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Re-Igniting the Passion
The following is a speech Bob Lutz gave yesterday to the Swiss American Chamber of Commerce in New York. It's caused quite a stir, and we thought you'd be interested in it.
Thank you, Ambassador Loretan, and good afternoon, everyone.
Thank you for that introduction, and I’d also like to thank Mr. Dinerstein for your fine welcome, and all your hard work for the Swiss American Chamber of Commerce.
It’s a pleasure to be with you today.
It’s also a pleasure for me to be a part of Swiss Roots— it’s a wonderful project with admirable goals, and I’d like to take the opportunity to thank the people here who are doing the real work!
The Swiss Roots web site is up and running, and it’s going to facilitate closer ties between our two nations — my two nations — and among the 1 million Americans of Swiss descent, and their countrymen in Switzerland.
Switzerland and the U.S. have a long tradition of friendship and cooperation, and they have much in common, not the least of which is multiculturalism. Both countries have a very rich and diverse cultural composition, although the Swiss have embraced it more perhaps, at least from a language standpoint.
Despite the penchant on the part of Americans to get the rest of the world to speak English, we really do have a lot in common, especially the values we espouse, like individual freedoms.
That’s why I felt no conflict of loyalties by serving in the U.S. military, because the two countries, so vastly different in size, were so similar in values, especially during the Cold War.
I thought I would become a military lifer, but to become a senior officer, I needed to get a college degree. So I enrolled at the University of California at Berkeley, and before I left there, I’d decided to pursue a career in business, in particular, the automotive business, starting with General Motors. And now, after more than 40 years and many stops along the way, I find myself back at GM.
Which seems fitting to me. Because not only is there a long, friendly history between Switzerland and the United States, there is a similar one between Switzerland and General Motors. But that shouldn’t surprise anyone, given that Louis Chevrolet was Swiss, and the Chevy Bow Tie logo isn’t a bow tie at all but a derivation of the cross on the Swiss flag.
When I was growing up in Switzerland, GM had an assembly plant that produced beautiful vehicles every day. Back in those days, this business was such that you could have a local assembly plant in nearly every country. Eventually, the auto industry transitioned to regional assembly, and regional optimization.
Now, the industry is rapidly entering a new chapter marked by global competition.
At GM, we’re positioning ourselves to compete in this global industry by leveraging our vast global resources.
We have streamlined our product development process, and aligned our planning, design, engineering and manufacturing capabilities under global auspices. It’s not possible any longer to operate as GM once did, as four regional and semi-autonomous auto companies.
Now all of our regions will be operating as one company going forward. And that will show in our improved product lineup. In fact, the process has already begun… the products we’ve recently introduced, and the ones to come in the short-term, are the best we’ve ever introduced. But it’s hard to get people to realize that.
Why? Let me give you a few examples of what some people are saying about us. You may have heard of this first guy:
President George W. Bush: “[The U.S. auto industry] needs to develop a product that’s relevant… GM is going to have to learn to compete.”Another senior administration official told The Wall Street Journal: “The American auto industry needs to focus on producing cars that Americans want to buy.”
Automotive analyst Maryann Keller: “GM has forgotten how to make cars that people want to buy.”
Business Week’s David Kiley: “[GM] is not making very many cars that people want to buy.”
Are you starting to see why sometimes we think there’s a herd mentality out there? Here are some more…
The Wall Street Journal’s Lee Hawkins: “GM is having a hard time persuading Americans to buy its cars.”Automotive analyst David Healy: "GM's problem is that … its products are boring."
St. Louis Post-Dispatch editorial: "Its real problem is that people aren't buying GM cars... To be blunt, GM cars are boring."
Fortune reporter Carol Loomis: “In product design, [GM] lost the magic long ago.”
Forbes Magazine senior editor Neil Weinberg: "[GM’s] biggest problem is product.”
The Wall Street Journal’s Paul Ingrassia: “Robert Lutz has been surprisingly ineffective at GM, as if mired down like a raisin stuck in oatmeal.”
I’m especially fond of that last metaphor — that was a new one for me. I didn’t even know raisins got stuck in oatmeal; I always thought they sort of floated there proudly, going about their business.
Anyway, well, now let’s look at some of our awful, boring products and see just how unpopular they are:
Chevrolet HHR- We’ve raised our forecasts twice for this model, from about 60,000 initially to now about 132,000 annually.
- March was its best retail month since launch, with very little spent on customer incentives.
- California, Texas and Florida are the top three retail states since launch. Those are not traditionally strong markets for GM cars.
- So far in 2006, HHR has outsold the Chrysler Pacifica, Nissan Murano, Dodge Durango, and Honda Element.
- Our dealers are requesting 200% of our ability to supply…
Chevrolet Impala
- We are building 250,000 of these a year, and demand is running about 300,000.
- March was its best sales month yet. It overtook the Nissan Altima as the third-best selling car in America, behind Camry and Accord.
Buick Lucerne
- March was its best sales month since its launch last year, and 91% of sales were retail, meaning non-fleet, non-rental companies.
- Lucerne has the second-lowest turn rate in the segment, 25 days, trailing the Toyota Avalon by just one day.
Chevrolet Corvette
- The world’s great affordable sports car, Corvette is sold out.
Pontiac Solstice
- Solstice? Sold out. Best turn rate of any vehicle in its segment.
Saturn Sky
- “All available production for 2006 is accounted for.” In other words, sold out.
Before I go on, I’d like to show you the Sky we introduced at the New York auto show just this morning, and the other Saturns we showed:
- Saturn Sky Red Line
- Saturn Aura
- Saturn Outlook
- Saturn PreVue
So we have big plans for Saturn, as we do for all of our brands. But at the moment, perhaps what we’re most proud of is our new fullsize sport utilities. Let’s look at what the “experts” had to say before they came out earlier this year:
University of Maryland business professor Peter Morici: "They're married to large vehicles and big engines, and consumers just aren't buying them right now… SUV sales are going to continue to lag and GM is almost in denial on that issue."Analyst David Healy: "GM is … betting the ranch that they can sell SUVs in an environment of $2.50-a-gallon gasoline, but the big SUV segment will continue to shrink, and GM is going to have its work cut out for it."
Autobytel analyst Brian Chee: “Everybody else is coming out with subcompacts, crossovers and smaller cars while GM is alone in the woods when it comes to these big SUVs.”
By the way, it’s worth pointing out that we are most certainly not alone in the woods; Chrysler and Ford are coming out with new fullsize SUVs, and, would you believe it, Toyota is readying a new line of fullsize trucks, too. So, apparently, not everyone thinks this segment is dying out.
It makes you wonder just how these experts get to be experts!
Well, we went ahead and launched our new SUVs anyway. Let’s see how they’re doing:
- Year-to-date GM share of the large utility segment is 67.5%, up 8.6 pts from year ago
- Non-GM Source of Sales of ’07 models: Tahoe (29.8%), Yukon (27.8%), and Escalade (26.4%)
- Average transaction price increase versus last year’s models: Tahoe (+$6.5k), Yukon (+$6.7k), and Escalade (+$10k)
So, we’re selling more of them, for more money. The pundits will say that’s just because they’re brand new, but we’ll see, because we think these are the best SUVs that have ever lived. Take a look at them:
Chevrolet Tahoe- March retail sales were up 35% from February, and it’s doing great on the West Coast.
