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 in Bob Lutz
MJ
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)
Scott
Also at the risk of sounding like a broken record: when are the affordable (i.e. non-Cadillac) midsized RWD/AWD sedands coming??
Zarba
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.”
Arizona Slim
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.
Bob Larson
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!
PacerX
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
Douglas Kay Bohner
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!
mike weber
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.
Dave Lawson
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.
Ed Gansen
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.
ming
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.
Andrew Charles
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.
Chris C
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.
Scott
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
Barry
http://jeffmatthewsisnotmakingthisup.blogspot.com/2005/12/mcclellan-awaits-battlein-detroit.html#comments
Nice comments from an unbiased hedge fund manager on GM, senior management and the state of its business.
Tim Colyer
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
Big Picture Guy
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.
John
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.
The TrueTalk Blog
Bob Lutz: Discouraged But Not Dissuaded
We’ve missed Bob Lutz out here in blogsylvania, so it was good to read today’s post on GM Fastlane. But, before I comment on that post, a story. We were visited by our old friends Blaugra and Salty D over
Sudip Verma
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
John P
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.
beken
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.
Bill H.
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.
Ryan
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.
Chris Green
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.
ghughes
“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
James
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.
MBB
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!
Douglas K. Duarte
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?
Jeremy B
“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.
ellis
ditto on that last one…..ditto in more ways than one……
jeffhenderson
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…
Ray
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.
Michael White
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.
Bob Miller
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
Christian Aviles
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.
Michael White
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.
Leftlane News
Lutz: GM products not lacking; DTS outsells 5-series
A lot of automotive journalists these days say that if GM only had better products, it wouldn’t be faced with the financial situation it is in today. But GM Vice Chairman and spin-doctor Bob Lutz won’t hear any of it. “I can’t help …
J Reid
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.
Tim
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.
Kurt Bonatz
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!
Nelson Paiva
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.
Michael
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 CAF√â 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
Donovan
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.
Rick Lupori
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.
Edward Hayes
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.
Jeffery Zhang
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.
jup
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!!!
Rene Curry
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.
haig istanboulian
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
Kyle
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.
Ethel O
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!
Glenn Laycock
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.
Thunder
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…
Dan Neu
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.
John P
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.
Ballew
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?
Wade Morefield
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.
Steve C.
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.
Dennis Schrage
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.
Joe Harrison
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.
Chris Freeman
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.
Jan Bayus
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.
GetALifeAgain
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!
Joe Lauerman
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.
Trollhattan Saab
Saturday Snippets: The Lutz edition
Not too long ago, a whole bunch of you good people offered comments here on a post I called "Tell GM About It", which I printed and sent off to Detroit. What have we heard so far? Zero. Nada. Nix. Nothing.They sa…
SteveG
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!
Ken K.
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.
Gerry
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
Doug
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.
kurt
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?
Investor
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.
barok
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
Chris G
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.
Mikko O
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.
Robert Farago
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.
angry dad
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.
motorman
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
ellis williams
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!!
ellis williams
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.
Tapscott's Copy Desk
LINK LOVE: A Drive Around the Blog Block
Lutz sees more reasons to smile GM’s future in the Buick Lucerne’s early success.
Bill Strobel
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.
Bill Strobel
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.
Daniel
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?
Jared
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.
Sherwin
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.
onell annz
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
Edwin
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.
CodyS
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.
Edward Hayes
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.
Alex
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.
jim
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
nino
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.
Zed
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 so the dealer only ordered GTs. If that is true, then GM has a serious problem with this car. It looks like we’ll be getting a 4-cylinder Camry.
sh
As a teen in the late sixties, I lived through the muscle car age and of course, there’s a lot of desire for the return of the Camaro among the nostalgia crowd, but there’s a lot good to say about FWD and the Impala SS.
For example, during the recent ice storm in Dallas/Fort Worth, at least on the TV newscasts, the “most often stuck/crashed” car sure seemed to be a certain pony car from another U.S. manufacturer.
There’s a lot of cold winter here in the States and if you have to rely on one car…
lbthedawg
Zed, may I suggest you use the GM buypower site to find what you are looking for.
The Ecotec VVT G6 is a very capable package. I believe it compares very favorably to the competition. I find it strange that a saleman made no effort to locate what you wanted when there are so many being built.
tom
I am concerned that the people who design GM cars don’t actually drive them. I know this is not the case, but it’s the impression I get every time a drive a GM car. I rent often and usually end up with a Chrysler or GM product. My latest adventure was renting a Pontiac G6 for Thanksgiving. In a word, this car sucks. With all of the power seat adjustments available I could not find a comfortable driving position. I’m 6′2″ and can only conclude GM never intended tall people to drive this car. The onboard trip computer/radio was the most convoluted unusable mess I’ve ever seen in a car. Handling and power was unimpressive and styling is weak.
Because of my experince with this car, I would not even consider getting a car made by Pontiac and probably not GM which brings up the point that car manufacturers shouldn’t make crappy cars to unload through fleet sales as many people get their impressions of the cars through renting for business trips, etc.
I still can’t figure out why, with all the brain power at GM, they can’t figure out how to make cars people will buy. Hyundai is doing a better job right now than GM.
PS- I wouldn’t buy a car on a recommedation from Kiplinger Magazine. A.) They’re not auto journalists and B.) that was my father’s magazine. (Oldsmobile reference intentional)
And please kill the Malibu. I remember when Malibu’s were hot muscle cars. nuf said.
Dan Palka
Are the rumors about a new Sonett true? That would be hot!
Zach Hudson
I have just one thing to say about Solstice, nice. But I have one question, where is the coupe? I want one, but I also want some storage space. Overall all the new cars are very well done, keep up the good work.
Rick Lupori
Mr. Lutz: Some of the responses show a lack of knowledge how GM products perform in the real world and what GM is offering, or will be. This information is readily available in the media.
Addressing the most common ones:
1. GM has poor quality
The same JD Power numbers that import owners used to degrade GM owners with in the past, now show that GM beats most import brands today. That is in BOTH short and LONG TERM quality. Buick and Cadillac are better than both Honda and Toyota. Chevrolet, GMC, Pontiac and Saturn are better than Nissan, Hyundai and Volkswagen. Out of 19 Segments GM has 8 leaders of the segment and 10 others in the top 3 vehicles. That is 18 vehicles out of a possible 57 which is 32% of the total. Toyota had 17 with only 5 segment leaders, Honda 3 total and 1 segment leader. The Accord, Civic and Camry did NOT make the top three in any segment.
2. GM has too many brands: Using the theory that there are three main segments of the mainstream market:
Value
Sport
Luxury
GM would have the following list of divisions and focus markets.
Chevrolet FWD Value
Saturn FWD Sport / Hybrids
Buick FWD Luxury
Pontiac RWD Value/Sport and AWD Value
SAAB AWD Sport / Turbo Gas and Turbo Diesel
Cadillac RWD Luxury and AWD Luxury
Chevy Truck Value
GMC Truck Sport
Cadillac Truck Luxury
Look like there are just enough to me.
3. GM offers too many pushrod engines
As far as the 3800 being an outdated engine, what is wrong with an engine that provides more than adequate power and delivers 33 MPG in the real world (at least in the LeSabre). Adding variable valve timing with Active Fuel Management mated to the 6-speed automatic would do even better - maybe 36 MPG.
The 3.5L V6 can provide better MPG than competitors 4 cylinder DOHC models with 5-Speed automatics, while providing superior engine power in real world driving.
The LS1 V-8 engine - don’t think I need to say anything about the best engine available on the market.
