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BusinessTurnaround Momentum Drives GM in the Right Direction

Chairman and CEO Rick Wagoner
Rick Wagoner

Editor's note: While FastLane is typically dedicated to discussion about GM products and services, Chairman and CEO Rick Wagoner has chosen to use this forum to update you on GM's turnaround progress.

By Rick Wagoner
Chairman and CEO

As I commented to financial journalists earlier this week, conventional wisdom holds that you can’t turn a ship as big as GM around quickly. We aim to prove that conventional wisdom wrong.

Our second quarter earnings report pleasantly surprised a lot of folks who are following GM’s turnaround progress in North America. Even some of our harshest critics were impressed.

Putting the financial mumbo-jumbo aside, what the numbers show is that our turnaround plan for North America is well on track and building momentum.

Lots more hard work and several big challenges remain in front of us, but I’m pleased with how much already has been accomplished in the past year. I’m very appreciative of GM’s employees, unions, dealers, suppliers and stockholders’ willingness to pitch in and help get the business back on track. It’s just starting to pay off.

You may have seen some headlines that said GM reported a net loss of $3.2 billion for the second quarter. That’s true. We booked several “special items,” which included a one-time $3.7 billion charge related to our successful hourly employee attrition program. A total of 34,400 employees took advantage of the buyouts, which are intended to help them make the transition to another line of work or early retirement.

Beyond cutting costs, we need to keep up our recent momentum in growing revenue with exciting cars and trucks. Based on the new vehicles in our “product pipeline,” there are plenty of reasons to be optimistic on that front as well.

Although it hasn’t been fully recognized yet in the business media, there are strong signs that GM’s already well on the way toward a product-led resurgence.

Dig into our most recent sales results, and you’ll see that in June our retail sales and market share were the strongest they’ve been all year. Our newly launched vehicles are selling very well, led by our new full-size SUVs, the Chevy Impala and HHR and Pontiac G6. The hot Pontiac Solstice and Saturn Sky roadsters are essentially sold out for this year.

The Saturn Aura midsize sedan and Saturn Outlook and GMC Acadia crossovers, our new full-size Chevy Silverado and GMC Sierra pickups, as well as the Saturn Vue Green Line — the nation’s most affordable hybrid SUV — will all debut through the second half of this year, and help build upon this recent growth.

Sometimes lost in all the attention paid to GM’s challenges in North America is the remarkable progress we’re making in the major growth markets elsewhere in the world. Our sales in Europe are strong and earnings there continue to rise. Our region that includes Latin America, Africa and the Mideast also has grown significantly; its earnings more than quadrupled in the second quarter versus a year ago. And in the Asia Pacific region, we continue to lead in the world’s fastest-growing market, China, and to rapidly expand sales at GM Daewoo in Korea.

We recognize that our most recent financial and sales numbers, while promising, aren’t enough to declare our turnaround a success quite yet. But we know what has to be done to get our North American business back on a solid footing, and we’re doing it.


Posted by Editor on July 28, 2006 12:46 PM

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Comments

Gotta admit that I'm impressed with the rapid turnaround.
Congratulations on the attrition count too.
Now how about green lighting the Camaro. Chrysler has already beaten you by approving the Challenger.

Posted by: Mikko O on July 28, 2006 2:11 PM

Sir;

Good job!!! this represents a great deal of work on everyone's part.

As a 3rd generation Chevrolet salesperson/dealer, I see no reason for GM to undertake an alliance with Nissan. All that seems to amount to is a inexpensive way for them to take advantage of our broader range of platforms and vacant plants. Every sale they get is one that we won't. Even Toyota is trying to be American, I think we should too.

On a seperate note, The hardest part of my job is color selection. 2007 represents the worst year yet. GM needs to quickly find someone that has an eye for catchy colors. We have lots of great product with lousy color choices that often times cool the sale. If I can be of any help I'd give all the time I can to make this work.

Thank you.

Posted by: Mike Murphy on July 28, 2006 2:28 PM

I think one of the only reasons Renault/Nissan may want a piece of the General is that it is such a hot commodity. You have made many positive steps without them.

CONGRATULATIONS

Posted by: getalifeagain on July 28, 2006 3:06 PM

Rick,

It's encouraging to read that you recognize suppliers have played a part in GM's turnaround. Unfortunately one of your direct reports doesn't share the same sentiment. The latest Automotive News quoted Bo's true feelings about how suppliers perform - "overpromise and underdeliver". This misplaced rhetoric and lack of partnership is why GM placed dead last by a wide margin in the Planning Perspectives' annual survey. The apple doesn't fall far from the tree and his purchasing organization has done nothing to build rapport, trust or positive relationships with suppliers.

GM needs to clean its own house before passing judgement on the supply base. The best of us WILL find other customers besides General Motors. That will be your ultimate undoing.

Posted by: S Plier on July 28, 2006 3:25 PM

Rick,

You and your Mgnt. team should be applauded for what you have done. I know some people on this blog are going to disagree with me for saying this but you are doing a top notch job. That being said theres a few things I would like to comment on. First off any merger with Nissan/Renault would put a bad taste in a lot of peoples mouths. I buy GM cars because they are American (even though some are made in Canada and Mexico). To me GM is a thing of American pride. Please dont go through with it, It would be a sad day in America if you did.

Chevy: The Monte Carlo needs a complete overhaul, The Malibu needs a complete overhaul, The Camaro needs to be made, and quick!

Buick: The designs of current lineup (except for Lucerne) are a disgrace. The Lacrosse, Rainier, Rendezvous, and Terraza are a joke. Why does buick need a minivan anyway?
The Buicks of old did something that the new could never do, and that's bring out emotion in people. Take a look at the following concepts that people outside of GM have created. http://www.gminsidenews.com/forums/showthread.php?t=33486
also take a look at this http://www.allcarwallpapers.com/wallpapers/previews/holden-efijy-concept-1318.jpg Holden made it! slap a skylark sticker on it. Even your concepts the past few years have been nice. What ever happened to the Velite? The Enclave is nice but its not going to save Buick on its own.

Pontiac: Needs a new Trans Am! Check out the attached picture its a cool idea I found floating on the Internet. http://www.highperformancepontiac.com/hotnews/hppp_0607_2009_trans_am_concept_z.jpg Also like with Buick drop the Minivan it doesn't really go with the whole performance division thing. And please, if your going to do the GTO again, give it a little style this time around!

Saturn: You guys are doing a good job of pumping some life into it. I cant really say much except for the Logo. That Logo needs to be changed. When I see it the first thing that comes to my mind is crappy rent-a-car. If you really want to start changing peoples minds about Saturn, Start with that ugly red badge.

Caddy: Im really impressed with the new Cadillacs. I would complain about the CTS being dated, but I know a new one is in the works. Great job on the new Escalade!

Good luck, and again Great Job!

Frank

Posted by: Frank Nic on July 28, 2006 4:28 PM

Mr. Wagoner,

Great job. GM’s turnaround plan is working, the new products are proof, GM owners have the trust, so we can say its working right now. The product momentum is building. Americans are counting on you and GM.

Styling is a key; clarity of the message is a key. GM sedans need to be inspiring. The Lucerne is a fine example, the message is clear, the styling is fresh, the presence is commanding. People notice. People want the CXS and CXL, that should be the focus of the dealer presentation on the lots, and not to be walled in by trucks. Give Cadillac one alternative mid sized sedan look. Make a Cadillac roadster version of the Solstice at the entry level to leverage cost.

The foreign competition will buckle when GM gets its sedans rolling. Most of the foreign competitors’ profits depend on one main model. The new Impala styling is a big improvement, but it can be better. The Impala view from the rear is nice, but the front end styling is just not where it needs to capture the essence. The Grand Prix styling is also in need. GM quality is great. The G6 is a winning style; however, there are comments about the comfort from GM customers. Our friends recently rented a G6 on vacation liked the looks but thought it was a uncomfortable. You have to remember, that GM customers are more demanding than media critics or those who own a foreign competitor’s brand. People just don’t want these overly flat firm seats that the media has pushed on the automakers. People like GM’s ergonomics. The GTO has a great feel and comfort, it has the ergonomics, it just doesn’t look like a GTO. We like it, but the styling let us down a bit. We like the new Camaro, it has style, it reminds you of a Camaro, yet is very modern. People are already talking about it and that is good.

On engines, GM needs to boost the economy of the 4 cyclinder a bit, just to change the perception game a little. Its fine to me, but the public perceives the guy with the highest mileage car as somehow a superhero. Its perception.

Can GM make a V-8 that gets 30 mpg? GM’s V-8 has a trusted reputation, it is selling even with higher fuel prices. That should tell you that people want GM V-8 engines. A 30 MPG V-8 offering would really energize sales. Make it flex fuel to boot.

At least one fuel efficient engine over 30 mpg offering for the CTS would be a good idea. Toyota customers shop Cadillac looking to trade up and when they do, they see the fuel efficiency sticker, rightly or wrongly, as a measure of advancement. GM is definitely more advanced, but don’t let the foreign rivals take your business with parlor tricks. GM may have the best in class mpg, it’s the perception thing . Then there are those who like the rough looks of the CTS and those who want a more polished look like the Aurora. Personally, I like both. Right now, GM’s most important sedans are the CTS and the Lucerne since these two sedans appeal to the rising professionals and are GM’s first impression to a segment of future Cadillac buyers. That’s why we’ve been telling you to reach down a bit with Cadillac at the same time you are taking it up. How about a sedan like coupe in a CTS to capture the BMW enthusiast? Little things can lead to big things. The new DTS is a wonderful sedan, right now it needs better marketing and awareness. Many still don’t know it exists.

GM’s sales and profits have been strong when the American economy has been strong In the late 1990’s, US savings rates were up with those of Europe and Japan, and GM was gaining. Foreign rivals historically gain when the US economy is down. The Fed is too tight, credit is too tight, and the stock market is flat. Why not speak up about that?

My extended family owns all GM cars, (except for one Jeep). GM’s loyal customers are its shareholder value, your loyal customers have defended you when times were tough, and kept the faith. We select GM for service and for parts. We use GM’s credit card, we invest in GM, buy GM bonds. Friends and neighbors often choose GM vehicles based word of mouth from loyal GM owners.

We strongly oppose any alliance where a foreign company, be it Renault-Nissan or any other, takes a chunk of GM. We would see that as giving up, giving in, and selling out. Though we don’t like to say it, we would reconsider our loyalty at spector of any alliance. GM’s shareholder value could no longer depend on all of its loyal customers if that were the scheme. Let's not confuse the Silverado customer or anyone else with talk of unneeded foreign alliances. "like Rock means what it says, "American Revolution" means what it says. As GM owners we mean what we say.

GM should consider a more forceful public policy. The US needs to reform the bond ratings agencies, the Credit Rating Agency Duopoly Relief Act of 2006 would be a start. Moreover, States like Michigan could even participate in the ratings industry under the market participant exemption to the Commerce Clause. GM should at least consider asking for injunctive relief from recognized credit rating agencies. There are Constitutional issues of due process and vagueness as well and issues over conflict of interest with McGraw Hill owning J.D Power, Business Week, and Standard & Poors. Further, there may be issues of proprietary disclosure by these agencies from their so called “journalistic function” and the from nature of investigative reporting sufficient to warrant granting a petition for injunctive relief.

