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Some Good News
By Bob Lutz
GM Vice Chairman
You’ve all heard me complain about quotes -- from analysts, industry experts and media -- whenever I believe these are based on conventional wisdom, or simply not in line with the new reality at GM, and I will continue to do that whenever I believe it is warranted. But … to give credit where credit is due, I have nothing to complain about when it comes to our recent product reviews.
Our new products are receiving very good to excellent reviews pretty much across the board, and I believe GM has started regaining credibility on the product front. And since 30% of our sales are now newly launched products, the news is starting to spread.
One recent piece of coverage I’d like to point out is this review of the Corvette Z06 from Autoextremist.com. As usual, it is a provocative piece of writing, but what about this quote: “The Corvette Z06 is simply the most seductive combination of power, speed, drivability, value and overall efficiency that exists in the world today. A high-performance super car for the real world, it is a milestone achievement that deserves recognition as much for its capabilities, as for the people behind it.”
In addition to the stellar reviews, our sales are beginning to reflect that car buyers may be getting the message and seeing the results of our efforts. Despite the recent rise in fuel prices and against industry trends, GM had an encouraging story for April with our increase in truck sales. This was driven by the strong performance of the all-new full-size sport utility vehicles and our full-size pickups.
Chevy Tahoe sales were up 35 percent in April, GMC Yukon posted a 36 percent sales gain, and Cadillac Escalade, one of our hottest new products in the market, improved dramatically, with a 127 percent improvement over last year. GM’s newest entries in the crossover category also contributed to the improvement in overall truck sales. Chevrolet HHR, Equinox and Pontiac Torrent all posted solid results. HHR had its best-ever sales month, with Equinox showing record April sales.
HUMMER set yet another sales record in April, with total sales up 236 percent. H3 continues to drive the brand’s record-setting pace and leads the entry luxury utility segment by a wide margin. Saturn posted a year-over-year sales gain of 14 percent with retail sales up 3 percent. Saturn Vue continued its sales momentum with its 11th consecutive month of year-over-year sales increases up 33 percent. And by the way, the new Saturn Sky sold its first 612 units in April. Demand for the all-new two-seat Sky roadster continues to outpace supply, with vehicles remaining on dealers’ lots an average of only 10 days.
The message that GM has more and more great looking products is starting to get through. The message that we lead in fuel economy in many segments is starting to be understood. The message that GM always has been and continues to be a leader in the development of life-saving technologies (think OnStar), comfort and convenience (think XM), and advanced technology (E85, 2-mode hybrids, fuel cell) is gaining traction.
Rest assured -- we know there’s plenty of road still to cover, and we won’t let up on our efforts. Believe me: it only gets better from here! More and better executed cars and trucks, with expressive design and super interiors, developed with a segment-winning mindset, and each with a strong and singular brand mission.
Posted by Lutz on May 4, 2006 2:53 PM
Comments
It's really a good news! When is the release of the Equinox with an OHC engine?
Posted by: onell annz on May 4, 2006 5:25 PM
Go get 'em, tiger!
Posted by: jamie on May 4, 2006 6:12 PM
Good news, now lets see you replace your old powertrains with new ones.
When will we see the 6 speed auto in the malibu and G6?
When will we see your DOHC V-6 engine replace all your pushrods?
When will you discover that most people do not like fake wood in their interiors? I see the Aura has gobs of it.
Why was the front end of the Aura dumbed down?
When will all your vehicles have grab handles?
When will all your vehicles have soft touch plastic on the dash?
When will you realize that the parking brake belongs on the console, not the floor?
When will all your vehicles, including the HHR have power window switches on the door arm rest, not the center console?
Why doesnt the shifter on the Impala have P-R-N-D-L on it, and why wasnt the person responsible for such idiocy still working for you?
When will you realize the electric steering stinks and remove it from all your vehicles? You left it off the Aura for a good reason-it stinks. Why is it still on the Malibu, G6, HHR, etc etc? Get rid of it!
We want to see world class efforts on all your vehicles, not just some of them. You can re-do them all at once, or at least refresh the interiors of the malibu, to name one, or else you will lose sales.
Don't dumb down Chevy in favor of Pontiac and Saturn-the Malibu is obviously a dumbed down version of the G6 and Aura.
You are at war, GM. Act like it.
Increase your warranties!
Posted by: SteveG on May 4, 2006 6:23 PM
Bob, I can't believe it was...
