, and I'm well aware of your work at GM. Unfortunately, promoting how you do relative to your sales targets, or saying that you sell a lot of cars, doesn't bring me into your showrooms. No one that I know out here seriously considers test driving a GM car right now. Want to attract me (and many of my friends?) Here's what you need to change:
-Styling! You've done a great job with the Solstice. But nearly every car from GM has *extremely* conservative styling. When I go to auto shows, I see many people around the Lexus and BMW spaces, and even around the Honda and Toyota displays. But relatively few people visit the GM displays. The cars just aren't exciting. Does the Impala sell well in middle-America? Perhaps. But around here, it just provokes yawns. I lust after the 3 series, the new Civic, the Lexus IS, and the Lexus GS, depending on my mood. I also love the Prius. Audi had outstanding styling until they stuck those gaping grills on their cars. These cars excite me for different reasons, but they all captivate my imagination. Does the Cobalt? No. It hardly looks different from the car it replaced. The Malibu? Sorry. The Malibu looks like a room full of 70 year olds mashed together parts from old GM cars and trucks. I've noticed that GM styling in any year usually looks like someone else's styling from 5-10 years before (often GM's own.) Short overhangs are good. Boxy is not.
-Quality: JD Power initial quality ratings don't impress me. Consumer reports does. More importantly, so does any contact I have with your car. I only drive GM cars when I have to rent one. Rental cars are generally the lowest end model. This is probably how many people are exposed to your cars. It's not a good way. We see don't see you at your best. When I did sit in several of your cars at the last auto show, parts nearly broke off in my hand in a new Malibu. Sitting in my friends' Saab 9-3 for two weeks, I heard rattling and squeaking at only 3000 miles. Quality also comes from choosing the right feel and sound to every interface. The door open chime that you hear in every GM car has not changed since the terrible models of the 1980s. It makes me associate your cars with the mistakes of the past.
-Comfort: I'm short and small framed. I need good back support. I don't need a couch. You may have improved this lately. I'm not sure. But your past cars have not been comfortable for me.
-Handling: I can't emphasize how important this is. If a car has mushy handling, I won’t buy it. My standards here are the BMW 3-series and the Honda Civic. You need to have a car that is competitive with the 3-series. I don’t think that it can be a Cadillac. The brand still says 70 year old to me. Pontiac might be a better choice, but the brand is too far down market. A new luxury performance oriented brand might be what you need here. Something without the baggage of the past.
-Safety: In government and Insurance Institute for Highway Safety crash tests, Honda and Toyota consistently lead the reports that I see. You may have one or two cars in there if you are lucky. People don’t want cars that they perceive as less safe.
-Fuel economy: You make a big deal out of cars that get 28 or 30 highway. Many of the cars that I’m interested in get 40 or more. (Civic, Prius.) You are not competitive here.
-Rebadging: Make one car for each segment and make it world class. You have many cars that look alike, none of which are exciting (except the Solstice). Each of your cars needs to be something that I lust after, not just another variant on the same car.
-SUVs: I won’t buy an SUV. I just won’t. I can’t stand SUVs in appearance, in how much space they take on the road, in safety (roll overs), or fuel economy. I can’t see around them. They ding my car. They take too much parking space. They lack maneuverability. You won’t get me in to one. I wouldn’t want to be associated with one. Give me competitive cars. I know you make a lot of money off of SUVs, and plenty of people like them. But you need good alternatives for those who don’t want one.
-Value: Surprise me. Give me more than I would expect for the price. Not for the price with $5000 of rebates. Not for a car that is bigger, but not competitive for the same price. Hyundai uses this strategy. It works well. Toyota gives you better reliability, and controls that are simpler, feel nicer, and just give you a better impression. GM has focused for 50 years on selling cars that are designed by accountants. It still doesn’t work.
-Environment: Perhaps GM’s greatest failing. I was working in the lab where the first hybrids that got 80 mpg were built. A clean, efficient hybrid is attractive. The market clearly says so. You don’t have one. GM has fought every environmental improvement in cars for as long as I have been alive. It is hurting you now. Yeah, hydrogen fuel cells might be great some day. But you know that they are perpetually 10 years into the future, and it looks to me like GM is using them as a bargaining chip to push back CAFÉ standards. Not good for my perception of you. Toyota will shortly have a hybrid in every segment. Hire some great engineering students to design you one.
-Patriotism: You try to sell patriotism in your marketing. Doesn’t help. I just want the best car I can get.
-Anything saying you are improving: doesn’t help. You either have a product I want or you don’t.
-Mixed brand messages: Ummm, so Pontiac is the performance oriented poor handling family rental car which might be an SUV brand, right? Target a brand at BMW, at Lexus One, and at Honda and Toyota.
I’d be happy to give you feedback on future or current products, or to talk to you further about ways in which GM can improve and bring customers like me into the showroom. Please feel free to drop me a line.
Michael
Posted by: Michael on December 8, 2005 10:01 PM
Mr. Lutz,
I think GM has gotten to the point where it's not about the cars anymore. I think it's become about the internal structure of GM. Maybe it's time for management to take the cats they want to take the least, among themselves. If you took a much smaller base salary and then tied your personal income into the future profits of GM, could that decrease the costs across the board. Now what if the rest of upper management performed this?
It also may be time to examine the Corporate culture of GM itself, it may have become hostile to efficiency. An example, look how quickly the solstice concept was created, but how long it was until a car rolled off of the line. If were internal factors interfering with the roll out, those would interfere with the life of GM.
Mr. Lutz, i think GM can return from this edge, and I look forward to when it does so.
Posted by: Donovan on December 8, 2005 10:37 PM
Mr. Lutz: Had the pleasure of looking at the new Lucerne last week and must say it is quite a step up from the LeSabre and has the most comfortable back seat that I have sat in, the front seats were also very comfortable and the interior had quality look to it. As far as the 3800 being the base engine, what is wrong with an engine that provides more than adequate power and delivers up to 33 MPG in the real world (at least in the LeSabre). Adding variable valve timing and Active Fuel Management would give this quality engine a nice boost in power and with the 6-speed automatic deliver even better MPG silencing most critics. And the improved volumetric efficiency of a 3 valve head would give another boost of power and even better MPG. The only problem on the Lucerne is the omission of fog lights, stabilitrak and Magnetic ride control on the V6 models, there are many Buick owners that buy Buicks because of the 3800 engine and would like to have these safety and comfort options with the great gas mileage. GM needs to take better care of the customers it already has and there is a large and growing market of aging and affluent car buyers out there who appreciate what Buick offers.
It would not hurt to make the Velite convertible and sedan to attract the younger buyers either and as one of them, would be interested in one, and can only hope that the Grand National returns.