- Total ’07 model year sales are the highest in the segment
- In March, it had a turn rate of just 19 days, compared to 80 days for the Ford Expedition and 41 for the Toyota Sequoia
- March Yukon sales were up 109% from February, and it had a turn rate of just 16 days, on average.
- March sales were up 73% from February. Its total sales lead the Lincoln Navigator by 300 units, and it has outsold the Infiniti QX56, Range Rover and Lexus LX 470 combined.
- Vehicles turned in an average of 7 days in March. That means the inventory is turning four times a month.
Now, all of this is amazing to me. We don’t make any cars or trucks that anybody wants to buy… but we sure do sell a lot of them. Either we are holding a lot of customers at gunpoint in our dealerships and forcing them into our vehicles, or the so-called experts are absolutely blind to what is happening in the marketplace.
It’s as if the folks working the op/ed and business pages don’t even read the product reviews anymore. Because if they did, they’d see that our cars and trucks are getting largely rave reviews.
Anita Lienert in The Detroit News: “The redesigned Escalade stands out as the sexiest full-size SUV on the market, an awesome Detroit offering that hits a bull's-eye in such important areas as horsepower and cabin design.”Paul Eisenstein, The Car Connection.com: “The Escalade is about as good as a full-size SUV gets.”
And how bout this one?
Joe Langley, CSM Automotive analyst: “GM’s redesigned full-size SUVs will prove the segment is alive and well despite unexpected events that try to wreck their place in the market. The segment is far from dead. I recommend taking any of them for a drive, and you’ll be as surprised as I was.”
I make that same recommendation to all of you, on the SUVs or any of our new vehicles. They’re really a big step forward for GM.
All we have to do now is make people aware of it. We have to get word out that we’ve improved, and the marketplace bears us out.
For the first quarter of this year, our launch vehicles — that is, our newest cars and trucks —accounted for 30 percent of our sales. That’s more than double where we were a couple of years ago.
We expect that recently launched vehicles will account for 29 percent of our U.S. sales volume this year, and as much as 33 percent next year. That’s up from 22 percent in 2005.
And I should point out that despite our financial difficulties, we backed up our commitment to great products by raising our capital spending in 2005, and we’ll increase it again in 2006 to $8.7 billion, the bulk of it on developing new cars and trucks.
It’s full speed ahead for us.
Perhaps you have heard the economic parable about the old man who sold hot dogs on the street corner. He was hard of hearing so he had no radio. He had trouble with his eyes, so he read no newspapers. But he sold good hot dogs.
He sold so many that he increased his meat and bun orders. He bought a bigger stove to take care of his booming business. Business was so good he brought his son home from college early to help him out. And his son said:
"Father, haven't you been listening to the radios or reading the newspapers? The economic situation is terrible. All of our jobs are going away — we’re headed for depression. This is no time to be spending like this."
The father thought to himself, "Well, my son's been to college, he reads the papers and he listens to the radio, so he ought to know."
So the father cut down his meat and bun orders, took down his signs, and his hot dog sales plummeted almost overnight.
The father said to the boy, "You're right, son, we certainly are in the middle of a great depression."
Well, we don’t care what the newspapers, or the radio, or our kids tell us. It becomes a self-fulfilling prophecy; we’re not going to listen to the naysayers — we’re going to listen to our customers.
Finally, let me just say that perhaps the title of my remarks today was misleading…. We said “Americans and Automobiles: Re-igniting the Passion.”
But what we really mean is… Americans and American automobiles… and particularly, General Motors automobiles.
People who think it doesn’t matter who owns our auto industry are flat wrong. They think it doesn’t matter because the Japanese and Germans and Koreans are “producing” in the states now. But they’re not “producing”— they’re “assembling.” The parts are mostly brought from overseas, and the profits for reinvestment don’t stay in the U.S.
These are facts about our domestic auto industry:
- GM, Ford and DaimlerChrysler account for 4% of the U.S. GDP, and 11% of all manufacturing shipments.
- We collectively employ 400,000 people — that’s nine out of 10 American autoworkers — and affect 7 million jobs in auto and related industries.
- We provide healthcare for 2 million Americans, and pension benefits for 800,000 retirees.
- We buy 80% of the auto parts sold in the United States.
- And we’ve made 85% of the total investment in the U.S. auto industry since 1980.
So remember those facts the next time somebody says it doesn’t matter what country’s supplies the cars and trucks we buy.
If you’ll indulge me, I’d like to read you a letter from someone who understands this. It was written by Congressman John Dingell of Michigan, to the president, in response to his comments on the U.S. auto industry. Congressman Dingell writes:
“The American auto industry is not being hurt, as the Administration suggests, because of the vehicles it is producing. Contrary to the statements of your chief economic adviser, American manufacturers lead the industry in fuel economy in nearly every segment. Our automakers face healthcare and pension costs which foreign automakers do not.“These problems are only compounded by the Administration’s failure to prosecute unfair trade practices by our competitors, counteract currency manipulation by Japan and China, and relieve the crushing burden of healthcare costs.
“Mr. President, we owe the auto industry a debt of gratitude for its contributions to this country and I am troubled by… the Administration’s complete disregard for this escalating crisis. The industry is anxious to restore its competitive edge, but they cannot do it alone.”
He’s right. We are not looking for any handouts. We just want a level playing field, and a chance to compete. We want people to consider our products again, because they deserve consideration.
Our quality numbers are way up from where they were in the past. Our designs are more compelling, more dynamic.
I am intensely and unapologetically proud of what we’re doing at GM, and also of what all of the so-called Big Three are doing these days. And I’m allowed to be: I’ve worked for all of ‘em.
GM has the broadest product lineup of any manufacturer … we have more models that get 30 miles per gallon or better on the highway than anyone else … we have OnStar, the industry’s leading safety and security service … we have the best large SUVs on the planet … and we have a host of great new cars and trucks worthy of your consideration.
Once we get that consideration… once we raise people’s awareness… once we get back on their radar screens, we will put them in the kind of cars and trucks that inspire passion.
Don’t take my word for it. Go drive one of our vehicles — I think you’ll be pleasantly surprised at what we have out there now, and what we bring out in the very near future. And I think you’ll be as proud of our products as I am, just like we’re all proud of our Swiss Roots.
But before you head out to our dealerships, I’d be glad to take some of your questions.
Posted by Editor on April 13, 2006 3:02 PM
Comments
Mr. Lutz, it was interesting to read your statement, "So we have big plans for Saturn, as we do for all of our brands." We can certainly see and GM has clearly explained what is in store for Saturn. But GM has done a poor job relating what is the future for one of your cornerstone brands, Buick. No one is asking you to reveal future product secrets to the extent that it will hurt you competitively, but do stir some excitement for your loyal Buick fans (which include many younger people) by discussing what is in Buick's future and how Buick will fit into your intended thriving, global, future GM. Doesn't Buick, which leads all other GM brands in J.D. Power quality surveys and is leading GM sales in China, deserve that much? Thank you.