4. GM does not offer 4-Speed Automatics
The 2006 STS and Corvette offer 6-speed automatics, as will the 2007 large SUV and trucks. The Saturn Aura will have a 6-speed automatic. While I do agree they should have been offered sooner, some are available.
5. GM does not offer interesting models
GM could produce some VERY exciting ones - a quick list of models that could be made in the near future.
Chevrolet (FWD Value and Truck Value)
Monza 3D Coupe (Solstice 3.5L V6)
Monza 3D Wagon (Solstice - Nomad concept - 54 Vette styling)
Bel Air 2D, 4D and Convertible (Retro 55-57 styling - STS or Truck base)
Camaro (CTS or new Monaro)
Caprice (Holden Caprice)
Nomad (Retro 55-57 styling - STS or Truck base)
El Camino (Holden Ute) and El Camino 4 Door (Holden Crossman)
SSR Panel / Sedan Delivery
Borrego (Solstice based Rally look from concept)
Cheyenne (Trailblazer based mid-size truck line)
Astro (shortened 123″ Wheelbase Express or new Trailblazer)
K5 (2 Dr Tahoe with Extended cab doors)
Buick (FWD Luxury)
Tigra Hardtop Convertible
V6 Special (HHR with 3.5L V6)
Skylark (Brazilian Vectra with 3.5L V6)
Skyhawk Estate (Solstice 5D wagon of Monza 3.8L)
Skyhawk Convertible (Solstice 4D hardtop Conv.)
Century Sedan (G6 with formal styling)
Century Estate (Vectra Estate)
LaCrosse GS (5.3L)
Velite (H/T convertible CTS or new Monaro)
Park Avenue (STS based Large RWD)
Buick 8 (6.2L powered short WB Sixteen)
Gran Sport (4 Door Sedan Corvette)
Pontiac (RWD Sport / Value and AWD Value)
Corsa 3D
Corsa 5D
Sunbird 3D (Astra 3D Sport Hatch)
Sunbird 5D (Astra 5D)
Sunbird 4D (Astra 4D - Brazilian Vectra 2.4L)
Sunbird Convertible (Astra Twin Top)
G8 Sedan (Solstice 3.6L or 4.2L I-6 and 5.3L)
Firebird (Solstice Coupe - 5 Passenger)
Grand Prix (RWD CTS with 3.8L S/C and 5.3L)
G-5X (Solstice utility 4.2L I-6 - 5.3L V8)
Safari (shortened 5 passenger SRX)
Ventura (Borrego/Solstice rally buggy)
GMC (Truck Sport)
Canyon Denali (5.3L)
Jimmy (S3-X)
Combo Cargo
Envoy XUT (w/5′ bed,like Explorer Sport Trac)
Sanoma (Envoy based Extended and Crew Cab)
Saturn (FWD Sport - Hybrid/Hydrogen)
Astra 3D Sport Hatch
Astra 5D
Astra Estate
Astra Twin Top
Combo Tour
Meriva
Zafira
LT420 (Saturn Mid-size truck version of Cheyenne)
Cadillac (AWD-RWD Luxury - State of Art Tech and Truck Luxury)
ATX (Solstice utility 3.6L - 4.4L Northstar )
BLS (Vectra - 2.8L Turbo)
BTS (Solstice 4 Door Sedan 3.6L 4.4L Northstar)
Fleetwood (STS base formal sedan 7.5L V-12)
BRX (7 passenger Torrent 3.6L)
SRV (STS base 7 passenger Cross-over)
Escalade LTS (Crew Cab) (7.5L V-12)
SIXTEEN
HUMMER (4WD Truck)
H3T (Ext/Crew cab H3)
H4 (Dune Buggy version of H3)
H5 (2D H3 narrowed)
H5x (4D H3 narrowed)
SAAB (AWD Sport - Turbo/Turbo Diesel)
9-2 4D (Brazilian Vectra 2.0 Turbo)
9-2X (Astra Estate)
Sonnet (Solstice Hard Top convertible)
Sonnet 3D (Solstice 3D Hatch)
Sonnet 5D (Solstice 5D Hatch)
9-3X (Torrent 1.9TD)
9-5X (Solstice Utility 5 pass 1.9TD)
900 (CTS base RWD and AWD)
9-6X (Outlook base)
9-7T (Envoy XUT - Explorer SporTrac)
9-8V (Outlook base van - Europe)
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. There also a 6.6L Duramax Turbo Diesel model.
Another unknown vehicle is the short bed (5 foot 9 inch) version of the Siverado/Sierra Extended cab pickup. I liked this one so much I bought one. Truck buyers have got to drive this truck and find out how easy an extended cab truck can maneuver in a parking lot. It also fits in most garages.
If you look at GM with an unbiased view there are things being done right and many exciting products that could be produced. It is interesting that outside the U.S. General Motors is doing quite well. Maybe foreign country consumers evaluate GM products on what they actually are, not what they perceive them to be.
For some of the more critical responses, 30,000 American workers and about 100,000 residents of the areas around the closing plants lives are going to change in the next few years. These workers go to work and try their best to do the job they have just like you. Some of the workers and their families do read what you say. I don’t think it is asking too much to give the products they make a fair and unbiased look. GM has come a long way, and if sales improve enough some of these areas may not be affected. Remember the next industry affected by a downturn could be yours.
Again I would like to thank you Mr. Lutz for the opportunity to share some ideas. I think you and the rest of GM management are trying your best. All you need is a little time and a fair chance.
SteveG
I just looked at pics of the Mazda 3 and the Chevy Cobalt.
The only thing keeping the Cobalt from looking as good as the Mazda are the ridiculous looking diagonal cuts in the body near the rear and front bumpers. They absolutely destroy the look of the car. How could you design a car and produce it with such an obvious design flaw?
In addition the interior with the all silver center stack looks awful. Just make it black with silver knobs.
You guys need glasses?
L32togo
Mr. Lutz,
I love the new Impala, especially the SS. I am disappointed however, not seeing HUD as an option. My ‘04 Grand Prix spoiled me, I can’t imagine myself driving a car without HUD. I hope that not offering HUD is not a trend? Currently I am able to find HUD on Grand Prix and Corvette only. In my opinion, HUD was unique to GM vehicles and I am afraid that if it is dropped by GM, Japanese will pick it up and make a big deal out of it as an innovation and advanced technology.
Edwin
GM defenders seem to be in agreement here. Its enjoyable reading the defenders posts. GM’s critics are just misinformed. So lets thank Mr. Lutz and the people at GM for doing such a great job and being so humble about it.
GM offers a wider array of engines than the foreign competition, cars with superior features, better quality, and more attractive designs.
GM cars get better mpg than the foreign competition with GM V-6’s rated up to 32 mpg. GM V-8’s also offer better economy than the foreign competition. GM offers both OHC and OHV engines and that makes GM enthusiasts happy. GM engines offer better torque and available horsepower than the foreign competition. Japanese engines have vertical torque curves with no power at the low end. GM offers steel timing chains on its V-6’s, while Honda and Toyota use primarly rubber belts. Honda/ Acura V-6 vtec have rubber timing belt and are only single over head cam, varying only intake, not exhaust. Besides the vertical torque curves of Honda/Acura v-6 vtecs, the V-6 vtec system primarily operates above the threshold RPM. GM’s VVT is simply superior, offering a more continuously variable system. GM offers better interiors with better materials than the Japanese brands. Lexus gets its engines from Toyota. So isn’t Lexus just a tarted up Toyota? GM has superior technology and innovation at the top of the food chain. Cadillac sets the world standard. And as for Wall Street, GM outcompetes the foreign competitions, their governments, and their banks on three continents.