3 months ago and people were second guessing the man with the plan. Investments in the GMT900 did pay off and you and Rick were dead on. Despite skyrocketing gas prices these vehicles have had a smooth and ultrasuccessful introduction.
6 months ago they were calling the HHR a PT look alike coming late to a party that was just about over. You proved them wrong again.
12 months ago when Hummer sales were down many analysts were wondering why Hummer just doesn't close up shop. They thought the brand was on its way out despite the promise of the first Lutzonian Hummer H3. Well they couldn't be more wrong.
Are you seeing a patern here Bob? Find out what the media and popular opinion is saying and do the exact opposite and GM will continue to see unabashed success.
When they say Buick is not a luxury brand, let it roll with Hummer. The ultimate American luxury breed. Not redundant, afterthought brands, but big chrome American luxury classics.
When they say kill Buick, give it more life with its own Buick sign at the dealers and its own brand manager.
When they say retro is dead do another one, a '41 Buick Estate Wagon.
When they said GM doesn't make cars people want you shot the Aero X right through their heart.
You and Rick, you sat down and created a plan and that plan has come to be exactly as you said it would be. Do me a favor, next time you sit down to make a plan listen to the media and do exactly what I say, do the exact opposite.
Hay if this whole scenario continues that means Buick (and Pontiac) will be the hottest automaker soon.
One caveat, it can only happen if Rick and Bob believe it.
Still I believe in Rick and Bob.
Posted by: Edward Hayes on May 4, 2006 6:26 PM
With all the negative advertising GM (and Ford) get, you'd think they wouldn't have to advertise at all - all advertising is good advertising (NOT!).
They do though. Really to counter all the bad publicity and rhetoric they've received over the years. So it's not only a reason to advertise the new products, but to "bully pulpit" how well the vehicles they make are.
Posted by: getalifeagain on May 4, 2006 7:01 PM
Mr. Lutz,
GM will get better and better with your direction. Positive attitude can conquer all and you have much to be positive about. I would like to suggest two things Please make the Monte Carlo the desired sport luxury car it was in the second generation. Buick or Chevrolet need a true mid to large stationwagon. They can be functional and stylish like in the past, not the Dodge Magnum type wagon. Buick Statesman Estate sound great.
I continue to love my Impala.
Thank You,Keep up the great job
Posted by: John Burke on May 4, 2006 7:14 PM
Its awesome news to hear once again that GM is on top of their game and are making vehicles that people want, vehicles that are beating other brands not just in one segment but in many! Finally the message is getting out that GM makes best in class vehicles. Also that GM is moving forward with advanced technology. From this point GM can only move forward and I for one cant wait to see future products and technology. Oh, and come on CAMARO!
Posted by: Justin on May 4, 2006 8:09 PM
Can you talk about the Buick Velite? It's been 2 years since this beautiful car debuted and no one seems to know when it is coming out. There are thousands of us waiting to buy it !!!
Posted by: JG on May 4, 2006 9:31 PM
I see the great new products every day. The Lacross and the Lucerne are two of the best cars produced in years! They are Buicks inside and out. Great style, ride and value. Just make a signiture car for Buick. When you get hardcore critics like the dealer employees feeling that way, you have made a winner. Keep aiming at Lexus and Acura. You have the good stuff out there. Just get people to drive them.
Now, keep them fresh and up to date. Make people want a new one in 2-3 years. No one wants to trade in one car for another that looks the same except for the color. I am old enough to remember when cars changed every year, not every 8-9 years. We want to impress the neighbors and co-workers. Look at when market share started to drop. About the same time as the annual style change ended. Can you tell a 1998 Century from a 2005? I can't either. And I see them every day. So, keep them updated and make the products people want.
Pontiac needs some help now. The Solstice is good, but who designed the controls? It is not a candidate for me as an empty nester. Just too hard to reach everything. The G6 sedan is nice, but not inspiring. The coupe is a nice car, the drop top is beautiful. The Grand Prix is not a great car to drive. The ride is too harsh, but the interior is great. The GTO is the best car I have driven in years! A little blah on the outside, but you just have to drive one. A BMW with guts! I just wish we had the AWD version. Bring over more Holdens, make them Pontiacs and sell them like hotcakes.
GMC needs to be a better truck than Chevy. Nicer, fancier, faster. Old GMC owners remember when it was the better truck. Better engine, suspension, styling. Lets bring that back for real. The statements of "My grand dad had GMC's and swore they were the best" are repeated too often to not take advantage of. Retro is hot. Take it for the ride you can. Co-brand with a boat maker like Chris-craft to lure the high end people. Take all the exposure you can get.
