Stop Me If You’ve Heard This One Before…
By Bob Lutz
GM Vice Chairman
At the risk of repeating what I’ve already posted, I must share what’s top of mind today, and that is GM’s consumer consideration levels.
This issue, this question of how do we increase awareness, improve our image, and enhance public opinion of our cars and trucks, is weighing on everyone’s mind in this company, from the plant floors to the boardroom. We are all weary of hearing that “GM doesn’t have any vehicles that people want” or that GM “doesn’t excite anyone” or doesn’t have any products that are “relevant.”
Our cars and trucks have clearly improved, and continue to do so. And so has our quality and reliability. We have documented countless surveys and awards that bear this out, often right here on this blog but elsewhere as well, from Strategic Vision to J.D. Power to the Harbour Report to awards from various publications and organizations.
This month alone, we had two vehicles win MotorWeek Driver’s Choice Awards (Solstice and Corvette Z06), two win Intellichoice Best Overall Value Awards (Corvette and Chevy Express 1500) and one of our brands, Hummer, take home the Autobytel Consumer Choice Award as the marque that saw the biggest increase in requests at its website and affiliations.
Our launch vehicles are continuing to do well in the marketplace, and we have high hopes for the upcoming launches too, like the Saturn Sky and Aura, for example. And yet, the coverage of our financial state continues to point out our alleged lack of cars and trucks that people want. All the while more than a quarter of the vehicles sold in America are ours.
Yes, we’d like it to be more than that, no question, and we’re working hard to increase the total. But the deeper issue is this question of our image, and this perception that nobody’s interested in our products. We can and will do a better job of advertising and communications in the traditional sense, but we need to step up our non-traditional communications and word of mouth, and get our message directly to the people on a grass roots level. This blog is one example – but we need more avenues, and bigger ideas. What do you think?
- Posted in Bob Lutz
Nick Naylor
What you need is a Hyundai-type warranty campaign to get people over the idea that they’re taking a risk when purchasing GM. We all know the problem…sure GM is better, but so is Toyota/Honda/Nissan/Hyundai, and most customers of those brands are happy and have no reason to give GM a try again. Yes, such a warranty program could be really expensive–but there’s many ways to slay a cat. If you want to save some $$, just roll it out in one division and give it a try. DCX says it didn’t work for them, but there’s was 7/70 (not as impressive as 10 yrs), not to mention they didn’t advertise it to the capability that GM can.
Sam Verma
Mr Lutz,
I think the message is starting to get out there. Some of your problems have to do with Media Bias to some degree. I’ve read some reviews of the Lucerne where the reviewer seemed pained to admit it is a great car.
I think your add campaigns need to continue to emphasize all the positive press that GM cars have been getting. It does take time to change Brand Perception. Take a look at Mercedes. The quality and residual woes still have not reached the mainstream.
I didn’t even know about GM’s resurgence until I initiated a research study on the Auto industry for my company. And this is coming from a car nut too!
The emphasis at GM needs to be product. With more cars like the Lucerne and Solstice you will win people over. Use cutting edge designs like the Buick Enclave to do the advertising for you!
If people turn their heads and inquire as to the make of the car, you’ve saved yourselves a bunch of $$$ in media expenses. Think about what you did at Chrysler. Cutting edge designs have turned the public’s perception around completely. Keep on putting out edgy trendsetting cars and the people will come.
I saw the new Cadillac DTS on the television the other day. It looked even better in person. I took one look at the options list and realized that Cadillac, not Lexus and Mercedes, is the brand that brings out the latest and greatest technology first. The Lexus doesn’t even have front massage seats or triple Climate zones..
I was reading the brochure for the new S-Class Mercedes and they were bragging about having the first Night Vision system in their car..But, didn’t the Deville had this feature 5 yrs ago?
One look at the options on my dad’s LS430 confirms my initial thoughts. Much of the ballyhooded techno gear on the LS430 was brought out by Cadillac first. You need to remind people of this!!! Cadillac isn’t simply Style, It’s pushing the frontiers of technology forward!!
I will definitely make a GM product my next car. You and GM design teams are doing a great job.
Best of luck!
Sam Verma
Al
Call the discovery channel. Pitch them a new show - “American Automaker”. Hey, it worked for Orange County Choppers, right?
patrickmichael
Bob,
Maybe you’ve heard THIS before, but I do think that increasing warranties is a clear indication that GM stands behind what you’ve been saying. If this presents a financial challenge with the older models, then put the longer warranties starting with every new model introduction, i,e. Solstice GXP, new SUV’s, etc.
I also think GM needs to step up the speed of new design introductions to market. Did I hear 2010 for the Camaro?! Will it be too late - who knows, but it sure seems like a long time to get it out there. I really wish someone had the guts a few years ago to go forward with cars like the Nomad,2003 chevrolet SS (think Chrysler 300 sales).
Finally I think all of GM ads should do a better job of stressing cars with heritage and soul, where Toyota/Honda/Nissan/Kia have none.
Doug Glover
As a Sales person I find alot of peoples decision is not only based on the Car itself but the overall dealership experience. Our Dealership adds alot of “extras” into the deal after the deal for the car is done eg. Admin=$245
Theft Etching=$179, Tire Road Hazzard warranty=$75 plus all Federal and Provincial taxes. After the customer leaves they may still be happy with there selection of car, but may look for dealers that do not include these additional profit making fees.They may buy another product not because they are not happy with there GM car but there not happy with their Dealer experience. The Dealership is the Front Line in the Battle for Market Share.
Aubrey Hill
Problem: I own a Chevy Avalanche and have had several problems - most recently the well known speedometer problem - sorry out of warranty.
Also own a Pontiac Solstice - 2200 miles and already have an oil leak in rear and wind leaks in top.
Solstice is a real winner for you.
I have owned a number of Toyotas.
I would like to be patriotic and by GM products, but your quality stinks and dealers don’t care.
Keep doing things like the Solstice & Avalanche - great concepts, but if you don’t improve quality I will have to go back to Toyota. I almost never have quality problems. What amazes me is that automotive technology is not new - you have been doing it for 100 years. Why can’t you get it right?
The styling and utility of the Avy and Solstice sold me, but the next sell will be on quality.
Thanks,
Mark
Send me a car (Corvette ZO6 or GTO preferably, but I’m willing to negotiate), and I’ll be sure to tell everyone why its a damn good car! Just e-mail me and we can go from there.
Edwin
Mr. Lutz,
GM enthusiasts know GM has the best products. Its media bais and marketing that is at issue. GM can gain market share, not just volume. GM is making breakthroughs with the G6, Solstice, Cadillac, Lucerne, Impala.
For local word of mouth, try a different kind of dealership in the jet set areas of Washington, DC. Have a Luxury GM dealership/showroom in DC that only sell GM’s top line products, Cadillac, Corvette, G6, GTO, Hummer, etc. Make a powerful product statement in a high impact showroom. Have a stronger statement of GM’s top line products in malls of metro Washington. People in DC like exclusivity and superlatives. They want the what people perceive as the best and they will over pay to have it.
Put text in black and white picture ads in the Washington Post and the Washingtonian. People read them.
The import competition markets Scion like a fashion clothing brand, even at the auto show.
Look to fashion markets for some inspiration. Many fashion branded stores in fashion malls sell to male and female clothing. (Abercrombie, Hollister, GAP, Bananna Republic, Limited Express, and so on).
This group of upper middle class males impact the choices of their friends. This is all sex appeal. Cadillac needs an entry level model that appeals to this group. Then give Buick and Pontiac the cousins. GM could offer an ultra light Hummer truck to appeal to this group.
Start from the top down. Give Cadillac a dual styling strategy, some models with masculine appeal like current styles, and some with feminine appeal like the Enclave. The customers are different. Cadillac’s current styling is more masculine, Buick and Lexus are more feminine.
Give the male appeal Cadillac and Pontiac the vertical headlight geometry.
Give the feminine appeal Cadillac and Buick more horizontal headlight geometry.
Chevrolet has universal appeal.
This means a few extra models for Cadillac, and more market share.
These alternative luxury customers are looking at style and image.
Brand power strategies can achieve break throughs.
GM can counter the media bias with Hollywood. The Matrix was such a success. Stars themselves can lure people to brands. GM should try a star like Colin Farrell to advertise for Pontiac.
GM can counter the media bias with technology. Give GM TV an independent sounding name like ONSTAR Television. GM can create computer games. The importance of this is that younger import buyers seem to associate their Japanese electonic games as supporting their Japanese import cars. Sounds crazy.
GM could give ONSTAR an entertainment appeal, not just a safety appeal. The way to win them over is throught their lifestyle.
The Superbowl should inspire GM, the media coverage from the Renaissance Center was fabulous. Why not have a media supercenter in Detroit?
Zane Merva
Bob,
Check out GM-Trucks.com
We are a larger GM Truck enthusiast website that receives nearly 50,000 unique visitors every month. We’d be glad to help you in anyway we can.
I already communicate with your media relations staff in the northeast and drive a few of the media fleet vehicles. We have an enormous amount of traffic and influence in the GM truck enthusiast following. People read our reviews and take it from the standpoint of a fellow enthusiast telling them what they need to know, and not a biased large car mag doing a spruced up comparo. They relate with our reviews because we focus on the experience of driving the vehicle. We also give them something print can’t, hundreds of pictures and video clips. We can even do informal surveys to find out opinion. Young, old, computer literate and not… they all visit GM-Trucks.com
We’ll write a detailed review on any vehicle you want to throw our way. We even do car reviews. Kathy Hamilton in the Northeast or Mike Albano at Chevrolet know how to get a hold of me if you’re interested.
Thank you,
Zane Merva
Devang
The 1-day take-home test drives, and the track days with competitor’s cars are probably a much better way of trying to stir up buzz. Awards and PR campaigns are good, but a bit like movie reviews, when was the last time you truly trusted one?
GM_ENTHUSIAST
I think you need more products like the Chevy Tahoe and Camaro, two examples of products that can/will be at the head of their class. All GM really needs is to start going against the cookie-cutter judgement (Malibu, Grand Prix, etc) and start getting out the class leaders we all know GM is capable of.
Starting FastLane was a great start to get in touch with customers. I personally would go to the dealers, though. My father is one of the most experienced service managers in the business and keeps telling me about how GM needs to step up in certain areas of service.
One of those areas is the Duramax Diesel, where he had a faulty part in the engine, screwed up the engine badly (hit the head and took a piston out). He tried to order a part quickly to fix it instead of ordering a whole new engine (the easy way out), and was trying to save GM money and get thru the lemon law. Could have had the brand new 6600 (360 hp/650 lb/ft torque) Silverado out to the customer in less than a day. Instead, he had to wait 2 months as they shipped the part from Japan. This is an important customer, who buys a $50,000 truck, and important manager, who was trying to save GM $14,000. If you could get that part of the operation (not even having no problems, just dealing with them better) I think GM would at least break even. Thank god that was a loyalist we did that to, LOL. NOT!
As you have seen with Saturn, great service can overcome a product that is not really that competitive in its segment. Get this to all of your brands.
Define all of your brands better.
Get all of the word and advertising going to all of the dealers on the Total Value Promise. This promise, if added to the right warranty, etc, could be a huge selling point to a lot of consumers. If you don’t want to compete on price, then don’t. Compete on value!
Finally, reward loyalists to the brand, and welcome new people in with great SERVICE. We all tend to think about product at GM, and it is one of the areas GM needs to tend to and is doing so with great men like yourself. It is deeper, though, and you know it too.
We are all pulling for you and the rest of GM, Bob! Go get us some exciting product to sell! Get someone else to start refining the service/parts side of the business=mega profit, even if GM never recovers to 30%+ market share.
Gary Miller
Bob, I retired at the end of ‘98 as Relationship Marketing manager for GMC out of central office marketing, so I have some point of reference. GM needs to do more Corporate TV ads that show the breadth of the line-up.
You have no idea when you are away from Detroit how clueless people are about GM brands. Just yesterday someone was commenting in my STS and was shocked to hear GM made Cadillac. Go figure. Consider a montageof images of some of the hottest in the line up. Just have them appear for 1.5 secs. “To see more, visit any one of the GM dealers near you”.
My montage pics:
Corvette, Solstice, Sky, HHR, Cobalt SS, G6 Coupe, G6 Conv., CTS,
STS,
SRX,
Escalade, Tahoe,
Lucerne,
Impala,
Saab 9.3,
H3
Most people would be blown away that these are all from GM. Time to be bold, in your face and dramatic.
SteveG
Many people will never trust your vehicle quality unless you increase your warranties! Don’t you guys read what we are saying?
You would sell more cars with a longer warranty than with rebates, and if your cars are as reliable as you say it won’t cost you as much. Capeesh!?
At the production end, it is obvious that you don’t put the same attention to detail in all your vehicles. The 2006 Impala looks at least like you were paying attention to the tactile feel of the HVAC and Stereo controls. However, the same can’t be said for the Cobalt and HHR for example.
Honda and Toyota do not scrimp on ANY of their models and it shows. Toyota’s vehicles are boring to look at and still sell. Thats because of their tactile feel and reliability. GM needs to get on their level. The Malibu and G6 are the most glaring examples of your inattention to your cars and the need to declare war on Toyota and Honda and come out with some kick butt take no prisoners automobiles-with standard seat height adjusters, standard tilt and telescope steering wheels, standard lumbar adjusters, standard traction control, standard ABS, standard electronic stability control (with the ability to turn it off), etc etc.
Go for a home run with each model and GM will come back-but only with a longer warranty attached-it MUST be done.
And another thing-power window switches belong on the door! And leaving off the P-R-N-D-L off the Console Shifter is ludicrous.
Please-this is not rocket science-just do what the others do-they go all out!
As for getting your message across, your advertising except for a few decent commercials is atrocious. Hire a new ad agency. The new Ford Fusion ads are better than anything your agencies come up with-same for Nissan and Infiniti.
The best advertising is a killer car review from the mags-to get that your have to have killer product. NOW
Jeff Cain
It’s clear that GM’s products are improving, some by great leaps (Tahoe & Friends), others incrementally (Cobalt). But the main issue is this: your products, at least on the inside, still FEEL like less expensive products and do not meet the standards set by the competition. For example, (and I hate to say this as the Solstice blows me away) the interior of the Solstice, while aesthetically pleasing, FEELS like a cheaper car, actually feels cheaper than $20k would purchase. After sitting in the Solstice, go sit in a Miata. Big difference, much bigger than the difference in price as the Miata feels more expensive than it is.
Same for the re-designed Impala; the interior “appears” to be a big step forward (and is) - but touch the surfaces! Perception shattered, ESPECIALLY after sitting in either the Camry, Accord, or even the Hyundai Sonata. These cars feel like more expensive products. I have to say that the new Impala and the Solstice were two of the biggest disappointments at NAIAS. And I very much WANT you guys to retake the industry.
You’re making great strides in quality - it’s really starting to show - but there’s the final 10% that’s keeping GM off of many short lists. You guys nail this “feel” issue and all this talk about market share and discounting will go away permanently.
Thanks for listening.
Joe
I think you perception is improving. What I’ve really noticed is how your TV and magazine ads now focus on the vehicles and not the rebates for the vehicles. This is a huge step in the right direction. Many of the commericials, espeically for the Buick lucerne are great. Its all about stirring up some sort of emotion in the buyer. The car doesn’t even have to be the best at everything, when I see a commercial with some dramatic music and great shots of a beautiful machine, it makes me very interested. SELL THE CARS! not the awards, not the rebates or sales. If any pricing information is given it should be for no more than 3 seconds at the end of a spot. You must stir up passion and enthusiuasm for showing off great machines. Show that American engineernig is precise, accurate and worldclass. Its going to take quite a while to change perception, but its getting there. After all, you’ve converted me. My next car was going to be a Honda, now its going to be a G6 GTP Coupe.
Edward Hayes
You guys are the quiet type.
Not like Iacocca who took a stroll down the unfinished Jefferson Noth Jeep plant and declared, “Everyone things that everthing from Japan is great and everything from America is crap…”
Then Bill Ford got on T.V. and showed us his “Way Forward.”
Okay Bob your next get ready. Look just tell the public what some here already know. You started at GM in 1960’s you came back at Rick’s request to improve design, and it’s grown now into a mission.
Show them your first cars the Solstice along with the HHR and H3 and tell them how these vehicles will inspire future designs at GM. Show other works like Camaro, Enclave, Escalade…get your best in one place.
Take a stroll down the new Enclave factory like Iacocca. Let America know why they should believe as we believe.
And I don’t know about all these secrets, 18 new models coming this year and even I don’t know what half of them are. CTS, Malibu, Outlook, no clue what they will look like but Chrysler shows the Imperial and they declare “America’s hottest automaker.” Your CTS is coming out before that car isn’t it?
Good news! With a $150 million add campaign for the Prius Toyota brought a lot of perceptions. You got to play a smarter game and the “Live Green Go Yellow” is working.
In other words perceptions are for sale.
The financial news and the Wall Street scuttlebutt “sell GM while we secretly accumulate it”, we can’t do anything about. However, let the recent success of the new Hummer, Buicks and Pontiacs not go unnoticed.
Oh, and end the commercial with a quick glance at the better Buick High roof sedans coming that will put Buick back at the top of the family sedan segment.
Bob, let them know who you are and what GM is becoming.
Share the good news.
Trollhattan Saab
Pick Me, Bob!
"The people are revolting!!"If you taken in everything the media is saying about GM’s state then we are currently on the eve of the apocalypse. "Not so" says Bob Lutz in his latest instalment of the Fastlane weblog. Bob’…
mbb
I think that all of us who are General Motors fans are extremely frustrated by the negative - and irresponsible - press that the Company continues to get. There are several things that I’d suggest that GM could do to help counter the unflattering and unfounded media reports that are prevalent today:
> increase product warranties: this would resonate with consumers, and sends a very distinct message that the Company has confidence in its products
> engage in a “did you know?” media blitz that (1) highlights the fact that there are more GM cars in North America than any other brand - “more North Americans rely on a GM product every day than any other brand”
(2) highlights GM’s quality achievements, and shows these relative to competing makes/models
(3) highlights all of the things that make a GM product superior: “little things” like the way the interior lights up when the key is removed, or the convenience of GM’s programmable locking system; and, the bigger things, such as the number of models (cite them by name) that achieve high mileage ratings, ONSTAR, etc.
(4) features satisfied customers telling why they like their GM car or truck: this could include any customer, but could also be supplemented with testimonials from celebrity owners
(5) doesn’t apologize for what GM is and what its products are: be bold, confident; try to capture GM’s proud history, and bring this forward to highlight the “DNA of success” that’s in your products today.
(6) emphasize that, overall in a particular segment, GM is the #1 choice, even if it doesn’t have the top-selling model in the segment ie. the F150 versus the Silverado/Sierra (if this is the case), and stress that GM gives consumers more choice (flavours) in various segments than any other vehicle manufacturer. In relation to this, emphasize all of the car models that GM makes, to counter the absurb claim that GM is primarily about trucks: GM offers more quality car choices, with segment-leading fuel economy, than any other company.
Finally, do what needs to be done to get the press onside: get the editors and writers together in major centres across the country, and show them what GM has to offer. (As an aside, can any of the recent press be construed as mailicious or libelous, and might taking a publication to task over errant information send a signal that GM isn’t going to take this lying down anymore?
Another thought: engage your satisfied customers to conquest their friends/neighbours/associatesby giving them certificates that they can pass on to these contacts to cash in on vehicles …. and reward the customer with a gift certificate at an area restaurant, etc.
And another thought: get your vehicles out on display in public ie. in airports, malls, etc. etc.
Thanks for the opportunity to relay these random ideas, and all the best: you’re heading in the right direction!
MBB
Daniel Will
GM needs to change MINDS as much as it needs to change products.
1) QUALITY/LONGER WARRANTIES - This saved Hyundai by proving the manufacturer is serious about quality. GM’s perceived quality doesn’t match your real quality. YOU HAVE TO PUSH THIS ONE THING OVER AND OVER AND OVER to make up for years of poor quality that has solidified in the minds of consumers.
2) GET PEOPLE TO TEST-DRIVE: The Pontiac G6 is a great car–but people don’t believe it. It’s got style and handles well. But people don’t believe it. Spend money getting them into the dealer to test drive it and then they’ll go, “Oh, yeah, this is much better than a Camry!”
3) SAFETY - MORE AIRBAGS & ONSTAR STANDARD - The Koreans can put side and curtain airbags in every car. GM should, too, without charging $680 extra. Show you care about people by proving you protect them better. On-Star is a real advantage, in conjunction with better airbag support.
4) VALUE - NO HAGGLE PRICING. Most buyers hate haggling. You are helping with value pricing, but dealers are still adding needless markups. I went into “Park Royale” Cadillac in Marin California and they’d added at least $2,000 to every single vehicle on the lot–even during the red tag “you pay what we pay” days. That pushed me right off the lot to the non-GM dealer next door where they don’t play these games.
5) DESIGN - Better exterior design. GM is doing a great job with some new models (Solstice, HHR, Equinox, Aura…) with much improved interiors, and I hear you have some great stuff coming out–yet others still look dowdy. The new Cadillac DTS is just boring, as if you were afraid to alienate 80 year old buyers, and in doing so, alienated 40 year old drivers. Why buy a DTS when you can buy a Chrysler 300 that has the bold look Cadillac’s always used to have!
6) ECOLOGY AND EFFICIENCY - e85 is great–extend it to your entire line. Clean Diesel’s are simpler and almost as fuel efficient as hybrids–they’re so popular in Europe, make them here for the new low-sulfur diesel that will be available. Pointing to a few 385 vehicles is NOT enough. http://www.e85fuel.com says “…the production of vehicles by auto manufacturers that are capable of operating on unleaded gasoline or E85 (flexible fuel vehicles) at little or no additional cost over the gasoline only model…”
7) STOP BADGE ENGINEERING. What is the point of the Pontiac Torrent except to add another Pontiac. It’s a waste of development money and marketing dollars. Decide what each division is, design for it, and keep there.
FOCUS BRANDS: it’s time to bite the bullet. GM doesn’t need Pontiac or Buick (or Saab for that matter). GM only needs Chevy (why not the Chevy Solstice?–goes with Equinox) for cars and trucks, Cadillac for luxury, and Saturn for youth. Hummer just gives GM a bad name. Three brands work for Toyota (Lexus/Scion). It lets you focus resources on models instead of brands.
The TrueTalk Blog
Bob Lutz Pushes Back and Reaches Out
GM’s Bob Lutz comes out swinging this afternoon. In a post provocatively entitled, Stop Me If You’ve Heard This One Before…, Lutz takes on the perception of GM’s vehicles:This issue, this question of how do we increase awareness, improve our
NeedCoolCars
Mr. Bob Lutz:
Be sure that GM is not confusing “want” with “need”.
The cars I “want” and other people want are mostly foreign or have homerun designs. It’s because these cars are exclusive and they feel exclusive to drive. If I am driving a Benz, people say “Wow, nice car. How long have you had it?” If I’m driving an Impala people say, “Oh, are you renting that?”
There is nothing more uncool then driving a rental car. No amount of advertising, conventional or otherwise, can change that. People know Toyota, BMW, Mercedes, Infinity are not rentals. I’d like to see the actual market share of GM without fleet and employee sales.
I think a lot of people were buying GM because they “needed” not because they “wanted”. They needed a low monthly payment and decent reliability, and were not concerned about cool. Or, they needed a truck. That is what GM is: cheap, reliable, uncool cars.
Or trucks.
But the “need” market is shrinking because you have Kia and Hyundai, and even (your own)Suzuki that undercuts you on price and offers a better warranty.
So, GM is loosing the people that “want” a car, and loosing people that “need” a car. Thus you have the disaster that GM is in.
There is no amount of money that you can spend on marketing that will convince me that I “want” an Impala. You have to design an Impala that I just MUST have. It has to be HOT and you have to keep supply tight so that my resale value stays high, even if that means people are waiting a couple of weeks to get one.
If you want me to pick Cadillac over Mercedes you have to have THE WHOLE package. Exterior and INTERIOR, powertrain, wheels, etc. It has to look and feel solid. You cannot use marketing to convince me that the plastic cover around the seat on an STS is luxury and built to last, when it cracks and moans as I wiggle around to get comfortable(from experience). Marketing can’t convince me that a G6 is reliable, when the seatback adjuster lever comes off in your hand (from experience).
So here is my big idea. Instead of creating 3 cars out of 50 that people want (Corvette, V-series, Solstice/Sky) why can’t GM design 49 cars that people “want”…”must have”. That people lust after. The 50th car can be a purposed built fleet car for rental companies and police forces.
Bottom line, marketing isn’t the answer. Spend the money on hiring/training better designers. Design cars they are emotional and aspirational. Make everything I see and touch feel solid and precise. Make the design look like someone cared -not copied- when they sat down with the pencil. Do this and the “buzz” will follow, as will the people, into GM showrooms.
John
The blog is a great idea, but I don’t think it’s the non-traditional marketing that’s the problem for GM.
GM makes some great models! While I’m too big to fit in the Solstice or the Corvette, I still think they’re great cars. The new line-up of E85 Flex-Fuel vehicles is awesome as well, and if GM could get some E85 gas stations online in Americ’s biggest cities, these vehicles would become extremely attractive indeed. Seeing the Monte Carlo make the Consumer Reports recommended list was a coup as well.
That said GM’s problem is that it continues to make so many inadequate or semi-adequate cars that the good ones get lost in the crowd. If GM really wants to make headway, it has to start making every car a benchmark car. Nobody needs to see 6 variations of mediocre minivan or overweight front-drive sedan.
Otherwise, those who aren’t major GM fans will come to the showroom and get lost in a sea of mediocrity.
Combine that with GM’s random pricing, where no one knows whether or not they’re getting a good deal, and the almost legendarily bad dealership experience, and well, that ends up pouring defoliant all over the grass-roots.
Luckily, those bigger ideas aren’t very difficult.
Straightforward pricing, honest and positive dealership experience, and a slightly smaller lineup of better cars and the word of mouth will take care of itself.
http://www.caranddriver.com/article.asp?section_id=15&article_id=10524
GM beat Honda in Car and Driver’s latest comparo. Too bad it was still 3rd out of 4.
Seriously GM. It doesn’t cost any more money to make benchmark vehicles than it does to produce mediocrity.
That’s the most important big idea GM needs.
Failing that, GM just needs to go back a generation and start cranking out cheap V-8 powered RWD cars that the average guy can tune and repair on his own.
We’ll forgive a lot of rattles and a low grade interior if we can get 400hp, RWD, and a stick shift for less than 20k.
Paul
Bob,
I appreciete your sharing of GM’s reality, contrary to the popular notion of GM’s “relavance.” I’m not a marketing guy, so I have no ideas on getting your word out. Yet on your product front, here’s my input, coming from a 33 year old Californian, raised by a father who has always been a huge GM fan, especially the Corvette. Growing up it was always GM, I got the hand me down Chevy Citation, then moved into the hand me down Buick Skyhawk (1.8L Turbo), and then the hand me down Chevy Blazer. When it came time to make my first new auto purchase in 2001, I really wanted to buy GM. I didn’t though, I bought the 2002 Subaru WRX Wagon(I had some condolence knowing GM owns 25% of Subaru). I would agree then, but less so now, that GM was not putting out cars that appealed to what people wanted. What I wanted was an AWD vehicle with power that wasn’t an SUV. The 2.0L turbocharged engine in the WRX did that, and it wasn’t something GM (nor any other American company) could provide. GM was happy selling SUV’s, blinded to the fact that someday gas would go up, or popular opinion might go to something smaller yet more refined.
I love the new stuff I see coming out of GM now. The C6, especially in Z06, is just plain awesome. The Camaro concept will be sweet if it ever makes it. I like the fact you took chances on the SSR and its follow up the HHR. The more powerful Solstice is a good start.
As for trucks, I think to continue being relevant GM has to erase the popular concept that Toyota’s “last forever”. I realize my corner of the world may be small, but most people I know around here looking for a truck (for work, surf, or ski) goes with a Toyota Tacoma. “They last forever” is the what every buyer says. If GM could make a Tacoma Killer I think good days would be ahead. A smaller truck, in 4×4, that is dead nuts dependable, and has the same under the hood familiarty that is why we love working under the hood of GM autos.
Help us that want to buy GM but keep going to Japanese cars, buy GM again.
Thanks.
Paul
JTJ, Esq.
What’s wrong with this picture??????!!!!!!!!!!
Cadillac created the most magnificent luxury sedan in automotive history - THE CADILLAC SIXTEEN - literally my dream car! I still have two scale models of a 1930 V-16 Fleetwood Town Brougham and Roadster here on my shlef which I made as a child.
I WANT A SIXTEEN NOW!!!!!!!!!!!!!!!!!!!!!!!!!!
PRICE IS NO OBJECT!!!!!!!!!!!!!!!!!!!!!!!!!!!!
It is the only car that GM has created in the past 45 years that received hysterical and universal praise from ALL the auto magazines and from every other source that I am aware of.
SO WHERE IS IT?????????????!!!!!!!!!!!!!!!!!!!
Sitting in the lobby of Cadillac headquarters in Detroit, and making appearances at dealership openings in Asia and Suadi Arabia. Where are the sales dollars in that?
If a Saudi Price was willing to pay $10 Miilion for one, I guess that there really is no issue about demand?????!!!!!!! Is there????????!!!!
And I am literally demending one, so what is it that you don’t understand about simple supply and demand theory? You created a masterpice, people want it, you make it, I’m happy, and you get big bucks - right????!!!!!!!!
I have refused to own any vehicle other than a Cadillac and I will shortly turn 50. Unless you make the Cadillac Sixteen soon, you will force me to buy a Bentley Flying Spur - a POOR second choice but the ONLY other car in the world that exists that I actually want. The Rolls Royce and Maybach are bad jokes. All BMWs and Mercedes are too small and do not have “real” performace like the Bentley has and which is epitomized in the SIXTEEN.
The issue between the success or failure of General Motors, any of its divisions, or any GM product, is whether you will throw off the pall of BLIND FEAR and instead move on to a new, higher level motivated by COURAGE AND VISION.
GIVE US THE CADILLAC SIXTEEN AND RECAPTURE THE TITLE “STANDARD FOR THE WORLD”!!!!!!!!!!!!!!!!
(Also, a V-12 or V-16 coupe version of the Sixteen would be a really good idea for the sport-car set and would leave the Bentley GT and every other sport coupe in the dust.)
Again, stop operating with blind fear and take control of GM’s future with COURAGE AND VISION!
Respectfully,
JTJ, Esq.
J.D./M.B.A.
john h
i have test driven the new vette it is awesome. i think people are worried about getting burned like in the 80s. last time i brought a chevy was 1994 on the way home from the dealer it died i was heartbroken. first new car ever doa these things stick in peoples minds. i am 90% i will be buying a new vette. i just want to know why cant gm other cars be like the vette. i was at the dealership the only car i would buy is the vette. stop trying to out japan japan .i want bold american style with good relaibility. i want a car that put a smile on my face when i get in it.think ahead gm releases cars 2 years behind what going on. dont kill the cars when you get the right like fiero and camaro. also when you have a car people want have the dealer sell it at msrp ,not crazy markup. thats why i dont have a z06 to drive i love gm but i want excitement in my cars tell the auto worker to take pride they are a direct reflection of the product. Good luck gm i am excited for your future and i will do my very best to buy a gm prouduct.
Mr Tripower
The problem GM faces may be one of preception as you say. Your product is definitely better than it was 20 years ago, but GM has worked long and hard at losing the confidence of the public. Fourty years ago you were the only game in town and it didnt matter much because you had a captive audience. The cause of your sales declines was shoddy products and recalls. People remember when they have trouble with a product and generally wont go back for more.
Curing the problem wont come from simplistic approaches like this blog. You have to put product on the market that is precieved as better than the Japanese. Obviously by your posting this blog, GM is telling me they have no idea haow to solve their problem.
The main line of cars for GM (all the W bodies) should have been replaced 10 years ago. Everybody can see they are an early 80s design which has been recladded too many times.
Now you come out with a Camaro concept only to tell me I have to wait until 2010 to get one. Also Motor Trend is reporting that the next generation GTO is dead! What have you guys been doing for the last 10 years? (Evidently, dithering around watching everybody else pass you by). Maybe I should purchase a new BMW 3 Series or something like that because you guys are at least 10 years behind everybody else and if you dont watch it you will be bankrupt in 3 years time like Mr York said.
Sincerely
Losing Patience with GM
inline6
You guys ARE improving. Kudos to you for that. But keep it up. Don’t stop. Never stop. That’s what got GM into the fix it’s in today.
And the cars that you have improved are more competitive than ever, but they need to be coninuously improved.
That, and many of them are on old platforms, like the DTS, Lucerne, LaCrosse, Impala, Monte Carlo, Grand Prix, Uplander, Terraza, SV6, and Relay. Most of them are pretty good vehicles now, but they can’t stay on the market for 6 or 7 seasons now and maintain momentum and profitability.
It’s easier and more profitable for our media to continue in their sensationalist attitudes, and unfortunately, your company has been hit hard by this exploitive culture.
However, I hope that instead of discouraging you and your co-workers, it puts the spurs to you all to give us the best, most desirable vehicles possible.
I’m 22 years old, and I’m huge into automotive history. Buick, outside of the independent manufacturers of the past, is my favorite brand currently sold today. Their rich heritage of high quality, bold, elegant, beautiful styling, and a powerful presence and performance make Buick a brand with a wonderful past.
However, I fear for its existence now that Saturn is being launched into its cost structure and territory with vehicles on newer platforms that have sportier pretentions. All the while, Buick’s new sedans sit saddled with powertrains that feature less power than smaller vehicles from lesser divisions.
Please work toward building Buicks that are what younger people like myself aspire to. Vehicles that grab attention and respect. And easy on the sedate.
Anyhow, you’re doing well, Mr. Lutz. Thank you for all your effort. I’m rooting for you.
RJ
Bob,
While I don’t doubt your sincerity, I feel that the culture within you work is not capable of making good on your promises. The announcement this week of GM plans to produce a badge engineered Cobalt coupe as a concession to a whiny dealer body, is evidence of such. No matter what the Finance bean-counter boobs suggest, this is a terrible idea. It WILL destroy the resale / residual values of current cobalt owners and alienate any entry level conquest customers you net when they discover are worth zero 2 years after buying.
You say: “This issue, this question of how do we increase awareness, improve our image, and enhance public opinion of our cars and trucks,…” One way to NOT improve GM’s image is to continue badge engineering vehicles for an American public that is apathetic to your efforts and abandoning your brands because they are deemed cookie cutter and blah. The auto rag press is not impressed with your newest vehicles targeting brand building (see the ultimate re-badge Torrent, nee Equinox) and will continue to blare the standard message at the public perpetuating the negative image of GM - imagine the headline …”G5 another re-badge - GM is all out of ideas…”
You also say, “We are all weary of hearing that “GM doesn’t have any vehicles that people want” or that GM “doesn’t excite anyone” or doesn’t have any products that are “relevant.”
Well Bob, the people are tired of re-badged, rubber maid cheapo interior, zero resale value, incentive-ized marketing ploys. I remember reading a quote from the public release of the G5 announcement that used the words “stop-gap”. STOP-GAP?!?! You may as well make the marketing tag line “Buy a Pontiac G5 - stop-gap engineered to the lowest common denominator - because we think our customers are stupid”
Save your precious development investment dollars for a well thought out, low priced, rear-drive small Pontiac sedan and spare yourselves the inevitable ridicule of the auto press, scathing critique of the business writers and the eventual and continued distain of the American buying public.
BTW, if the G5 is just a Pursuit coupe, why in the heck will it take a year to get it launched? Its being produced now, save some cash a ship it NOW (no wait, forget I said that… no stop, please).
unnamed
If you want to prove something like reliability or performance you have to prove it by actual doings.
There is so much ad’s and studies, awards and so on going on that people are immune to them.
People want to see concrete things that are not imaginary.
Like reality-tv, people want reality-ads!
Like if you want to prove performance and handling, then you have to put car running around Nordschleife and make video from it with comparing laptimes.
Video would spread wildly around Internet just like that small Saab performance team video when they did few handling tricks with 9-3 that some didnt know was possible with fwd.
Time to get hands dirty with ad’s. Greatest ad’s are not made by computers geeks.
Justin
Lutz,
I agree with you 100%. I think there should definitely be more advertising on how GM vehicals stack up against the competition because I think the people dont know how well GM cars, trucks, and suvs do against for example toyota, honda or ford. I read an article on how well the 2007 Tahoe is selling, and I think that proves it right there. Also with a huge postive reaction torwards the Camaro Concept shows that GM can, does, and will continue to make good, reliable, vehicals that people want.
Gary Miller
Bob, I retired at the end of ‘98 as Relationship Marketing manager for GMC out of central office marketing, so I have some point of reference. GM needs to do more Corporate TV ads that show the breadth of the line-up.
You have no idea when you are away from Detroit how clueless people are about GM brands. Just yesterday someone was commenting in my STS and was shocked to hear GM made Cadillac. Go figure. Consider a montageof images of some of the hottest in the line up. Just have them appear for 1.5 secs. “To see more, visit any one of the GM dealers near you”.
My montage pics:
Corvette, Solstice, Sky, HHR, Cobalt SS, G6 Coupe, G6 Conv., CTS,
STS,
SRX,
Escalade, Tahoe,
Lucerne,
Impala,
Saab 9.3,
H3
(no GMCs because there really is no ID problem there).
Most people would be blown away that these are all from GM. Time to be bold, in your face and dramatic.
Name the spot “Don’t Blink”
Run a national contest to name all the models shown. Have regional drawings. To enter, people will have to watch more than once to catch all the models.
Anthony
I’ve been a dedicated and loyal G.M. customer since my new 1983
Z-28. My Grandfather (Ralph) retired from your Trenton plant sometime around 1980. They promptly loaded up the chevy and moved to Orlando, where they still keep up with their house well into their late eighties!
My grandpop was one of the few guys who put suggestions into your box for improving production. He made a part for seat tracks or for door handles. He said if the quota was 15,000 in 8 hours he would produce 22,000 in 4-1/2 hours.
The management admired his work ethics and his motivation
so much so that he was permitted to “walk about the shop” until his shift was over.
Many other employess did not like Ralph for this reason.
Like so many in government who do the least for the greatest amount of money and benefits.
If you had more guys like my grandpop you would be selling the finest automobiles in the world today and at profits that could sustain retirees living until 95.Did I mention that Grandpop also ran his own fence company at the same time? This man was a workaholic who still managed to have the greenest lawn in his neighborhood. You don’t have people trying to do beyond their abilities today in this country so you get medium quality, medium everything. Medium is great unless you line it up next to an entire workforce who lives to excel like my grandpop just to be able to look back and say this was mine!I did this with a team of others who tryed just as I did.
I have purchased new from the General a 1983 Z-28,1994 Z-28,1995 Z-28, 2002 Sierra,2003 Sierra,2000 Intrigue, 2002 Envoy,used I had a 1972 corvette, 1981 chevy van, pontiac astra or something?,1978 caprice, 1978 olds 88,the one thing I can truely say is 90 % of them needed to go into the shop far many more times than I could ever think possible.
A couple of years ago I was lucky enough to get vanity plates that read USA1…and my dream was to someday place them onto a Corvette Blue in color and zip all around showing my loyalty to the American worker. Unfortunatly my distast for taking the car into the shop outweighed my common sense to buying a toyota (6500 miles shop free) Now I have to listen to the shop owner where my oil changes are done yell about my USA1… tags on an import. I agree with him but I know why I did what I did, the tacoma is good on gas, its reliable, and its resale value will be greater than most others and I just feel that more pride and more Ralph went into it. Today I own a True Value Hardware Store and I sell Lawn & Garden products. I give it my all. I come from good stock who realize that nobody owes me anything, I have to earn what I get the hard way. I’ve been kicked enough by the hundreds of defects over the years up to the latest ones. Someday I would like to bank enough money for a Z-06 and slap the tags on it but for now practicality wins, tacoma for me and the Envoy for my wife, until 1500 miles from now we hit 75,000 miles and good bye extended warranty- good bye Envoy. Looking at Rav-4 (sorry)p.s.- my first blog.
p.s.s. I doubt you will publish this and thats fine just so you know I am waiting to check out the new line up of suv’s before I buy my wife a replacement. also understand that I’m sharing my purchase history with you and my current way of thinking so that you can improve your line because my heart is with General Motors not Toyota.
And if I do sound sincere (and I hope I do) would this be a good time to say please help me get those USA1 tags on a 2007 corvette!!!!!!!
Tony T.
Tim Geisler
Bob, I am releived to see this topic up here. Being at the dealership aspect I might have some points of view, expecially here on the west coast in the Los Angeles area. Everyone in this area knows its Toyota home, some dont even know Toyota is a japanese brand. Others refuse to accept GM back into their garage after bad experiances. My father being one of them is the most loyal toyota fans out there, let me tell you a bit of his sob story. He had a chevette i guess, and well there was something wrong with it, so he worked on it and worked on it, took it to the dealership they couldnt fix it. He was very unhappy. He then went to the junkyard, and the man there knew exactly the problem, and how to fix it. This pissed my dad off, and has yet to purchase another GM vehicle. This is one reason why vehicles like the cobalt, hhr, and aveo are so crucial to the brands recognition. these vehicles are to represent great value to people who can bearly manage a car payment, or are just starting out, either way they are extremely important people to maintain loyalty.
Personally I think GM’s biggest advantage that it has never lost, is eregonomics and vehicle satisfaction. one of the guys at the dealership has a 94 buick. and while it has the buick styling to it, its relitively big and boat like. he loves his car, and has no intentions of ever replacing it if he can help it. I’ve got two v8 firebirds that i never want to sell or trade in.
GM is in a bad possition in my eyes, people are saying hey, they are losing billions of dollars here and there, they cant make any good vehicles. I had a customer today that was interested in a used vehicle, and would not consider any domestic brand. Bob, you must have the marketing devision stare that sterotype right in the face and say were better… I’ve seen recently “head to head comparsons” or “If you havent checked out whats new you dont know chevy” but its not really doing it. Personally I think GM and Ford ought to focus on that perception together. because they are both in the same boat… Lutz it takes a while look at Cadillac, it resembles nothing of the late 90’s. people have already forgoten about those cadillacs(thankfully). but turning the perception of chevrolets image will be a long process and will be very expensive.
here is a great article and i appologize for putting it in here if you have already read it.
http://www.businessweek.com/autos/content/feb2006/bw20060210_595857.htm
GM must address what consumers are thinking. make the vehicles seem exciting, give them memorable comercials like the cobalt that needs to learn its place in the family.
GM needs to get into the car market, the GMT900 is dead on what it needed to be. the car market is the place where GM can make major improvements in terms of volume and perception. Most people know chevy trucks are the best in the industry, even my dad, the toyota loyalist. But to tell you the truth i have an 03 F350 in my driveway because although Chevys are better, they cost more for the same equipment(or at least that was the perception my dad had when he purchased the truck).
Bill Aston
You must somehow get more new customers into your stores. The buying experience must improve,across all brands.
Take a tip from LEXUS. Too many of your old showrooms are just that–OLD. Little Class. Even some of your high volumn Cadillac dealers are far below Lexus when ambiance and pleasant surroundings are concerned.
Good Luck!
Mark Stabingas
Two suggestions…..
Pricing….one reason why people may not appreciate the progress you have made is that an unbelievable proportion of your consumer messaging and advertising revolves around pricing, discounts, and rebates.
Dealership…fix the customer experience in the dealerships. The last GM product I bought was a GMC Yukon. I felt like I needed to take a shower after I was through speaking with the salesperson. The experience cheapens your product. The customer experience isn’t just the product itself, but every aspect of the interaction revolving around it. You can’t leave any out. Why can I go to a great restaurant with my wife, spend a couple hundred dollars and feel like I am treated like a king, but when I spend 30 or 40 thousand at a dealer, I feel like I have to keep my hand on my wallet?