There are some very interesting models that GM offers but never says anything about; the Express van is available with doors on both sides for easy passenger entry/exit and AWD is offered, I have only seen one of these on a dealer lot and recently searched on-line for a friend and found none within a 300 mile radius. And after pricing one out, found it competitive with the Suburban there are people out there that need a vehicle to haul more than 7 passengers and/or large amounts of cargo and passengers that this vehicle is ideal for. The worst part is most of the dealers we talked to didn’t know it was available of an idea of what one would cost, and fewer knew that the Duramax diesel is available this year. The AWD and doors have been available for more than a year but no one knows about it. The AWD version would be attractive to orphaned Astro buyers. The added doors and AWD are options not available on any other full size van which really adds to the confusion of why nothing is said; here GM has exclusive desirable features with no ad campaign.
Another unknown vehicle is the short bed (5 foot 9 inch) version of the Silverado/Sierra Extended cab pickup; while Ford does offer a similar model it does not have the rear leg room of the GM trucks. I did test drive one of these and since it actually fits inside my garage and not having to do the “two-step” in most parking situations helps too, might buy one. The Sierra Denali is another little known vehicle and maybe the best truck available on the market. There has to be something attracting buyers to the oldest design on the market since Silverado/Sierra sales are up for the year something Ford and Dodge cannot claim (and they also had blow out summer sales).
Canyon/Colorado, Terraza, Relay, Montana SV6 and Uplander minivans sales are up year over year and Cobalt sales are up over Cavalier sales year over year.
As you quite rightly point out GM does make desirable models that are selling and has the capacity to offer even more.
On a related note, I was at a Buick/Pontiac/GMC dealer when I looked at the Lucerne and drove the Sierra and this is one of your best ideas. It makes sense when you are at the dealer and can look at cars with a sport feel or a luxury one along with a full lineup of trucks, SUV and Vans. And for anyone that is wondering I do not work for GM or in the auto industry.
Keep up the good work and thanks for your time.
Posted by: Rick Lupori on December 8, 2005 11:08 PM
This year has been a year of transition at GM no doubt and it has exposed the two faces of GM. One is the domestic side, or slide and the other a vibrant, growing, diverse money-making international side that is eclipsing the domestic side in importance. The milestones that GM has seen this year underscore this fact.
1. For the first time GM will produce more cars abroad than in the U.S.
2. GM becomes the #1 automaker in the fastest growing automobile market in the world, China.
3. GM is enjoying significant growth in every corner of the globe with the twin offensive of Chevrolet and Cadillac to become global brands.
4. The race between Toyota and GM for market leadership shifts GM's growth efforts abroad into overdrive.
5. Explosive growth of Daewoo as a low cost export hub and design center for compact cars.
6. The emergence of European operations out of the red.
7. The worldwide harmonization of the design centers and their focus on specific specialties for worldwide consumption.
8. Worldwide product sharing and rationalization that brings Opel to America as Saturn, Holden to America as Pontiac or Buick.
9. Flexible manufacturing that makes more of #8 possible as we bypass the problems of currency fluctuation.
10. And this most important fact has not been lost on me. The emergence of GM as the undisputed design leader. Period.
There is not a person alive that can tell me. There is no company on earth that can create a Solstice, HHR, Hummer H3, Holden FJ Efijy, Aura, Sky, Escalade, S3X or T2X. Nobody. Toyota doesn't even come close.
If Wagoner and Lutz figure this thing out and we see something like the Holden FJ Efijy sold as a Buick in the states profitable at any volume and capable offlexing production to equal market demand then that is the secret to GM remaining #1.
Posted by: Edward Hayes on December 8, 2005 11:22 PM
What the previous poster said about diesel hybrid is a great idea. Since diesel is about 20% more expensive than gas, given that the current Prius has about 50-60mpg in optimal conditions, if you can offer a diesel hybrid with at least 60-70mpg, without generating more pollution, I would seriously consider buying a GM. I think more than any advertising, you need a cool product that makes people think you're a cool company. Like the iPod did for Apple.
I should also mention that you should make cars that are fun to drive. This probably differ by person, for some people this may be rocket to the moon acceleration, but for me I like the challenge of optimizing gas mileage. In some sense it's like a game, and the mpg display is like my score. I recently discovered how cruise control can improve average gas consumption on a trip to Canada.(land of $3.50 a gallon gas) I think giving the driver more access to information about the car and their driving statistics would make driving more fun. The mpg display is a start, if there are any other driver controllable variables that can improve performance, etc, by all means display them in an understandable manner. I think as with all complex products, like computers, the more I like something, the more I want to know more about it, and the more I know, the more I love it. It's like learning to appreciate an aspect of your car that you never knew before, and I think this experience is what will make a car cool to the consumers.
It's not necessary to start off with a bang. Prius started small, but the people who got them loved it. People talk about driving in "stealth" mode, where you only use the electric motor for short trips and it's ultra quiet. This is an entirely new driving experience, something that is unique. If you can give even a small number of people this kind of experience, they will evangelize for you and rave about how awesome their new car is to all their friends, relatives, co-workers, probably even strangers. If people really love something, they'll want to share it and help other people enjoy it too. You'll know that you got it right when people form fan clubs around your products.
Posted by: Jeffery Zhang on December 8, 2005 11:37 PM
Mr. Lutz,
GM does have the cars I want. You sell them as Holdens in Australia. You could have had my $35,000.00 but it went to Acura for a TL. SELL THE COMMODORE in the US! I'm 40 years old and I grew up with the non-American styled cars, you need to bring some of the overseas style to the US. The GTO doesn't cut it. I have a family but I still want style and FUN!!!
Posted by: jup
on December 9, 2005 12:21 AM
Hello Bob,
Your role at GM has been product and I think you have really made a positive impact since being onboard.
However GM is in a crowded market of "me too" companies, all chasing the same bogue with the same strategies.
Somehow the other GM management groups need to "break out" of that mold to make your products successful.
Look at Dell, they were in a "me too" market and broke out. Their products were world class but so were their competitor's products.
GM needs to define a strategy of what it wants to become and how to get there.
Posted by: Rene Curry on December 9, 2005 12:23 AM
There seems to be two ways of looking at the GM's falling north american sales figures
A. Consumer perceptions of poor products.
GM is seems to be trying very hard to get out of the "sunfire era". I believe the're on the right track, but the race has just started.
"Legacy Cars"... not to be mistaken for legacy costs (which if you found a way to still cover, could be used as a Huuuuuuuugggggeeee goodwill messege to the american public... actually the whole world)
Legacy cars are you're driving billborads. People see them everyday and form perceptions about your products based these cars. I think it's time to really impress autobuyers with a product that is universally loved while at the same time can appeal to the masses... basically, you need a volume car that people REALLY love.