Two years ago, we had the overnight test drives. Seemed to sell a lot of cars. Now we really need people to experience the "new products" we have. Use that again. Take the puppy home. The neighbors see it. Your co-workers see it and touch it. Now you can't take it back. I'll bet you wont take it back. We are making them that good now. The General is far from dead. Just need to get out there and win some battles again. We just got a little lazy. We now have real car guys running the ship. Get out of the way!!!
Posted by: kevinm on May 4, 2006 10:28 PM
Hello Bob,
You need to get your fingers into the "Sail" in China. It really needs updating. Last month I incorrectly said HRV & Excelle needed updating. Sorry, big mistake on my part.
Posted by: Rene Curry on May 4, 2006 11:22 PM
No matter how good you think you're doing you obviously should be doing better. market share is slipping isn't it?
You need to shoot for world class, not just OK.
The Cobalt is NOT world class.
The Malibu and G6 are NOT world class.
The HHR is successful so you'll probably let it rot for years without fixing its shortcomings such as the window switches on the middle console instead of the window where it belongs. The side armrests are hard cheap plastic and the door lock sticks out of a unfinished hole in the door!
The Cobalt's interior silver trim is starting to rub off on many of the cars. It looks cheap, and feels cheap. and is cheap. The console is hidden under the armrest and there is no elbow room.
Where are the 6 speed automatics? Only in one model of the Aura is not good enough.
How can the Lucerne come out with an old tech pushrod V6 and 4 speed automatic and not the DOHC V6 and 6 speed automatic? You dont set the bar, you dont even reach the bar. Its getting stale and quite frankly a little pathetic.
You have tilt and telescope steering and adjustable pedals on the Malibu but not the Impala, Lucerne, Cobalt, etc? Why?
Tilt and telescope steering should be standard on ALL your vehicles. The Mazda 3 has it, does the Cobalt?
Get rid of the 5 cylinder engines in the Colorado/Canyon. Does anyone want a 5 cylinder? Sales stink on these models-the ride is not world class and the interior stinks. GM should be the leader in light trucks, not dragging the rear.
You have 12 V6 engines and only 1 or 2 are world class. Dump the ones that arent and build more of the ones that are and put them in everything.
The RAV4 has a world class engine, the Equinox/Torrent has a Chinese built pushrod POS!
Talk is cheap, show us you will only produce the best and people will believe you.
The Aura has a dumbed down front end from the concept car. The wheels are ugly. Everyone is telling you this, but will it be changed? of course not, GM doesnt listen to the people.
Why is the parking brake on the floor in so many of your vehicles? It belongs on the console like the competition.
Why havent you increased your warranties? People are afraid to buy your cars because of the mediocrity you produced even 3 years ago that started to fall apart right after the 3 yr warranty. INCREASE your warranties!
GM needs a new slogan-Only The Best!
Only the best parts, only the best designs, only the best vehicles.
Prove to us that you know what you're doing. So far we havent been seeing it.
Posted by: SteveG on May 5, 2006 12:03 AM
In China you pretty much have a clean slate. Here is a way to get the word out.
In China they have a long way to go in driving technique (safe driving practices) and to discover the fun factor. Here is where you could couple with the government and take a show on the road for both.
1) Have a tight autocross event for only registered taxis & taxi drivers. Have a small entrance fee for charity. This could be an annual thing. Every once in a while buzz the course with a Z06 & CTS-V to wow the crowd & the time clocks. Perception GM-1, Taxis-0
2) Have a special event for taxis for a ha-ha timed event. Open doors, load luggage, parallel park, & what ever else you can come with.
3) Have tents with GM products, displays, etc. Have tents about driving safety. Promote fuel saving driving techniques & technology.
4) Have a safety track or fun track with low powered go-carts.
4) Short music event.
You get the drift, oh ya, show some drifting too
Posted by: Rene Curry on May 5, 2006 12:56 AM
The sales numbers are great to hear. I've heard nothing but possitive on how beatiful the new SUV line is looking. Yet, the issue still stands, where is GM's rear drive performance car for the man who's bank account isn't exactly corvette friendly. Ford is so backed up with orders for mustangs that it's unlikly they'll get them all done by the end of the 06 fiscal year.You really think GM can afford to wait till 2009 to get a car out there. Hopefully Chevrolet will be given the oppertunity to have a Camaro ready by the end of the 2007 calander year as well as pontiac with a Firebird or a GTO.