Why/How did the Escalade change the soul of Cadillac? I’d start there if you are looking for answers…I am sure you already have.
Porter Littlefield
Bob,
I have always owned GM vehicles: Chevrolet cars and trucks,Corvettes and new Cadillac Eldorados. Currently own a 66 & 67 CDV.
Within my circle of friends it has always been GM, we are still loyal to the brand and consider it superior, at least our old Cadillacs we restore, GM drivetrains were always the best, not to mention the styling.
GM has been very slow to play off their strength of the past: quality, styling and performance.
Chevrolet needs to bring back a RWD car for law enforcement use. The last Caprice series was highly prized amongst law enforcement and needs to be brought back into production ASAP.
Get back to basics and do what GM does best, build full sized RWD cars.
The new GM website for the Cadillac V Series cars is very impressive, the Cadillac division has been revived accordingly, still need the big RWD sedan though.
Regards,
Porter (Cadillac LaSalle Club member)
Dan
Bob……..We have to utilize the largest numbered and most experienced salesmen and women in the country, our employees! Give them avenues to get the word out in their cities, their neighbourhoods. They are proud to be GM employees, let them sell the vehicles to the public with passion!
Gene
I’ve always believed a 5 year bumper-to-bumper warranty would make people take notice. If you make claims that they’re as reliable as anyone else’s cars but back them BETTER that will at least draw attention to the claim.
Plus, when you figure how much you guys were spending on incentives, putting in better warranties would’ve been money way better spent.
Guido
We bought 3 GM cars/trucks in the last 4 years, but as we moved to the US just 7 years ago we never had this “bad” times from GM in our mind, it was like a fresh start. The Suburban was just the right truck for us and when we saw the first HHR it was love at first sight. We just got a little upset to see the HHR with this red something year end sale as we bought during the so called value pricing time before that. So we will watch this time to see that this will not happen again with our new suburban. That is probably not in GM best interest but you guys have to stick to your promises. But there are things which I don’t understand: Why is there so little working together with your worldwide companies. Even the same platform will not hold the same engines (e.g. euro diesel engines will not fit in us spec cars). I think also there are way too many different engines out, looks like Nissan has just 2 or so, and they are selling just fine. Or gearboxes, new Tahoe comes with a 4 speed auto, well 4 speed was in the 1990s but mot 2007 model year, please! I know there is also a 6 speed but why is it not in all of them? Higher cost, but the volume for the new six would be higher and GMs image too, so it looks again like old tech. Too many dealerships with not enough volume, and therefore not enough money to do a good job. Look at Toyota they sell a lot of cars with less dealersips, but those are usually nice, well maintained and have a huge selection. All these different brands are also a problem but right now is not the right time to wotk at this front, just wait until the outlook is better but plan ahaed. Your e85 move is a good thing, I am looking for that fuel for almost 2 years now, but what about diesel engines? Your european diesel engines are among the best in class, but nothing here. The Tahoe is crying for one, not the heavy duty one, a light one for everybody (with dod and the light Saturn vue hybrid…I know that is probably too costly but some dreaming must be ok). Bring the new camaro and make safety a top priority. Tell in your advertising more about the good fuel economy of GM cars and the companie altogether, also the good JD Power results. You need good news, they are there but nobody knows and a lot of people still think the quality and reliabilty is low, and I can tell from my own experience that this is not true.
Dean Jones
Stop the glutton!
Is this rocket science or good business?
Saturn Vue Greenline to the rescue! Price it right and promote low emission. Folks are suddenly aware that driving an Escalade is no longer “fashionable”. And, what part of “class” has gold teeth?
I feel a hurricane coming…
PJ
One thing I know for sure is the old Saturn commercials were terrible. Please what ever you do pick it up alot with advertising the Saturn Sky, this hot little care deserves better than who ever came up with old Saturn commercials. Love the new Tahoe!
William Lanteigne
I’ll suggest to you an experiment: give your customers a choice between the rebates currently offered, or a serious bumper-to-bumper, transferable 10-year 100,000 mile warranty, WITH free oil changes and filter changes during the warranty period. If you want to continue to sell high-margin vehicles, they NEED the best warranty in the industry.
Marketing and Advertising:
Lose the Cadillac advertisement with the Mercedes sedans surrendering the dance floor to the Caddy; it’s embarassing, and it isn’t going to convince any Mercedes buyer to switch to a Cadillac.
Try assuming, in your marketing and advertising, that we all have at least a high school education- stop aiming your advertising dollars at the grade school level, it’s insulting. Try some “cerebral” approaches that stimulate thought and conversation- have staff drag out some old VW advertisements from the 1960s, they were excellent; use those to inspire your marketing efforts. You say the new GM products are better- Okay, explain to us exactly how they’re better- and in terms a bright high school senior would appreciate, not his kid brother. (If you have to, show us the old part, compare it to the new part and tell us how it’s better.) Expect some skepticism, because all too often, “new and improved” has meant more chrome, fins, different paint choices, but the same old tired mechanicals.
How to get MY attention? Seriously, I need a front-wheel-drive minivan that converts quickly into a pickup truck, that gets 30 mpg, hauls 5 passengers in minivan mode and 1,500 lbs of cargo in pickup mode. With the 100,000 mile warranty.
If you don’t build it, someone else will…
Brad
If you want to increase your market share, things have to change at dealerships. I know many people who would buy a GM product but won’t because of horrible past experiences at the dealerships sales and service departments. Friends who have purchased a Lexus say they are treated like royalty at the dealership, sales and service, and swear they would never do business with an American car company again.
gtluis
I think the perception that you don’t do enough to meet the demand for efficient automobiles during this recent oil spike has hurt you greatly. I point to the fact that your greater product cycle was set on releasing suv’s at this time while your green competitors, you know who I’m talking about, were releasing a strong lineup of efficient cars. Don’t let this bad mistep get you down. You must show your car product is just as strong right now as your suvs.
Oh, great job with the Tahoe! I mean I’m definitely the Gen X-type with a lust for the speed but that thing is executed well and it’s hot. Take this as a strong compliment but also know you still have other work to do like namely some of your cars. Also if you are going to platform share make sure too differentiate well, think Honda to Acura. The blogs are killing you on some of your lineup.
A good note as to how your image may have been tarnished worse was because you did not release some green hype like some certain hybrids, primarily the Toyota Prius, during this crunch period. If nothing else, you should have learned that your strategy to introduce this technology in trucks, while in a macro view more effective, in reality the Prius was timely and much better PR, awards ring a bell, and that’s that what will move perception. Another thing that brothers me is that a secular crowd sincerely believes that imports are just as American as you guys. I mean doesn’t total vehicle content and hours worked on from this country matter more then where the pieces were put together. I think there is oppurtunity there. I just thought to point to this out to you. Good luck and knock em dead!
georgemia
I do like the Solstice, though I wish it had a trunk. Most of all, I wish the dealer didn’t want $5,000 over list for limited availibility. That kind of game makes me shop elsewhere, and long term, those rip offs do not make for repeat customers.
gtjeff
GM does have perception problems, but there is no doubt their vehicle quality is today excellent. Bottom line is that your traditional advertising and marketing needs improving.
In the JD Power 2005 Initial Quality Awards both Buick and Cadillac brands finished higher than Honda and Toyota’s main brands. Does anyone know this? Why not bring out a series of ads which show the rankings and mention those competing brands you beat. Its time to take the gloves off. Tell people how and why your products are better than the imports.
Second, the company must change its strategy of being a follower and instead become a leader again. Vehicles like the Fiero, ZO6 and Avalanche would be examples of a company that is a leader, with the HHR and Solstice being late followers to the Pt Cruiser and Miata.
Third, Embrace your companies heritage instead of burying it. You have customers waiting like Pavlov’s dog for a bone in the form of a Grand National, Fiero, El Camino and 57 Belair. All unique, brand specific models which would have little competition. These models would fit with GM’s new strategy of offering unique vehicles. Instead we get a rebaged Cobalt as a G5. If you want to take on the compact imports, fiero would be the ticket since the car was the ultimate in customization with many different engine swaps and body styles possible. Dust off nameplates like these, than no one could say GM doesnt have what they want.
Think about it, when people go to a classic car show today, what are we going to look at? Mostly American made cars, not Japanese. You could regain many former customers with the right product mix. How would your Japanese competitors be able to answer a heritage inspired product with the exception of the Z car?
4th, Listen to the customer. All the emails which requested a heritage inspired GTO to start were ignored. The vast majority of Saturn buyers that feel plastic panels are a key product attribute also are ignored. Those loyal Buick buyers will think they are in the wrong showroom with the abscence of LeSabre, Century and Park Ave. A new Fiero would have made the Solstice demand look like small potato’s.
Lastly, take a look at the resumes on your website, I know of one person there who can think outside the box.
Tim Podgurski
I am a 23 year old car enthusiast. For the record, I drive a highly tuned (for autocross) 2000 Honda Civic, and I have the following problems with your line of vehicles:
I really want to love the Cobalt, but I am turned off by a number of things. For starters, there’s the obnoxiously garish rear wing spoiler. Offer it as an option, or design a new one that isn’t a blatant copy of the of the most tasteless of after-market rice-wings. its twist beam rear axle, especially in the SS. It’s an undeniable cost-cutting measure that doesn’t belong in a modern performance car. Even VW finally got rid of that horrid setup. You want to be competitive? There are Hondas out there WINNING car magazine comparisons with double wishbones out back. Even so, I could live with the 1960’s technology out back were it not for the following: I’m 6′3” tall, which is admitedly on the tall side, but I fit in a Civic comfortably. I do NOT, however, fit in your Cobalt (an American car!) when sitting in a proper, upright driving position… a MAJOR turnoff, to be sure, and a deal-breaker. To a lesser extent, I also resent having electric steering on a performance car (read: the SS). I don’t need to tell you that this is an important segment where street-cred is what it’s all about, and you don’t get it by copying out-dated Volkswagen componentry.
As for the Solstice, it does tip the scales a bit more than I’d prefer it would. Then there is the matter of that ungainly hump in the trunk which renders it essentially useless. Yes, I know, it’s a roadster, but still, c’mon… These aren’t deal-breakers, though. I still love the car, I still want one, and I’d still buy one over the new MX-5.
The redesigned Monte Carlo and Impala… what were you thinking? Honestly, they both look like jelly-bean cars from 1992. Completely plain and uninspiring in every way, the styling is so inoffensive that it offends me. This coupled with the fact that the “SS” versions both have small-block V8’s hanging over the WRONG axle! A front drive car with a V8 is something I will never, ever consider buying. Fix the styling and switch the drive wheels around, though, and I’ll love you for it.
The HHR? No amount of corporate spin will convince me or ANYONE that this isn’t a blatant PT Cruiser clone that’s about 5 years too late. What you forgot to do, though, is maximize the cute quotient, especially in that bulbous nose. The interior is also rather uninspiring, especially considering what you try to accomplish with the exterior styling. It’s a decent offering otherwise, I suppose, but it doesn’t get me exited.
The Malibu and its cousin the G6 are acceptable, if a bit of a bore to drive. The G6, specifically, since it is the performance variant can put up good decent numbers, but it does so with a fight. It lack the fluidity, that indefinable “x factor” that drivers have come to expect from the imports.
That’s all I can think of at the moment, but I think you get the general idea. I really want to see GM do better. You are definitely getting your act together, but when I buy your products, I don’t want to feel like I gave up something I could have gotten from an import brand just so I could be “patriotic.” You need to innovate; think ahead of the curve. Cars like the Corvette, the Solstice and the new Camaro come to mind… If your and your engineers accept nothing less than excellence from your products, then I will accept nothing less than a GM car in my driveway.
Rene Curry
1) Set up a free email service. Have it launch from the GM.com page. When it gets to the email page, have no advertisements and have the BEST uncluttered online email system available in the world. You just agreed to shell out big IT bucks, this should be a cakewalk to accomplish. Large screen, large buttons, easy to use, large storage. Better than Yahoo, Google, and the lot.
Do not sell their email address to anyone, make it the most spam free, secure, advertisement free email available on the internet. The only catch is that you will be allowed to enter a few lines of text at the bottom of each email sent along with a link. The message you add should change regularly. It must be kept very short so it is to the point, it gets read, and it’s not annoying. I would limit it to one line, you would read that regularly. If it were any longer it would be read about as much as user agreements are read! Not only will the user read it, but so will the person who receives it and who ever it is passed on to. Have the links to back up your message. (preferably a non-GM site) Example a link to JD Powers to back a statement.
The GM faithful are a large enough group to get it started. Then if other non-GM users check out how good the email system is they will join.
2) Do the same thing in China & other countries. Add a translator function to the email system.
3) Kiosk (spelling?)computer stations located at key venues where people feel good. Malls, amusement parks, convention center, you get the drift. Large screens so people standing around the user can see too. It can get the message out, show models, pricing, and how to buy. Can you say value pricing & comparison shopping? At the same station allow the user to send email. Of course it would have a GM message!
Hey Mom, I’m at Disneyworld! You can target your audience, and income range by the venue.
Best Regards from China,
Rene
Devilish
How to change ppl’s perception, how to change an image stuck to their mind !? A question I keep on asking my self, though I think the only way to do that is a series of Shock Waves ! Something drastic ! a Publicity Stunt maybe ! the questions remains, how to do the unthinkable ! ummmm how about testimonies ! oh yeah I noticed u already did that with a couple of Cadillac PR ads in some of the auto magazines.
ummmmm what I noticed in GM is the supermarket approach ! Managing the company as if its another WallMart ! For God sake u got brands ! I think u guys need to split up ! yeah ! According to the automotive figures, GM is the No.1 producer of automobiles worldwide ! However, ur brands r not very well up on the scale in terms of brand equity, n brand awareness. ummmmm I think concentration on one brand at a time would be the key element !
Sorry Bob, but lets take u for an example ! One day u talk about a Chevy, the other day about a Saturn, the next day about a Pontiac !? u see, u r lost between the brands ur self ! Ok, Ok, Ok, so u r the cooperate guy ! known better to be Mr.GM, coz ppl find it difficult to refer to u associated with a particular brand ! Wasn’t it easier on in the olden days, when u were known as the Chrysler man !? yup, back then ppl associated u with one brand ! It was easier for recall !? u know its all psychological.
After saying the above, n if GM is still gona play by the supermarket approach, meaning a company for all ur needs, but not known for sure for what exactly it got, then I suggest u associate ur brands with celebrities. Yeah, energize ur brands with a celebrity spokes person who is gona represent the brand wherever they r. This approach will kinda boots the brand youthful image. n am saying u need to associate with young kinda type of celebrities, or with the celebrities that ur target segment/s psychographic r admiring. Am sure ur some of ur surveys indicated what ur target segment/s r watching or hearing in terms of movies, sitcoms, n music.
Good luck !
Ethel O
Dear Bob,
I can assure you that you definitely will hear from me again on this commentary, but by my usual snail mail route.
I like this blog.
I hope it generates a vast response that contains a lot of useful information for you and other GM executives to ponder.
I am looking forward to reading all the comments you receive here.
Keep that positive momentum going and you’ll be hearing from me again soon.
Hang in there!
Ethel O
getalifeagain
Take your finest cars to the streets (literally) and let people drive them. They’ll see GM is right with the best.
John
http://www.edmunds.com/insideline/do/News/articleId=109327
No Camaro until 2010? REALLY?
I don’t think the grass roots level is going to be all that excited about getting THAT message.
Seriously guys, how do you walk to your cars and drive to work in the morning?
Other people would need wheel-chairs and hand controls after shooting themselves in the feet as regularly as you all do.
Uggh.
Akex
I suggest start by focusing on a particular demographic group. For instance, focus on college students in college campuses. Manyof the parents of these students (i.e. the baby boomer generation) drive imports. So, these student probably never been driven around in a Chevrolet. With a creative awareness campaign, you can at least put certain GM products in their radar screen. Once you get them in the dealership, have sales people ready who can talk smartly about your products. Can your sales person explain the working and benefit of stability control feature? In other words, make the customer feel that driving one of your products is a smart choice.
One other suggestion is with regards to the products. You have probably noticed that some import car companies have created an aura around their car introductions that is treated in the media (and among public) like the release a new movie by a famous director. I have not seen such excitement from the GM introductions. Partly it is because there is little name recognition for domestic car models due to frequent model line name changes. One of the reasons Corvette has been so popular (and well recognized name) is because GM has kept the line alive and improved the product for many years. Why not do the same thing with mainstream cars too…
Jake Smith
Mr. Lutz
I know you will not see this, but I write anyway for anyone who will read. I am very excited about GM’s future. GM is begining to change its approach and is starting to compete, not with slogans, but with numbers. The Cobalt SS and Corvette Z06 have been steps in the right direction. Both of these cars have gotten a large amount of attention over their performance, value, and foreward thinking. Both were introduced, not only in new body styles, but also with the performance to back up that style. Your argument that perception from the public must be changed is true. In order to do this, upgrades should not be invested in models which have already developed a stigma from the public, such as ss versions of the Monte Carlo and the Malibu. The Pontiac solstice is truly a beautiful car, But since its introduction the only articles I have read have been “yeah it looks nice, but its still outperformed by the Miata”. The GXP version Is a great idea, but this is after many Americans have made up their minds that the solstice is an underperformer. Performance and looks are the only two factors that will keep GM afloat until time passes and the public realizes they are also reliable cars. Designs and Names which have no roots in GM’s past allow the public to have a completely clean slate with every new model’s introduction. Grass roots programs are always good, they allow cars to be shown in a less commercial environment. When Honda introduced the new Civic Si, it didn’t cover tv screens with its image, it gave several models to small, independent aftermarket businesses and allowed them to unveil them at SEMA. This approach worked beautifully, it showed the public the versatility of the civic, and also showed it in a way that did not reek of marketing. Yes, GM also unveiled many exciting models at sema, but all of them with a gray drap studio backdrop. When I looked at those cars, I saw great styling, but I couldn’t imagine them on the open road, that studio backdrop separated them from the real world. I want to see GM succeed and once again be known for its winning product. I want to see new models introduced not only with the style they need to be seen, but the performance to be heard before a stigma is made against another new GM product. In conclusion, when a new model is released, don’t wait to release it with the performance it needs to be seen and heard as a challenger to all other models in its class; exciting designs will keep GM going until a reputation of reliability can be restored, reliability is what separates the GM from the market share of which its foreign cometitors have a iron grip.
Jake Smith
21 years old
jgwsmith@sbcglobal.net
Scott
Sure, you’ve got some great cars there. The problem is how many people are truly in the market for a roadster, sports car, or Hummer? The cars that really need to be winning awards are the Impala, Cobalt, G6, and Lacrosse. Sure, you sell a lot of them, but are those owners as thrilled about their vehicles as the Corvette owners? They should be, but they’re obviously not, or you wouldn’t be writing this post. They need to be more than just a capable car. They need to be GREAT cars, that people will tell their friends about, and car magazines will rave about.
Also, those awards may get you five minutes of good press, but since most consumers have never heard of Intellichoice or even Autobytel, they don’t hold nearly as much weight as ‘Motor Trend Car of the Year.’
For what it’s worth, I’ve seen the Sky on the road and love it even more in person then i did when i first saw the pics, and i love the looks of the concept Aura too. And i never thought i would lust after a Buick until i saw the Enclave concept. I think Autoextremist put it best - ‘it just might save the division, it’s that good.’ And the Camaro, well… cast a vote for ‘build it’.
You’ve got some great ideas, and some great cars, but you need to spread it to every line and every car you offer before that negativity is going to go away.
Jason Zebersky
Four words
SHERYL CROW CHEVY SHOW
More manual trasmisions
in G6 & Malibu 4cyl
in Chevy & GMC trucks and SUV’s.
Stick shift=fun to drive
GM needs a left-wing spoksperson, media teem.
GM=UAW=20th century american dream= Diversity, Progress ,New Deal,Nationalised Healthcare. GM=The Humanists alternitive to Materialistic ASIAN QUALITY
Mr Lutz, the football captian validictorians of today drive Honda’s because their pairents believe in them like religion, GM is now the outcast the paria, make lemonade and revel in it Sell to the nerds and the punks, who might someday be successfull enough to buy Cadillacs, Corvettes, push the limits of taste: do adverts that lampoon the competition as eubiquitus and booring, sell “asian domanance” as a fad already too ripe to be cool annymore, much less last.
Oh yeah……….and the CROW SHOW, GM needs to be linked to a face almost everybody loves.
The ghost of Willam Durant is counting on us not to wreck his beautifull machine…….make damn sure it dos’nt happen on your watch.
Ted krygier
“…get our message directly to the people on a grass roots level. This blog is one example – but we need more avenues, and bigger ideas.”
Thats easy. Work with enthusiast websites more closely. Might I suggest a partnership with CheersAndGears.com
Mr. Langlitz (Germany)
Dear Mr. Lutz,
I think the problem is, GM still has to fight some prejudice, which came up during recent years. In my opinion the situation is similar to Opel here in Germany. Also here people did claim, Opel wouldn’t offer the models, which the market demands and the quality of the vehicles wouldn’t meet the requirements. In the meanwhile Opel-vehicles start to get a much better reputation at mass-media again and perform well at quality-surveys. At the “Qualitaetsbericht 2006″ of the popular “Auto Bild”-carmagazine Opel achieved the highest ranking of any German manufacturer. But nevertheless some prejudice still remains. In my opinion that’s hard to fight, because it has to do with emotions. I believe you only could try to start or intensify campaigns, which are able to demonstrate the advantage of GM (or Opel)-vehicles against the competition. Furthermore I have to say, mass-media also had not always been fair, at least here in Germany. For example, if there was a serious problem with a Volkswagen, you almost couldn’t read anything about it. But if there was any little mistake regarding an Opel, they immediately made an huge story about it. To increase the European sales of your Cadillac-models, Corvette and Chevy-SUVs I’d like to recommend to fight against the prejudice about their gas-consumption. I think almost nobody in Europe knows so far, for example, that the Corvette is really a fuel-efficient sportscars in relation to its powerful engines. This I already wrote to your European representatives.
I’d like to recommend the following. Find a channel to gather information continiously about what your customers love or like to get improved at your products, no matter you are going to use a simple questionaire or a website. The earlier you can recognize certain tendencies, the earlier you are able to react on possible problems, finally also in order to avoid frustrated customers going to the competitors.
Ryan
You guys can’t seem to put all the pieces together. Let me give you some examples:
1. New Buick sedan is the best looking American sedan I’ve seen in, well, ever. You clearly took inspiration from BMW — that’s great. The car inspired me to visit the Buick website — I’m 34 and drive an Audi — but I thought, wow, this is a car I’d actually drive. But when I check the car online, I’m disappointed but not surprised that you built this sexy sedan as an automatic only. No stick. No tiptronic. If you want to compete against the leaders, you have to offer cars that genuinely have the ability to eat your competition’s lunch. Why aren’t any Saab sedans AWD? That’s insane. It’s a natural.
I find myself regularly intrigued by the aesthetics of GM vehicles, but consistently disappointed at the lack of attention to detail. The cars FEEL mass produced, not intimate, special, or unique. I believe that the potential for WOM, grass roots positive PR for GM is possible, but it’s going to be a result of paying attention to the small stuff. Thoughtful design that makes mass produced feel like something that was built just for me and my needs.
Tim
Bob,
You need to do much better in the consumer report survey. I understand that it’s a bell curve so average today is much better than average 5 years ago, but most of my non carnut friends only see the better than average reliablity for honda and toyota and the average rating for GM products. Consumer reports is the Bible for people who see a car like an appliance,which is most people, and you really must do better in their survey.
Tim
Marc McClelland
Bob,
I respect you because you were a Marine and your integrity is without question! But do you have blinders on? Did you read James Healey’s review of the Torrent in USA Today this morning? This car stinks and it’s clear that Pontiac just rebadged the Equinox. GM said they wouldn’t do that and low and behold you did it again. Are you ever going to learn or will you’re slipping market share finally knock you over the head. I believe in you Mr. Lutz, but not GM!
P.S. a four speed transmission in your new Lucerne - come on!!
Arizona Slim
Here’s some of the problems I see with changing people’s perceptions:
- Lousy advertising for the mainstream brands.
- Bloated dealer network, causing endless cheesy TV and newspaper ads where they try to outdeal each other. Also, the dealerships in general badly need to be updated.
- Some of your more affordable vehicles don’t measure up to the competition. Cobalt, Colorado, CSVs, I’m looking in your direction. Aveo is decent, but what’s with the gas mileage?
- The “artifically high MSRP + Rebates” strategy hurt you more than you might realize.
- Maybe a little style in the high volume sedans. Trying to out-Camry the Camry is a tough sell.
Pierre Roberge
Bob,
IMHO, it takes time. I assume you may not want to hear this but give it time. GM has been producing subpar vehicles for a long time and that has been ingrained in people’s mind. It’s going to take a little more than word of mouth from real owners that really like their cars and tell their friends.
I don’t think any marketing promotion/communication (viral or not) will change that.
Even when a man stops cheating his wife in one day, it takes a long time for her to trust him again. He needs to earn that trust. Whether his friends tell her how much the husband changed, she does not care about words, she cares about facts and more importantly, she needs to experience the change herself.
What also might help GM is that each GM make needs to have a personality to get at a different market segment (I am not talking about age segments at all) like Honda, Toyota and Mazda do. Pontiac is supposed to be for people who like driving so besides changing the appearance of Pontiac’s car, change how they feel when you drive them. Use a different suspension system, different steering and so on.
Also, japanese car makers have an attention to detail that american cars don’t have yet. My 85 Cressida could take a full 4-liter can of winshield wiper fluid, I did not have to carry ahy leftover! It would shut down the headlights when I left them on! And it was impossible for me to lock myself out of the car when the key was in the ignition. If I would try to lock the doors, they would unlock automatically. That car was full of little attention and I could feel that Toyota really cared about me!!!!!! How powerful is that in terms of branding! Do people feel this way about GM cars?
In summary, pay attention to details, make each brand cater to different customer segments not based on their age but based on their lifestyle and attitudes and be patient.
Good luck!
Scott
Bob
there are many perception problems with GM.The JD Power 90 day initial quality is a joke anything will last 90 days.Get in a 3 year old Grand Prix and a 3 year old Camry and see which one is tighter,It will be the Camry.Also the UAW is for me a huge ball and chain,I will nnever purchase a vehicle from a company that is funding a welfare state jobs bank program.That said I want GM to do well but it will take time to put the discounting and bad rep behind you and build cars young people want to drive that reflects an upscale cool image
Tom
I can only share my experience with you - my recommendations are at the end, but this story will provide the context.
Through an in-law I am eligible for the GM employee discount.
I’ve always preferred European cars, both for their driving dynamics and safety, so leased a 2000 SAAB 9-5 (albeit with some trepidation, as I knew that traditionally SAAB quality was inconsistent … one could be bulletproof while another would nickel and dime you to death).
The car was wonderful and exceeded my expectations, and I recall thinking that perhaps GM quality is improving SAAB, and so is improving overall.
My wife then leased a 2002 SAAB 9-5, such was our satisfaction.
In 2003 I turned in my 9-5 and leased a SAAB 9-3. I was immediately disappointed with the sound quality of the stereo and, upon opening the trunk, discovered that the cutouts for full sized rear-deck speakers contained only what appear to be clock-radio sized speakers.
I wrote a letter to SAAB, and was told in no uncertain terms that GM/SAAB had no intention of rectifying the stereo situation. Now locked into a three year lease, I’ve since left the radio turned off rather than subject myself to the terrible sound quality. (I’m no “audiophile” but even the stereo in a sh**box Cavalier I was once given as a loaner put the 9-3’s to shame).
In less than 10,000 miles numerous - and major - squeeks and rattles began appearing, most annoyingly one in the B-pillar airbag area that constantly creaks. The dealer was / is unable to fix any of them, and they are that much more annoying since there is no stereo to help “drown them out.”
There have been numerous recalls.
The drivers window regulator has failed, and other parts (at only 36,000 miles appear on the cusp of …)
Knowing that the 9-3 is largely a glorified Malibu, I’ve concluded that while the 9-5 was a great car, it was only so because it was designed BEFORE GM took full control of SAAB, whereas the 9-3 reflects the bean-counter corner-cutting for which GM is notorious.
If SAAB had remedied the stereo, I might have rationalized the rest as “first year bugs.” (although that should no longer occur either - GM is also notorious for having its first and second year buyers serve as the final development engineers / guinea pigs).
As a car fan I read the magazines, and so am well aware that future SAAB’s are going to essentially be badge-engineered Opels. Gee, what an exciting and confidence-inspiring prospect that is … NOT!
So, when the lease is up on this 9-3 I’m foregoing the GM Family discount and moving on.
Through poor product quality, and refusal to stand behind you product and remedy what clearly was a grossly inadequate design for its price range (the stereo), you’ve managed to validate the negative perception I’ve had of GM since the early 1970’s (I had friends who had the misfortune of purchasing Vegas and X-cars).
So my word-of-mouth regarding GM is negative - you could have kept me after the 9-5’s, but you blew me out the door.
So if GM wants to “come back” my advice to you is:
1) Start making class-leading products;
2) Respect brand integrity, e.g., no 9-7’s or 9-2’s (didn’t you guys learn ANYTHING after from the Cimmaron???);
3) Those products must be “right” from day one, no customer should have to serve as a guinea pig to work the bugs out;
4) If something is not as it should be - such as the 9-3 stereo - stand behind the product and make it right.
While it wouldn’t occur to a beancounter - can you imagine the reaction of a customer who discovers that his 30k car has clock-radio speakers? The first reaction is: “they’ve screwed me.” The second reaction is: “Where else have they cut-corners that I haven’t discovered yet?” And the third reaction is: “This doesn’t bode well for the long-term reliability or longevity of the vehicle.”
The trust of, and confidence in, the vehicle is gone, as it is with the manufacturer of the vehicle. Instead, one feels that the manufacturer has played a game of “gotcha” with the consumer.
The Japanese have given us quality alternatives to “gotcha” …
JR
It’s hard to know where to start. As much as I love GM it usually seems we just don’t go far enough. We doen’t capatalize on our successes. Just take the Aveo for instance, this company has several more powerful and fuel efficient engines but we use an old design that has poor efficiency. The competition is now coming out with similar cars that are far more effecient and often more powerful so we will lose the lead we established as fast as we got it. We know the public is complaining about our OHV engines(unfairly), we have good OHC engine both here and in Europe but we don’t offer them. Why have we hot offered diesel engines in at least a few of our vehicles? The HHR would be a very good candidate(I’d buy one!)We can’t seem to come up with a hit on our bread and butter cars. We build great cars but we need a big seller like a Camry. One of the biggest complaints I get is a poor dealership experience. Why don’t we get rid of those that perform poorly ( we have too many anyway)There are a lot of signs of improvement but our marketing and ads don’t reflect it, we have to shout out to the world that we are in the game and plan on winning! It usually takes GM a few years to get a new model right, like engine options etc. By that time the public is ready to move on. Why is it that the competition can come out with a new model with more than one or two engine options and not us. Why in gods earth do we have to wait until 2010 for the new Camaro, by that time the competition will have already leapfroged us.There are several more Bob but I think you will get the point. Those of us who love GM are very frustrated and find it harder to defend our company all the time. I don’t want to come off too negative because I still bleed GM blue but we are waiting for action not more words!
David Hoff
Dear Mr Lutz,
What do I think? For starters, I had been considering an Accord, Civic, Camry, or Corolla to replace my 1990 Suburban, which I have owned for 16 years. Why - When I began to explore vehicles to replace my truck I thought about fuel efficiency, which made me think Honda/Toyota. When I think of fuel efficiency, I don’t think of GM. However after walking through the Chevrolet, while waiting to pickup my truck, I spied the Impala, which rates at 31 on the HWY with the 3.5L engine. Also looking in the Mar 06 Consumer Reports gave the Impala its best buy recommendation. My only gripe with the Impala is that you can only get the bench seats in leather if you get the bigger engine with less economy. That combination makes no sense to me.
How to help you with the image question? How about building vehicles over 20 to 30 years that consistently get red dots in Consumer Reports? My coworker used to sell Mazadas and he would sell folks with Consumer Reports. It would be a deal clincher. People trust Consumer Reports. Ten to 15 years ago, when you would open Consumer Reports, Toyota/Honda had all its vehicles with mostly red dots while GM had mainly white or black dots. When entire pages for Honda/Toyota are covered in mainly red, that impression stays with you. What you should be aiming for is every GM vehicle to have all red dots.
I also think that GM is spread too thinly over too many nameplates. Honda and Toyota cover the entire auto/truck spectrum with basically one division. My Suburban is a GMC. Why do Suburbans come from both Chevrolet and GMC? Putting your resources into fewer nameplates would mean more research to improve what you already have. Which would help your cause in Consumer Reports.
You should also quit screwing around with new models. Honda and Toyota have continually improved their Civic/Corolla for over 30 years. There should be some basic offerings like Civic/Corolla/Accord/Camary that are staples and are continuesley improved which should reflect red dots in Consumer Reports. Your Chevy 1500 pickup is around every year and always is improved, however you jumped around from Chevette to Cavalier to Cobalt. If you had just stayed with Cavalier and improved it every 3 years, it would be much better, but you don’t. Same with the Malibu. The nameplate comes and goes. Pick a vehicle and make it the best and continue improving it every 3 years until it has all red dots.
How about trying to be the best at fuel economy for each vehicle? Make the best car with the best options and then tout it also the best at fuel efficiency! If someone wants more power - then offer the car with an optional engine.
Finally, when can the Impala be ordered with the leather bench seat in the LT model and the 3.5L engine? I really want the bench seat in leather, but I don’t want the 3.9L engine. Having put all the miles I have on my Suburban, I really want to spend less at the pump.
Just my thoughts. Hope this helps.
Dave
Joe Gakenheimer
The educated people of middle to upper to the rich regard American made products, in general, as non prestige low class products. Those who pretned to be in the same demographic, live the same way. When I say class I don’t mean quality, I mean social class. I work for the government and besides the government vehicles, there are more Toyotas than any other brand; hands down. I see all of these Corollas and think, WOW, what a plain bland car that will be lucky to make it 10 years in the midwest. So obviously if the consumer is buying a bland and so so vehicle, they just aren’t convinced enough.
I like what I have read about GM moving towards informational and emotional advertising. Like comparing the vehicles, I would make sure that everyone knows who is the best. Michael Jordan approach was, if he isn’t the best, he is going to be at all costs. He was a winner just like the Vette and Solstice are today. Take that mentality on every darn product, then you will win most battles and hurt the competition when they least expect it. As for emotional advertising, I would make sure to remind people how long you’ve been here, who you help build the country, how many retirees you take care of, and how many vehicles you build here, and how little your competition does.
Now go get’em.
Victor
Perceptions:
Japanese cars = quality
German cars = performance
American cars = ?
Even if in reality GM has caught up in terms of quality and performance, consumer consideration can be at a more abstract level than GM, it can be a perception that American automakers haven’t excelled at anything in particular (again, in terms of perception).
Cadillac and Saturn have the most potential to get back to their roots and do something (luxury and affordability, respectively) better than anyone else.
Chris C
Bob, I’ve commented many times on this blog before and I’m delighted that you so frequently approach the public with issues regarding GM. A couple of points for GM to gain image points with the public, don’t lose 8.x billion dollars in a quarter. I watch CNBC daily, and nearly every day there is a clip on GM losing money, Delphi bailout theories, problems with the UAW, etc. If you guys got your financial house in order, that is the first step. Second, while many people want exciting enthusiast-type products to enhance their image, 90% hate going to dealerships and hate repairing cars. Many GM (and other) dealerships have bad reputations and they are mostly deserved. Up the warantees so the average person doesn’t have to worry about their vehicle. They get scared at the mention of something like ‘radiator’ or ‘fan belt’. Most people don’t even change their oil when they should. In summary, be hard on your dealers, many of them are crooked, and up the warantees so people don’t have to worry about making repairs on something they don’t really understand.
David Hoff
Dear Bob,
Here is an easy one. How about getting your dealers to advertise via local doctor/dental offices. People sit around and will read what ever is sitting around in the waiting room. How about paying doctors/dentsits to allow your car brochures into their waiting rooms? Maybe try it out in a few markets and test it. I know i read what ever is sitting around.
Dave
Steve M
While all of these voices are crying out for radical and immediate change, I implore you:
Pick a strategy and stay the course. Stop changing your mind every 30 days when you don’t immediately get back to 30% market share.
You’re doing the right thing to address consideration “Don’t believe us? See for yourself at…”
Now give it a chance to work!
Augustine
Funny that GM has no remarkable mainstream car… Meanwhile, Honda, Toyota and Nissan are eating your market share away.
Burying the head in the sand won’t help GM.
David
It’s great to see that GM is getting recoginition on some great products (albeit low volume two seaters that most of us will never buy). However, since GM is the largest automaker in the world (at least for another year or two), why doesn’t GM cover all market segments better? The minivan segment was created 22 years ago and GM still does not have a serious entry. How can Kia afford to develop an all new van that can really compete with Chrysler/Honda/Toyota and not GM? While it is a notable improvement from the previous version, does the Impala really have a chance of overtaking the Camry and Accord market domination? What is GM’s answer to Scion, Honda’s new Civics, Ford 500 and Fusion, Chrylser 300, all of those new small pickup trucks, RAV4, etc.
My GM Card points are getting dusty while waiting.
Thanks for listening.
scottz
It’s been said before but bears repeating. If your quality is so good and you really want to stand behind your vehicles, increase the warranty to AT LEAST 5yr/50k miles across the board. That’s the only way you’re going to win back those customers that had a bad experience with GM products and declared “I’ll never buy another GM product”.
Unless your quality initiatives are only focused on initial quality and you know that longer warranties would kill you in the long run…
Jay
You need to sell only excellent cars. I mean REALLY excellent in every way… Consumers have so many choices available to them, that they really have no reason to compromise anything. Why should people settle for bland styling if they could have beautiful styling? Yes, you have some beautiful vehicles, and they generate a lot of attention, but these represent the minority of your products. The Cobalt, the Impala, the G6… visually, these cars put people to sleep. It’s ok to be conservative, but only if your attention to detail is incredible… only if every line is perfect, and every seam meaningful. You can only be conservative if your willing to be perfect. I’d prefer to see you strive for perfection, as well as passionate design. The Solstice, the SSR, the Corvette, these are passionate designs. Most of your products are not. Why would you give us anything less? Do you not respect us? Someone else said it, but it’s a good point “You can’t out Camry a Camry. Leave bland jellybean sedans to Toyota, they apparently can get away with it. Be proudly American with your design, but also be tasteful. Look at the 300C. Proud, passionate, tasteful, unmistakably American. Now look at your Impala, G6 or Monte Carlo. You should be embarrased. Also, all of your products need to have a premium feel. It’s been stated that Kia and Hyundai are bringing up the low end… your products need excellent interiors if you want to be above them. Nobody wants hard plastic, bland grey, (We also don’t want fake chrome or aluminum. real metal or nothing please.) We want inspired design. You shouldn’t have to be rich to surround yourself with beautiful, inspired design. I should be able to buy a GM product and feel impressed by the level of detail, not disappointed by the lack of inspiration. VW is not a premium brand, but they have managed a premium feel. Why can’t you do that?
There are too many choices, Bob. A car is an important purchase. People want to feel good about it, and people’s cars should make them feel great.
Don’t give us mediocre. We will ignore it.
Toyota Owner
Bob,
I think your questions about getting the word out are excellent–but WAY premature. With a few exceptions (Solstice, Hummers, Vette, some Caddys, maybe some of the SUVs), GM’s products are STILL not good enough to be worrying about how to get the word out. Where your products ARE the best in the world (such as those products mentioned above), your sales are fine or even excellent.
Even though I’ve bought import brands primarily ever since I started driving in the mid-80s, I’ve ALWAYS tested the comparable GM products. But the GMs are rarely good enough (we’ve bought only one–a ‘98 Malibu, when I realized it was a solid, and larger, if boring, car that was cheaper than the Proteges and Civics that we had been intending to buy).
It’s hard to get me to believe ANYTHING GM says when you introduce products as being wonderful, and they are NOT. For instance, look at your new minivans that are at least 5 years behind the competition. Why even bother to offer them at all? Are you actually making money on your minivans? I doubt it. Be best of class, or don’t bother. And CERTAINLY don’t hype them as being good!
And I find it objectionable when you badge-engineer Chevys and stick them into the Pontiac division. That hasn’t worked in decades! You start building great momentum with the Solstice, and then try to wreck it with the Torrent and warmed-over Cobalts. Why SHOULD I talk up the Pontiacs to my friends, unless they actually NEED a small convertible? Worse, you end up spending marketing dollars promoting misguided Pontiacs when you SHOULD be spending that money on the ACTUAL Equinox or Cobalt, or putting that money into the Chevy product itself.
I know you are losing a ton of money right now. But unfortunately, I think you need to spend MORE in order to turn around the company. I was appalled at the rental-car fabric in the new Malibu (as well as that TERRIBLE steering)–those shouldn’t even be in rental cars! SPEND an extra $1000 or $2000 per car and make them feel like they should be competing with vehicles twice the price. Yes, you may lose some money on it–there’s no way to recoup that money in the short term until people realize it’s a great product. But when someone rents one of them on a trip, or borrows a neighbor’s car for the afternoon, and then realizes “WOW! This vehicle is great!”–that’s when they tell everyone in sight that they got excited by the car you made.
(Incidentally, my sister, who’s NOT a car person, ALSO *independently* noticed how cheap the interior of the Malibu felt. So she bought a Mazda 6–which I hardly see as her ideal car. Her ideal car *IS* a Malibu, IF you’d have spent the $25 necessary to make the interior and fabric a little nicer…and she didn’t even notice how bad the steering was.)
But above all, before you worry about getting customers who aren’t considering you back into your showrooms, you should be worrying about getting people like me–I have ALWAYS compared multiple GMs whenever I’ve bought, yet the two past vehicles I’ve bought are NOT from you, and I’ve only bought 1 GM–ever. With 8 million divisions to target exactly whatever I might want each time I buy, you need to be winning me over 80% of the time before I’d consider recommending your products to the world.
And please stop blaming the “left and right coast media.” They are only parrotting what they hear from the streets. When your Malibu or G6 or Aura is capable of clearly beating a Camry, when your Lucerne is capable of bettering an Avalon, or when your Cobalt is capable of beating the pants off a Civic (and NONE of them can–SORRY, but you not “there” yet)–the media WILL turn around. And you’ll be able to charge a premium price. So spend the money it will take.
I’m sorry if this is stinging. But I, too, as an American, want you to succeed, or I wouldn’t even be reading this blog. I don’t WANT to be buying another Toyota ever again, but I will if I need to. PLEASE make the necessary investments, no matter WHAT Wall Street says….
Andy
Clearly, GM’s management is frustrated about the public’s perception of its products.
Put a 10 year / 100K mile warranty on every car like Hyundai did.
No amount of talking can beat a confident guarantee.
Tim Geisler
Your problem Mr. Lutz, is Consumer reports and J.D. Power & Associates.
Both have unscientific data. People will or wont beleive the ratings they suggest because, it is just submitted by the customers, and how do you know all the customers are being heard.
I’ve never rated either of my firebirds, and would i rate them good or bad, my first firebird was a problem child but i still love it like a first child. but realistically if i had the money to have it serviced correctly it wouldnt have been a problem child, so is the problem the vehicle or the owner? soo… my dad swears by Consumer, and consumer rarely gives anyone but toyota and honda a recomended check.