What happens in the rest of the world can all change, even fall apart if America is not strong.

Posted by: Edwin on July 28, 2006 4:45 PM

when GM makes a boring midsized family car that out sells the camry, then youve arrived.

Posted by: Josh on July 28, 2006 4:58 PM

Mr. Wagoner,
Great job on the GM turnaround. I am really impressed with the new Models coming out. The Saturn Sky and upcoming Aura are great cars. I had a chance to look at a Buick Lucerne and can say it was one of the best Buicks I've seen in years.

Our family is no stranger to GM. We've owned two Buicks ('85 and '89 Park Avenue) and they were fairly sturdy and nicely designed cars.

I'd like to see some of those flashy Holden designs make it over to the USA. You've got great product in Europe, just bring it here!! Look at the Buick designs in China...They're really good! It's time GM leveraged some of those overseas designs. Use your global design teams to create an unique flavor for GM USA.

I understand the constraints as far as the UAW goes in terms of importing these cars. But, take the interior design of the Holden Commodore. It's great and outclasses anything from Toyota.

Given the size of GM, I fully understand it takes time to implement changes. I'm glad you've been able to reduce capacity and not flood the market with pointless incentives. I think anyone would prefer lower sales with profit than high sales at a loss.

The key problem for GM in the marketplace right now is Perception. Everyone, including the President of the United States says that "They just need to build cars that people want..." Others harp on about Quality..

But that isn't true is it? GM cars rank right up there in JD Power Quality rankings. Every objective piece of research I read confirms this. I have had the pleasure of looking at your latest Cadillacs and being impressed with their design and build quality.

You see how the Toyota PR machine drills those quality scores into the public's minds. Have you seen those recent Corolla ads?

I have a 2006 Toyota Corolla, and what a joke it is. It rattles and the assembly quality is lacking. I am sure you are aware of the numerous Toyota recalls recently.

This is your chance! Let's see a media blitz showing America how good GM cars are these days.

Think out of the box: Invite one of those Morning show programs to a GM test facility. Have them test some cars and make sure they have fun. It's cheap advertising and reaches a huge market.

For example, you have a great SUV debuting soon: The Buick Enclave. NBC's Today show caters to many of the soccer mom's who would buy it. Get the Today Show hosts into an Enclave. Let them take it on a track and experience it. Let them interview the designers of this great SUV.

It's cheap marketing and great exposure.


I wish you and everyone at GM the best. I'm really excited to see what you will come out with next!

Sincerely,
Sudip Verma

Posted by: Sudip Verma on July 28, 2006 6:18 PM

Kudos to your turnaround team, Mr. Wagoner! It is thrilling to see the regeneration of General Motors. Your new products are excellent, and portend even greater vehicles in the future.

One recommendation that I would like to make is to continue, and even accelerate, the differentiation of GM's brands from one another. Many who have posted on this blog seem to feel that "all GM cars should have DOHC engines" or "all GM cars should be rear-wheel drive". I assure you that many midwestern buyers shudder at the thought of a rear-wheel drive sedan in the midst of winter (and no, traction and stability control do not make a rear-drive vehicle equivalent to a front-driver in the snow). Likewise, GM's OHV engines provide a combination of packaging, cost and efficiency that can not be matched by larger, more expensive DOHC designs. Each has its place.

GM is the only car company in the world with the breadth to create and market vehicles that appeal to the entire vehicle purchasing public. At the top stands Cadillac, which should take its place as the marque that BMW should have become. The Art & Science design language is a home run, but do not let it migrate, in whole or part, to other marques within GM (I cringe when I see Buick concepts with vertical headlights or shield grilles). Cadillac's entire lineup should be based upon proprietary architectures powered by proprietary drivetrains. Cadillac should be reaching upmarket, to the Bently Continental, not downmarket with the BLS and BRX, each unforgivably based upon existing front-drive architectures. Decisions such as these only serve to compromise Cadillac's credibility. Cadillacs must be available with manual transmissions, and purity of control interfaces (no iDrive-like gizmos). Only real wood. No column shifters. FULL gauges. No shared sheetmetal with any other GM vehicles (that includes the Escalade).

Buick, on the other hand, must develop a design language featuring a felinesque elegance. Where Cadillac is planar surfaces and hard edges, Buick is curvaceous and soft. where Cadillac is tall and vertical, Buick is low and long. Taper the tails of Buicks. Bring back the full-width taillights but add creative lighting solutions. Bring back the boat-tail backlight. Keep the "hips". And keep Buicks front-wheel driven with all-wheel drive as an option. This will maintain its appeal to those living with snow while permitting architecture sharing with other GM marques (that's right, just the opposite of Cadillac). Inside, design for elegant simplicity. A modest array of gauges. Infotainment systems hidden behind panels. Bench seats, contoured to actually hold passengers during cornering, with no console, a modern electronic column shifter and a push-button parking brake. Engines should be derived from those used in Cadillacs, but of different displacement and lacking the direct injection that should be standard across the board on Cadillac engines. How about a 4.2 liter NorthStar V-8 and a 3.2 liter DOHC V-6 as opposed to Cadillac's 4.6 and 3.6? The 3.2 liter should also be shared with Saturn.

The recipe for Pontiac? All performance, all the time. Only rear-wheel drive cars. Period. No base versions with steel wheels and base trim. Two coupes, three sedans, two wagons and, of course, the Solstice. Use the 4.2 liter L-6 for base versions and the LS V-8's for the rest.

Saabs should always be based on front-wheel drive architectures and should always be powered by engines that have smaller displacement than their competitors but are turbocharged. The new 2.0 Direct Injection Ecotec in the Solstice GXP should have debuted in the Saab 9-3. How can you explain why a premium division, which is know for turbocharging and was the first to turbo the Ecotec, does not have the premium version of that engine? And 250 horsepower from the new 2.8 liter V-6 turbo is terrible. Audi has V-8 versions of the A4 running around, and the best Saab can do is a 250hp V-6? Saab must be equated with performance on par with its European competitors from Audi, BMW, Volvo and Mercedes. Also, all-wheel drive must be an option on all Sabbs from this point forward. How about reviving the 4.0 liter Aurora V-8, with turbocharging and direct injection, for use in the next 9-5 Aero? Imagine that, an honest competitor to the BMW M5 and Audi RS6. A theta-based small SUV and a larger, lambda-based SUV would flesh out the lineup nicely, as would an Astra-based 9-1. But they must be powered by the same turbocharged, small displacement engines as their sedan siblings! And how about promoting Saab's rich history of safety and environmental friendliness?

Chevrolet and Saturn are your volume brands. As such, I believe that they must be generally front-wheel driven, with appropriate exceptions, such as the Sky and the Camaro, of course. The Impala handily outsells the Charger, and with good reason...it has a broader appeal to non-enthusiasts while still appealing to those who crave horsepower. Since all-wheel drive must necessarily be developed for front-wheel drive based Buicks and Saabs, let's make the next Impala SS all-wheel drive. Chevrolet should also remain loyal to the pushrod engine, while Saturn should shun them altogether and exclusively employ DOHC powerplants. The offerring of the 3.5 liter OHV V-6 in the Aura is a mind-numbing mistake, as it instantly hurts the car's credibility.

Certain technologies can also be utilized to aid differentiation. For example, Saturn should be the platform from which hybrids should spring at GM. Yet instead, GM sprinkles hybrid technology around is divisions, so that none of them can distinctly claim it as their own. All Cadillac and Saab engines should employ direct injection ASAP, and be know for it. Diesels can easily be the hallmark of Hummer. What if every H2 and H3 were equipped with a Duramax?

If I appear too critical in the face of GM's recent success, I apologize. The fact that GM is on the mend, and so close in so many areas to where it needs to be, makes the hunger for excellence that much more acute. GM has often been accused, and rightly so, of making cookie-cutter products. You need to realize that only GM has the ability to uniquely appeal to every demographic.

Posted by: Pete Nicholson on July 28, 2006 6:51 PM

I know it is somewhat off topic, but Mr. Wagoner mentions the soon-to-be-released Chevrolet Silverado and GMC Sierra. I went searching the Web for these vehicles and what I saw was a disgrace. You'll probably never meet someone who stands up for General Motors more vociferously than I do, but the look of these new trucks are simply ghastly. When I saw the 2007 Tahoe during the winter Olympics, I was stunned. I could see the level of detail the designers put into those SUVs. They made me want to put myself in hock to buy one. I won’t however turn in my 2001 Sierra for these new pickups.

Posted by: Chris on July 28, 2006 7:12 PM

Good results, stay steady and focused on your plan. BUT please do not forget it is all about the product!

Posted by: Frank V on July 28, 2006 8:01 PM

Rick I see much turn around in process, and much more to go... I fully agree that things are improving... simply looking at the recent product compared to the current product... examples would be cavalier vrs cobalt, or GMT800 vrs GMT900, or Malibu Classic Vrs Malibu

and thats just on chevrolets end... still much needs to be accomplished in a short amount of time...

I like the fact GM has grown a pair and started to advertise Things like

"We'll see your 10. and Raise you 44. 54 plants in the U.S."

another thing would be to illistrate the quality of the cars, people almost always know... if you want a Truck, get domestic...

but most people believe the japanese make the best cars... so why let people beleive what isnt correct?

isnt there something similar to the "most dependable longest lasting trucks" that you guys can prove about the cars?

and about nissan, that would be a horrible thing for both companies... the only person who profits in GM tie up with Nissan Raunalt is Kirk... there seem to be no long term benifits...

GM is an american company.
What is good for GM, is good for America. VIC VERSA
Perhaps you should remind america of that?

GM & Ford ought to colaberate advertisement to regain the car section of the automotive industry...

If you want any idea of how uneven the playing feild is for the japanese manufactures have perhaps you should read this article.

http://www.uwsa.com/issues/trade/japanyes.html

Posted by: Tim Geisler on July 28, 2006 11:23 PM

Rick,

Great job! Especially when working in some very trying times. But the hard work by you, Bob Lutz and company is starting to pay off in the showroom and on wall street. I for one LOVE my brand new 2006 Cobalt SS/SC and look forward to the all new Silverado (to replace my '03? maybe....)! Now, just keep up the good work and please (!)OK the CAMARO ASAP,I will buy it!

Posted by: Craig on July 28, 2006 11:47 PM

Rick,

First off, congraulations! It's great to see you guys are in the middle of a turn-around.

But always remember this one thing, when regarding future products:

Styling is KEY. Make it sexy, make it unique, make it evoke emotion..make it American. Remeber, GM has rich history and heritage..don't be afraid to use it. The Camaro Concept was a complete success, and the Solstice and Sky are testiments that styling and affordability sells.

Good luck, and remember that.. make the General proud!

Posted by: Brian on July 29, 2006 1:15 AM

If you are contemplating a partnership, think Honda! The company is very good at building efficient engines and high tech small to medium cars. These are traditionally the weak points of GM. GM has much strength that can bring to the union too. There is very little to be gained from Ranault/Nissan partnership (at least from this consumer’s point of view).