Posted by: wildcat on April 13, 2006 4:27 PM
Great news about the Lucerne! When the Buick Velite be produced? At the 2004 auto show in NY we were told 2006 or 2007. I want to buy one,
Posted by: paul on April 13, 2006 4:49 PM
Great speech! I like the way Bob read the caustic statements and then spit in their faces with the facts.
Lets see Wagoner talk like that, or maybe GM should just let Bob do the talking to the Media.
Only negative comment on the new Saturns-You have to get rid of the fake wood in the Aura. Do you see fake wood in the Altima or Camry?
If you do have an alternative to the wood, make that standard and start showing pics of it immediately. The fake wood looks awful and is marring an otherwise attractive interior.
And who thought to put those wheels on the Aura? They are hideous-get some 5 spoke wheels on it and see how much better it looks.
The fog lamps are wierd also, like it has a droopy eyelid.
And for crying out loud, please start putting the parking brake on the console-not the floor!
Increase your warranties!
Posted by: SteveG on April 13, 2006 4:57 PM
Finally somebody came out and said it!
He forgot to mention the foreign exchange rate benefit the imports have along with their currency manipulation.
This is why I have always bought American cars, it helps Americans which in turn helps me.
For all of those people out there with American flags on their import car, get real! If you loved America so much then you should buy It!
Posted by: Mark on April 13, 2006 5:22 PM
THat was the best thing I've read from anyone working at GM ever. Finally someone speaks up about the misinformation being spread around by auto journalists. Some of those people want to see GM go out of business. Keep it up! You cannot sit there and take this stuff lying down anymore. Desperate times call for desparate measures. The same experst who are predicting GM's demise were the ones doubting that Cadillac could ever be relevant again. They just go from one criticism to another. I read some commentary about Saturn today on thecarconnection that was criticizing GM for expanding the brand and "changing it's character". When have you ever heard of a brand being criticized for trying to expand its lineup and grow sales?
Posted by: Sheth Jones on April 13, 2006 5:33 PM
I think you may have a point about the stock advisors spelling out doom and gloom for the Detroit auto industry and then selling short. I think the State Attorney General should look into the matter. I brougt it up to a news column reporter a few months ago and he said no way.
Posted by: joe blow on April 13, 2006 6:04 PM
Velite! Totally! When I saw that car it totally turned me on to GM. Never thought I would want a Buick, but it is one hot car. I would ditch my beemer in a heartbeat for it. When is it coming out?
Posted by: J. Greene on April 13, 2006 7:07 PM
Mr Lutz~ I am a "baby-boomer" who is closer to 60 than 50. I have seen what GM can do if it puts its considerable talents to work. The icons of the muscle cars were GM built. The innovations of the 60-70 were primarily GM success stories. And then the gas prices went up, the cars got smaller, and GM lost its way. So as much as I hate to agree with a politican,I have to say GMs CARS are boring; with a few obvious exceptions - Corvette/XLR, Solstice and clones, and the Cadillac V's. GM has had many impressive concepts in the last few years that have shown the ability to produce attractive/exciting cars, but they have died with the auto shows. An example would be the Chevrolet SS. It was a hot looking car, drew a lot of attention from the press and public, then disappeared. The Buick Velite would be another example. And where is the new GTO concept/replacement that you said just last month was back on track for production on the new Camaro platform? Does striking while the iron is hot mean anything at all at GM? Why is it all the exciting new cars are coming from Damiler/Chrysler? How many of us GM supporters must vent on your blog sites before the message is received?
Posted by: John Wellauer on April 13, 2006 7:27 PM
Great Speech! Since I'm sure the slanted media will not report on this at all, I believe you should take out full-page ads in the major papers across the nation and in car magazines with the title to the effect of "GM IS ALIVE AND KICKING !" and include the product performance excerpts from your speech. It seems like the only way GM will get good news into the media. If every single model in GM's lineup was a best-seller and technological leader except for a single lone model "X", the media would report "GM MODEL X SALES PLUNGE". The depth of media bias against GM is amazing !
Posted by: Ted thomas on April 13, 2006 7:41 PM
Well, after reading that I am glad I am not an "expert", at least by their definition.
I didn't really care that the media pays a reporter for being a critic and rewards them for being a sceptic. I didn't care to much how much they hyped this country and stereotyped the next. But here is where I would draw the line. When the drum beat of criticism becomes so loud as it voids out the truth that ultimately good and talented people are lost in the collateral damage.
This Sunday Rick said one sentence and it was all we needed to hear. But the reporter was on a tirade. This was the sentence.
We have cut $8 billion out of GM's cost...name another company, there is no company that has achieved that kind of result probably ever.
Later Rick said we are taking equity and putting it in product development and speeding up that product development.
That is the truth that got blindsighted and sideswiped by a barrage of criticism. Here is the answer.
No Rick there is none that has navigated through and moved the mountain of numbers as you and...
No Bob, there is none that has navigated through and moved the mountain of GM's worldwide product portfolio and development inertia as well as you.
And no Edward, there was none that navigated through the mountain of criticism and saw these two as the most undervalued, underestimated and underappreciated men in all of the auto industry, probably any industry.
I am glad I am on record as saying such...even if only in the blogosphere.
And if you missed it here it is again.
Bob you're worth your weight in Gold.
Rick I couldn't be more proud, not slow but methodical, opting to cut costs like a surgeon not a bully with a machete.
Now keep going, there is obviously a reason why you are so talented and God never puts talent to waste so keep; keep; keep driving.
Posted by: Edward Hayes on April 13, 2006 8:19 PM
Bob,
This was a very good speech. I think all of GM's moons are aligning and within two years GM will be in great shape. GM has one of the best management teams in automotive history, and I think I know what I am talking about because I used to be on the BOD of the Society of Automotive Historians and have worked in the automobile industry since 1977. Rick Wagoner, yourself, and the rest of the GM Management Team will be vindicated. Some "experts" have complained that Rick Wagoner is not charismatic enough, but I would much rather have a CEO who is very intelligent, knowledgeable about his company and industry, and has high integrity than some of the blow hards that get a lot of business press, but do not have anywhere close to Mr. Wagoner's substance. God's speed to you.