I will also go with warrantees, at the dealership we are told to preach about long life components, irridum tipped spark plugs, timing chains, cevlar belts, low resistance wires, etc. but thats fine and dandy but the customer wont accually have the car for 100k miles likely, i work at the dealer and i see them get traded in more then that. But BOB WE HAVE THE WORST WARRENTY IN THE INDUSTRY!!! perhaps i should reiderate the word WORST. that is my least favorite objection at the dealership, how long is the warranty 36k miles 36 months… while toyota has 60k powertrain and hyundai has 100k and 10 year powertrain…
GM step it up, be the car manufacture that makes the best cars, and these warrantees will show you what area your cars still need to improve upon.
BOB, also take notice as to how press gets handled. If Toyota has a recall, somehow they cover it up and it gets very minimal exposure. when GM or Ford gets a recall it gets front page news and everyone wants to chuckle about how the domestic auto manufactures are a bunch of idiots who cant do anything. thats right bob people call you an idiot. how do you like that? And why do they think the Domestic automanufactures are incompetent… this is your question, and every individual has their reasons. but those reasons need to be addressed bob publicly before most people would allow these cars into their driveway again.
Martin
The products ARE competitive, for the most part, BUT products are NOT the whole story.
Are your dealerships concerned with ‘closing sales’, or ‘building long-term relationships’ with your customers? It’s hard to have a long-term view, when you’re only concerned with this month’s sales numbers.
Uninformed, untrained sales staff, high-pressure sales managers and pushy F&I people will kill a deal faster than you can say “$5,000 REBATE.”
I was literally ready to sign the check at one dealership when an unscruplous F&I guy tried to slip an unwanted $250 window ‘ETCH’ into the sales contract without telling me. I walked. The owner chased me to the parking lot. I drove off. The sales manager called back the next day, offering the car at $500.00 less.
They completely misunderstood: It wasn’t EVER about the price. It WAS and IS about the way I was treated the first time.
I purchased the same brand vehicle from another dealership 75 miles from home because THAT salesperson knew his products, answered my concerns, and SOLD me the vehicle.
Edward
Mr. Lutz,
As long as the Corolla and Civic get better gas mileage than smaller Aveos and Cobalts, you will still be in a bad position.
Its not enough to improve. You have to be the best. Unfortunately for you, you are still last in Sedans and small car segment.
Why does GM not have a small 1.8 litre engine to give Cobalt 40mpg. Like corolla and civic? Your base engines should at least be better in economy than imports. You can sacrifice horsepower for this. The horsepower at all cost attitudes is what ails you and Ford.
Please consider this. Until you can say we have the most fuel efficient cars on the road…and a campaign that say, ‘better mileage than Yaris and Corolla’ you will not be class leaders especially in the economy car section (under $20K segment) you will not win over any import compact buyers.
And you will be perceived as a gas guzzling company. You need to change that.
Russ
Almost regardless of the segment that GM has a product offering, it is one of the lowest cost vehicles in that segment (especially after rebates are factored in). This price advantage is largely (in my opinion) what has kept GM the largest automotive company in the world. However, the automotive landscape is been changing and GM can no longer offer vehicles at the lowest price, the Koreans and Chinese will/are best equipped to fill that position. But that’s fine. Brand loyalty doesn’t much exist for shoppers concerned primarily looking at MSRP and rebates, they’re only loyal to their bank accounts.
GM’s key competitive advantage is its size. It has been using this size recently to produce average vehicles at a below average cost. Its time for GM to change its business philosophy and begin producing above average vehicles and offer them at an average price. As the link below demonstrates, GM and the other domestics certainly have room to move up in this regard.
http://www.eere.energy.gov/vehiclesandfuels/facts/favorites/fcvt_fotw219.shtml
In short, GM should use its economies of scale to make expensive cars attainable, not average cars inexpensive commodities. McDonalds can’t get people excited about the taste of its food because it’s sold on price, and GM shouldn’t be surprised that many (though not all) of its products aren’t sold to people who love cars.
Paul Eccles
I’m not sure you will get the great ideas here because you are mostly preaching to the converted. I would think you sould have surveys and/or focus groups with non-GM owners and find out why they did consider or buy GM.
Greg Godsell
The habits of consumers have changed. People no longer just go to their favorite brand and/or dealership for a “new car.” Most people have at their fingertips a wealth of research tools and information. In 20-30 minutes of time online, they can whittle their choices down without having to endure multiple dealership trips to gather information and look. (How many times have you heard the phrase “What’s it going to take to get you to buy a car today?”)
At the same time, the habits of the media are changing. There are more outlets and competition for eyeballs is fierce. As people look to the experts for opinions, the experts are quicker to dispense with accepted wisdom. There are no pre-requisites for being an automotive journalist. Being passionate or prolific often passes for being thorough or insightful.
GM’s various business issues are opening the door to analysis from many fronts. Many media outlets that are publishing criticism of your products are merely recycling or reporting accepted wisdom. If a business section editor is running criticism of GMs poor products, they are not any more informed than any consumers that might be making purchase decision based solely on that information.
GM is building better cars than ever. They are more competitive and with simple pricing and marketing, they will find their way on to more shopping lists. The problem for GM lies in the overwhelming body of public opinion. Only a proven record of accomplishment is going to turn this around.
Ask random consumers what Toyota, Honda, or BMW stand for and you will get a consistent answer. They are not succeeding by the virtue of any given marketing campaign or solitary product. They have a demonstrable record of building competitive vehicles. Their vehicles are continually refined and perfected; it has become obvious to consumers over time what these brands stand for, and what you will get when you buy one.
While the media is exacerbating your current problems, it is not your enemy, per se. It is important to show the confidence to put your products head to head with other class leading products in the automotive press. Even if you are not winning the comparisons today, solid performances will work to change the accepted wisdom tomorrow. Outstanding practices like the AutoShow In Motion drive and compare events are working to directly change customer perception at the grass-roots level. The most information literate consumers will be able to see bias where it exists.
Concentrate on winning the war and not the battles. Build solid competitive cars that tend towards passion and not cost effectiveness. Continually refine or replace them on shorter timelines with cars that are better in every way that matters. These are the keys to changing your image in a lasting manner.
Zack S
It’s just my humble opinion, however I would suggest that you NOT move 1,200 jobs to Argentina, Phillipines, and Canada. You want a better image, keep Americans working. I understand you have a bottom line, I understand to you have a responsibility to the shareholders, but giving a company like Convergys a 5 year contract to lay off Americans is not a “good image”. Lying to contract workers in Tampa and Portland is not a “good image”. Not showing up to the meeting to announce we’re getting laid off is not a “good image”.
Again, my humble, laid off, opinion
Brian Huber
Mr Lutz…
I think where most of this has come from is from the feeling I’ve gotten from everyone I talk to is that GM always seems to jump on something too late to make a difference. The Solstice made a HUGE impact at the autoshows, but between the show car, and when you actually saw the car seemed like forever. The hype around the car and the long time to production almost felt anti-climatic.
Seems that with reference to the Camaro concept that IF it would be produced, it will be the same case if you believe all the forums and media outlets. I don’t see the buying public willing to wait 3-4 MYs to get one. I could be wrong.
Other products just don’t seem to evoke the “excitement” that people used to have when the new models came out. I don’t think it’s just GM, but the american car builders overall, with the exception of a few cars here and there.
The percieved quality of the cars always comes up. Great detail is taken on safety, emissions, MPG, etc.. and then it seems like the $$ ran out to make an interior taht didn’t come from an early Kia’s parts bin.
I’m not excited about seeing the new GMT-900 trucks. I felt that ANYTHING would be better than the 03-05 chevy trucks style. When the 1999’s came out, I was thrilled to see it. Just don’t feel that anymore. Trucks feel & look less “truck-like”.
Styling, build quality, and above all… customer realtions from the factory to teh dealer is paramount. Look at the hands on approach of the Bowling green plant. Talk to new C6 / Z06 owners about seeing their cars built, and talking to the workers there as it’s done… THAT’S how you get someone excited about buying their new car.
Granted, you can’t have that scale at a truck plant, and the like, but it’s just one example about making the buying process enjoyable and something a buyer looks forward to doing again.
Sorry to ramble… just my opinion.
6 months.. 15K miles on my 06 Cobalt SS/SC and I still love it.
Thanks for your time and attention to these matters. It’s a great start.
Craig
Bob,
Stop the blatant badge engineering. Put the “Good Stuff” in every car no matter how cheap or expensive. Look at the surveys that express what people really want in a car and make it look good. (ie bodyside cladding on Pontiacs is finally gone! about time!) Make the interiors world class and keep the corner cutting out of sight of the customer. Demand GM cars be the best! No more “good enough” is good enough. That just isn’t getting it done. Get rid of the hard plasticy interior pieces that look bad and don’t fit together well. Definite customer displeaser! Keep the common GM parts bin out of the Caddys. People have a problem with Chevy seatbelt buckles in expensive Cadillacs. Last and not least, lengthen the warranties. Our products can stand the test of time. Also, do something about GM advertising. Each brand should have some identity in the ads.
CF
You’re right–public perception is killing you. Yes, you do have some very boring vehicles on the market (Malibu, Rendezvous) and some that are just plain weird (ION). However, there are some great cars, too (G6, Z06, H3, FST etc). I, too, have been amazed at how people will pay full price for a Camry when they can get the same thing in a Malibu or Grand Prix for a lot less money and have a vehicle that’s equally boring in looks.
However, the dealership experience counts, too. I can attest to this since I just had a huge hassle when I leased my G6. GMAC told my dealership that it couldn’t sell me the car for the price at which it was sold to me. The result was that I had to re-sign the paperwork. That was inconvenient for me since the dealer is only open in the evenings certain days of the week (not on weekends at all), and I work until late afternoon everyday. The difference in price would’ve been passed on to me, but I refused to pay it. It wasn’t much more per month, but that was not the point. Why wasn’t this handled properly the first time? Better yet, for the few hundred dollars involved, why didn’t the dealer just take care of it? Why risk irritating me as a customer, especially since it was not my error in the first place? Fortunately, I know that this is NOT a typical experience because this is the fifth GM car I’ve leased, and I’ve never encountered this before…but what about a first time buyer? I doubt this would encourage he/she to buy again.
D
I consider myself a domestic guy and I was just at the Chicago auto show.
I was in a a number of GM cars and was interested in checking out the fruits of the renewed emphasis on the new interiors. I have to say I was a little disappointed.
Not so much with the style but with the use of too much hard plastics. Especially on the new Impala. While it looked nice, the plastic felt like a Coleman cooler.
You guys really have to to start incorporating soft feel plastics into these cars.
Plus, there was a degree of sameness to a lot of the dash designs between divisions such as Chevy and Buick. GM really needs to start knocking out some sexy interiors. I feel the Buick Enclave is a good step.
Dan
I agree with David Hoff. I don’t understand while the Japanese companies use their same car names for decades, American companies squander the goodwill of their names.
The Taurus was a fine example of ruining a good name. What was once a cutting edge car was run into the ground with no major styling updates, turned into the quintessential salesperson car, and at the same time, the dishonor of being turned into a 4 star rental car.
The same goes with the Cavalier as suggested. The designs hang around so long that people relegate them to low rent status and it’s no wonder you have to change the name.
You guys really need to do a better job of brand management.
David Hoff
Bob,
And one more thing. The Delphi/GM/UAW/bankruptcy thing scares folks away. No one wants to spend $30,000 on a car with 6 years of payments only to find out their company is bankrupt and cannot honor the warranty. Remember this - a car maker bankruptcy is differenct from an airlines. When you buy a car, you are tied to the company for years. When your airlines goes broke, you are out your $400 ticket. Your financial house needs to get cleaned up.
Dave
Larry
Bob,
It takes a long time to earn a good reputation. It takes even longer to regain one that has been tarnished. It might two generations of reliable cars and good service - 8 years or more - before consumers put GM anywhere near Honda or Toyota in terms of a dependable vehicle vendor.
But here is the good news: everyone in America is rooting for you. We would much rather buy from an American company *everything else being equal*.
Here is the other good news: you have a lot of customers that love your products, even out here in California. They drive your trucks and SUVs. What can you do to get them to try your autos for their other vehicle? Maybe attractive lease terms - GM takes the risk on resale price, not the consumer? Extended warranties if you own two or more GM vehicles? Employee pricing on a consumer’s second GM vehicle?
Joey Crampton
The DTS is nice, but it would stand out alot more if it had the grill of the Escalade. Do it soon!
I picked up your book the other day, it’s still a great read and very relevant.
I think the ‘Ride’ in Vegas is a great idea and should be expanded to cities on both coasts where you can impress the early adopters. It’s not something that’s going to turn around in a year, Toyota didn’t build their reputation of supposed quality in a year.
speed42
Mr. Lutz, you can repeat what’s being said in blogs, the press and the comments here, but I don’t think you’re actually hearing. GM is making some awesome sports cars and an expensive gas-guzzling SUV that people and the press like.
But what are you doing for my family and me? I want a stylish wagon to haul my soon-to-be-born child and my dog in. It needs to look good, drive well, standup to the abuse children dish out and last about 10 years. At the dealer I’d like to be treated like a human being. Someone special who is about to plunk down $30k.
Last time I went car shopping at a Chevy dealership there was a beautiful Corvette in the showroom, but I got none of what I needed.
If GM wants to focus on the sports car and high-end SUV niches, continue on the path you’ve chosen. GM will do very well selling in the low millions. And I’ll be enjoying my Audi A3 or my Jetta wagon or my Mazda6 wagon.
Barry
Bob,
I’m not sure how we should take your post. But, I know how I will take it.
Should it surprise me that GM doesn’t know how to get its message across? No. Because the actuality is you don’t have such a compelling message. Now, before you get in a huff, maybe you should truly listen objectively. There is nothing wrong with admitting you don’t have all of the answers. Actually, successful people are quite good at it.
I believe GM is in need of a cathartic admission. Your culture is resistent to change. You need to be honest before you can transform the corporate issues that need fixed. Bill Ford did it. GM needs to as well. And do it before your employees and shareholders. Doing so will empower you to set the tone for change. Without it, you are unable to truly address the shortcomings of GM because you will not have the employee sponsorship. And from the outside looking in as a customer, they are plenty.
One of those cathartic experiences is that your team appears to have no idea how to manage a brand, build client loyalty and win new customers in the market place. Yes, you have Camaro loyalists but the reality is all of those Toyota, Honda, BMW, Nissan and Hyundai owners were likely yours at one time. You do not possess this competency. While I applaud you regarding customer feedback, it is truly perplexing that a $200 billion company is scratching its head on how to deliver its value proposition. Bob, again, this is not a personal attack. It is a blunt observation. It is not unimaginable that you don’t have the right talent either. I suspect there are only a handful of talents in the world who have the intellectual capital you need. How many people do you think are on this board that can help you with your stated dilemma? I see you listened to some other well known consultant/blogger and brought back some PR guy to help you with the press. I’m sorry, but he is wrong and your dilemma will not be solved or even helped by that move.
Do you think LMVH, Apple or Nike would be asking bloggers how to solve their branding and image dilemma? Short of hiring AG Lafley as CEO, there are a handful of steps you might consider.
1) Quit wasting all of that money on advertising until you really get a handle on your strategy. While you appear to have made cuts, you are still wasting hundreds of millions of dollars.
You need to transform your dealer experience. It isn’t pretty. Comparatively, it is not process oriented and you do a very poor job of using a closed loop system to measure customer satisfaction. There is a direct correlation to process orientation and customer satisfaction. Btw, many of your dealerships likely don’t have the financial wherewithall to change. You might consider a minor adjustment by consolidating.
2) Admit your team does not have the skills needed to solve your branding/marketing needs. Did you read BW recently on the Nike mess? They brought in an analytical/process guy as CEO where branding is everything. Truly great branding/marketing is not something that can be taught. You’ve got it or you don’t. Their new CEO didn’t get it.
3) You really need to look to one of the great minds in this space. Someone who intuitively gets it. And it likely is someone outside of the car industry.
4) If you haven’t already done so, incorporate your branding/marketing team into the entire design and product development phase as part of a team development approach. Not an approach that hampers the designers. I don’t mean meetings either.
5) Commit to a strategy and stick to it. You are going to get alot of “that isn’t how we do things” or “we already tried that”. Dropping your shorts and offering deep discounts to move inventory may be necessary until you get your product mix fixed but you surely don’t want to use your advertising dollars on that approach. Does Gucci do that? Are you different than Gucci? No. But, I can get a slow moving Gucci design on a discounted web site without any fanfare or advertising monies from Gucci wasted on it. Give the new executive total control. No need to necessarily sack anyone but they must be given autonomy within their discipline.
6) Another cathartic experience. Look yourself in the eye and tell yourself that while your designs are better, they are still not good enough. The new full size SUVs are very nice. The Solstice is hot. The Cadillac V-series are very hot. The Escalade is super hot. Your ad campaign around the Cadillac brand is very lacking. You are winning with product in that space in spite of your advertising. Other new models are just ok. G6, Malibu, Impala, Lucerne….Bob, you may be proud of them but they just don’t cut it. The biggest problem you have is that you’ve convinced yourself that people should have a better image of your product than they actually deserve. Your product design still is just not good enough.
7) You need to personalize your advertising. Human psychology. The GM employee ads were pretty good except the message was that we are having another fire sale. Listen, whether it was Moses standing on the rock before the Dead Sea or whether it was Lee Iacocca appealing to consumers, personalization gets results. It connects with the consumer and takes that ugly plodding image and forms a bond with the consumer on a personal level. People want to buy American today. Globalization has people worried and they want to support their own economy. Bill Ford is doing it in his ads. Not the right personality but the right idea.
9) Your Gen X advertising is poor. How do you reach this segment of the market? Do you even have anything to tell them? I don’t think very much from a product portfolio standpoint.
10) I’ll end here. You need to get serious. You are not serious about fixing this. If you were, you’d have made some tough choices by now. You may be v chairman of GM but I’ve worked as an exec in the marketing space for years. You just aren’t serious. I can see it by your ineffective campaigns and wince at your tactics. You may be resistent to doing so, but you need outside blood.
Finally, your cycle times are still way too long. Now that you have extreme competition in every segment, you need to work even more diligently to reduce that cycle time. You can’t wait ten years for a new full size pickup with minor skin changes. You will be eaten alive long term.
Bonequark
Bob, I’m a lifelong GM Man.
I just bought an Infiniti G35X for my wife. You have nothing to compete with it anywhere near its price range. Where is the sophisticated engineering and clean, good design?
GM Dealers need to change the way they treat customers and GM needs to back their product with a better warrantly. GM needs to behead, ahem, ahh, “RE-ORG” every Brand Marketing Manager and beancounter and allow the car people to run the business once again.
It is so sad to see GM losing ground to the Japanese every quarter. But I could not bring myself to buy something inferior only because it was made by GM.
When you catch up to the Japanese in engineering, design, price and dealership operations, let me know. I’ll look at GM products once again.
jn
I’ve said it before and will say it again. Your image is badly tarnished and you need to earn reputation by something that is clearly better AND cheaper than the competition.
The benchmark here is Hyundai.
In the bread-and-butter mid level sedans you need to do better. The Lucerne looks like a good try, but it needs to be a couple of thousand cheaper, it needs to have a classier interior, it needs to be sold by dealers who give a good sales experience, and above all it needs a 5/50 10/10 warranty that matches Hyundai.
You will never earn a premium until you first produce a car that is obviously cheaper than the Toyota competition but is consistently better AND more reliable AND better put together.
Hyundai gets it and is really trying. Do you?
James Peffley
Some simple advice from one Engineer to the lay people: A gentle man commented here rather insightfully that:
Japanese = Quality
German = Performance
American = ?
Simply put, GM obviously creates sometimes wonderful (some times mediocre, unfortunately) cars that are usually thousands less than German cars - The strong suit in GM’s cards are the innovations GM brings to the table - especially lately. How is it that the Cadillac V series cars work as well as the AMG’s, while costing thousands less - innovation. How is it that GM’s latest hybrids again work extremely well - and come in thousands less than the Japaneese? - Innovation. Remember this - America had Goddard to get the Rocket science Business going (and the Germans copied it - and utilized it on the V2 program) This same story unfolds precipitously with many of the latest technologies, i.e. Hewlitt Packard or, again just look at what JPL has accomplished mean while who has even come close to these daunting accomplishments? (Perhaps the Euros - but by far NO-where near the accomplishments of JPL). So when it comes to getting things correct, absolutely perfect the FIRST TIME, USE your ENGINEERS for what they love to do - innovate and work! Their educations and imaginations are by far the largest arrow in the Generals quiver. Remember, most engineers basically blow the bell curve in any intellectual pool of people - hands down. Who else do you know; who understands non-linear random vibrations, or high speed gas dynamics….No-one except the Engineers! So who else better understands how to make GM’s cars better? Remember - Every craftsman loves to know his skill is appreciated! So capitalize on this simple fact, Engineers love to innovate, and work hard to justify the cost of innovation!!!! Just read the book “The Bell Curve”.
So again the questions comes back to what can GM do to improve their image?…How about sweeten up the deals with your Engineers (pay them well) - make them work long hours in return. And reap the Benefits of this! I.E Use your Commercials to Brag about how Cadillac can perform above and sometime beyond the BMW’s or AMG’s, or Chevy Corvette - the beauty of the engine architecture is in its simplicity, in commercials you should measure any other type engine against it, in performance and per cost, and show how does it compare? The answer become obvious - again, I can’t stress this enough - this car business - should first and foremost be a realm where engineers are held in the highest regard.
Remember this - Anyone can make an expensive great car, the trick is making the automobile perform, look, drive, feel world class and still be AFFORDABLE!!! You have thousands of articles that quote how Cadillac, Chevy Corvette, Solstive has achieved this! So STOP putting on commercials about “Euro” Handling, or “Euro” style! - Make statements about world class, and cost effectiveness, timeless craftsman ship, technological break throughs!!! Then brag about it when car articles become attune to this.
mike w
Sir,
I bet you guys read what Toyota’s boss said about fuel cell cars. They will be in production by 2010! Toyota has already solved the fuel stack problem while infrastructure and hydrogen tank safety are still not done. Did you guys get how 2010 is just about right now?
If it were not for protectionism or a coming dollar collapse I wouldn’t bet on GM or Ford.
Dennis
Mr. Lutz
As a current GM employee I have to admit that you can design a nice auto. The point i would like to make is that there are too many of the same car in the GM family. For instance you have a Trailblazer which I have happily owned two of these, then you have an Envoy, Rainier, 9-7x, Bravada (discountinued) and a, Isuzu model… Then you have a Vue which is an Equinox and now a Torrent. then there is an Ion/Cobalt/Pursuit. Tahoe/Suburban/Escalade/Avalanche/Ext/Silverado/Sierra.. And not to metion the Vans….. I think if we made less twins and more individuality between the brand names we would be doing better in the market… Let Caddies be what they are known for luxury elegance not super pricey Corvette. MJ got the first XLR-V, I personally do not have MJ money… let Pontiac be performance, speed, fun… let Saturn be economy, let Buick be refined affordable elegance. let GMC do trucks (combine the truck sales numbers and bye-bye #1 F-150). And let chevy be the affordable family cars that they are remembered as….
Just an idea from an employee hoping for a future for my kids………
Merrill
You are going to have to hook a new generation on your cars and in light of the competition from Japan, Korea and China it’s an extremely tough proposition. Unfortunately it will be the North American and European car maker’s market share that shrinks while Asia’s expands. The problems faced by GM took 30 years to unfold and fixes unfortunately are going to take sometime. The task is doable, make great cars, price them aggressively, advertise in a smart way and marshal resources so you can make it for the long haul–you’ll need it. The definition of a great car is — looks great, completely safe, good gas mileage, reliable and priced right. Miss one of these points and you will continue to lose market share. As for me, I’m a longtime GM customer in his 50’s.
Joe Meek
Bob,
As you well know, many people have forever moved on from GM to imports. My entire family at one time drove GM products until the early 90’s when the European and Japanese really started offering feature packed, reliable cars at competitive prices. That’s when my family “made the move.” We now all drive Saabs (9-5s, 9-3s) or Volvos (940s, 240, V70s) These cars are reasonably priced, super safe, and efficient vehicles. I own a 2004 Saab 9-3 and I’m an avid Saab loyalist after only being with the brand a few years.
Many people who have left the fold for imports because of the “GM doesn’t excite” mentality have never driven, or maybe even seen, the latest offerings from Saab. The Born from Jets ad campaign is great and will get a few people into the showroom (it’s a heck of a lot better than the “State of Independence” campaign) but there has to be more. Your greatest potential to win over market share, relatively speaking, is with Saab and here is why:
- As SUV and truck sales continue to decline worldwide and as gas prices will certainly continue to rise, GM must make sure the public knows about it’s high effeciency Saab lines and also offer the US consumer the E85 BioPowerred Saab 9-5 (this 310 horsepower flexfuel model blew me away at the LA auto show). Even though E85 is not readily avialble, I’d buy a Saab 9-5 BioPower SportCombi today if it were avaialbe because E85 is on the horizon and I keep my cars at least 5 years. Just having the technology to meet future demand would justify the extra price for this flexfuel option. Saab is the only GM brand poised to win-over t “import-only” (my family included) buyers out there who demand safe, beautifully designed, fuel efficient vehicles that are designed and made in Europe.
- Saab’s real-world safety program, government crash tests ratings, and other safety ratings (including the IIHS’s) show all European-made Saabs (9-5 and 9-3) the safest cars on the road - period. Why is this not touted in any ad campaign. Vovlo, has sold more cars consistently by pushing the fact that it makes safe cars. Saab beats Volvo’s safety record hands down. Why not a comparative ad campaign showing Saab beating what the world perceives as the safest car-Volvo.
- Open up communication between Saab and Saab loyalists. I hardly think that putting Saab drivers in the realm of Chevy, Buick, Caddy, etc. drivers gives us a voice loud enough to be heard. I like the idea from Trollhattan Saab that his web blog be a sanctioned sounding board for Saab owners and those interested in seeing what Sweden’s coolest car company is up to. Remember, this is GM’s only brand that is sold and marketed on a truly worldwide level. The voice of a Saab loyalist is a multi-lingual, multi-cultural voice that doesn’t sound very much like the homogenized voice of US-only GM consumers.
- Saab is the “Toyota of Europe,” by this I mean they have the 2nd highest quality rating of all European brands ranked by European drivers - the highest is Porsche. Showcasing Saab’s reliability will go a long way when owners disgusted with their short-circuited Benz, Bimmer, or Audi are looking for a trustworthy alternative.
- You must stop trying to flaunt Saab as a GM brand. I hate to say it but it makes us “import-only” people cringe at the thought of buying somehting that’s been tampered with/watered-down by the “brand specialist” in Detroit. Making a new Caddy at the Saab factory in Sweden and shifting all future main-line Saab production (9-3 and 9-5) to Germany at an Opel plant was a bad move as perceived by Saab loyalists. Now I am happy that you’ve given the company money but making Saab feel like a “me too” name brand, at least for this US consumer, just makes it look cheap.
These are just a few quick ideas that I’ve been mulling over since I’ve really started having an interest in GM’s crown jewel.
Sincerely,
Joe Meek
Advertising Executive
Cleveland, Mississippi
Tom Eiynck
Mr. Lutz
I would first like to tell you I am an owner of both a GMC and a Mercedes.
I’ve owned Fords and toyota. Mostly General Motors. One thing I’ve noticed, They are all good products.
And from doing so personally, I understand focusing on weaknesses within ones self or a company is a possable path to improvement. publicly pionting out the others weeknesses doesn’t help me as a a car buyer what to purchase.
I purchased the autos I have because of other factors. Ones that don’t even relate to advertisments. Considering
I have owned primarily General Motors and Toyota products in the past there’s you might find valubale. Why.
I haven’t gone through a 4 year school. But I have seem and been a part of a sucessful customer service, word of mouth type business since I was to young for collage and have had a serious interest in automobiles and the car market since before i was old enough to drive. I’m now 33.
Such an interest in fact that when I starting reading about leasing the firstt thing I thought of was the long term effects it would have on the market. and I was right. Even my dad will admit that. And he is not one to give me that kind of credit often. I think I was about 17 at the time.
Currently I have had a few what i think are possiably very insghtful and innovative Public realation and product
Ideas related to your industry.
I went as far as talking to an attorney about protecting these ideas and was told any inexpensive form of protection is useless and and any useful form in to expensive and to trust a large company is setting myself up to be ripped off.
And a lot engineering schools have a clause that possibly gives them ownership of ideas devloped within there education systems.
I’m not saying I could develop these ideas myself. I couldn’t. I couldn’t as independent engineer either. Thats why you have team of them.
I learned something from audio engineering school engineering can only inprove something that is at least good from the start.
And new ideas or innovative ones are most likely more diffacult to have when you think like someone else than
think for yourself.
So why do so many companines that can provide opportunity and market innovation require thier employees to be taught how to think instead of providing and looking for the type of people who struggle to think for themselves, and find the less than obvious through the obvious.
The thought process of someone like me and people like me is worth something and not solely on a consumer level. And it should be worth something to me and people like me too.
Thanks for your time. If you have time to respond I welcome it.
Bob Miller, Jr.
Bob,
I purchased new in May of 2003 a GMC Savana 3500 extended passenger van that I use for both work & personal use. I special ordered the van loaded with everything including OnStar.. a wonderful product that has helped me countless times. September of 2005 I planned to purchase a new 2006 Savana equiped the same as my current ride to gain the benefits of the new, standard stability control system. When my dealer told me that OnStar is no longer available on Savanas I decided not to buy a new 2006 Savana. Please make OnStar available on Savanas so that I may purchase a new one. Thanks Bob
Edward Gwiazda
Mr. Lutz,
I am a Solstice owner and am very pleased with my car and so is everyone that sees her.
A day doesn’t go bye that someone doesn’t pull up next to me and yell, “What is it?”. The next question is “How do you like it?”. I always tell them the truth it is a world class sport car and I love it. The car is fun to drive and it isn’t sluggish if you know that there are other gears besides 5th. I drive it to work everyday, I’ve had it in the snow and on the interstates.
My wife and I have also made three trips to visit my sons family in New Hampshire. My wife and I were able to pack enough cloths for each of our three to four day stays. I see the same quality reflected in other vehicles as I visit my dealer for normal maintenance.
How to get the word out. First GM needs to monitor their Dealer Network. Remember GM is only as good as its worse dealer. McDonalds became who they are by sending their own customers to the stores and if service or quality wasn’t up to par the owner was notified and if the problems weren’t addressed the franchise was pulled. Finally your TV ads ready don’t cut it. If your AD firm has no imagination copy the competion and and fire the AD firm. I have an Idea to suggest. Sometimes being honest can hit a cord. When people approach, as I said before They ask what it is? And I tell them, a Pontiac and the response is always the same. NO WAY!! YOUR KIDDING!! The idea that Pontiac would actually be building a quality attractive car shocks them. You might try humorously poking fun at yourself and finishing with The EXCITEMENT of driving back at GM!! YOU need to be in that commercial. Lastly GM has to find a way to build the same feeling of pride that’s felt by the “Automotive Craftsmen/women” in Wilmington. I have one in my parish and after mass he asked if that was my Solstice. He is obviously proud of what he does. He wanted to know how I liked it and if I had any problems. I thanked him for his hard work and told him to keep it up.
Mike Budig
Bob,
This is a great conversation starter. I think you guys are doing a very good job of moving up the field. The products are good, you seem to have them in a lot of places, (Apprentice, Superbowl, back of Forbes, and many more.) You are focusing on improving the entire lineup, and pushing the moneymakers first, (sport utilities, pickups,) This is good text book execution. I say keep hitting hard at what works.
Jerry York is exciting for me, I think he gives you guys credibility and can be used to get change where needed.
I am a dedicated customer, having bought well over 100 vehicles in the last 10 years, with the majority GM. I got frustrated by the GM committee vehicles and lousy interiors, and am excited by the improvements. You need to build that Camaro, talk about Halo car, that thing will be huge. I am not a coupe guy, I like nice sport sedans. However, I see a winner in the concept Camaro. People want this car, build it.
I drive an 04 Saab 9 3, and am very happy with it. Funny thing about that car, you show much lower fuel economy on the sticker than I get. I drove the new 9 3 with the V6, and was amazed at smooth power and lack of torque steer. My dealer always tells me he never has enough 9 3 Aero’s, they sell as fast as he gets them. The reason I mention these things is they are important points that I have never heard about, or read about. Saab seems to be totally under utilized as a halo brand for GM. I suggest you keep pushing them, and tell Jerry York this is one thing he is wrong about. GM needs a car to compete with BMW, AUDI, INFINITY, etc. Without Saab, you do not have a line for the younger crowd with money.
I also think you guys need to have a heart to heart with the UAW brass. They do quite a bit of damage with their mouths. Every time they whine about some issue, they look spoiled to your customers, I am sure many people actually buy your vehicles in spite of your union workers. They need to clean up their image and keep their mouths shut for a while. They sound very spoiled. I actually needed a pickup last winter, and bought a Nissan Titan because the union mouths sounded so rotten. Since, I sold the Titan, and bought a new GMC Duramax and love it. My defiant purchase backfired on me but it shows how unimpressed I am with your workers attitudes. They also need to chip in some concessions until your balance sheet is corrected.
Good luck and keep focusing on the successes you have and keep working hard, tell Ford to kiss off, many vehicles are never registered, a sale is a sale.
Mike
Leandro
Dear Bob,
It very easy. Try building better cars!! I thought you already knew this.
Joe
I think you should emphasize the fact that nearly all of your U.S. vehicles are built in the U.S. and support U.S. workers and retirees. Patriotic things always increase sales, especially today when jobs are going overseas.
Additionally, I would launch an advertising campaign that features real buyers saying why they buy GM vehicles. Something like “Why do you buy GM?” Have specific commericals focused on quality, safety, etc. and mention specific vehicles accolades at the same time.
Advertising, especially emotional advertising, can really help draw sales to something otherwise ignored. Also, the ads should be more information based, because the eye-catching non-informational ads won’t work for GM anymore. People need info (like competitors provide) at this point. It’s to late to just rely on the looks of a car, once you’ve already lost this must trust.
Lastly, the your 3 year warranty, besides being shorter than some companies, sends a message that your only confident in the reliability of your vehicles for 3 years. If you extended that warranty to 5 years (Hyundai, Kia), and promoted it, I’m sure the sales spurt would justify the added expense. I personally know MANY people who would have gone with GM if it wasn’t for the dated 3yr/36,000 mile warranty.
At this point you can’t do your old crap, flash off cool looking vehicles with no logical backup of why you should buy it. You can’t stick with the standard warranty. You’ve lost your trust and you have to EARN that back, and it will be a lot harder than if you had just maintained it all along, but previously their was no incentive to, and it seemed that GM would always be Number 1. But, soon you might not even be able to say that, and the day that happens, I don’t think you’ll have a chance of recovering.
Bob Miller, Jr.
Mr. Lutz,
I took my drivers test in 1971 using my Dad’s 1968 Buick Electra 225 sedan. Even as a kid I loved and babied that Buick!
The first car I owned was a 1973 Buick Century sedan that I purchased from my brother-in-law in 1978.
I attended the 2006 Pittsburgh PA Auto Show today.
The 2006 Buick Lucerne is an improvement from the Park Avenue and LaSabre it replaces.
Exterior design is clean, exciting, contemporary with fit and finish as good or better than any other cars at the show.
The interior fit and finish is also improved from past models .. but for being the “large” flagship family car of Buick, the rear seat foot and leg room is a poor antiquated design. I looked at all of the foreign and domestic cars in this class and the Ford/Mercury 500/Montego design team offered the most comfortable rear seat leg and foot room. Ford has made floor space by mounting the front seat tracks on the center tunnel and the side walls, plus shortened the rear portion of the front seat that on most cars just takes up space under the front seat backs. A full size sedan should offer rear seat passengers front seat passenger comfort and space.
A Buick representative at the show that claimed to have recently just finished being a Buick interior designer overheard my father and I complaining about the lack of rear seat room in the Lucerne.. a total lack of modern space utilization design.. bulky front seat back design that robs space that could be better used by my legs.. misplaced front seat glides that rob space from my feet.. and eight to ten inches of the rear most portion of the lower front seat cushion that robs space from my feet and legs.
His comments and solutions made us conform to the car.. he did not even consider that maybe Buick needed to conform the car to us. I want to like the Lucerne.. but we know what we like and want. I am 6′2″, 190# and the Lucerne’s rear compartment is cramped for me.
All of the GM sedans that I sat in including the Impala, DTS, STS, CTS, Grand Prix, LaCrosse, etc. had the same old school design with poor rear seat space utilization.
Please correct this design flaw. Full size family sedans can look sporty and still be comfortable.
S. Boston
Just a request from your typical suburban mom: I am not a car nut, but I do know what I want. I want an affordable, reliable, stylish car that I can fit 3-5 children in comfortably. Although we don’t need the extra space all of the time, it comes in handy for carpooling. I would like to have an option that is not as boring as the minivan but not as “road hog” as an SUV. I would like a car that does not scream “soccer mom” and one that my husband would be proud to drive. I am thinking of something reminicent of the 50’s with the wide open interiors and eye catching exteriors. Please make it economical on the price tag and at the pump. On the flip side is a request for a “commuter” car. We test drove the Aveo, but it did not have the “get up and go” quality that my husband needs for highway traffic. Thank you for this forum.
Joe
You should have a test drive incentive to just get people into the showroom. For many people I know, GM’s brands don’t even cross their mind when buying a new car. They’re not specifically against it, they just don’t think of it. An incentive like, “get $150 dollars off the price instantly (no red tape) if you test drive than buy in addition to any other discounts or incentives you might get (no obligation to buy of course)”, and a $10 gift card to Best Buy (or something like that) just for trying it anyway.
Joe
You should also even out product gaps, 1) youth oriented sport car, 2) small hybird, and get rid of the disgusting amount of rebadging. Fine, 1-2 badges of a car to save costs and make it appeal to different buyers under different brands. But, 4 of the EXACT SAME MINIVAN is overkill. Buick and Pontiac do not need Minivans. That’s what Chevy is for. There is no need to offer a minivan under an upscale brand. There may be a need to offer an upscale minivan, but minivan buyers don’t want/don’t expect a Buick minivan. They expect something family oriented. If someone is going to buy a minivan they’re not going to go into or want to go into a Buick showroom, and someone who would be going to a Buick showroom is not going to buy a minivan. So exactly who did you think was going to but the Terraza?
Leslie
Talk about plain and ungly have you seen a civic or camry lately? Now thats vanilla. And they don’t last forever. There are about half dozen dead ones on my street. Judging from the worn out asia iron parked along my curb theres going to be buyer traffic in the auto show rooms soon. GM may be in the sweet spot ready to pick up some of these auto buyers.
Denise McCracken
Who is supposed to buy GM’s cars? Mature people are the ones who can afford to buy the top end cars, more than half of use are women, and what do we have to choose from? Trucks, Japanese sports car clones, European sport sedan clones.
We don’t want cars that are made for adolescents and men who are going through midlife crisis. We want cars that are comfortable and easy to drive.
Instead of those ridiculous sporty lawn mower wheels, rack and pinion steering, dump truck suspensions and bucket seats, give us real tires and steering, soft seats, and for heaven’s sake, make them conservative and elegant. I would feel silly driving any of the Mickey Mouse cars that Cadillac makes now.
Chet
One example of what’s wrong: when you DO build a compelling product, you make it hard to buy.
Witness the TrailBlazer SS.
Go to chevy.com and click “Build Your Own.” Where is it? I had to email the webmaster to find it — because it’s not a model, it’s an option package on a TrailBlazer LS or LT (which, apparently, *are* models — go figure).
Next, try to find one at a local dealer by searching inventory. Can’t. You have to do FOUR searches and click on EVERY window sticker to figure out who has an SS.
Bob, maybe you don’t want to hear this, but there are buyers who wouldn’t touch a TrailBlazer LS or LT with a ten-foot pole — but the SS has appeal. These potential GM converts aren’t going to believe GM “gets it” if they have to wade through so much muck.
Not when the Jeep SRT8 is easy to spec and easy to find on dealer lots with a few clicks over at jeep.com.
They get it. They know that for performance buyers, performance isn’t an OPTION.
All the press the TrailBlazer SS is getting you is being ruined by a clunky website.
Don’t make good products hard to find and hard to buy.
Charles
Bob, it is a good thing that Gary Miller - who posted above - has now retired as your “Relationship Manager”. Save yourself some money and retire the position as well. It is that kind of corporate BS that got GM in trouble in the first place. You didn’t need a relationship manger to promote the Buick Grand National and yet look at where that car resides today in both value and enthusiast lore. If you go back through old Motor Trend or Car and Driver road tests you will find that, except for the Corvette, GM cars always came out as “good” but rarely the “best”. Why, after all these years, with all of your resources, can you not just once come up with a car that comes out better in a review than the BMW 3 series? If you did, you wouldn’t need relationship managers, you would need third shifts.
Phil Racicot
Mr. Lutz,
I am a Buick fan more than a GM fan but the current Buicks are not exactly the kind of cars that I’d like to drive… I’d be MORE THAN PLEASED to give some of my ideas to GM about what kind of cars Buick should build.
Stop themes like “Quiet Tuning”… …for people that probably have severe hearing loss anyway!
Instead, make Buick “THE TUNED CAR for young people of all ages” like it used to be!
Stan
I think everyone at GM had better look in the Mirror and ask themselves.What can I do to make this car company succeed.First off the big perception is LACK OF QUALITY.I think coming out with longer warranties (10yrs) will help address this but also FORCE everybody to make a better product.Second The dealership experience.Iam very happy with the present dealership but man there were some that you scratch your head and wonder.I beleave GM suffers from to many dealerships.To many owners trying to make money and alot of the time there burning there customers to make a profit.Thirdly Loved those E85 commercials this is something you have got to gain control of Exxonmobil had what a 36 billion dollar profit margin.People will say ethanol isnt as good as gasoline but hay the first rockets made werent as good either.You can get better at it.No 4 Build about 50 to 100 concept camaros jazz them up with fancy paint and striping and CREATE A EVENT.Have the cars go around to every Dealer and Mallcenter and serve hot dogs and hamburgers and talk about how GM is committed to making high quality eye popping products and please fast track this car it will help you.No5 Get the best possible deal from the UAW both Management and Workers futures are at stake some how some way get the delphi problem figured out its a eye sore.No6 It was of big amusement that I read Oil companies which made tens of billions of dollars in profits also will have to pay no royalties for getting that oil from Uncle Sams Land but the bigger question is what is GM doing to get research and development monies from uncle sam.Everything from E85,Hybrids,New lighter material can be helped with by Uncles Sams Wallet be more aggressive in securing monies from Uncle Sam.
Tim
Mr. Lutz,
In answer to your question to improve perception and regain sales
1)Give the best warranty in the world.
2)Keep the new exciting products coming.
3)Get this Delphi - UAW - Plant closurings done - nobody wants to deal with negativity and it probably is keeping people away. You need to make sure this time that you go “too far” with cuts so it won’t come back again. Everyone is tired of hearing about US companies “reorganizing”.
Z064ever
Let me begin by saying I love my 02 Z06. I thought of buying an 06, but an 18k increase plus the thousands over sticker that a dealer wants. I don’t think so.
It seems to me that when GM or a dealer gets something that people really love they price it out of reach one way or another, is this any way to make a comeback? I don’t think so. Your resale value/trade-ins still are poor.
I go out of my way to buy American, most of my clothes are made in the USA, by purchasing on the internet. Your so-called American cars are made in Canada, Mexico, Korea, and China (a truck engind for G-d’s sake) Buying American may be more appropriate to buy Toyotas made in the USA, and get better resale to boot
mateo
I agree with Bob, GM Products are improving and getting better and better. However, it’s the small stuff that keeps my money in my pocket.