GM owners know that GM engines and transmissions are more reliable and trusted than any foreign competition. Honda/Acura has been plagued with tranmission troubles. And Toyota has been plagued with engine sludge issues. Furthermore, the high threshold RPM is a farse that trashes Honda/Acura transmissions and provides horsepower only to those who kick the engine up where it can’t take the punishment. And we can just hear nashing of the teeth from the journalists with the import attitude.
Then there is the phony tolerances arguement from those with the foreign attitude. These are the people who know GM is superior and are just grabbing for straws. The general public should just stop listening to these wrongheaded misinformed critics. GM’s Aurora V-8 won nearly every competition against Nissan. The unmodified GM Aurora engine outlasted the foreign competition to take the world record for speed in endurance in the motorsports hall of fame. Its takes some tolerance to be the best, and GM is the best. The tolerances arguement has always been phony, and the critics ought to realize it. Additionally, Nissan has been criticized for cutting structure to save weight “in the typical Nissan fashion.” And where are the same critics here, hiding there head in the sand, no doubt. GM exectives don’t have to say it, GM owners can say it for them.
GM offers the best warranty, one that is honored. But more GM customers trust GM products than any other brand with only the balance of the warranty. The proof is that GM certified used outsells every other brand. The auto media should take note of that. More GM customers trust GM and would rather have GM certified used than a brand new car from the foreign competition. More GM customers value GM’s superior features, and style than any other brand. More GM customers choose GM in the face of misinformed hostile and just plain wrong criticism.
More people admire GM’s good will than any foreign corporation despite the constant barage of falsehoods from selected media.
I’d rather have a used GM car, with or without a warranty, than a brand new Acura, Infiniti, or Lexus. Tell that to JD Power.
Michael
The fact that you think everything is going great just makes me scared for you and the poor workers trusting the executives to “get it” and get to work. I work for a very successful American company and what makes us different is our executives don’t sleep well and they never think we are doing enough. Always push harder and expect more…but GM doesn’t seem to demand hard work from the executives nor allow their great American workers to be their best.
If you GM execs think things are so great then you are not paying attention to the competition:
http://automobiles.honda.com/models/model_overview.asp?ModelName=Civic+Si
Tim
What a post !
You sir are the reason that GM is in the trouble that it’s currently in.
PacerX
“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.”
I guess having the lightest, smallest, most efficient V8 engine platform on the planet is peanuts, even though roughly FIFTY PERCENT of GM’s vehicles are powered by it or a derivative.
Oh yeah…
It has pushrods…
Which will probably make the next Ferrari owner who has his techno-marvel F430 humiliated by a “dinosaur” LSx motor feel better when a Z06 up and blows his doors off.
stanshih
Bob,
You keep saying it’s all about cars and car quality. but it isn’t. It’s about perception. I know you have big problems cooking, but why are the small, basic things not being done correctly?
1. In this era of differentiation, why do 90% of GM’s advertising mention GM?
I know it saves money, but you’re burning brand equity when you’ve got Blue-Light Tag Sale Ads with GMC, Buick, Pontiac and Chevy on the same page. This isn’t rocket science.
2. Why is Pontiacs’ line-up cluttered with SUV’s and mini vans? Again, I know the answer is that you need to move cars, but this is at the expense of brand equity and public perception. This should be the Line-up: a cool little G4 to go up against mazda3, G6 c & s, Vibe, GTO, Solstice, period.
Bud
Well Mr. Lutz, I feel your pain. I’ve been the reading the blog for a few months now and it seems like most of the negative comments are mimicked from the automotive press. These folks overdose on new exotic foreign cars everyday that they don’t have to pay for or run until they’re worn out. Let me say that I’ve been a GM car guy since 1973 when I bought my first new car, a 73 Camaro. A few shining examples of GM longevity: 79 Malibu SW 179K miles & still ran good when traded, 88 Pontiac 6000SE w/2.8L V6 310K miles & still ran (2.8MPFI V6 grandfather of the much maligned here Chinese V6 in the Equinox/Torent), 95 GrandAm w/2.3L quad four 270K miles & still going, 00 Saturn LS2 3.0L DOHC V6 219K miles when traded for 05 Saturn VUE 3.5L Honda V6. I here some people brag about there Japanese cars when they make it over 150K but not very many can top my experience with good ol’ American cars. Now don’t get too excited yet, there are still alot of problems at good old GM. I don’t pretend to know how to fix them, but I don’t like it when I here about the next Saturn VUE based on the Opel Antara being built by Daewoo in Korea. This isn’t the way to keep working class people in America buying GM vehicles. If good paying blue-collar jobs keep leaving for foreign lands, there won’t be very many people who can afford a new GM car. Except rich people, and the wouldn’t be caught dead in anything but a high dollar import. Getting off on another tangent, I would love to buy a new Solstice or Sky, but the lack of trunk space is probably going to send me elsewhere. That is a shame because I got to sit in a Solstice the other day, and was immediately having lustful thoughts in my heart until the salesman raised the trunk lid. Keep trying to get it right Bob, but don’t let the whiners on the blog shout you down.
James
Why doesn’t GM bring Vauxhall/Opel to the US market instead of rebadging them as Saturns? Saturn does NOT have a good image, at all. Vauxhall or Opel would get a clean start here and might even seem cool or exotic.
Why are some of the new models coming out half-baked? At least finish them so they are launched properly. The G6 launched with only one powertrain, the Equinox still uses that darned 3400 that hasn’t significantly changed since 1992. And why are you relabeling cars that aren’t even new (Lacrosse, Lucerne)? They share the same underpinnings as their predecessors. Either make them a new platform and make them leaps and bounds above the old models or keep the original names that actually have brand recognition. And the Lucerne should have a better powertrain - the 3800 is good, but not good enough for the competition. At least use the 3500VVT or 3900, and give it an uncrippled version of the Northstar, and you’ll finally have a car with segment leading power.
Also, why are the trucks getting DOHC motors while cars have OHV engines? I personally think GM’s OHV technology is fantastic but it makes more sense to use OHV engines in trucks where torque is more important than refinement and DOHC engines in cars. Or even ditch the DOHC motors completely. I have to believe the 3900VVT is cheaper than the 3.5 DOHC to produce and produces more torque and horsepower. The 5300 gets similar mileage to the 4.2 I6 and has significantly more torque and is smoother.
gmsbestcustomer
I think that GM is doing an excellent job of trying. The cars they have come out with are the best line they have ever had.
But I can’t help, but think that GM can do much better. The designs could be more radical, and car customers would be clamoring to buy!
Another thing is that engineers should be held to the highest level of design, and when manufacturing receives these specifications from engineering, adhere to them.
This is coming from someone who has only bought new cars from GM (for the last twenty-one years).
Mike Thompson
To respond to your quoted sales fiqure for the Cadillac DTS, please specifcy how many of those cars were sold to Hertz, Avis, or Budget. I have a very strong suspicition that BMW may, in fact, sell 17% less in volume, but the units they do sell are sold to actual customers, and not rental fleets. Mr. Lutz, why does GM cheapen their brands with all of these sales to rental fleets. Make your product covetable again!!
Örjan Ekenbäck
Bob, Help…..
It is not all about car and car quality. I sell Opel in Sweden. Our problem with GM in Sweden are not of the same kind. We have the products and we have the quality. R√ºsselsheim is doing a great job for the moment giving us the right competetive products. The marketshare for Opel in western Europe has grown to 10,6%. But here is the problem…. We received the new specs and prices for the -06 models back in july. Opel in Sweden have not updated their website with the new specs and prices yet, five months later, for example the pricelist for Astra was with a special price that expired a year ago.
