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BusinessRick Wagoner on 'Face on the Nation'

CEO Rick Wagoner
Rick Wagoner

This Sunday, April 9, at 10:30 a.m. EDT (check local listings), CBS News Chief Washington Correspondent Bob Schieffer will interview GM CEO Rick Wagoner on "Face The Nation." We thought many of you participants in the FastLane might be interested in watching the segment, which will likely focus on GM's turnaround efforts.


Posted by Editor on April 7, 2006 3:11 PM

Comments

Give um hell Rick!

Posted by: Frank on April 7, 2006 4:41 PM

Face the Nation has a more affluent, educated viewership.

Talk about Cadillac, and Buick. Show the Enclave and Velite.

Talk about Buick outselling Acura, Infiniti, and other makes.

Posted by: josh on April 7, 2006 10:31 PM

Talk about your soon to come future models(not specifics, but in general). GM is a car company, and people want to here about the product! Not only that it may stave off people from buying into the competition.

Also talk about the fantastic sales incentive GM now has; the low sticker price which is coming along well.

Posted by: getalifeagain on April 8, 2006 1:34 AM

Rick
I hope you have some answers about the UAW and the jobs bank program.I want to buy a GM vehicle but neither myself or my family will subsidize someone not to work
and continue funding a socialist entitlement mindset

Posted by: Jason on April 8, 2006 11:06 AM

Hey Jason , If you won't subsidze A "socialist entitlement mindset", how about supporting a company who lives up to their end of the bargain, like GM (btw, I don't work for them, but own 4 of their vehicles) A deal is a deal, and at least they are holding up their end of the deal, unlike the crooks at Enron.

Posted by: John C on April 8, 2006 12:28 PM

You cannot let up now. Any deal that does not diminish/abolish the UAW is a bad deal. You have to be allowed real flexibility in business.
Keep at it. Be bold.
Give Lutz the money and support he needs to make cars (that includes promoting the car guys at GM to run the show, and demoting the finance/accounting guys).

Posted by: Juan on April 8, 2006 12:53 PM

Rick,

I agree with Josh above. I plan to watch Sunday. You have a lot to be proud of. Talk about Cadillac's future and Buick being the new Lexus, and Buick outselling Acura and Infiniti. Mention the Buick Lucerne. Tell them how GM V-6 and V-8 engines have better fuel economy than the foreign competition.

GM can leverage profits and lower SUV sales with luxury sedan sales.

Talk about Cadillac selling more cars over 40K and how Cadillac has 3 models in the top ten sellers.

Give the media some red meat, tell them your dissapointed with the leadership in Washington because we sure are, and you'll make front page news. American companies have a right to be disappointed with Congress for not shoring up pension and benefit funds after 9/11. GM did its part with Keep America Rolling. Tell them GM and many American companies including the Airlines would already be profitable if Congress had shored up US pension and Benefit funds. Tell them how GM supports the troops and builds Hummers for the Military. Don't take any flack. GM supports America. Remind them of GM philanthropy and the taxes that GM and its workers pay all across America.

Don't let bad mouth your workers, stand up for GM employees. Tell them how you and your customers believe GM makes the best products in the world. Don't take the flack for giving generous benefits over the years, Toyota has stand by workers, pays high wages in Japan, and takes profits out of the US. Toyota also pays very low wages, reportedly Toyota pays $40/month at their engine factory in Indonesia. Don't let them tell you Toyota is poised to be number one. Toyota gets beat in every market where they compete with the American auto companies.

I would really like to hear if GM will challenge the credit rating agencies as anti-competive, a violation of GM's due process, and a violation of separation of powers. Does GM support the Duopoly Relief Act deregulating the recognices credit ratings agencies? JD Power is owned by the same company that owns S&P, that is a conflict of interest and anti-competitive. Why doesn't GM seek injunctive relief from the credit agencies? GM has a case. This Cout upholds separation of powers issues, it struck down the Line Item Veto Act in 1998. This Court doesn't like undelegable powers and it probably would back a GM challenge to the recognized credit rating agencies. This is the kind of action that would shift the heat off GM to Washington where the blame belongs.

Give them an ear full on US trade policy.