I have $50,000.00 to spent on my next GM vehicle. (It will be a GM product because I have the discount and the GM card).
I thought, maybe I want the new black DeVille!!! I can’t buy this car because I drink coffee. Some accountant/cost cutter made the inside strip on the front seats cloth instead of leather. This will stain on my first trip out of Starbuck’s parking lot.
Then I thought maybe I’d buy the GMT 900 Yukon to replace my current Yukon. Another GM accountant cost cutting move on the lock knob on top of the door panel. Flimsy plastic pc that moves a half inch when touched. This part should be sturdy, sexy and chrome. (Take a look). Unfortunately it’s that way on the Tahoe, Yukon and Escalade. I’ve had three GM full size SUV’s and I will not replace with the GMT 900 because of this cheap lock knob.
I do have a Solstics on order!!! Unfortunately, it’s been on order for over 5 months and GM still hasn’t pulled it from the dealer (I’m still seven down on the list).
Mateo
Art Schroeder
Hi Bob,
I’m a big GM fan and share your pain. To tide us over while waiting for the 5th gen Camaro SS convertible, we’ve purchased a Trailblazer SS AWD …. WOWZA … and ordered a Solstice Club Sport. Those are in addition to the 2 - 1999 Camaros in the “Toy Box” … a loaded SS convertible and a Hugger Orange 1LE hardtop.
I’m the kind of guy that will throw the keys to anyone that wants to take a vehicle of ours for a ride … (the heir to a Ford dealership nearly drooled when I let him drive the TB SS) … so to answer your question … put butts in the seats … and one way to do that build my Solstice quickly … order number D87135 … autocross season … or as they call it here … Miatacross … starts in April, and as soon as I get the car, I’ll be putting enthusiasts in the driver seat.
Mike Murphy
Mr. Lutz:
It is going to take a while for the message “GM, Means The Best” to get out. GM has spent the last several years talking ONLY about the DEAL, and this philosophy still exists with the way the Mark Of Excellence Programe affects dealers. Some Larger dealers are advertising New 2006 4X4 Silverados with air, auto, v-8 for $19,990. Even with the rebates that price is lower than Net, Net. What does this say about GM Products? The message is “it is still about the DEAL.” Do Toyota and Honda dealers advertise products below Net, Net?
Packaging and color have been another obstical. Not being able to get some popular options (even free flows) unless you order the next trim level, which can add thousands to the cost, hurts perceived value. The least expensive element of styling is color and much of the time there are only 3 salable colors in any given line (some times not even that many). Color often makes the person stop to look, and it can also make or break even the best of designs. Two examples: code 25 on Malibu, to many customers it looks black not blue, and on regular cab Silverado’s three of the best colors are on full constraint codes 42, 46, 47.
Finally, dealers have to spend so much time managing programs and trying to comply with “this weeks mandate” and not on the three “C’s” of selling which are Contact, Contact, Contact.
I thank you so much for this opportunity. You are the single biggest hope for GM. As long as you are fighting the battle, I trust the dealers will fight and win.
Mike
I have a 2005 G6. I like it, I try to like it. But I am not nieve. It has its problems, problems that should not be there. I like the interior, hate some of the materials. It only leads to the misconception that the car is low quality. I also have the panaramic sunroof, and my car shakes, rattles, and feels like its coming apart while driving. But after all this, the biggest gripe is the steering. I hate it, cant stand it, its embarrasing. I cannot park correctly or even u-turn on a very wide street because of it.
The G6 is only one example of a long list of examples of a GM car thats about 80-85% there. They were better off holding the G6 for another year or two, spend a little bit more money on it and release a car into the market thats just not competitive, but better than the rest of the midsize cars on the market.
I am a GM fan, however, if my G6 costed more than $200 a month to lease, I would have never gotten it. Next time, when I am not so cost oriented, I may actually test drive an import. Albeit not a Toyota, but an import.
This is why GM struggles in the market.
B.D. Rand
Bob, Bob, Bob…Your cars look like they were drawn by undergrads at a votech…
Your vehicles keep your Mr. Goodwrenches plenty busy…
All you can do now is spin.
Just accept defeat with some grace.
BDR
J Smith
Many passionate responses!
Here are a few more to improve consumer perceptions:
Extended warranty (great!) - With DCX’s 7/70 warranty there was a net benefit given the customer increased purchases and quality improvements of the 6-Sigma Black Belt program. GM has a Black Belt program - show them off. The ten year warranty is fantastic and will actually cost less than rebates. It also pulls in a higher quality and more loyal customer base.
Commercials (watch them!) - A few years back I tracked commercial style vs company performance. Companies promoting cars dashing through the hills/streets/etc (while talking about performance) tended to lose market share. Why? Relavance & memorability. How often does the average person go dashing about the California coast? They are more worried about dashing through the line at the coffee shop drive-through on their way to work. Really old but memorable: the original Lexus ball-bearing car and some of the Dodge full-size truck commercials that focused on simple items like the bumper or door handle. Then don’t end the ad with a rebate or pricing - include a website tag to drive traffic there for full information (then you can really have full content with an entire soft-sell message).
Rebates (continue eliminating!). There was a cartoon where a guy’s wife tells him about the free coat she bought “with the 50% I saved!” Real people see through that - they just want the lowest transaction cost for the product they need. Walmart makes money with “everyday low pricing”. Saturn has been moderately successful. Value pricing program is good but is it accelerating fast enough? At the end of the day, adding up the costs of administering “games” is excessive - and those customers who are into that game program will quickly flee for the next “deal”.
Inventory (eliminate!) Sixty+ day targets are absurd. This gives further incentive to customers to consider the dealing game, and worries Dealers about their holding costs, which generates more deal pressure. Depending on how you calculate holding cost (pure cash interest or include incidental storage damage) there is a cost penalty between $300 to $600 (or higher) per vehicle. That’s before dealer rebates are included to clear out old vehicles and rent on surface storage lots and so on. I’m sure you track Toyota’s inventory, but take another look at Dell - they’ve been consistently in the 6-10 day range and thus have twenty or more days of positive cash float with their supply base (without the suppliers being pinched) - and no need for excessive borrowing rate costs!
Dealer competition (investigate!) - are there too many too close? Do GM brand dealers spend more time fighting each other than GM’s competitors? Do they work together or as individual business owners? Is sales capacity in line with production capacity resizing efforts? A tough situation to consider - but influences the dealership experience. Might be an interesting study to do there.
A few activities. Watch my website and weblog for others.
http://www.privateproductivity.com/weblog/
Private Productivity Consulting
Marketing General Motors
I posted some comments to GM’s “FastLane Blog” and have an additional post script I debated about including directly on the GM site. So I’m putting it here where serious people may find it through the links I left there.
Some feedback comments by co…
WPD
GM’s cars are certainly better than in the past. I own a Buick Park Avenue Ultra. However, here is my story. The car now has about 100k miles, when it had about 60k miles, the leather started to wear, the car started to shake at higher speeds, and I started to hear wind noises, squeeks,etc. The car was just not as tight as it used to be. I did not think much of these “problems”, after all the car was getting old. I had no real problems with it and overall I was pleased with the car. Then I happened to ride in a friend’s Lexus LS 400.
The Lexus LS400 was ten years old. The interior was pristine, the car was tight, no squeeks, no body flex, and quiet. No road or wind noise. The Lexus had over 175,000 miles. My friend was the third owner, who had owned the car for atleast four years. I had asked if she had the Lexus overhauled or any major rebuilds. No she had not. Knowing my friend, I don’t think she even had the oil changed regularly. I could not believe the differences between the two cars. The Buick looked, sounded and rode like a typical old car. The Lexus looked, sounded and rode like it just came out of the showroom.
So this is one of the issues facing GM. A ten year old Lexus with on its third owner gives you a better ride than a three year old Buick with one owner.
Ed
As a GM salary retiree, I have been a fan of GM vehicles for a long time. Starting with a 1968 Firebird convertible a week after leaving the military, until my latest Pontiac Aztek. I still think GM products are as good as anyones and have been planning to buy a Solstice this year. I say “have been” as my plans have been changed by all the latest gloom and doom coming out of the GM/Delphi/UAW talks. Like a lot of other retirees, my future depends on the income promised me for almost 36 years and is now somewhat in question. I could buy the new vehicle I don’t really need, but would love to have or, I could save all that money to support myself when my pension is reduced/eliminated by GM’s bankruptcy. This doesn’t even take into consideration the already announced health care coverage changes which could amount to a considerable increase in expenses in the future. So, as much as I would like to buy one of the fine new vehicles that GM is producing and help GM/myself improve their bottom line, it would be financially irresponsible to do so in the current economic climate.
Rob
Yes, your initial quality is way up and some of your cars offer a driving experience not far below the Asian competition, but you (GM,F,DCX) have spent well over a quarter century earning a reputation for fixing your problems only when sued, while the Japanese companies have spent the same time (and bucks) earning the trust of their customers. Everybody has (or knows somebody who has) a story, where the American company said “Sorry, out of warrantee” and the Japanese company said “I think we can help you”. I suspect that the relentless cost cutting of recent years is only making this problem worse. And now the Asians assemble their cars here and you import your (High Value) engines from China, so just how American are you, anyway?
bryan harwood
Bob,
It sounds to me like you are a ship without a port. Looking for answers for a direction. Being a past dealer of G.M. I found this through out most of your organization. Your direction would change course every day. Good leaders know where they are going. After the September 11 attack , GM went to a advertising strategy promoting all brands and this was quite effective. People realized who GM was and the products they made. Now you are right back to divisional advertising promoting who has the best lease program Pontiac or Chevrolet.To convince todays buyer you have to sell G.M. first and the products they build second. To be a great leader you must always lead first, copying the P.T. cruiser with your Chevrolet HHR is an example of not knowing where you are going. The P.T. cruiser is starting to slow up and you will find the HHR to be a flop in a very short time.If you want to find out how to rebuild your reputation go back and talk to some of your top past GM managers such as Ed Mertz who was a great leader among dealers and engineers.
jamie
It’s really simple, Bob.
You have really great product out there now.
The styling is very much improved.
The initial quality is right on.
But there are still a few quirks such as old tech engines & transmissions that still linger, but on the whole everything is just ducky.
The problem now is to get customers into the showroom to see for themselves just how much GM has improved. Right?
Easy as pie!
Every week this year, offer a new Chevy for FREE to customers who test drive or buy one. You can earmark the vehicle of choice on a weekly basis. Each customer would be allowed one entry per week.
Customers who actually buy ANY GM car could have it paid for by GM! In a well publicized drawing give the keys (or cheque) to the winning customer.
Many new and former customers would be stampeding your dealerships on a weekly basis.
This will also undoutedly put GM vehicles high on the recognition list of potential buyers. And what’s a paltry $20-30,000 to the new image and advertsing exposure that this program will deliver for GM?
Another idea, have tie-ins with Holiday Inn who could offer Chevy rental vehicles at a greatly reduced rate.
This gets more potential customers into your vehicles.
But please don’t stop there, Bob.
All GM vehicles must unequivocably have a minimum 5 year/50,000 mile bumper to bumper warranty.
You absolutely must back up your claims of the vastly improved quality of GM products to twist the hesitant or reluctant customer’s arm a little.
In fact, you should also offer a 10 year / 100,000 mile full maintenance warranty as an upgrade option.
Do it!
Mike Bresnahan
I will consider purchasing a GM product when:
- Consumer Reports data shows that they are reliable over a period of 3-5 years
- Resale values are better than the competition
- Interior quality equals domestically or foreign made brands such as Honda, Toyota, Nissan, or Mazda
- Warranty is better than Honda, Toyota, Nissan, or Mazda
- Safety ratings equal the competition
- Price/performance/features value equation compares favorably with the competition
Meet the above and I’ll put at least one GM product in my garage.
Congratulations on starting to take some good styling risks and good luck turning the company around.
tim
Bob,
It all starts with the products and product strategy. You know that better than anyone.
Poor products are what got GM into trouble, and it is going to be what saves GM. You’ve got to nail your products each and every time, 100% perfect, NO mistakes.
A good sales and marketing campaign can (and has to) complement a good product strategy. For GM, this is critical to changing people’s perceptions. But it all starts with the product.
Thanks for listening.
Oh, if you do increase your warranties, do it simple, clean, and easy. No “fine print” at the end of the commercial or radio ad. Make it simple and easy for people to understand: “We guarantee every 2007 car, truck, and SUV for 7 years or 70,000 miles.” Plain english.
Tim
Mr. Lutz, I must commend you for your energy and commitment to GM. But I struggle to see how you are able to keep going to work everyday. I can’t imagine what its like for you working for a company where the employees hate their employer and don’t really care about the future of their employer. Thousands of employees who would rather watch the ship sink than do something to save it. Add onto that the countless layers of bureaucracy that makes the execution of any good idea nearly an impossibility.
I think there are thousands of people right here in the US who would love to be a part of GM. Start interviewing them now and start training them now so when the current labor contracts expire you can replace the dead weight with people who truly care about GM and about GM’s future. Get the knife out and start cutting away the countless layers of management that stymie the better ideas.
People don’t believe GM can turn around because people don’t perceive GM as taking seriously how poorly GM’s condition really is. GM is not even considered by many car buyers anymore. And that is understandable considering how many years GM was not producing a quality product. People want to see action from GM, not just another advertising blitz.
I wish you the best, Mr. Lutz.
GM_fan
Dear Mr. Lutz:
Let me say that I am a fan of yours and was raised in a GM (Pontiac) household. I root for GM - -though I have not owned a GM car (or any US car) for over 25 years now.
First, awards are for neophytes. We are getting to the point where there are more awards than car models.
Second, the great or at least interesting cars that GM makes are often niche vehicles. Their mainstream cars are bland and uninspired. Why should the Lucerne or the GTO have a 4 speed transmission? Five speeds are table stakes at this point, seven is the premium position. On star and XM radio are add on baubles - - powertrain and suspension are the underpinnings of a great car. As an avid car magazine reader on my many airline flights, I can’t recall the last time a GM sedan won a broad based comparison test.
Ultimately the car market is brutally efficient - - the best cars get sold at sticker price (maybe with a little lease buy-down)and the laggards get marked down substantially.
Please don’t blame the public. We get it. Every Honda/Acura is close to as good as it gets. So is every Toyota/Lexus. Want more prestige with your great car? Then it’s a BMW. Don’t care about quality and prestige as much as power, then its a 6 cylinder Nissan or a Chrysler hemi. What is GM’s unique selling proposition (or FoMoCo’s for that matter)?
My hope when you arrived at GM was that you would build great cars - - not perfect, but something that was differentiated. Like my old college car - - a 400 c.i. Catalina or my uncle’s car I borrowed for my first date - - a long hooded Grand Pix with a landau roof. Or the LeMans my cousin had (told you I grew up a Pontiac guy). I even like the new Torrent, though USA Today just panned it.
Please, I know you can do better and I am rooting for you to do so.
Edwin
Mr. Lutz,
Have you heard of Guerilla Marketing, an emerging trend. Forbes did a story on 1/20/05.
Adversaries seem to have created a word of mouth, guerilla marketing campaign against GM. Your adversaries replay the same stuff over and over until people believe it.
Toyota has an obnoxious commercial that repeats the name Toyota multiple times. Thankfully, GM has more respect for the public.
The movie 2Fast2Furious was an example of a guerilla marketing campaign against GM. Import hot rod shops coopted with theaters to have displays of their import hot rods outside the theaters for the movie 2Fast2Furious. This caused a buzz. Those who floor the inventory of your foreign competition also have an interest in attacking GM in a faceless way.
Enthusiasts hope that GM brass knows what is happening.
When GM had a successful promotion like the MATRIX, your adversaries looked for ways to attack it, with surveys and negative comments. Expect attacks and distortions of GM promotions by adversaries. GM’s successful keep America rolling zero percent campaign was attacked by clever tactics such as the residual value and attacks on GM incentive programs.
At the local level, GM can overcome the media bias through promotions with rod shops, audio shops, car clubs, and having a presence at local car shows, and malls. Audio shops are one influential source for car enthusiasts. The foreign competition has their products on school supplies like folders and notebooks. GM has a few things like this. Will there be a Solstice folders/notebooks for back to school? GM could have its products placed on the covers of cards in card shops, GM toys in Disney stores, and battery powered toy mini cars in mall Kiosks.
GM ought to test giving some Pontiac G6’s to Driver Education programs in selected high schools. GM should seek to dominate the convertible parades for Homecoming around the stadiums at high schools.
The Internet savvy peruse video for entertainment on the search engines. There isn’t much supporting GM products in these venues. Pontiac racing or stunt driver video’s from the speed channel, for instance, possibly video game ads. GM could even make video games about cars like a create your own car game using a GM model. GM could could offer educational streaming video on technology topics for high schools and colleges to use with intoductions showing GM cars. These are simple things GM can do.
Some GM dealers are in declining part of the town and have the dealership walled in by trucks so that the cars cannot be seen.
GM needs to place new dealerships near upper middle class suburban high schools, malls, and universities with better looking show areas. Be visible to this group in areas where GM has lower market share. The foreign competition has surrounded some university campuses, with dealerships and radio ads.
Cars are often displayed in high fashion metro Washington malls like Montgomery mall. Many times there is just one Cadillac, amidst several foreign competitors. GM and Cadillac need a stronger presence in these high income areas. Access to the Cadillac Dealer there is not the best, its walled in by GM’s foreign competition on both ends with not enough space for a great display for Cadillac. Yet this is one of the highest imcome counties in the US. GM should just build some brand new Cadillac Dealers in Metro Washington and have lottery to see which dealer gets one.
Both new car shows and nostalgia car shows take place throughout Florida. It seems to be a popular past time. GM should have at least a video booth at the nostalgia shows like the big one in the Villages, FL which takes place the third Saturday of every month, it draws local media and thousands of people of all ages. At the new car shows in the same locations, the foreign competition has their fast talking half truths, and sometimes get the better locations and show more vehicles.
GM Goodwrench could partner with AAA for service in Florida. GM dealers should be encouraged to be open on weekends in Florida for travelers and service and offer rotating weekends off for their mechanics. This would create word of mouth.
The foreign competition offers capachino in some dealerships and have obnoxious snobby come-ons like “this is Acura.” People fall for it too.
People are talking abou the Lucerne quite tuned ads. They are working.
Enthusiasts realize GM is concerned about America, and economic issues; however, when people see more jobs going overseas, and parts from Asia, it turns people off. Its makes some believe GM is giving up.
GM should be more issue focused on US public policy on trade and health care. People will listen. Start in Michigan with health care reform. GM brass should campaign for a fair trade policy, and make their voices heard in Washington. Go on the talk shows.
People realize without GM’s help, there might not be a US for the middle class.
GM ought to seek declaratory and injunctive relief from the credit rating agencies with a legal challenge to their official recognition status which is probably anti-competitive, violates the separation of powers doctrine, and violates GM’s due process rights. Where GM can meet the substantive requirements of other credit agencies, there is probably a cause of action for GM.
The US is a profitable car market, and the foreign competition and their governments seem to take any tactic to get GM’s business.
Dan
I like the camaro it has the old Roofline and the fat rear fender and the old front end the hole style of the camaro is very good and right on the 1967 to 69 style of the
old camaro
Bobby Liddell
I recently purchased a Chevy Silverado with a 4.3L and manual transmission. My first car was a 1961 Impala, and I have owned four other Chevrolets, but this is the first one I have purchased in 21 years. I am extremely well pleased with everything about it–especially since I regularly get 23 to 23.5 mpg. It is solid and well made, and is bigger, roomier, more powerful, more comfortable, better looking, has a greater payload, better ride, etc., than the Nissan pickup it replaced, and which only got 25 mpg. My only regret is that I waited so long!
RSK
A Product is a reflection of its maker…
Symptom: GM’s poor performance
Illness: GM cars don’t appeal to the market.
Cause: People creating the cars don’t understand the market.
Solution - Solve the people problem.
Your company needs a Strong prescription for company’s illness: Natural-born Innovators. They not only understand the market but also are on the cutting edge of it. Understand the phrase “You either have it or you don’t” and you will understand what is a Natural-born Innovator. Why the need? World market is more innovative than ever, lead by these innovators. Compared to past, today’s market is on an incredible accelerated learning curve due to unprecedented level of communication and it’s not going to subside, because, it is now the norm. Your company’s performance confirms your use of outdated business models, formulas, methods, old world politics and insanely repetitive reorganizing. You need formulas and methods developed by innovators for today’s market. Minimumaly, your company has not grown in parallel to the market, hence, the writing on the wall. You need to be ahead of the market’s curve. You are an industrial age company, trying to find it’s way through the information age. However, you need to be where it really happening > Welcome to the new age of Innovation.
GM still has power under the hood but needs these innovative drivers familiar with today’s track. Current crop of execs don’t know how to drive this track because, it’s not a way of life for them, even the young ones don’t know. They are not natural-born Innovators! The proof is in the pudding. FYI, don’t kid yourself by spin doctoring up their resume either. You are pi**ing off your employees and that’s not helping company morale. Words out and they are on to you. Your current execs are all looking in from the outside using published (old) data like it’s one of those “for dummies” books. FYI, your competition has same data, therefore that won’t help you get ahead. You need an edge over your competition. You need innovators familiar with the new market.
Where to find them: Internally, that’s easy, you will find them where they naturally gravitate. In your company’s case, look where your concepts are hatched or where the creative ideas start. You will recognize them because, they look just as unfamiliar to you as the market you want to reach. Externally, that’s a little more difficult because, you need somebody who understands the market from a car perspective and vice versa; and knows when to bias one way or another.
Find these people and use them wisely. Give them room to breathe. They will give you innovative products, services, business models, marketing strategies…that get in touch with the market.
Anything less will not be a strong enough prescription.
I wish you good health.
SteveG
How about letting people know that buying a Toyota or Honda or Hyundai made in the US does not make it an American car?
Advertise the domestic content of their cars vs. GM’s.
Increase your warranties immediately.
Re-do the Malibu’s interior-sorry to beat a dead horse but you cannot wait even another year without improving this car.
Get some more elbow room in the Cobalt-even if you have to get rid of the storage compartment on the door.
Get a tilt and telescoping steering wheel in the Cobalt. (and Impala) (and HHR), etc etc
Most of your vehicles are too heavy. Try designing them more like the asians do-light and nimble.
The Aveo and all the GMDAT Suzuki’s need bigger engines with better gas mileage.
Make sure all Power Window switches are placed on the door from now on-not the center console.
GET RID OF THE ELECTRIC STEERING. It stinks, it gets lousy reviews, it just doesn;t work. Why do you insist on using it when you know it stinks!?
Honestly, I don’t know whats going on with you guys sometimes.
rsk
Here’s your bigger idea/solution for the company image. You need the Innovators to accept or help you with your image. If you can win these guys over, they can help win anyone over. See my previous post regarding “Natural-born innovators”
Tom W
I kind of feel bad about pointing this out Bob, but your second and third paragraph are a perfect example of the problem.
In your second paragraph, you list the complaints GM is weary of:
-”GM doesn’t have any vehicles that people want”
-”GM doesn’t excite anyone”
-”GM doesn’t have any products that are relevant”
In your third paragraph, you seem to be trying to counter these complaints with the following response:
“Our cars and trucks have clearly improved, and continue to do so. And so has our quality and reliability. We have documented countless surveys and awards that bear this out, often right here on this blog but elsewhere as well, from Strategic Vision to J.D. Power to the Harbour Report to awards from various publications and organizations”
Let’s look at this point by point.
-You say your cars and trucks have clearly improved. This is a vague statement. Improved in what way? In a way that addresses the complaints you listed? Except for a couple vehicles, I don’t see it.
-You claim your quality and reliability has improved. Again, that does not address the complaints you are weary of.
-You wave survey results in the air documenting success. Unfortunately, your success is in areas that don’t address the complaints.
I don’t think GM will be able to talk or spin it’s way out of this situation. Actions speak louder than words. Try something different. Hire some psychologists to study why people buy the cars they buy, and then actually use the information to develop new cars. Stop trying to play it safe by following trends. Start a few.
And do WHATEVER it takes to get rid of the UAW. There are a LOT of people that would assemble cars for half of what you pay those thieves.
Bake
I just turned in my 3 yr Saab 9-5 after being told by Saab Finance that they could care less about negotiating a new lease, they were not part of GM, and blew me off. (My dealer suggested I negotiate with them to get a better deal than he could provide). So I looked at the new 9-5s anyway at my dealers and saw it was the same car as my 2003 model. Virtually nothing has changed. Then I visited Acura and found for just a little more I could by an RL with all sorts of technical wizardry including a much better GPS, XM radio, Bluetooth, a terrific sound system and a much more up to date vehicle. So after 20 years I moved from Saabs to Acuras, even though the 9-5 was a great car (in 2003).
Cleveland Joe
Dear Mr. Lutz,
As an automobile enthusiast, I have to say that GM’s products have gotten exponentially better in the last 5 years. There is still lots of room for continued improvement, however.
One of GM’s top priorities, as has been well documented on this blog, must be to improve the image and perception of GM as a company. As far as perception goes, I won’t even bother reviewing the many facets which have already been discussed here (long term reliability, refinement, etc.), but rather intagibles and subjective points which rarely get any attention……
Lexus is continually the best - the BEST - at customer service and dealer experience. Their sales and service rankings are second to none. I have personally experienced it, and have compared it to personal Cadillac experiences, and I will say that there is no comparison. GM must advise, teach, and coax all Cadillac dealers to offer things from a free car wash every weekend, warm cookies and coffee in the lounge, to first class treatment when making the purchase. Their salesmen should be trained to not sell, but rather help the customer shop (i.e. less pushiness and more friendliness). I submit that Lexus salesmen are less “car salesman” and more “personal shopping assistant”. When you drop your car off for an oil change, there should always be a free loaner of equal or greater value available immediately. Free pickup and drop off to home or office with any service. And most importantly, if you have a problem with your car, the Cadillac dealer and GM should take it upon themselves to make it THEIR problem. You shouldn’t have to keep calling, badgering, and complaining up the ladder of incompetence or threaten legal action…… with Lexus, even if you have a problem they have never heard of, they will not give you your car back untill it is fixed right, the first time. And, there is no need to even speak with the desk supervisor, as your car will come back to you, problems repaired, in as good or better condition than you left it.
The long and short of it is that GM dealerships, any marque, do not know how to take care of customers. Before, during, and after the sale. Lexus is exemplary, and their methods should be used and copied by all GM dealers, regardless of whether you are buying a $14,000 Cobalt or $80,000 XLR.
Of course, the quality of the cars must improve. But if you don’t want to loose one more customer, start treating each and every one like you would treat your own family member. Then, maybe you would have an idea of what is needed to improve GM’s image.
Thank you.
Cleveland Joe
I wish to add one more quick point to my previous post:
My friend who owns a 2000 Honda Accord V6 coupe had his alternator go bad with 41,000 miles on it (5,000 miles out of warranty). He spoke to Honda customer service, telling them he bought a Honda because of their reputation for reliability, and was dissapointed the alternator went so soon. The customer service rep agreed, and in a week he had a refund check for $325.00 - the full parts and labor cost to replace the alternator.
I ask you, Mr. Lutz, does General Motors and all of their subsidiaries have it in them to change the way things are done and go this extra mile?
You better believe my friend is a Honda customer for life now.
kurtW
I agree, Bob, that GM cars have improved and are better than ever before. Kudos for the hard work and results!
But remember, we OWN cars for quite a while (9 years is the average now). Has GM improved ownership experiences? Not much, if any. GM cars still have some of the shortest warranties around. There are few real opportunities to add new features other than replace the entire car. And the mantra “we can’t do anything because dealers are independent businessmen” is tired, stale, and counterproductive.
Try really doing something about the GM after-sales experience, Bob!
Add a little more length to the warranty (mileage, especially). Offer some after sales accessories like ON-Star or other stuff besides bling-bling. And work with your dealers to improve the service and sales experiences (including canning the bad ones!).
THAT will convince this GM owner you folks really want our continued business!
Steve S
Mr Lutz,
GM clearly needs to keep working hard on changing people’s perception. I think that you need to emphasize some of the latest products and have one Ad campaign from GM with one Gem from each division (for example Solstice, Lucerne,Corvette, STS,etc). I have actually read several extremely postive reviews on the Lucerne and you need to Capitalize on those reviews. Get some influential people from the sports world involved, touting the GM product line (Derek Jeter, Shaquille O’Neal, Lebron Janmes, Peyton Manning)as well as Tiger woods promoting the GM product lines as well as the awards it has won. Personalize your ads with Senior Gm personnel like yourself in the Ads, going on the offensive as well as communicating to All Americans the Value of Buying American.
There is clearly a huge mnedia bias against GM and all of the big three, no matter what is said or done, this company never gets the benefit of the doubt.
So personalize your vehicles an tout the quality and awards one (unlike myself many average Americans have no idea of the high Buick JD Power survey results). I tell at least 10 people a week the virtues of Buying American, especially GM, and I am a proud owner of a 2006 Pontiac Torrent.
I think Gm is on the verge of some good Things. Thanks
William Lanteigne
I’ve given this some more thought. I think the problem is not just that we, the consumer, haven’t understood the messages about improved quality at GM (and other domestic car companies), but more to the point, car company executives haven’t understood the nature of the changing automobile market.
How many of your top executives are car enthusiasts? How many actually enjoy their own, personal car collections? How many are hot-rodders, how many are sports car nuts? Are any of the top 20 people at GM enthusiastic NASCAR fans? What do the people you see every day drive to work? How many of the people you interact with daily actually drive themselves to work, and how many have chauffeurs?
Try conducting an informal poll among the poeple you see every day, to answer these questions- What kind of car do you own? What is your favorite car of all time- and why?
The problem, as I see it, isn’t so much that the consumers are out of touch with GM, as GM has lost touch with the car-buying public, and if you are serious about retaining market share (let alone reclaiming any you’ve lost), you don’t have room at the top for people who aren’t diehard car nuts.
Talk to your engineers; ask them what it would take to make a Chevy Cavalier handle and perform like a BMW 325i, or a Buick Lucerne to handle and perform like a BMW 760i (BMW executives are rabid car enthusiasts).
Make those upgrades standard!
And I have to insist, stand firmly behind everything you sell with the absolute best warranty in the industry.
Chris
Bob,
First of all, thanks for the blog.
Regarding GM providing cars people want, all I can say is that the Corvette and CTSV are the only 2 I would want. Maybe a full size truck because of the powertrains, but that would be more of a need.
A few suggestions:
1) Stop serving up front drive versions of past nameplates. Impala’s, Monte Carlo’s and Chevelle/Malibu are supposed to be rear wheel drive. Period. Those of us who are old enough to remember these are only offended by this. We are the tail end of the baby boom generation and have money. Those behind us with money wouldn’t care what you call it.
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2) Build the Camaro! Do it fast, you already have the platform. Lose the comic book front end and rear facia. I have pictures of my restored ‘69 I’d love to share.
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3) Pretend to be a car shopper and take a PERSONAL look at competing models. Compare a Tacoma to a Colorado. Test drive them both as a consumer and ask yourself which you would buy. Take notes and put your foot up the butt’s of people until they get it right. Do the same with all models.
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4) Fix your dealer network. Going to a Chevy dealer is a sleazy experience.
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5) Become a CAR company. Focus on products not marketing. Be bold sometimes and build something just because it’s right, bean counters be da**ed. I’m not talking SSR here, that is a niche vehicle, but use that bold spirit on other models like you did with the Solstice.
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6)Crappy interior quality does just not cut it with today’s consumer. This is the first thing we see when we test drive a car/truck. This swayed my decision when I purchased my 4 door Tacoma. At the time Chevy was still selling a very long in the tooth S10. Ditto for Dodge and Ford models. You know what they say about first impressions.
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7) Loose badge/platform marketing across brands unless there is a significant past history to it. I don’t mean a cookie cutter front drive platform here like the Impala. Here is an example. IF you decide to build the Camaro, a Firebird might be nice if you make it genuinely different enough just like ‘back in the day’.
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Good luck. I really want to buy a new Camaro. Make it more retro in the front/rear styling and I will. If not the new Challenger will be in the garage.
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Sorry to sound so negative.
Jerry Zeman
Last weekend, I took the family down to the Chicago Auto Show. My main mission was to see the new 2007 Avalanche in the flesh. Went, and saw………from a distance. So did the Chief Financial Officer, and she didn’t walk away with any flame in her heart that we needed to trade our current Avalanche. The general consensus was that our current Av meets her needs, it is reliable, practical, and paid for. What she saw in the Tahoe (remember, we couldn’t touch, sit in or feel the AV), while very well done, just didn’t ignite the passion to get another sale for GM. To sum up the experience for GM, you missed a sale opportunity. Went to touch and feel a truck, and instead saw a truck and skirt on a pedestal. You should fire the stupid SOB that planned the AV introduction. See ya in six years plus, when GM will still be flogging the “new” Avalanche styling.
So, with the wife underwhelmed, it was time to start exploring my dream. But first, some background.
Last year when GM was kind enough to divest my current employer, I had to purchase a new vehicle since I no longer would be a participant in the GM PEP program. I bought a 2005 Honda Civic EX SE, with a manual transmission. Nice vehicle. Not a great vehicle, but certainly better than the Saturn Ion with it’s assinine gauge cluster and poor reliability reputation. Paid the same price too, even with a GM employee discount and incentives factored in. I would have liked to test drive a Cobalt with a manual transmission, but within a 30 mile radius of Chicago, there wasn’t a single manual transmission equipped Cobalt to test drive. So, I had to base my purchasing decision on the Cobalt’s evil twin. Bottom line, another missed sale opportunity for GM.
Well, I’ve been lusting after an Acura TSX since it’s introduction in 2004, so I wanted to beat feet over to the Acura display at the show. But, still having a soft spot for GM, I looked over the latest GM offerings first.
When I saw the new Lucerne in an add recently, I loved the styling. Then I sat in it. Felt just like the GM PEP vehicles that I suffered through (there were always plenty of Centurys in the pool). Yea, the interior was nicer, but at the end of the day, the vehicle didn’t impress me as anything more than a reworked Century. Same geriatric woodgrain, ho-hum driveline too.
You don’t offer a manual transmission with the performance model either. No market you say? No problem, Acura caters to that niche.
Yesterday, wandered over to the Acura dealer. They just got a TSX 6 speed without navi off the truck. The Honda Civic is gone, and the TSX is now sitting in the garage stall it used to occupy. It goes back next week for about $1600.00 in dealer installed “visual aids” (front, side and rear bottom spoilers, rear wing spoiler, and moonroof visor).
And, drum roll please, yet another missed GM sales opportunity.
I’m sorry for this rambling post, but there is a point that needs to be made here.
I worked for almost 22 years for GM. When I was employed by GM, I bought GM (and darned frequently too). But, even though you make good, and in some cases great vehicles (your trucks are best in class), you still miss the mark at illiciting passion even from this former GM family.
I have a 21 year, 8 month pension at risk with GM. I have more reason than most people to want to see GM succeed. But, I’d rather put up with getting 50% of my pension from the Pension Benefit Guarantee Board than have to suffer through mediocrity in my vehicle purchases.
Oh how I wish that GM would just “get it”. Unfortunately, GM’s upper management, and the risk adverse, consequence free mindset that permeates GM like a disease, leaves GM ill-equipped to survive in the long term.
Fire Wagoner, replace the board (except for York), and pay whatever you have to to hire Carlos Ghosn from Renault, and then, GM might just have a fighting chance at survival.
Kenneth W. Hill
Mr Lutz.
GM dose not have a problem with quality, performance, or brand recognition. What they have a problem with is the lack of attracting the youth of today to affordable performance rear drive cars that will double as the family hauler or room for three buddies on a road trip. My first Chevrolet was a 1970 Camaro with a two barrel carb and a automatic transmission. I had so much fun with this car that I stayed with Chevrolet just out of memories of long past days. It was a car to help me attract my wife and it had a back seat to allow the family to grow. Every thing necessary for a young man to enjoy his youth. Now you give me a chance to buy these memories once more in the form of a SSR. I passed for many reasons but mainly because I could buy a loaded C1500 Regular cab with no back seat for almost half the money, while the bed on the SSR offered nothing of value.
If Chevrolet / GM would have built a retro Chevelle, Nova, or Camaro with a back seat I would have been driving it now. All that money into a limited production vehicle that attracts very little market shares is what it is “LIMITED PRODUCTION”. The same chassis with a retro 67 Malibu Body could have reached many a young family while still leaving the door open to the El Camino line in the future if GM felt they needed a retro truck. Chevrolets big V6 would have been a fine entry level motor. The door would have still been wide open in the high end performance package if the customer had the money..
Mr. Lutz give me the equivalent of a 64 Nova style body with a V6 - 5 speed to run with the new low end Mustang or a 6 liter V 8 and a 6 speed to trash the GT with and I’ll be back to buy it. But it needs to have a back seat for the Grand Kids and / or friends.
Sincerely
Ken Hill
Camino LS6
Unleash the Zeta-lites all at once with enough fanfare to turn the automotive world on its collective ear. If there will be as many variants as I suspect, people will flock to dealerships simply to see them. I believe that no other architecture in the pipeline will have a greater effect on both sales and public perception of GM.
Otherwise, interact with the public in every way possible and do it all the time. learn from it and use that knowlege immediately. Ride and drive venues should be everywhere, all the time. Contests and events are critical, you need people standing next to GM cars as often as possible. The internet and media promotions and advertising can’t give the visceral response that seeing and touching a car up close can.
Be proud of past models and present everywhere they are celebrated.Americans still love cars, give them some new ones to be proud of and they will sing your praises.
John
Another big idea?
How about responding to people who apply to work for GM?
Let’s face it, while Bob Lutz is a pretty solid guy, and the assembly line workers are some of the most productive workers in the world, GM isn’t exactly overburdened with white collar talent. (see e.g. the Aztek, looming bankruptcy, electronic power steering, too many front wheel drive cars, lousy interiors, lack of benchmark vehicles, etc., etc.)
Now there are lots of us out here, with skills and degrees and the kind of passion for GM cars and the amazing possibility of what General Motors could be that leads us to read and post to this blog and even set up blogs and webpages of our own, celebrating GM cars or showing how GM can do better.
Some of us have even gone to http://www.gm.com/company/careers and applied to work with GM.
Unfortunately, once you fill out the application form at the GM website, that’s where everything stops.
There’s no contact phone number or e-mail address to follow up with, and no way to contact someone at the GM Talent Acquisition Center to find out the status of your application. I applied for a job over a month ago and haven’t even received a postcard or an e-mail letting me know what the status of my application is.
This process could definitely be improved.
I’m not asking you to hire me, even though I’d ABSOLUTELY LOVE to work for GM. I’m not even asking for an interview, although I could be on the next plane to Detroit.
All I’m asking is that you let me know the status of my application.
That’s not too much to ask, is it?
Bill Aston
Please distribute “Edwin’s” post of 4:51PM Feb 18th to every advertising person and everyone in promotion and sales.
Tie this in with the equivalent of the “Lexus Experience” and you will sell some cars!
Joe Doran
Dear Mr. Lutz:
My issue with GM is simple, legroom. I’m 6′7″ and drive a 2002 Escalade with 41″ of legroom (not enough) . I drove the new STS, no leg room. I had high hopes for the new line of SUV’s. Again, 41″ of legroom.
Bottom line, no legroom, no sale.
SteveG
You want instant positive media?
Fire Rick Wagoner and hire
Roger Penske.
Bob Zeliff
Your cars and trucks have gotten better, but so have everyone else. Do you really stand out??
I think you have too many brands, chevy /GMC chevy /pontiac/buick that each offer several models that overlap..but are mechanically the same. This no longer works..even VW and Audi are learning this. Focus each car on it’s market niche and make it the best! Best features,best performance, best price, best reliability in the niche.
I have a CTS V, I’m pleased but I’m counting on you to make it better (especially the interior) so I can justify buying another in couple of years..BMW and Mercedes are moving the bar..you need to too.
Same thing when I replace my S10 ..right now the Tundra looks better.
Your dealers need to focus. Dealing with a salesman who was selling a Vibe and my CTS was not the best experiance!!! for either customer.
Last thing…GM senior management seem bloated, to concerned with status quo, yseterdays problems. I think if the number of mgt people were cut in half things would get done better.
Chosing the half to keep is the challenge.
Californian
If GM were to produce a lightweight rear-wheel-drive sports coupe/hatchback, then all your troubles will be solved.
Rene Curry
Try marketing the design team like super stars. This should occur immediately after the launch of a new vehicle. Figure a way to get some branding from this. There are so many ways to take this. THINK! THINK! THINK!
Rene Curry
Here’s another…Offer a FREE high quality model car with a test drive. Must be a qualified buyer.
Have a new model every 2 months. Market this to the kids, teens, and the like. The kids could drag an import only Dad or Mom into the dealership.
Make it easy without too many strings attached so they won’t be put-off by the dealer experience. This should tie in with the “Design Team Super Stars”. If it works, you can offer different items than model cars.
I figure you only need one sale per 300-500 test drives to break even.
No toasters unless tongue in cheek!
uvaeeman
Defninitely agree with earlier statements - badge engineering a car that’s far from best-in-class is not going to help. Now if you get a hands-down winner, that is better than any car in the world and sells like hot cakes, THEN consider giving it to another brand, but make sure it looks different and follows the brands mantra, or whatever.
Maybe give interviews to gminsidenews.com, and other fan sites.
Also - check this out (better batteries): http://www.mobilemag.com/content/100/354/C6541/
Jumping on a superior technology like this can only help you. If you’re rediculously class leading but for the same or less money, word of mouth from fans will start to help. For example - “Why would you buy a Toyota Hybrid? The technology is soooo 2000. The new Hybrid from Chevy/etc has superior batteries and a two mode system to save more gas.” or “Why would you buy a Camry instead of an Impala? Impala is bigger and more powerful for less money (if you could definitively add reliable and cool looking, that would be better).”
I notice more and more that GM brands are sponsors of more and more stuff - from a sports commentary to being a sponsor inside an X-Box game. Games can be good - maybe you should push harder to get hot concepts into video games. Lots of people like street racing games.
Maybe you need to have more local events, that are heavily advertised, to show off GM products that clearly beat the competition (just winners). Do them across the street from the competition. Or when the competition is going to have some major sales event, do the event at a local arena - let people drive the “best”, and then give them some major coupons to go buy one (or any GM car). OR - you could do something like give them a coupon for a free warranty upgrade if they buy a GM that weekend. OR a coupon that entitles them to any GM vehicle for MSRP (many dealers overprice hot cars - making them cold). The dealers have to stop making a bad situation worse!
Merrill
I have to laugh about the dealer experience complaints. The last time I went to a Toyota dealer it was an extremely poor experience. TALK ABOUT CHEEZY AND HIGH PRESSURE.
noel park
You may be tired of hearing it, but get ready, there’s plenty more coming.
Did you see the article on the front page of the Los Angeles Times last week about the Honda Fit, the Toyota Yaris and the Nissan Versa? They are getting ready to kick your butt again.
Note that the Versa has an available CVT, and supposedly gets 39 mpg combined.
How about bringing back the Metro with updated engine management and a modern automatic - CVT? You could get Prius like gas mileage right now. Have Pratt & Miller or somebody do a weight reduction program - composite hood, deck lid, and doors for starters - ad do even better.
How about a similar Cobalt?
24 mpg city and 34 highway is not going to get it. Gas is going back to $3.00 before you know it, and GM showrooms will be ghost towns.
The LA Times had ads this weekend for hybrid Toyota Highlander SUVs for $6000 off MSRP. This is not the way to go. People want high mileage bragging rights and savings.
Show me a 50 mpg (real) Metro, Aveo (choke!) or, best of all, Cobalt, and I am there with the cash. Otherwise, the cash stays in the bank.