B. Marketing strategy
How convincing is an "American Revolution" when the new volume car is also a suzuki?
YOU NEED TO IMPRESS PEOPLE IN UNEXPECTED WAYS.
bottom line, you need to take up your marketing strategy.
(que fiddle in the background)
Ad a marketing grad, I searched really hard for a way to apply to you're company, but all you hire is engineers... if you guys ever start to invest in marketing, please email me back.
Untill then good luck
Haig Istanboulian
Posted by: haig istanboulian on December 9, 2005 12:36 AM
I think that GM is headed in the right direction, but too slowly.
Where are the 20' wheels for the Lacrosse/Lucerne??? or for the Torrent?? And while we are on the subject, What's with that crappy Torrent engine??
Where is the CTS coupe?? A lack of a 2 door CTS is why I am currently driving a BMW 330 coupe.
There is one thing that GM excels at over any other car company: making Cars that are "just good enough".
The HHR is interesting, Mr Lutz, but overall I expected better from GM and you, personally.
Posted by: Kyle on December 9, 2005 2:37 AM
Wellcome back Bob! I missed your blogs for a while.
I agree with some of the other blogs. GM does have great product and product quality.
These characteristics are not coming across in the advertising.
You need to get a wild group of people together and do some heavy-duty "creating" that gets people turned on and into the showrooms.
Good luck and keep those blogs coming. Love them!
Posted by: Ethel O on December 9, 2005 2:48 AM
1) Everyone seems to get upset that GM puts cars out "on sale". I loved the way you could look a car up and it told you the rebated price right away. Everyone gets mad at GM for this, but darn all JOB ONE is to get people in these cars so they can tell their friends that they are indeed very close to or better then Toyota and thousands less (even at MSRP).
2) Yes, I think GM has to put a 5 year warranty on their cars. That said a powertrain warranty on my car covers pretty much nothing that would break (starter for instance) except something terrible .. which I would probably get the company to pay for anyway (even out of warranty) as it would be a glaring defect. I only say that because Chrysler often covered me after the warranty was out if I could show there was no abuse to the car (this dates back to 1995 model, I have had zero problems in my 01 and 05).
3) New GM products are outstanding. Breath of fresh air. Lutz has an great feel for the product -- Focus on the product and the rest will fall into place.
4) GM has some real odd packaging of options on its cars. I always like to control things like ABS (being taken off a deluxe model, unless attached to the stability option), and Side CURTAIN Airbags (being on a base model). Minor I guess as most people buy what is in stock.
5)GMs problems are in it infrastructure. I'm not sure those can be overcome without "something" happening. Unfortunately the government will not be a help in making the playing field level, so I suspect something more risky. Consider this, Toyota (Honda, etc) have NEVER faced an American car company on the same playing field. And they are fighting tooth and nail to prevent it from happening (outstanding lobbying).
6) If GM can be faulted for anything, it is doing this all maybe three years late. Time is not a friend now, so it makes decisions tougher as you have to trust your instinct more.
7) Great to see the Persuit is being offered in 2 doors now like the Cobalt. That should help.
My 2 cents worth.
Posted by: Glenn Laycock on December 9, 2005 2:55 AM
This coming from someone that's owned 3 GM products, 2 Fords and 2 Hondas...
First of all I'd like to say I respect what you've done within the walls of GM by addressing the needs and wants of "car guys and gals". I applaud you on bringing the Solstice and Sky to fruition. I don't think it would have happened without your clear intention.
Also, I don't pretend to know everything that is happening inside the company. But here are a few things that come to mind. Please take them as suggestions rather than criticism.
I believe part of the problem starts with one of your comments "Key to this success is an ongoing commitment to building world-class products in nearly every automotive segment."
"Nearly" every automotive segment? Why not build world-class products in every logical automotive segment and drop the others?
Facts:
1. GM isn't selling as many cars as they would like at the price they would like, and as with anything there has to be a reason for it.
a. My first question is if GM cars are so desirable why are there so many sales (red tag, employee pricing, etc.)?
While GM's ongoing sales programs might have helped the company short-term it creates an image of GM's automobiles being 'cheap' and not worth the asking price.
b. Why are so many vehicles sold in fleets?
c. Why have Toyota's sales increased during the same span of time?
2. There's a perception of low quality.
After owning 5 American vehicles over the years I bought a Honda and I could not believe how much higher the quality was, how much better it felt tactilely, and how well thought out the car was (a small tray to catch brake fluid overflow and direct it away from any engine components, stainless steal emergency brake cables, and a fuel efficient engine that had plenty of pep to name a few). GM or Ford weren't even in the same league.
GM switches feel cheap, seats are unsupportive, ceiling liners on older models come unglued and droop, and fuel gauges fail to work correctly.
From what I've heard the European versions are better than what's sold here. If that's true why not bring the technology here?
Even though it's true Consumer Reports states that GM's vehicles are as high in initial quality as their competition, that's only 20% of the issue. What about longterm durability and resale value?
The longterm quality is what really matters. If the quality is there, how about backing up the claim with a 10 year/100,000 mile warranty.
The truth is that even if GM has the quality they think they do, public perception says otherwise and for GM to survive the customer has to be satisfied. So equaling the quality of the competition isn't even an issue, you have to surpass it. You've got the resources...
Cadillac builds nice cars. The Z06 demonstrates the awesome amount of technology you have access to. And the Sky proves you can create a great looking car. And Toyota doesn't have anything on GM in the style department as of yet.
But overall where's the passion in GM vehicles? I know the designers can and have created beautiful designs only to be shot down. Heck, look at the redesigned 2007 Hyundai Santa Fe. It was based on a design by Joel Piaskowski a Detroit native who worked at General Motors for years.
In short GM needs to excel as much as Toyota does, yes I know they've had some quality issues recently too, but according to Motor Trend they also have held back the release of the new Camry because the new Civic stunned them into realizing they needed to offer more. And the Civic is at a $14,000 to $20,000 price point!
Selling anything is like the stock exchange... the market, no matter what, is always right. It doesn't matter that somebody thinks their product is the best in the world. If it doesn't sell it doesn't matter, simple economics determine what sells in a free market. Companies either have to adjust or go out of business.
I think GM needs to define their target market(s), and then talk to them. Find out why people buy competitors models.
The Mitsubishi Evolution is an awesome example of getting an enthusiast car right. The interior is well thought out. The Recaro seats are comfortable and perfect for the enthusiast this car is built for, as is the Momo steering wheel. Everything from the gauge placement, to the razor sharp handling, to the light and precise shifter has been thought through. It's a true drivers machine. Yes it's a niche car that appeals to a small group, but so is the Solstice. And the Chrysler 300 is yet another great example.