Then later in the week get an interview with Lou Dobbs and give it to them again.

Posted by: Edwin on April 8, 2006 12:57 PM

Here are some for GM soulutions:

1)GM must eliminate post-retirement health benefit for all employees. Let medicare take care of the exepense. It is bad enought that we don't have nationl health care like other countries, but to pay for what the government pays is stupid.

2)GM should replace the health care for all current employees to a HSA system. Both GM and government is responsiable for insane health cost in this country by providing all you can eat no cost health benefit. No incentive to shop for cost or use service only when needed.

3)Same as US government which changed retirement age to 67 (even when they had promissed age 65), GM should be allowed to change it's retirement age as people live longer. Or they should switch from defined benefit plan to a defined contribution plan. They can provide a performance based bonus plan that is funded by a % of profit. This way, hourly workers have a incentive to work harder.

4)Although I do not think that they can make this change on thier own, it is worth pointing out. It is illegal for companies to get together and fix price. However, it is not illegal for workers to get together and fix their wages. The last time I checked this was a capitalist country where free market prevailed and prospered. Unions should be dismantled.

5)Cut the dividend to zero. GM should not be paying any dividend until it returns to profitability. And then only a small amount similar to japanese compnies. I know that some of you long think that the stock will fall by this, but not if the other actions are also announced at the same time.

6)Buy back its debt from market. This is a no brainier. 30% profit and elimination of 7-8% annual interest.

7)Eliminate Job bank ASAP. Let them collect state unemployment until they find another job.

8)Build a Toyota Camery killer. And better car design such as some of the newer cars they now have on market.

Posted by: David Youness on April 8, 2006 3:15 PM

I am glad to see Rick making more public appearances.

This helps reassure potential customers that GM is still alive and kicking, and plans to be in business for a long time to come.

Posted by: jamie on April 8, 2006 3:16 PM

I hope the topic stays on the product, both present and future, and not the company's problems with the UAW. The media has already scrutinized and picked to pieces GM's infrastructure and labor problems, while what people should be interested in is the cars. As one of the only two remaining American car companies (Chrysler really no longer counts) I would think people would want the company to succeed and flourish, and take a good look at their products, not their union negotiations.

Posted by: Ted Thomas on April 8, 2006 3:28 PM

Rick, I'll be watching but you're going to have to resell me on your quality. Most of my life I only bought GM cars. I haven't bought one in probably a dozen years because of poor quality. My 3 siblings have jumped ship for the same reasons.

Posted by: ross mckee on April 8, 2006 6:10 PM

thanks for the fill in!

Posted by: brian on April 8, 2006 7:58 PM

Dear Mr. Wagoner --

I am looking forward to it!!

As I always keep saying --
Hang In There!

This is a great opportunity for you to demonstrate your passion and commitment to turning GM around.

Best of Luck !!!

I'll be back and I know you will too.

Ethel O

Posted by: Ethel O on April 8, 2006 8:18 PM

I second Jason's point of view.

I would like to see GM do whatever possible to dissmantle the UAW completely. I have grown tired of hearing them complain. I do believe there are situations where unions have their place (teachers, police and fire), but not in the car business.

Rick, I will be watching. So, please give me a good reason to buy a GM product again. Don't tell me price, don't give me fuel economy numbers (which really aren't that great anyway), and for God's sake don't tell me your quality is great simply because JD Powers says so - that's the last place I look for my car ratings. I read Car & Driver, Road & Track, and Consumer Reports.

If you have cars in the pipeline which will come out on top in those magazines, that's what I'll be listening for.

Posted by: Joe on April 8, 2006 8:34 PM

Jason makes an excellent point, and I feel the same way. I've driven GM all my life - same with my dad & 2 brothers.

However, I'm not going to subsidize Job Banks & retirees.

Posted by: Buick Diesel on April 8, 2006 9:36 PM

Mr. Wagoner: Please stress that GM is a company of 325,000 hard working employees who are no different than the viewers, that they have real families and concerns just like everyone watching. They are NOT looking for a handout or an easy job and work as hard as anyone to earn their wages.