Posted by: Alex on July 29, 2006 2:25 AM

The falling dollar trend should continue, especially if the interest rate tightning cycle was to end. With that in mind, a relationship with Renault & Nissan does not make sense for North American operations.

Posted by: Rene Curry on July 29, 2006 3:26 AM

Don't give into Renault - they're going to benefit more than you guys will! They want access to the years and years of research GM engineers have worked hard to compile. And those idle plants - just sell them outright. Don't let a company that the French Government has a 15% stake in come over here and steal GM technology (and market share too) right out from under you at a low stock price.

Also:
Green light the Camaro.
Rear drive platform for Buick and Pontiac, sedans and coupes.(Think 5 Series/Lexus LS430)
Rear drive Impala/Monte Carlo (think Dodge Charger)
Solid, VW-type small car (like the new Rabbit) for Saturn and/or Chevy.

Bob Miller
Houston, TX.

Posted by: Bob on July 29, 2006 9:39 AM

I fear that gasoline prices are only going to go up in the future. Moreover, I don't like depending on people who hate us for my transportation fuel needs. Lastly, if global warming is happening, and it seems as though it is, then we need practical ways to reduce the global-warming-related emissions.

For these reasons, my next automobile purchase will be a plug-in hybrid electric vehicle (PHEV). I already buy green renewable power from my electric company. I hope GM will announce a PHEV soon! A small SUV-car-crossover vehicle in a PHEV would be ideal. (The Saturn Vue in a PHEV would be just fine.) If you can make is flex-fuel--then all the better.
I've got $30,000 waiting to give you...

Posted by: Original.Jeff@gmail.com on July 29, 2006 11:25 AM

Bob, please tell us you are building the Camaro VERY soon. I'm getting impatient, need a new car, and have been scouting the imports for a new sports coupe. You tell us you are in fact building the Camaro and I will put all of the cars I've been looking at to the curb and place an order for a Z28 6 speed.

BUILD THE CAMARO!

Posted by: Joe on July 29, 2006 11:32 AM

Great job Rick,

I hope you can keep all the momentum moving forward. It looks like a real turn around to me.

The next major hurtle outside of eliminating the Nissan/Renault distraction would be the UAW negotiations coming up. I hope the unions realize you guys are not out of the woods yet because you started making a profit again. The union’s sacrifices are another major part of making it possible for GM to continue as a viable entity. I know you are thankful for them participating in the attrition program. This needs to be a win/win in a big way to continue the momentum. It is resetting the union wage scale back to where they make a decent wage and you can earn a decent profit to fund the next round of products as well as the pensions, benefits, and all related costs to survival.

Keep the good product rolling and we will keep buying. One of the previous posts made a remark about cars being built in Canada, Mexico, and Korea. True fans of GM products should not have an issue of where your products are built as long as they have the safety, quality, performance, value, and style that you are now offering. The profits all return to Detroit where the local region needs a boost.

Thank you for taking the time to address us using this format as it shows you are a true class act. Your good work will have a long lasting legacy in the storied GM history books. Peace and good luck moving forward.

Posted by: Jeff Crew on July 29, 2006 12:06 PM

With all those Toyota All-American ads that are being blasted over the TV, you guys really need to put out there countering ads, such as those mentioning that you have 54 US factories to their 10, with 10 in Ohio alone, and other ads that you already have, but need to really show them. You guys can prove your quality now, but you need to prove to everyone else just how important you are, how buying from GM is better, and that GM is superior to Toyota. One area that really needs some help is weeding out the bad GM dealerships around the nation. We don't need a bad dealership ruining potential customer's just because they are being jerks. Car sales is all about customer service, way before price comes into account.

Posted by: Chad C on July 29, 2006 1:41 PM

Good that everything looks fine at the corporate offices and everybody is congratulating everybody but here in the trenches (I am a consumer-ex potential buyer) I have to say that it is going to take a great effort to turn around this monster. I was shopping for an SUV after going to Acura and Nissan I stopped at a GM dealership here in Miami. Oh my, the place was falling apart (Maroone Miami), I have never entered such an outdated place. How can you expect to sell cars (a nice Corvette) costing $75k in a place like that? Then I went to see a Tahoe SUV. Wow, the 70's are still going strong, the way the third row is supposed to work is at least 20 years old. Haven't a GM engineer check out the competition, now days the seat hide flush on the trunk. Then I tried to move the seat in the second row so I could get in, forget it, it was an exercise that the salesman and myself couldn't master after 10 minutes of trying. I do not see my wife (not to mention my kids) trying to operate this. So, off I went back to Nissan and made a deal on a new SUV.
But I am fustrated that a company like GM can not or will not make quality and smart cars. I think is is more arrogance to a market that were yours (GM-Ford) but now is wiseing up and leaveing in throves. I think it is better to do less models but do them right than having 50 versions of the same outdated model just dressed in different branding. Please study the competition like Lexus and Acura did before taking on the germans, it took discipline and focus but, look at the results.
PS. drop the focus groups, they are never right and they produce ugly cars.

Posted by: Juan-Antonio Garcia on July 29, 2006 2:33 PM

Keep in mind that it's better to have popular cars and adequate management than adequate cars and popular management.

Posted by: Tom W on July 29, 2006 5:11 PM

All I have to say is AWESOME JOB!!! I'm loving the new vehicles! Cant wait to see what eles is in store!!

Posted by: JD on July 29, 2006 5:11 PM

Congratulations Rick! I am impressed with what you have accomplished in such a relatively short time. Keep up the good work. You are definitely the right man to lead GM's turnaround and there is no other one capable to do so. (Never thought I'd admit to that last comment, but you made a believer out of me.)

Nix-ay on the Renault/Nissan deal. It favors Cap'n Kirk and besides Ghosn is a bad fit for GM. I could go on and on about the reasons, but I am sure your investigations will prove me correct.

Now is the time for GM to stay focused on the turnaround you have started. Partnerships et al need to be kept on the back burner until GM is healthy again. Perhaps some collaberative work will ensue from these deliberations, but that should be the limit for now.

Let's get the production range in line today:

CADILLAC should only produce luxury RWD cars and SUVs.

CHEVROLET should produce mass market FWD cars (exceptions: Corvette and Camaro). Oh, how about bringing back the classic El Camino too, huh?
CHEVROLET TRUCKS is just ducky as is.

PONTIAC should produce only RWD cars.

BUICK should produce only AWD cars.

SATURN should only produce hybrids to emphasize GM's commitment to higher technology and fuel efficiency.

GMC should only produce MD and HD commercial trucks. Drop the Chevy clones.

SAAB should continue building FWD and AWD 4 and 6 cylinder turbo niche cars and SUVs. Caddy BLS is history please.

HUMMER should just keep humming along as is, although I would latch onto a Hummer pick-up in a flash if you made one. :)

How about getting Opel and/or Daewoo to manufacture entry level tuner cars right here in America? Or import them from Brazil, Argentina or Mexico if the exchange rate remains favorable.

Thanks for being more up front and open lately. That really puts the icing on the cake for me anyway.

PPS. Let Lutz loose on the line-up. We need more winning styles like Solstice and Sky. He has done wonders with the recent make-overs, but they will be short lived. New designs are necessary yesterday!

Posted by: jamie on July 29, 2006 6:02 PM

Dear Mr Wagoner
I am impressed by your cost cutting factor in your turnaround efforts. I am less impressed by your product efforts. I have had several occasions to rent several different models of your new vehicles. The first one was the new malibu. The biggest disapointment was the styling. I think my old 98 looked better. Then the interior,the performance(acceleratiom,breaking,handling,gas milage)were all disapointing.The samething goes for a pontiac G6 I rented also for a cobalt I rented. I have read several comparson tests of your vehicles and they eighter place last or near the bottim but never first.These are things that desperately need to change if you want your turnaround to succede. There are a couple of other things that I am disapointed in. The looks of the new pickups and your not giving the green light to the new camaro.

Posted by: Felix Biggers on July 29, 2006 6:41 PM

Sounds good, but next time you just might want to get the blog entry out before Robert Farago's corresponding GM Deathwatch entry comes out.

Posted by: Shane Bailey on July 29, 2006 7:11 PM

Rick,

I find this comment interesting - "Beyond cutting costs, we need to keep up our recent momentum in growing revenue with exciting cars and trucks." GM's focus on reducing costs does nothing to insure the pipeline is full of exciting cars and trucks. Quite the opposite will be true - dull, lackluster, and and overwhelming sense of cheapness - that what your purchasing team has accomplished for you. Please Rick for the good of GM, get some guts and start investing in the product. New vehicles in the pipeline can't be driven solely on "make it cheap". You'll never win back the American consumer with that mentality.

Posted by: John Bauer on July 29, 2006 7:33 PM

Yes, GM is a big ship, but you haven't turned it around yet. You've merely plugged the holes to keep it from sinking. When you are able to maintain, or even grow, your US market share for several years in a row, then you can claim to have turned it around. Until that time, you're just treading water. That being said, I'm one former GM worker who is pulling for you.

Posted by: Dale Jones on July 30, 2006 12:21 AM

Rick-
Get rid of the electric steering.
Put the parking brake on the console.
Put tilt and telescoping steering wheels in every vehicle.
4 Wheel disc brakes on all vehicles.
Onstar standard on all vehicles.
Put 5 or 6 speed auto transmissions in every vehicle.
Use Your Best V6 engines in every vehicle. You don't need 12 engines, just pick a few great engines and use them!
Replace the Colorado/Canyon with something world class and ditch the 5 cylinder engines-noone wants them.
Use pushrods in trucks and sports cars only, everything else should get the better V6 engines-everything.
Make the Ecotec Engines world class.
Improve all interiors.
Increase your warranties across the board! NOW
Never ever dumb down a concept car like you did with the Aura again.
Get over the fake wood obsession.
The brake pedal should be level with the gas pedal, not 2 inches higher, on all vehicles! The Impala is a bitch to drive because of this, my ankle is killing me.
Seats in all vehicles should be amazingly comfortable.
Window switches in all vehicles belong on the door, not the console.
Strive to be the best, not just competitive.
Bring designs like the Captiva and Corsa and Holdens to the US, don't stick us with crap like the Equinox, Ion, etc.
Pontiac should be all muscle all the time. Ditch the G6 which almost everyone I have heard from finds it uncomfortable, the G5? Why does this exist?
Completely seperate Pontiac from Chevy and stop dumbing down Chevy to make Pontiac look good. The base engine in the Malibu is too weak to make the base engine in the G6 look good-very stupid.
Just as you are making Saturn basically Opel in America, make Pontiac Holden in America. And use heritage names-dump the G names. Firebird, Tempest, Bonneville, Catalina, GTO, LeMans-great names that mean something, not G7!
Increase content in Buicks (no telescoping steering wheel in the Lucerne and the 3800 as base engine-are ya kidding me!?), and use more distinctive styling-stop being so timid!
The Caddy DTS should be retro and bring back the DeVille name -it is much different than the CTS, STS, etc and thats OK-it should be.