Respectfully,
Eric M. Vest
Posted by: Eric M. Vest on April 13, 2006 8:22 PM
Dear mr Lutz,
I am a loyal GM owner. I have a 2002 Avalanche thats almost paid off and I will be keeping it until you come out with one that gets signifigantly better gas milage or I can convince my wife of a new one (Doubtfull). I am researching now a new purchase for our household. I am into driving and like quality,performance and most of all American made! I was a mechanic for 15 years and I've worked on all makes and models so I've seen all the different approaches. I want GM to make a sedan for the family man a rear wheel drive or all wheel drive car that does what the corvette does in terms of value,performance & quality in comparison to other makes like BMW,Audi,Lexus etc. I want GM to think outside the box,make it so good and such a bargain compared to the rest that every man or women will want one. It needs to be part Hybrid part performance. It needs to get amazing gas milage in normal driving mode but It needs to rip! like the bigblock 396,427,454's muclecars used to. You need a sedan that will hands down spank almost anything that pulls next to it,handle well, get awsome gas milage, be rear wheel drive with a manual trans and the automatic should be either sequential or paddle shift. Most of all it needs to be affordable not just a little cheaper than a BMW I'm talking bargain so cheap compaired to the others that all will have no choice but to buy a Chevrolet again it needs to be dominant like the olds GM cars used to be. take the excitement of a 1969 ss camaro 396/375 4 speed with 411's, a 1970 ss chevelle 454 LS6 4 speed with 411's a 1970 Buick GNX 455, 1970 GTO ramair IV 4 spd. now mix it with a 5 series BMW or and Audi S4 throw in the quality of a lexus and the gas milage of a honda hybrid and the price of a Hyundai. shake well pour it out at you dealers and start selling them like hotcakes! I know this sounds carzy but take it from someone who knows cars build me something that is awsome and affordable I love the GTO but it's too expensive. I also love the ctsV but it is too mix them up to make a really cool second coming of the chevelle! or call it something brand new just build it!
Posted by: Paul on April 13, 2006 9:10 PM
Mr. Lutz,
Great speech. Why limit yourself to the Swiss American Chamber of Commerce? Call a giant press conference and invite all the naysayers mentioned above, perhaps double-teaming with Rick Wagoner, and then set the record straight with this convincing rebuttal.
Posted by: GTZ on April 13, 2006 9:55 PM
Bob Lutz has made a great speech about the truth and GM.
Key points of this, should be plastered all over MSM be it print, radio, t.v. or whatever.
Posted by: getalifeagain on April 13, 2006 10:48 PM
Well done Maximum Bob, that's the swagger GM sorely needs! Give 'em hell! Keep that right foot down, face up- GM will continue to get my support for it's superb product offering turn around (i'll be first in line for the new 'Ro).
Posted by: forrest j. on April 13, 2006 11:13 PM
I have a few reservations a about the Solstice because of no trunk. I'd still like to see the Nomad come to production.
Posted by: Rick Rohde on April 13, 2006 11:27 PM
Gosh, if things are so great at GM like Bob seems to think, why are they still loosing money?
I think GM can continue to survive selling the cars they sell. Simply because there is a portion of the American population who don't know anything about cars and typically judge books strictly by their cover. Those are the 300,000 people buying the lackluster Impala.
But GM will NEVER regain the number one slot as the world's largest auto producer once they loose it (all bets say next year).
This speech Bob gave was either full of ignorace or a dire attempt at a distraction from the real issues concerning the company.
Posted by: Joe on April 13, 2006 11:28 PM
Dear Mr. Lutz,
On the other hand, you cannot give these guys any ammunition to bash your cars. You need to:
1. BAN the hard, black, cheap plastic--especially on your Cadillacs. Use leather, more wood, brushed metal and other luxurious materials instead (glass? stone?).
What about imitation leather on the dash for the low-end cars? Mr. Lutz, I'd say the black plastic is worse than the rat-fur.
2. Pick the low fruit. Listen to the recurring criticisms from the reviewers and try to fix the easy ones (like the headliner in the STS, or adding seat bolsters that stiffen during cornering, or those interiors).
3. Innovate and lead in terms of content. Gadgets (not gimmicks) always catch reviewers' eyes. Find unique ways to pamper the people in the car. Keep all your models up-to-date in terms of electronics. In this day and age, music jacks (heaphone, iPod/MP3 input), laptop/cellphone chargers (no adapters needed), Bluetooth and a small, in-Car hard drive (for temporary document storage and file manipulation on-the-go) should be standard for most vehicles.
Don't let the negative reviews get you down, but take careful note and improve, improve, improve. Soon enough, the customers will reward you.
Posted by: John on April 13, 2006 11:36 PM
I have a suggestion:
Could you make your Displacement-on-Demand/Active Fuel Management more standard across your lineup, and make it 2-4-6-8 (i.e. make it so that a car with a V6 or V8 can run on as low as 2 cylinders in stop-and-go traffic jams and 4 or 6 cylinders when possible)?
I am not sure how much fuel you would save, but I am willing to bet your city mileage would shoot through the roof!
Posted by: Brice Small on April 13, 2006 11:45 PM
Mr. Lutz,
What about Active Noise Cancellation on all of your vehicles (Impala, Malibu, Cadillac)? It is pretty simple to do on an $100 headphone, could you scale it up just a little and put it in your cars? The quietness would just blow Honda/Toyota away.
Tune it to cancel out wind and road noise as well as 2% of cabin noise.
Posted by: Rick Fulsome on April 13, 2006 11:56 PM
Mr. Lutz: you have reason to be proud of your efforts in turning GM around. I wish the “Big Elephant” would have listed back in 1971. The key to any successful business is to add value to the customer. You do this by listening to your customers.
My Dad had a 1970 472 cu. in. Cadillac. He let me drive it to college every week (65 mile trip). That was a great car. I was 20 years young and I never knew how fast the car could go because the speedometer just keep climbing until I couldn’t hardly see it anymore –not to mention the fact that I needed a 747's runway just to get it slowed down to a legal speed. I made the trip many times in 47 minutes, form dorm parking lot to my home driveway. Too bad it’s taken this long (loss of market share) for GM to see the light.
Anyway, I just want to thank you for coming back to GM. I especially want to thank you for the Pontiac Solstice. Mine is scheduled to be built on the 17th of April. I’ve ordered the Z0K package –LutZ is 0K! I’m still going to keep my Audi 3.0L Quattro. But if GM can convince me that they can build a similar product, with that great Audi Service and warranty, then I may consider a trade. But it’s going to take a lot to get me out of my Audi. I’ve visited Audi Forum in Ingolstadt, toured the A3 production line, and spoken with an Audi customer service representative in March 2002. Among other things, I suggested Audi race one of their diesel engines –I spent 10 years building hi-performance engines for American stock car racers.
I was hoping to tour the Wilmington Plant, but was informed by the Plant Communications Director that there are no plant tours available and she didn’t see any plans for this anytime soon. I think that plant tours would be a great marketing tool. That way Americans, like me, wouldn’t have to go all the way to Germany. Besides Audi Forum, I also visited VW’s Autostadt in June 2001.
P.S.: Was that you in the elevator around 9:00pm at the Ritz in Boston on the 7th. of April?
Posted by: Bigblau on April 14, 2006 12:00 AM
My dad would never buy a GM product in th fifties as young man simply because GM had too much of the market share. Growing up, I was a big fan of those 55, 56, and 57 Chevy's. I bought a 2003 Caviliar coupe, even though it wasn'nt the best car on the market and still have it, but because it was one of the best styled cars GM had put out in quite some time. It was a great looking car until it was redone at the end. I spent alot of time travelling in the international market and viewing what GM was building abroad. It's a pitty, although, I see as well as you do that standards of build , were and maybe still are much different, we in the US could have had some better products. My Dad now has a Buick and I'd love to have something , not necessarily retro , on the Kappa platform with a backseat, a cute or wagon like the Nomad concept.