GM is not a faceless corporation of high paid managers who care nothing about the country or the environment. Detail the billions of dollars GM still pays in health care benefits, billions that if not provided by GM will have to come from somewhere. Remind them that if this “cushion” of money would go away that the health care industry would be different, and that every health care recipient could be adversely affected.

Point out the millions (billions?) of dollars that GM donates to charities not just in the U.S. but around the world.

Remind the panelists that a company the size of GM has ever gone bankrupt and that no one knows the affect it would have on the U.S. economy. My guess is that nothing good will come of over 2 million employees either losing a job at GM, a GM pension or their job at a supplier or local business near a closed GM plant. On top of this every community of a closed GM plant will lose billions of dollars in future tax revenue. The many critics who have the “perception” this would be a great idea will be nowhere to be found if “in reality” things turn out badly.

Explain that GM has the 3 highest quality manufacturing plants in North America, and that it has more top rated vehicles on the JD Power quality survey than any other manufacturer.

Take issue with that misconception that GM does not offer fuel efficient vehicles or that it has no interest in hybrid technology. Quantify the benefits of the GM Hybrid buses in service. Illustrate the benefits of the upcoming VUE, Tahoe and Malibu hybrids. Explain how advanced the new SAAB BioPower hybrid is and while running on E-100 produces no petroleum emissions and that GM has been offering E-85 capable vehicles for many years.

Elaborate on the gasoline Direct Injection engines used in Europe and the one in the Solstice GXP and Sky Redline. Identify the progress that GM has made in Hydrogen Fuel Cells and that GM is serious about marketing them in 2010.

Talk about the sales success of GM models in other countries where GM vehicles hold their own and in many cases are market leaders. Make the point that when customers base their buying decision on reality instead of “perception” GM vehicles do well.

Sorry if this comes off a little strong, but I am tired of reading how many people would like to see GM fall. I have personally seen the devastation that large plant closings have on families and the communities they live in, and trust me there is not one good thing about it. The saddest part of it all is that these formerly employed workers were just doing their job the best they could, but in the end were the ones that paid the price.

Keep up the good work that you have been doing, I don’t think many people appreciate the hurdles that you have taken GM over this past year. I have not agreed with every move, but overall think you have made the tough decisions.

Get GM market share up and maybe GM can re-open plants due to sales demands. You can start by changing the perception the public has about GM by putting a friendly face on the company.

Posted by: Rick Lupori on April 8, 2006 10:39 PM

Recent reports claim 25% of the U.S. new car market will be hybrids within five years.

What is the GM forecast?

Posted by: Phil on April 8, 2006 10:58 PM

Please make sure to podcast the part where Wagoner promises that GM will start making more affordable cars that don't suck.

A GM car used to be something the average American could both afford AND be proud of. Please bring those days back.

Posted by: John on April 8, 2006 11:50 PM

Dear Mr. Lutz,
To get out of this slump, GM has to aim high. Look at the interior of a CL55 (or even the E-class). It may be a higher price, but it is an excellent example for Cadillac:
1.Coherent and liberal use of wood.
Wood doesn't have to be shiny to look plush. Semi-polished is even better. Just look at the CL55 or the new Aston Martin.
Lots of wood--not incoherent slivers here (like the STS with only two strips really) and there thrown in for good measure.
2. Clean and inviting dash board.
Very commanding.
3. Content, content, content.
Tilting and telescoping steering wheels etc.
Do things properly. Set a mark and surpass it.

Finally:
Ban the hard plastic! Period!
Do not try to resurrect it by "texturizing" or anything else. Just do NOT use it! Period!

Posted by: John on April 8, 2006 11:55 PM

This proves how disconnected blogs and the internet are from television. There are four comments here.

The Auto Blog businessweek.com/autos/autobeat/ has five people writing and they didn't have anything about this. There's a big disconnect between blogging and the blogs covering blogging and industry. After looking around the blogosphere I checked the news. Here's the top story.

Detroit Free Press - Apr 08 2:14 AM
"AUTOS: Dealers support GM's Wagoner"
"General Motors Corp. car dealers also threw their weight behind chief executive Rick Wagoner on Friday, days after the automaker's board of directors expressed a vote of confidence in him."