If GM was able to zero in on what each target market wanted and hit it with even only 80% accuracy they'd be so far ahead of the game everyone else would be struggling to catch up.
So if it were me I'd contact previous customers that have changed brands and find out why they switched. Every detail.
Fix the most common, easiest, and most cost effective concerns first and perfect from there.
As for the legacy and employee health care costs effecting bottom line profitability that's a whole different story...
Posted by: Thunder on December 9, 2005 7:11 AM
I have two wishes for GM for ’06:
1. An earlier-than-planned launch of the Saturn Aura.
2. An earlier-than-planned rollout of the revised Buick LaCrosse.
Both of these are beautiful, high-volume mid-size sedans: the perfect gift for the segments we need the most right now.
Posted by: Dan Neu on December 9, 2005 10:19 AM
Michael White, "You don't see Toyota and Honda selling a child brand."
WHAT do you think Acura, Lexus, and Scion are? The question is why would anyone buy a Lexus that is just a rebadged Toyota Avalon, and why spend so much extra for an Acura that is identical to a lopwer priced Honda? People do that. And brand perception being what it is, I don't see any GM brands that need to be axed. Except maybe GMC, How many independent Buick/Pontiac dealers are there anymore that don't also sell Chevrolet? The mistake that was made was building 4 brands of minivan and 6 SUV's when there should have been two brands of each, Chevy and GMC.
Posted by: John P on December 9, 2005 10:48 AM
Bob, your candor is always appreciated. And you're right, GM has made solid progress in 2005 in terms of building competitive product.
The new product is strong. I've sat in or driven many of them. My impression was that GM finally gets it, but my feeling was that these are great products for GM, but still not world-class.
Take the new Lucerne. It still has the 3800 and a 4-speed transmission. In every other sense, the vehicle is an A/A-. Even though the majority of the potential owners (past LeSabre customers) won't care, it says to people who you could conquest that GM still relies too much an ancient powerplants. Granted many conquests would probably choose the Northstar, but even that has a 4-speed transmission.
My question: Why did't you go with a world-class engine and transmission right off-the-bat?
Posted by: Ballew on December 9, 2005 11:31 AM
I want a mid-size station wagon that doesn't ride like a boat and is reasonably equipped and attractive for less than $25K. As a current VW Passat wagon owner, this car is a decent benchmark. As the Euro strengthens (and probably continue to strengthen in the future), the Passat wagon should be a sitting duck from a price/value perspective. I would welcome a domestic competitor to the Passat wagon. The new GM interiors and exterior styling are definitely up to my standards (which is a HUGE statement from a former Cimarron owner and subsequent GM hater) and I wouldn't hesitate to buy a GM alternative to the Passat wagon, if one were available. An SUV is NOT an alternative to a wagon, in my mind. Reliability and maintenance costs for a GM Passat wagon alternative would HAVE to be better than VW standards. Easy pickens' if you ask me. While the wagon market may be small right now, I would expect it to rise in the future. And GM seems to be doing well at producing profitable (I hope) vehicles in relatively small volumes.
If GM can offer an affordable, relatively well equipped, practical station wagon that is styled attractively and has a European driving feel to it I WILL buy it. The new SportCombi is an excellent starting point, it just costs too freakin' much and who knows where the nearest Saab dealer is.
Posted by: Wade Morefield on December 9, 2005 11:48 AM
Here's the problem.
I lot of you are trying to make the GM v. Toyota and/or Honda comparison. That's an unrealistic and unfair comparison. Sorry, but those two companies have surpassed anything that GM could hope to do from a product and quality standpoint.
The biggest concern GM should have is with companies like Hyundai. They have come from being viewed as not much better than a Yugo to only one small notch behind Toyota in less than a generation.
Why couldn't GM have done the same??
If quality is an issue (even if it's only perception), then match Hyundai's 10 yr/100,000 mile warranty.
If styling is a problem (and it is, save for the Solstice/Sky platform), hire a different design staff.
If costs are a problem (and they are), . . . oops. The only solution I can think of here is bankruptcy.
Posted by: Steve C.
on December 9, 2005 12:06 PM
Bob,
Since you started this blog I cannot count the number of post's asking you for a CAMARO and other rear wheel drive chevrolet's, What is it going to take to convince you to build them before these people jump ship and buy the competition. Rear drive is not a fad that is going to go away. We tried FWD and we do not like it, It is NO better in snow than a RWD with decent tires. I live in the snow belt and despise driving a fwd car. Give me a RWD car with your awesome ABS and a decent set of tires and I am Happy. Please produce the vehicles we want to buy.
Posted by: Dennis Schrage on December 9, 2005 12:43 PM
The leaked Camaro pictures look like a car that will be hit. I love it and want one if it's anything close to the leaked photos.
The problem:
I can start making payments now and by the time it hits the streets in 09 I will have it paid for.
Come on guys I hope you done your homework and just have to body a car to make it Camaro and have it on dealer lots in 2007.
Posted by: Joe Harrison on December 9, 2005 1:32 PM
Bob,
I just happen to be one of the happiest Solstice owners on the road right now (it seems to be the only one actually driving theirs in the Seattle area). You can't even imagine the stares and constant questions that I get driving around. Just thought a bit of praise was in order in light of the constant drubbing you take on this blog. Thank you so much for making this car happen.
Posted by: Chris Freeman on December 9, 2005 2:51 PM
Mr. Lutz,
Without getting too detailed, I think it is very important for your company to continue improving not only initial quality, but reliability. Your designs are improving (stye wise) but not fast enough to make GM a viable stand alone carmaker for very long. The Impala is good enough to buy, but not the car GM could have made. The Lucerne is beautiful, but again, the competetion is going to turn around new styles faster than you can.
The problem facing GM is the branding issue. You have too many brands.
The faster GM can re-invent itself as a "new" car maker and get rid of the excess non-competetive makes and models, the better off the US will be. (Sorry Pontiac and Buick dealers.)
Unlike many bloggers, I don't see a need for RWD cars. I say make the cars here that will make you money. Saab is a good brand but should be with Saturn and NOT Cadillac. Hummer is going to be a big waste of money very soon. Your truck line is also a very expensive cost driver. Cut down on the number of models, the options and keep your factories humming with GREAT products, (Quality, not quantity will make or break you) Keep the manufacturing base lean and unclutterd. Make the truck ITSELF be the vehicle consumers want, not the incentives or options. For crying out loud, go into a GMC showroom and you will vomit at the number of choices. Believe me when I say sometimes not having to choose is a good thing. (Kinda like buying running shoes.)