Norway and Finland are included in the same organization and they have great cites.
Sweden have a marketshare of only 3,5%. That is shamefull with the products we have today.
I have tried to get Opel Sweden aware of the problem but nothing happens, someone need to kick som a**.
We have lost 5 months of sale. Ford, VW, Toyota and all the french all have excellent cites promoting their products.
It is very important with the right promotion.
Örjan Ekenbäck
Impss
I think GM is really hurting, And could really use some cheaper performance cars that people could get behind. For example 94-96 Chevy had the Impala SS based on the Caprice. With limited production these cars went like hot cakes, and in so doing boosted the popularity of the caprice. take a look around http://www.cusstom.com and see how much these people like to modify and play with these cars. I cant drive a car that doesnt excite me.
jack
Bob, your comments are spot on. Including the one about making more cars people want. How about a stretching a Kappa (RWD) platform enough to squeeze in a backseat? Make a kinda retro small 4door sedan with a 2.0L turbo, give it some personality, sell it for $22K and call it a Corvair?
Chris
Before buying my Saturn I was not particularly a GM fan. I have owned Fords, Dodges, Toyotas and Hondas. To be quite honest, I didn’t really see what was so special about the Japanese cars that I’ve owned. They were reliable in that they always started, and ran fairly well. However they were not as durable as American cars. It seemed, and still seems that Japanese brand cars just don’t hold up as well after a decade or more of use. This may not matter to those who trade out of their cars every few years. To those of us who plan on keeping the car long term, it’s very important.
GM has been approaching the same sort of reliability as the japanese makers. GM has also been far to quiet about it. In the past several years I have seen far fewer recalls for GM vehicles, and the recalls have generally been for less serious things. The only recall I had with my Saturn, for example, was to replace the front DRL/turn signal bulbs. Hardly a reliability issue with the car.
In my opinion, GM needs to do what the japanese companies have done in the past: Proudly (and loudly) proclaim the benefits of owning one of your vehicles. GM needs to brag on itself and it’s products. Chrysler did when you were with them Mr Lutz, why can’t GM do it now? Though like Chrysler, GM needs some classy ads. No more of this “First ever” stuff from pontiac, no more sweater wearing people for Saturn, and Mom, Dad and the kids to replace Tiger in the Buick ads would be a good start.
nino
“I guess having the lightest, smallest, most efficient V8 engine platform on the planet is peanuts, even though roughly FIFTY PERCENT of GM’s vehicles are powered by it or a derivative.
Oh yeah…
It has pushrods…”
Your statement kind of says it all. Does GM really NEED half of its fleet powered by V8 engines?
As good as you think the V8 is, the fact remains that the V8 will use a touch more fuel than the General’s other engines that would do the job just as well. I mean, is there really a need to have a V8 powered Impala out there when you could have a 255HP car that got 3 to 4 miles more per gallon and would handle better too?
Of course, you want to bring up the LS7 engine in the ZO6 Corvette. What you fail to point out is that while the engine is impressive, it IS 427 cubic inches AND represents the highest technology pushrod engine ever produced. You want to compare that to a 260 cubic inch OHC engine in a Ferrari 430 “Modena”? Tell me again about how the pushrod engine is better?
Even admitting that the LS7 engine is impressive, do you honestly feel that GM will put that same effort in all its pushrod engines across the board?
I see many “cheerleaders” here, but obviously, SOMETHING IS WRONG because GM isn’t selling the product. I feel better fuel economy from lighter, more powerful, modern, engines, represents just ONE aspect that could make GM cars something you WANT to buy.
Chris
In response from nino’s post above:
The engines are modern, and light weight. For V8 engines, the pushrod design saves space and weight. The 7.0 in the new Z06 for example may be 427 cubic inches in displacement, but it’s physical dimensions are not anywhere near those of the old 427 big block engines of the past. It’s aluminum construction also means that it actually weighs less than the iron block V6’s used by other companies.
Now, take by comparison Fords OHC V8’s. They are far heavier than the GM V8’s, they also take up as much real estate under the hood as the old 429 big block engines did. Clearly, these “modern” engines aren’t really showing many advantages. I use the term “Modern” because overhead cams were used before pushrods were, so they are actually the older tech.
GM is doing a decent job in the engine department, though the 3800 is needing either a serious power boost, or a replacement. As it is no longer at the head of the class in power and refinement. I would not argue if the V6 currently in the CTS were made the replacement across the board for the 3800. It seems to be a very good engine, though I am not sure if it will fit in the same space as the 3800 does.
Al
I am a GMC truck owner (5th one) and fan.
You have the ultimate website name (www.duramaxdiesel.com) that is wasted because it hasn’t be updated in YEARS. Please don’t waste it. We love the duramax . . . update the site!
James S.
Over 10 years ago, a 300hp, v-8 FWD car, with a 4-speed automatic was built by GM.
The ‘06 Impala SS is better, how?
How does Lutz spell relief?
S-T-O-P G-A-P
Rene Curry
Happy Holidays Bob,
Consider this…A modular dashboard for all the electronics. Think of the old Pioneer home stereo rack look. Get away from the GM only radio and the aftermarket chasing your footprint. Standardize one footprint for everything. We got satelite radio (Howard #$*^Stern) GPS, phones, CD, DVD, etc and who knows what next. Get the interiors ready for the “what’s next”. I would even foresee the modular idea carried from the upper middle dash all the way down through the center console. You may be able to sell more content into the lower end vehicles using this concept. At the same time if you “lose” the GM brand on the electronics and use the supplier’s brand name(ie: Pioneer, Dell, Apple, etc) you won’t be setting GM up for any bad quality perceptions if there are problems. (ie like Mercedes & BMW I-Drive)
In parallel I would try to engineer a pathway to run wiring for the aftermarket components and for whatever is installed into the modular dash at the factory.
nino
The point of my original post was that there is an efficiency advantage in the OHC configuration vis-a-vis using pushrods. GM HAS the engines that they can use to take advantage of this efficiency.
All of the competition that GM faces, use OHC engines. This is even true of Hyundai. Even if it were only for marketing reasons, GM should use their 3.6 V6 (and 2.8 V6) across the board to replace the 3800.
Sam Houston
1.I’m still waiting for my El Camino. Why can you Federalize a Monaro and not a Ute? GM would be the only player in this market segment.
2. The HHR is ugly. It looks like a PT cruiser for overweight couch potatoes. The retro game is over and GM lost it.
3. Build vehicles that can survive a higher warranty.
4. I know that GM’s line of SUVs has the best fuel economy. I knew this long before it was finally included in the advertising. No one I told believed me.
5. I used to own a Toyota, I know they’re crap. So why doesn’t “everybody else” know? Because they hear what they want to hear. And they can’t hear your advertising over the road noise in their Honda.
David
Please don’t mess with Saab. I drive a 99 9-3 and enjoy the ride. The new 9-3s look really sharp. Keep it up!
motorman
Noticed today at the mall. While waiting for the mrs I watched car passing by and I noticed that all GM cars look like 4 wheel drive trucks because of the way they set,big gaps between the top of the tire and the fender cutouts.When a BMW would go by I noticed that the top of the fender opening set down over top of the tire for a much sleeker look. Why does GM have to have this stance,even my 2005 C-6 sets with a big gap between the top of the tires and wheel well opening.No body uses traction chains these day so why the big gaps???
Nelson Paiva
I just read that GM was recalling 425k vans from 2003 to 2006 for defective seat belt buckles! C’mon guys, how long have car makers been using seatbelts? I realize the seatbelts probably come from an outside supplier, but this is what causes people to have a perception of quality issues.