The Arizona Republic headline says, "GM's top executive soothes" "DETROIT - Asserting that he's the right man to lead General Motors Corp., Chief Executive Rick Wagoner said GM's recent accounting errors undergoing federal scrutiny have been an embarrassment and several people have been disciplined because of them."

The Enron troubles started with accounting errors. And nobody paying attention to the details.

Posted by: Jim Dermitt on April 9, 2006 7:44 AM

Well... if this isnt the coward looking the bully in the face...

GM needs to be more public about having good news, and it must be promoted... the only news now days about GM is financial woes...
the public must be weined off of that, and on to great product news... and its starting with products like the solstice, aura, z06, camaro, and GMT900 series... but people still need to be assured when they buy their GM vehicle GM is not going to crumble...

a good friend of mine had a cousin that was on the developement team for the interior of the previous generation sonata, and decided he had no future with that company and moved to honda. but both of them believed after hyundai introduced their 10 year warranty on such lack luster cars by 2010 hyundai would be bankrupt... now the company is growing astronmically, and it seems that their products are quality enough to afford the 10 year warranty and not break the bank... long story short... if you purchased a hyundai, 10 years later your warranty would still be there because the company was secure... do consumers feel that in 3 years 36k miles GM will still be alive?

Posted by: Tim Geisler on April 9, 2006 12:45 PM

Mr. Wagoner,

You recently amputated the patient's limb, and the patient is still not showing any signs of improvement. I'd say it's high time to let another doctor take care of the patient.

Posted by: john doe on April 9, 2006 5:00 PM

Rick,

Good interview on Face the Nation, keep doing TV interviews, they are more effective than print. We realize you are doing a good job with tough issues. Maybe we can persuade GM to be more active in the public policy arena. Let's hope the $ 8 Billion in cost cutting works. It didn't work for the US electronics industry. Remember. They went to Mexico and it didn't save them.

You mentioned a global economy? Consider many sacrificed for the cost cutting. How many more before GM seeks to change US Trade Policy? What has the current adminstration done for US companies besides left them with loads of debt for what should be Uncle Sam's health care bill? The updated CAFE rules is about the only thing GM has gotten and GM could have gotten that with whoever was in office.

Consider that it may be time for CEO's to call for a change in US trade policy and health care policy. I'm concerned that GM isn't speaking up. Why worry about a lame duck administration? There is no need for GM to be the yes men for the White House. The White House left GM high and dry just like they did the airline industry.

The Massachusetts health care bill is anti-US business, it only loads up US business with more debt, and punishes the middle class with penalties. The Canadian single payer plan is the best plan for America. If GM doesn't speak up, the wrong bill may get out of the starting gate.

The people are displeased with the leadership in Washington, it is a golden opportunity for GM to speak up on health care and US trade policy. There is no better time with a lame duck in office. GM's truck and SUV customers are hurting in this economy. The Luxury sedan buyers have plenty of money though.

Your loyal supporters behind you right now aren't going to buy cars with Chinese engines in them, especially with no level playing field for US exports in the world markets. Economists have suggested a two tier exchange rate to boost US exports, does GM support that?

Bob Sheifer suggested Presidnet Bush wants you to solve problems without help from Washington. Yet Washington abandoned US companies after 9/11 and left pension and benefit funds to struggle. What are you worried about a lame duck for? Change the spin in the press out there with some comments about Washington. GM needs to stand up and be heard before American companies are left all alone.

We'd be behind you even more if you spoke up for America.

If GM doesn't impact the public debate and chooses the usual silent corporate routine, people will continue to blame unions and GM management and misperceptions about GM will continue. A perception not denied is a perception believed. Don't fall prey to rumor, speak up. Just read some of misconceptions in the posts here about the UAW. GM can change the media spin, just start speaking up. People will respect GM more for speaking up.

Why not give Lou Dobbs an interview?