Posted by: Brian Ripple on May 5, 2006 7:48 AM
It's not that GM can't build better cars than anyone else, especially toyota. You just need to keep the onslaute going like toyota does. Don't let cars sit around for 7 years before replacing them.
Posted by: Dsuupr on May 5, 2006 8:06 AM
Yes, I see improvements! Though you guys still need to cement the small midsized family car. The quality is their but something is lacking. The Aura is very attractive and should do well. The G6 is also a very nice looking ride. But the Malibu is just a little too European for most people. You guys get that thing redesigned soon and right, plus add a couple of decent minivans, you guys are no longer going to be losing market share.
Posted by: Joe Gakenheimer on May 5, 2006 9:00 AM
In response to Steven G. above, the 6 speed auto and the 3.6L DOHC are going into the G6 GTP for the 2007 model.
Fuel-slurping SUV's are great for the bottom line, but I would like to see money spent on better interiors for GM cars.
Posted by: Keith L. on May 5, 2006 10:40 AM
Bob, I am very impressed with most of your efforts. Please continue to be bold, creating must have products not products I will buy because they are American. I feel you were to conservative with the Aura. It lost the sharpness of the concept that made it special.
Posted by: JDHorn on May 5, 2006 10:54 AM
The autoextremist quote was taken out of context. True, the ZO6 is the one of the best cars in this world, but... what autoextremist.com was trying to say is that why doesn't GM have the same energy, creativity, and substance approach with all their cars and trucks?
The only reason that I ever liked or cared for GM was the Corvette. I have always liked the car and always will. But what I will never ever forgive is the G6 that I bought. Horrible steering, dime store interior, and a weak engine with a last generation transmission. All that for $27,545. Over priced to say the least. Fix your interiors, get newer engines in all your cars, just because you make a 3.5 liter OHV, doesn't mean it belongs in all your cars. The newer interiors are better, but they are still not better than the competition. And do not get me started on why there is a 3.8 liter OHV engine with a four-speed auto-matic in your $30,000 Buick Lucerene.
Posted by: mike on May 5, 2006 11:02 AM
Too bad the current G6 and Malibu weren't "developed with a segment-winning mindset".
Hopefully the new cars that are "coming soon" will be worth the wait.
BTW, what are your plans with the Grand Prix?
Posted by: Scott on May 5, 2006 11:06 AM
Great news Bob.
A couple observations, though. Saturn's new product looks great. However, you should know that many dealers are doing their best to sneak price increases onto the Sky (mainly, it seems by requiring dealer installed accessories at wildly inflated prices). Most of the dealers near Denver are charging at least $2000 over sticker this way and one is even charging close to $7000 over.
As Saturn dealers continue to get great product - they need to be reminded that this is not the time to walk away from what made them better in the first place...a Saturn with great dealer practices _and_ world-class product is something to fight for from the highest levels.
I'm personally waiting to see what the Sky RL is like, and would really like to see a coupe version (or a much better designed top on the roadster that doesn't feel precise and block way too much rear-vision).
Also, let's get some more products for Cadillac. The brand is now credible as a BMW/Mercedes/Audi competitor - but really needs a smaller SUV than the SRX, a CTS coupe would be nice, a 3.6l VVT V-6 powered version of a Kappa would be great, and don't forget a big-brother to the STS with that V-12 from the Cien (and a production Cien - if I'm really dreaming).
Keep up the great work.
Posted by: CaddyEdge
on May 5, 2006 11:54 AM
Just read your interview with Warren Brown (Wasington Post). I agree with all you said. In fact, I think GM could scrap their whole domestic market (except for Chevrolet Medium and Light Duty trucks)and just sell European "imports". Plus, maybe you could make a profit that way.
Posted by: Jeremy on May 5, 2006 12:49 PM
Bob
I just dont see these new vehicles moving off the lots here in Richmond,Va.We have dealers here selling the 07 Yukons,Suburbans,Lucernes at invoice and one dealer offering any vehicles to anyone at supplier pricing.If they are so hot why is this kind of pricing needed?