Back to your company. GM. It's time to step up to the plate. You need to develop a new engine. They are out there and you know what I am talking about, well I hope you do. Dedicate some cash to diesels and maybe look to Canada for a few other radical ideas. Try to get an engine that is not a traditional internal combustion engine. Use it for home generators, but get it into cars ASAP. To succeed against the Koreans, Chinese and Indian carmakers, you will have to recapture the little guy again. The fuel efficient car should be GMs, not Ford's or Toyota's. Make a car for every person, but more importantly, make the BEST car for every person.
If GM fails to recapture the market, the US carmakers will cease to exist. Your company can make money with well made American products that are green (Please don't talk about fuel cells, or hybrids), well made, and gorgeous. If you can't we are in big trouble.
I have been writing on this subject for five years. I hope you can see the problems facing the US and GM and instill the need for urgent action among your colleagues.
One last thing. Push for universal health care and portable pensions. Our country owes it to the workers.
Posted by: Jan Bayus on December 9, 2005 3:23 PM
Excellent remarks Thunder. They are right on the money. GM should listen to you.
I would like to say I've heard too many good things about Honda and Toyota that it makes me sick. But it's not that it isn't the truth about them. It's that I am frustrated as a GM man that I have not heard the same good stories about GM cars.
GM can do it, it is just a matter of applying the same principles of quality engineering and sticking to them. Then when manufacturing gets hold of the engineers plans, adhere closely to the engineers design. It's not a matter of rocket scientry.
I will always buy GM, but it would be nice to know that the previous Japanese car owner buys one too!
Posted by: GetALifeAgain on December 9, 2005 3:53 PM
As a VERY loyal GM supporter, I continue to wait and wait and wait. Sorry to say -I've given up. For so long, you just wait and hope that next product coming out will be the one.
ut as a blogger above points out, the new Buick comes out with a base 4 SPEED AUTO. Hello! Your competitors (Infiniti) have 7 SPEEDS! Your new trucks coming out have 4 SPEED AUTOS!!! Archaic! 1/2 done, half baked, always late Bob!
Details • Details • Details
The US buyer is a more educated group than GM understands. It seeks value notices the small things.
Let's look more closely at one comparison.
Two coworkers recently purchased new smaller SUVs that I see everyday as I walk in to work.
Hyundai Tuscon vs. Chevy Equinox
The Tuscon owner just traded in his Saturn 300 for this. First thing you notice - the Tuscon has those great looking TRUE dual exhaust hanging out the back. Just like an MDX Acura and the Nissan Murano. Look at the Equinox - the muffler is fully exposed and it has a single pipe hanging off the left side.
The Tuscon and REAR DISC brakes. Guess what the Equinox has - you know - REAR DRUM BRAKES! Let's look at the motors...One is an OHV made in CHINA whose roots date back to the 2.8 litre that I had in my 1983 Chevy X11. This engine should have put to pasture (along w/ your 3800 V-6) 20 years ago.
This is why GM does not dig itself out of its current problems. GTO - nice but why would I buy that car when I can get a Mustang GT for $10000 less?
To succeed - you need to at least match the level of your competitors.
Posted by: Joe Lauerman on December 9, 2005 4:20 PM
Increase the freaking warranty on all your vehicles!
You extend the warranties here and there which is ridiculous.
The Cobalt has a longer powertrain warranty than the Impala. Why?
Just extend the warranties on ALL your vehicles and do it NOW.
And you still don't sweat the details. Parking Brakes on the floor in 2006? Put them near the console where they belong.
The Panel gaps near the front and rear bumpers on the Cobalt cheapen the cars looks.
Why is the Cobalt so cramped and narrow?
Why does the door lock in the HHR stick up from a plain hole?
Why on earth would you put an ancient underpowered V6 in the brand new Lucerne when you are trying to compete with lexus?
Why would it take until 2009 to get the new Camaro when you need it next year?
Where is the sense of urgency that GM needs? You are at WAR with Honda, Toyota, Nissan, and Hyundai.
Even Hyundai is cleaning your clock in car reviews.
WAKE UP for crying out loud!
Posted by: SteveG on December 9, 2005 5:16 PM
It's been interesting reading the various replies. I hope you take the time to read them and realize what they are saying.
IMO, Chevrolet lost the swagger about 1974. Think of the line-up that was offered before then. Camaro, Chevelle, Nova, Caprice, Corvette, Impala. Cars people wanted.
One could walk into a dealership, sharpen the pencil and order what they wanted. Wanted a big block...check the box. 4 speed...check. COPO...check, check, check. Those cars were snapped up by happy buyers because it's what they wanted.
They could modify them to their hearts content.
How many nights were spent in garages across this country by people working on their Chevies?
But along the way you lost those buyers (actually a big part of a whole generation) with poor designs, lousy quality and lackluster performance. 30 years from now you'll still find the diehards in the garage working on their 67 Camaro. Can you say the same for the buyer of the 2006 Camaro?(oops...you killed it didn't you)
GM needs an infusion of car guys who remember where you came from. Guys who design and engineer individual vehicles...that people want. Not Japanese look alikes... not five cylinder trucks...not butt ugly designs.
Time is running out Bob...time to get your groove back before the lights go out for good.
And please, please, please...let the Camaro rest in peace if your not going to do it right.
Posted by: Ken K. on December 9, 2005 5:24 PM
I agree that perception is the big problem. I have a 2001 Chevy S-10 that I have been absolutely delighted with. With a 4-cylinder engine, it has adequate acceleration for a truck, is very comfortable, corners well and has shown bulletproof reliability -- while getting 26 mpg on the highway and 20 around town. I also have an Acura TL that I drive on the weekends, but for commuting to work, I actually enjoy the S-10 more.
I recently drove the new GMC Canyon and found it to drive even better than my S-10, with a smoother suspension and a quieter ride. It will probably be my next truck. In comparing it to a Nissan Frontier or Toyota Tacoma, it wasn't even close. The new Tacoma is simply too big and too expensive for a compact/mid-size truck, and the Frontier just felt cheap. I think GM has several models that can beat the competition on quality, and definitely beats them on price.
The S-10 was my first GM product, and the first for anyone in my family since my Dad had a Chevy truck in the early '70s. The S-10 has been equal to my Acura in terms of build quality, ergonomics and dependability! But although I have been pleased, many of my friends and co-workers ask me, "How can you possibly buy anything from GM?"