Posted by: Edwin on April 9, 2006 8:19 PM

Got to put the upcoming projects out on display for the media. Camaro, Tahoe, all new V8 midsize models. Grand prix, Monte carlo,and Impala. Make it look exciting

Posted by: Brian Ripple on April 9, 2006 9:04 PM

I don't think the answers lie in union-busting, or breaking contracts with employees and retirees. GM needs to get back to its core business of manufacturing quality, affordable, middle-and working-class cars and trucks.
I don't think it makes sense that every division has to have its own badge-enginered version of a luxury sedan, SUV, performance car and minivan, creating competition between those divisions, especially since it has meant abandoning the more affordable, or economy car market to foreign competition.
I strongly suggest all upper-level GM executives must read "Well Made in America," the story of the Harley-Davidson turnaround of the 1980s- and then implement the "Productivity Triad" concept, beginning at the very highest levels.
I'm just about to make a major vehicle purchase, and the things I'm most concerned about, after price and financing options, are quality, reliability, and maintenence costs- which means I'm going to be looking very hard at warranties.
I do understand you're trying, but I think you fail to see my point- why should I invest my hard-earned dollars if the warranty expires before the vehicle is paid off?

Posted by: William Lanteigne on April 9, 2006 9:48 PM

Rick, the average person really doesn't want to hear about GM's problems and how you are trying to solve them. It is depressing and doesn't sell cars. Tell us about the product and when it will merit favorable coverage in Motor Trend or Car & Driver. Do you ever read those magazines, Rick?

Posted by: Charles on April 10, 2006 12:04 AM

Look, he's breathing.

He is alive and arresting conceptions!!

Do another one Rick.

Oh and don't forget to smile, it shows you have things under control which you do...

And it makes you look younger and sharper.

Good Job.

Rick I can't wait to see your new product the anticipation is building, and the dreams are getting bigger, bolder and braver.

You did this. Do you remember when Japan tried to scare us when they were launching Acura, Lexus, infiniti and Amati (which didn't happen). Well now it's your turn. Lets build your brands.

The relaunch of Saturn, Buick and Pontiac should be seen as no less important and significant to the American automotive landscape so let's treat the re-launches of these brands as such.

Let's remodel and refresh the dealerships as well that will hold these new products like the Saturns and the new Efigy (Well I hope).


Posted by: Edward Hayes on April 10, 2006 12:18 AM

Dear Edwin,
You did not write this: "The Canadian single payer plan is the best plan for America."
Let me tell you, it doesn't even work for Canada.

About GM:
Nobody cares about JD Power, if they even know what it is. You need to make a car that can pass muster in the press: Car and Driver etc, like the guy above said.

Another person above (Rick Lupori) said that GM should start empahsizing its charity donations and it billions paid in healthcare.
Is GM a philantrophist? A charity like the Salvation Army? An insurance company?
Nothing that you spoke about has anything to do with CARS, which is GM's main problem. They need to focus on their product, and getting it right.

You said:
"Explain that GM has the 3 highest quality manufacturing plants in North America..."
Who cares? Is the customer buying the car plant? The product is what matters. It can be high quality and unappealing too. You have to make cars people like. Hard black plastic just does not cut it.

Then you said:
"Detail the billions of dollars GM still pays in health care benefits, billions that if not provided by GM will have to come from somewhere."
Again, the customer doesn't care about this. What will they do with this information? Feel sorry for GM and buy their sub-standard cars so that the company can continue to "pay healthcare benefits"? Let me just say this. The non-unionized workers in the car factories down south do not have such high wages, and they are doing just fine thank you.

Wagoner needed to do one thing:
Present a bold turnaround plan for the company that would convince investors that the status quo of intractable labor costs, inflexibility in the marketplace and uninspiring, low-achieveing product will be shattered forever. Wagoner is yet to do this, instead trying to hype timid, irrelevant reforms with the liberal use of vague words like "better" and "improving" etc.
Don't tell me your quality is "improving", give us a Korean-type warranty (10/100,000) and then people will take the plunge. Back up your words.
Everyone wants bold reforms and you keep doing the same thing you always do, hype more band-aid like E85. It's an interesting side-show, but the least of GM's problems (hybrid over-hype aside).
Your basic products--not to mention the luxury ones--do not measure up. What are you going to do about it?