You do all these things I mentioned and I will believe in GM's future.
ALL of these things and I will be convinced. Otherwise, you're just blowing smoke, IMHO.

Posted by: SteveG on July 30, 2006 1:07 AM

Mr. Wagoner:

GM seems to have done its best to decimate and ignore Buick, but it's still one of your brands and deserves to be talked about. Buick was the cornerstone of GM and provided untold sums of profit over the years, at least until you began starving it of competitive product in growing segments. GM should be proud that 10,690 Buick Lucernes were sold in June 2006, but it wasn't mentioned. And while I'm asking questions, where's a halo car for Buick? Why is the Enclave third in the Lambda release cadence, when Buick needs it now, more than the other divisions need theirs? As late as 2004, it was announced that Buick was scheduled to receive $3 billion investment. What happened to that? If you need ideas for Buick, either look into Buick's past for inspiration or simply ask your loyal Buick customers like me.

Posted by: Christopher Popa on July 30, 2006 1:24 AM

"T his speech by President Bush -- who is fond of telling the Big Three to suck it up and build relevant vehicles -- is brought to you by Toyota Motor Corp. No kidding, Bush's speech to the National Association of Manufacturers Thursday in Washington was sponsored by four major manufacturers, including Toyota. "Toyota is a good corporate citizen and they want the world to know it," explained Hank Cox, vice president of media relations at NAM.

The four companies' logos were prominently displayed on a billboard outside the ballroom.

At least Bush referred to NAM's president, former Michigan Gov. John Engler, as "my buddy."
"

- Detroit News
http://detroitnews.com/apps/pbcs.dll/article?AID=/20060729/AUTO01/607290393/1148

When is someone going to let Bush know that without acting in some fastion the entire United States economy will be handed to the japanese on a platter... and there is nothing that GM, GE, or Microsoft can do about it... We are amidst the worlds largest transfer of wealth from one country to another

Posted by: Tim Geisler on July 30, 2006 1:35 AM

Mr. Wagoner:

Bravo on the awesome progress that you and the people of General Motors have made. The people of GM have all pitched in so that GM could keep afloat and live to fight again.

I think this quarter's results give strong hope to GM-loyalists like myself that GM is going in all the right directions. I think there's an excitement building about GM and its new products, an excitement that I've never seen before. It also give hope that GM will not be pulled into an alliance with Renault/Nissan. I am a loyal GM customer, have always been so, and will contine to be so if GM remains independent. The idea of a Japanese company holding a stake in GM is a slap in the face to people like myself.

Kudos as well to realize that in the end, it's all about the product. For years I watched for hot "gotta have" GM products to be disappoined time and again. Never has GM product potential been so promising - at least not in my 27 year lifetime. Sure, GM would have a couple of hot cars here and there, but it was mostly look-alike boring cars. But now...ALL the product is just awesome and just keeps getting better. Interiors are quickly becoming world-class. Cheap interiors on GM cars had always been a peeve of mine. And its refreshing to see that the "good enough" cycle seems to be breaking.

I must say that your leadership during this challenging time for General Motors has been stellar. To have the facilities to be so steady and collected at the wheel in such tough times is admirable. I think that it kept GM from becoming the subject of a media soap opera on GM's troubles/decline.

But now is not the time for GM to rest on its laurels - there's still a long way to go to GMs return to glory, and you'd better believe the competition isn't resting on its laurels. If GM's history has taught us anything, the race to victory is a long one, and one that is never really finished. The task of rebuilding a world class company that builds world class cars will never truly be completed. Don't let GM get complacent with itself, and don't let GM forget the mistakes of its past. They will be a great soucre of guidance on what got GM into trouble in the first place.

Thanks to you as well for posting in such a pubic outlet and forum. It's so rare that we are presented with an opportunity to express our thoughts to the guy at the top. This shows that you are a true class act, and its nice to see that a GM CEO has a human touch. I think it also speaks to the fact that you have a great level of confidence in your plans for General Motors.

Overall, excellent job!! This is merely the start of GM's triumphant return to glory. Keep on rolling, GM! Show the world how brightly the "Mark of Excellence" can shine!

Kevin
Levittown, PA


Posted by: Kevin Knobl on July 30, 2006 7:38 AM

Rick,

GREAT JOB! I know its far far from over, but its a great start to the turnaround. I was in Shanghai last week, and loved that fact that the city police there drive Buick Regals!

Couple of little ideas;

1) This website always has passionate GM fans adding in. But most Americans needed to be reminded about how there is still a loyal GM following. Given the YouTube world we live in, how about a contest where people film there own commercial about GM and a specific 2006 car? I have always had an idea for a Corvette ad, and I am sure many people feel the same. Pick a winner for every car division, and put them on the air!

2) Increase the warranties.

3) The GTO was a great car, just a bit bland. May the next one have the same engineering, but be truly appealing to the eye.

Good luck!

Posted by: Eric Planey on July 30, 2006 8:09 AM

Great job. GM is on the right way.
Keep on introducing new cars (as opposed to trucks).
GM should use the European platforms from OPEL wisely (When I look at the Chevy Malibu, I can't understand how could the American engineers take the OPEL VECTRA, and make it so ugly).

And last thing: Don't make an alliance with Renault / Nissan. GM doesn't need anything from them. Moreover, GM should keep it's independence.

Posted by: Ronen on July 30, 2006 8:23 AM

Felix,

When your only focus is to cut costs, something has to give. Whether it's the quality, look, feel, performance, features, etc - cutting costs = lower level content. Period.

So congratulations Rick. You and your team are well on your way to building cheap decontented cars that nobody wants. Whatever happened to Lutz's "gotta have" mantra?

Posted by: Mark Luturno on July 30, 2006 9:04 AM

The turnaround is impressive. However, it's costing GM waaaayyyy to much to layoff employees. It's 2006 and not 1976.

I got laid off in 2002, and received one week of unemployment compensation (around $413) before I found another job in 2 weeks. That's considerably less than $$$ 140,000 $$$.

What about the Job Banks program? Dump that too already!

That's A HUGE sum of money that could be put into product development.

Posted by: Buick Diesel on July 30, 2006 11:08 AM

Hi, Mr. Wagoner. First of all, I believe that you have all to put GM back on track. You did it when you were at charge here in Brazil and the 90s were maybe the greatest years of GMB.
As other people that commented here in Fast Lane, I don't see any future in an association with Renault-Nissan, but you can deal with them when it comes to make GM more efficient. As you got rid of your shares in Suzuki, Fiat and Subaru, you can also think the same way in other business.

Nissan has Infiniti for luxury rides, and what does have Renault? In this year, we heard rumors about Jaguar's sale to Renault, but it didn't go ahead. But Saab would be a perfect fit for them. What is the function of a low-selling brand in GM group? Saab restricted Opel to go a little upscale (and they had tradition in big luxury cars as the Commodore, Admiral, Diplomat and, from the 80s to 90s, the Omegas A and B and the Senator). But, as Opel was always keeping their rides updated, Saab under GM umbrella evoluted as slow as when it was out. How many time you kept the 900/9-3 more or less the same until the current Epsilon generation arrived? And what about the 9-5? How much money did you spend in the Swedish group and how was the return for it? And I'm talking about the worldwide Saabs, not the regionals as are the 9-2 and 9-7.
Instead of making BLSs in Trollhattan only to justify the existence of this plant and thinking about commiting the heresy of shifting the production of the 9-*s to Germany, isn't it time to sell Saab to Renault-Nissan? It would allow Opel to come back in the upscale (maybe using the Zeta platform), acting as Peugeot and Citroën do: PSA has mass-market cars like 207, C4 and 407, but they never stayed out of the luxury business. In the years that Citroën was out because phased out the XM, Peugeot stayed with its 607. Now, Citroën is also back to this segment with the C6. And what Opel did in this time? Went more and more donwscale, even discontinuing the Omega and trying to make people believe that the Signum was the replacement, not a hatch version of Vectra C in the long wheelbase Epsilon. Did it work? I don't think so.

The selling of Saab would also allow GM to keep full effort in the luxury market using Cadillac. The biggest cost would be shifting the BLSs production from Trolhattan to Russelheim. Hey, didn't you produced a Caddy in Germany? Yes, but this one wouldn't cross the Atlantic as did the Catera.
Isn't a stronger Opel with a broader lineup better than dividing appeal with a so-so Saab? Isn't concentring the efforts in Cadillac better than splitting with the Sweden? Can't GM make its own turbo engines without external help?

Posted by: André on July 30, 2006 4:32 PM

Rick,

I'm glad to here about the good results that GM has had the cars are more attractive the prices on have been reasonable the long term quality is yet too be determined but most likely improved. In reguards to the Monte Carlo needing an overhual, I think it could to a certain degree in terms of image. The 5.3 is a 327cid. If i'm not mistaken that is a famous motor. Why isn't that being advertised? The wheels on the Monte Carlo SS are unattractive and oversized. Why not have a thinner 5-spoke similar to the camaro concept. The Monte Carlo SS and the Imapala SS for that matter lack any image at all to sell to a performance buyer. Add a stripe, add decals, louder colors, a hood scoop, anything to get this car selling as a realistic competator to the mustang to buy time to unleash a Camaro and GTO and hopefully a Trans Am with flawless looks and design. Show Ford and Dodge and your customers a healthy,exciting,colorful GM instead of a company fighting to stay on top of the auto industry. I'm not a big fan of 4-6 cyl performance market but the Coblat SS looks fun and is impressive. It was exactly what GM needed to do to compete with the SRT-4 and its a very successful model all around. I'd love to see this with the upcoming cars as well. Good job and thank you for the updates


Posted by: Brian R on July 30, 2006 5:21 PM

Yes, I see great progress and the bottom is about near, if not already met. What I would like to see is more emphasis on the midsized and compact cars, as well as atleast on or two more sub compacts. Obviously, the current business conditions don't bare well for such things, but hopefully in another year as the turn around gets into overdrive, you guys can make those imports fight for every sale they have for the subcompacts, compacts, and midsizers.

Posted by: Joe Gakenheimer on July 30, 2006 6:38 PM

Mr. Wagoner -- Way to go on reconstituting GM especially since there are so many hostile forces you face. Good work. Wishing you continued success and a new GM even better than the storied GM of old.

Posted by: Gary Cummings on July 30, 2006 8:49 PM

Mr. Wagoner: Congratulations, your vision of restructuring GM operations on a global basis has GM on track for a turn around and is proving successful with real world profits.

I think GM should continue on this strategy and limit any alliance with Nissan/Renault to CVT and diesel technology similar to the GM/Ford 6-speed automatic joint venture or the GM/Daimler Chrysler/BMW twin mode hybrid one.

GM has world class employees who as you point out are creating great new products, any outside alliance will complicate product development going forward and divert much needed energy away from current successful global projects.

On the product side; Chevrolet should offer the HHR in European and Asian markets as well as South America and India. This is the one U.S. designed model that can find volume sales success worldwide and since it is made in Mexico should enjoy a competitive cost structure.