If the seatbelts (and other recall issues) are due to an outside supplier, then GM needs to either find a new supplier or make the parts themselves.
Aasheesh
Mr. Lutz,
Surprisingly, the 06 Impala SS is selling well knowing that its only USP is its V8 DOD motor. Beyond this one has to do a serious soul-searching to figure out what is so exciting about this Chevy.
As for the form, the 06 Impala has no unique character in it. Sadly, it has started to look like one of those boring Japanese and Korean family sedans. Or may be there is a strategy in here…
Apparently, not much has changed in the silhouette of this car from the 2000 model (Although, the ‘00 Impala had a better stance). Visually, the green house seems to be the same. Except for some tweaks to the character line on the body side (again this has made its body side look less interesting), the only obvious styling changes are seen on the front and rear fascias. Not to mention that these changes don’t seem necessary, at least the way they are done. It seems to share the facial expression of Cobalt - “a family look”. Are you guys trying to adopt (copy) the European branding theme - One look, one brand? First, it was the Caddy family look and now it is the Chevy family look. This is certainly a better idea than making every car in a brand look entirely different from one another, except for the logo/Badge. Remember those Pontiacs. But that doesn’t give away a license to just scale and stick one fascia styling on the entire product line without giving enough thought to the form integration. I wonder how the Europeans almost always get this right.
Most strikingly, the form has lost its definition as all the character creases are so faint that with lighter colours the intended styling is not communicated. E.g. If you look at the car from front ¬æ, everything from C-pillar rearward looks like a mass of something, particularly as you roll your eyes on the rear fender surface from the deck line down to the bumper fascia. All I am trying to say is that this car does not stand true to its Impala heritage and most likely will end up as a popular rental car. If that was your intent then it’s a win-win situation for you.
One thing I am happy to admit is that the overall built quality of this car has improved considerably. One can see better reflection lines flowing on and across the panels, better gap management and better interiors. I wish the styling was more Impala-ish to make this a roaring product.
Why this styling direction? Look around from Bimmer to Lexus to Chrysler; everyone is seriously playing with slab sides, creases and crazy stuff. Why are you heading in the opposite direction? I expect GM to lead and define the next-Gen styling language.
Lastly, what’s missing? Obviously a RWD config.
Hope you are hearing this prospective customer.
Rob Myers
Dear Mr. Lutz,
I enjoyed your comments concerning the general perception of GM’s products. May I share my thoughts with you on that subject? I have owned eleven vehicles in my lifetime. Of the eleven, only one was a GM product, a used 427 Chevy Impala I had for a short time during college. I sold it to buy a used MG Midget. Since that time I have test driven one GM product. GM has just not been on my radar for the past thirty years. That picture has begun to change in the last few months. Recently my wife made a career change and took a job as a new car sales person for a GM dealer. After a period of adjustment, she is excited and pleased to be part of GM’s extended family. Through her, I have discovered the GM product line up and it now has my attention. I did not realize what GM had to offer. The ads were not getting through to me. Once I looked, I have been pleasantly surprised to see many models that interest me. Our soon to be fifteen year old son has got his eye on a Solstice. While I don’t see that happening for a variety of reasons, I do see that things are changing for the better with GM and I wish you and your co-workers all the best success in the coming year.
Thanks for listening.
Rob Myers
Eddie
I just have some quick comments on Saab and Buick from an advertising standpoint. The Lucerne commercials are dark and boring - I can barely see the car with the dark background driving fast through a tunnel. The voice telling me about the precision of the gaps is boring. Just talking about gaps in millimeters is boring. Get me excited about the car - show it in the daylight. Fire that ad agency — I think they are the same ones that came up with the Harvey Earl idea that no one outside of detroit, MI could identify with!
Now with Saab. The ad agency that came up with the cornry “Born from Jets” slogan should be fired and forced to pay GM back for the damage they have done from to the brand. I don’t give a rats a** that Saab originally was an airplane maker. The previous slogan and commercials about the unique ness of the car and how once you drive one you usually buy one was much better. Saab needs new product - Saab was supposed to get their own version of the Subaru Tribeca but that is gone with the divesting of GM’s stake in subaru to their main competitor Toyota — that makes no sense. That venture with subaru was 5 years long and all we have to show for it is the Saab 92X — that AWD aspect is deperately something that Saab needed 5 years ago to help with growth.
Thanks for listening - I am pulling for GM
Bryan B.
Mr Lutz,
I agree that GM has made some improvements. I love the new GTO. I am still trying to convince my wife to dump her Hemi Ram 1500 to buy a GTO.
There are still some major hurdles to overcome. I cannot understand why GM does not advertise each car individually. Toymotors, Honduh and the others, all advertise for specific cars. I can not think of one GTO ad that I have seen. You should hire Jim Wangers to put together a new ad campaign for you.
Your other big problem as I see it is that other than the GTO, and perhaps the Solstice, there are no exciting cars in your lineup. I am in my mid 30’s and have always loved the 60’s musclecars. The GTO is nice, but there is no way that your average gearhead could afford one. How about offering it as a stripped down version. No power windows, no leather, like back in the day. While the other cars may be Good or even Great, to look at them does not evoke the WOW,look at that reaction. I don’t think you need to go retro, I think the mustang is ok, but the Charger is beautiful and it is not retro. The last generation of Firebirds was a beautiful design. Build on that.
I am glad to see that a true car guy is running the show in GM, not just a bean counter. Just do me one favor, Please don’t let Toymotors take the lead in the car manufacturing business. You are the home team, and you need to act like you are in the world series down 3 games to none.
Sincerely,
Bryan B.
Joe Lauerman
Bryan B, so nicely put at the end!
I like to reiterate one of your other points you so smartly pointed out…
When is the last time a high school kid ever said, “Gee, I can’t wait to get out of school and buy a Malibu!” Instead, this same kid says, “Gee, I can’t wait to get one of those new Hyandai Teberons, a WRX, an Miti STi, a new Civic w/ an 8,000 RPM redline!!!…” You get the point - Cobalt SS - yes, better late than never. Lower the price $3000 large.
Funny - at lunch today I went a trendy cafe. I stood on the front porch here in Milwaukee and saw the following: 2 Lexus, 2 Hyandai’s, 1 Honda Accord, 1 BMW, 1 Honda bread box (how they got away with that one, I don’t know), I Toy Highlander, 1 Toy Avalalon, 1 Camry —-1 Chevy Suburban and 1 mid 80s Buick LeSabre (must have been the help’s car).
You have an INCREDIBLE battle to wage Mr. Lutz!
If you recall - I wrote you, Rich W. and the then GM of Chev. Kurt R. a letter 5 years ago. I outlined the need for GM to put out a V-8 / RWD platform and have its entry price be $20,000. Do it before the Koreans do it…
Guess what - too late! They’ll have one to market before your concepts are off the drawing board (New GTO, Buick GNX….or did you drop these models?).
Again, why would I buy a GTO when I can get a Mustang w/ a V-8 for $10000 less?
Good luck!
jennifer williamson
What are the chance of a hybrid sedan in the near future? I want to stay with GM but am very tempted by the Prius. Gas prices are lower but unlikely to stay that way and we are living in the worst air quality basin in the nation so I want to use less gasoline.
Steve
Bob, I read all these comments from these arm chair quarter backs, who think building cars is like making Kool-aid, I will always purchase Gm products, my dad retired from the tech center, my dad has had 4 Gm cars hit 400k, with original motors and transmissions, meaning just (most import lovers dont belive this)maintanance,1976 Oldsmobile 88, 1984 Pontiac Pheonix, 1984 Oldsmobile 88, and his last car was a 1993 Buick Regal, he sold that car with 480k,and bought another Oldsmobile, with the great 3800 motor.