Posted by: Louis on April 10, 2006 12:40 AM

A lot of great suggestions here, and maybe some could have helped my real-world situation. My wife drove a Toyota when I met her 15 yrs ago. Her family was all GM prior to that and her first car was a Cavalier. As a GM employee, I persuaded her for 10 yrs to get a GM car. She refused due to quality concerns, indicating that whenever what seemed like the slightest issue occurred, it required a massive amount of dollars to fix it and the problems were numerous. Other than preventative maintenance, the only extra money she spent on the Toyota was for a new paint job (had the car 12 yrs!). Finally was successfull in convincing her to get a 2000 Grand Prix (she loves the styling and the size is just right). She poured more money into preventative maintenance than anyone I know...also purchased an extended warranty. Well, at 52K miles and a couple months after the extended warranty expired, a new transmission ($3100) was required. As we're not in a position to take on a new car payment, she had it fixed and will keep the car for a couple more years. Needless to say, at that time, Toyota will receive her car purchase / maintenance dollars for the remainder of her lifetime...and unfortunately, they will continue to acquire the dollars from her family (whom I also tried to persuade to go back to GM). While I will continue to own GM, I have no leverage to persuade as it will be awhile before getting the egg off my face. Her old Toyota is now owned by her father...both he and the car are still going strong (well over 100K miles for both).
As for suggestions, the 10/100,000 would have kept her...the $3100 will pale in comparison to the money GM and their dealers will lose in purchases and preventative maintenance over her lifetime (and that of her family and a few converted friends).
Also, in situations like this, would be nice to receive something from GM indicating, "we're sorry you got 'screwed' at such low mileage and out of warranty...thanks for your business and continued care of your GM car...here's a little something (vouchers, etc...) to help ease the pain...please consider us and our push to improve quality for your next vehicle purchase"....or something like that. While I know it was likely dealer specific, she was always receiving 'free stuff' from her Toyota dealer that at least made her feel like they cared.

Posted by: I Tried on April 10, 2006 9:04 AM

A little-known detail of the health care crisis facing GM and other large Corporations is that customers with health insurance help subsidize services for those without coverage. Most medical providers have a two-tier cost structure: One cost that applies to people with medical coverage and another, much-lower cost for those who have to pay cash for the services.

I'm not sure why its even legal to charge different amounts to different people for the same services, but the practice is certainly routine and accepted.

GM needs to get the message out that it is not only providing health care coverage to hundreds of thousands of employees, retirees, and their families, but also subsidizing health care coverage for millions of others. This is a big part of the reason that health insurance premium costs far outpace the rate of inflation and threaten the solvency of Corporations throughout the USA.

Posted by: Big Picture Guy on April 10, 2006 10:25 AM

Because it does matter that we are keeping in power the people that are helping kill GM.Mangement is at fault also for allowing this to go on so long

Posted by: Jason on April 10, 2006 10:47 AM

Go Rick!

Posted by: email on April 10, 2006 11:42 AM

Would really like to view the program if that is possible. Missed it on Sunday. As for the vehicles, I want to be super supportive and yet I've had nothing but problems with my cars and the dealerships and the GM Customer Service. Makes it difficult to want to come back and buy my next vehicles from them. Maybe better care of customers, and more reliable vehicles instead of incentives would be helpful.

Posted by: Melanie on April 10, 2006 2:53 PM

Bravo!!!If there is one thing GM has lacked over the many decades is LEADERSHIP!Talking to the people about ya we have our problems but were gonna turn this around can only help.GM needs to develop a plan to recapture 10 more % of the U.S. car market.
Everybody has to be on page from the workers to management.1 Quality is LORD,KING,GOD!!!!!2Customer Service has got to be the INDUSTRY STANDARD!!!go the extra mile!!!You have made great strides in these areas talk about it in your commercials.Focusing on these two areas will greatly help you recapture market share.

Posted by: Stan on April 10, 2006 4:14 PM

Dear Mr. Wagoner,

Quiet on the response to this blog. A little surprising.

Anyway, I found the interview on Face the Nation interesting, but in some sense, parts of the interview appeared to be sort of an enigma as well.

I’ll catch up with you and Mr. Harris by snail mail soon.

As always, Hang In There ! Just simply, TurnAround. You know what I mean. Just give it a try.