The current global Chevrolet line-up has proven successful but needs new products like the HHR to maintain this momentum. A redesigned Vivant is needed and offering the Meriva and Combo as Chevrolets worldwide would improve sales. The Matiz may even find success in the U.S. market if fitted with a 1.2L Ecotec with Easytronic.

The global 4-cylinder engine line needs to be consolidated and the 1.8L should be offered in the U.S. market Cobalt along with the Easytronic transmission. The new Aveo could offer the 1.4L ecotec and easytronic for a model capable of over 40 MPG.

The new Corsa should be offered as a Saturn (Opel styling) and/or a Pontiac (Vauxhall styling) with new 2-Door Coupe and 4-Door sedan versions for the U.S. market. A new Holden Cruz could be derived from the Corsa platform and offered worldwide (U.S. included). The Corsa based Montana pickup would be a great addition to the U.S. market and offer pickup buyers a model capable of well over 30 MPG.

GM needs models like these in the U.S. market now.

Buyers of these high MPG models will be in the market for other vehicles since many of these buyers will use the high MPG vehicle primarily for commuting to work. They most likely already own another vehicle(s) for other uses and would give a GM product a first look if they are happy with the high MPG model.

Thanks for your time and keep GM on the same successful path you have had it on for the past year.

Posted by: Rick Lupori on July 30, 2006 10:05 PM

Rick,
Good to see you post here. I have to give credit to any chairman of a company who takes the time to answer customer e-mails like you do. I am still waiting on that new fiero, though.

I like others see no benefit to an alliance with Nissan and Renault. What GM needs to do is focus more attention on the car side of things, especially Buick and Pontiac.
A balanced product portfolio is key to a complete GM turnaround.

Why not sell Saab, it is a drain on GM NA resources. Leverage the companies great heritage and bring back some of those well-known models.
People want to buy American, but too many unique GM cars were eliminated when GM chose to become General Trucks. Some of these names like Belair and Chevelle are worth their weight in gold.

GM's tactics and strategy could use improving. The Solstice/Sky twins are a good case study. There is no reason a Sky coupe couldnt move 50k units alone annually, but instead GM builds 2 convertibles that wont clear 35k units combined. Plastic body panels would have allowed demand to be better met. Why not put the two mill-drill machines you have sitting to good use?The Sky is a hot product, the one year wait for one is not.

Dont fix what isnt broken. The model renaming, especially
at Buick was flawed. Give us back some real names at Pontiac. Did anyone ask the older Cadillac buyers what they think about the new names? Remember to be customer focused. Heritage sells, look at the Mustang.

There are people here who are passionate and very knowledgeable about your products and could help in your turnaround, but cant unless given the opportunity.

Posted by: gtjeff on July 31, 2006 1:11 AM

Dear Mr. Wagoner,
Congratulations also from good old Germany. It's encouraging, that your sales are climbing in Europe, too, but I think this still could be improved by doing some more promotion on your Cadillac- and Chevrolet-brands. For example, I have never seen a spot about the CTS or BLS on TV, nor an advertisement at a newspaper over here. Those Cadillac-Experience-Centers might be fine, but I think, it would be important to inform the public some more about their existence and the presence of the Cadillac-brand. It's also absolutely imperative to improve the perception of your US-products over here. A lot of people in Europe still believe in those atrocity-stories about the gas-consumption of your portfolio and, for example, they are amazed everytime, when I am telling them about the good fuel-efficiency of my 2001 Alero.

Regarding Chevrolet Germany there already are TV-spots (etc.), but I believe they are too general, not featuring enough the advantages of this brand, like (e.g.): excellent value for the money, whole line-up available with optional LPG-system (wonderful thing since 1 litre gasoline costs 1.75 US$ over here). In addition, there has been no spot, presenting a preview on the all-new Epica and important Captiva so far. In my opinion the sub-compact Kalos (Aveo hatchback in the USA) and Matiz also should get separate promotion, because these are the two models, which are most important to Chevrolet's market-share over here, as I believe.

I have no doubt, you are continuing a great job for the prosperity of GM. Thank you for paying attention.

Posted by: Mr. Langlitz (Germany) on July 31, 2006 5:05 AM

Rick,
Thanks for the update. I agree we've turned the corner & are gaining momentum. I enjoy working for GM since it's an American company - any sort of deal with Nissan is going to be a huge moral killer. We don't need their help. Their minivan is actually worse than ours & their full size SUV is a major eye sore. Didn't we just sell off all our stakes in other car companies: Fuji, Fiat, Isuzu....
Keep up the good work & expediate the Camaro & plug in hybrids.

Posted by: joe connelly on July 31, 2006 11:19 AM

Rick,
Thanks for the update. I agree we've turned the corner & are gaining momentum. I enjoy working for GM since it's an American company - any sort of deal with Nissan is going to be a huge moral killer. We don't need their help. Their minivan is actually worse than ours & their full size SUV is a major eye sore. Didn't we just sell off all our stakes in other car companies: Fuji, Fiat, Isuzu....
Keep up the good work & expediate the Camaro & plug in hybrids.

Posted by: joe connelly on July 31, 2006 11:19 AM

When I was a kid (I'm 49) there seemed to be a few "strange" people in town who drove Ramblers and Studebakers. From what I've heard over the years they seem to have been pretty good cars, but they had a loser image. That's where GM is now in cars. You seem to still have a pretty good reputation with trucks.

It's sad, but when you see a person driving a late model GM car you automatically assume it's either a rental or was purchased used. This image drastically effects resale value.

I like GM so I hope you get your prestige back. I'm just not sure how you will do that or how many years it could take.

Posted by: Doug on July 31, 2006 12:07 PM

"Can GM make a V-8 that gets 30 mpg? A 30 MPG V-8 offering would really energize sales. Make it flex fuel to boot."

It is actually fairly common to see 1998-2002 Camaros and Trans Ams and 1997-present Corvettes knock down 30 ACTUAL highway mpg with a 6-speed transmission. If you're gentle, you can do it too!

Posted by: PacerX on July 31, 2006 2:14 PM

It saddens me when people scream to sell Saab. What GM should do instead is invigorate Saab with fresh products that still touch with Saab heritage. Saab, after all, is GM's only European premium brand.

Posted by: Dan Palka on July 31, 2006 5:07 PM

I think Rick Wagoner is doing an excellent turnaround with such a giant ship. Any such plans of a "merger" should be nixed. I think these takeovers only line the pockets of very few!

Posted by: getalifeagain on July 31, 2006 10:37 PM

Rick
Nice job with the start to the turnaround. I bought a CTS last November and I have to admit, I love it. At 25, a nice first car. I love it.

Posted by: Doug Bismack on July 31, 2006 11:06 PM

One quarter’s numbers does not a turnaround make.

When the new Cadillac STS came out I was impressed with the exterior styling (particularly in comparison to the awful baroque-styled BMW 5-series). At the next auto show I checked it out … and found an interior that (for its price range) was quite cheap in appearance and tactile feel. I had the same (disappointed) reaction when I looked at the interiors of the CTS / SRX.

“Typical GM,” I thought to myself, “they’ve improved the car over its predecessor, but are still behind the competition. GM ‘benchmarks’ its own last generation inferiorities instead of the competition; obviously GM’s ‘beancounter’ multi-decade culture of mediocrity and corner-cutting is alive and well.”

I also had the misfortune of leasing a 2003 SAAB 9-3 (a/k/a Malibu / G6) – I actually had a 1973 FIAT 128 that was more reliable, and had fewer squeaks and rattles to boot (the stereo systems were equally poor in sound quality).

One would think that decades of declining market share would finally force a change of culture at GM. Apparently not …

Posted by: Tom on August 1, 2006 12:27 AM

I never had one microgram of doubt that the ship will be fixed. Now that it is heading in the right direction, there is no need for a distraction similar to the drag caused by a Renault-Nissan alliance.

Keep up the good work, and congratulations for the whole team effort. And now, enough celebration and back to work guys :-)

Posted by: Hacin on August 1, 2006 12:30 AM

We love to see that you are making a difference in how many mile per gallon each automobile gets. All your efforts are helpful.

Posted by: Cheap Auto Insurance on August 1, 2006 2:12 AM

While the update on the turnaround is indeed welcome news, I have to wonder exactly where GM is reinvesting in itself. You say that GM is coming back as a product driven company. To an extent, I believe you. The new Buicks are quite well done. As are the new Cadillacs, and the Corvette just keeps getting better. The Sky is a nice little car... for a metal bodied Saturn. However, your small sedans and coupes are needing some serious help. As the cost of fuel is driving the market more and more away from trucks, I think it would be wise for GM to invest in your small car programs. By "Small car" I am referring to cars such as the Malibu and the Cobalt. For instance, I happen to like my Saturn ION very well. Though as I have stated elsewhere on this blog, the interior was made rather cheap looking. I am quite sure that GM has plenty of vynil and other nicer materials that could be used to make a good little car like my ION nicer. The savings in materials costs by using common interior materials instead of making special textured plastic parts might also be worth looking at. Seriously, it will just make GM's low end cars that much nicer than the competition. Car buyng, for many is every bit as tactile as it is financial. If a customer knows that they can get a competitors car at the same price with a nicer interior, they may go ahead and get it, even though the competitors car may lack many of the features of your car. I'd also humbly suggest that the Cobalt and G5 hit a model turnaround earlier than what may seem usual. They look entirely to much like the carrs they replace, and many are convinced that they are just another restyle of the old cars. The G6 suffered from looking to much like the previous Grand Am as well.

Posted by: Chris Rueter on August 1, 2006 2:19 AM

I'm young at 22, and I assume a 'coveted consumer' by the General and other makers.

In my opinion, while Chevy is still pretty stagnant considering the current product line up, Pontiac and Saturn are becoming more and more desirable.

New Saturn products such as the Aura, and upcoming Ion replacement rumors, are great. The Aura based on an Opel, and bring over the Astra for an Ion replacement, awesome. Especially nice are the powertrains.

The G6, especially the coupe, is a damned sexy midsize compared to Camcord. The addition of the 3.6 liter DOHC V6 coupled to a 6AT with manu-matic mode is great.

I am also starting to see new products from other GM lines that are intriguing to me. The next Impala rumored to be RWD, Camaro on its way, and spy shots of a new Malibu with aggressive looking lines under the camo makes Chevy a brand I will be closely watching over the next year or two.

Though normally I look at imports for a car, I am waiting on my next purchase (which was close to being a new Honda) to see what GM does in the upcoming months. Specifically, an Opel Astra hatch with an aggressive engine and great handling as a Saturn would have me drooling.

I'm waiting, GM. Don't let me down!

Posted by: Nathan Sweeney on August 1, 2006 3:35 AM

Dear Mr. Palka,

I believe there's no reason to be worried about Saab's future anymore. You might have read about the rising sales of Saab-models. In my opinion as well, it would have been a mistake to sell Saab, the same is valid for Hummer. Even here, where you have to pay about 6.50 US$ (!!!) for a gallon of gasoline, the Hummer-brand starts to become "cult" and more popular step by step. So I am glad, GM-management didn't act like proposed by certain people...