Good luck. We are the GM faithful, but THE GROUND HAS SHIFTED!
Jon Sullivan
Mr. Lutz, word of mouth is exactly what is needed, this blog is great but outside of car people few know that it is here. I think GM needs to hit the streets especially in import dominated areas with more test ride and drive campaigns with our new cars and trucks. Maybe as part of the word of mouth campaign have a promotion where if you buy a new GM car or truck and you bring in a friend to test drive a GM vehicle , GM would give you an accesory for your vehicle and if they buy one GM will cover one payment on your lease. You could brand it “bring your family into the General’s family” or something warm like that. Also I agree that the new buyer and entry level vehicles are crucial to GM’s success, but not every college kid and teeny bopper wants some cutsie scion-esque econo-box, in fact I’d say that given the option between that and a used vehicle alot are choosing the used just because they don’t want to spend 15 grand plus on a vehicle they dont really want to begin with. As a person who this actually happened to , this kind of irritates me, when I was choosing between buying a new vehicle with a warranty and that new car smell there was nothing in the 16-20K price range that I actually wanted, I choose a 2002 Silverado HD with 45K on it over a Cobalt or S-10/Colorado because there is nothing in that price range that I would want to drive over this truck. What GM needs is just like the 2 door Chevy K5 full size Blazer Concept from a few years ago. We could have a base model with two wheel drive and the 4.2 L I-6 for $15K and have it max out with a 5.3 V8 and leather for no more than $24K, with lots of 4.8 liter 4X4’s in between for $18K. Give this an inovative interior thats high quality and cheap to build and a tough looking exterior and you have a vehicle every adolescent male will aspire to own because it will be cheap, high quality, has a warranty and they can drive thru the mud in it, hook up a snowmobile or quad and be confident it will get them home looking cool.Most of all people are going to buy it not because it’s there, but because they want it. Toyota missed the mark with the FJ cruiser, if it was little cheaper and had a bit more bite they’d have a hit. Now that I’m almost out of breath I’ll get off my soap box, this company is far from done, but it’s also time to start making money soon.
Steven
I love GM, and I’m continually saddened to see the General literally die a thousand deaths.
I find it interesting that you feel so strongly about “awards” and point to them as a marker that things are improving, then conversely wondering why GM’s consideration levels are low and then stating that GM does in fact make relevant cars/trucks because GM has got more than 25% of the market - well, GM may well have more than 25% market share however, that’s clearly not enough to put a dent into changing the psyche of the car buying public.
The automotive market place is more fragmented now than it’s ever been however, GM is not responding in kind with relevant product, execution, and communication circa 2006. GM has at best become “fast followers” not leaders - the Z06 and Solstice cannot carry GM all on their lonesome, and even though they represent great value they are relatively low volume vehicles and they are still NOT perfect, and unfortunately this is exactly what GM needs to do to get out of this mess - GM cannot afford to launch an imperfect vehicle. It has to be head and shoulders above the rest in every regard. You HAVE to blow all the stops in regards to product. And the product has to be relevant - and what is relevant?
Relevant is Total Segment Leadership.
GM has an opportunity here, a last chance/stand to rise above and lead - to throw down a deep commitment come hell or high water to LEAD at whatever cost. For example show your intentions, instead of hiring more Accountants you might want to hire instead the BEST designers - create the ultimate ALL AMERICAN DESIGN SUPER TEAM - you might want to start with Chris Bangle and Chip Foose and give them whatever they want to jump ship.
And take a look at creating real American Luxury not European and/or Japanese - have you ever seen the finest American Crafted Furniture made by true Made In The USA craftsmen? No one in the world can touch them. Why do we need to turn to the people that kit out the Maybach for the Cadillac STS-V, this is unacceptable. If you’re going to differentiate, then do so properly - I don’t want Maybach, I want Cadillac.
You’ve got brands like Chevrolet, Cadillac, GMC, Pontiac, and Buick that are iconic but GM is NOT doing these brands proper justice.
To the car buying public at large, and to the Automotive Intelligentsia GM doesn’t make passionate relevant well turned out vehicles - there’s always a 1/4 or a 1/3 missing somewhere - it’s never 100% and it’s been like this for GM for too long.
Take an honest look at your vehicles, and you’ll see for yourself - we certainly do - there are too many holes where people can point to. Again when BMW builds any vehicle for any segment - they build the BMW of SUV’s or the BMW’s of small cars etc. etc.
Again, I love GM - I want to purchase GM but I’m not going to spend my hard earned dollars on something that isn’t 100% - this is why the imports are gobbling up market share, they give me 100% and more. For heaven sake, not to slag Hyundai however they’re able to make a well turned out vehicle. This does not make GM look good in the slightest - an upstart kicking sand in GM’s face - when is this going to stop? How much more consideration would GM need to understand this, and this but just one example, do people give consideration to anything remotely sub par, given a choice? Of course not.
Enough of the public laundering of GM’s Healthcare woes, and the UAW, we know they’re serious - tell the world instead how GM is going to make the best d**n cars and trucks, period. Trumpet a final warning to your competitors - enough is enough - the General is back, and playing for keeps. Don’t just show your intention, act on it.
How many times have I felt like calling you up personally - flying over to the RenCen on my own expense, knock on your door and tell you face to face how it is, and what you have to do and how to do it - but I fear you’ll ask for some quantitative data, and tell me to prove it and of course I won’t have the quantitative data to support my claims, and then you’ll tell me to shove off and head back to Canada.
Bob, it’s not about the numbers - not now when so much is at stake - it’s about heart, it’s about being intelligent, it’s about Leading with conviction, it’s about hiring more passionate car people who live and breath cars - like me.
Please no more well turned out vehicles that would dominate if we were in ’80’s and/or 90’s. This is 2006. Give me passionate class leading vehicles, and passionate out on the limb advertising/communications. Tell us all what is unique about GM and its brands and it’s commitment to the people that WANT to buy them, and buy them again and again.
Perhaps then we’ll meet afterall…
Ted Thomas
Your advertising campaigns definitely need some help. People at stop lights pull up next to my G6 GTP Coupe all the time and say “Cool car, what is it ?”, which means your ads just aren’t getting the word out. Remember those Pontiac Excitement ads where the cars were shown actually driving, in motion ? Those were awesome ads, which gave people a great view of the car that they would remember!
eaton53
“Lexus is continually the best - the BEST - at customer service and dealer experience.”
Hmmmm…. J.D. Power says in their 2005 CSI survey that Lexus is not only not the best, they’re not even 2nd or 3rd best. Among GM makes Cadillac and Saturn both beat ‘em.
Jeff Crew
Hey Bob,
I saw you on the Leaders on Leadership - very good stuff. Your comments here show exactly where your products are missing. The cars that are winning the awards deserve them. These cars are not the middle segment of the market place. They are niche products with great engineering and integrity put on them to be halo type products. You need to start winning the Car of the Year awards with your mainstream products that are available to all of us that need efficient daily drivers. The vette, solstice, and hummers are very cool products. The Malibu, Impala, G6, Allure/LaCrosse, are all boring middle of the line cars that have little over the competition. I do like the G6 GTP Coupe based on the styling, but it got carved in its sedan form when placed in a competition in the February issue of Car and Driver. I know I don’t have to tell you this, but it always comes down to product. The details that you look after on the award winning cars also need to be looked after in the mainstream cars. I know the products you have are way better than in the past, but they are just getting caught up as the competition are moving on. You need to leap forward, and I hope the Aura is the first car to do that as I was very impressed with the appearance of the car. You need a mainstream hit that slices the market down the middle. This will build the momentum you need in the market and turn around the negative press and gloomy forcasts surrounding the GM brands. As for the marketing and PR efforts. Be honest in what you say and do. State bold and clear facts about what is going good. Marketing gimmicks and tag lines are not getting through the clutter. The value pricing makes sense and needs to be nurtured. Give more value by increasing more of your warranties, not just the luxury brands. To catch the attention of the younger age groups - Create a Myspace account for each brand you are aiming towards trend setters. Hummer, Saturn, Pontiac, would work. Turn on some original creativity… it may be viewed by the members as corporate pandering, but every new and up and coming band in the world is on the site doing the same thing. Thanks for the time and good luck!
Mike
Talk to the people, so many people get info on the internet,info that leads them to buy. Get people out there and talk to them. Great GM sites are out there where people live and talk GM 24/7. Some of my favorites:
http://www.ls1tech.com
http://www.ls1.com
http://www.regalgs.org
http://www.zr2.com
http://www.mys10.com
http://www.ls1gto.com
http://www.gmfullsize.com
http://www.corvetteforum.com
http://www.s-series.org
http://www.s-10plant.com
http://www.sscobalt.com
I could go on and on, people talk about what they love and what they hate. So put GM on the boards and have them talk to the people.
This site is a great example but nobody knows about it.
Eric M. Vest
I think your recent advertisements are moving in the right direction. For example, the Pontiac G6 advertisements that contain factual information on this car’s Strategic Vision award and features the G6 has that the competition does not offer. This factual information with an emotional appeal to compare GM’s cars to the competition is the right direction. Remember Iacocca’s “If you can find a better car buy it.” I think this Chrysler advertisement was effective.
Also, GM has a history second to none in the automotive industry and business in general, but for most of its history, GM has been disinterested in capitalizing on it. Mercedes Benz has benefited from capitalizing on its history. GM has produced some of the most collectable, significant, from both a technical and design stand point, cars of all time. GM developed the first electric starter and lights, synchromesh and fully automatic transmissions, first mass produced V8 and ohv V8, styling studio, automotive finance company, etc. I think GM should sponsor an “American Experience” documentary on its history. GM has sponsored many “American Experience” Ken Burns documentaries in recent years. A well done documentary would put a human face on GM. Billie Durant, Al Sloan, Harley Earl, Charles Kettering, Henry Leland, Donaldson Brown, Pierre DuPont revolutionized automobiles, the automobile industry, and business in general and are compelling, interesting people. GM and GM’s William Knudsen played a very large role in winning World War II. GM’s story really needs to be told.
shrek
Bob,
Marketing is not my cup of tea. I don’t believe in shortcuts on “educating” your customer. If you have compelling products and keep your products compelling for years to come, people will figure it out eventually. Don’t they call this “branding” in busines?
I can offer you some perspective on why people don’t even look at GM when considering vehicles. Remember the poor reliability and quality of GM vehicles in the 90s? A lot of people got bitten and took their business to imports. Well, these people are still around, they haven’t forgotten their experience, and they are still teaching their lesson in choosing cars to all of their friends/family. I have never been bitten by lemon cars from GM, but I grew up hearing about lemon car stories from domestic brands. The message “domestic = poor reliability” has become well understood among my friends, even though none of them have never owned a domestic car (their first car out of school are all imports).
So, what have you done to change that image? Or specifically, what have you done to make GM cars compelling to people who take reliability as a big factor in buying cars? You said GM have improved reliability, but auto survey (consumer reports) still rates GM below Asian imports year after year - which reinforces the image of poor reliability already existed. My suggestion is to take one GM brand, make cars of that brand more reliable than imports, price them reasonably, and keep doing it for a few years. By doing so, you take back the business from reliability-conscious buyers, and more importanly, put the idea that GM can make reliable cars into the minds of many skeptics. This is not a quick way out for GM’s current mess. There is no quick/easy way of reversing a tarnished image.
kurt
I totally agree Toyota has blown it wrt dealers, which routinely land at bottom of customer surveys. Lexus dealers are on their way down too (ones I’ve visited were downright nasty).
You know what their real problem is? Arrogance. The attitude that “we know it all and you know nothing, and once you buy our whatever, we could care less about you”.
Trouble is, Bob, we know more now, thanks to the whole revamped media experience via the internet. Just the product is not enough any more. If you reduce the preceived arrogance surrounding GM (and there is plenty - customer support people that provide no answers, TSB’s hidden from customers), that alone will help!
As for Those posters who believe GM salvation will be via a RWD, cheap car? Huh? Those cars are already out there - Chrysler and Ford have ‘em! You’ve a long model cycle before yours get there, and once they do, our admittedly trendy market have decided RWD isn’t all THAT great, or has had its fill from Chrysler and Ford.
I’m not saying dump the RWD’ers. Build ‘em! But until those __get__ here, try some other things to enhance the GM position! Adding OnStar as standard is an excellent idea!
So would be some warranty tweaks and many of the ownership/dealership enhancements others have posted here.
Finally, please resolve that situation with Delphi! That’s throwing a huge shadow over GM; who wants to buy a car from a company that may go bust?
Bill
If you’re going to have a G5 coupe, you better d**n well get rid of the Cobalt coupe. There is no excuse to have both. None.
Will
There’s no need to look for an effective tactic or gimmick to change public perception. gm lost its reputation over the course of many years delivering subpar product. it will regain its reputation, not when company execs tout its great lineup of cars, but when the general public does. why keep asking how you can get the public to recognize the improvements you’ve made? the premise behind your question is that there might be some marketing or advertising ploy that can be utilized to get the public on your side. i’ll give you a better approach….redouble your commitment and efforts to be best in class, not merely competive…..in other words, always strive for 1st place, don’t ever aim for anything less
Byron Chun
Bob,
Thank you in advance. I’m glad I found a way to contact you/”the boardroom” from here. I am a former GM owner. I have two non-hybrid vehicles (brand not important) that both get 28 MPG or better. I start with gas mileage because the consumption of gasoline is the problem with GM cars. My opinion is that GM (and all other manufacturers) should offered “real world MPG” levels of 50+ MPG across all vehicle lines (trucks, autos, SUV,etc). The current 15 to 20 MPG should not be the norm. Yes, I am suggesting true hybrid (or better) capability for all vehicles for two reasons.
1) GM is already losing 6 Billion a year. There is no reason not to spend two of those billions to get a true hybrid line (compact/mid-size auto, SUV, and pickup) in the market in 1 year instead of losing 6 billion and doing nothing except burning it through ad campaigns for “how fast the STS goes” or other cost-center operations. Sorry sales/marketing folks. I like the flashy ads, but I am speaking as a process efficiency engineer right now. One year is possible to do if you keep your teams small and focused. Bloated teams are a major cause for bloated project budgets.
2) GM vehicles have the space in their larger vehicle design to add batteries with mimimal change to the design. You would be surprised at the amount of empty space under the hood when the 350ci block and transmission is yanked out. Small vehicles are trickier but not unmanageable as Toyota and Honda have proven.
On to reasons GM should go with hybrid vehicles… There is no reason for mega-litre engines in ANY consumer vehicle today. A SULEV, 1.3 to 1.8 litre engine running an electric generator and a charging alternator hooked up to a battery system mated with 4-wheel DC motors and a Continuously Variable transmission is more than sufficient to propel a vechicle from 0-60 in the sub-8 second range; climb San Francisco hills; or slosh through some puddles. Realistically, Consumers don’t “need” to pay $2.65 a gallon Consumers don’t want to see their cars in shops for oil changes every few thousand miles (12000 miles between oil changes is a good thing). Consumers don’t want vechicles that require constant gasoline feeding. Our insurance companies have already taken care of emptying our pocketbooks. The gas station fill at $50+ every couple of days adds up to a significant amount of money, even for a person in the SF Bay Area. Help the people by leading the charge to TRUE fuel efficiency and clean air through less overall consumption.
This message may never get to the board room, but consider this:
You have a lot to gain by leveraging what you HAVE with what you CAN do. You have hopefully learned with a $6 billion investment that you have nothing to gain by continuing to do what you have done in the past.
It is time to make a major mindset change. That change must start from the leadership.
Thanks for lending your ear.
rjsasko
I agree with many of the comments so far-you MUST provide a long duration bumper to bumper warranty. People perceive GM to have quality problems that your cars don’t deserve. You have to overcome that. Hyundai used to produce horrid junk but improved their product, backed it with a terrific warranty, and relaunched the brand to great success. You have to do the same.
I know that your quality never sank as badly as Ford’s nor Chrysler’s did. Maybe that is the problem. Their feet were in the fire like yours never really were and helped them to create a sense of urgency to try something/try anything to turn things around. You need that mindset now.
The auto press does not give you a fair shake. Co-opt them. Bring them into your design studios, car clinics, etc. and get their input. They aren’t going to trash a car they helped design now are they?! Let the kids into the candy store!!!
I have retired folks. They drive around in Ford’s full-size RWD Town Car/Grand Marquis/Crown Vic. And they HATE IT! They have been replacing that same car with the same car every two years for it seems like a hundred years. If you offered a full size preferably AWD (at least RWD) V8 sedan with REAL HEAD ROOM and easy ingress/egress they and millions of other blue-hairs would be spending big dollars with GM. As wood police and taxi drivers. Have Cadillac replace the DTS with this and Chevrolet offer a deconted version (and NO OTHER divisions get one) and you have a sure-fire winner on your hands. But it must have at least 6 inches more headroom than a current Town Car!!!! There are a heck of a lot of people out there taller than 6 foot nothing who either have to use the jaws of life to get into/out of a Town Car or have to buy a full-size SUV. Give ‘em back a real choice! And a Chevrolet enthusiast’s version wouldn’t hurt either. Wink wink
David Hoff
Bob,
Let me try to help you out one last time.
Last summer I rented a 2005 Pontiac Montana. I was the 2nd renter as the vehicle had just over 500 miles when I got it. Well, guess what I thought about the quality of it? The plastic piece behind the passengers interior front door handle fell out. It was only held in by 3 molded clips and this part didn’t fit right.
How is that for quality? In your drive to make things faster/cheaper/cut more corners, things like this happen. Things like this leave impressions on Mr Car Buying Public. Why not just add a screw or a couple of fastners to hold the part in place? How much could that have cost?
Think about how many folks will be renting vehicles with a part that falls off and never give GM products a look? Are you really saving money making that part cheaper? How many lost sales over one little part or one impression like that?
Cut corners at your own peril.
Hope this helps.
Dave
Frank
Bob,
GM should seriously consider advertising, in magazines geared for video game players. (Game Informer and Game Pro). Things have changed, most players today are not kids, and don’t live in there parents basements, watching Star Trek all day. In fact most demographics I’ve seen, show that half the country plays video games, and the majority of those people are adults. That seems like a pretty big chunk, that you guys might be missing out on.
getalifeagain
COMMUNICATION in the manufacturing of any and all products (especially automobiles) MUST TAKE PRECEDENCE!
My father was a Chemical Engineer at a pharmaceutical company for forty years. He impressed on me that it was communication among all the departments that made things roll. He would talk to Maintenance, Production, etc., and go down to the job sites to see the progress. And it all worked.
I think GM can take a lesson from this. It doesn’t take any financing either.
Travis Ayres
Once again, improving in an area nobody cares about, obviously doesn’t matter.
Improve where it counts.
Stop producing crap, and then telling us we should buy it because its better crap than it was before.
G5_you_must_be_kidding
I can not believe that GM is going to build and sell a Pontiac G5 in north america. Why does it seem that Mark LaNeve is doing the exact opposite of everything he says he will do with GM’s brands? First, it was “We’re going to do value pricing and no more big incentives.” Then we got the Employee discount for everone. Then Mark admitted, in hindsight, that “he probably shouldn’t have done the Employee Discount for Everyone.” So, we’re back to value pricing (where we should have been all along). Then we are told that our brands will be focused and only Chevy and Cadillac will have broad protfolios. Then we get the G5. This is just plain stupid. Its as if evey GM marketing and product decision is made by trail and error. Don’t people get paid (tons of) money to make good decisions without resorting to trail and error? How about firing some people who couldn’t make a good management decision to save their lives.
strategic planner
“but we need to step up our non-traditional communications and word of mouth, and get our message directly to the people on a grass roots level.”
Thanks Bob, I couldn’t agree more. As a partner in GM’s success, working for one of your north american ad agencies, I applaud your stance on communication and advertising (not to mention this blog).
However, my daily experiences with this great company do not mirror your view on managing a brand in 2006. Trying to sell through anything other than a 30 second ad is almost an excercie in futility. Changes are slow coming from the top down.
Thanks for your post, I’ll keep trying !
Tom
>>you might want to start with Chris Bangle
Arrggh! DON”T EVEN THINK ABOUT IT!
The last thing GM needs is the baroque (UGLY) styling of the current BMW’s!
Matt
After reading numerous blogs about E-85 it seems the number one problem is no one knows where a station is that offers E-85. Could GM back a move to start opening e-85 fueling stations at or next to GM dealerships. That way anyone who buys a GM E-85 vehicle knows exactly where to get their fuel and you keep them coming back around the dealer every week to see whats new. You could start out by offering financial assistance to your best dealers and those dealers that sell the most E-85 equiped vehicles. That way you have given an incentive to the poor dealers to do a better job, rewarded your strong dealers for doing a great job, and given one heck of an incentive to all GM dealers to increase local marketing “GRASS ROOTS” of E-85. Just a thought.
Fred S
Bob,
Perception is currently GM’s #1 enemy. The latest facts reported by the media like mega losses in 2005, plant closings, layoffs and high labor expenses only fuel the fire.
To promote a positive perception, GM desperately needs to inform consumers as to each brands overall goals and the strategy to achieve those goals.
An excellent example would be during the Chrysler turn around in the early 80s. There were many ads featuring Lee Iacocca with two primary messages. One was the goal, “We don’t want to be the biggest. We want to be the best”. The other was the strategy “Lead, follow or get out of the way”
Whether or not Chrysler was a leader or the best is debatable. However, in light of Chrysler’s publicized struggles at that time, the messages were positive, clear and effective. (Its 25 years later and we still remember them.)
I do not believe this would be a successful today at the corporate level. I believe it needs to be implemented at the brand level. Each brand with its own identity clearly defined with a goal and strategy.
Steve Schafer
Mr. Lutz:
You made my desirable car. As the proud owner of a G6 GTP Coupe, I say that you hit the nail right on the head. A 6-speed manual in a Pontiac high performance V-6? 18″ alloys? Rear seat room in a coupe? Stabilitrack? 6 disc in-dash CD? You all hit the nail on the head. Thanks for bringing a car I would want to drive to market.
Alex Knipper
I am so grateful that I bought a Toyota product instead of a GM product. My Toyota has given me NO problems.
Also, I was at the 2006 Los Angeles Auto Show. I sat in the Monte Carlo for 3 seconds. Then some guy walked past and said “this car hasn’t changed at all.” Then I saw the new SSR. I sat in the car, and the body pannels by the window had huge gaps. Also, there were harldly any people looking at the Chevrolets.
So, basically, I am a Toyota buyer for life now.
Oh, and I hear you pay people 60-70 grand a year to push one button. That’s just wrong. I don’t want to give GM money and “reward” your management failures. GM is a horrible company all the way around.
Peter R.
Sure, build a better car.
3 year/36000 mi. warranties are not competitive. 5/60 with 10/100 on powertrain would get people in there.
In one more product cycle, I think your cars will finally be competitive with the imports.
I think you should push the amount of choices and the fact that you can special order GM vehicles - you can’t do this with the ‘imports’ - you get what you can find, and too bad if it’s not what you want.
GM: what you want.
Warranty, quality, choice… and HERITAGE.
Stop changing names of models. Stick with what you had, and what people know. Lucerne CXL? Just what does that mean to me? LeSabre GS would get my attention. Wildcat. Electra. Skylark GS.
Pontiac Tempest. GTO. LeMans. Grand Prix. But G6? G6 GT?
New names and rebadged models are confusing. Does Honda do that? Does Toyota?
GM, Bob, the customers are here, waiting. I’m waiting!
GM: what you want.
p.s. Camaro!
Brian Loughlin
I agree w/a previous post about a Hyundai type 10 year warranty. Could GM afford such a program if they cut back on the rebates at the same time and use these savings to help finance the warranty. The big problem GM faces is there’s no real reason to switch from a Honda/Toyota. GM needs to do something radical to get consumers to consider switching. I think the issue of reliability comes down to people’s sense of security. If there are doubts about a manufacturer’s quality (even when the perception hasn’t caught up with the reality) they are hesitant to buy them. Maybe a 10yr. warranty is a way to get a consumer over the hump and consider a GM product. I hope you succeed!
P.S. All your cars should come with a full complement of airbags including side airbags/curtain airbags.
John Burke
Mr.Lutz,
I have an Impala and I love it. You are what GM needed. I think word of mouth works great but product will bring people back. Advertize in your ads constantly the merits of GM plants in quality. GM Sould challenge the media , not by words but invite your critics to see for themselves what you are doing and dispell any doubts.
Advertise people who like their cars and why. Jay Leno said he drove the Daytona Pacecar because he wanted to drive it. Not for a fee. I experienced a ride and drive and it was a great experience. More people need a non pressure way to experience the cars.
Keep doing a great job. You will get the company going.
Robin Capper
If the Solstice is the best of GM you are in trouble. CAR Magazines Dec 2005 report comparing it to the new Mazda MX5 shows how far behind GM still is.
This quote sums it up;
“The Solstice is the car a lot of people want to be seen in right now. Potential buyers don’t want to hear that it’s not very good. Or that it’s not up to the task of taking on the MX-5; they’ve already made up their mind long before they open the door. The Solstice is as one dimensional as the Chrysler PT Cruiser”
Jim
Bob,
Ignore the Toyota plant. His agenda is pretty transparent.
Some suggestions:
Overnight or weekend loaners to prequalified, potential customers. No one likes to give up what they fall in love with. Also gets you good feedback from decliners.
Four or five year warranties. Make all component suppliers responsible for these same warranty periods to put their focus on QRD … and advertise that fact.
Alter broadcast advertising to make ads more entertaining and memorable.
Make more vehicles available to GM employees to share the good news with neighbours, friends, families.
Special promotions to driving schools. This is where young people get their first driving exposure.
Special promotions and education to seniors. Many seniors are now brainwashed by the “Toyota” conventional wisdom. This needs to be undone.
Just some thoughts,
Jim
Brian Ripple
GM doesn’t make it self buyer friendly Bob. When the GTO came back in 04 people complained that the car wasn’t what they thought it should look like. Jeff Holland telling me that PONTIAC has no intension of making a retro model tells me GM had no concern about what their buyers wanted. Pontiac has no right to tell people that they don’t want to make a retro. If the people want a retro you better start thinking about what you can change. The 1970 model would be perfect to build off of. I think Buick should come up with a Skylark GS to run along side the GTO. The camaro looks good but needs to be smooth at a bit more with white racing stripes to grab the eyes of the camaro fans. Telling people the Firebirds day is done isn’t the thing to say. Why not make a firebird to run side by side with the camaro.
Matthew O'Rourke
Mr. Lutz,
I just wanted to say that I am only 25 and on my forth that’s right forth GM. A Bonneville, Regal, Trailblazer EXT, and finally a new Malibu. I will be honest if it had not been my father’s lease that I took over and needed a pull ahead to keep from going over miles i would not have looked at a GM.
However, I am pleased to say that after 28,000 miles it’s not too bad. I am waiting for the crucial 50K in miles thought that’s where the others began to go, and the foam panels on the doors began squeaking after one week. It’s a pet peeve but it’s annoying.
Herein is the issue. Your quality might have improved, but for me based on past experience it’s too early to tell. Not at 50K yet. Unfortunately, that is where you guys are at, not enough products are out there for a long enough period of time to know if the quality is truly better. I did have the foresight, or experience to buy the extended warranty.
There are a few suggestion mentioned here like longer warranties, that would help. Consider tapping into the industry magazines and there long-term test updates. I know you guys look at these use the goods ones for advertising. Another suggestion is pricing. My Malibu is expensive 440 a month. I could have gotten a cheaper model, but it was my first new car out of college and went for it. This was a mistake. Unfortunately, I did not have much choice in car the, cobalt and HHR we not out yet. Speaking to price lots of kids like me go with that impulse and listen to the dealers, “just don’t eat as much Wendy’s”, was what my guy said. Maybe look at no hassle pricing or the like. Another good way to help price is service. Audi gives fee service for the length of the warranty. Including oil changes or at least some dealerships do. I just got use to paying for the car and 12K later another 403 was spent on the 12K service. That’s a lot of money for a recent college grad in the Chicago area.
So those are my thoughts. The key is I can’t tell yet if your product is better it’s just too new, and for someone who written GM off so far so good. I hope for both of us the product continues to improve.
Thanks
Matt
Craig M.
You asked how to increase awareness, etc.
Correct me if I’m wrong…
The Cobalt ads you ran- had the Cobalt briefly appear with the Corvette, then kick around a basketball in another add. I’ve seen the Impala with a herd of Impalas. The Torrent, and G6 appear in Psychedelic Style ads.
With that said, (It seems to me) these marketing campaigns have left the consumer to wonder- “what cars are they, who makes them, what are their features and benifits?” Unless your a consumer who keeps up with industry, and reads periodicals- you don’t have a clue about anything from some of these ads. Fundamentally speaking: I seem to recall some marketing model- AIDA. Awareness, Intrest, Desire, Action.
And that consumers require High Information during the awareness stage; of which your television spots have little or none of.
Regards
Craig M.
James Gasper
In January GM sent my father half way around the world to China. This was a major accomplishment for him. However, I had to ask myself… Why China? Why not keep him here in Detroit to help open plants here? Why has he not been sent down to Alabama, Tennesee, up to Flint?
Toyota and Honda have opened plants in the U.S. Daryl Waltrip made reference to this Sunday on national television before Daytona. This was a major boost for them. He should of said that about GM.
Screw union contracts.. let them run out and hire people that are willing to work. Provide the correct conditions and make the pay fair and competitive.
You could also stray away from bragging about lower prices. An ad about quality, styling, and even speed in some cases would attract the attention of an 18 year old kid than would an ad with a bunch of lease mumbo jumbo.
Also, I love my Cobalt.. I can take a Civic on Telegraph and the Neons on the highway.. But when I sit inside one of those other cars I notice one thing and one thing only. No hard plastic! It needs to go…
Edward Hayes
The Pontiac G6 got most appealing vehicle in its class beating the Toyota.
Buick and Cadillac beat Toyota in initial and long term quality.
Ummm the Solstice looks better than the MR2. Camaro looks better than the Supra. The H3T concept from 3 years ago still looks better than the new Toyota Pickup concept.
But I know sometimes we cast pearls among swine. But don’t worry GM, look just keep trudging through the coals and you will find the diamonds in the rouph.
I personally like the poster that pleaded his case for GM to make the Cadillac Sixteen. He used forward slashes and back slashes to tell the “Standard of the World” please take my money and give me the best looking exotic ever to come from Detroit.
He is right, it is time for Cadillac to step into its stated roll and make the standard of the world car that we all know it can. And it’s time to sell it at a price we all know Cadillac is worthy.
Here is another diamond in the rough.
FRONT LINE
I think Bob it’s time we designate those cars that are on the front lines in the most competative and highest volume segments.
Cars like the Cobalt, Malibu, Impala and G6. Lets say we designate 10 GM cars and start an annual model change program.
Now a model change must not only speak to engineers. In other words you usually concentrate a lot on improving drive train and increasing performance, but a model change must be interpreted through the designers as well.
If a 10 year old child can not tell the difference between a 2007 Cobalt and a 2008 Cobalt then it is not a worthwhile update. Consumers have to be courted with design first before they enjoy any new drivetrain.
Once a car is designated a “frontline” car like the Cobalt, for example you should be able to walk into the design studio and see what the changes for the next couple of years will look like. There should be a 2007 Cobalt sitting next to a 2008 Cobalt next to a 2009 Cobalt and you should be able to see evolutionary changes each year until a total redesign for the 2010 for example.
The same should be true for the other cars designated as “frontline” cars, each model year changeover should be staged and ready.
Bob, GM invented the annual model change that is how it got 50% market share this is not new. If it is happening already good do more of it, and lower the price again next year, the “value pricing” is working. This is what GM has to do to take its game to the next level.
Buick Grand National
To Alex Knipper,
Go drive your Toyota then. Even if GM does pay well for pushing one button (we don’t know that for sure because that’s what you “heard”), their vehicles sure seem to offer better value than Toyota.
Would it be fair if I “heard” that Toyota pays their floor sweeper $200k and posted it on a public site?
I’ll also argue that many of GM vehicles are more reliable than Toyota. My 1999 LeSabre (yes, I’m 37 and drive a Buick) has 104,000 miles and the only thing I had to replace was a set of spark plug wires for around $25. Did it myself in about an hour. Based on what I’ve read, the Avalon can only wish it was half as reliable.
GM is having a major problem with the import-loving media. Maybe when some import lover writes a negative review about a vehicle, you can request their space in their paper and direct readers to a positive review (written by a reputable auto critic) for that same vehicle. That should give the media less credibility.
Brett
how about not blaspheming the SS label . . . so when a car does bear the “SS” it actually means something
Moses
Has GM recently looked at the profitability of Gas companies around the world?
Maybe as the top selling (but not top profit) car company in the US, you may want to look at partnering up with gas companies in order to provide more of your customers with better gas prices.
Second, stop producing bigger cars.
Third, don’t promote your cars based on price.
Finally, look at a new marketing strategies than the current lower price model which GM has branded itself as and remain patient!
GL
Blogbiz
GM Fastlane Blog: Auch ein Konzern kann offen in der Krise kommunizieren
General Motors schreibt immense Verluste. Das bringt natürlich Bob Lutz, den auf Fastlane bloggenden Vize von GM in Bedrängnis. Seit die Krise bekannt ist, haben sich viele gefragt, warum Bob immer nur seine Artikel auf die Automodelle foku…
J. Kevin Murphy
Mr. Lutz,
With GM in the news daily, you have our full attention. What is the market penetration for GM’s best of category models? What explanations are there for mismatches if the model is a category beater, but the vehicle doesn’t garner it’s share or more of the market? Your marketing people can give you confidence indices on the effectiveness of media promotions, customer satisfaction measures, as well as the incidence of repairs in and out of warranty. Clearly, the bigger the mismatch in demand for a well promoted, quality product; the bigger the reward for resolving the discrepancy, but you already know that.
Isn’t it less about the vehicle and more about the cost/benefits of intangibles like safety, durability, fuel efficiency, the effects on the environment and on the balance of payments deficit, and, yes, buying an American product? For many buyers, optimizing those considerations is what the buying decision is all about.
J. Kevin Murphy
Luis
Mr. Lutz,
I´m a big fan of GM and you. Here in Colombia S.A., GM is doing very well with Chevrolet (The asian ones) but I think you need to go upscale because we don´t have something to compete with Audi, Volkswagen etc.
This is a nice opportunity to have Pontiac here. The market is growing and you can have a sport brand. Look at Pontiac in Mexico.
Vibe, Solstice, 2door G4 (G5 in USA) and Torrent would be a nice line in Colombia, and GM will have a better mix.
I also think that you can go to luxury market with Saab wich is kind of BMW here, and with Hummer H3. You can have a very niche dealers with Saab and Hummer. See what BMW, Mercedes, Porsche and Volvo are doing here.
Good luck.
Luis from Colombia
Dan Neu
A simple step: our product awards should be plastered all over our websites, starting with GM.com and down to each of the divisions.
Also consider creating vehicle-specific forums similar to this one, where consumers can comment, ask questions, or get help.
sob
Good idee, compliment to Bob Lutz,
I don’t think I wann help GM, they could pay for informations, couldn’t they? Just looks like a strategy for me. GM has a Image Problem, a great one, people wanna buy anymore… the standard gm driver 25-40 is out of range.. now buying bmw. …. just one thought.
Barry
There you go Bob. Right from the horse’s mouth: The dealers and the consumers.
So, you wonder what your problems are. No one still wants your product. GM corporate arrogance is still pervasive. “We’ve got great product. All we need to do is convince everyone of how stupid they are and they’ll start buying again.”
Effectively, that seems to be the dilemma.
http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_levin&sid=aCHr0efRJuyw
Tom McTighe
Well, I for one Bob I am glad you are there (at GM). This blog is a great idea as well. I’ve been wanting to communicate my feeling over the last decade to GM with no way to do so till now…so here goes. THANKS for the Camaro! It’s about D**N time! I would have bought one if you had come out with it oh…TEN years ago. Instead I bought an 96 Impala SS. I still drive it and love it (interior is cheap however). Please keep the Camaro as close to the concept as possible (I will buy it) and keep the LS2 in there.
I am glad you worked out the healthcare issue with the unions (I’m sorry but they are out of touch!). I have owned Apple Computer products for since 1984, while the masses have gone with Windoze products, but Apple has also been maligned, and sidelined as GM is now being. Just keep making quality and innovative products and you will be back on top. Get rid of the stupid design by committee clinics…please! I noticed you said no clinic for the Camaro. Bravo! Do that with all your vehicles. The 65 Riv, the 66 Toronado. Let’s get back to great design and people will buy GM products. Just don’t let the doors fall off like my brother’s 89 GM full size van (yes it fell off the hinges) he will never by another GM product (not good).
Anyway, keep improving quality, innovating and make all dealerships like Saturn (we have a 96 SL2) and you will be back on top.
Lorenzo Patlan
As a loyal GM consumer, and that I am, my first new vehicle was a 1998 Chevrolet Monte Carlo, followed by a 2000 Pontiac Grand AM GT, then my favorite econo car a 2003 Pontiac Sunfire and my latest edition was a 2004 Pontiac Grand AM GT w/ the SC/T package. I have proceeded to purchase GM vehicles because regardless of what the media or people may say, it truly comes down to my own opinion. My 2000 Grand AM was excellent, many companies gave the Grand AM terrible Crash Test Ratings, but I can say first hand after totalling it in a severe accident at 65 miles hours per hour, “IT SAVED MY LIFE”. That’s why when I got the money saved up again I bought a 2004. Build quality on the inside isn’t up to par with say the NEW G6’s, but hey! I’m just glad things went in the right direction and the New Interior GM is producing is by far the best. I am alittle upset over the news I just received of the changes to be. Dropping the Envoy XL and Trailblazer EXT, and Pontiac GTO. I can understand to a point the reasons why, but the GTO? That was the only other EXCITING vehicle other than the G6 GTP coupe, I hope GM plans to produce more Horsepower out of the G6 GTP coupe now, cause it’ll be needed. All is not lost though, there’s still the Solstice GXP. But then, to my amazement I found out about the G5, based off the Pontiac Pursuit available in Canada, which is a Cobalt with a different Grill and Tail light assembly, and I hope Pontiac is gonna make some major revisions to that vehicle before it is brought to the US. The Cobalt stares down the eyes of the Civic, so I believe the G5 should compete with the RSX. Start it off with 205 HP, finish it up with your beautiful 260 HP Turbo 2.0, hey! Don’t take the glory from the Soltice, tune it down to 240! Do these really get read???
Ken
Bob,
I’ve had a driver’s licence for 30 years. In my thirty years of driving, I’ve always had at least one GM car in my garage. I’ve driven some of the best and some of the worst that GM’s ever produced and I can say the cars themselves were never as bad as the media has made them to be. I just bought a car last year. It was not a GM car. It was a MINI. A Cobalt/Pursuit/G5 was on my interest list, but never made it to my top 3 or 4.
After 30 years of giving GM second chances to make good on quality of service and customer treatment on the ownership of my car, I and whole lot of friends and family have given up.
My MINI has not been without problems. But when I bring it up with the technician, my car is fixed, no questions asked and I go away happy and driving my car. I also have a late model Buick Century. JD Powers top quality car pick. It has not been without problems. But getting anything fixed under warranty was like pulling teeth from a lion. Then I had to bring it back multiple times (in one case 5 times) to get a simple problem fixed (misaligned door panel). One has to get so angry to get something simple fixed. The latest was a recall for headlight bulbs on my Century. It takes 5 minutes to pop in new headlight bulbs. Our Century was booked into the dealership for 4 hours and when my wife went to pick up the car, she had to wait. The car came back dirty and the dealership gave her a coupon to come back for a carwash some other day. At your position, I’m not sure you see the real world of car ownership. Your surveys are measuring the wrong things.
I believe GMs product offerings are getting better. The ship is slowly turning on that front. But there’s still a lot of work to do if you want to win back any of your past customers who have left in discust.
Good luck. I continue to wish GM well.
bill
The comments from “Buick Grand National” highlights what is wrong with GM. The guy sounds like the typical UAW member that I run across in Detroit and St. Louis. When confronted with a customer complaint/concern, the answer is buy someone else’s product. Well that’s exactly what the American consumer is doing. These people cannot make the connection between the sale of their employer’s product and their livelihood.
GM is a large and complex company; it has multiple problems and multiple opportunities. As for labor costs, GM should take a page out of the Caterpillar play book. CAT took on the UAW, over pay, productivity and work rules. There was a strike. CAT hired replacements. CAT found out that there were thousands of people willing to take the jobs of the striking UAW employees. CAT also found that productivity and quality was much improved with the replacement workers.
The UAW workers also had an education. They found out that Caterpillar’s jobs were easier than the local entry level McDonald’s jobs. That CAT paid 5x more than McDonald’s and the benefits at McDonald’s were no where near the levels offered at CAT.
A GM worker education on how the rest of the world works might be the start of a GM comeback.
Greg
Brian Ripple wrote:
“Pontiac has no right to tell people that they don’t want to make a retro.”
They don’t? Since when were you appointed the arbitor of what Pontiac does and does not have the right to tell people?
While I think retro styling cues would be interesting for a replacement for the next generation GTO, I hope it’s not a pure out and out retro model. That would be a total bore.
Greg
Mike Michalowicz
Dear Bob:
When you state “We can and will do a better job of advertising … in the traditional sense,” you might as well drag fingernails across a chalkboard. Doing more and more of what everyone else is doing won’t differentiate you. Instead you will become more and more of a blur to the consumer. You will simply continue to mire yourself with institutional advertising and even further the perception of poor quality. For me at least, every time I see another GM commercial, I think to myself, “Here is GM trying to market their way out of a crappy product.” Right or wrong that is the emotion traditional marketing emotes from me. And we ALL buy on emotion.
I urge you and your colleagues to seriously consider what you refer to as “non-traditional” marketing. I would define it slightly differently than you. I would suggest picking a few strengths that already exist within your product line, and then radically improving and enhancing these strengths far beyond any of your competitors. If you are truly a believer in relentless commitment to quality, for example, then put all your focus and money on quality (not more cheesy advertising). Assure customers your absolute commitment to quality by delivering a radically new standard. Screw the 10 year warranty - someone else already beat you to that “radical” idea (and look at them now)! How about a FULL refund on a GM vehicle if there is ANY quality issue during the first year, two years… maybe five years? Now that is radical. That will get a grass roots campaign going. Shoot, under that type of warranty, I would only buy GM. Also, this would push aside the rhetoric about quality and actually force your company to absolutely, no matter what, unequivocally ensure 100% quality. You would sink if you failed to deliver, but you would sky rocket if you succeed.
Radical? Absolutely. Betting the farm? No doubt. This is just one idea, but there are thousands more on what you can do to be radically better. Right now, GM is a frog in hot water. If the solution is believed to be “stronger and more aggressive” traditional marketing you will soon be a frog in boiling water. Better to jump out of the hot water now, and take a bold, never done before risk to gain a promising future.
John Nocera
Bob, this one is easy. Just make the Cobalt rear wheel drive. I promise it will work.
Jared
Bob:
It’s going to take a while to change GMs image. Before that can happen, GM needs to stop making dreck. While the interior looks nice on the new Tahoe, that interior has not filtered down to many of the cars currently made by GM.
Face it, GM makes a lot of dreck. Take the GM minivans, please! Instead of one good minivan that is competitive with Toyota and Honda, you’ve got 4 minivans and all 4 are dreck.
Take the new FWD Impala with a V8, please! Kill that foolishness and give us a proper RWD or AWD platform.
How about the Chevy Malibu? You took a very nice looking Opel, and for reasons known only to the denizens of the tubes, you spent a bunch of money to make it horribly ugly. Why, Bob? Why?