Posted by: Rick Rohde on April 14, 2006 12:44 AM
If you remember right, the Mustang was a big hit in the beginning as an inexpensive coupe, not as a Cobra. An econo coupe, RWD, might just do it on the Kappa plaform.Even Bob would like to upstage Lee. We'll see.
Posted by: Rick Rohde on April 14, 2006 1:01 AM
Yes, I too would like to hear about some of Buick and its exciting new products. As a very young, and proud Buick owner, it would be comforting to know that one of the top ranking brands in quality sold in the United States has some products on the way that give Buick a lead in the styling department. Buick with out it's classy styling is nothing, and GM would be nothing with out Buick.
Posted by: Charlie on April 14, 2006 1:07 AM
Great speech! Keep it coming!
Right now the public really cannot connect with any of the auto company industry leaders.
Sure there is Bill Ford, Dieter Zetsche, and Carlos Ghosn. But only us car guys or business guys can relate.
Who is the face of Toyota, Honda? Where is the branding?
I would hate to distract Bob from product design, but now might be a good time to make him the front guy for GM.
I think it helped Chrysler when Lee Iacocca was the front guy. It gave the public a clear vision of where the company wanted to go, especially from a product/sales standpoint. Remember briefly back to that time...he was able to convince the public to buy a 'K' car! Imagine what he could have done with with a better product line.
With elections soon to be back in the news, it would be a good time to piggyback a little politics in there too.
Posted by: Rene Curry on April 14, 2006 1:10 AM
Dear Mr. Lutz,
I hear you will be improving on GM's interiors now. I hope you do an unsurpassable job with Cadillac. It pains me to see a better interior in my friend's Lexus. Please set the benchmark high. Among the things I am hoping for:
a. More real wood that looks integrated. The current STS has two or three strips and they all look like an afterthought. I would like to see wider strips of wood that flow better and are more integrated. Notice how in many European models, the wood forms around knobs etc.
b. No hard plastic--or very little of it. I'd prefer you used brushed nickel or aluminum. (I think a special edition with weathered copper would look even better.) Try making knobs and buttons substantial and of varying types of materials.
I hope to see real leather on the dash.
c. More--and bigger--screens. I think that regardless of whether or not there is a navigation system, all trim levels should have the largest and crispest touchscreen you can stuff into the stack.
However, I think navigation should be standard, complete with head-up displays with turn by turn signals and voice. The screen should also control myriads of other functions--whether or nto there is a nav.
Do you know those touchscreen remote controls? I think you can adapt the idea for your cars:
I think that there need to be smaller (grayscale if need be) touchscreens for each passenger to control his/her own climate and other options. Make them small (2 by 5 inches), lit and place them in the doors,on the passenger dash or on the backs of the front seats.
They could also control:
--The volume of the sound in each of the 5 individual headphone jacks (maybe each passenger can listen to his/her own radio station/CD from the changer/MP3)
--Redundant window and door lock functions
--Individual reading lights
--Other chair functions (move the front passenger seat up
They could also display the time, date, temperature in and out, radio station, song track and by Bluetooth: whether or not someone's phone is ringing.
These are just my ideas. I hope to see you guys shine. I don't ever want to have to apologize to my Lexus/MB/BMW buddies about lack of luxury on the interior (I actually think the Germans are the ones to beat).
Posted by: Dale Jameson on April 14, 2006 1:25 AM
Bob,
I have driven the Impala SS and I have driven a Charger, Magnum, and 300c.
-I want a RWD V-8 powered Sedan.
I have driven a 2500 Dodge, F250 Super Duty, and K2500. -I want a solid-axle 4x4 3/4 ton truck.
You can berate the customer all you want, or beg us to try your products, but I know what I want.
I would honestly rather tow my '63 Buick to and from shows with a GM truck, but the IFS in GM HD trucks is garbage.
-
For what it's worth, I own 5 GM vehicles and 2 DCX vehicles.
Posted by: James S. on April 14, 2006 1:39 AM
Bob I believe you said the SOLSTICE air induction noise problem has been solved.
It hasn't been solved on my car. The dealer hasn't been given any info (as of the last time I went in and was the first to tell them of the issues ) 2nd issue was / is the drive train noise.
If you guys have these in "concept" for 3-4 years, one would think you could bring it out with items like this fixed.
I will also suggest to you that you have the 'engineers' "hand wash" these things towel dry them and then open up every door, hood, trunk and see where the water is. Then you'd know where you might have to add an extra drain hole.
Hope this helps...I await your response
Posted by: San Diego Randy on April 14, 2006 2:08 AM
Bob,
I just read that the Cobalt performed better in J.D. Powers Initial Quality Survey this year than the Civic and Corolla did last year. The Cobalt reported 99.7 problems per 100 vehicles in 2006 compared to 104 posted by Toyota Corolla and Honda Civic in 2005. I also just read the latest Consumer Reports new car issue that rated the Cobalt much worst reliability than average or a solid black circle. I have taken several undergraduate and graduate level statistics courses at very good universities and know that J.D. Powers' statistical sampling techniques are much better than Consumer Reports' statistical sampling techniques. In fact, Consumer Report's statistical sampling techniques are very poor. I feel these facts vindicate Lori Queen's statements of a few weeks ago. I think Consumer Reports owes us an explanation why their results can be so different than J.D. Power’s results.
Respectfully,
Eric M. Vest
Posted by: Eric M. Vest on April 14, 2006 8:04 AM
First I would like to touch on that parking brake placement issue. I understand the functional advantage of console placement but in reality...it makes more sense to keep it on the floor. The space on the console is valuable space for storage nooks and cup holders that way more people care about than the parking brake that they NEVER use unless they live in San Francisco. I admit that I never use a parking brake and never need it. As for wheels....that is something GM could really capitalize on. Good looking wheels don't cost much more than ugly ones. Absolutely any car can look slick if the wheels are nice enough. Make it a priority to put good looking wheels on every car across the board and watch these cars get noticed and admired...then bought. What a simple thng to boost market share.
Posted by: MIke McCollum on April 14, 2006 8:22 AM
Good speech. Glad to see good numbers out there. While GM does need to increase that MPG on the SUV models I think it wouldn't kill the oil companies to lower the prices a bit. I can agree with others that there's too much Saturn talk ups than really neccisary.As Die hard GM as I am I can't get excited about new trendy Saturns out there. I wish Bob Lutz would talk up the rest of the U.S. GM manufacturing companies like Saturn. I'm sure Pontiac and Buick have upcoming models I can get excited about.When will you post about the GTO plans for 09.
Posted by: Brian Ripple on April 14, 2006 9:00 AM
Bob,
What you said is great and im with you 100%, but it really doesn't do any good, to just post it on this site and that it. The avg person is never going to see this site or what you wrote. You have to get in contact with the media and RAM it down there throats. If that means going on TV,radio, whatever then you have to do that. Im sick of hearing all the false garbage about GM, its time for you to kick down that door and let people know the truth.