By the way, in Trollhattan they are producing the Cadillac BLS, on which I had a closer look recently. It's extremely well-built and even German car magazines, which are over-critical against US-brands very often, had to acknowledge: the BLS is a great car.

Posted by: Mr. Langlitz (Germany) on August 1, 2006 4:19 AM

Rick:

At the GM "The Drive" in Las Vegas, I recently drove a Cadillac STS and Chevrolet Corvette. I was very surprised at how well they drove, the excellent interior quality, and smoothness of the drivetrain. GM is definitely doing something right.

My wife and I are looking for a family vehicle - cannot wait for the GMC Acadia to come out. Hope it gets good gas mileage and excellent crash test ratings.

But what about the Chevrolet Equinox and Pontiac Torrent? The Chinese-built 3.4 V6 is disappointing, and one reason I won't buy these SUVs. I think GM should have put the 3.5 V-6 standard, 3.9 V-6 optional, and include 4-wheel disc brakes. To me, your cost-cutting accountants ("bean counters") keep ruining your vehicles. The 3.5 and 3.9 are excellent engines, so why use an old engine, especially one made in China? Sure, the "bean counters" save a few coins in the short run, but ruin GM's reputation in the long run, every time. This is what keeps eating away at GM's market share. Got to quit letting them do that. Please put the 3.5 or 3.9 V-6 in these SUVs! I don't want to buy a Toyota, Honda, or Nissan!

Thanks, hope GM turns around.

Posted by: James Freitas on August 1, 2006 5:22 AM

The real sign of the turnaround will be GM having all its vehicles get over 30mpg, and a couple that get 40+ mpg. Otherwise, it's just a course correction.

Posted by: Paul on August 1, 2006 9:47 AM

I though badge engineering was dead!! What's up with the G5?

And bringing other models not available in the US in as Saturns is not badge engineering that's pretty smart if they can come at a good price. But the G5 to compete with your own Cobalt I don't get that.

What do you make for me, a 26 year old male with a good job wanting a fun car and not an SUV (but those are nice) right now?

Posted by: Joel on August 1, 2006 10:38 AM

Posted by: Frank Nic on August 1, 2006 11:00 AM

Look at this! GM Daewoo also has something to celebrate. GM's engagement seems to pay off... See full story: http://english.chosun.com/w21data/html/news/200608/200608010028.html

Posted by: Mr. Langlitz (Germany) on August 1, 2006 11:02 AM

Rick,

I'm glad to hear that you believe the GM turnaround to be on track. I will respectfully disagree with you only slightly and say that you are off to a good start. The real test to your turnaround is twofold:

1. Can your new GMT900 based lineup of pickup trucks be the commercial success that you need them to be?
To this question, the signs are encouraging. Even with gas at $3 per gallon, the GMT900 based full-sized SUVs are selling well. They are also much better products than their predecessors and currently have class leading fuel economy. However, your competitors aren't sitting still and the market is gaining players daily. In the full-size truck market alone their are opposing entries from Ford, Dodge, Honda, Toyota, and Nissan. While this is a problem in and of itself, it is compounded by the fact that gas prices have not "spiked" as in the past. Instead, the price of oil is holding at these levels causing fuel prices to stay near the $3 per gallon level for the foreseeable future. In response, consumers are trending away from large trucks and truck-based SUVs. This is effectively shrinking the size of the market for full-size trucks and SUVs. This market shrinkage coupled with the increasing competition spells disaster for GM. Even if your market share in the full-size market stays constant, the shrinking market will ensure that fewer and fewer trucks are sold year over year. In addition, the increased competition for this smaller pool of buyers will inevitably lead to pricing pressures on all of the manufacturers. As prices fall and margins decrease, profitability in the segment will drop like a rock. You may corner the market on spurs, but does it really matter if nobody rides a horse?

2. Given the trend of consumers toward automobiles, the re-design of the core Impala, Malibu, and Cobalt products looms very large.
Let's face it, the market as a whole has not reacted favorably to the new Impala, Malibu, and Cobalt. Cobalt is in an incredibly competitive market against far superior products in the Honda Civic, Scion Xa and Xb, Honda Fit, Toyota Corolla and Yaris, Mazda 3, Dodge Caliber, etc etc etc. In no categories is the Cobalt a class leader in any of its iterations, and the styling is nowhere near as evocative as the other automobiles in its class (pretty sad when your styling is blander than the offerings from Toyota and Honda). The Malibu is a terrible car, and everyone from the critics to the pundits to the buying public agrees. The Impala has turned off everybody but the rental car companies, and you've finally quit selling to them since you were losing your shirt. Even the SS versions of these cars cannot overcome the combination of FWD, bland styling, poor interior quality, and ancient engines. The re-design of this core must come quickly given the trends in consumer interest, and you desperately need to hit at least one of the 3 out of the ballpark. Everything from the engine, to the suspension, to the interior of the re-designed lineup needs to be compared to the very best in class. Then, you need to take it up two steps in execution. Remember, your competitors are not sitting still in any of these categories either, and they are already way ahead of you.

I am a huge fan of American car companies and their strong history in performance and design. I want to see the big 3 on top again leading the pack rather than being ravaged by it. Your turnaround plan is merely in its infancy, and if you believe otherwise than you (and GM as a whole) are in grave danger. You cannot afford a product miss right now, and you cannot afford to alienate consumers by not having competitive products. The public is getting smarter as more and more information is available regarding different segments and the different players in them. Lead, Follow, or Get Out of the Way.

Nathan Lawless
Indianapolis, IN

Posted by: Nathan Lawless on August 1, 2006 1:50 PM

I agree wih the comments of Rick Lupori, 7/30, 10:05 PM. 40 mpg Aveo with 1.4 Ecotec - sold! 30+ mpg small pickup - sold! I am going to need something to replace my 160,000 mile S-10 pretty soon.

Thanks Joe Connelly, 7/31, 11:19 AM. Expedite the plug in hybrid. Amen.

Thanks Paul, 8/1, 9:47 AM. Absolutely right.

Hi Mr. Langlitz. Right on point as usual.

Posted by: noel park on August 1, 2006 6:02 PM

Mr. Wagoner,

Sounds like most GM loyal backers blogging don't want foreign companies to take pieces of GM in an alliance with Renault-Nissan or any other. You can say you have us behind you to say NO loud and clear. This is serious here.

We hope you'll send a clear message to opportunists who are ignoring GM customers.

Boycotts are possible. I suppose we are going to have to defer any decisions on a new GM car until we are sure this alliance thing is dead.

Ford's Premier Auto Group has many nice products and we'd chose them if GM left us.

There is bipartisan dissatisfaction with the policy coming out of Washington these days. The speech's Bush is making are unbelievable. There's bound to be a major realignment over this bunch. They have little or no regard for American business. They want to export debt and import foreign takeovers. This Administration has perpetuated turmoil, strife, and an energy crisis almost all by themselves. They've wrecked the stock market and the economy. And Bush has the nerve to say the US auto industry needs 'relevant products'? I almost fell off my chair when I read that he was making speeches at foreign owned tranplannts deriding American products. Maybe the Japanese should pay Bush's salary.

Let's hope better days are ahead.

GM should challenge anti-competive practices of the bond rating agencies, after 9/11, GM and many American companies have the right to ask for injunctive relief as well as for Congress to step in. GM should challenge the anti-competitive practices of Japanese banks instead of letting them walk all over America, and American business.

America matters, and Americans matter.

Posted by: Edwin on August 1, 2006 6:51 PM

Guess this was a good effort at trying to head off the bad news about July sales.

"The world's largest automaker's sales dropped 22.6 percent to 410,332 vehicles, down from 530,027 in July 2005. Truck sales plummeted 31 percent to 248,129 vehicles from 360,655 in the same month last year."

The fact is that GM is imploding as customers demand the small, efficient cars made by Toyota and Honda, not the big gas guzzlers that GM likes to make...

Posted by: GM Fan on August 1, 2006 11:17 PM

I just read an editorial in what I think is a diminutive newspaper about GM being in for it. Obviously I did not like it.

It stated that GM's huge loss in the 2nd quarter was inexcuseable. Well they did not give the whole story. This "inexcuseable" loss shall save countless billions for the future of GM.

Then it stated how GM's market share decline is GM's doom. Again he did not state that fleet sales have now been reduced drastically and more realistic numbers are coming out. Honestly, with the intense, global competition that GM is facing I think it is amazing that they hold about 24% of the US market!

So as far as GM being in for it, I think they are too; but only in for good things. When you hit bottom the only direction is UP.

Posted by: getalifeagain on August 2, 2006 2:57 AM

To GM Fan:

The decline in GM sales figures from July 05 to July 06 can be explained by two things you forgot to mention:

1) GM has reduced fleet sales. This is a good move on GMs part despite the fact that they will move less metal. Fleets sales are not large revenue generators anyway.

2) July 2005 was not a representative year due to the GM Employee Pricing For Everyone. This resulted in GM selling large numbers of cars and trucks and therefore artificially inflated sales figures at that time. Any time series graph, once seasonality has been removed, will make this very clear.

A better comparision would be July04 to July06 to remove the distortions caused by the GM Employee Pricing For Everyone program.

When the facts are clear, it illustrates that GM is not "imploding".

Cheers,
Chris

Posted by: Chris on August 2, 2006 10:07 AM

GM Fan,

I think the reason that GMs sales figures took such a hit this July compared to last, is not because of the gas guzzler situation (although im sure it didnt help), I think its because at this time last year the Employee pricing program was on fire on people were buying up GM vehicles left and right. I could be totally wrong, but I think that might be the main reason.

Posted by: Frank Nic on August 2, 2006 11:41 AM

For those who think July 2006 sales were bad I've got a litte news for you. GM market share for North America in July 2006 was 27% - the best month of 2006. Employee price for everyone drove incredible sales in July 2005. So to those who naysay - GM Sales were great for July 2006.

Posted by: Robert Wilson on August 2, 2006 1:08 PM

Good Job Rick! way to go.Forget about Renault and Nissan.Nothing is in for GM in that deal.They will benefit more.i hope this gives you an understanding of how people who love gm cars feel.None out of all the post I have read on the blog say or recomend a merger.
So far things look good and before we know it we will be back to where gm was a few years back.