Posted by: Scott on May 5, 2006 1:04 PM
I will freely admit at the start of this comment that I am not a huge GM car fan. I was born and raised on Chryslers, and will probably die driving a German autobahn blazer (after recently having the pleasure of driving a Mercedes-Benz SLK55AMG). That being said, I am a 25 year old American male with a college degree, an income exceeding 50k, born and raised in the Midwest, and a passionate automotive enthusiast. In other words, I am your current and future target audience, and I believe that GM is every bit as important today (if not more) to the health and well-being of Americans as it was in the 50's and 60's. GM is still one of the nation's leading employers, and is a globally recognized symbol for the United States. Now for the bad news: GM is not representing itself or America well.
For the purposes of this discussion, we'll have to exclude the Corvette, which by some accident is an amazing piece of automotive engineering and innovation. However, the rest of your car lineup is terrible to say the least. We could run down a laundry list of issues, but it all boils down to one major one: passion (or an extreme lack thereof). For decades, GM vehicles evoked passion in anyone who saw them. Think back to the most memorable cars of any era, and chances are good that they will be GM brand models. The early Oldsmobiles, Buicks, and Cadillacs were the style and technology kings of the road. Chevy and Cadillac led the pack in the 50's and 60's. Then came the 70s and all of a sudden style and innovation went dead in the American automotive industry. The 80s brought us boats and boxes with no style, little innovation, and even less appeal. The 90's dawned with promise as Chrysler introduced cab forward design and GM answered the gauntlet with one of my favorite cars of the last 20 years: the '94-96 Impala SS. Things started to look promising again from both the performance and style standpoints. And then it died at GM. Again. Guess what? Your cars are still DOA.
I applaud what GM has done with it's truck lineup. The new GMT900 series truck platform is definitely leading the pack. However, with gas prices at $3 a gallon, the trend is moving away from SUVs and back to cars. You've killed off what little brand loyalty you had in cars by trying to package tired engines, mediocre interiors (and that's being nice), and poor performance in even worse looking packages. You can cut the price of cars and incentive them out the wazoo in order to get people to buy them, but you'll never make a profit that way. The keys to being profitable lie in evoking passion in consumers (that way it won't take an incentive to sell), making a quality automobile that will last (lowering your warranty expense and helping the bottom line as well as your reputation), and turning from a technological has-been into a technological leader in innovation (and no, On-Star doesn't qualify).
General suggestions:
1. Cut vehicle weight by at least 30% accross the board. This will help fuel economy as well as boost performance as both of those statistics are inversley proportional to weight. A couple of ways to do this: aluminum frames and body panels, smarter packaging, a fresh look at alternative materials (you've got the purchasing power), and design each new model with low weight being a driving factor in every decision.
2. If you can't build a good engine, buy it from someone else. You did this with Saturn, sourcing the V6s for the Red Lines from Honda. Try doing more of this instead of discontinuing it. Your V6s are terrible in both fuel economy and power output as a previous blogger not-so-delicately pointed out.
3. Buy up the top designers and then get out of their way. You've seen what cars like the Concorde, LHS, Sebring, Neon SRT-4, 300, PT Cruiser, Viper, Magnum, Charger, and now Caliber have done for Chrysler. I promise it will work the same way for you. If you build it with style and performance, and it isn't a POS, people will come with wallets open. Discounts and incentives won't be necessary. If you doubt this, just look at the reception for the Pontiac Solstice and Saturn Sky.
4. Shorten the time between concept introduction and production model. It is completely inexcusable that it will be 2009 before we see the Camaro. You are giving the Mustang a free run until it's next re-design, and you will lose the excitement that the concept evoked. The Dodge Challenger concept debuted at the same time, and it will probably hit the streets a year ahead of the Camaro unless you pull a major rabbit out of your hat. Capitalizing on market excitement is key, and having the flexibility and the know-how to get a car from concept to showroom in 18 months or less will be key to success from now on.
I know that GM is trying, and that it takes time to change the course of such a massive ship. However, Chrysler has managed to do this even with massive German interference and even Ford is showing signs of life. You have some momentum with the turn-around of Cadillac and the re-emergence of Pontiac with the Solstice. You had better'd hit a home-run with the next generation GTO and Impala. From engine to transmission, from exterior styling to interior fit & finish, you have to be better than best in class. Your reputation isn't what it used to be and that is much harder to build than a quality automobile.
Posted by: Nathan on May 5, 2006 3:07 PM
Steve G wrote:
"We want to see world class efforts on all your vehicles, not just some of them. You can re-do them all at once.."