Bob, it’s long, long past time for GM to rationalize its product lines. GM needs no more than 2 minivans, at the most. There’s absolutely no reason for the Torrent. In fact, there’s no reason for Pontiac in general — kill it. Move the Solstice to Saturn and kill Saturn’s version of the Soltice.
There’s no reason for Chevy and GMC to each be selling the same trucks. Kill GMC — it’s pointless to spend money to design two different front clips for the trucks.
Once GM stops selling dreck, the image will improve. But it’s not going to improve when GM is selling one or two good cars next to a showroom full of junk.
Rich S.
Bob:
Thanks for giving us the opportunity to buy a terrific car like the GTO here in the US. If you could give us the opportunity to aquire the best that GM has to offer, whether it be from Holden, Opel, or whatever, I am sure there will always be a market for it here.
Buick Grand National
Bill, I didn’t mean to come across as a typical UAW guy as I strongly feel that the UAW should be kicked to the street. Their ridiculous demands of GM to provide lavish benefits & cushy pensions is one of the biggest problems. I’ve read that GM spends around $1,500 per vehicle just on healthcare. Clearly, that’s a big disadvantage.
What could be done with $1,500 to improve an interior, offer a 6-speed transmission, or a “refined” engine? I pay 100% of the healthcare premium (around $1,000 per month) for myself & my family, and those union workers should pay more for theirs - not to mention their high wages.
I had a job years ago where a union was involved and saw first hand how lazy some employees are. They almost had to try to get fired.
In summary, based on the competitive disadvantage that the UAW puts GM at, their vehicles are getting pretty competitive in my opinion.
Brian Ripple
I guess i’m getting some attension now. I must be living in the only part of the country who doesn’t like the NEW GTO look. I’m sure the low sales speak for them selves. We have more dealerships where 05 GTO’s out number 06’s four to one.Now obviously I have no control over what Pontiac says but the V-8 cavalier comments from many people tell me what many people think about the GTO. Part of the problem is GM took away the F-body and intuduced a car that doesn’t appeal to the crowd that previously bought from that market. I don’t believe the car has to be a full blow retro like the mustang but pontiac needs to think about adding somthing to bring out the spirit in the GTO. I love driving the car, it just doesn’t make think of a GTO.
Mark Barnett
I bought a new GM car once — a Pontiac — and sold it six months later, when it needed new front brakes(!!). Couldn’t wait to get out of that pile os s**t. I’ve owned many car makes — Ford, Volkswagen, Mazda, BMW, Honda, even a Triumph — but never have I owned such a poorly designed, engineered and assembled car as that Pontiac. With all the high quality, affordable cars in today’s market, why should I risk my hard-earned money on a GM make?
GM’s problems are not due to media bias or inacurate consumer perceptions. GM earned its reputation and is now suffering the consequences. GM’s financial situation is real. GM’s market decline is real. My poor experience with GM (and it’s dealer network) was, believe me, a real impact on my wallet.
GM’s offerings today might be as good as you think they are (and they need to be better than Honda’s and Toyota’s in every dimension), but you want to see me in a GM car you would need to give it to me — and even then I would continue to drive my Subaru or BMW if the GM didn’t measure up.
Jay
Gm’s problems are deceptively simple.
During any given cycle you are not offering the consumer what is currently all the rage(while your competitors are), or the “Right vehicle at the Right time” is simply overpriced.
It seems that GM is a mammoth that either steps on it’s competition or watches it race past.
I don’t know if I should be bemused or befuddled by the ” One hand holding brilliance, while the other holds BS” approach to auto manufacture.
No, you cannot be everything to everyone.
However, you can choose to compete.. and prempt your rivals.
I believe that reading the comments of those that care enough to reply here is a good start.
I think that you should have imported the SS Ute as opposed to building the SS/R.
I think the GTO is a glorified Pontiac coupe cashing in on the heritage marker.
So,
What worked before that you are not building now?
Camaro/Firebird/Blazer
Doug
Mr. Lutz,
Along the lines of non-traditional communications and word of mouth, may I suggest engaging your engineers and designers in your grass roots marketing efforts. There are a lot great things happening within GM, being accomplished by a lot of talented people. I’m sure many of them would enjoy the opportunity to speak about their accomplishments in front of an audience. In my experience, it is always enjoyable seeing someone present on a project that they played a major role in and are passionate about.
I had an opportunity to see you speak in front of the Washington DC Press Association 3 or 4 years ago shortly after you signed on with GM. You presented on the development of the Dodge Viper. I thoroughly enjoyed the presentation. And I think your delivery was well received because you were passionate about the subject. I still recall the part where you were pulled over by a police officer while testing a prototype Viper. When the police officer asked, “do you know how fast you were going?” you truthfully responded, “well, actually no officer”. The car was not equipped with a speedometer and all the engineers provided you with was a chart showing the relationship between engine RPM, transmission gearing, and vehicle speed.
I’m serving as the chair of the SAE Washington DC Local Section for the 06/07 year and would welcome participation from GM in supporting technical dinner meetings and events. I think these local SAE events are a great way of spreading the news on the great things happening at GM. Let me know, if you are interested. We’ll start planning our events this summer. Below is list of some possible topics.
1.) Technical presentation on the development of the Z06 Corvette. Could invite local Sport Car Clubs in the area.
2.) Technical presentation on the development of the Tahoe and Vue hybrid systems Ride and Drive.
3.) Technical presentation on the development of the Chevrolet Cobalt SS. Event could be hosted at or near the University of Maryland. Maybe we could put a focus on the turner parts available for the car.
4.) Diesel engines and the challenges of meeting future emission standards
5.) Vehicle to vehicle and vehicle to roadside communication via DSRC.
6.) Technical presentation on the development of Onstar and all its great features
7.) The design of the Camaro concept car. This one should be on the top of my list
8.) The design and development of GM’s gravity car. I learned about this event recently. Very interesting.
I’m sure there are many more interesting stories out there. And if you have a trip to DC planned between September 06 and May 07, let me know in advance and maybe we could arrange for you to speak on the design and development of the Pontaic Solstice. Now that would be a treat!
Thanks for the opportunity to provide input. I love this blog. Keep up the good work. The fit and finish on GM new cars and trucks is just amazing. It is second to none, in my opinion. Please hurry with those rear drive sedans and a diesel engine for the ¬Ω ton pickups and SUVs sure would be nice.
Long live the General,
Doug
Bill McCall
Hello Mr. Lutz I am a advid fan of yours,I love chysler when you were there and was a huge fan of the daytonas then. I own a 99 Grand am Gt sedan and love my car even though I have had many problems with it but she is my pride and joy. I think the problem with GM is the brands don’t really have a identity as far as what the company wants the public to think before they go into the showrooms. Pontiac for example is suppose to be the performance end of GM,but doesn’t really display the image. the staple car of Pontiac the GTO is being killed what is that about other than that what car is really exciting? Why aren’t you doing it more like Nissan with all the cars edgy and sporty with good power. Everybody is coming out with rear wheel drive,high horsepower cars and Pontiac is ending the one car they have that people wish they could have. I am tired of all the Honda freaks in their tuned up civics and integras talking about power and we have little to fight back with that is GM biggest problem.
billvankoughnet
I am a 32-year old GM loyalist here in import country, CA! I have made a point to talk up great products like Lucerne, Envoy, Lacrosse, Cadillac and Cobalt. I think getting people into the product and improving the dealership experience here in California could bring tens of thousands of new sales to GM each month. I have two ideas that I would personally like to help to implement if the market is present:
First, GM needs to bring a mini “Autoshow in Motion” to local malls & civic events and add no-pressure overnight test drives to well qualified customers, particularly “conquest” prospects. Getting people into the dealership doors and treating them right once they get there is what its about. Also,using grassroots marketing such as grants to dealerships to market and promote products at neighborhood events, car shows and other events could be very helpful in building awareness & goodwill.
Second, Dealer education about the product and heritage of GM products is crucial. Customers should not know more than the salespeople! I have experienced this often. Salespeople need to understand the car market and be able to find new customers using innovative methods. GM needs to create a communication loop between customers and the manufacturer that goes through the dealerships and to decision makers. GM should create an image and a reality that it is the most customer responsive car company (the Saturn philosophy expanded, perhaps).
My dream is that someone at GM could use a low-cost independent “agent” here in San Diego to collaborate with corporate folks, dealership people and customers to build goodwill, awareness and sales in this prosperous region. It could be a long shot, but I’d like to make me little consulting business a proud part of GM’s revival. I welcome suggestions from anyone & feel that this great American company is turning the corner! Good luck to all in the GM & GM/UAW team!
Bob Tasa
>At your position, I’m not sure you see the real world of car ownership. Your surveys are measuring the wrong things.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
I agree with this. In your world you think HOW can this be. The dealers (salesmen would tell you anything)
say its got to be more advertising, in my world of average Joe the answers are all to obvious. You have blown many chances. You lost
everyones respect. Your dealer mechanics are not delivering the products are average and for ~20K they need to be above average.
For the one man above who said he had a wind leak in his new car. He effects 100’s who read or heard that. We listen to each other and the things we hear from Toyota owners etc are good.. Nice cars inside that look rich, nice cars outside and cars that last 200,000 miles.
You decided to make SUV’s
for short term profit others decided on making their stuff better more fuel efficient. Who looks good now?
Bob
Mr. Langlitz (Germany)
To Ken:
Concerning the bad experiences with your Buick Century, to me it appears to be more a problem caused by your dealership than by GM. My brother in Florida also encountered certain problems with his first car, a Pontiac Grand Am. But he never had big trouble to get the things right again. Finally he bought a G6 last year, which proves as reliable so far. By driving other brands you could get hit harder. I heard from a young lady (here in Germany), driving a Volkswagen. She filled up her car with Bio-Diesel instead of conventional Diesel. What happened? The injection-pump became leaky. She hoped to get the repair on warranty. But no way! As she got informed, the injection-pump was declared by Volkswagen to be Bio-Diesel-capable, but not so by Bosch, the manufacturer of that pump. Fortunately she got it fixed at a Bosch-service-station at a much lower price than at the VW-dealership, where it would have been super expensive. But in the meanwhile she sold her car. The new one won’t be a Volkswagen, that’s for sure.
D. Campbell
The P85 blitz sounds great but I have a few questions.
First how is that the public hasn’t seen fuel economy comparisons between P85 vehicles and gasoline? and what are they?
Second, what is the projected price differential between fuels? As Ethanol contains less than half the energy of gasoline (remember octane and energy content are two different things) is the price per gallon going to be substantially lower?
As much as I would like to reduce dependency on foreign oil and clean up the air I would also like not to double my driving costs.
kurt
“My dream is that someone at GM could use a low-cost independent “agent” here in San Diego to collaborate with corporate folks, dealership people and customers to build goodwill, awareness and sales in this prosperous region.”
Excellent idea! And why not use the GM training centers to host more surveys and let customers get INVOLVED with the products they buy? That would give GM a huge leg up on anyone else in building awareness that GM is actually interested in long term customer relationships.
Bill Hanavan
We have decided to purchase a Buick Lucerne over the Cadillac. It just feels like it is the right size and we can get all of the features we want in it. I am a large person, 6′3″ and 200 lbs. and my wife is 5′4″. The Japaneese made cars are too small, in-adequate for me and not as comfortable for my wife. I think it has to do with the reach to all of the different controls as much as it has to do with knee distance to the dash. We need to be able to move around a little especially on long trips. The down side is that we owned a Cadillac Catera that left us on foot too many times. We sold it the day it went out of warranty. Warranties should last as long as the payments last — at least. The Hyundai warranty is great at first look 10 years and 100,000 miles, but it apparently does not cover everything like the GM warranty does. I just wish we could get some kind of credit or compensation for all of the trouble we had with the Catera as an incentive to purchase a new GM product.
Bob Walchli
Bob,
I’m one of GM’s customers that is still licking his wounds from the damage that GM’s vehicles did to me back in the 70’s and 80’s. It is a perception issue with the buying public and it takes time for the opinions to change. It took two decades of crummy products to get us to start buying other brands.
It is like the man that spent most of his life neglecting his body and can’t understand why he isn’t loosing any weight and isn’t feeling any better after two weeks of dieting and exercise.
There are many facets of GM that are broke and it took years to break them and it will take years to fix them. Yup, you are definitely building better products but that is just the first step in getting us back.
He is a question for you, why do you think the public’s perception of your dealer network is often referred to as “stealerships”. Have you or any of the folks that sit in those tall towers in downtown Detroit ever bought a car from a dealer? Go ahead, throw on a pair of jeans and a T-shirt and visit one of GM’s dealers in an “average American neighborhood”. Oh, if you do, let me know, I would love to go along.
For every new car I buy, I am drowned in surveys from GM. I answer them truthfully and send them back. The next time I buy a car from the dealer network, it is business as usual, nothing changes. Want to add some funds to the bottom line, stop with the surveys. I’ve always wondered why the sales’ person offered me free oil changes if I marked all of the survey’s questions as “above satisfaction”, anyone care to chime in and tell me?
I think GM’s next step is to get control of the dealerships. They are what we see of GM out here, and it isn’t looking good. People buy from people, that is the rule, it has always been the rule and will always be the rule, ask any salesperson.
James
Bob
I think there is a lag time between reality and perception. GM is still suffering a bad reputation for mistakes it made 15 and twenty years ago. I agree that things at GM are turning around but the public does not yet realize this. Due to long lead times it takes a long time for things to turn around. I once said GM needs to hire some smart image consultatants, public relations people and psychologist to change its public perception. GM needs to effectively communicate the right message to the public. I think the Lucerne commercials are right on target and are the type of communication GM needs. I think the Japaneese enjoy a not neccessarily deserved reputation for being unbreakable. GM needs to educate the public and continually reinforce a quality image. One thing that always angers me is when this or that commentator says that American cars from the old days were low quality. For many years I saw 15 and 20 year old American cars from the 60s and 70s still on the road. Those old rear wheel drive v-8s were bullet proof.
At some point American cars became unfashionable with trendsetters and opinion leaders. It is the loyal middle American working class that kept the U.S. automakers alive. I think the stage is set for a change in opinion regarding American cars being fashionable again among opinion leaders. But it takes product. Cars like the Chrysler 300, Charger, Mustang, cts, sts and probably the Soltice are cars that will change public opinion. These cars are charismatic. I also think that there is a latent American nationalism beneath the surface. I think there is a certain unease among middle America regarding China, the endless trade deficits and the selling off of America. I think a bigger part of the public is primed to switch to an American nationalistic buying mood. I think Toyota is worried about this possibility. When there is a crisis Americans stick together. For the past 25 years the paradigm has been German and Japaneese are quality and American is not.
Foreign is stylish American is stodgy. It was mainly older people who formed their opinions about cars before the mid 1970s who still regarded American cars as more desirable or at least the default choice. To a large extent these opinion were based on fact as CAFE inspired cars or the 80s and 90s really were unattractive. The result was that more and more of the traditional American buying public switched to SUVs. I think what the SUV customers were saying is that they did not want to buy the uninspiring front wheel drive product Detroit was offering. The SUV buyers were choosing big rear wheel drive v-8 vehicles. The SUV of the 90s was what the rear wheel drive v-8 car of the 60s and 70s was. Meanwhile automakers allowed many of their great brand of the past to atrophy. The automakers became addicted to the high profit margin SUVs and forgot they were carmakers. IN my estimation the decline of the high profit SUV is in large part responsable for GMs current woes. GM needs high profit margin cars to fill in for the shortfall in SUVs. This means more expensive cars such as Cadillacs Buicks and more performance cars like a Camaro. GM needs more high profit margin cars. This can only
be accomplished if the cars are compelling must have seductive cars.
In the meantime keep the turnaround going. Keep improving quality, build compelling vehicles and find ways to communicate with the public that GM really is quality, and that apart from a breif period in the 80s and 90s America and GM have an automobile heritage to be proud of. Cadillac must become the standard of the world again. It must become and equal alternative to Mercedes. The public must percieve Buick as an equal to Lexus in quality. Pontiac must be percieved as a young and sexy mass market car and Chevy should be viewed as the default automatic choice for a mass market car. GM needs to recapture its glory days of the 1960s. At that time most cars were rear wheel drive. Mercedes BMW and Audi all have positive perceptions and they are all rear wheel drive.
James
Bob
Leverage GMs great heritage. Leverage the latent American nationalism that exists beneath the surface. Target one foreign competitor in one market and go all out. For example target Camry in Los Angeles with incentives rebates or trade in bonuses. Do it as an experiment. GM really needs to target young upscale professionals and it needs to increase market share in California. What about mini auto shows with some show cars and restored GM classics alongside the current fare. These mini auto shows could be held in malls.
JR
You ask :
This issue, this question of how do we increase awareness, improve our image, and enhance public opinion of our cars and trucks, is weighing on everyone’s mind in this company ?
Well start with how your allowing yourself to be seen in a negative light all the time by the same “blogs you like” shown to the right of this webpage.
Autoblog’s content about GM is mostly negative but rarely has a bad word about NON American cars.
Could it be because their internet domain is listed out of The Chrysler Building
132 East 43rd Street, Suite 10
New York, New York 10017
Here is just another one of their jabs at GM at your own expense since you market their blog.
http://www.autoblog.com/2006/02/23/the-uaw-jobs-bank-grows-yet-again/
I suggest someone at GM start reading what those blogs are publishing and select those that truely support American cars.
If your going to make it start supporting those of us who have defended you for decades as I have with owning 15 GM cars since 1968 and quit giving away the goodies to guys like Jay Leno he has big bucks and so does Tiger Woods, do something for us little guys.
Luis
Mr. Lutz,
Just check what´s happening at http://www.gminsidenews.com as a result of the launching of the new chinese Buick LaCrosse.
Of course there is a reason for keeping this brand alive!
What a shame that americans can´t have such wonderful car!
Bring Pontiac, Hummer and Saab to Colombia..
Cathy
While it’s obvious (especially with the Olympics ads/sponsorship, Grammy ads, etc) that GM is making a real effort to build excitement, it’s still falling a bit short. The ads targeted to the younger market seem to be hitting their mark as are the Hummer ads, but the ads for the rest of us are falling a bit flat.
I’ve been wanting to buy a new vehicle to replace my ‘95 2-door Grand Prix for the last 2-3 years and am trying to stay loyal to GM since my husband works for a GM division; however, I have yet to find a vehicle that really excites me AND fits a 5′2″ body. I even considered waiting for the new Camaro … until I saw the concept car … strayed WAY to far from it’s 1960’s roots.
I can’t help but wonder how much the company placing such a high priority on cutting costs is impacting everything else, including creativity and innovation. With so little control over their largest costs, everything else is “fair game.” It also appears risk taking is virtually non-existent — possibly because people are afraid to make waves or even tiny ripples.
Additionally, the various divisions seem to have lost sight of the fact that they’re all on the same team. Competition within corporate divisions can be stimulating and motivating … or it can be cut-throat and negative as the divisions, desperate for success, cannabalize each other’s technology and ideas. Food for thought!!
Rather than being reactive and chasing the market (i.e. bring out the Camaro concept car after Ford already has a major hit with the new Mustang), GM needs to proactive and lead the market (as with the Solstice and Sky). And on a personal note, make sure these innovative cars are adaptable to fit drivers who happen to be a bit different from the “average” height — at 5′2″ I literally can’t safely see over the hood of the Solstice. I tried!
In my humble opinion, what GM needs most is a change in culture and attitude from the very top to the very bottom. Somehow everyone needs to come together, under a strong and motivating leader, to work toward once again reclaiming their spot as THE leader in innovation AND quality.
There’s more than enough blame to pass around as to what caused GM to be in this position, but it would sure be great to see GM shock the world by showing that it is possible to bring salaried and union folks together, each feeling empowered to make a difference, working on the same team toward the same goals. I can see the best-selling book now … “The General Returns!”
Rene Curry
More stuff…Create an video-electronic show for the road. I’m talking using semi-trucks! It’s got to be good. The show could be duplicated if needed. By being electronic it could be managed by two guys. A driver and the MC. Then set this show up anywhere relevant traveling the country. Car shows, malls, dealers, festivals, you get the idea. Local dealers could participate to try to line up customers and test drives.
I still like the design team super stars, but keep in mind I thought the GTO was a great idea too!
Rene Curry
Fixing offshore misperceptions of GM…export…if you thought the dollar could get weaker.
1) Open “Premuim” dealers in key offshore cities. These dealers would carry GM upper end vehicles from many brands. Hopefully only key upper end USA models like the Corvette, Cadillac CTS-V, Hummer, etc. This could help promote the kool factor and exclusivity of the products.
2) If the dollar weakens further, I would open up a second dealer network that dealt in VALUE vehicles. This would be the a larger roll-out. It could carry any GM brand from anywhere rolled under one roof. If many of these vehicles were NA exports it could also help your excess manufacturing capacity. Hopefully the halo effect of the earlier released exclusive PREMIUM vehicles would spill over to the VALUE vehicles.
The next election cycle ought to bring many of our trade issues to the forefront, this could be the right time to “open up markets” and get “currency valuations” in line.
‘W’ should be doing his job before he has anything to say about sales and making relevant products.
And don’t believe that you need to customize everything to a specific market. You just need market access without tacking on to the sales price. Value will win.
nino
And while all of the GM cheerleaders are singing the praises of the Buick Lucerne, doesn’t it bother anybody that the base engine in the Lucerne has less horsepower than the base engine in the cheaper Impala? Even the optional V8 engine in the Lucerne has less horsepower than the standard V6 in the new Avalon and Lexus ES350 and the optional V8 engine in the Impala? And you can call the Lucerne a “premier” sedan with a straight face?
And I remember a day when GM transmissions were used in Rolls Royces and other luxury cars because they represented the best of the breed. Now while everybody else has moved on to 5 and 6 speed automatic tranmissions, GM carries on with the archaic 4 speed.
nino
And one more thing:
Am I the only one that’s concerned about GM building components and forcing suppliers to build parts in China? How can you say that you have to “Buy American” when GM itself doesn’t? And when will this short-sighted thinking (yet again) come and bite GM in its hind parts when the Communist Chinese government nationalizes GM’s assets (and those of its suppliers)?
andy
We want the CAMARO!!! And we want it now.
Mr. Langlitz (Germany)
Who’s telling, GM would still offer only 4-speed-automatic transmissions??? The Cadillac CTS already has a 5-speed and the Cadillac BLS, available in Europe from the beginning of April, even is available with a 6-speed-automatic transmission. But I can tell you, even at many European luxury-brands you still can’t find daytime-running lamps. THAT’s obsolete…
Steve Molzen
Dear Mr. Lutz,
I am (was) basing my next purchase mostly on MPG, sportyness and then comfort. It’s obvious to me what that car should look like: A small diesel hybrid. Does GM make such a car?
Yes they do! The new Opel!
http://www.gm.com/company/gmability/adv_tech/100_news/astra_011005.html
Fantastic, where can I buy one in the U.S.A?
Not found.
My next choice must then be a small diesel that gets 35+ MPG. Does GM make a small diesel car that gets 35+ MPG? Yes… but in the USA?
Not found.
My only choice : ( VW.
Sold.
Whoa, did you see today’s headlines!!???
http://www.msnbc.msn.com/id/11538965/
What if these attackers had succeeded? Where would the price of gas go?
Now I’m basing my next purchase on just one thing: MPG.
One of these days these attackers will succeed, or Saudi Arabia will have some reason not to sell Oil to the U.S.A. It’s going to happen. It seems inevitable.
GM could be a national hero… all you have to do is to bring the small diesel hybrids that are already being built into the USA.
I wish you well, and I hope my next car is a GM vehicle.
Steve
Michael
GM does have the cars we want - in their overseas market! Check out how cool the Chinese Buick LaCrosse looks compared with what we’ve got here - http://www.buick.com.cn/
The American version is warmed over from the late 80s, early 90s. Yes, GM can build good sports cars and trucks, but their regular bread-and-butter cars in the U.S. are disgustingly boring.
The Chinese car, on the other hand, looks luxurious - in the realm of a Maybach or Bentley - and it is selling for about the same $30k price point. It would give the Chrysler 300 a run for its money.
Chrysler wins because it TAKES RISKS. GM in America does not. GM is capable of a lot more - and they give the foreign markets a lot more. They give Americans left-overs, and Americans want something new.
Edward
Mr. Bob,
Can you please address one issue.
How is it China gets a better La Crosse than Any Buick Sedan on North American roads today? I visited the Chinese GM Website and was Shocked. You would think those Buicks were European.
Thank you
Bill Aston
Recommend a short advertising exercise. In coastal South Florida the Fort Lauderdale newspaper claims to have the largest classified section. Take a look–any day–and try to locate some “classy” GM advertising. Check for any brand, any dealer, even the mega-dealers. Cadillac sometimes. Others nada.
A sorry state that needs improvement.
Good Luck!
vic
Hello Mr Lutz,
Hi, I’m Vic a market researcher in London. We have a conference coming up. I’m being a bit cheeky but in the UK, market researchers, marketeers, advertizers, consultants etc. are having a discussion on the effectiveness of word of mouth and blogs in http://res06.forumexperts.com
you are a particularly good example of the big guy in the corporation talking one-to-one with customers. Would you be willing to tell us, (probably just needs one post if that fits with you) what you think the benefits(and maybe disadvantages or pitfalls) of communicating with your customers via a blog are. We’d be really interested in your views. We British are way behind the US in this respect and there are lots of skeptics. Plus it would be interesting just to get your view from both the human and commercial perspective of interacting with customers on a personal level, rather than hiding behind a corporate screen. We are so crap at this we could really do with some input from a much talked about example!
Yours hopefully
Vic
http://res06.forumexperts.com
Pat Albrecht
Hi Bob,
Cars are so bland nowadays. HHR’s look like PT cruisers. G6’s look like Toyota Camrys. Lucernes look like overweight Tauruses. GM needs to stop following the pack and set its own path. Since I brought up the HHR, how about 50’s retro? Have you seen the concept car Holden built? It’s called the EFIJY (not the best name). A big swoopy curvy beautiful retro ride that looks like a 49-54 Chevy (in my opinion). How’s that for getting people’s pulse up and setting GM apart from the rest of the pack? Japanese car makers can’t build retro cars because they have nothing to look back to (unless 70’s Hondas start getting cool again). Tone it down a bit, move the steering wheel to the left and add some bumpers (no painted plastic, I’m talking big chrome things). Take a look at early 50’s customs for more inspiration. Put a V6 in the base model and start ‘em in the high 20’s. V8 models start in the mid 30’s. Instant 300c killer.
Andy
Change your definition of the problem. Your post shows two problems, not one. When you change your questions, the answers are clearer. Divide and conquer! Problem A is GM’s reputation, a persistent drag against every effort the company makes. Problem B is car-by-car awareness, sales opportunities in front of the correct customers. One bullet won’t hit both targets. Fixing A sells an image, not a car, while no one single car is capable of saving GM’s rep.
For A, the reputation issue exists. Deserved or not, there it is: Tackle it head on! A brand campaign is what’s needed. Think of big-picture campaigns like Avis (we’re #2, we try harder). Something like that (well, no #2 references)would be good for company morale, maybe even for union negotiations at some point. A splashy “We’re Ba-ack!” or “Sleeping giant? No more. I am GM: Hear Me Roar!” would sure beat the drool-inspiring E85 spots.
Problem B is best served by head-to-head comparisons. The edmunds.com idea is a good start, although when I went there, the kbb prices seemed a pointless turnoff. Honestly. Something more aggressive, like on TV: puzzled guy says “I see everyone driving the MDX, and I wondered why. Then I drove it. I still wonder why. My wife’s Envoy cost $12,000 less, and we got everything we wanted from the MDX, plus the downpayment for my daughter’s house!” You choose the models, but $6K to move up and get a rear-view camera is a bad proposition. I like the camera, but I’d rather get the widescreen flat-panel for the living-room, or a used car for my teenager.
One more tip: Avis’s #2 campaign didn’t take much market share away from #1 Hertz. But back when they ran it, it put a lot of distance between them and National and Dollar. The Lucerne vs. Avalon or Lucerne vs. ES330 may be a good or fair comparison, but you have to measure trade-offs (i.e., it takes thinking, something I, a consumer, say I do but don’t actually do much). So I compared it against a TL and an RL: for the $10K+ difference the swing to Lucerne is a lot easier to make.
Jon
Just wanted to say a couple of things:
First, the post from nino is incorrect. The Lucerne’s optional V8 does have MORE horsepower than the V6 in the Avalon and ES 350. At least the last time I checked, 275 HP was more than both 268 (Avalon) and 272 (ES 350).
Second, I’ve just seen pictures of the Chinese LaCrosse. I think it’s EXACTLY the type of vehicle Buick needs to be selling here in order to move up the ladder to compete with Lexus. I just don’t get why GM sells such great cars all over the world then sells second-rate (in terms of appeal, anyway) vehicles here. I’ve heard the argument that people won’t pay more for GM cars, which I think is a load of baloney. If the cars sold were more appealing, then GM would have no problem commanding a more premium price.
Joe
Bob,
What’s the one thing people who drive imports have in common, whether they are enthusiasts or not? They LOVE the car they own. They are passionate about them. Whether it’s because it has great performance or just looks really nice, or because of it’s reliability or great fuel economy and low ownership costs, people gravitate to German and/or Japanese vehicles because they have strong feelings about the cars they drive.
I drive a 2000 Honda Prelude. It has 144,000 miles on it, all of which are mine. I’ve only changed the belts, brakes, tires, oil, and put gas in it since I bought it. It’s a blast to drive as a 5 speed stick, yet still easy to cruise on the freeway on long trips. I get good fuel economy, and it doesn’t leak or burn a drop of oil. I love the car….. LOVE it.
Why can’t GM see that? When you open a brochure for a Honda Accord - a simple, unassuming family sedan - what do you see starting on the third page? An entire chapter dedicated to the engineering marvel of variable valve timing. For even the most novice car person and unlikely enthusiast, it still grabs your attention and gets you into the car.
I know GM has vehicles with variable timing now, but they don’t TOUT it. They don’t brag about it. They don’t showcase the marvels and get people interrested about it. Today, even people who have no clue how variable timing works still know VTEC. Now, you can print VVT on the valve cover of every Cadillac you want. But that alone is not going to get people interrested.
For GM to succeed, they need cars that people are going to go out of their way to see at an auto show. And not the kind they will never be able to afford. I mean real cars. Honda did it with the Civic Si. Toyota’s doing it with the newly redesigned Camry (now with a 6 speed automatic transmission - hey Bob, the blue square has yet to get even 5 speed autos outside of the Cadillac lineup….. Little hint for ya: the 40 year old 4-speed hydramatic has got to go).
Look at the new lineup for Lexus…. their L-finesse styling theme is beautifull. Is that subjective? You bet. And it’s getting rave reviews. Some of the curves on the GS and IS are more sensual than my last girlfriend!
GM is really still a dinosaur. A lumbering beast of a company that, in my humble opinion, was only as big as it once was due to the fact that it had no serious competition. People have choices now like they’ve never had before. For GM to weather this storm they must start hitting homeruns with every new car they release. Interior designs and plastics that are the best in the business. Engines that you can balance a dime on the valve cover at idle. Reduce recalls, TSB issues, and general cost of repairs. Improve dealer experience. All of those things are needed if GM is going to survive beyond the next 10 years.
If not, I really wouldn’t be surprised to see GM vanish by 2015. Well, maybe not vanish as in nonexistent, but certianly reduced to a small entity of some other corporation.
michael
To Bob Lutz,
Is there a reason, other than the unit cost issue, why car companies moved away from offering a 6-gauge set on the dash. While I would advocate making the 6-gauge set standard on cars, the minimum should be to make them a stand-alone option on any car (Note - not part of a package). And they are conspicuous by their absence on cars, such as GM’s Saturn Ion Red Line or Chevy Cobalt SS. There are many who prefer gauges to warning lights. Lead the way, Bob.
Kyle Maurer
Bob,
My suggestion is to also look at your dealership network and make some needed improvements. I was interested in buying a Malibu SS - submitted a quote request online to 2 different Chevrolet dealerships. Guess what? Neither one would give me a price until I came in. I’ve driven the car, I know what I want, just give me the price! Needless to say, I bought a Sonata, and probably won’t be back to GM for a while (if ever). I’ve owned three GM vehicles, and every time after the sales experience, I’ve felt like I’ve needed a shower to get the “sleaze” off of me. Even marginal cars will sell well with the right dealership experience.
Bruno Pigott
Mr. Lutz,
I’m sorry you’re tired of hearing that GM doesn’t have any vehicles that people want, but you’ll have to pump out more vehicles that are as attractive as the Solstice before people will believe that GM has a good deal to offer. For every winner such as the Solstice or the new Tahoe, GM seems to deliver a real dog of a vehicle, including the new Pontiac Torrent, the GTO, the entire Buick brand (aside from the new Lucerne), and too many others to mention. GM is awash in mediocre vehicles and has few and far between attractive, reliable, affordable cars.
The Camaro introduced at the Auto Show is lovely, but you’d better get the d**n thing to market quick before it is out of date…
Eric Planey
Hi Bob,
First congrats again on recent GM successes. They are slow but sure signs that the general is listening. But then I have seen a few recent items that I call to question. Being a Pontiac fan, I have to comment.
1) The idea of a G5 confuses me. I love the Cobalt, and I hope the next gen Cobalt is already in the works as Honda has upped the ante with the new Civics. But to simply rebadge a Cobalt as a G5 is not the best choice. I have heard that it will have performance orientation, but the skin will most likely look too close to Cobalt. That reminds me of the Ciera/Century/Celebrity/6000 days. If Pontiac wants an entry level 2-door, then look and think out of the box. How about a hatchback based on the Solstice platform? Maybe a cross of the RSX and Mini-Cooper? That would be a model that urban younger people who want flare would migrate too. A Cobalt with a twin-kidney grille isnt enough. I know a Solstice coupe is coming, but give the buyer a car with sport and practicality.
2) I am sad to hear of the death of GTO. The car was too well engineered for it to have this fate. I am sure you are thinking this way, but the retro Camaro should be complemented by a modern GTO, on the same platform. Give it that modern agressive look it deserves. It can be a car that both a Mustang GT owner and a BMW 6-series owner would want.
Good luck and all the best.
Merrill
The Achilles heel of imports is pricing, greed and dishonesty. They’ve had much success and arrogance is beginning to set in. A good example of greed and dishonesty is the Toyota Prius. Those customers have duped themselves into paying much for image, hype and not much else. This will be GM’s opening to begin to retake the market late this decade, but you need to be ready this time. Offer the public an excellent product that is priced right and watch the market begin to shift in a few years. Secondly, get your overhead down and this means get the UAW to face facts (a maximum of $30 an hour for salary and benefits) or show them the door. Success belongs to those take courage and act.
stephen Leonhard
I have a 2005 STS . The driving dynamics are excellent. My only complaint is that the interior is unimaginative and cheap looking. I know GM can do better.
The Mercedes dealer in Birmingham, Mi advertises as being “of Bloomfield Hills” a far more upscale address. Such phony pretentiousness speaks volumes about the dealer, the product and the wannabes who buy it!
Andrew Varno
First off, let me say, you’ve got to take a Field of Dreams approach. If you build it, they will come. However, you’ve got to cut your development cycle times down. Look at DCX, how long before the LX cars hit the road from their first show appearance. Honda’s another great example. You couldn’t find out much of anything about the new Civic until its official announcement. Then shortly after, you could, gasp! BUY THEM! GM is behind just about everyone in this. It makes it look like it takes too long. Hold on to new product information a bit longer. The longer the lead time before first announcement, the more people’s dreams are disappointed by production realities. Also, the new releases need to be spaced accordingly so it looks like you’re always innovating, rather than dumping out product and trying to look like you just inherited a windfall and are playing catch-up.
Second, it’s time to take these Consumer Report and similar lunatics to task. They’re not doing you any favors with their biased reporting methods. Start a secret, guerilla style campaign and conspire against them. Support those that know their secrets, like TrueDelta. It’s high time people stopped relying on these to make their decisions. Primedia magazines routinely favor any Japanese made car, regardless of their faults. Talk about brand engineering, these guys all go to the same press release, write the same article and are published by the same company! And fight the other companies indirect anti GM ads. It’s shameful that Ford constantly gets away with saying they sell more trucks. They don’t, because they don’t count GMC and Chevrolet together. No buyer is fooled that those are different trucks, so why let the marketing types of other companies, or the Best Seller listers get away with that.
You have a rabid following in fans of the Camaro, Caprice, Impala, S10, fullsize trucks and Vettes. Become more familiar with these communities. These people may not represent direct dollars in sales, but make no doubt about, these are the people that influence countless others through their words. Help them. Build cars FOR them, that they WANT, and the goodwill will flow. If anything that GM is missing right now, it’s goodwill. Take a look at the incredible guerilla PR work done by Guy Kawasaki’s Mac Addicts back in the early 90s. Go hire Guy. Put him to work. Every time someone wrote a review that was simply biased against Apple, thousands of emails were sent to that author deriding him for his bias and lack of journalistic integrity. And these were all people that were fired up about product at one of the lowest points in the company’s history, who independent of any direction, took matters into their own hands. Cultivate these people, and reward them in their efforts.
Third, you have to make every single person in that massive company work towards one goal. “How does this affect the consumer’s depreciation of their investment?” Knowledge is power, and as such, we’re all becoming a lot more powerful when spending our money, because the information is more accessible to us. In an hour, I can provide you with a picture of a vehicle’s depreciation over the course of five years, the typical time for an auto loan. And by no means, would I consider myself financially saavy. But in that hour’s work, one thing becomes clear. When compared to Japanese manufacturers, if I buy domestic, I am planning on losing money in the thousands of dollars over the course of my ownership. Now, figure that I don’t want to keep the car past three years, and your position loses even more favor.
The only way that I can figure to go with a domestic, is if you offer me something unique to the rest of the market that will offset this financial loss. The Solstice accomplishes this nicely, and given everyone’s disapproval of the PT Cruiser, I think the HHR seems to be doing that too. But these are halo vehicles and their profits don’t significantly help the company. That being said, can you really be at the top of the game against the Camry and Accord. No, of course not. I don’t think that’s a realistic proposition. Fighting it with a bigger and more powerful Impala, as well as a sportier and smaller G6 makes sense in certain lights. But you’ve got to spread those ideas with the general public. It’s all in line with looking at GM as one provider of many needs, but sticking a stupid piece of plastic that says GM on the fender of every vehicle isn’t helping. Some previous posters are spot on about marketing GM as a whole. Play up those strengths. And fight the perceptions that come up, like a Cadillac is an expensive Chevrolet. It isn’t. Make people aware of that. I can’t think of a company that failed by telling their customers MORE about their products.
Finally, and it’s been said before… you HAVE to address the dealer problem. They make money hand over fist because 1, they deny it to their employees in a variety of ways, and 2, their lending institutions, not themselves are buying those cars. They don’t make a thousand dollars on a 20K deal, they make a thousand dollars on spending 125 in interest for 30 days. What does GM care if the Solstice sells out the first week? Why let them drive the price up out of the buyer’s abilities and extend days in inventory? The former makes GM look like they have a product that sells, and gets people interested. The latter just makes Moody’s more disgruntled. The dealer experience is marred by awful people at the local level with any manufacturer, not just GM. If I buy a Honda CRV today, I have three basic choices in the lot, and consequently, three price levels. And amazingly, those numbers actually jive with what I’ve researched on-line and in print. I don’t think anyone can totally say the same for GM products. Simplify, simplify, simplify. In some contrast to that, the different option levels available are staggering, particularly for the trucks. While it’s great for that diverse market, it’s completely discouraging to need to buy heated leather seats to get traction control, or something equally asinine and unrelated.
John P
Mr. Lutz, I would agree that GM’s newer vehicles and most recent launches do show a significant improvement in the company’s vehicles in all areas. Drivetrains, interiors, exterior design, etc. GM is facing a public perception problem they earned with a decade plus of selling bland carbon copies of the same vehicle at every division with sub-par quality and iffy reliability. What GM should do with it’s marketing is convince these people it is time to give GM a second chance.
How to do that? First, get your dealers to shape up or start yanking franchises. Especially on the service end. Most people that feel their car is junk these days tend to have problems with it that the dealer cannot take care of. Locally, import brands such as Honda pay their technicians more than the GM and Ford dealers, which should generally mean that they are attracting a higher quality technician to help them better adress problems.
Second is plain old customer service. These dealers often give out misleading or outright incorrect information. I moderate on solsticeforum.com, and I cannot tell you how often someone came onto the forum with “new information” from the dealer about the car, their order, etc that was completely false.
Finally, I think GM should seriously look into going to a no-haggle pricing structure across the board like at Saturn retailers. You now have the lower sticker prices in effect to accomplish this, and can still give dealers a $500-$1000 rebate on slower moving models to entice buyers. The employee pricing over the summer should have been a big clue that people really like the no haggle system.
In reality, these dealers are the face of GM. When someone has a problem with a dealer, they equate it to having a problem with the manufacturer.
On the marketing end, continue to stress the quality awards GM has been winning. Buick consistently ranks very high in reliability, initial quality, and owner satisfaction. Tell the country about it! Shout it from the rooftops!
Another complaint with GM is often regarding the over head valve engine design of many of your V6’s. The imports have sucessfully marketed HP per displacement as the best measure of an engine’s level of development. Tell everyone why you use OHV engines. Highlight the power and mileage advantages of the 3.5L compared to the less powerful and just as thirsty DOHC 4 cylinder’s in competitors sedans. Highlight the more efficient packaging, allowing the OHV to have more power per square inch of engine. Just get the word across that your OHV V6’s aren’t just old engines, but have plenty of modern engineering and technology in them.
Get people back into the showroom, and then make the showroom someplace they will want to do business in, and you will be in far better shape!
William Lanteigne
“This issue, this question of how do we increase awareness, improve our image, and enhance public opinion of our cars and trucks, is weighing on everyone’s mind in this company, from the plant floors to the boardroom.”
I’ll suggest that you sponsor a series of hour-long “Infomercials.” They sell kitchen appliances, knife sets, makeup, and acne treatments through infomercials- it’s a proven, successful marketing method. I suggest, first of all, an introductory “This is the New, Improved GM” infomercial, telling HOW nad WHERE you’ve made improvements, and introducing the current model lineup.
Get Jay Leno to “host” the series, he’s a serious car nut. Follow this with an in-depth look at the various types of GM models- small cars, mid-level cars, luxury cars, light trucks, SUVs, etc., an hour-long infomercial devoted to each. Follow these with brand-specific hour-long infomercials, introducing the people running each division. Give us hour-long tours of production facilities, design studios, concept vehicles, and don’t forget to use lots of the classics of yesterday; it might be instructive to see how a concept vehicle has been influential on production vehicle design.
We are all weary of hearing that “GM doesn’t have any vehicles that people want” or that GM “doesn’t excite anyone” or doesn’t have any products that are “relevant.”
Sorry to see you feel that way, but you’ve been lolsing market share for decades, and it isn’t all because of “bad press” or “hostile journalists.” Believe it or not, most people in the field of automotive journalism want desperately for GM and other domestic car companies to succeed. Perhaps there are some hostile reporters, but I think the problem lies more with GM executives being out of touch with their customer base, and of the customer being unfamiliar with the people in charge of the car companies. Have any of your executives ever been on Oprah, or The Tonight Show?
WHL
Scott
Continue to make new products that the public will want to purchase while trying to keep them manufacturered in the USA.
Build it and they will come. Look at Cadillac. Look at what’s happening to Pontiac.
I know in the world of China and globalization you want to produce as much as possible overseas, but some of your customers appreaciate the fact that GM designs and makes American cars here in the United States of America. Don’t lose sight of the fact that you have a loyal customers who want to purchase goods manufacturered here.