-Frank
Posted by: Frank on April 14, 2006 9:40 AM
Keep doing what you're doing. We are pround owners of a 2004 GTO and two years later, we couldn't be happier. Thank you, Mr Lutz.
Posted by: Charles on April 14, 2006 9:57 AM
OK, where are the products for Pontiac? You remember, GM's "excitement" division? The Solstice is a hit, but the G6 does not ooze performance or excitement (and the new G6 GXP is downright ugly/gaudy). The Bonneville is gone. GTO is going away. The Grand Prix GXP would be a much better car with new styling, a better interior, and a modern RWD platform. A rebadged Toyota (Vibe), a rebadged Cobalt (G4/G5), a rebadged corporate minivan (Montana SV6) and rebadged Equinox (Torrent) do not yield excitement or performance.
It's a shame that Pontiac, which is GM's third-largest seller in terms of unit volume, has received so little new product in the last 6 years. When will Pontiac get vehicles which bring excitement and performance back to the marque? You need a new RWD Grand Prix, a new RWD GTO (don't make it too retro), make the G6 offer AWD, and have entry-level RWD coupes and sedans. With effective marketing (another problem for Pontiac), they would sell...
Oh, and don't forget about your dealer network. You would be VERY SURPRISED if you "secret-shopped" warranty repairs outside of Michigan - GM's dealer service is pretty awful. Lastly, and I've been saying this for 2+ years now - if you want to get people to consider GM cars again - MAKE THE WARRANTIES LONGER! A 5/60 or even 4/48 warranty, without increasing the MSRP, would go a long way to get folks to consider a GM car. It's putting your money/warranty where your mouth is, and standing behind your products.
--Robert
P.S. Thanks for bringing the Monaro to our shores as the GTO. It's the best car I've ever owned.
Posted by: Robert Hammen on April 14, 2006 10:50 AM
Great speech.
I totally agree with Bob.
Posted by: Ronen on April 14, 2006 10:57 AM
Dear Mr. Lutz,
Great speech! It's time for you and Mr. Wagoner to do some TV spots showcasing your new vehicles. You wouldn't have to say very much, just repeat some of the hard facts you've mentioned in your speech, show the cars and invite people into the showroom to decide for themselves. I believe that GM is beginning a product renaissance - why not get out there and beat the drums? Politics be d---ed, you guys have a company to save!
Posted by: Rick Sand on April 14, 2006 11:26 AM
Right on Lutz!
I am so glad GM has finally decided to fight the naysayers and negatively biased media head on. (Come to mention it, I used to be one myself. Ooops.) :o :)
However when Rick finally came public a few days ago on 60 Minutes, I saw that the turnaround point had already been reached.
And now you have said exactly what has to be said to set the record straight. Bravo. And well done.
GM is alive and well!
GM definitely has the right team running the ship. Keep up the good work.
Go get 'em tiger!
Posted by: jamie on April 14, 2006 12:43 PM
I really enjoyed reading your speech, and I'm just as sick as the next person to see that most of America follows the "herd" and only purchases what the media tells them too. I am a proud owner of a 2005 GTO and 2006 SS Cobalt. Although both have had their minor problems (what doesn't) I will always be a loyal customer to the GM family.
Posted by: Debbie on April 14, 2006 2:50 PM
>First I would like to touch on that parking brake placement issue. I understand the functional advantage of console placement but in reality...it makes more sense to keep it on the floor. The space on the console is valuable space for storage nooks and cup holders that way more people care about than the parking brake that they NEVER use unless they live in San Francisco. I admit that I never use a parking brake and never need it.
The Parking Brake is meant to be used everytime you park the car, not just on steep hills. You feel how the car rocks after putting it in park? Thats the transmission pulling, it isn't good for your car. The Parking Brake is supposed to be used all the time.
Having it on the console makes it easier to use and notice. All the imports have it on their console without taking up much space. It belongs on the console to make it easier to use.
Posted by: SteveG on April 14, 2006 4:26 PM
Great speech Bob. Keep it up.
American competition scares the foreign auto companies.
Wall Street hasn't figured out what GM enthusiasts already know. GM products make GM the world champion, backed by GM enthusiasts. GM have the leverage!
How about a speech on the 'recognized' credit rating agencies? GM should seek injunctive relief from the monopolistic anti-competitive credit rating agencies; the current Court would probably back GM. The credit rating industy needs some reform, don't you think?
Posted by: Edwin on April 14, 2006 9:56 PM
Mr Lutz,
While I do believe the quality is improving across the GM line, there is still a ways to go before you can stand toe-to-toe with the Japanese and European makers.
The well being of GM is tightly linked to the success of the US economy and I for patriotic reasons alone am pleased to see the turn around of the GM line in the last few years.
I grew up in a family who have always owned GM cars...still do. My first car was a GM product, a Pontiac to be exact, but that one experience ensured I was not going to be a second-generation GM owner ever again. The car fell apart in many ways before 100,000 miles despite my best attempts and proper maintenance. I know own a German car which runs better and is more reliable at 130,000+ miles than my Pontiac was at 50,000.
The material quality is the key to ending the stereotype and I don't know if GM is quite there. I attended a drive event hosted by Cadillac where I drove a CTS-V against a BMW M3. While the Caddy was a total hoot to drive, things like poor quality of the dash palstics, the interior lay out and the massive diameter of the steering wheel greatyly detracted from what is a great car. Knowing know about the failing rear differentials in the GTO and CTS-V again dim the shining image I had of the car.
You are very close. Don't loose sight of the details. The Japaneese and European makers are in reach!
One closing thought...Don't forget the enthusiast market who can't afford a CTS-V. Fun, rear-wheel drive sedans (or even a WAGON!) with a manual transmission would be fantastic!
Posted by: Nathan on April 15, 2006 10:41 AM
That is a great speech, keep them coming.
I'm up at the tech-center in Warren on a semi-regular basis and the people there have 100% faith in your ability to get the job done. I've never seen so much buzz and excitement in a workforce about their products and what contributions they can (personally) make to differentiate GM... and help move the company in the right direction.
I've always loved 'a certain few' GM products... but now I can honestly say I'm loving at least one (or more) in every brand.
Design does make a difference to the American people- why DCX is growing (gotta love that 300C)!... & the validation is there for GM w/ Corvette, Solstice & Sky selling out.
Keep up the good work!
Posted by: Cindy on April 15, 2006 12:02 PM
Bob,
Just a few more thoughts. Your speech gives people all the more reason to admire your leadership and to think higly of GM. Its ok to say you're a great American. GM enthusiasts are no doubt excited GM is responding to the bullies. Responding with products is one way. But why not take them on in court?
GM did its part after 9/11, and Washington abandoned US business and the airlines. There is no reason for GM's benefit funs to shoulder the additional burden of a drop in the stock market after a war time attack. Where are the Patroits in Washington?
Since 9/11 there has been much discussion of new oversight of Credit rating agencies, proposals include HR 2990 the Credit rating Agency Duopoly Relief ACT of 2005.
http://www.afponline.org/pub/pr/pr_20050629_kaitz.html
McGraw Hill which owns Standard & Poors now owns JD POWER which rates autos. This is clearly a conflict of interest, it gives GM and the US auto industry at least one cause to seek declaratory and injunctive relief from credit rating.