Too many people still think of Luminas, Corsicas and Cimarrons when they think of GM. In fact, I had to be dragged kicking and screaming to the Chevy dealer back when I was searching four years ago. My memory was of a rental-car Corsica during the early '90s that was the biggest piece of junk I had ever experienced. Also, I had earlier bad experiences, such as a friend's late-70s Chevette in which the gearshift lever came off in my hand, and my employer's early-'80s Oldsmobile diesel that was simply abominable.
Chrysler and Ford also had these problems, but GM's perception problem is more difficult because more people were affected by poor GM quality in earlier years. While the reality may be different now, you need to change this lingering perception quickly using any aggressive marketing initiatives that you can find.
These initiatives should address the previous problems in a sober and truthful way, and then present the new reality of GM's quality. Perhaps a limited "$10 per test drive" promotion would help.
Keep up the good work. I wish GM the best of luck in its turnaround!
--Gerry
Posted by: Gerry on December 9, 2005 6:38 PM
Bob,
Kudos on the new Impala and Monte Carlo V8’s. Everyone loves a V8 that is reasonably priced with performance AND economy they can brag about, especially the NASCAR fans. I know I was happy to tell by neighbor that the new Impala has more power that his new hundred kilobuck SL500!
I hope that GM’s new products will be uniquely American in design. It’s somewhere the Japanese can’t go. It worked for Harley and on the 300C Hemi. Trying to build a better Camry clone is doomed to fail. Make them chase you.
The Triumph motorcycle guys tried to build a ‘me too’ 600cc four cylinder sport bike. It didn’t work. They were trying to play at the other guy’s game. This year they have an innovative new three cylinder 675cc. It’s got torque and a great sound that’s unique to Triumphs. Sound familiar? It’s the Harley formula and it’s what American’s love about the tried and true Chevrolet V8.
Posted by: Doug
on December 9, 2005 6:50 PM
It's sad this blog only promotes product. We know GM product is getting better, Bob. You've proved that many times.
Now how about the REST of the GM picture (such as explaining how GM is beefing up support and service, etc.), or is that something GM could really care less about?
Posted by: kurt on December 9, 2005 6:55 PM
Hi Bob,
I'm a 29 year old male and own GM stock because I like GM trucks. The cars are still not right. I want a car, but GM has nothing for me. I like the CTS, but oh my that interior. The STS is close, but way over priced and I don't like the steering wheel in any Caddy car. The Impala...Grandma. Buicks...Grandpa. The G6..Oprah. The GTO..yawn. The Cobalt SS...I'm out of high school.
Some other observations for ya:
1. DTS outsells 5-series...thank goodness for fleet sales and 60 year old aging Texans huh?
2. Stop making the Malibu. It's so ugly and embarrasing to drive. GM would be better served making bicycles or lawn mowers in the Malibu factory.
3. Put a small block V-8 in every car you make. It is the only weapon left in the GM arsenal. Start with the Colorado/Canyon. Then drop it into the Torrent. Get those 6 speeds to market ASAP. Add a real EVO/WRX fighter with AWD to the Pontiac line...use a V-8.
4. BLUE interior lighting....like VW. It oozes cool. GM needs cool.
5. Sell Saab or give the Swedes some money to make unique cars. Saab should be the BMW fighters, not Pontiac. Pontiac should be "American Performance", an alternative for Mitsubishi/Subaru types.
I could go on and on, model by model...but you already know, Bob. You just need a lot of money, and a lot of time. Good Luck.
Posted by: Investor on December 9, 2005 11:39 PM
gm problem previose model like sunfire & cavalier, also grand am lots of weak parts squeak & rattle.
gm styling are perpect for long term.
pushrod engine are perpect compair to complicated ohc engine. very reliable,low maintenace. gm powertrain are bulleproof.
gm new models are par better than those foriegn cars.
mr Lutz i hope you intruduce a small displacement duramax diesel
Posted by: barok on December 10, 2005 12:05 AM
The person earlier who mentioned that GM should consider offering a new sport-luxury brand may be right. The more I think about it, I realize that GM has driven most of its brands into the ground. They're done. It's sad, and as a classic car aficionado I hate to say it, but I think it's true. It's gotten to the point where no matter how great a car GM serves up, if it has the names Pontiac, Buick or Chevrolet attached to it (and to a certain extent, Saturn, Cadillac and GMC as well) it will not be well accepted. There are just too many memories of horrible (or boring or cheap looking) Grand Ams, Skyhawks, Luminas, Cateras, etc. etc. And everyone I talk to seems to think those brands are elderly and outdated. C'mon -- you know it's true. The time for self-denial is over.
It's a drastic situation and it may be time to get drastic. Come out with 2 or 3 NEW brand names, downplay the GM association, and aim them straight at Lexus, BMW, Acura, and the other benchmarks. It would probably work with the same old cars you have now -- I think it's those Pontiac logos, Buick trishields and yes, even those Chevy bowties that are tainting your products. And as mentioned before, really sharp styling wouldn't hurt either.
Posted by: Chris G on December 10, 2005 2:29 AM
Memo to Dennis Schrage;
Wait for the North American Car Show. I'm sure you'll see the RWD sports coupe that you have been desiring for GM to build.
Bob,
Can't wait to see your exciting RWD concepts set for the N.A.I.C.S in Detroit. I think you'll make Ford a bit nervous.!
For me Christmas comes on January 9th. :-)
Merry Christmas Bob !
From Mike, an American living in Finland.
Posted by: Mikko O on December 10, 2005 6:46 AM
So, Bob, GM's products are "misunderstood". There's a "perception" problem. The media is unfair. Well, here's another view...
The vast majority of your vast lineup is bland looking, mechanically outdated, ergonomically flawed, dull to sit in and dull to drive. There is only one car in GM's entire range that stands head and shoulders above its class, and GM's bureaucracy did it best to kill the model before the 'Vette's introduction.
I think it's time to face the fact that being good enough isn't good enough. GM's continually sliding market share is all the evidence you need that things are getting worse, not better. The consumer is speaking, loud and clear; despite your implications, they're not stupid, mislead or misinformed.
Here's the problem Bob: focus. GM has too many brands and too many models (over 70), and you produce too many vehicles (no wonder over 30% of your sales go to fleets). Until and unless GM downsizes across the board, you'll never have the resources, morale or efficiency you need to trounce the competition. Never.
Posted by: Robert Farago on December 10, 2005 7:20 AM
All these comments dragging down the 3800.
Too old, pushrod, the rest.
One thing nobody says is that it doesn't work. And unlike some other motors from a frequently mentioned company on this blog, it doesn't turn it's oil into tar for no reason either.
Everybody here responding is an expert but none of them work at a car company.