Forrest
Bob - I am typically a GM buyer, and I can finally afford to buy the cars I read about in magazines. I can buy anything I want…and I want excitement. But I also have a large family. What is missing from your line-up are cars that men would be proud to own, but that can haul a family of 5 or 6. I want a large sedan with outrageous horsepower.
GM’s problem is obvious. You are cutting away all of the things that loyal GM customers have known for years…you got rid of Oldsmobile, and recently you canned so many mainstay cars it makes my head spin. The Bonneville, LeSabre, Caprice, Camaro…there is so much change and so many new cars in the company that all of my sentimental attachment to GM is gone. Stick with your brands, stick with your cars, and design them to be cooler and faster. Make them in all sizes. Bring back the old lines and stick with them.
For example. I own a new Ford Mustang GT. It’s cool, it’s fast. It’s the first Ford I’ve ever bought. Don’t you wish you still had the Camaro line to revitalize like that? Now you’re coming to the party way too late with a new, cool Camaro that must be resurrected from scratch.
What’s with canning the Bonneville and LeSabre? Great cars, great quality ratings, great safety ratings…the Bonneville was by far the best sedan I ever owned. Now the car doesn’t exist anymore. My excitement over what GM had, even the best of what GM had, has been scrapped for new names and new cars with no heritage with which loyal GM buyers can associate.
Don’t ever change a logo. When an old company changes its logo, like Oldsmobile did, I know the end is near. Look at the GE logo…it’s old fashioned, but the stability that the continued use of that old logo represents in consumer confidence is worth millions in sales. When logos change, it means new management is in charge and the company has lost its way.
For whatever it’s worth, those are my thoughts. Bring back my Bonneville, make it sporty looking, seat 6, automatic, V8 with 400 to 450 horsepower.
nino
Just wanted to say a couple of things:
First, the post from nino is incorrect. The Lucerne’s optional V8 does have MORE horsepower than the V6 in the Avalon and ES 350. At least the last time I checked, 275 HP was more than both 268 (Avalon) and 272 (ES 350).
You’re right as I was using the old method to determine the HP rating.
But still, that 268HP in the Avalon is available in their BASE engine.
I just think that GM has the tech to do better.
Sue Plier
Want to increase the traffic in GM showrooms? Give your engineering teams and designers the flexibility to spend their time working on great products instead of appeasing Bo Anderssen’s penchant for cost reductions. It’s showing up in your showrooms - cheap cheap cheap. Get rid of Bo and maybe you’ll have a chance. He has succeeded at reducing the once greatest American automobile company to building the most POS cars available. There is no longer pride in your work and it shows. There is no reason GM can’t compete with the best - the problem is at the top with the focus on reducing costs instead of designing and engineering great products.
Tom W
I just came across this story and something occurred to me:
http://www.freep.com/apps/pbcs.dll/article?AID=/20060225/BUSINESS01/602250316
Why not offer stock options to buyers of your vehicles?
John Consumer
William Lanteigne is spot on in his comments. The exec’s at GM continue to blame most of their current woe’s on the evil media. It wasn’t too long ago that BMW was getting absolutely bashed by the “Bangle butt” and iDrive disasters. But unlike GM who would have denied the obvious truth, BMW has made improvements pretty quickly -especially considering the initial investments in tooling and technology. They listened to their customers and did something about it. GM needs to do the same and change the path NOW because what you have been doing for the past 10 years IS NOT WORKING. Hello - anybody listening - Jim Queen, Bo Anderssen, Rick Wagoner? This isn’t the media talking guys - it’s your potential future customers. Keep driving in the current direction of decontenting, cost reducing and denying and someday we’ll all know the legacy you will have handed down - the end of cars “made in the USA” by American owned companies.
Ed Gansen
Bob,
How about some feedback to the blog on the quality and innovative thinking of the ideas that this February 16th posting generated in a ten day period.. I think that GM heard a number of excellent ideas that could be implemented quickly. What say you?
Also, today (February 26th), the CBS “Sunday Morning” show had a five minute piece on Toyota quality that was 100% positive toward Toyota. Why don’t you get on one of the similar shows (especially during prime time) and talk about this blog and the changes that GM has underway?
Go GM!
Larry
Mr. Lutz,
I have written before about the completely undeserved bad reputation smeared around about General Motors. It has been going on for decades and has been ignored. Example: remember the Times story in the mid eighties, all black GM cars on the cover, titled something like “they all look alike”, it put GM down big time, and that is but one of countless examples. Today, the Camry/Avalon/Lexus all look alike, no one is pointing that out on the cover of Time. Toyota could build a rolling toilet and still be the darling of the main stream media and auto publications (all from the same mold). You are getting the same kind of PR as the Iraq war, all one sided and all bad. I said it before and I’ll say it again, some entity is trying to kill GM and the whole nation as well. Kill Big Oil, Kill Wal-Mart, Kill Haliburton, kill Big Pharmaceutical, no success allowed for evil American Corporations. These people don’t realize who provides the jobs, goods and services and who also pays the bills. You won’t print this reply because GM is trying to be too politically correct. You don’t need more diversity etc, you need people who will get the job done best, whoever or whatever they are. Things like pandering to the Hollywood left by sponsoring their elaborate shows, won’t fix GM’s problems. How many of those stars drove home in their Benz or Lexus? I can’t believe no one inside GM realizes this is going on.
David Hoff
Bob,
Andrew Varno got this one right. “…it’s completely discouraging to need to buy heated leather seats to get traction control, or something equally asinine and unrelated.”
How is this for “equally asinine and unrelated.” Just try to buy the 06 Impala with the heated leather bench seats. If you want that option, you have to buy the bigger engine and a lot more gasoline over the life of the car.
Believe it or not, some folks want all the toys on the car and want the most efficient engine.
Dave
Teresa Zenorini
Here is part of GM’s problem for sells. I have been waiting to buy a convertible from GM for a long time. The corvette and the XLR are too expensive. I checked out a Pontiac Solistice last weekend. Suppose to start at $19,000. To my dismay, the dealership wanted $3000 over the MSRP!!!!! Twenty-eight thousand dollars for a car with no adjustable seat or automatic transmission!! If I ordered one, they said I have to wait 1 year!!!! Now the G6 coupe will be available they say in the summer. I have my doubts about that. The Sky is not available either. If I was not a loyal customer of GM, I would have a convertible by now. There are plenty other convertibles out there! So why does it take GM so long to produce a car???? Figure that out and the sells will be there!
E T B
Since it’s obvious that shooters inside GM really do read this board can you do something for us?
Saw the pictures of the HHR Spring Edition interior online, by all means make this interior a regular option. My lease runs out next fall and the HHR is high up the list of considerations.
PacerX
“How is this for “equally asinine and unrelated.” Just try to buy the 06 Impala with the heated leather bench seats. If you want that option, you have to buy the bigger engine and a lot more gasoline over the life of the car.
Believe it or not, some folks want all the toys on the car and want the most efficient engine.”
The V8 gets basically equivalent gas mileage when compared to the mid-level V6, and 3 mpg less than the 3.5L V6.
21/31 (3.5L V6) vs. 19/27 (3.9L V6) vs. 18/28 (5.3L V8).
So, let’s say you drive 15,000 miles per year…
If you average the fuel usage for a year, meaning half your miles are highway and half are city, then the 3.5L V6 will use 577 gallons of gas for one year’s worth of driving, while the 3.9L and 5.3L will use 652 gallons.
At $2.30 per gallon, that’s a difference of $173 per year, or $14.42 per month.
Now, are you really gonna claim that $14 per month is a CRITICAL issue? And if so, might I suggest a Malibu instead?
BTW - that DOD 5.3L V8 is one amazing piece of engineering. Toyota, Honduh, and Nissan give you LAME OHC 190-260hp V6’s… Chevy gives you a fire-breathing V8… with better fuel economy… for less money.
Win/Win/Win.
PacerX
patrickmichael
Larry says: “Today, the Camry/Avalon/Lexus all look alike, no one is pointing that out on the cover of Time.” Amen
Not to mention Accord/TL, Maxima/GS… What Toyota, Honda, Nissan and others have figured out however is to clearly differentiate the models so they don’t look like almost exactly the same. Take the new Tahoe/Yukon/Escalade, or even the Equinox/Torrent - from the front your designers did a decent job of distinguishing the models, but the rears could all be the same car. How about some more creativity bewteen models that share everything else?
If the G5 is introduced as I’ve seen it, I will simply just give up on GM. Doesn’t it hurt to keep banging your head on the wall?
Buick Grand National
One more thing… Do what Don Fites did at Caterpillar. Kick UAW to the street. http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_levin&sid=aq3zzOgI5pfg
getalifeagain
If an article I read a few days past is correct, then GM and Ford are in for big changes.
Management must change its attitude. No more of the bean counting. And for now, much, much more of guiding their respective companies to durability, highest quality, fit and finish, finesse both in ride and interior look, AND superb looking autos. This is what management is to do, and it can accomplish this by giving this directive to the engineers and manufacturing, and then keeping their hands off those two departments. Management is also key to getting financing for the giant changes. Stockholders for now will have to do just that; hold. And of course Marketing will need some management, but if the cars are of the highest standard and the BEST LOOKING, they will market themselves somewhat (word of mouth, etc).
Management for now can just guide their companies, like a ship in the dark night, watching out for glaciers and other sea faring garbage, so they can get to their port of destination safely.
Tom Guarriello
Can I ask a question? How can you put up a post like this and then ingore almost 300 comments for almost two weeks?
Scott
Way to hold the line on those incentives.Was it 4 whole weeks,I cant believe you guys
vic
OK, now I’m getting it. Hello Bob’s minions (filters, the people who really respond to comments and filter them).
I asked you a genune question, we want to learn how effective caring about your customers and their opinions really is. But you’re not going to respond, because you don’t respond. It’s just another PR exercise. Or is it. Looking at how your site works, It’s easy. You just spout off and let people come back, filter them, let a few renegades get through, and manipulate the message.
That’s Ok, it’s business, but there are business people out there who genuinely believe in being close to their customers. They believe that it’s not scarey to communicate (in an un-choreographed way.) with their business partners - the people who buy their product - And they learn a lot! Would it really hurt to talk to people who want to understand how WOM works in http://res06.forumexperts.com
Stop being clever, start talking!
I bought into the whole Chairman talking to users thing. But it’s not as simple as that is it?
Cynthia Hickman
Mr. Lutz,
I am one of the 100,000+ production workers employed at General Motors who is concerned and worried about not only my future, but the future of this company as well. For what it’s worth, I have a few observations of my own about how we could do a better job promoting and selling our vehicles. Herewith then are just a few…
Perception is reality and at this moment in time, our products are seen as stodgy, testosterone-laden, inferior quality-wise and otherwise invisible. Is this a true reflection of our products? I think for the most part, it is not. So, when is our advertising going to reflect that?? Interject more diversity in your advertising team. Enough with the emphasis on horsepower, torque, etc. and the rock n’ roll music from the 1960’s & 70’s…that appeals to one focus group, namely middle-aged white men. In my estimation this is preaching to the choir..these aren’t the folks we have a problem selling our vehicles to.
Increase advertising about our winners. The Chevy Mailbu is exactly the kind of car Camry/Accord buyers are looking for, but GM has not emphasized its unique attributes-specifically its superior quality and features in comparison with the aforementioned competitors. It seems to get lumped with the entire Chevy lineup and lost in the shuffle as a result. I’ve had more than one Camry owner ask me what GM product competes in that class..obviously the word is not getting out. We finally have a true winner here..ADVERTISE IT!
A couple of more subtle annoyances that need to be addressed are the endless mindnumbing ads from local GM dealers, dressed like used car salesmen, shouting at the camera about how big their latest sale is. This cheapens our image. One last thing, albeit small..it’s time to upgrade the Chevy bowtie logo for certain models. Design a sleeker, classier bowtie for your car lines. The Malibu and Impala should not have the same big boxy bowtie you find on the front of our pickups.
Lean on the success of the Cadillac line. What we have done with that is impressive and we need that same distinction with more of our products.
Finally, thank you for this blog..there are a lot of good, thoughtful folks out here who really care about this company and the direction it takes, and it is nice to finally have a voice in that effort.
Anonymous
A personal note to Bob Lutz or other GM executives who post on this site: It’s getting tiresome to read the same trolls over and over.
The longer warranty trolls who don’t understand that your expenses will be increased dramatically and any sales increase will very likely not offset the expenses. And rich companies like Toyota can afford to match or beat any increased warranty, thereby negating any competitive advantage.
The diesel trolls who don’t understand that the restrictive emissions laws in California, New York and other states makes selling clean diesel engines there difficult or impossible.
The Camaro trolls who selfishly insist on having their street-racing hot rod toy right now, who don’t understand that it’s not in GM’s best financial interest to put a low volume, low profit coupe ahead of other higher volume and higher profit vehicles.
The RWD trolls who seem to really believe that making cars that will be more expensive and drive worse in the snow will somehow miraculously save GM.
I’m getting tired of reading posts from these uninformed, naive people on every article. You need to answer these trolls and shut them up with an article that explains why they’re wrong.
Alister
Bob,
Congratulations on the Tahoe, Corvette and Solstice. These are beautiful designs that are well engineered and will undoubtedly be winners for GM. But I want to suggest that you are still primarily designing vehicles for the traditional domestic car buyer. I find GM (and other domestic designs, for that matter) space and visibility impaired. Waistlines and cowls are high, and windshields raked too far back. This sort of design seems contrary to the fact that traffic is taller, denser and drivers’ average age is getting older. We need to see out! Even the Solstice, a car I would buy, seemed very claustrophic with the top up compared to the Miata or S2000. It may seem like a small thing, but I suspect subconsciously it is a huge factor. Afterall, why did the Mustang outsell the more technically superior Camaro for so many years? And why are SUVs so popular? It probably isn’t because of their off-road capability!
You may respond that a car that fits my “tall sedan with big windows” design parameter is the Ford 500 - not a great success. I would suggest that the 500 is indeed a good design, but it is too large to appeal to the efficiency-oriented, and has too small an engine. GM’s own Malibu actually almost fills the bill, but to get the SS I have to put up with a depressing coal-black interior.
GM has a lot of engineering capability and with your good product judgement, should survive this difficult period.
Good Luck,
AWB
Rene Curry
I hate paying to see a movie and see advertisements. But it’s even worse if there is nothing to watch while waiting. Consider a very short info-mercial for theatres. It should be educational and fun. It would be kool to focus on design, manufacturing, innovation & quality. As mentioned above, Jay Leno would be an awesome candidate. Fun and a respected car guy. Tie Jay in with Ed Welborn.
Dave Lawson
Sitting here in a hotel room in Shanghai, having nearly completed a very tight competition for some parts, leaves me little doubt that we will see an increasing number of GM cars built in China. Not only for the domestic market here, which already appears to have more Buicks per mile of road than in North America (albeit China build Buicks), but we can expect to see much more of this in the future. Large future programs coming out of Daewoo to be GM tagged will also play a large role.
If I was UAW, I’d be very scared.
When a half hour taxi ride costs around $3 US, a hand made suit costs $62 US, one doesn’t need much imagination to figure out where this leads.
It will be an interesting challege, however, to see how the quality stands up.
One has to wonder with the import makers moving their consistently rated high quality vehicle production TO North America, what this bodes for the future of the North American auto business. Soon it will be Toyota and Hyundai that will be waving the flag, proclaiming “Made in America”.
Interesting.
CodyS
Dumping the Monaro as a wanna-be GTO was a start towards improvement. Just don’t make the same stupid mistake twice please.
Tim Chambers
Mr Lutz,
Your effort to use this new media is admirable but I think General Motors, and the auto industry as a whole, would be much better served if you undertook a public relations campaign on behalf of a National Health Care Plan; one that relieves your industry of its burgeoning medical costs, thus improving its competitive position vis a vis TMC et al. It would definitely raise your company’s profile and gain you a lot of support among those in the market segments you target. It won’t win friends among the Bentley set, of course, but they aren’t your customers anyway.
Dan
Mr. Lutz: I recently resigned from GMAC after 11 years. I still care a lot about the Company’s success due to the number of friends and family that depend on it for their livelihood. Like you, I am also weary of hearing that GM doesn’t have any vehicles that people want. I have a suggestion about advertising impact, an area where I think GM flounders. Consider the success of Oprah’s Book Club and the power of celebrity testimonials in moving product. GM advertisements lack “PERSON”ality. There is certainly more to the Buick Lucerne than heated windshield wiper fluid. An automobile purchase is extremely emotional. Once scorned (with poor quality or design), a customer will likely not return and their views can rarely be influenced. I would highly recommend that GM use celebrity testimonials with strong “PERSONAL” messages about their experience as (or knowing) a GM customer (ie. design, quality and safety). Think of the success of Oprah’s Book Club when you consider the power of celebrity testimonials. Jessica Simpson’s grandmother might be an Impala Driver. Eva Longoria’s Father might drive a Silverado. Brad Pitt’s nanny might drive the kids to the park in an HHR. George Clooney’s long lost aunt might drive a Lucerne. Customers need to be influenced with powerful testimonials. Advertising must hit a homerun on a personal level and people will start to notice if GM has won back a few notable celebrities or their family members. My thought is along the lines of the OnStar ads that feature audio clips from real calls. Those are powerful messages because they are “personal”.
Cliff
I am reading in Automotive news that GM is ending production of the GTO. Gee I’m not suprised since it was far from the effort you put into the Camaro. Lutz likes to refer to Pontiac as a Damaged brand but the GTO was an absolute failure because GM threw the idea together and said here you go! No one was listening when we, the BUYERS, said we didn’t like it. I had been wanting a GTO for years but when I came to the Auto Show in Detroit I saw a Beautiful Mustang and an, oh by the way here is the GTO. Talk about a let down. But Bob Lutz and the gang would rather ditch the GTO under the Damaged Brand Guise rater than admit they gaffed and go back and do it right.
I have been buying Chevy products because Pontiac didn’t have a car that I liked. Looks like I have to keep waiting. Her lies the GTO. AKA the Great One.
The Muscle Car that Ruled Woodward in the 60’s. Laid to rest under a Chevy Nova shell in the 70’s. Revived in a half hearted effort in 2003 only to die on the sales floor due to lack of vision and hearing in the design studio.
bernard a. sznaider
Bob, I think you should run for President of the U.S.A. Not that you can be one because you weren’t born in the U.S.A. But that doesn’t say you can’t run. You can bring to the platform the demise of the U.S.A. Automobile Industry and in particular G.M.’s due to government inaction and do it all from tax free donations,and government matching electon funds. Somebody has to stand up for the Automobile Industy and nobody seems to be coming to the table. What do you think?
Tony Plummer
Mr. Lutz, you asked what GM can do to improve its image. I have not read all of the comments, and being that this is down on list you may not read mine. But I’ll lay it out.
First off, improving the image among older buyers will be difficult if not impossible. The only thing that will work is consistantly improved design and long-lasting quality in those well-designed vehicles. GM’s reputation wasn’t destroyed overnight, but over decades. While Cadillac came back quickly, notice it was because of radically different styling and quality in those vehicles. I believe the quality is there, and what you need is stronger design language throughout your lineup. Toyota earned the right to bland shapes by making a quality product for years, GM does not have that luxury. I do believe GM is moving in the appropriate direction given the G6, HHR, and other outstanding designs.
Secondly, I’d like to turn your attention to the process. Toyota’s success is predicated on process, not product. Eliminating the adversarial relationship with not only suppliers but labor will go a long way toward efficiency. I’m sure a man of your position is familiar with Kaizon and lean-manufacturing. This is another battle that won’t be won in the short term, but is essential in the long term.
Third is marketing. Marketing is toughest to get done right, because unlike quality assurance, process reform, and making striking design, it’s something that’s nebulous. Let me use examples to prove a point. MINI makes luxury compacts, a niche that is barren. They sell it by saying it’s unique, playing into the demographic. You can’t sell a Malibu like that. Toyota sells a Prius that does not get substantially better mileage than their Carolla by catering to those who are environmentally conscious (and then by packing in the tech that those buyers want - no Bluetooth in a Carolla). What you need to do is threefold:
1. Clearly articulate what each brand represents. What is Buick? I honestly couldn’t tell you. If Pontiac is the performance division, why is it selling the Torrent? That’s not to say there’s no room for a base G6, but there must be a performance G6 GXP. You sell the lower model by advertising the awesome top of the line model.
2. Stay on message. The Saturn buyer is likely a new buyer or previous Saturn owner. They must be unique in appearance and not, say, another CSV clone of a Chevy. For the most part this is being done, but cars like the Torrent, the G5, and the Sky dilute that message. If you’re going to sell 30 cars as 80 different badges, differentiate them like the LaCrosse and the Impala.
3. Appeal to the demographic. Every new car needs a purpose, and then market it as the solution. The Solstice is a perfect example. Its purpose is to be the best two seat roadster under $30k. It hits it. The ION is an example of missing the purpose entirely. It was borne of “Saturn needs a small entry level car”. It needs to be young buyers want something affordable, customizable, and hip. Remember that cars built to a purpose and accomplish fulfilling that purpose succeed.
If you create product with the customer in mind, then the pieces fall into place. If you create the car, then ask, “How do we sell this?” you get Azteks. Keep producing quality products that meet pent-up customer demand and you’ll have hot models. Word of mouth on those products will spread and GM will be considered for bread and butter sedans. Remember that when you attack niches (like the WRX did with AWD rally sedans) you’re the only game in town. I want a RWD performance oriented sedan or hatch, but no one makes it. Even if I were anti-GM, if you made one and that’s what I wanted, I’d have to consider it. If it were well-built, then my friends would hear about it. And so on. By being the only game in town, you can surpass your reputation and allow customers to truly rate a car on its merits. Look at the abysmal quality over at Daimler-Chrysler and look at the success of the LX platform. It’s the only conservative, large, “American” RWD car.
A good car will sell itself. Make sure that when the hot, niche-attacking car gets to the showroom that every other product there is something that you’re proud of. That’s what will make or bread a reputation.
Thank you for listening. I’m a huge fan of yours and wish you the best.
Rick Lupori
Mr. Lutz: The auto market is driven by desire, not need. If cars were replaced like washing machines over 80% of new car buyers would either not have a car or trade one with over 150,000 miles on it. Auto companies increase profit and market share only by creating vehicles consumers desire, not ones they buy on price.
How can shrinking GM save it? For those who do not know, when GM dropped Oldsmobile the only thing it achieved was essentially losing every former Oldsmobile buyer to a non-GM brand. If GM can stand to lose more customers, have at it - the results of dropping a division is a known quantity.
Fleet sales are another area where GM is supposed to just to give up on, what is the point of knowingly giving away sales? GM does make money on fleet sales, why just give it to Toyota or Honda? Neither of these companies will worry about reduced residuals from the extra vehicles available in the market due to fleet sales.
GM’s top 12 problems are:
Problem #1: WAIT TOO LONG TO ACT.
Guaranteed, that if Ford had not successfully redesigned the Mustang the Camaro would never have been thought of, even though Camaro enthusiasts have been screaming for one for years.
SOLUTION: A 55-57 Bel Air retro-modern styled Sedan, Convertible and Nomad based on the next Trailblazer chassis (it should be body on frame like the original) would give GM some very desirable large RWD/AWD sedans.
Problem #2: OVER ANALYZE EVERY MODEL BEFORE COMMITTING TO THEM.
Anyone remember the Aztec?
SOLUTION: Take the just introduced Opel Astra and offer all four variants (3 door, 5 door, Estate Wagon and Twin Top) in the US market as soon as required standards can be met. This will save millions of unnecessary “Clinic” costs and start generating revenue.
Offer the excellent Turbo Diesels and Easy-tronic transmissions as options.
Follow-up with the Meriva and Zaphira as well as a Vectra Estate model for Buick.
Problem #3: PRODUCE MODELS WELL PAST THE POINT THEY SHOULD BE REDESIGNED.
This results in unnecessary marketing expenses to introduce a “new” model name. The 4 year replacement cycle for cars has been set and proven successful for over 20 years. This strengthens residual prices for lease sales by keeping the product fresh and offsets negative effects of fleet sales.
Some examples:
Celebrity- Lumina - Malibu
Cavalier - Cobalt
Regal - LaCrosse
SOLUTION: Starting with the 2007 Aura and following with a new Malibu, G6, Malibu Wagon, 9-3 Sedan and Century Luxury Sedan and Estate. With eight available models and a four year replacement cycle GM can offer two (2) new models every year. The SAAB 9-3 should be offered in an AWD 5-door version with optional Turbo-Diesel.
Problem #4: MAKE BASE TO MID-PRICED MODELS THAT LOOK LIKE RENTAL CARS.
Because customers can get a Camry that does not look like a rental car 60% of Camry sales are 4-cylinder models. GM cannot compete with Toyota because the G6 and Malibu 4-cylinder models have a limited option list and most equipment is not available at any price. The Malibu and G6 need a strong 4-cylinder model; this can be remedied by offering the 2.4L Ecotec 4 cylinder engine in a well equipped model.
SOLUTION: A G6 SE with 2.4L 6-speed manual (that shifts like an Accord) standard 8-way power seat, 4 wheel disc brakes, alloy wheels, fog lights, steering wheel audio controls at under $19,000 and optional 6 speed automatic for under $20,000 could increase G6 sales over 30%. If a comparable Malibu RS were offered with the 2.4L in place of the existing 2.2L, a similar increase may be achieved.
A different model designation like the G6 SE makes it easy for a customer to go to a dealer and say “I would like to test drive a Silver G6 SE” Honda has been doing it for years with the DX, LX and EX models; Honda made its reputation on 4-Cylinder LX models.
Problem #5: OFFER LIMITED OPTIONS ON MID PRICE MODELS OR ONLY WITH UNRELATED PACKAGES (SAFTEY FEATURES ONLY WITH PERFORMANCE OPTIONS).
Fog lights only with large engines.
After entering a foggy area and slowing to half of my previous speed I wondered why I needed another 50 HP to take advantage of this feature.
A buyer cannot buy a G6 with a cloth 6 way power seat - not at any price. If you want a 6-way power seat you can only get leather ones.
See the PacerX post from 2-27 on a similar problem with the Impala.
SOLUTION: Why doesn’t GM put the bucket seats on all models and just change the console on bucket seat models for a center seat (with storage) to make a bench. Many buyers like the leg room offered by the bench seat (no console digging into the side of your leg) but like to have some storage. The buckets offer superior comfort and the center seat will only be used occasionally for very short trips so making the center seat with storage under the bottom cushion with a storage console in the backrest maintains the best of both. It will also reduce part variation on the assembly line
For a starting point copy the HHR option list for all Chevrolet family cars.
Problem #6: GM DOES NOT TAKE RISKS.
SAAB models just go along with the crowd
SOLUTION: SAAB interiors should emulate Scandinavian design with clean lines and lighter wood tones. They should also offer turbo-diesel and E-85 hybrids.
Why not team up with IKEA and offer SAAB vehicles through their stores, a local dealer could deliver it to the store; or directly to the customer’s home. Offer customers the use of a 9-7X, 9-3 Combi, or 9-5 Wagon to take their purchase home with a free 24 hour test drive. Have weekend SAAB test drives in the store parking lots similar to the autoshowinmotion ones. The customer DOES NOT get a sales pitch but real world exposure to the SAAB product.
Problem #7: DO NOT OFFER ACCESSORIES FOR MODELS AT DEALER LEVEL.
Toyota and Scion dealers are very happy with the factory accessories and support they get to offer accessories for models in an easy to use and profitable format.
GM has had legendary success with Yenko Chevrolets and COPO models - and while these were not “Officially Authorized” by GM they proved successful in the market. Imagine how profitable a well thought out plan could be. GM would benefit from a better youth market image and the dealers would have an opportunity to improve relations and profits with customers after the sale.
If GM insists on putting tacky front fascias on vehicles with embarrassingly cheap looking black plastic “Plugs” where Fog Lights should be, at least offer a factory designed Fog Light package for dealer installation.
The same can be said for Chrome “Skull Caps” for mirrors, it took a very helpful parts manager at my local GMC dealer 20 minutes to find the part number (17800659) for my Sierra. For $79.00 my 2004 Sierra now actually looks worth the nearly $2000 the SLT model costs over the SLE.
SOLUTION: Go to car shows and work with dealers to create factory designed accessories that will fit the car and can be offered with a warranty. GM offers attractive 20″ wheels for full size trucks, but I see very few of them on the road and have been to several GM dealers that do not even have a display of the wheel offerings. Custom wheels are very visually based sales and you must have the actual wheel on display to sell them to customers. The customer wants to see them on a vehicle and the dealers have a better chance to sale what is on hand and has been designed to work with their vehicle. Why not give all dealers 3 sets of each rim at a reduced rate with an incentive program for high sales?
Problem #8: ONLY MAKE LIMITED MARKET SPECIALTY VEHICLES WITH NO FOLLOW-UP MODEL.
SSR - What happed to the Panel Truck that should have been?
Solstice - There is still hope for a BMW 3-series Coupe and Sedan competitor.
HHR - A Buick (with V6) or Saturn version?
SOLUTION: Introduce a production version of the Holden Efijy Concept car as a Buick; first as the concept car - a 2 door coupe. The Efijy is based on the Corvette chassis this should be easy to make a production version.
Follow this up with a Sedan Delivery version with 5 passenger capacity with utility. This would create an enormous buzz at Buick dealerships; be an instant sell out and with the Sedan Delivery version a market that could last for years. The Coupe should have 4 passenger capacity with a Hard-Top convertible to follow. This would give GM three (3) desirable models off of an existing (Corvette) platform.
This car would forever change Buick’s image as this car would be the “real deal” with the Corvette driveline and fantastic styling. It appeals to a consumer base that “must have it” AND can afford it.
Problem #9: DROP ESTABLISHED NAMES FOR NO REASON (leaving loyal customers stranded).
GM constantly drops established names so that it can spend millions of dollars to build a new name so that in 10 years it can do it all over again.
Monte Carlo - Lumina - Monte Carlo
Celebrity- Lumina - Malibu
Adds millions of dollars of totally unnecessary marketing costs
Destroys residual values
Reduces resale value
Alienates loyal customers
Delays quality recommendations for long term quality
Creates confusion in market of what the model and/or division represent
SOLUTION: Update model at four (4) year intervals. Keeping it fresh is the foundation of sales growth and resale value.
Problem #10: LEAVE LOYAL GM BUYERS WITH NO NEW MODEL.
Century Wagon
Astro Van
Don’t want list all of the Oldsmobile models.
SOLUTION: Offer excellent Vectra Estate as Buick Century Estate. Will give Buick an exclusive model and if popular follow-up with formal sedan. A Century Sedan that prioritizes outward visibility, easily viewed front and rear edges of the vehicle for parking and ease of entry and exit will be very popular with buyers. Yes it will prove more popular with the over 40 crowd, and the styling will be more formal than exciting, but what is wrong attracting the largest and most affluent buyers in the auto market.
Offer a new Astro van by shortening the current Express van by 12 inches to a 123″ W.B.; lower the roofline by 2 inches and lowering the suspension by 3 inches with an independent rear suspension.
Make the Malibu Maxx a full hybrid with E-85 capability, this is a versatile vehicle and would make a good fit as a hybrid instead of being dropped (if the rumors are true).
Problem #11: DO NOT FIX LONG TERM PROBLEMS
When will GM make a FWD car that shifts like a Honda?
SOLUTION: Surely the Opel models shift better than the U.S. market ones, have them design the clutch/shifter for all manual transmission cars.
The GM to dealership relationship is not what it should be.
SOLUTION: Have all marketing personnel spend a year at a dealership to learn what customers really want and solidify personal relationships
Problem #12: NO CONSISTENT DEFINTION OF BRANDS
What do any of the GM brands stand for????
SOLUTION: All Buicks would have these features as standard equipment.
PW (express up/down) - PL w/Remote Start
Body Color Power Mirrors (heated)
Adjustable Pedals
Tilt/Telescoping Wheel
8 way power driver with manual lumbar and 2-position memory
Steering Wheel Audio/Driver Information Controls
Fold Flat Passenger seat
CD Player with Driver information display (MPG/Oil Monitor etc.)
Manual Dual Zone Climate Controls
Rear Window Defroster
Side Curtain Air Bags
Split Folding Rear Seat
On Star
Cornering Lights
Fog Lights
Back-up Warning sensors
The solutions listed certainly are not the only ones and some many may disagree with, but you asked so I am sharing. For the right price I would enjoy working with you to implement some of these suggestions at GM, as you know Mr. Lutz the plan is only the beginning; implementing it is the challenge.
John Controne
Killing the GTO again! Why dont you just put Pontiac out to pasture now just like Oldsmobile. Saturn is now taking their place. What are you doing? Remember when Pontiac won Car of the Year in 1965 for their whole lineup? There was performance, style, quality and passion in their cars and what are they going to have to sell now? How are you going to get people into the showrooms? The Solstice is great how about making some now. No customer wants to wait seven months for their car.
Can you imagine if Pontiac had a 66-67 modern looking GTO next to their Solstice GXP in the showroom! Might sell some other models. By the way get the Grand Prix back to rear drive! Way to big of a car for FWD. People are sick and tired of nothing but FWD. Just look at Chrysler.
Camaro but no Firebird! Shame, shame. GM has never been to a POCI show. Passion.
Pi**ed off Pontiac fan!!!!
Roger
http://www.lean.org/Toyota_Lean_Jim_Womack.pdf
fantastic article and provides insight into the problem. It is sad to see any company attract bad PR because in the end it is the people who suffer!
JK
I want to buy a new car. You will not sell me one.
I want to buy a six-passenger sedan with MagneRide. You will not sell me one.
I want to buy a sedan with a blue interior. You will not sell me one. (DTS-III)
I have the 7-year itch and the scratch to buy a new car. Why can’t I?
uvaeeman
For alternate means of advertising, you could do easier-to-win giveways (or even do it selectively) where people apply for it and then you give them a car to drive around town that has some “wallpapering” (i forget exactly what it’s called - you see cars wrapped in plastic stuff to advertise things from Rubbermaid to Local Businesses). The upside for the people you choose to do this for is they get to drive a free car for a year or something while they tell everyone who asks them what they think about it (hopefully - how great is is). People get to see it - perhaps the wraps mess up the astetics some, but in a world with so many cars - having some that say “NEW GTO - SEE YOUR PONTIAC DEALER!” on them brazenly will attract even more attention than just a new car might (and will tell people what kind of car their new hot ride is). Of course if you want to sign me up first, that’s cool too :-).
Doug
Yes, I’ve heard it all before. I’ve heard the public outcry saying GM cars are boring and I’m glad to see you’ve heard it to, but I have to say I was hoping for a more exciting response than “no they’re not”.
We all know GM sales are slipping. As exciting as you and I think your cars are, the average car buyer seems to think others are more exciting. I truly hope there’s more to the strategy for the future than simply denying the facts.
You’re the face of your corporation and I’m glad to see your public stance is that GM is better than ever (I agree!). But when the press conference is over, I hope you go back to your design studios and start swinging a bat. Bust the place up while you tell your engineers how many times Chrysler and the 300 were mentioned in replies to your blog! Tell them that’s the kind of excitement that turns sales around, and if they can’t give you that, they need to get out of the way and let someone else try.
I keep my Silverado clean. I try to steer friends and family toward GM against all their complaints about front wheel drive, plastic feeling interiors and boring looks. I end most car buying conversations by telling them they’re free to make up their own minds but if they buy a foreign car, please don’t park it in my driveway.
I’m doing all I can here Bob, but we’re running out of time! Work with me!
dave
At least part of your problem is that the MSM is licking its chops awaiting your demise. They like to tell everyone you’re going down- sells more papers. Serious errors on your part have not helped but you do need to get the word out in a significant way that people who get their news from the papers and TV are getting sold a very slanted bill of goods.
Jeff Cain
All this talk about the 300 and RWD is a diversion from the real task, and that task is this: creating a no-holes-barred competitor for the Camry/Accord. Give the people what they want, and 400k sales/year (just for Camry) is a damn big contingent of buyers who are selecting FWD, extremely well-made transportation appliances. Why can’t GM do that?
My suggestion is to finish the job you started with the Impala, take it to finishing school and make it a truly special and spectacular automobile. “One Great Car” - keep that in mind and don’t let the bean counters skimp on the materials or style. I know GM has a challenge with all of the divisions, but you need Buick quality at Chevy prices. That’s what your competitors have achieved.
Toyota and Honda didn’t “market” their way to their current reputation, they did it one product at a time, year by year. And now, Hyundai! That’s how it’s done, and you have the EARN it. Fluffy marketing ideas are easily debunked.
RWD holds a great deal of nostalgia, speaks directly to the enthusiast and car magazines, and GM’s glorious past is almost exclusively based on RWD. But that is the past - PLEASE don’t get side-tracked chasing the 300! Driving wheels don’t sell cars - Style and Feel sells cars. The 300 could have One Wheel Drive and sell well because it LOOKS like new money. Is the Charger selling in the numbers that the 300 is? Is RWD the deal-maker?
Stay focused, continue to refine, and the ship will turn. Don’t chase the trends, CREATE GREAT PRODUCTS.
Mike Scordato
Mr. Lutz,
General Motors must position itself in as an aggressive/proactive mode as possible. It and the domestic transportaion industry are perceived by the public as being in survival mode. We must take a “battle ground/win-lose” position. No exceptions….No excuses!!!!!
I propose that GM postions itself directly against its competition. For example: Cadillac STS vs. Lexus GS/BMW 5 series, Impala vs. Camry/Accord, Lucerne vs. Avalon..etc.
To take it a step further, instead of promoting its products through “various pricing promtions”…if we truly believe that our products are competive in quality, features, value…FOCUS ON THE PRODUCT!!.
A proposed concept may be to offer the General Motors Quality Ownership Commitment which could include a 5 year/60,000 mile bumper to bumper warranty, 5 year/60,000 mile maintenance package, and 10 year/100,000 mile powertrain warranty. It must be implemented across the product lines…no exceptions…clear and consistant. The mesasge would be….where Quality is literally black and white…GM backs what it says and sells!!! How’s this for a General Motors’ dealership ad campaign…The only Dealerships where you’ll find True Peace of Mind!!!!
A play off of General Motors’ heritage might be…GM…The Mark of Excellence….Where excellence is not a pursuit it’s our trade mark!!!
Bob
Top 10 Consumer reports cars came out and none were American.
If that doesnt say anything to this group then what does. It speaks volumes to me. I just saw an advertisement for GM and how so many models get over 30MPG highway (estimated). WOW I think small cars been doing that for a while. I asked a coworker about the ad he laughed and said when I think gas saving I think Toyota Prius or Honda, not GM who are they kidding. Must of cost a bundle to place this booklet into the paper. Mine went in the trash. The long reputation of GM’s greed and profit taking has now left you with a synical buying public. So all you great sales execs that gave us crap product instead of inovation pat your on the back. And me, I like Saturn inovation. I now hear Saturn is going to steel panels and droping the plastic parts.
WOW fire that decision maker. I was looking at a VUE hybrid
in 2007 now I will hope Honda puts something together. You guys dont get the middle class do you?
SUV’s had its worst nonth. Anyone fired over that?
Cant you guys just make a car for this OIL crunched time. Where is the Freedom car? DOH!
Oh thats right you killed it. Delete the long term plans you dont have any as your stock goes further into the toilet.
Wes Hagerty
Dear Bob, Rick, Mark, et al,
I think you need to post the “GM” logo on everything, everywhere….. just like Tokyo Big 3 do!
It is elementary Marketing/Advertising; a popularity contest. The more people see your name, the more they remember it.
Cars, plants, buildings, dealerships - EVERYTHING, EVERYWHERE! And delete the Division Lines. It is a GM Cheverolet, a GM Buick, a GM SAAB, GM GM GM GM!
“GM, the biggest and the best WorldWide. Get on Board”
Chris J
Mr. Lutz:
Your image is horrible because your dealer network (your public face) is inept. I recently bought a 2006 Tahoe, because I wanted to support my local failing economy in Detroit.
The vehicle has been plagued with problems and the customer service is horrendous. If I could I would give it back and go buy another BMW.
Thanks!
JV
Fix the dealers….they have PR problems. They should also all have to upgrade to new technology and appearance constantly. The dealership by my house still has “shag rag” carpet around the TV, not good!!!!!
The cars are great, but marketing is bad, and bad marketing from dealerships.
Have days at the track where people can try out the cars, try the performance, fall in love with them.
Make the cars and trucks come out faster! 4 years to get a Camaro is unbelievable, and not in a good way! It should be around 2 years.
Bob
> Chris J
There goes at least another 25 sales for a long time.
Alan
Cars are an emotional purchase and many GM cars fail to generate any emotion when you look at them.
The Sky, Corvette, Cien, CTS, and many of GM’s SUVs do have that personality. On the other hand, great cars like the G6 and GTO lack that emotion. (If the GTO was styled more aggressively along the lines of the Monaro, it probably would have done better).
The same thing can be said about the interior of most GM cars.
Perception is everything. It’s why people are willing to put up with Italian cars, or why driving enthusiasts prefer RWD over even well-designed FWD. Cars like the Solstice, Sky, Corvette, and the GMC line have that passion. Bring it to the rest of the line.
You have to increase the passion someone gets when they look at a GM car or sit in a non-moving GM car before you can even go to the next step.
If you want “bigger ideas,” you have to re-align the brand names to drop the overlap. Fewer cars, but more focused cars. Make Pontiac the performance division where the line-up is cut down to only the G6, GTO, Solstice, and Bonneville. Make this entire brand a “baby V-series” to attract others from Acura and Nissan.
Buick: Re-style the entire line. I know the grille and look is a Buick-identity, but those who have grown up on Buick have moved up to Cadillac or to other manufacturers. Take inspiration from cars like the Quattroporte to style new Buicks with organic curves. Spend an extra $5000 on each car (increase MSRP $5k) to make the brand a luxury line. Whereas Cadillac cars have angular designs, Buick cars can have organic curves. Increase the sophistication of the interior. You should be able to pull customers from Audi and Infiniti.
Cadillac: Improve the sophistication of the interior.
Now that you’ve made all three lines a bit more upscale, focus on making Saturn and Chevy the mainstream choices.
Ron Olsen
Bob,
The issue is not ‘consumer consideration’ or how GM can best spin its products. While it’s true that GM vehicles are improving and quality and reliability issues are being addressed, GM continues to lose market share as consumers find more value and more of what they want in other brands.
That said, GM has a wonderful opportunity to regain its market share and lead the automotive industry. GM has a history of engineering leadership and great residual good will — a latent brand loyalty that would shine if GM offered more of what consumers want. However, that opportunity must be seized and exploited.
You can reinvent GM by letting your engineers demonstrate leadership. While there are notable exceptions, GM vehicles tend to be derivative, and I believe your product development process is overly cautious and constipated — a factor that will guarantee mediocrity and the loss of young tech-driven, socially conscious consumers. It will also guarantee fewer dividends for your shareholders in the future.
Much of what I will suggest has already been blogged, and there are many, many good ideas being offered by others, but for what it’s worth:
– Offer a ‘green’ alternative for every model you market and do it now. Hybrids tend to be expensive and clunky, but the technology is rapidly evolving and GM is behind. Consider offering the new Saab flexifuel and the E85 technology in every GM vehicle — as a no-cost option, if at all possible. Such an initiative may shave profit, but it would put GM back in the global fight. For example, consider the Tango T600 — if you haven’t heard of it, Google it. It’s a weird little hand-built custom, but the potential for more traditional applications is obvious: it’s very fast, fun and completely green. I’ll be glad to plug my car into a socket at night if it runs like that, and so would many other potential consumers. It will be a practical technology very quickly: A123 Systems has developed super high-capacity, fast re-charging lithium-ion batteries that are ‘electron hand grenades.’ It’s suggested you have engineers work with GM racing teams to develop electric drivetrain modules for every GM world platform. GM needs to quickly adapt emerging technologies to existing product lines. If you rely on regular product development methodologies, such new tech-tuned vehicles will be further in the future than the new Camaro. Use Saab as a testbed. Don’t follow, lead the industry.