This whole quality perception is people who buy imports take better car of their cars, have a better dealership experiance, I think it should be mandated that people read the owners manual, on a new purchase, and I also feel Gm cars should have a better warranty to prove the commitment.I love the new lineup, and someone made a comment earlier about a civic getting 40mpg, well if they drove faster then 40mph they would see their real milage,and the hybrid cars are not a economical choice for 99% of the driving public,(everyone I ever see on the highway is in the slow lane doing 50mph) I think Gm has always had the #1 car/trucks, and I hope they continue.
Michael
Mr. Lutz,
It’s been mentioned before but bears repeating: doesn’t the market share trend speak for itself?
dale
“I think it should be mandated that people read the owners manual, on a new purchase”
Would you like to have dealers administer a quiz before owners drive off the lot?
Brad Hutchings
Hey Mr. Lutz!
I just saw a web ad for the HHR “with standard iPod connector”. This is really, really good. I’m happy with my 03 Blazer Xtreme right now, a year after putting in an Alpine system with iPod controls in the receiver. But I’d definitely consider getting the standard sound system in a Chevy if I decided to replace the Blazer. Very cool.
-Brad
Steve
I think it should be mandated that people read the owners manual, on a new purchase”
Would you like to have dealers administer a quiz before owners drive off the lot? Sure!
I am sure by your comment you are one of the people who never read the owners manual,their is alot of useful info in the manual, the whole idea is so YOU are more informed.And not having to go to the dealer to figure out how to do something trivial, then complain about it.
And they do it at Honda dealers, oh but thats different.
Steve
GM’s research shows that owners do open the book to look up answers to SPECIFIC questions, so the information needs to be in there.
“The guys who are the real techies, they go into the manuals,” says Walt Piekarski, manager of dealer workshop services for Mercedes-Benz. “The average customer says, ‘I don’t even use that because Quick Tips is a great reference.’” These laminated tip guides addressing common questions are now included by many manufacturers.
Dave Heath, senior manager of sales communications at Honda.
For some reason, buyers are anxious to escape the dealer as quickly as possible, and won’t wait around to watch instructional videos
Steve
Posted by: Edwin at December 14, 2005 08:49 PM
Now that was a good post!!!!
dale
Not sure about Honda, but I can tell you Acura dealers DO NOT administer a quiz before letting customers drive off in their cars. I’ve bought two — didn’t happen. And if they had, I can assure you, they would have gotten a piece of my mind both at the dealership and in the post-purchase survey. After the hours that it takes to buy a car, the last thing I’m going to sit through is an insulting quiz. Now, I do appreciate the salesman running through some of the features of the car, even if not every detail. Unfortunately, many salesmen don’t know the cars they sell nearly as well as they should. I’ve known more than the salesman at several dealers I’ve been to.
Oh, and sorry to burst assumptions, but I’m very diligent about reading the manual and the maintenance schedule. Quite frankly, I don’t understand the argument for your assumption. Why would ANYONE go to the dealer until it was absolutely necessary?????
Also… GM has some good cars, but only an extremely biased, blindly loyal consumer with his head buried in the sand would say GM has ALWAYS had the best cars. NO objective person could truly believe that, unless he was in a coma in the 80s!
James S.
Hey Steve, I realize that building Automobiles isn’t like making Kool-Aid, but blind support is drinking the GM Kool-Aid.
I refuse to buy a product I don’t want, in an effort to support a Company that evidently doesn’t want my money.
Steve
Well thats great Dale, but alot of folks dont, I am a Mechanic, worked at 2 dealers, 2Independents, people are always saying “how do you”
Well did you look in the manual, NO, I cant even begin to tell you how many people came in for questions that could have been answered if they took the time to look. And I was joking about the quiz, calm down, Since I am a Mechanic, I dont have a bias,I see which are harder, and more expensive to repair, why wouldnt I be loyal to 2 domestic manufactures, who’s cars/trucks have not givin me/friends/family issues? And look at my prior post about cars in the 80’s.
And James S, yup they dont want your money, ok.
Chris
Bob. I applaud GM’s turn around in the fit, finish & quality areas. I can see that the bulk of GM’s energy has been spent on fixing these areas. Now…. Please ensure 50% of that attention is now placed on exterior styling - and the other 50% placed on building a common/flexible chassis that can accommodate RWD, AWD to make coupe’s, mid-size & full size sedans, soft road SUV’s etc. If Nissan can do it with their FM chassis, Ford with the Mazda6 - I am confident GM could also.
Brian
You want to know why people are not giving the GM cars credit??
Because they look little different from the cars GM has been making for the past 25 years.
Dodge’s Magnum….. one look and you know it has nothing to do with the K-car.
The new Impalla looks like it could be based off the same underpinnings as the 1st gen Chevy Lumina. Look at each new design, it looks little different from the ones around it, and the ones before it.
B
O
R
I
N
G
And to think, I dreamed of becoming a designer at GM when I was a kid.
You guys have your heads stuck so bad you don’t know good design when you see it. The Solstice? How that came from GM who will ever know.
Now where is your sporty 4 door sedan under 30k?
Now where is your sporty 2 door sedan under 30k?
Now where is your Muscle car?
The GTO, design was not the only thing strangling the goat. The price also gave it a swift kick you know where.
Where is your high line Buick Luxury 4 door that can haul 5 butts to sixty in under 5 secs?
Where is your Buick going fast with class 2 door sedan?
I can go on and on.
Think about the things that made great GM cars in the past.
Now look around and see what is great about the cars today.
Not much.
Other than the Solstice and Vette whose styling is confused but manages to come together in person, there is nothing memorable about the vast majority of the line up at GM.
In 30 years the HHR will not be a collectible, the goat will because it will be rare, the Vette will, and the solstice will, other than that no one will collect FWD Monte Carlos and Impalla SSs.
motorman
That is what i have been saying,GM has to get out of the wind tunnel because all cars “blow” the same when you are looking for lowest C of D. I have owned lots of caprices and impalas,now a 2004, and one day the new Impala past me on the road and i said to the mrs,”look someone has put Impala stickers on the side of a malibu”. The rear view looks just like a malibu. I am very disappointed in the looks as I was expecting something that was so different the neighbors would know i got a new car. I am a big GM customer since my first new chevy in 1953 and have owned 10 new Corvettes,a 05 is in the garage and at least 20 new chevys.
J. Cole
Mr Lutz,
I am a newcomer to this Blog site; I discovered it from a recent Weblog article published in Amtrak’s “Arrive” magazine. I’ve always considered myself a loyal GM guy…and stockholder. But lately I’ve been very disappointed by the stagnant line-up that’s been offered in dealership showrooms–until very recently.
My immediate thoughts as to the U.S. auto industry’s woes these days: namely GM’s, stems not only from design and styling issues…value and resale equity, but also from fuel economy ineptness. Granted GM is getting better these days, but the Japanese have got a definite edge, here. The question is: why? Does GM have an allegiance to BIG OIL? How can the Japanese surpass the world’s number one car maker in this area?
Yes, everone knows that GM offers a variety of “re-imported”–Japanese–models that offer fuel economy: but what about a product that is invigorating, safe, and wholly designed, engineered, and built in the U.S.?
The Japanese are doing it year after year!
U.S. auto manufacturers are, for the most part, consistent at faulting Labor for the industry’s reprehensible shortcomings, but the interesting paradox here is that you never hear a complaint from a U.S. worker at a Japanese automaker.