Posted by: angry dad on December 10, 2005 9:13 AM
dennis schrage GM problem with CAFE will get worse with RWD because of the added weight and they can not afford to lose a 1/10 MPG. look at the GTO it has a gas guzzler tax and in this time of high gasoline prices the gas guzzler tax is a kiss of death except in the case of very high dollar cars
Posted by: motorman on December 10, 2005 3:43 PM
well as you know there sure are a lot of cry babies responding on this site. some have valid responses, most dont. its a perfect example of why the cars of the past seemed so much better when new and why they are remebered so fondly and vividly now. the old cars of GMs glory years where designed by stylist and then reigned in mostly by cost for production. the new car designs (from everybody not just GM) are run through clinic after clinic till they are devoid of passion and look just like everything else. then, those same whinners from the clinics and forums scream, "it sucks and what happened" when it hits the streets! to all those upstairs at gm, youre on the right track! keep doing what you're doing! and rember, i'm no expert and niether are 99.9% of these other respondents, you are!! so do your best and stop trying to please everyone, and build what you'd be proud to drive!! in all the price ranges!!
Posted by: ellis williams on December 10, 2005 4:22 PM
ps. if that sliver/grey camaro pic that you all keep telling people not to post on the web is any indication of the next camaro its.....excellent!!
i'm one who will put their money where their mouth is.
Posted by: ellis williams on December 10, 2005 4:28 PM
Mr Lutz: I suggest you reread the famous quote from GM architect Alfred Sloan
"Gentleman we are not in the business of building cars, we are in the business of selling cars" Yes your product has improved but you keep losing market share every month to the Japanese. That's the bottom line. Your stock price is junk, your market rating is junk and you're losing money in the billions and your solution is to tell us how good the cars are. You should be figuring out how to sell more of them at a profit. I direct you another quote from no less a scholar than Albert Einstein "Insanity is doing the same thing over and over again and expecting a different result" I've said it before I'll say it again you need someone in there that can move the metal without putting a buttload cash in the trunk. Somewhere out there is the next E. L. Cord.
Posted by: Bill Strobel on December 10, 2005 6:23 PM
One more observation, rebates, red tag sales, employee pricing, etc are not ways to move the metal, and be profitable. You have been running these gimmicks since Sep 2001 and you've lost market share the whole time and look at your ledger sheet to see how profitable you are. Do a little experiment go to WalMart they have 10 different types of vacuum cleaners on the shelf. On a mid priced vacuum tape a $20 bill on all of the boxes in stock and at the end of the day see which vacuum sold the most. That's not selling that's a gimmick. If your marketing guy is giving you gimmicks he is not doing his job. Toyota has a guy that can sell all they can make, make a profit on each one, have cash reserves out the wazoo, and rely on the product and the system to sell it not rebates and gimmicks. Why can't GM do that? There is nobody in America or the world that has the ability to do it? Again where are the E.L. Cords? Why can't you find that guy or at least hire him away from your competitor. Albert Einstein again "Insanity is doing the same thing over and over and expecting different results" Copy it, put it above your desk, remember it.
Posted by: Bill Strobel on December 10, 2005 6:39 PM
Great that you are upbeat. I'm wondering, however, about Saturn. Saturn, so far, looks great with the Opels/Vauxhalls. When will we see more Opels/Vauxhalls as Saturns in the US. I'm pretty excited about the new Opel/Vauxhall Astra, Tigra, Meriva, Zafira, and 2007 Corsa. And will the AURA keep up with the Vectra styling-wise and not languish like the L-Series prior?
Posted by: Daniel on December 10, 2005 9:48 PM
Come on, Bob. FWD Impala and DTS? They are completely uninteresting to any enthusiast, and you know it.
The weight transfers away from the drive wheels during acceleration. The cars are unbalanced with all that weight forward and consequently understeer like pigs.
So stop trying to push them here. It just reflects badly on you. We don't like them and we know you don't like them either, so stop trying to pretend.
Give us a true full-size RWD sedan. Until then, stop trying to convince us that you've drunk the coolaid. It's embarrassing.
Posted by: Jared on December 10, 2005 9:55 PM
In China Market, you have done a good job this year and overpassed VW, 2004's market leader. However, Japanese automakers will duplicate your success soon if GM still add unpopular models in your lineup like Royaum & Epica and neglect to upgrade Chevy's low-end image. Prior models (buick line) cater to sino-market very well but new stuff seem too narcissistic to scare away potential customers to buy nippon cars.
Posted by: Sherwin on December 11, 2005 5:09 AM
Mr. Lutz,
I agree with you. But one thing I notice with GM is the lack of pursuing the principle "to better the best".
1) Trailblazer - GMs no. 1 selling SUV, but no interior and exterior refreshing scheduled for 2006.
2) Equinox - GMs no. 1 selling CUV, but only 1 outdated powertrain option is available (the looks doesn't fairly match with the powertrain), supposedly this is soccer moms choice if 7-seater and 3.9li VVT powertrain is available.
3) HHR - GMs no. 1 selling retro car but no SUT option (like SSR).
You have produced a very nice looking Equinox but has bland powertrain. When are you going to give this car your award winning 3.9li VVT powertrain? Don't wait for 2007 or before sales of this car will plunge.
Onell
Posted by: onell annz on December 11, 2005 11:09 AM
Mr. Lutz,
GM makes wonderful cars and trucks. GM has the best products. I own GM cars, my extended family owns mostly GM cars and a few GM trucks. Many friends, neighbors, and associates see our praise for GM cars. Some of them who own other brands are choosing GM. GM has a world class headquarters with world class engineering and technology. GM enthusiasts know this. GM product specialists did a fantastic job at the auto show in Orlando. They were more helpful than any other display. Some of the same kind of quality displays of GM products is what is needed nationwide.
We wait with enthusiasm to see what the new styles from GM are going to be. We read the brochures and the GM website. We are GM enthusiasts.
The Lucerne, La Crosse, G6, Impala, Corvette, Solstice, and the Cadillacs are most exciting.
I stopped reading Motortrend. I just heard about their car of the year pick, and glanced at the article. Objectively, the Solstice should have been Car of the Year, and they know it.
I do read Road and Track. They seem to be a better magazine.
GM quality and performance are great. GM has the most beautiful interiors and materials, much better than the foreign competition. That's why the competition makes such a big deal out of attacking GM. Yet, GM's sales edge has always been design. It seems like the public builds and attachment to GM cars with styling. So be sure to keep your styling edge along with great quality. I've felt that your dealerships, promotion campaign, image ads, and media relations have been the issue. Your products and engineering are superior.
Cars like the Aurora, Camaro, Corvette, STS, Solstice, G6, the Lucerne, these give GM a great name in the market place. Just look at your successes. I'd love to see another design like the Aurora.