Posted by: Ubesa Umwango on August 2, 2006 5:06 PM

OK - front-engine, rear-wheel-drive, struts at the front and a multilink rear suspension. All 4door cars across all lines - an m3 or a4 RWD smallish sedan for all lines-crush the 3 series.
Then everybody gets the peformance that they want - and saves money on a common platform -
NOW_ add in some really big buick and cadillac models, some based on 30s and 40's designs- (the 42 fwood limo in the movie aviator -copy it) the buick 39 grille is a landmark to me - use it across all buicks- and the portholes - big, round, chrome ones- the big buicks and cadillacs should have a lot of chrome - and i mean a ton - the 300 pointed the way for buick-
buick could and should all look like chopped and channeled mercs of old - look at gm inside news for their dream portfolio and throw in a 64 riviera clone, put a big r on it for retro-
caddies - that coupe showcar cien that everybody loved and the 16 as the new fleetwood doesnt have to be expensive just look good- a new flwood brougham (another fave of mine) especially 1982 models- a coupe and hardtop vert, a stretch sedan with a taller, hearse-like top and a sedan- all looking like the 82- use the r, again. could be rwdrivers.
- 2 words- a big woody wagon for bui, chev and cadillac - let the dlrships offer free varnishing for all. Like the old chris craft woodies.
- caddy restyles - sts body of the 92-97 sevilles with the current nose, my dad swore that the sts we shopped was the cts.
srx - keep it and add a 64 impala-styled square, square wagon as its twin in the caddy lineup - with that 64 nose, exactly. (throw in a flying lady hood ornament)
add some 1962-fins to the xlr to give it more presence-
dagostino customs -low volume, limited time models - the elvis, the marilyn for caddy and the gable for buick-check em out. Can you sell cars new with air bagged-suspensions to make them look cooler?

Posted by: ghughes on August 2, 2006 11:37 PM

I know this may be beating a dead horse, but I have a 1992 Oldsmobile, and I think it's wondering where the new kids are. Any chance of a return for the division? As a 3rd generation, highly satisfied Oldsmobile owner, I just have to ask. If there's no chance, I'll just have to settle for a used 4.0 Aurora. :)

Posted by: Daniel on August 3, 2006 1:58 AM

Mr. Wagoner,

I voted with my dollars as a way of showing confidence in GM North America...

I may not be the wealthiest guy in America, but an investment in a brand new 2006 Malibu Maxx is the boldest statement I can make.

Great car, we love the utility and the economy. We just took it on a 500 mile drive to a friend's wedding and to drop my daughter off at her high school's band camp. The car has a green motor i.e., under 300 miles when we started out.

My teenage daughters have plenty of room for gangly legs with a 112" wheelbase. Plenty of room in a midsized car with a hatchback - I've waited many years for another domestic hatchback this size. With high temps outside, we ran the air constantly, we drove slightly above the speed limits in Michigan, Ohio and Indiana and the car returned 29.0 MPG.

The Maxx has earned a spot in my heart, and we're just one month into ownership!

Posted by: geozinger on August 3, 2006 2:22 PM

Hey, it's me again...
It's good to see that GM management is taking this blog thing seriously. THAT is thhe best news I have heard/seen from GM for years. Before I make my own comments on Mr. Waggoner and his take on the state of GM, I would like to address some of the bloggers who seem to think that GM can be saved by a Camaro, or a retro Buick. Please ladies and gentlemen, climb out of your cold war bunkers and see what the market (consumers), want. Oh yeah, I will give you the point that a few thousand Camaros may be nice (with gas at $3.00 a gallon it would be nice, at $4.00 a gallon it would be a crazy purchase by anybody with an entry level job.) In my opinion, and it isn't humble, GM IS on the right track BUT it is a very fragile road. Here is my take on what GM SHOULD be in the world. First, GM should already be leading the automobile industry in every category; design, engine development, interior ergonomics, comfort, performance, etc.
GM should, but isn't the leader in the area of providing the benchmark car in every segment. Can it do it? The answer is yes, but the quickest way too do it is with thhe merger. Although Nissan and Renault are not the powers in the auto world that some think, they do a few things better than GM. A merger would energize the design departments and move the powerplant development efforts forward at a faster pace.
I have owned over forty vehicles, many GM, the last GM auto owned was a Cavalier. I tried to own two of the old Malibus, but franky could not afford the trouble they caused me taking them in for constant repair. The Cavalier was a decent car, is still running, but with a 120,000 miles, too many things are going or have gone bad during the last 30,000 miles, Without going into details, my Corolla is a much more care free ride. In the long run, THAT feeling has to be conveyed to the new GM owner. Care free driving. While it's true I am no longer an "enthusiast" of driving, I do appreciate a well made item. I work in the quality assurance field and know a little about what makes an item desireable and what is a waste of time. (I am a very GOOD consumer)
Daewoo is a good example of a GOOD move by GM, great quality from their factories. I hope GM will learn from them what they learned from their firts great experiment... Saturn. Customers know what they want, don't try to sell garbage, no matter what badge it's wrapped in. I thought a merger between Saturn and Saab would be inevitable, but GM recognized the same problem, but came uup with its own solution, again a GREAT move. Opel (German) engineering and design will save the brand, and may save GM.
I could go on, but won't. V-8s are needed, even though I am not very happy about it, GM needs to get a great engine out there, and quickly.
But for any car maker to stay in business, certain items cannot be ignored. To some people cars are an appliance. (Corollla) so make the best appliance you can with attributesd that sell appliances. What do people ask when they buy a washing machine? The wattage of the motor, or the pumping capacity of the pumps are not discussed, although it is implied with the question; "How long will it last after I get it home."
Build a car that gets 50-60 mpg, looks nice and will not begin to fall apart after 60,00 miles. Make it last, it won't hurt sales, people will get sick of it and buy a new car after three years anyway. The used one will be resold to an entry level buyer at a very good resale price, and GM will start to have the reputation it deserves.
I have said enough.
Better engines, More fule efficient engines, and oh yeah please make the Camaro, it will save your company. (kidding).
One last thing. Your new trucks are the best on the road. The interiors have Mercedes and Lexus drooling, but the money invested in that segment may not yield the results you are looking for. But now you know what the little cars need to hhave to sell, so make them and they will beat downb your door to buy them.
Thanks for the opportunity to express my opinion. GM needs top survive for US industry to survive. Good luck

Posted by: Jan Bayus on August 3, 2006 7:51 PM

Jan Bayus, August 3, 7:51 PM:

Right!

Posted by: noel park on August 4, 2006 7:21 PM

Jan,

First off nobody is saying that the Camaro is going to save GM. People want the Camaro built because they are enthusiasts who happen to love its design and history. “Oh yeah, I will give you the point that a few thousand Camaros may be nice” A Few thousand? Try 100,000 +…. That’s 100,000 more cars the GM will have sold, and 100,000 fewer for everyone else. High gas prices are a problem I agree with you there, but with GMs cylinder deactivation technology, the MPGs will probably be somewhere around 18/24. I know that doesn’t sound like a lot, but for 400 ponys that’s not to bad. And by the way “it would be a crazy purchase by anybody with an entry level job” An entry level job? I don’t know about you but im currently in an entry level job, and I don’t make nearly enough money to afford this thing. Its not going to be people like me buying them. Its going to people in there 40s and 50s who have a little extra money to burn.

As far as the retro Buick goes, it would do the same thing that the Solstice did for Pontiac and that’s bring people into the dealerships. The Rendezvous sure as heck isn’t going to!

You talk about GMs quality, I drive a 2000 Monte SS, the fit and finish of that car is top notch! Ill admit that the dash board plastic is a little cheesy, but I could probably hit my car with a wreaking ball and still drive it away. I’m not a moron, I know that in the past GMs quality has not been exactly confidence inspiring, but if my car is any indication of where there going, then its pretty safe to say that they will have a bright future.

“Build a car that gets 50-60 mpg”. Unless you are talking about a hybrid sedan, 60 mpg on a naturally aspirated gasoline engine is a pretty hard thing with the technology available today. I know your going to talk about the Toyota Prius and its fuel ratings but according the Edmunds.com “Although the Toyota car is rated to get combined city/highway mileage of 55 miles to the gallon by the EPA, our experience has shown that its real-world mileage is about 45 mpg“. I will admit that’s pretty damn good, but even at Toyotas BEST there still 15 mpg shy in real world conditions.

Last but not least “GM should, but isn't the leader in the area of providing the benchmark car in every segment. Can it do it? The answer is yes, but the quickest way too do it is with the merger”. The only thing a merger is going to do for GM is get me and 90% of the people on this blog really angry at them.

Now if you’ll excuse me im going to go crawl back into my “cold war bunker”

Posted by: Frank Nic on August 4, 2006 9:03 PM

Rick & Lutz,

Here are some comments of where, as a customer, I would like to see Pontiac:

Pontiacs should be affordable sports and sporty cars - like BMWs on a budget. This theme should be reflected in every Pontiac as standard. For example, make the show cars a reality instead of the production model that sits too high, has skinny tires, etc. Save the base cars with skinny tires and base motors for Chevy.

When a customer drives a Pontiac, it should look sporty (lowered, WIDE tires on aluminum rims, special body panels with built-in hood scoops (like the GTO), front air dams, rear spoiler, etc.), have a sporty interior (leather-wrapped steering wheel & shift lever, full set of gauges, tap-shift), and drive like a sports car (handling should approach BMW-like levels, the engines should be powerful, offer all-wheel drive, have disc brakes standard, etc.). Also, every GM should have excellent crash test ratings.

These traits should be reflected in every Pontiac out-of-the box. No uninspiring base models! If customers want something toned-down, buy a Chevy! If you did this, it would change the perception of the brand. Customers would know that when buying a Pontiac, they can expect a sporty car that goes fast out-of-the box!

Other thoughts:

Drop the Montana van. Bad idea, ruins the image.

Lower the Torrent, get rid of the 3.4 Chinese V-6 and add the 3.9 V-6, disc brakes, etc. Or, move this model to GMC.

G-6: Drop the base models - people can buy a Malibu if they want something toned down. Lower it, add wide tires, spoiler, etc., as standard. Add the 6-speed automatic, improve side crash test ratings.

Grand Prix - drop the base 3.8 V-6 and keep the 3.8 V-6 supercharged V-6 and V-8. The base model is not sporty, but I saw the GXP and it looks HOT! The GXP styling should be standard, including all its hardware, wider front tires, spoiler, tap shift, etc. Get rid of the 4-speed automatic and use a 6-speed. The 4-speed is not competitive anymore (it's bullet proof, though!). Improve the crash tests of this model!

G-5: Drop the base model - Chevy has this covered. Pontiac's version should be wild and include the super or Turbo ECOTEC standard, with the wide aluminum rims, 4-wheel disc brakes, etc.

GTO - Make the next one look the part, keep the best traits of the existing one.

I think if you did this, Pontiac's image would be restored as the "wild" GM cars that are affordable "BMWs".

Thanks!

Posted by: James Freitas on August 5, 2006 5:14 PM

BRING BACK THE FIERO I AM 18 AND
OWN 3 THERE IS NOTHING MORE I WANT TO SEE. IF FORD CAN MAKE A 5.4 L MID ENGINE CAR GM CAN MAKE A 7.0 L RIGHT JUST LIKE THE CORVETTE RIGHT? COME ON I WILL HELP BUILD IT I HAVE AN 87 FIERO WITH A 93 OLDS 88, 3.8 ENGINE. AN 86 GT STOCK. AND A 85 LOOKING FOR A TORANADO DRIVETRAIN. SO IF YOU DO BUILD THE NEW FIERO AND YOU NEED HELP FITTING THE 7.0 IN IT I'M YOUR GUY.

Posted by: fiero_guy on August 5, 2006 10:22 PM

As I was reading Fastlane, I noticed yet another TV infomercial selling knife sets.

"That's right folks, if you buy right now I'll include the steak knives and the genuine hardwood cutting board absolutely free..."