That’s my complaint box. Now onto compliments: nice job on the evolving new products the you’ve worked on at GM, namely Pontiac’s G6. Future versions of this model, though, need improvements in fuel economy. It’s a nearly $23,000 base MSRP car selling in a 6 to 7 percent interest rate market, and competes in a $2.50 per gallon gasoline market!
I personally feel that today’s auto consumer is looking for a 38mpg to 45mpg highway and 25mpg to 32mpg around town car, or van/crossover, nicely equipped, comfortable to drive for the average size person, with styling appeal and safety features–sold as standard features…and I know that GM is quite capable of stepping up to the plate on this calling. Toyota and Honda have!
On a final note: what’s going on in the department of alternative/reusable fuels?
There was big talk about hydrogen at GM, a few years ago. Nothing recently! Honda’s hot and heavy on this subject, nowadays. And Toyota and Ford are going gangbusters on the Hybrid ideas. Honda was the first–off the line!
Mr. Rivers
Mr. Lutz,
I respectfully have to disagree with your sediments. Although GM does suffer from some perception issues, it is not just perception issues that are the problem. One major problem is design stagnation, with some minor exceptions. The new W body design for the Impala looks like the Lumina and Malibu had a baby and is nothing new! The problem has been inherent in this industry for some time. In the 1990’s all three US automakers had announced that they were going to limit there cross platform use, this never materialized fully, granted the days of a slightly different grille are gone but not forgotten. How many different models based on the same platforms can you produce before over saturating the market? Also you will notice that vehicles like the Accord go through a major redesign every four years, At GM we are lucky to see the Impala get redesigned to look the like Lumina(which sold for over 10 years).TO say GM vehicles are boring and vanilla would be an understatement in my opinion. Also on the engineering side GM is getting its rear handed to them because GM’s corporate culture is to slow to move. There is no excuse why GM has no true hybrid on the market! The Silverado does not count is it not a true hybrid. If GM had come out with a hybrid based on the Cobalt it would be in much better shape!
In the long and short term especially in the US market
Also GM may actually suffer because it has too many divisions! It is not that GM couldn’t keep all the divisions it seems like they are all building the same vehicles so in essence you are competing against yourself, for the same customers. There is a dire need to limit the divisions or at least the vehicles each makes perhaps make only one or two models based on the same platform therefore limiting the competition. I would certainly agree that certain divisions like Saab are not directly competing against Chevy, Pontiac, Cadillac, et al. Yet the other domestic GM divisions are. It makes no sense, I am sure you will loose some market share initially if you start closing divisions but it may make sense for the long term market and viability in the domestic car business! If GM does not take positive steps to restructure now it may be in my lifetime that I see a Chevrolet division of Toyota Motor Sales.
Joel Mayorga
Bring back a real street fighter.The CHEVY NOVA SS hint Commodore-G8-Nova sedan.Morano-GTO-Nova SS coupe.
Joel Mayorga
Bring back a real street fighter.Chevy Nova SS hint Commodore-G8-Nova sedan-coupe Monaro-GTO-Nova SS.Come on Bob Lutz bring back a REAL AMERICAN STREET FIGHTER.
Anonymous
Mr. Lutz,
Being a former Marine, I salute you. That being said, let first start by saying that people in America, despite what they say in front of people, no longer care where their car or truck is made and no longer care about GM or the American worker. Look in garages that are open in almost everyt town in America? You will see Toyotas, Hondas, etc. it is a sad day in America, but the proof is in the pudding. We can tout the quality, but what good is it if it falls on deaf ears? What GM needs to do is go back to its roots…back to what Steve jobs had said in his latest speech; “Stay Hungry, Stay Foolish”. GM has not done anything ‘foolish’ other than the Solstice in the last two or so years….and they did not even do that right…it was way underpowered…and deliveries were 8 months late…somebody should have been fired over that debacle. How many years has GM been ,making cars and they still can’t deliver them in a timely manner? And don’t use the excuse of a rail car shortage…Toyotas, Chryslers, etc. are still being cranked out? The fact is that GM has forgotten about the little things you should be doing in a business. Like listening to their employees. How many times does GM have to go through a “Not Invented Here” complex before they actually turn the corner? Let’s face it, the bean counters and “so called, educated elite, know it alls” have taken GM over. Gone are the days when a true car guy or gal are at the helm. When is the last time you drove a Cobalt across country? When is the last time Rick Wagoner drove an Aveo to a gala function? The execs at Gm would not be caught dead in one of those and you know it better than anyone. If you and the other execs would truly get in the trenches, visit dealers other than the “yes” men dealers that make up all of your boards, etc., then maybe, just maybe GM can make a go of it. I really want GM to succeed, but givent he current product portfolio and the refusal to accept that Toyota will be number one is insanity….remember, objects in the mirror are closer than they appear…Toyota. GM should bring back the Camaro…utilize the Chevy SS that was seen at auto shows in 2002 and actually produce it as is…that is what Chrysler did and look at their success….take the Holden Ute, badge it as an El Camino and sell some cars…bring back the rear wheel drive Caprice with a big motor….develop a good hybrid for the tree huggers….and stop leveraging so many klnock offs that all look a like. Good luck.
RBK
It bothers me that Dodge/Chrysler seems to have the “hot” looks and the performance drivetrain packages, while GM cars exteriors are very easy to ignore…no “grab” factor.
I drive an Avalanche today (had to turn in my Z28 Camaro when it was family time)…but I look a lot at Dodge Neon SRT-4’s, and Dodge Chargers…and there is nothing in the GM lineup comparable on a cost/performance basis (don’t mention the Cobalt SS…not a four door, not the same performance, and the Impala SS looks VERY dull compared to the Charger…)
My last three cars have all be GM, all bought new. I want the fourth one to be GM as well…but my eyes are straying..
guy
3 months ago I purchased the 2006 Impala SS. I looked for a new car for 2 years. I needed something as a daily driver in the 28k-30k range. Well I could not have purchased a better car.
This car had all of the features I wanted. I have a 92 supercharged Mustang 400hp. I wanted something with similiar power but front wheel drive to get around in the bad weather. The Impala delivered on all accounts. It excellerates real well, handles better than any midsized car, has a quiet ride, a kick butt stereo and a very comfortable, sophisticated interior.
I have never owned a chevy before but let me tell you the Impala has got my full attention.
5,500 miles to date and it is one of the best cars I ever owned. I love it!!
guy
I posted previously that I love my 2006 Impala SS. There is one thing that I forgot to mention. I was washing the car the other day and did notice some paint flaws under the wing on the trunk and on the passenger front door.
charles
DTS. i was given one as a loaner car for my Escalade. brand new. drove it from tampa to key west for a long weekend. exterior looks great. interior is nice. but it is front wheel and passing on the highway it is unstable (granted it is a cushy car). 4 speed automatic is no excuse. 275hp used to seem pretty impressive until u could buy a 340 hp hemi in a nicely appointed chrysler 300c.
buick lucerne. yawn. fwd. guessing 4 speed auto. with all the great history of buick and GM why are u coming up with these new names??? maybe because u ruined the all the good ones in the 80s?? i dont know. trade on your good names and your history. how about a buick electra 225? how about a big luxury coupe from buick or cadillac. nobody has one right now. i am talking the size of a mercedes CL500. the old fwd eldorado was popular but to me too small. make a roomy v8 rear drive classy coupe. maybe “personal luxury coupe” could be the next retro theme?? no one is doing one. like the 300c but a coupe. i think back when i was a kid and EVERYBODY who was ANYBODY in the late 70s and early 80s had a personal luxury coupe. either a cutlass (u all OWNED the market with cutlass) or a Regal or a Lincoln Mark V or a Ford thunderbird. all the fathers had them. but they had big back seats to shuttle the kids around. why do the marketing guys now all say they have to be 4 doors (witness the horrible dodge charger that most people do not like). make a buick Regal with a nice v8, nice interior, nice 6 spd auto, sunroof and rear seat room. and a convertible version. knowbody cares about a “Lucerne”. sorry.
get that 6 spd auto into production asap. i drove it in the corvette and it was nice. should be nice in the escalade.
charles
fwd impala ss is a joke. the old impala ss from the 1994 ear was beloved by muscle car fans. look at corvetteforum.com and places like this. u want to sell a monte carlo ss and an impala ss that is REAR WHEEL DRIVE and something that the muscle car guys can customize etc. u will sell the HECK out of them. the only reason the GTO is not selling like the mustang or chrysler 300c is that it is an old euro design exterior.
look at the NASCAR market. it is huge. that is chevrolets bread and butter. with the price of traction control and anti skid control systems coming down there is no need for FWD in most conditions. most familys will have one SUV anyhow. give them a sporty montecarlo coupe and impala ss as dad’s fun nascar stickered up car and u will make money. witness the mustang gt sales.