How you market those great products, what you call them, where you place them brand wise, has often been the issue with your enthusiasts. What exactly do I mean? Take the Trofeo and the Reatta. They were fantastic cars. The Trofeo should have been a Grand Prix, not a Toronado replacement. Thats where GM marketers missed it. It was the wrong customer. The former Torando customer went looking for a bigger car. Also, the Buick Reatta was a wonderful design, that appealed to younger females, it should have been a Chevrolet, or a Cadillac with a V-8. My sister in her early 30's loves her Aurora, but she notices Reattas driving around and asked me what kind of car it is. It seemed like you were marketing the Reatta to women in their 50's or something. And GM dealers hid the new GXP so that no one could find it. The initial Aurora had nice colors, jewel tones, misty blue, but then they just disappeared.
You see, some of your products have been right on, but your message and disemination of the product are in need. Currently, the Lucerne and the La Crosse both need greater exposure. If there were greater exposure in the marketplace, GM would be selling them much faster. I think you should consult other fields on how to reach people like clothing buyers, teachers, coaches, movie promoters, and so on. GM's most successful recent promotion has been Cadillac and the Matrix. With that, GM made a break through, and discovered what can be done.
The local Buick dealers here need to be rebuilt. There is no showroom. It is a struggle just to get to the new models through all the obstructions.
Already, we've suggested ways on the ground war to get more exposure for GM products such as new car dealerships in suburban neighborhoods, upscale showrooms in top cities like Washington, DC area, and Orlando, exciting radio spots that highlight GM quality with every price ad, more GM cars in the local shows and malls. The younger set isn't seeing enough of Pontiac, and the jet set isn't seeing enough of Cadillac. Why not promote Pontiacs along with computer games and cell phones. Why not make a few Ciens. Do a test if you don't believe it.
GM's employee discount ads put a face on the company, they showed the power of advertising. GM needs to show itself to the public more. Show off your facilities, your headquarters, and your technology.
Posted by: Edwin on December 11, 2005 1:58 PM
I saw a Buick Lucerne the other day. Nice looking car. But the name: Lucerne??? Sounds like a dairy product. Oh and BTW: I couldn't help noticing the 2006 "GTO" ( or would that be a Holden with a Chevy engine ??) didn't make CDs 2006 Top Ten again. That honor went to the Mustang. At least Ford hasn't forgotten the muclecar loyal.
Posted by: CodyS on December 11, 2005 8:28 PM
I am tired of everybody crying about GM's 9 brands in America.
What about China's 250 brands? Whose crying about that?
What about Japan with 9 car groups with over 30 brands and a government stipulation that they can never go out of business or be taken over with more than a 50% stake by rivals. So those spintered brands survive and are free to launch luxury brands, truck brands, youth brands and mini car brands.
Okay genius!!! How is GM supposed to compete with 2 or 3 brands against Toyota with five brands, Japan with 30 brands and China with 250 brands.
In fact there are over 900 car brands worldwide so what are you gonna do?
These floggers, I mean bloggers gotta stop hatin'.
GM has come to the conclusion like Japan, the brands are what they are, leave them the way they are.
You were born with ten fingers. You don't stop every five minutes to contemplate well what if I had 8 or 4 wouldn't that be more efficient? What was God thinking? So I think GM still has room for one more.
Posted by: Edward Hayes on December 12, 2005 12:17 AM
I completely agree with people who complain about four speed automatic transmission in the new GM cars. This is simply not acceptable in this very competitive market. I know that GM auto transmissions are excellent and very smooth. But, the market now demands 5 speed and higher for any modern car or SUV.
In the recent SF auto show, I saw the immense improvements in the interior design of GM cars. The company now should address the engine (and transmission) issue. When compared with Asian cars, many reviewers complain about the noisy GM (and Ford) engines at high RPM. I am not sure if it is related to sound deadening material or just the noisy engine. But this problem needs the attention of GM engineers.
Posted by: Alex on December 12, 2005 2:08 AM
Bob-
My wishlist to fix GM ...
CADILLAC-
1. CTS- Coupe, Convertible, AWD option.
2. STS- Needs a freshening. Try to get some legroom in back seat. need "Mercedes" or SRX type roof with the smoked glass and big sunroof.
3. DTS- Nice job.
4. SRX- 3rd row curtain airbags. Freshening.
5. Escalade- Already new, so I can't say much.
6. XLR- I think that it needs a re-skin.
7. Please give us a premium rear drive Caddy above the DTS. I'd keep the DTS for the die-hards, and have this vehicle chase Mercedes and BMW. Make it Autobahn worthy.
8. My biggest pipe dream...how about a DTS 2 door convertible like caddys of yore? Now that's a dream car!!
SATURN-
Easy- Bring Opels over here (or make them here), and call them Saturns. Paly up the German engineering thing.
PONTIAC
Think 1960's Pontiac and BMW. meld the 2 together.
Wish list: A new Trans Am.
BUICK
Lucerne is OK, need premium rear driver.
Think back seat space when re-designing the LaCrosse, please!
CHEVY
Yeah, everyone wants the Camaro. I'd bring that back and a premium rear driver (Caprice??)
JIM
Posted by: jim on December 12, 2005 8:33 PM
Many here have compared GM with Honda, Toyota, etc, but I won't do that. I'm going to compare GM with GM.
GM has four engines that I consider world class; The 3.6 OHC V6 with 255HP, The 2.4 "Ecotec" 4 cylinder with 170HP, the 2.8 OHC Turbo V6 with 250HP, and the 4.2 OHC Inline 6 with 290HP. Why aren't these engines in widespread use throughout all GM car and truck lines? These engines are quiet, smooth, modern, have great power, AND excellent fuel economy. But they are presently restricted to a few car lines. Just think of a Pontiac G6 that would've had the "Ecotec" engine available from the start, or the 3.6 OHC engine available at all? What a different sales picture those cars would paint!
GM has issues with their powertrains, interiors, styling, etc. But what's not talked about is that they also have issues with their quality and customer service on the dealer level. The dealers that represent GM are what give the customer their first bad impression.
I echo the sentiment that GM should increase their warranty to 10 years 100,000 miles, but they should instill in dealers that they should be welcoming and taking care of those customers that come in with warrantee claims instead of treating them as a pariah.
Posted by: nino on December 13, 2005 2:07 AM
My wife and I are in our early 50s and are in the market for a 4-cylinder mid-size sedan. We buy a new car and drive it until it is no longer economical to repair, usually about 15 years/150,000 miles. We'd like to buy an American car, despite previous bad experiences, to help the U.S. economy. While shopping, we went to the local Pontiac dealer to see the G6. There were a half-dozen GTs but no 4-cylinder ones. Why? The salesman said that consumers didn't want the 4s