Perhaps GM has not considered its options thoroughly. States could even enter the credit rating business as a government agency that is a 'market participant' and thereby meets the Market Participant exemption to the dormant Commerce Clause. There may be dormant commerce clause loopholes for GM. Michigan for example could grant GM a credit rating. A State as a market participant under the Commerce Clause exemption might even be able claim it has recognition status as a matter of right under the Constitution. The Court could revisit whether having a few recognized credit rating agencies with 'so much of the government's intrinsic powers vested in them' is in fact an unconstitutionally vague conveyance for Congress to make. The types economic conditions faced by GM and the US auto industry are exceptionally unique enough to make these types of claims and prevail. America is at war, the stock market and energy prices are not stable, the Court can justify intervention. Congress cannot simply write away constitutual duties either, the Court stuck down the line item Veto Act in 1998 for example. Many of these economic and constitutional questions have not been properly presented to the Court. The Court may find such broad conveyances to be vague and violative of GM's due process, or it may find these to be undelegable powers with insufficient checks and balances. These types of cases have public policy appeal for the Court.
GM should start to assert its Constitutioal rights to do business in the US as much as it would in a foreign land as unbelievable as it may sound.
One suggestion is for GM to look at using a legal device called the Qui Tam Writ to compel the government through a Judge to enforce trade laws once the admistrative remedy is exhausted. Some think its plausible. [(Qui tam pro domino rege quam pro se ipso," ("Who sues on behalf of the King, as well as for Himself")].
Some economists like the two tier exchange rate idea to boost US exports. GM could offer to keep US jobs if the Congress, the Treasuruy and/or the Fed would implement such a policy in response to trade problems.
These are pro-active suggestions, people would admire GM for taking a stand.
Posted by: Edwin on April 15, 2006 1:37 PM
Mr. Lutz: Great speech, really liked the story of the old man and his son. GM has a similar situation with the Buick division. Everyone says to dump it and only old people buy their cars, and so on.
Luckily you did not listen to them and had the Lacrosse redone in the middle of the redesign and it has been doing well. The Lucerne that you were involved from the start is doing very well as you point out. You will have another winner in the Enclave, what a beautiful vehicle and with all of the function missing in most of its competitors.
It is time to get really serious.
The EFIJY concept car from Holden is the car that will change Buick’s customer perception in the U.S. market.
How is this for a TV advertisement?
Show the EFIJY driving down a country road coming toward the camera car going the other way, when the driver of the camera car sees the EFIJY, they do a quick “U” turn to follow it. After a short drive the EFIJY stops at a country store, when the driver gets out the camera car driver asks “What is the name of that car?”
The EFIJY driver responds “What do you think it should be called?” calmly gives them a piece of paper and walks into the store.
The camera then pans back and a voice over explains that GM is having a contest to name this “Mystery Car” with the winner(s) getting one of the cars.
The EFIJY driver returns from the store and says to the camera car driver to just fill out that form or go to a GM website and fill one out and send it to GM.
This would create a huge media buzz about this “Mystery Car” and the EFIJY obviously does need a name.
This is a “must do”; just like the old man in the story – pay no attention to the critics, this will work.
The EFIJY is a stunningly beautiful car and is based on the Corvette chassis – what a combination; fantastic styling on the best performance chassis in the world. This car will have a 5 year waiting list to buy it the day after GM announces production – guaranteed. I say this because to maintain that kind of build quality, GM should only make 10,000 to 20,000 a year and the price would be over $40,000, it should also make most of the cars to “order”. The Lansing craft center is available or you could make them at the Corvette plant, either way – just build it.
The Buick line would be enhanced with the Velite in Hard Top Coupe and Hard Top Convertible models, which when potential EFIJY customers drove it would buy one. Hopefully in addition to an EFIJY.
A new Buick Electra would be offered on the new RWD Zeta chassis with interior appointments like the Enclave and would be offered in an AWD model.
The new Lacrosse would be have crisp luxurious lines and take interior styling from the Chinese market one and would offer a different exterior than either current model. It would also have a GS model with a 5.3L V8.
The new Buick Rendezvous would be a “Tall Wagon” version of the Enclave with a 7-passenger AWD model to compete with the Outback and Freestyle.
A new Rainier Crew Cab pickup similar to the Honda Ridgeline would be derived from the Enclave.
Finally a Buick Special model would be made from a short wheelbase Enclave (108”) with a 5-passenger capacity.
A new Terazza Van may also be made if the market demand is there.
Start by showing the EFIJY at the LA Show and be prepared for a response every bit a positive as the new Camaro.
Remember the EFIJY is not a “pretender” it is the real deal, and that is what will make it a monumental success.
Can’t tell you how inspirational it is to have someone with your vision and guts to tell it like it is in the auto industry, thanks again for your time.
Posted by: Rick Lupori on April 15, 2006 7:18 PM
Bob,
Many of your customers are passionate about GM products, but there alot of us who would like to purchase a new version of one of the great vehicles that GM cancelled while focusing on producing too many trucks and suvs.
Leverage your heritage, it would be much cheaper advertising tried and true brand names than something totally new. Think of all the free advertising a new Buick Grand National or Chevy Bel Air would get on the various car magazine covers. Brand name recognition is very expensive to build, that is why GM's current renaming of models is flawed. One of GM's greatest strength's is being ignored.
The kappa platform could be a game changer with the right strategy. Start building some with plastic panels, higher volumes could be achieved this way. Build a Nomad off the platform, it wouldnt hurt HHR sales. A mid-engine kappa coupe would again be GM's best selling sports car.
Bob, I know you read these posts, but have you taken a look at any resumes lately?
Posted by: gtjeff on April 15, 2006 10:33 PM
Bob,
Brilliantly stated. It's about time these facts were heard. Small problem though, as I have said in the past you are preaching to the choir here. Many of us already know much of this but the public at large does not, blindsided as it is by the negativists many of whom have a vested stake in seeing you fail if for no other reason than proving themselves right at something.
So take the salient points of your speech, starting with a simple introductory paragraph preceding the paragraph that starts "Why? Let me give you a few examples of what some..." - and start posting them in major print media outlets.
I would put this piece in The NY Times, LA Times, Washington Post, Time, Newsweek, Businessweek, The Wall Street Journal, Forbes, and Fortune. Run it once a week continously for six months updating them continuously.
THEN the word will get out to the people you need to reach. We already know enough to believe you. That's why we are here. Again, it's time to go reach the ones who are unaware of a single word of what you spoke about and who have never heard of this blog. Those are the people you need to reach.
Keep up the great work.
Posted by: Bwright on April 17, 2006 10:19 AM
I too am a 'Boomer', I have always had GM for the most part thru my 45 years of driving, but has I near retirement I look at what I have now and what is coming and I dont know..Its kinda funny that what I have im my garage for the most part are GM cars, trucks that you cannot get anymore.. An old Nova SS396, and old camaro z-28, and old 2 door Tahoe Sport, and a newer Monte Carlo. Except for the MC which could be next, I guess GM will keep making whatever they want to make, but I know in my heart you could bring excitement back and make it affordable again if you really wanted too.. But now all it really comes down too is the bottom line -- dollars/numbers. Too bad.