David Hoff
Dear Mr. Lutz,
My current vehicle is a 1990 GMC Suburban with over 263,000 miles. I bought it new and have put lots of fuel through it. It is not the most efficient vehicle, but it runs well, needs periodic repairs for a vehicle of its age, but all and all has been a solid reliable truck. When I finally decide to not repair it and replace it, I want to get a more efficient one. Why? Here is where I don’t think GM gets it. When I almost paid $100 to fill my Suburban during and after Hurrican Katrina, that really made am impression on me. Right now gas is ~$2.50 meaning a fillup now costs around $80. So, fuel economy makes a difference to me. I was looking at the new cars on the dealers lot when I stopped to pick up my truck from the repair shop, I was surprised to see the Impala rates 31 on the highway. That is with the 3.5L engine which has 211 Hp and only moves 3700lbs of car. My Suburban has a 5.7L engine with 210 Hp and moves 5500lbs of truck. So I looked into getting an Impala to replace my truck, but guess what? You can’t get the heated leather bench seats in the 3.5L engine. You must order the bigger 3.9L engine to get leather bench seats. For the life of me I can’t figure out why you need a bigger engine to get leather bench seats? What I really want GM to do is offer all the options with the smallest engine. To me, after test driving both an Impala with a 3.5L and a 3.9L engine and having driven my Suburban the past 16 years, the 3.5L engine has plenty of power. Why can’t the vehicle come with the extra bells and whistles, but with the most efficient engine? When you keep a vehicle for over 16 years and drive all the miles I have driven, 4 extra miles per gallon adds up - and we are never going to see $1.50 a gallon gas ever again in our lifetime. Just my thoughts.
Dave
jim ball
I own a 2006 impala ss and love it. I love the sound the feel and the looks. Gm has just about perfected fwd in these cars. The tires wear evenly and that’s impressive. I have read much about the plight of gm in the auto industry and have a solution that can put the company back on top of the industry. Gm has a great heritage, a great history, and many great stories to tell. These stories can be of the past present and future of gm’s automotive products and endeavors. There are millions of people that love GM and love their cars.
GM should own a cable station dedicated to cars and trucks. Through this venue gm could advertise and tell countless stories show old cars, muscle cars, engineering firsts. maintainance tips special shows and guests. I believe many people would watch and entice more people to buy their products. Just think no need to pay for commercials. Using imagination and creativity this new cable or satellite channel could be a great succss. Use it lauch new products get opinions monitor feedback and turn the industry upside down. How about it.
David
Over the last 15 years, I have bought 4 GM vehicles: a 1989 Olds Cutlass Supreme International; a 1992 Olds Cutlass Supreme Convertible; a 2001 Chevy Tahoe LT; and a 2003 Chevy Tahoe LT. I disagree with the perception that GM can’t do anything right. But, there are things that I think could be done to help yourself. For example:
1) Why is it that I can’t even buy a 4 door car with a manual transmission? (other than the Cadillac CTS). Why not put a 5 speed in a Chevy Monte Carlo SS (I’m sure alot of NASCAR fans would buy it). And if Pontiac builds excitement, why not put a 5-speed in a Gran Prix?…and not the “fake manual shifter” either. I want a clutch. I’m a person (and I know I can’t be the only one) that loves driving a 5-speed, but need some room for the family. The foreign car makers do it. But the Americans (not only GM) shy away for fear that nobody will buy it. Gimme a Tahoe LT with a 5-speed and I would buy that too.
2) Why is it that when GM comes out with a really cool new car, you only make limited production, which then allows your scumbag dealers to jack up the price? A friend of mine wants a Pontiac Solstice, and of course, they’re really hard to find, and then when one local dealer actually has one, they find the MSRP on the sticker covered up and an additional $10,000 added to the price. Of course, they walked away grumbling, and probably will end up buying a Miata. If you want business to improve, build what the people will really like and then supply a sufficient quantity. I think you will end up with more profit in the long run.
3) Get rid of the redemption allowance on your GM Mastercard. And, why is it that I can’t use GM card dollars and also get the preferred supplier discount? Do you really want to sell cars and make more money or not? Give people so much incentive that it will change the mind of any rational person. If a person has spent the time to get a large quantity of redemption dollars, then why not allow them to use it? And I mean the 5% plan….not the wimpy 1%. I’ve got $3500 in GM card dollars and also work for ExxonMobil. One day, I would like to buy a Cadillac CTS-V. Let me get the ExxonMobil preferred supplier price, and also use all of the GM card $s I’ve accumulated, and I would buy a new car soon than later….otherwise, I will probably stop using the card, and may end up buying a different car from somebody else.
Thanks,
David
Joseph Giovene
Dear Mr. Lutz,
I have been a loyal GM customer for 30 years ever since I worked for Ford and bought a new car from them. I don’t care for Fords or Chrysler products, but I find myself rooting for them lately only because I see the Big 3 going down the toilet.
There is no loyalty anymore, and we’re not just talking manufactured goods here. We really have no one to blame but ourselves, because when we were a monopoly, we decided that top quality was really very little quality at all.
Enter the Japanese, many bought them and handed them down to their kids. Then the parents went out and bought another foreign product. Now that we are getting our act together, it will be an uphill battle to win over the fold.
Your quality has improved tremendously, you ability to design attractive(Harley Earl) vehicles has improved but still has a ways to go.
When I look at some of the designs to come out of GM in past years, I have to ask myself “what group of fools stood in the design studio and said….it’s beautiful…let’s build it?” You need some real “Car Guys”, and less bean counters.
Here’s the way I see it: Stop chasing Japanese designs which are already coppied from the Germans. Look at the 300. Except for a few Rolls cues, it looks like nothing else on the road, and is very successful. The Camaro, doen’t look like the Mustang and Challenger’s predicesors, and the public loved it. Be innovative, creative, and BOLD. Good Luck!
Jeremy
I think GM has done an amazing job with the Cobalt SS Supercharged–I have one so of course I’m a bit biased, but I bought this when I was actually shopping for a Honda Civic Si and I found this to be the more attractive, more GM-upgradeable without voiding warranty (GM Performance Parts makes Stage 1 and Stage 2 supercharger upgrade kits, bringing the whp to approx 245, conservatively reported–because dyno results are showing higher actual numbers). I think with the Cobalt SS Supercharged, they’ve finally done something right (coming from a Ford/Dodge/Import guy). Though I was upset to see a Malibu SS model–it seems to water down the SS name a bit, much like Dodge has an SRT or SXT-4/8/10 for nearly everything in their lineup.