– Every vehicle purchase is partly emotional, and we all look for certain ‘qualities’ in the cars we purchase. The new Saab Aero X is a good example of a car that defines itself and has personality — it makes a statement. GM has to offer clean, well-engineered vehicles that will withstand the test of time. Every car should be a keeper, if not a collector’s item. Give the public less chrome and more clean lines and good engineering. A four-year replacement cycle is the kiss of death. Contrary to conventional wisdom, if a car morphs every few years, its value falls just as quickly. I don’t want to drop $30k on a car that turns into an outdated, older vehicle within a couple years. A great part of the attraction of the old Volkswagon Beetle was its unchanging appearance. It’s also one of the reasons I’ve bought Chevy trucks — don’t be too quick to change styles. As soon as a replacement is introduced, a good car sheds value and loses its luster. I want a car I can drive for 10 years and be proud of, every day. I’ll buy it and so will my neighbors and their kids. Design classics and be consistent and reliable.
– GM has a dealer network that is similar to other brands, that’s to say it’s a very mixed bag. There are many hard-working, honest sales professionals that would welcome a one-price sales policy. The emphasis should be on service and technical expertise, not making deals. GM dealerships should be as standardized as McDonalds or Burger King franchises, and they should set the service standard for the entire industry. A dealership should be the source of product repair and maintenance, and where I go to update my car’s technology and have the newest power module installed.
– Given the segmentation of the automotive market among the many different players, GM would benefit from sharpening its focus and its brand recognition. Instead of having Buick, Pontiac and Chevrolet share the same platforms, the best of each should be offered under a single brand name. I’ve owned Oldsmobiles, and I have good memories of the brand, but I think it’s inevitable that GM tighten-up its product line. I’ve also had Buicks, and I’ve know and appreciated some famous Pontiacs, but time marches on and so must GM.
Good luck. I look forward to GM’s leadership of the industry and the chance to buy new cutting-edge, world class GM vehicles.
Ron Olsen
Jay B
Before you begin the advertising campaign to push the GM name, let’s consider the very recent past:
Who most recently killed off a brand? Only GM
Who has the greatest number of suppliers having filed bankruptcy or on the verge of bankruptcy? Only GM
Which company is single handedly killing the American auto industry? Only GM
Which company continues to lose market share at an alarming rate, yet continues to focus on making their cars cheaper and and refuses to put more money into building their product? Only GM
Which company takes design direction from an old man who publicly refers to having “damaged brands”, yet doesn’t have a spine to put the focus on building truly GREAT cars? Only GM
Which AMERICAN automobile manufacturer has moved a large chunk of their purchasing organization to CHINA and takes direction from a Swedish military dictator? Only GM
Which American automaker deserves to be bankrupt? Only GM
Robert G.
Hi Mr. Lutz,
One of the biggest reasons I won’t swith to GM products is you only advertise for employees in the Detroit Metro area. I personally have no ties to any of the big three to get an employee discount and quite frankly hate when your ads are on only advertising for employees. Employees can lease a G6 for $169, but what about my price? Will I have to dish out $300 a month for a G6 and get a crappy warranty. Last summer when you advertised employee pricing for everyone it was a huge success. What did you do? You went back to employee pricing again! If I can go down the street and get a 10 year 100,000 mile warranty and get a much reliable and safe vehicle and know I will pay the same as everyone else then I will buy a Hyundai over a GM. If you would advertise internally for employees and sell your vehicles to the public then I think you may get more responses. I also think they’re are too many brands and models to keep up with. I will stay loyal to the companies that can produce a value, reliable, efficient vehicle and advertise for everyone besides your employees!!
CaptainDan
I’ve got to agree with Robert G. I dislike seeing prices advertised as “GM employees only”. And I AM a GM employee! Employees can find out their discounts on their own, and the price is non-negotiable so there’s no point to wasting advertising dollars on it.
And regarding non-employees: Do your marketeers think that they are going to fool the potential customers with a low price which they can’t get? They’re going to find out when they try to price one at the dealer, and that’s only going to leave them insulted and angry about being misled.
And if they do notice those prices are employee only, it will just upset them that THEY can’t get it cheaper (just like Robert G.).
It’s lose-lose-lose.
I can only assume that this is the local dealers doing this, and not GM, but even so, TALK TO THEM! They are hurting themselves. And, consequently, GM.
Shaun Walker
I’m not totaly sure GM actually understands what is being said when it comes to negative comments. I come from a family (as well as most of my friends) who have driven GM products for decades. I primarily purchase chevy as do my close friends, but we all buy other GM brands as well to include Oldsmobile, Cadillac, and Buick. We love chevy cars and believe they are some of the best engineered vehicles out there, but engineering is only part of the design=form+function equation. Most of us as well as other people I’ve talked with throughout the country are looking away from Chevy because of there lack in good interior and exterior design. Most products seem bulky and blowded, the rear ends seem like an after thought, and many of the best models seem like rip offs of other companies look. More and more people who I know or meet are moving to other brands do to the lack of streemlined and fresh designs by GM. I hope managment well see a need to move to a enrichment in the designs that match the great engineering.
Pat Stakem
What the consumers on this list said, came true.
The dealers are charging $5k over MSRP for the Soltice.
It’s nice - it’s not that nice.
Gives one a bad taste in the mouth about GM marketing of its products in general.
A. Hobert
Bob,
I doubt you ever have an opportunity to read the comments with your schedule as it must be, but finding your way through the personal opinions you might find the answer to GMs problems and thus the answer to correcting them. I was a little confused by your recent post on 2/16/06 rehashing how GM is improving its products, overall quality and winning certain awards but then commenting how the media is centered on the financial issues of your company. By reading this tends to make me feel as though you are not providing the leadership strength necessary to bring GM to the front of the pack by giving excuses for GMs position as the medias fault. This appeals to current GM fans as they are also the ones spouting the unfairness of the media however where were they in the 80’s and early 90’s when much of the media would not give Honda or Toyota the benefit as they were seen as “cheap imports”. You must rise above this and accept what they are saying even if you dont agree and prove to them with your product not by flinging opinions. GM seems to have plenty of marketing and for example the Chevrolet commercials touting an “American Revolution” have little impact on the general public as Toyota, Honda, and Hyundai employee many Americans also. In a past post of yours I also read your defending GM by talking about the award winning new Corvette, once again you are loosing the general public who most of us dont really care if the Corvette is award winning. We are the customers who buy the Malibu, Grand Prix, Lacrosse, G6, Impala for everyday venicles and are looking for value and comfort. This is not to say the Corvette does not have a place for some people but for the average customer I personally have no interest in the Corvette. When the G6, Impalla, Grand Prix, etc. can win those awards over the Accord/Camry then you will have something to talk about. I have recently looked at the new Impala and was impressed with the overall look but it is only equal to the current Camry, which is a big step forward for GM but what is going to happen when in late 06 Toyota inroduces its new Camry, the Impala will once again seem a step behind Toyota. This seems to be the same road Ford is going down with the Fusion. This is a great looking vehicle but it already seems a little dated and will really show its age when in late 07 the 08 accord will be introduced. The reasons I have went from GM to an import was a combination in this order resale, quality interior, features (dual zone climate control, homelink, heated mirrors, dual exhaust, not offered by G6 even though the Accord was only a few hundred dollars more), dealership experience (for my five past GM’s the dealerships have always found something wrong, provided lousy lobbys, did not want to give loaners if warranted and in general gave the feeling of once you signed the contract they did not want to see you again). There is little doubt that GM will once again be a great automobile manufacturer in America the only question is when and from what I see I am not sure it this will happen for a long time. Be smart with your marketing, the more is not alwayse better, reorganise and remove management that is not onboard with the new way of thinking and dont believe you are in this position simply because the media is unfair because you have done this to yourself, but we all make mistakes so learn form them and dont get hung up on defending yourself, prove it by your product.
Richard
I own a Mazda 626 because it was available used on the day I needed to buy a car. Its two best features are the back-supporting driver’s seat and the little time it has spent in the shop. I rented a Buick Lucerne on a trip a couple of weeks ago. Its best features were the smooth ride and the XM/Harmon Kardon radio. The driver’s seat was too soft in the lower back area, and I couldn’t step out without having my pant leg touch the rubber gasket below the door. I’m glad it stayed clean! I love the longevity of my Mazda. I will look for proof of long life in my next car shopping experience.
Larry Magloire
Hi Bob,
Much of the market research and team building awarenenss and so on dances around the main issue. The need to build a car for the average Joe and Jane that looks good and is more attractive to buy than the imports.
Granted if you have the money? A Cadillac or Corvette is the best way to go. But basically for most of us, a car is an emotonal purchase. Colour, materials, long-lasting curb-appeal, and how you’re treated at the dealer before and after the purchase really matters. That’s value in a working class person’s wallet.
The Enclave, I think is a positive direction to that point. Save some money on being warm and fuzzy and design your future cars with visual buying impact and Dealer training.
Being environmentally friendly does win my vote, however it seems like the effort to make these cars clean only transfers the polluting factor somewhere else. You guys are aware of this, and so am I. I have had my Honda for 8 years and have seriously thought to go with GM, but I would like to see the look, finish, and maintenance of my car that I have enjoyed with Honda to one of your products someday.
To good design,
Larry Magloire
Toronto, Canada
John Controne
Muscle cars are drawing a lot of interest again. Interest that has never left, but manufacturers think so because they do not update their cars and see declining sales. Case in point the F-cars.
Thanks for showing us an exciting updated Camaro. Very nice job. Where is the Firebird? Canceling the GTO? Bad news for Pontiac! The company that STARTED the muscle car is not even going to have a muscle car! Nice job GM! Thanks for giving the GTO a shot. It would be a perfect time for an updated GTO. Yes there would be a market for a GTO and a Camaro.
So when the market dries up on the 2-seater I can expect the Solstice to vanish instead of an update. Just like the Fiero.
Irritating!!!!!!!!!!!
Julie
Dear Mr. Lutz,
I realize that I am a little late to this party, but here is my thought on this topic:
In my case, GM genuinely did not offer the kind of car that I was looking for. My first new car was a 1995 Saturn SL1 that I drove happily for 10 years until it was totalled when someone hit me. I loved my Saturn and the Saturn buying and service experience. (In fact, can I take my new car to Saturn for service?) But, when I replaced the Saturn, I bought a Subaru Outback wagon. These are my reasons:
1. I did not want to drive an SUV because they sit too high off the ground and most have tinted windows, making it impossible for drivers behind them to see through or around them and thus to see when cars further up the line of traffic brake hard, swerve, etc.
2. I wanted more space than a sedan provides for hauling: brush to the mulching area in my town; luggage on trips; fabric to quilting bees etc.
3. I did not want to drive a mini-van because I am a 30-year-old, child-free woman and am not ready to be seen as a soccer mom.
4. Only Subaru makes a wagon that has the image that I was looking for: young, active and sporty. Rather than looking like they are used to haul sports equipment, other wagons look like they are used to haul kids.
So, if there was a Saturn wagon that had the design and youthful, sporty image of the Subaru, I would have bought it in a heartbeat. And, ten years from now, when I am in the market for my next car, I will again look first to Saturn, if the brand survives that long.
Keith
I will be getting a new car soon (current = 96 SAAB 900SE), so I have been paying attention to what is available. I went to the SD auto show for example - I felt dealers (mostly Asian) who hooked up power for seat adjustments, trunk opening, etc. had a definite advantage. My status for getting a car I would love is closer than it was in 97, but is still not quite there.
I have been trying to figure out why. Maybe I am weird, but it could be the market is missing a niche. I want decent performance, but not to the detriment of all else. I want an economical, efficient, practical car - but not without performance. I have three kids so a sedan or sport wagon is required. I like the practicality of Malibu Maxx, but I can’t get a stick. I can get the 6-speed I crave in a G6 GTP, but I have to pay thousands more for an engine that delivers ~20% more torque and at higher RPM for a ~20% hit in MPG. Sounds reasonable, but to me 200 ft-lb would be great while 26 mpg highway or 18 mpg city sucks. I’d rather pay the extra $4k for a hybrid that might combine the low end torque I desire with excellent city and good highway mileage. Just making the stick optional for the G6 6cylinder would probably sell me - a hatchback, DOD, and hybrid are features I would pay to add. Shouldn’t Pontiac satisfy me with a performance stick (6speed) for the lower engine?
My wife loves the Saturn brand - I got her a new SL2 for a wedding gift in 93. She would buy a Relay if you had an 8 seater that folded seats flat and had competitive storage behind the third row. Right now Saturn does not have a product to entice me but they are pushing to straddle my position. There is the red line for performance and the green line for environmental activism. What I am asking for is a Blue Line, the combination of red and green.
Maybe this becomes a new Buick niche? I would love to buy the highest quality GM nameplate, but I need a stick and precise handling first. Give the Buick drag fans an electric motor to boost their performance off the line with a nice quiet, techy, and efficient ride. I’ll buy one.
Can you even do a hybrid stick? I would not be satisfied with just an automatic that can manually select all 5 or 6 speeds; I also like the clutch for parking lot/slow maneuvering finesse. Is an automatic with a clutch crazy?
-Keith
(the guy with the crazy Buick Motorcyle suggestion - which I still think would be cool)
Bill Frazier
I have always bought a GM vehicle and my family has always bought GM, but the last 2 GM leases have had something go wrong with them just DAYS after the warrenty expires and you people wonder why there is NO GM cars in the top 10 anymore….huh
Patrick
I just bought me a brand new Toyota RaV4.
I’m going down to the DMV tommorrow to order my new personalized license plates.
They will read– GMKILLA
Mark Lewis
Mr Lutz
Having previously worked on GM business - here are my observations about why the public has a hard time changing their mind about GM cars and trucks.
1. You’re trying to hard. You can’t convince someone that you have a better widget - they have to decide for themselves. Marketing has changed and you can;t shove things down people’s throats.
2. Help them buy by having a nicer dealerships experience with better trained dealers. I realize GM is stuck with legacy franchise agreements, but this is an issue like healthcare that has to be tackled.
3. Make the interiors nicer
4. Stop focusing so much on the car (especially in the avdertising) and focus on the consumer -how the car fits into their life. I know people at GM love cars, but most people don’t - they are functional and do a different job.
Bruce Florence
Dear Sir:
The survival of GM is critical to the economy of the United States. We, here in this country need to be the leaders in the development and production in an industry we fostered from its earliest beginnings. In order to accomplish this, GM needs to stop making mistakes in how it approaches the public. For instance, there are 65 teams in the NCAA national tournament. These teams have a following that blankets the entire country. These people buy automobiles and the decision to advertise during this tournament was judicious. Then somehow, you allowed your advertising people to drop the ball.
One coach from one team was hired to tell all of us what vehicles to buy and from which company to purchase it. Whoever came up with this concept has not the first idea about how those who follow their teams feel about the opinions of opposing coaches.
This decision instantly created an antagonistic response from thousands and thousands of prospective GM buyers. One could well reason if GM knows that little about how the sports loving American consumer feels about opposing coaches, what do they know about what the American consumer of transportation products wants and needs?
When a company is on a slippery slope, no mistakes are allowable. This was a mistake. You irritated potential consumers. We seldom purchase from a position of personal irritation. It may seem small, but the devil is in the details. Watch the little things and the big picture will become much clearer.
Bruce Florence
Liz Mundy
Dear Mr. Lutz,
Hands down the 2-door tahoe needs to be brought back. The re-sale value on those things are insane. I’m a 22 year old college student and I’d give up my 2003 trailblazer in a second to drive a new one of those babies. When I was in high school a 99′ with 100,000+ miles was averaging about $24,000. Thats gotta tell you something. I’m speaking on behalf of high school students, college students, and young adults everywhere that the 2 door tahoe needs to be brought back into the chevy lineup. I actually know people who have gone out and bought a brand new 4 door tahoe and had it cut down to a 2 door…….I can’t imagine what that cost! The 2 doors are in high demand from teenagers and I don’t see them fading out anytime soon. Kids are willing to pay anything to get their hands on one of these babies in good condition. I beg of you….bring back this vehicle. Its great, especially for college kids who need a bigger vehicle to travel to and from home during the summers or breaks but don’t want to drive a 4 door car the remainder of the year. I hope you will take this into consideration. You sure would brighten a lot of kids smiles, including mine!
Jenelle Beres
Growing up our family always had GM vehicles and they were always good to use and today I continue to drive GM vehicles.
pc
I think GM (or perhaps a JV with Ford) should hire Bill Clinton as a spokesperson to do a series of television commercials. In the commercials he would simply encourage Americans to test drive an American-made car.
Why?
- Why not? He is extremely popular, particulalry in states where GM has historically struggled against imports such as California. While he does have baggage, it is hard to beleive there would be significant backlash by GM loyalists.
- He’d do it. Hocking products in TV ads isn’t presidential, but being an advocate for an American industry is. This can be positioned as a gesture to UAW workers, which would bode well for Hillary Clinton’s polictical career.
- It will help the branding strategy. The premise of the branding strategy is that there is a GM brand for every (profitable) segment of car buyer. However, no branding/positioning effort will work if 40% of your target customers will not even consider purchasing your product. The goal of the campaign would be to expand consideration sets, which can only be a good thing.
- “Collateral messaging” - The campaign will get tremendous amounts of news coverage.
- Clarity - You can’t convey a complex idea in an indirect, touchy-feely campaign (which is why I predict the E85 campaign is destined to be a failure). There is a beleivability factor that first needs to be overcome. Such ads will be highly memorable and beleivable.
Chuck Nodine
Re: GM building cars that no one wants…
American automakers, GM included, have never learned a lesson that Honda and Toyota religiously implemented (and still do).
You are investing your “excitement” in Corvettes, Hummers, Solstices, Tahoes, Lucernes, etc.
Look at what you have to offer your ENTRY and FAMILY level buyers. These are the people who will carry these opinions about GM into their adult and family years. Many of these folks have NO USE for any of the vehicles you’ve mentioned as being “exciting”. GM ignores hot market segments like tuners (the Cobalt? get serious).
My oldest daughter is a bright young college graduate. I’ve tried to get her to look at a G6, but she’s set on a Camry because she perceives the G6 as an inferior, but more expensive attempt at that market. She feels that driving a G6 will not “look smart”. Looking smart is important to a young lawyer.
My youngest wanted a new small car. We looked at the Cobalt and again found a more expensive, inferior entry level car when compared with Toyota and Honda. The Cobalt’s engine was noisy, trunk was small and it didn’t get as good fuel economy as the Civic.
Look at Chevy’s entire auto lineup. With the exception of the Corvette, can you honesty say that you have a product that’s in the same league as their counterparts at Toyota and Honda?
Please consider that I have actually LOOKED at these cars, my opinions are not a media driven fantasy.
Focus on making your entry level cars the BEST cars you build. Make them the CORNERSTONES you build the rest of your line-up on.
Then you’ll start winning back buyers.
Rick Lupori
Mr. Lutz: GM needs to get 6-speed Automatics in all models as soon as possible. This will be more cost effective than trying to make a new line-up of OHC engines. There is nothing wrong with current GM engines, given the MPG returned and “real world” performance the 3.5, 3.8 and 3.9 OHV V-6’s are “world class”. I have explained the cost, packaging and torque band advantages of OHV V-6 opposed to OHC ones before and some people will never understand it. It is a physics problem, all of the facts are there but you cannot make people comprehend it - friction is a factor and is not a friend of OHC V-6 engines. In the real world of 1800 RPM cruise speeds and 3500 RPM acceleration, why do you need peak power at 6000 RPM?
A 3.5L OHV V-6 powered Malibu or Impala (even with a 4-speed Auto) will deliver over 30 MPG at an 75-80 MPH cruise speed and provide plenty of power for “normal driving”, will get to the hole in traffic as well as a OHC one without having to “floor” the gas pedal. Forget about the 0-60 times in the magazines, if you drove your car the way they do to get those numbers you would be on a first name basis with your dealer’s service department. And yes, I have actually driven GM, Honda, Nissan and Toyota models over the same roads at the same speeds (speed limit 75) at the same time of day and verified this. The GM OHV V6 models got 4-cylinder economy while holding their own against the OHC V6 competition. Remember these are family cars driven a little more aggressively than most actually are, not by some magazine that is trying to qualify for the 24 hours of Lemans in every test drive. By the way an OHV V8 has won that race in the Corvette’s Class the last two years. This is the V8 that anyone that knows what a car is concedes as one of the best in automotive history - but remove 2 cylinders and it is a relic?
On the magazine that everyone likes to quote quality from, I am an ex-subscriber who found out in the early 1980’s that their editorial quality was so bad that they were incapable of recommending a good home appliance. The quality report they publish is not as statistically accurate as others available since the population size is smaller and is subject to possibility of a narrower point of view. They get most of it right but there is too much inconsistency in editorial content, in the same test one product is bad and the other is recommended while sharing the same faults. And these examples are not automotive tests but household products. I do make a point to review the magazine’s quality every year, but in over 20 years they just are not good enough.
At least I give them an honest chance and on an annual basis - if only American consumers would do the same with GM products when they are in the market.
David
Affordable performance is what makes a brand relevent. Performance guarentees that a car will receive press attention, and consideration. Even a subpar compact like the Ion Redline gets some attention because import tuners are noticing that the plastic bodied wonder is killing them at stop lights. Affordable performance also trickles down on the rest of the lineup. That’s why cars like Camaro and Solstice are critical, even if they don’t make huge profits in their own right. At a recent autoshow, I saw people absolutely swarming the Solstice. Some of these folks meandered over to the Grand Prix GXP and G6 GTP. NO ONE walked directly over to the mainstream cars - the traffic came through the Solstice, and then filtered through the performance models. You need more of these cars. These cars are your drivable advertisements, and they are more effective than anything you put on TV. I’d also stress that affordabilty is a key factor. The Corvette, for all of its awesomeness, costs $15,000 more than a loaded Impala, your next most expensive car. In contrast, a $25,000 Camaro is a Chevy, and that connects it with the more mundane cars in your showroom.
Mark Schindel
GM still has blinders on.
I’ve been a GM customer for 26 plus years, and at this point in time have been excessively discouraged by GM’s uncommited attitude towards the US.
Thinking they can retro previous models and european designs instead of listening to its customers and being concerned about the future of the US. This is one of many of GMS problems. All we see still on advertisements is its desire for us as US citizens to buy big, expensive , gas enefficient automobiles.
General Motors use to be the leader when it came to advanced technology and design. They now show a wait and see attitude and depend on their fellow subsidiaries in Europe to design their sedans and coupes.
Genderal Motors needs to open there eyes and realize we have to depend on ourselves to engineer and design automobiles, automobiles which are efficient and are to the likings of the consumer.
The highest ratio of economically efficient models and number of models in production has to go to Toyota and Honda. General Motors has had the technology for years but have refused to put it into place for fear of a backlash from other industries.
I am the last person who wants the General to be in the prediction it presently has placed itself. Whether you believe my loyalty or not, my emails to GM’s management and comments within automotive websites, will hopefully open GM’s eyes before it becomes a place in history.
Only if GM believes in its own engineers, design teams and workforce, will it come back strong.
mschaef
“All the while more than a quarter of the vehicles sold in America are ours.”
It’s not that 25% of vehicles sold in the US are GM products; it’s the fact that it used to be 60%, and now it’s not. Every one of those 35% represents people making rational, thought out decisions that other company’s products serve their lives better. Maybe it’s reliability, maybe it’s style or performance, maybe it’s just that they like they way they are perceived behind the wheel of a 300C better than an Impala or Bonneville. These things actually do matter to people: unlike GM, who sometimes seems to see a car solely as a way to sell a financing plan, or pay for their legacy health care costs, consumers see cars as integral part of their lives.
And yes, I know that this is way too general, and probably offensive to large groups of hard core car enthusiasts at GM. However, no matter how enthusiastic you are about the technology, it’s not getting through to the products that sell to the bulk of Americans. And it’s not that people are generally unreceptive to GM products: the reception off the Z06 should prove that.
Dan
Dear Mr. Lutz,
The problem with GM is not the cars, the engine’s or sweet retro look. It starts the marketing that your company uses to push these new cars. It looks like you spent a lot of money on the new commercials that are playing now. But who is really watching the same boring thing over and over again. That’s why when commercials come on, it time to get another beer or whatever people do. Kids want to feel fast and furious these days, even if they only have a 4 cylinder. Who wants to buy a car that looks stock (G6, Cobalt) when you can buy a car that looks modified. Cheep little modifications would make millions. It’s not like its going to cost anymore money than you are already spending. A few bumper mold mods and a little extra paint on the engine would sell to the younger generation. I am at a young age (25) in my life where I can tell you what people are looking for. When I went to the Pontiac dealership I wanted a Solstice for myself. They had one on the show room floor that was sold. Let’s just say I left with G6 GTP for my wife. Why, because they told me I had to be on a 10 month waiting list. Is that is some kind of joke? You have a nice affordable car that everyone wants and no one can have. I guess we will chalk that one up for the manufacturing department. I have a lot more to say, but I have to go. Well if you want to hear some more suggestions hit me back with an e-mail.
Patrick R Foster
The new Buick Lucerne is an outstanding product! Any person planning to buy an Acura, Infiniti or Lexus this year owes it to themselves to test drive a Buick Lucerne before buying anything.I’m sure Lucerne will change a lot of minds.
Patrick R Foster Automotive Historian/author
Patrick R Foster
What I don’t understand is the fascination with Camry & Accord. I currrently own a Honda Accord and Chevy Lumina, both bought new at the dealer. Both are nice family cars but overall the Chevy is the better of the two. It’s quieter, has more comfortable seats, feels more solid and rides better.My gas mileage is consistently 32-34 over the road, and I drive on the fast side. It’s also been a very reliable car- I’ve got over 100K on it.
Ryan
The answer is easy QUALITY! It’s that simple! I have driven two trailblazer 02 and 03 company vehicles to almost 100,000 miles and had so many problems that I told fleet to start looking for better alternatives. That says alot when I don’t even own these vehicles. I am talking about major problems failures like power steering rack, engine and transfer case etc. The miles are all highway which I cannot understand how these items fail so quickly. The fleet has put so much money into these cars it even agreed. I cannot tell you the numerous recalls and failures that have costed me time away from work to sit in the dealer.
I really love the new Corvette but it is hard to spend that kind of money when your lower price offerings don’t live up to the quality of the alternatives.
Tim
I like your site.
Blogs with comments windows that you have to click to open keep the dialogue under wraps. Blogs like this one which string comments out in the open are much more proactive about sparking dialogue.
Owen Bly
Hello Bob:
I, like you, have been in advertising and marketing for a long, long time.
I found this blog because the Saab “Built From Jets” campaign bothered me so much that I googled it until I came up with this forum. Thanks for having this forum online, by the way, it’s a great tool.
Saab’s “Built From Jets” campaign obviously builds upon the product’s heritage, before Saab was owned by GM. Every time I see one of these spots, all I can think of is when I was in college, I owned a Saab 900 Turbo. Yeah, I know, that makes me one of those college yuppies, like the Cutters made fun of in “Breaking Away”. These days, I identify more with the Cutters.
Anyway, I spent more money on repairs with that car than I did purchasing it. I mean that literally. If indeed the brand is “Born From Jets”, they must have been pretty crappy jets.
Maybe it’s a better built car now. I don’t know. I don’t own one, and I never will again. But as a former Saab owner, that’s what the campaign reminds me of, and that’s all I have to say.
Herb Atwood
Bob, I appreciated reading your post and felt like I needed to respond. I really hope that you take the time to read the comments from the people who buy GM products. How do you get GM back on top? You should have asked us a long time ago. 1st - Stop making the same vehicles under 3 nameplates!! What a waste of time, money and labor. You don’t need to kill off Buick or Pontiac to do this ! Give each nameplate unique models like Solstice, GTO, Monte Carlo and Corvette. 2nd - The common theme here is give us what we want and we’ll buy again! Ex: A retro GTO !! I read your comments that the company was disappointed with sales figures and will discontinue production. Hmmm… those of us who owned them would buy in a heartbeat if it was what we asked GM for when they talked of bringing it back. Has anyone seen the Mustang sales figures lately? 3rd - Better warranties and better quality materials. Stand behind your products! The Korean cars are crap and they give them 10 yrs. That’s why they sell. I’ve owned many GM products over the years for a reason. Give the consumers what THEY want , not what the Marketing dept. and strategists say we’ll buy in the boardroom. Please stop listening to them and pay attention to what those of us buying the cars desire! Try this: build a car thats under $10,000 that we can put our kids going to college in. They don’t need heated mirrors, computer monitored dual climate control, or 18 position heated bucket seats. Just good , reliable transportaion. Features and gadgets may sell a few cars but when the dealer can’t even figure out what’s wrong haven’t we gone too far? Keep it simple….keep it reliable, get the price reasonable again. We’ll Buy. Thanks Bob, Herb
orange county home inspectors
Japanese cars may beat out the american car market. Even the warranties are better! and Japanese cars have more reliable ratings. GM needs to increase their warranties from 36k to 50k.
W Thompson
Mr Lutz, I was quite interested when you joined GM. Certainly after you and your group earlier created such great designs at Chrysler.
With the likes of the new Soltice and Sky models, they have created favorable comments and interest in the automotive press.
However, reading some of the blogs in this website, the quality or perception of quality is a major point.
I would also ask that “your” advertising agencies be fired!
Worst,uninspiring,boring,stupid Like(Mr Good Wrench ads)All they (agencies)seem to use ar e black colored cars,(Maybe this is Televison/tech reason?
And the design staff be given a 6month window to develop some products that are desirable.
Good Luck.
Bill
Bill Withheld
Bob, I own a 99 Chevy Malibu V6. It has leaked dextron antifreeze for a number of years now because your engineers apparently cannot design and build a reliable aluminum motor block. How can GM claim quality improvments while you market a car like this? The car came with substandard (factory) brake disks (replaced once under warranty) and will not stop at highway speed without uncontrollable shudder. Quality? Please. If you were really interested in building cars to capture consumer confidence, your would design them to run 150,000 miles without major part/system failures. That is the experience I have had with our Jap cars. I have never owned a domestic car that even came close to that result. How about also designing the cars so that as they age they can be repaired by the owner at a nominal cost? Dealer repair costs on an older car are ridiculous especially when system repairs can run more than the value of the car. Part and system RnR should be designed for lowest cost even if it costs more to build/sell/buy initially. Build a car that lasts 150,000 miles before any system failure and build it so the failure can be repaired by the owner and we will beat a path to your dealerships doors. Continue to build cars that leak coolant and where the dealer advice is add more coolant instead of replace the headgaskets and you will continue to lose market share. You can take that to the bank.
Chris
The problem I see with GM cars are the styling issues for vehicles. First of all they seem somewhat outdated and a lot of the model’s interiors feel cheap. Another problem is the dealer experience. If a vehicle has 50,000 miles on it and the warranty expired at 36,000 miles, but the customer’s engine blows, GM needs to take care of the problem provided the customer maintained the car properly. If GM stood behind thier products this way it would result in more owner loyalty. There is a difference between Japanese made cars and American made cars. In Japanese cars, even the less expensive models have the feel of quality while less expensive American made cars feel cheap. If American car makers make design and quality their passion instead of profits and cost, a difference will be seen! People are loyal Honda and Toyota customers for a reason. There is nothing worse than paying a car payment for 5 years and as soon as the car is paid of, if not before, there are several costly problems. Today we live in a society where we are as busy as ever. No one has time to deal with an unreliable vehicle that has to go back and fourth to the dealership because of problems. I could never understand why Ford tries to buy every car company under the sun when they can’t even get thier own line straight. I think American car companies have the technology to make it happen,but the energy is focused in the wrong areas where they think they’re saving but really are not. If I worked for this company, I would put all of my energy to make the company the best it can be and it can be the BEST!
Dr Gary Lindeman
Camaro, camaro, camaro, …
My first car was a 67 Camaro RS with a 6 cylinder engine. The car was simple yet reliable and it got me thru all my college years. Best of all, it was really cool looking. I’ve seen the concept camaro. Please considering changing the proposed front end to look more like the original first generation camaro. If so, as soon as it comes out I’m going to sell my beautiful Austin Healey and get the first year new camaro just like I had the first year camaro when I was a kid in college. Also, please put a nice V6 in it like the 3.8, not all of us need or want the lower MPGs of a V8. Thanks, Gary
Chris Magee
I want to buy GM. I like the styling and the overall feel better than Ford or Chrysler, and I don’t want to buy Japanese or European.
However, we own two ‘98 Malibus, and our experiences with these Malibus has been so bad, I’m gun shy about buying GM again. Those cars have been nothing but problems ever since we bought them new in the fall of ‘97.
I really like GM, and I want to see GM succeed, but my confidence in the brand has been badly shaken by not one, but two bad experiences.
I would agree with those who have said that GM’s commitment to quality and to standing behind their products will be a big factor in renewed confidence in GM by the public. More aggressive warranties would be a step in the right direction.
Innovative designs and styling are great, but dependability wins you repeat customers.
Frank
I now drive a Ford for the following reasons..
85 Cutlass Supreme:87,000 miles engine JUNK
Trade for a Bravada:60K front end GONE 1800 dollars.Radiator Clogged with supposed 100K antifreeze
1000 dollars.No help from GM,even after I saw a bulletin on this problem.
Next Car 87 Cadillac 4100.
63K Intake gaskets gone. Dealer replaced but wouldnt do the bearings even though I had a crankcase full of antifreeze.81K Rods pounding..Dealer and Cadillac lied to my face..told me they didn’t know of any problems with 4100’s Ya OK. Had enough
bought a Ford..No problems.
Im not interested in anything else except for GM to do the right thing by their customers. If theres a problem..Own up to it and fix it.Why should I be paying outrageous repair bills for obvious design flaws in their vehicles.I didnt make it but I guess I still have to pay for their mistakes.No thanks
Nick
Mr Lutz,
I am an avid corvette fan, but frankly the new Vette is a dissapointement.. here is a short list
(1) Front end styling looks blahhh (Styling is a huge issue at GM.. very few of your cars look good)
(2) Safety, a low car like the Vette getting T-boned in an accident is very bad for the driver.. especially if he gets hit by, lets say a chevy Tahoe.. its bumper vs head.. No curtain airbags?!?!?
(3) The corvette interior is embarassing.. I was showing off my C5 to a friend .. who thought it was cool and then when we compared the inside to his SC430 Lexus .. it looked really bad.. bad plastics, flimsy seats, radio borroed from other GM cars.. (Corvette should be unique .. that means unique sterio, unique controls, unique everything.. the new vette looks like it got the steering wheel from another car.. what gives ??!!
(4) Rollerover protection, the corvette is a sports car and some people may end up rolling it over.. that means we need a popup bar (like Porsche and Mercedes convertables) in case of a rollover and stronger A pillars)
(5) How about a solid roof convertable option for the corvette
(6) Do not share the corvette engine with lesser cars.. If I spend 50 Grand only to have somone with a 27k GTO keep up with my new vette is ludicrous.. I’d rather buy the cheaper car..
(7) Warranty.. here is one nice change .. up to 120,000 I call it the “GM partenrship program” where GM picks up 50% of the parts and labour for any GM vehicle repair provided you can show documentation of service.. wow.. that should improve resale value … so the next time I go to buy a GM car I dont think about the big value loss when I have to sell it
(8) Reliability is a huge issue with GM cars.. and the dealerships are not very kind.. they will charage for every little thing.. design the cars to be more service friendly
(9) I am an engineer by profession and will galdly share some desings that I have been playing with for the Vette.. if you are interested contact me at the Email above
Ps: Remeber the 50’s and 60’s .. GM cars changed year to year.. and styling was hot hot hot.. the 1997 vette looks exactly like the 2004 sans the wheels - what gives ??? anyways thanks for reading!
Justin Zdravecky
Mr. Lutz,
The dealerships are the reason for the loss of old customers and the lack of gain of new ones. My father only buys GM Products. My best friends only buy GM Products. Why? The vehicles themselves. I normally buy GM Products. I do own a 2003 Chevrolet Trailblazer and 2006 Pontiac G6 GTP. But the dealer I bought the G6 from took my $1750 rebate as profit. They added it to the price of the vehicle and then deducted it. I caught it the next day and attempted to get the money back only to find that they claimed the car had a $1750 mark up due to demand. Yeh, right! I do see a lot of Pontiac G6’s on the road, but there is a never ending supply of them at the dealerships. The G6 I bought had also been sitting on the lot for 60 plus days.
Another problem at GM is the upgrade of powertrains the following year after a vehicle is released. Come on!
I had 2004 Pontiac GTO/5.7L LS1. Then you guys decide to add the 6.0L LS2 for 2005. I was so mad that I traded the vehicle in. GM then did the same thing to me again. They put the 3.6L V6 with a 6 speed automatic in the G6 GTP. Obviously a much better set up than the 3.9L with the 4 speed auto. This made a car I paid way to much for worth even less. It all comes down to trade in value. Your return car buyers don’t keep cars more than 3 years. So when you make it hard for them to trade in one of your products without getting burned people turn to other alternatives. That’s why people buy Honda, Toyota, Subaru, etc. Resale and Trade-in value!!!!
Steve B
For my part, I have an Avalanche and a Corvette.
The Avalanche has 107,000 miles and has been very dependable. The only problems I had was a power window motor failed. The front breaks had to be replaced at approximately 70,000 miles. How can my next vehicle not be an Avalanche.
Regarding the Corvette, I only have 6,000 on it and I bought it new in 1999.
I would and have recommended both.
Lee T
I have been a frustrated GM fan for over 50 years. The solution appears simple to me.
In the fifties, styling sold cars. In imitating the Japanese/Germans, we lost sight of that.
Yes, it’s probably not economic to have model changes every year but model changes do drive my purchase decision. And, “knock your socks off” styling trumps everything else. I want a car that I like to look at and that doesn’t look like every other car on the road.
Show some creativity. Hyndai has done well here. Chrysler has had its moments.
Even when you have a hit in the Solstice/Sky, you leave out one very important item - trunk space. Many who buy sports cars play golf and you cannot get golf clubs in those cars. No matter what else, it eliminates the car from buying consideration.
Warranty/reliability is second.
And, finally treat your customers with respect. The OnStar fiasco is a slap in the face. GM knew this would happen yet still produced the analog systems when digital technogy was being used by virtually every cell phone in the country.
To just tell customers you are shut off is not acceptable and insulting. A free one year subscription presupposes I would want to buy a new GM product. It’s not the slam dunk it used to be.
David Swanson
Mr. Lutz, I love GM vehicles, If there is a problem, it is with reliablility. I have a 2003 3/4 ton Silverado diesel, and 2005 Avalanche.
My silverado blew the brake module less than a month after I purchased it. It was covered under warranty, but since then the ABS light comes on at random intervals upon startup…the dealer has been unable to resolve the issue. My instrument panel quit..that cost me $400.00, then the radio quit, $600.00. Then there was the excessive exaust smoke that the dealer was unable to find the cause of. At 103,000 miles, the idler arm broke and the engine light came on and the exaust smoke was really bad. The repair bill totaled $18,000.00. The dealer and GM covered most of it leaving me with a $1,800.00 bill. I should not have these types of problems with a top end GM vehicle and if it were not for the dealer and GM covering most of this bill, I would not even consider purchasing another GM vehicle. As it is I will look at the reliablity ratings and the word of mouth “ratings”. Work on the reliabilty of the GM product and the customers will come.
I was very impressed with my 1991 Jimmy….310,000 miles and only replaced 1 transmission….I was impressed and that is what influenced me to buy GM
rick stuckey
As a former GM loyalist, repeatedly let down by your cars, and finally sent away for good by horrible GMAC customer “service” I do recognize a significant improvement in your products. I was shocked when a friend recently opened his garage door to show me 2 new Saturns - they are terrific.
But this has yet to get me into your dealers and the next issue for you to tackle sir is why; namely the dealers themselves. As a group they are just horrible, and you must be well aware of it.
Since I mentioned Saturn I should admit that I have never visited one of those outlets, but all previous experiences with the exception of a CarMax that sells new Chevys have been experiences that should embarass you, and that you should find unacceptable.
I won’t belabor the point here as I think we all know what I am getting at.
I’d like to buy American but expect to be treated with honesty and respect consistent with the investment you ask me to consider making in your products. I can buy a car from a P.C. Why don’t you sell them directly to me in such a manner? Your dealer network provides much disincentive for me to consider your products. Their tactics are in your way.
Brian
I remain suspicious of American-made cars, although I will buy them. Why? Education. I know that America graduates fewer high quality engineers than the competition. I know that American factory workers get a second-rate public education, compared with the competition. I know that American managers can get through MBA programs without an in-depth understanding of labor, technology, or politics. With fewer high quality engineers, design flaws increase. Less educated factory workers can’t do statistics for process improvements. MBAs with a shallow education make fewer good management decisions.
KEN
Mr. Lutz,
Thank you for having the courage to state your beliefs on global warming.It is a crock. It also creates multi millions of dollars for people (Al Gore) and industries. Years from now it will be remembered as a political and economic scam. However, by then there will be an be a new phrase or buzz word to scare an insecure and uneducated majoriy.
Tony G
God Bless Bob Lutz. I just read he thinks Global Waring is BS. The truth is a beautiful thing!
fearn
Mr. Lutz the problems at GM couldn’t have anything to do with a new $39,000 GM pickup with numerous problems right off the bat could it?
Also do you really think of yourself as a global warming expert with more knowledge than thousands of scientists who have spent years studying the situation. It is that sort of arrogance and ignorance that creates so many problems for GM and America.
Steve
What can Buick do to improve customer relations.
1) Be willing to take responciblity for the lame duck you sold for years, and seem to still beleive your units are above the rest.
A good example is the 1991 Buick Park Avenue, its a piece of trash. After 50,000 miles it stops running and no mechanic seemss to be able to find or fix the problem with out completly restoring the whole fuel and sensors systems.
I would suggest a full recall on all 1989 - 2000 Buicks with this system ASAP.
Gee, maybe the public would see this as a step for the safety and economic support of Buicks customers. To spend thousands of dollars to fix a car every 15-20 thousand miles is just STUPID.
Harely
As you stated “This issue, this question of how do we increase awareness, improve our image, and enhance public opinion of our cars and trucks, is weighing on everyone’s mind in this company, from the plant floors to the boardroom”. As many people have stated here, it all starts with the dealership. Word of mouth and image of GM comes from its dealerships. As there are many that are worthy of being GM dealership there are many that are not. Compare the Toyota , Lexus and other competion dealership and the majority of the GM dealership dont even come close to compare. Some of the GM dealerships in my area are so out dated and plain dirty I cant believe GM allows them to sale there vehicles. You need to tighten up on each dealerships CSI and training levels. Give the customers “the complete dealership experience” from sales to service. How do you expect customers to believe in GM’s quality and service when they dont even make there own dealerships hold up to an equal level. These outdated and dirty dealerships are hurting GM more than they are helping.
Rum Doodle
~ “How do you expect customers to believe in GM’s quality and service when they dont even make there own dealerships hold up to an equal level. These outdated and dirty dealerships are hurting GM more than they are helping.”
Bingo Harley! You make an excellent point.
No matter how good a car GM’s engineers design, and their skilled UAW employees build, it matters little if prospective buyers get a bad impression at the dealer.
My message to Wagoner and Lutz is the same as yours: Put more effort and resources into improving your dealer network. Also improve the warranties, and make your dealers honor them. That’s where you’ll get the most bang for the buck.
Perhaps you actually have little control over how your dealers behave. It that’s so, change the system.