Clearly, anyone who is so uninformed to think that any manufacturing company of anything, let alone something as complicated as a modern automobile and all of the; design, tooling, inventory, contract durations, etc. as well as the enormous cost associated with "re-doing them all" and suggest that you do this all at once, should be edited from this blog. Not to promote only positive comments, but to establish a baseline for intelligent ones.
Posted by: Mark on May 5, 2006 4:48 PM
Dear Mr. Lutz,
I have been following GM since university - in the late 80's. I have continually been fooled into thinking that GM has finally gotten its act together. However, this time it IS different.
I am very impressed with the new car and truck offerings. Better engineering, better interiors, better everything. Two items of note:
1) four speed automatics have got to go. Five speed is the Japanese standard for now but expect them to raise the bar in the future.
2) Better warranties - prove that you will put your money where your mouth is, that you believe in your new-found quality and attention to detail.
The current, unfavourable market perceptions of GM's quality were not formed overnight. We cannot expect them to be changed overnight. Only by building great cars and trucks for "quite some time" will public perception change. Keep your eyes on the horizon.
Thanks,
Chris
p.s. Go GM Go !!!
Posted by: Chris on May 5, 2006 4:54 PM
>In response to Steven G. above, the 6 speed auto and the 3.6L DOHC are going into the G6 GTP for the 2007 model.>
They should ALL ahve the 6 speed auto. Get rid of the 4 speed altogether.
And pushrods should only be used in trucks or sports cars. DOHC engines need to be placed in all of GM's vehicles.
Posted by: SteveG on May 5, 2006 5:11 PM
To the people hollering for the 6-speed transmission to be rolled out to all cars right away, it's more complicated than you are aware. There are things to consider like having the plants ready to manufacture enough units for all the vehicles. And getting rid of stockpiles of the older 4-speeds that have already been manufactured. And having the money and people available to re-engineer and adequately test engines and cars that were designed to work with the 4-speed.
GM also needs to weigh the benefits of spending the money on a more expensive transmission. If a typical car buyer doesn't look at or care how many speeds the transmission has, why should GM spend the money on it? It may or may not increase gas mileage or performance, but how many car buyers don't care about those aspects of a vehicle either? Plenty. Very few people are auto enthusiasts who care about transmission speeds like you or I might.
Posted by: Anonymous on May 5, 2006 7:32 PM
What isn't so bright is what GM did to the inside room of the 07 Suburban. It's terrible in the third row. A quick check from several sources did confirm that the leg and head room was reduced compared to the 06 model. In short the third row is now super uncomfortable. And with the new power fold second seat design there is no room for third row passengers on the right side to put their feet. Why would GM ruin one of the main reasons people purchase this product? I currently have two and had intended to replace one this summer. Now I'll have to wait for the Expedition EL because that third row is the selling point for me.
Posted by: Thomas on May 5, 2006 11:35 PM
I for one do not think Cadillac has turned fully around. They need to fix up their interiors.
1. More real wood is needed. Try a semi-gloss finish instead.
2. You need to have a larger nav screen.
3. Your radios should not look corporate. Maybe the innards might look the same, but there is no reason for the knobs etc to look the same, EXCEPT in models from the same division.
4.Cutting edge technology! What happened to NIghtVision?
Why can't you get UltraView in other models?
Posted by: Carl on May 6, 2006 2:23 AM
I have to concurr that ZO6 is one GROUND POUNDING corvette!!Saw one a few weeks ago it was Blue and I guess certian things just exude a PRESENCE and that car certianly did.I think GM is having some beautifull product launches.The Tahoe is breathtaking and the SKY in a word WOW NO!!DOUBLE WOW NO!!!TRIPLE WOW!!!That car has got to be one of the most beautiful cars ever made.It just catches your eye and wont let go.I went to a Saturn dealer the other day and they had one (The Owner Owned It.) MAN!!!Its not to small and not to big its fit and finish looks superb its a great little sports car its got FUN written all over it.BAROOM!!!Your gonna sell a ton of those cars!!!!Now Ive learned THE LORD KING GOD of pickup trucks the 2007 Chevy Silverado will be unvieled in Sept.Boy this year has been like watching the NFL draft and which teams get what.FUN!!I hope you can announce soon on the Concept Camaro.That is were my heart and soul is.Ive established a Big Boy Toy Super Fund and Iam working towards it(You havent even decided yet if your gonna build it!)but I betcha alot of people are doing this so I hope that car gets built.That car can make a lazy man go get a job working 3 shifts at a Flip and Flop Burger joint just to get the keys to that car!!Well Gotta go!!!Take Care!!