Posted by: BRE on April 17, 2006 1:45 PM
Excellent speech that I hope is executed well. My parents had nothing but Chevy vehicles and my family has been Pontiac loyal until we bought a Toyota minivan last year. Why? You have some "hits" but overall the vehicles are boring and your market share slide shows it. Not only are they boring, they are largely old technology- push rod engines, four speed transmissions, large gaps in assembly, cheap interiors etc.
Give me an OHV V6 with 250+ horses, a five, six or CVT tranny and a sexy body and I'll come back. Keep giving me warmed over Montana type minivans and car rental quality Grand Prixs and lose me forever. I hated to buy foreign but I need more than a patriotic cheer to bring me back. (By the way, my Toyota has been to the shop multiple times so they certainly do not have the market sewed up by any measure.)
Posted by: Steve on April 17, 2006 9:00 PM
I concur with a statement made earlier regarding the quality of service and the dealer experience in general. The dealer experience in Michigan is OK, but if you say in Tennessee it is absolutely terrible. People don't realize that the Dealer is no General Motors, they think they are part of the company. Either way the whole dealer experience outside Saturn is absolutely killing public perception of General Motors. Our cars are great and improving, but generally the dealers only hurt the public perception.
Posted by: Robert Wilson on April 18, 2006 10:43 AM
GM makes cars other people might want to buy.
But they don't make cars that I want to buy: A small, fuel efficient, four-door hatchback.
Which is why my next car will be a Honda Fit or VW Golf TDI.
Because 34mpg out of an Aveo is not good gas mileage.
Good luck with that full-size SUV plan, though. I think you'll need it.
Posted by: Paul on April 18, 2006 4:39 PM
Bob, I hear you talking about being careful to not consider Toyota an American company, and I agree with you. Then I read that GM is considering importing Opels and calling them Saturns. I buy American cars to employ American workers and engineers. However, I suspect the American economy benefits more when I buy a Toyota made in America vs. an Opel made in Germany. Help me understand your logic.
Posted by: Doug Hoffman on April 20, 2006 1:45 AM
Mr. Lutz -
You said "Now, the industry is rapidly entering a new chapter marked by global competition."
I disagree. To be blunt, GM has been a bit lazy (as has Ford). You have too many brands and models which overlap, and GM has been slow to act. I suggest to you that global competition has been around for at least three decades. It's not a new chapter. It's an entirely new book.
To prove my point, GM is putting hybrid engines in Chevy Tahoe's in the year 2006. The Chevy Cobalt should have had this option two years ago on launch.
If GM wants to beat the competition, GM has to take risks. GM has not, and now finds itself, again, trying to catch up.
Posted by: Joseph Allen on April 21, 2006 12:43 PM
In response to Paul, 4/18's entry: "GM makes cars other people might want to buy. But they don't make cars that I want to buy: A small, fuel efficient, four-door hatchback. Which is why my next car will be a Honda Fit or VW Golf TDI. Because 34mpg out of an Aveo is not good gas mileage. Good luck with that full-size SUV plan, though. I think you'll need it."
Wait a sec. How can 34 mpg NOT be a good car with great gas mileage per gallon???
Also, are you just looking for a subcompact 4-dr vehicle???
What about a Pontiac Vibe? Or a Saturn ION sedan? Or for adventurists, a Saab 9-3 Sportcombi?
www.gmbuypower.com - I think you need to do some more research.
jrp
Posted by: Joel on April 21, 2006 2:15 PM
If mileage is important, why did GM ditch the 1.9L Saturn engine. It got 40mpg with a manual transmission. I know I had one.
Posted by: Tim on April 22, 2006 2:14 AM
Mr. Lutz,
I read the article about you talking to the Swiss American Chamber of Commerence and I noticed two things that bother me. You are correct that GM is working on their financial problems and the new products are much better than previous launches. However, the major thing plaguing GM is not just the model mix but the amount of vehicles you have competing against themselves and the refusal to pull a model when it's losing money.
Look at the full size truck market for example you have GMC and Chevy competing against each other. Let's face it the two trucks are basically the same except for the option packages. The are built on the same platform, same line, and by the same workers. GM must stop competing against themselves if they want to gain control of the market again. Look at your competitors, especially the foriegn competition. They make one style for each market segment.
Secondly GM must be faster to yank vehicles that are not selling. Two prime examples are the Aztek and the SSR. Both lacked sells and customer enthusasium within the first year. To make matters worse sells dropped year after year. Yet, GM refused to pull them until several years later. GM needs to admit their design mistakes earlier. Nobody is going to complain about GM stopping production of models that don't sell; we will complain when you refuse to admit the vehicle is a flop.
The last part of your speach that concerned me was the story about the hot dog seller. I realize you applied it to the naysayeers but it also comes across that you are no longer listening to kids. If that is the case than Mr. Lutz GM will never get out of it's current situation. The kids are your future buyers and help influence the cars their parents buy, for them and for the family. I'm a prime example. I love muscle cars and have ever since I was little. Last year I finally had enough money to buy a "fun car." One that is meant to drive on sunny and warm days and is just fun to drive and be seen in. GM did not produce any of those cars at the time other than a vette. Since I was little I love the Mustang and the Camaro. But since you decided to get out of that market I bought a Mustang GT convertible. Trust me there are lots of kids out there that will already have set in their mind what they want when they are able to drive.
The last issue plaguing GM is the fact that they are several years behind the market. Until model year 06, GM did not have a convertible within a reasonible price range. The convertible market has been booming for the past several years. Now I admit that the Solstic is nice looking but I want a car that not only looks fast but has a engine in it to make it go fast. I've seen the Sky and I can only hope that you have learned that the American public likes cars that look good and can go fast. The other hot trend right now is retro inspired muscle cars. It started with the Mustangs and has continued with the Charger and yet nothing from GM. I realize there are plans to come out with a new Camaro but they are only plans. The earliest you could release the new Camaro would be 2008. Thats 3 years later than the Mustang and by then Dodge will have launched the Challenger. Also GM did not take the retro styling far enough. It's a nice looking car but it doesn't automatically remind me of the 60s or 70s version. Those are the style that we the American public is intrested in. It is that era that reminds us of when America was at its peak and stood as the leader in the automotive industry.
Posted by: Trheel75 on April 25, 2006 5:49 PM
I have reluctantly purchased a Honda and Toyota. I think, right now, that the Sienna and CRV are at or near the top in there categories. I have served in Iraq and am proud of my country. I just did not want to have to pay for extended repairs and a vehicle that I felt was not going to last. I don't know too much about vehicles. I subscribe to Consumer Reports and check other reporting type information. I will consider purchasing from GM or Ford in the future. I like the Solstice - am not in the market for it right now.
Have a good day. Thanks for your blog.
Paul
Posted by: Paul on May 1, 2006 4:01 PM
