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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 by Lutz on February 16, 2006 4:15 PM
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Comments
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 $$, just roll it out in one division and give it a try. DCX says it didn't work for them, but there's was 7/70 (not as impressive as 10 yrs), not to mention they didn't advertise it to the capability that GM can.
Posted by: Nick Naylor on February 16, 2006 4:35 PM
Mr Lutz,
I think the message is starting to get out there. Some of your problems have to do with Media Bias to some degree. I've read some reviews of the Lucerne where the reviewer seemed pained to admit it is a great car.
I think your add campaigns need to continue to emphasize all the positive press that GM cars have been getting. It does take time to change Brand Perception. Take a look at Mercedes. The quality and residual woes still have not reached the mainstream.
I didn't even know about GM's resurgence until I initiated a research study on the Auto industry for my company. And this is coming from a car nut too!
The emphasis at GM needs to be product. With more cars like the Lucerne and Solstice you will win people over. Use cutting edge designs like the Buick Enclave to do the advertising for you!
If people turn their heads and inquire as to the make of the car, you've saved yourselves a bunch of $$$ 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
Posted by: Sam Verma on February 16, 2006 4:58 PM
Call the discovery channel. Pitch them a new show - "American Automaker". Hey, it worked for Orange County Choppers, right?
Posted by: Al on February 16, 2006 5:01 PM
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.
Posted by: patrickmichael
on February 16, 2006 5:15 PM
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.
Posted by: Doug Glover on February 16, 2006 5:18 PM
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,
Posted by: Aubrey Hill on February 16, 2006 5:20 PM
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.
Posted by: Mark on February 16, 2006 5:21 PM
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?
Posted by: Edwin on February 16, 2006 5:49 PM
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
Posted by: Zane Merva on February 16, 2006 5:49 PM
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?
Posted by: Devang on February 16, 2006 5:53 PM
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.
Posted by: GM_ENTHUSIAST on February 16, 2006 5:56 PM
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.
Posted by: Gary Miller on February 16, 2006 6:10 PM
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
Posted by: SteveG on February 16, 2006 6:16 PM
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.
Posted by: Jeff Cain on February 16, 2006 6:18 PM
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.
Posted by: Joe on February 16, 2006 6:22 PM
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.
Posted by: Edward Hayes on February 16, 2006 6:31 PM
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
Posted by: mbb on February 16, 2006 6:46 PM
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. 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.
8) 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.
Posted by: Daniel Will on February 16, 2006 6:49 PM
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.
Posted by: NeedCoolCars on February 16, 2006 6:54 PM
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.
Posted by: John on February 16, 2006 6:56 PM
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 4x4, 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
Posted by: Paul on February 16, 2006 7:09 PM
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.
Posted by: JTJ, Esq. on February 16, 2006 7:15 PM
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.
Posted by: john h on February 16, 2006 7:26 PM
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
Posted by: Mr Tripower on February 16, 2006 7:28 PM
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.
Posted by: inline6 on February 16, 2006 7:34 PM
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).
Posted by: RJ on February 16, 2006 7:41 PM
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.
Posted by: unnamed on February 16, 2006 7:47 PM
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.
Posted by: Justin on February 16, 2006 8:16 PM
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.
Posted by: Gary Miller on February 16, 2006 8:16 PM
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.
Posted by: Anthony on February 16, 2006 8:32 PM
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).
Posted by: Tim Geisler on February 16, 2006 9:32 PM
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!
Posted by: Bill Aston on February 16, 2006 9:33 PM
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.
Posted by: Mark Stabingas on February 16, 2006 9:40 PM
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)
Posted by: Porter Littlefield on February 16, 2006 9:44 PM
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!
Posted by: Dan on February 16, 2006 9:45 PM
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.
Posted by: Gene on February 16, 2006 9:47 PM
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.
Posted by: Guido on February 16, 2006 9:49 PM
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...
Posted by: Dean Jones on February 16, 2006 10:23 PM
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!
Posted by: PJ on February 16, 2006 10:28 PM
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...
Posted by: William Lanteigne on February 16, 2006 10:44 PM
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.
Posted by: Brad on February 16, 2006 11:05 PM
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!
Posted by: gtluis on February 16, 2006 11:08 PM
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.
Posted by: georgemia on February 16, 2006 11:10 PM
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.
Posted by: gtjeff on February 16, 2006 11:19 PM
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.
Posted by: Tim Podgurski on February 16, 2006 11:29 PM
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
Posted by: Rene Curry on February 17, 2006 12:37 AM
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 !
Posted by: Devilish on February 17, 2006 1:41 AM
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
Posted by: Ethel O on February 17, 2006 1:49 AM
Take your finest cars to the streets (literally) and let people drive them. They'll see GM is right with the best.
Posted by: getalifeagain on February 17, 2006 1:53 AM
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.
Posted by: John on February 17, 2006 2:06 AM
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…
Posted by: Akex on February 17, 2006 2:13 AM
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
Posted by: Jake Smith on February 17, 2006 2:22 AM
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.
Posted by: Scott on February 17, 2006 4:36 AM
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.
Posted by: Jason Zebersky on February 17, 2006 4:57 AM
"...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
Posted by: Ted krygier on February 17, 2006 5:00 AM
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.
Posted by: Mr. Langlitz (Germany) on February 17, 2006 5:27 AM
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.
Posted by: Ryan on February 17, 2006 8:27 AM
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
Posted by: Tim on February 17, 2006 8:41 AM
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!!
Posted by: Marc McClelland on February 17, 2006 8:49 AM
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.
Posted by: Arizona Slim on February 17, 2006 9:08 AM
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!
Posted by: Pierre Roberge on February 17, 2006 9:18 AM
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
Posted by: Scott on February 17, 2006 9:40 AM
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" ...
Posted by: Tom on February 17, 2006 9:44 AM
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!
Posted by: JR on February 17, 2006 9:47 AM
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
Posted by: David Hoff on February 17, 2006 9:48 AM
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.
Posted by: Joe Gakenheimer on February 17, 2006 9:56 AM
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.
Posted by: Victor on February 17, 2006 10:26 AM
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.
Posted by: Chris C on February 17, 2006 10:39 AM
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
Posted by: David Hoff on February 17, 2006 10:44 AM
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!
Posted by: Steve M on February 17, 2006 10:52 AM
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.
Posted by: Augustine on February 17, 2006 11:09 AM
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.
Posted by: David on February 17, 2006 11:22 AM
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...
Posted by: scottz on February 17, 2006 11:36 AM
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.
Posted by: Jay on February 17, 2006 11:56 AM
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 i