Ethel O

Posted by: Ethel O on April 10, 2006 5:57 PM

Louis,

The Canadian Health care plan is best for America. Read the linked article "Health care and the Jobs Flight to Canada" "What's good for Canada is good for GM" for testimonials:

http://www.counterpunch.org/lindorff04192005.html

Business people in Canada say Canada's single payer Health Care system works, its better. Health Care has a vertical demand it does not fit the classical economic model, it requires government intervention to work.

Toyota also chose Canada for its new plant, the health care costs less.

Canada has run budget surpluses for several years.

Posted by: Edwin on April 10, 2006 6:33 PM

Rick didn't say anything special that I wasn't already expecting.... in other words, he was the perfect politician.

As long as he is in charge, GM will not succeed.

My co-worker has a '97 Pontiac Grand Prix GTP. He has always been a GM guy - untill now. At 98k miles, he's had over 5 grand worth of work in the car (owned since new). Stupid stuff, too - ranging from the fuse box melting due to an intermittent/arching ignition relay to the headlamp assembly cover poping off for no reason other than as he inspected it closely, there were only 4 little spots where glue was applied. He's fed up with the car, lack of quality, GM's lack of customer service, and the constant excuses he seems to get from any dealer he goes to..... "Well, the car does have almost a hundred thousand miles, so you can't expect it to be perfect".

Then he sees my 2000 Honda Prelude with 147,000 miles, running fine and not falling appart.

See, Rick, when you loose a customer due to bad quality or poor dealer experience, you can't get them back by promising better quality and better experience. You have to prove it. I mean, walk the walk. Make the warranties on every GM car and truck 10yrs/100,000 miles. Include free loaners while the vehicle is in for service. And if, by chance, people notice they don't have to use their warranty at all, word of mouth will spread and be a better sales tool than you or anyone else from the company.

Watching Rick on Face the Nation was like watching any Senator, repub or dem. They say exactly what their party wants to hear. Too afraid to come out and speak the bitter truth about anything.

Posted by: Joe on April 10, 2006 10:55 PM

WOW, After reading this blog, and some of the negative comments on the UAW and subsidizing the Socialist agenda...,I am beginning to see that the mega corporation mindset has been embraced by many of the fascist leaning bloggers completely. Let me see if I am understanding some of your opinions. You don't like the UAW because of the contracts and GM's cost associated with them. On that point I believe GM and the UAW do need to renegotiate AND WILL do so.
But like the immigration debate, (really the give a free pass to the Mexican deabte), those against the UAW say nothing about the Chinese government (not very well respected for being people freindly) or other government subsidized suppliers that the entire auto industry uses. The US spends our tax dollars on Defense at a rate that astounds even the most hawkish individual but will not help US businesses out with a federal Health Care and Pension plan. THOSE TWO things, along with the UAW and buy -in from the auto makers that will guarantee less outsourcing by giving tax breaks to companies who create jobs in the US, while taxing companies who take jobs out of the US (Bill Ford wants it as do the heads of most other first and second tier auto suppliers)will make the industry stronger. The rhetoric is easy to spew, and the governemtn loves it when you spew it. So for Jason and the rest of you so-called commie haters, (You may have been sucking your thumb during the cold war and don't realize the UAW's importance in making this country great)all I have to say is take those commie made shoes and clothes off and buy American.
As for GM, I have said this before. Get going on small cars. Daewoo and Opel may save you yet. As for Ford.. look where they are shifting their operations too. MEXICO.
So GM, whoever you are today, become an American Car company again, UAW get on track, and allow cities like Cleveland to compete for new factories, lower you goals for now, but make a concerted effort to get the Federal government to do what we pay them to do. (No, not send our troops anywhere, but to actually DEFEND our country.
Whew, alot of subject were tackled with that rambler, (which wasn't a bad car come to think of it)

Posted by: Jan Bayus on April 11, 2006 9:47 AM

Well it looks like some liberal nerves got pinched.The UAW and unions have been nothing but bloodsuckers for every host they have invaded.The sooner GM gets them on a leash the better.Go to www.thefutureoftheunion.com and you can see they are socialist by the links and articles.