Tacky, yes, but it apparentrly sells product, and sales is what GM sorely needs right now. You want more tacky? Watch any locally produced car dealer TV commercial, you can't get much tackier.

Infomercials are relatively cheap to produce. The sets need not be elaborate- in fact, they should be relatively uninteresting, as the vehicles advertised should be the point of focus. A good script, a friendly spokesperson, and a competent steadicam operator are the essentials (and some product to sell, of course).

There have been complaints about unfair media coverage- Fine, make your own shows and highlight the positive aspects you've been boasting about in this forum.

Does anybody actually read these comments? Hello?

Posted by: Beaugrand on August 6, 2006 11:49 AM

To Jan from above:

While I have stated elsewhere on this blog that, if done properly, a partnership with Renault/Nissan might be worthwhile, I do not believe an all out merger would be in GM's best interest. I also do not believe GM to be so far on the ropes that they'd give in to the likes of Renault. I also don't think GM, being the larger, and presumably still the stronger company, would probably not want to take over Renault. Far to many people remember how they essentally killed AMC back in the 80's, and then foisted some really badly made cars on the US. If it were Nissan alone, I'd say they'd make a very nice partner. In fact most everything GM would potentially have to gain would be from Nissan in the area of small cars. Particularly being able to learn to reduce noise, vibration and harshness in their 4 and 6 cylinder engines to match the famed Nissan SR20 and their 3.5L V6, as well as finally giving a boost of cred in the compact/tuner crowd for GM's small cars. Renault itself would probably contribute very little, and would try to take the most in improving their quality control from what they would learn from GM. Again, it would have to be a partnership, not a merger.

Posted by: Chris Rueter on August 6, 2006 9:20 PM

My first car was a Flame Orange '72 Formula Firebird I pounded on and abused that car for years and it always got me where I was going (till finally the winter salted roads of Ohio took it to the ground in the mid 80s). Seems to me if you want to turn this ship around you need to look at the past and the future. My understanding is the concept car that later became the firebird was fly by wire (and may even of had a turbine engine). Seems to me if a new upstart independent company can make electric sports cars (http://www.teslamotors.com) with no practicl experience. Seems to me with your EV1 experiments you should be able to kick their butts. Take the skateboard fly by wire chasis you designed for the eventual coming of hydrogen fuel and use it with a boatload of Lithium Ion batteries and an onboard rapid charging system (the plus is all those components can get road tested and ready for when fuel cells and hydrogen distibution become practical), put a sleek Firebird nose, dual hood scoops, huge wheels with little sidewalls and a star treked out digital multimedia interior. Call it the Firebird Phoenix Edition - you will shut up all the environmentalists, become the feel good talk of the town and establish yourselves as the wave of the future.

Posted by: Kurt on August 7, 2006 12:39 PM

People! Can you keep your blog replies to 8 million words or less? This is tedious.

And for the last time, get off the electric steering! I love my e-steer Malibu and Equinox. You guys keep whining about it and it'll go the way of the digital dash.

Posted by: Malibu on August 7, 2006 6:00 PM

I have been following the trouble GM has been having for quite some time. Since the LA Times auto critic declared the Pontiac G-6 the worst car made. A comment like that shows no thought and really demonstrates what he knows. Do not enter into a partnership as GM has the capability to compete with anyone in the world without joining forces with anyone. The Cadillac lineup is the best in the world. Good design proves you can sell large SUV's in this 3.00 + a gallon gas era. The only difference in Toyata versus GM I see is their interior bits and pieces have a richer look of quality. No one can style a car like GM. The Solstice, Aura and Sky are the most stunning looking cars anywhere. You can keep your Chryco 300c that Mercedes helped build. Bring back nostalgia in a modern car. Play on the Chevy ss models of yesteryear and make them retro modern. I think people have an impression because of models you built over the past 15-20 years that Japanese automakers are superior. Sure the Lexus is nice but boooorrrrriiiing. Cadillac really exciting vehicles. Your current ad campaign with the song AM radio is terrific. Reminds me of an ad campaign from 1987 Heartbeat of America depicting people driving Chevy's of all years. You will turn it around and Americans will again buy American with confidence. Oh and the Aztec was not a bad mini minivan. there is a car club for owners of those. Can't wait to see what GM does next.

Posted by: John F. Falk on August 7, 2006 6:46 PM

Dear Mr. Wagoner,

There has apparently been a leak on the worst kept secret since LeBron James was drafted #1 by my Cavaliers....... if it is true that this Thursday (8-10-06) you will officially anounce the revival of the Camaro, I won't be able to contain myself. Please, please, PLEASE let it be true. I have already visited my local Chevy dealer and given him my name and number. When you guys give the green light, I'll walk into that dealer with cash to place an order. I'll take a silver Z28, 6 speed manual, with black leather and a moonroof (I'm banking on the fact it will have curtain airbags rendering T-Tops impossible, which I would prefer airbags to glass pannels in a side impact any day)...... just like that prototype that stole the '06 autoshow.

Oh, just to inform many who question the viability of a V8 muscle car in these days of 3.00/gal gas..... the huge demand for the return of the Camaro seems to make the price of gas moot. I honestly could afford to keep my Z28 filled with premium and Mobil 1 synthetic all the time. I also think the people who want this car and will buy this car feel the same way. The last gen Camaro didn't fail to sell because it was a gas hog, it failed because of it's outdated chasis and poor reliability and fit/finish. It was essentially a 30 year old design competing with 5 year old designs. This new Camaro should blow the doors off anyone and anything, and to hell with the gas prices! I want a Camaro! :)

Posted by: Joe D, Cleveland on August 7, 2006 9:12 PM

Rick
One of the things GM needs to do is get inside and understand the buying decision making of Toyota and Honda buyers. GM needs to hire psychologists to understand this decision making and find ways to degrade the loyalty of these Toyota and Honda owners. GM needs to devote considerable attnetion to studying the psychology of the car buying decision as well things such as brand perception and loyalty. For my part I am loyal to American brands because I remember the cars I loved growing up.
I recently read that GM is going ahead with the Camaro. Congratulations. There is an inverse relationship between coupe sales and SUVs. Many of the specialty coupes I always liked such as the Riviera, Eldorado, Thunderbird and Lincoln Mk8 were swallowed up in the SUV tsunami of the 90s and early 00s. What cars like the Mustang and Camaro are saying is the public wants exciting cars and that the SUV tidal wave is receeding. SUVs will always be around but it is time for cars and in particular coupes to make a comeback.

Posted by: James on August 8, 2006 12:12 PM

I've said this before, but GM needs to rethink its options on some of its cars. Why is a leather-wrapped steering wheel (and steering wheel audio controls in some cars) bundled with leather seats? I'm looking for a mid-size sedan or coupe right now. And I know this may sound petty, but the bundling of these items mentioned above has turned me away from any of GM's offering in the mid-size range. When I buy a vehicle, it has to have a leather-wrapped steering wheel (I love the way it feels in my hands), but I don't have to have leather seats (and would actually prefer not to have them - see cheaper for me). I love the G6 sedan, but I checked it off my list for that bundling. Like I said this may sound petty, but I'm just trying to save myself as much money as possible. It's the small things like that that count I guess. Besides, shouldn't a leather-wrapped steering wheel be standard in all Pontiacs (since they are supposed to be GM's sporty brand)? Looks like GM lost yet another sale to (and I'm sorry to say but price vs options - they won)... Hyundai.

Posted by: DW on August 8, 2006 7:26 PM

Very few things can do as much to damage the GM brand as selling cars through infomercials. Sure it may move metal, but reputation matters more in the long term and reputation is what GM is in the middle of repairing right now (and they seem to be doing it very well).

Chris H.

Posted by: Chris Hayne on August 9, 2006 10:27 PM

I think what GM did by creating this Fastlane blog was an excellent idea. I think it has brought out many fans, and dissenters alike. It really can make a difference for GM and someone with knowing, knew it.

Posted by: getalifeagain on August 9, 2006 11:16 PM

Rick,

Some comments on hybrids:

Don't go that route! A lot of people are running to buy hybrids because gas is going up. But the money you save on gas really doesn't justify the extra cost. Also, what these "green" people don't realize is that the hybrids are complicated, and when it comes to repairing them guess what? These people will enjoy taking it to the dealer and paying the high price for repairs because independent shops won't be able to repair the cars. What happens as the cars go past 100,000 miles? All I see are a lot of repairs that will burn a hole through your wallet.

Import buyers, this is for you: Personally, why I think the Toyotas, Hondas, and Nissans get better gas mileage is because they make their cars lighter by using less steel, and putting the strength only where it's needed. I've also seen these same cars in accidents and some of them even break apart! You touch their fenders and they feel cheap. Thin paint that chips easily. Cheaply made suspension. I've even looked under a Toyota Camry and Highlander, and only see thin rods in the rear suspension, so one hit on a curb is going to break the suspension. I had a friend with an Acura TL and he got in a minor accident and it broke the tie rod on the front steering. My GMs and Fords never did that. And all those Hondas with timing belts that break and ruin the engine. Nice. My friend's Honda Accord coupe's front power windows broke after only 20,000 miles because they used plastic gears.

So import lovers, before you start bashing American cars you really need to check your import cars closely, because I guarantee you the quality isn't better than an American car when you really see what you get for your money. I've had a Pontiac Firebird for over 137,000 miles and it still runs as good as the day I bought it, with the original radiator nonetheless!

Posted by: J Freitas on August 12, 2006 4:35 PM

Even if you built a Bentley at the price of a KIA, you aren't going to get customers to return until you have dealers that properly service the car, treat the customer with respect and repair the car correctly the first time.
In California you have the worst dealers on earth.

Posted by: Hugh on August 15, 2006 2:58 AM

Let me just reiterate, Rick I never doubted you for a second, and over a year ago I said of GM I have never been more excited or optomistic.

I am not surprised about the success of the Solstice, not surprised about the Sky, not surprised about the HHR and not surprised about the sales neither am I surprised about the financials or even the stock. Well the stock did surprise me a little bit.

Your #1 quality is that "Lets get it done yesterday" mentality some may call it impatience or ambition but I think it's a little different than that. Either one of those qualities can be a negative.

Your quality is more like a tug boat trying to steer the Queen Mary from rocky shores and turning her ship to calm waters.

Anyway hope you get her to the destination that your aiming for. There is a lot of people on that ship and many who'd like to sail her besides.

Just make sure no other tug boats get in the way.

Oh, and by the way nice pic with that Camaro.

I was sitting down for breakfast eating the warrior diet picked up the business section and what do I see?

Posted by: Edward Hayes on August 21, 2006 9:20 PM

Rick,

Couple of things, though it has already been said here loudly and clearly let me also add that ANY alliance with Renault/Nissan is an extremely bad thing. Your core supporters, myself included, will not stand for it. Not for an instant. The simple if difficult to voice fact is that your core supporters are virulently opposed to the thought of a joint (individually loathed) Japanese/French company supposedly riding to the rescue of an American company that they feel still stands proud today. For a vast swath of your buyers the fact that GM