Posted by: Stan on May 6, 2006 12:01 PM
>Steve G wrote:
"We want to see world class efforts on all your vehicles, not just some of them. You can re-do them all at once.."
Clearly, anyone who is so uninformed to think that any manufacturing company of anything, let alone something as complicated as a modern automobile and all of the; design, tooling, inventory, contract durations, etc. as well as the enormous cost associated with "re-doing them all" and suggest that you do this all at once, should be edited from this blog. Not to promote only positive comments, but to establish a baseline for intelligent ones.
Posted by: Mark at May 5, 2006 04:48 PM
Well, Mr. Rude, Toyota doesn't improve the Camry while letting the Corolla rot. Do you think its wise not to improve vehicles you know need improving while improving one or two others? Should the Aura come out with hydraulic steering (yeh!) while the Malibu and G6 are left with the numb electric steering?
Do you leave the Colorado/Canyon twins to languish and further lose sales while only improving the Silverado?
To be competitive GM has to fire on ALL Cylinders. They have the money, it needs to be spent on product. They are sinking in segments they should be leading in, such as small trucks, and to further let them languish only makes it that much harder to win back the segment.
Improvements can be made across the line, while not necessarily replacing the entire vehicle.
Posted by: SteveG on May 6, 2006 7:12 PM
Bob,
We thought badge engineering was dead (at least as I define it as two or more vehicles in the same market with very little to distinguish the two) but now I see pictures of the G5 Pontiac and don't see the point of it compared to the Cobalt and Cobalt SS!?! What's going on?
Posted by: Joel on May 7, 2006 11:19 PM
Mr. Lutz: GM’s current perception/reality problem is that GM offers models that appeal to current import owners, but will not build them.
When prospective buyers go to a GM website and “Build and Price” the vehicle they want and find THE VEHICLE they want at a very competitive price. Then they try to “Find a Vehicle” and the reality; there are none within a 500 mile radius of their home.
I recently did the web search to locate a Malibu with the 1LT package (remote start, steering wheel controls) with the following options:
Luxury and Convenience Pkg. (6 Way Power Driver Seat, Heated Seats, Fog Lights, Alloy Wheels, Illuminated Visor mirrors, Auto dimming Rear view mirror with compass/temp display and chrome trim)
Adjustable Pedals
Side Curtain Airbag
Spoiler
This is a well optioned Malibu with 4-cylinder with a sticker of $20,225 with the $750 rebate.
There are none in the entire Southern California Area (LA and San Diego).
Having worked at a Dual Domestic (Dodge) and Import (Honda) dealership in the early 90’s, I can tell you this is the vehicle that California family car buyers are looking for. We sold more 4-cylinder Accord LX models than any other and most buyers were not even interested in the V6 Accord LX or EX. Selling these cars was easy, just match the buyer to the color they wanted and do the deal. The LX models were optioned well, was available on the lot and the buyers got exactly what they expected.
This is the key; GM must build and stock the many mid priced vehicles they do offer. When buyer wants and needs are satisfied by what they get, the customer perception of GM will improve.
In the Malibu case, even though the EPA sticker shows that the 2.2L I4 and the 3.5L V6 model get the same highway mileage. The buyer’s perception is that the 4-cylinder will do better than the V-6. GM needs to capture these buyers – 60% of Camry buyers opt for the 4-cylinder and Accord buyers are similar. These are the two best selling cars on the market and they got there by selling well equipped 4-cylinder models.
Honda and Toyota have figured out that while the “per unit” revenue is lower on mid price 4-cylinders, the volume and market share that comes with it are worth more. GM does offer a competitive model in the Malibu 1LT although the 2.4L from the G6 attached to a 6 speed automatic would improve it greatly.
As a test case stock the southern California dealers with 500 to 1,000 Malibu 1LT models optioned as noted above and offer them mostly in light colors (it gets hot out here).
Advertise these cars at $19,995 and see how fast they sell.
If they don’t sell you can always use the usual GM tactic of boosting rebates or sell them to a rental car company.
I bet your net revenue is higher with retail sales with low rebates.