Posted by: Jason on April 11, 2006 5:27 PM

I read a lot of comments here saying that GM should compete by building quality/reliability into their products. IMHO, that is a dangerous strategy and could put GM in a longer downward spiral. Why do I think so? Because GM's cost is higher and that is reality. I have heard number like $1500 per vehicle handicap to pay for retiree's pension. This is a cost that GM's Asian competitors don't carry. When competing for the mass car market, where people look for value and reliability, GM's competitor can simply produce the same car but sell it for $1500 less, or sell cars at the same price but use the extra money to make their cars more reliable by using more expensive parts. So, if GM competes based on value, quality or reliability, they are not going to win. They have to base their strategy on differentiation. There are plenty of boutique car brands (Mini for example) and they don't target the mass. GM can become a collective of brands, each brand targeting a specific niche auto market. GM can leverage on being an American automaker. Many customers will buy American even if quality lags, so give them an affordable American car (chevy). Hummber is a good example of a brand vehicle that pushes for an image instead of a vehicle. Cadillac, with an image closely tied to music/movie stars, is another good one. I think GM is executing toward this strategy looking at their recent product launches of flashier looking cars. So, there will alway be buyers looking for value or quality, and GM won't be their choice. However, there are other buyers, and GM might just be fine with them.

Posted by: shrek on April 11, 2006 5:30 PM

Go Rick! kick those imports cars, prove the people GM got better cars, WHAT IS GOOD FOR GM IS GOOD FOR AMERICA.
If you want to be a legal inmigrant you must buy a brand new domestic car.

Posted by: Alfredo P on April 13, 2006 1:48 AM

Talk about “perception” versus “reality”, would someone please get the Korean manufacturer’s warranty correct. This warranty is a 5 year 60,000 mile bumper to bumper one, just over half of what is presented as fact. The additional 5 years and 40,000 miles covers “selected engine and transmission/transaxle components” as it is presented on the company’s website on April 13, 2006.

Secondly, given the uncertainty with credit ratings and possible Delphi issues GM is in no position to increase costs on anything right now. GM has to improve its financial position across the board and there is little chance the warranties will drastically improve until some of these issues do.

While increasing warranties will help GM’s sales potential, any advantage can be erased by other manufacturers copying whatever GM does, resulting in a repeat of the non-stop incentive increases of the past few years.
This puts GM right back where it is today.

My point on GM having the 3 highest quality manufacturing plants in North America is that it proves that GM does produce quality products and to the buyer of the vehicles made at these plants that GM workers are capable of consistently producing a high quality product. Why not advertise that GM has more top rated vehicles on the JD Power quality survey than any other manufacturer. Watch TV over this weekend and you will see manufacturers who have won awards for far less advertising their accomplishments over and over.

As to detailing the billions of dollars GM still pays in health care benefits, GM needs to let the public know that it contributes more than any other manufacturer does to health care. Ask anyone who has been retired for over 5 years about how much their health care cost have risen and you will drastically revise your own retirement goals. Who is helping to pay for health care does matter to retired buyers right now.

Reminding the public that GM donates the amounts to charities that GM does, and has for decades promotes a positive perception of GM. Many companies do this and GM needs all of the positive press it can get.

Finally on product, GM’s new products (HHR, G6, Lucerne, Impala, Tahoe etc…) are selling very well and the new Enclave, Saturn lineup and upcoming Camaro will maintain this trend. GM does offer good products and has quite a few very interesting ones in the pipeline (Velite, GTO, RWD Buick and Chevy cars) as well as a few it could easily produce (EFIJY, Solstice Sedan, Firebird, etc…).

If GM can get the immediate financial issues put behind it this year and invest the capitol it generated into these new products, the future is bright for GM. I hope so because I do not want to be one of those places the billions of dollars GM use to pay in health care benefits has to come from.

Posted by: Rick Lupori on April 13, 2006 9:58 PM

First time user. I stummbled onto this site in hopes to somehow try to speak with someone like Rick Wagoner about some quality related issues with my GM vehicle. Any idea on how I might do this.

Posted by: shaine on October 15, 2006 11:27 PM

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