Posted by: Rick Lupori on May 7, 2006 11:20 PM
Is GM planning to enter the singapore/malaysia or south east asia market at all ? I come from that reigon and work at GM research currently, and I would like to say that that reigon holds a huge potential market that toyota is currently attempting to dominate. The national car company, Proton no longer holds an incumbent position due to the recent cuts of favourable government incentives for the company. This would be a perfect time to export some of GM's AP vehicles to that reigon and expand our marketshare.
Posted by: Sri Kanajan on May 8, 2006 11:55 AM
Bob:
My query regarding the Flex-
fuel vehicles meant to specify upper series such as
Buick and Caddies. Since the cost to make a vehicle E85 is
mininal, why not make all
engines E85 capable- as in
Brazil ?
Posted by: John on May 10, 2006 5:07 PM
Bob,
I am glad to finally read some good news. As the owner (me and GMAC) of a G6 GTP coupe I can see the the improvement. My only complaints are the window switches on the drivers door and the trim around the sunroof rattle at times. I would improve it by fixing those nagging rattles and add a higher HP engine, optional auto shocks, navigation system, and leather seats that cool, and all wheel drive. I don't know if the KAPPA chassis could be used to build a compact rear and all wheel drive sport sedan, and 2+2 sport coupe (chevy and pontiac) with optional 300hp V6 engine, and a 450+hp, twin turbo, direct injected V6 engine. The solstice and sky are getting great reviews, and I feel the kappa chassis would be a great foundation for a car to beat the Infinity G35, and BMW 330, and others. How about a 7.0 liter XV8 engine in the Corvette or XV8 engines for your next line of pick-ups. How about a new compact SUV for chevy and GMC base on the Colorado cassis with a new V6. Please no 5 cyl. Keep up the good work. The results will be worth it.
Posted by: Jim on May 12, 2006 7:43 PM
Although Toyota is considered one of the highest quality car makers (if not the highest) in the world, 2.2 million of their vehicles were recalled worldwide last year.
Posted by: getalifeagain on May 14, 2006 5:13 AM
I've been a fan of GM cars and would, given a choice, prefer to buy "traditional" American brands. I like the new Buick Lucerne, particularly considering the available NorthStar V8. However, the lack of all-wheel drive makes the vehicle less competitive with the Infiniti M or the Lexus GS. How about an all-wheel drive version?
Posted by: gmenthusiast on May 15, 2006 1:05 PM
I recentley rented a Pontiac G6 for a long road trip from Chicago to DC. I must say that car the grew on me the more I drove it. 30 mpg for a V6 was nice also. Smooth, fast and quiet too. The car is larger than it looks. My ONLY complaint was the steering. It was too light and made the driver feel like they are not in control. If the steering was better, this would be the car to own.
Posted by: go4usa on May 18, 2006 4:36 PM
Mr. Lutz:
I have loved Chevrolets since I was 8 and wnet looking for a '55 Chevy with my dad and brother. I am very patriotic and do not want to buy an import. We just purchased an '04 Impala LS last year. It is big enough for the family, runs great, and gets great gas mileage. Unfortunately quality problems popped up immediately. Popped up is a good term for what the car did and is still doing: The front end has a very pronounced popping noise in it. It was at the dealer 4 times under warranty, the last time the front subframe was replaced. I had high hopes that it was fixed but it is not. I now doubt that it CAN be fixed. We really like the car, it is a nice family sedan, but I worry about the frontend coming apart. We looked at imports when we bought the car but I just could not buy one. I so hope that the quality comes around so I will feel good about buting a Chevy next time without having quality concerns. I so want America to win!
Posted by: kcmocarguy on August 18, 2006 2:15 PM
my father just bought a 2006 Lucerne. He's had it back at the dealership several times. He's been having issues witht ehe steering. It's pulling to the right. I have searched and there appears to be several complaints from other Lucerne owners. Is GM doing something about this? How are you all addressing this? This is no coincidence. It's a safety issue. I will be notifying NHTSA soon. At this point I will be suggesting to him to look in to the Lemon Law if things are not corrected soon. You also need to inform your dealerships that this is happening. They "claim" they have had not other issues but that is not accurate.
Posted by: Saul Garza on October 22, 2006 8:09 PM
I think the Honda Ridgeline is a great truck with all wheel drive. I would like to see the Colorado with all wheel drive to compete with Honda. The Silverado with 4 wheel drive is the way to go for a heavy duty truck but not the Colorado. For light duty and driving in snow; Can GMAC consider a all wheel drive Colorado?
Posted by: Shain on January 11, 2008 11:42 AM
