Turnaround Momentum Drives GM in the Right Direction
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 in Business
to this comment On July 28, 2006 at 2:11 pm Mikko O said:
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.
to this comment On July 28, 2006 at 2:28 pm Mike Murphy said:
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.
to this comment On July 28, 2006 at 3:06 pm getalifeagain said:
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
to this comment On July 28, 2006 at 3:25 pm S Plier said:
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.
to this comment On July 28, 2006 at 4:28 pm Frank Nic said:
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
to this comment On July 28, 2006 at 4:45 pm Edwin said:
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.
to this comment On July 28, 2006 at 4:58 pm Josh said:
when GM makes a boring midsized family car that out sells the camry, then youve arrived.
to this comment On July 28, 2006 at 6:18 pm Sudip Verma said:
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
to this comment On July 28, 2006 at 6:51 pm Pete Nicholson said:
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.
to this comment On July 28, 2006 at 7:12 pm Chris said:
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.
to this comment On July 28, 2006 at 8:01 pm Frank V said:
Good results, stay steady and focused on your plan. BUT please do not forget it is all about the product!
to this comment On July 28, 2006 at 11:23 pm Tim Geisler said:
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
to this comment On July 28, 2006 at 11:47 pm Craig said:
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!
to this comment On July 29, 2006 at 1:15 am Brian said:
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!
to this comment On July 29, 2006 at 2:25 am Alex said:
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).
to this comment On July 29, 2006 at 3:26 am Rene Curry said:
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.
to this comment On July 29, 2006 at 9:39 am Bob said:
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.
to this comment On July 29, 2006 at 11:25 am Original.Jeff@gmail.com said:
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…
to this comment On July 29, 2006 at 11:32 am Joe said:
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!
to this comment On July 29, 2006 at 12:06 pm Jeff Crew said:
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.
to this comment On July 29, 2006 at 1:41 pm Chad C said:
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.
to this comment On July 29, 2006 at 2:33 pm Juan-Antonio Garcia said:
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.
to this comment On July 29, 2006 at 2:50 pm Listening Post said:
Listening example from GM’s FastLane
GM is in the midst of a major turnaround that is required to save the company’s very existence. They are definitely making progress, and most certainly still have a long way to go. It seems that their FastLane blog is a part of the turnaround pro…
to this comment On July 29, 2006 at 5:11 pm Tom W said:
Keep in mind that it’s better to have popular cars and adequate management than adequate cars and popular management.
to this comment On July 29, 2006 at 5:11 pm JD said:
All I have to say is AWESOME JOB!!! I’m loving the new vehicles! Cant wait to see what eles is in store!!
to this comment On July 29, 2006 at 5:35 pm Trollhattan Saab said:
GMRN update
As you know, I take this whole GM-Renault-Nissan thing quite personally, as it has the potential to significantly impact on Saab’s future. The pawns on the GMRN chessboard moved quite a bit overnight. I’m not a huge chessplayer, but I know enough of th…
to this comment On July 29, 2006 at 6:02 pm jamie said:
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!
to this comment On July 29, 2006 at 6:41 pm Felix Biggers said:
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.
to this comment On July 29, 2006 at 7:11 pm Shane Bailey said:
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.
to this comment On July 29, 2006 at 7:33 pm John Bauer said:
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.
to this comment On July 30, 2006 at 12:21 am Dale Jones said:
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.
to this comment On July 30, 2006 at 1:07 am SteveG said:
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.
to this comment On July 30, 2006 at 1:24 am Christopher Popa said:
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.
to this comment On July 30, 2006 at 1:35 am Tim Geisler said:
“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
to this comment On July 30, 2006 at 7:38 am Kevin Knobl said:
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
to this comment On July 30, 2006 at 8:09 am Eric Planey said:
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!
to this comment On July 30, 2006 at 8:23 am Ronen said:
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.
to this comment On July 30, 2006 at 9:04 am Mark Luturno said:
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?
to this comment On July 30, 2006 at 11:08 am Buick Diesel said:
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.
to this comment On July 30, 2006 at 4:32 pm André said:
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 Citro√´n do: PSA has mass-market cars like 207, C4 and 407, but they never stayed out of the luxury business. In the years that Citro√´n was out because phased out the XM, Peugeot stayed with its 607. Now, Citro√´n 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?
to this comment On July 30, 2006 at 5:21 pm Brian R said:
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
to this comment On July 30, 2006 at 6:38 pm Joe Gakenheimer said:
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.
to this comment On July 30, 2006 at 8:49 pm Gary Cummings said:
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.
to this comment On July 30, 2006 at 10:05 pm Rick Lupori said:
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.
to this comment On July 31, 2006 at 1:11 am gtjeff said:
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.
to this comment On July 31, 2006 at 5:05 am Mr. Langlitz (Germany) said:
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.
to this comment On July 31, 2006 at 11:19 am joe connelly said:
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.
to this comment On July 31, 2006 at 11:19 am joe connelly said:
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.
to this comment On July 31, 2006 at 12:07 pm Doug said:
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.
to this comment On July 31, 2006 at 2:14 pm PacerX said:
“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!
to this comment On July 31, 2006 at 5:07 pm Dan Palka said:
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.
to this comment On July 31, 2006 at 10:37 pm getalifeagain said:
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!
to this comment On July 31, 2006 at 11:06 pm Doug Bismack said:
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.
to this comment On August 1, 2006 at 12:27 am Tom said:
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 …
to this comment On August 1, 2006 at 12:30 am Hacin said:
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
to this comment On August 1, 2006 at 2:12 am Cheap Auto Insurance said:
We love to see that you are making a difference in how many mile per gallon each automobile gets. All your efforts are helpful.
to this comment On August 1, 2006 at 2:19 am Chris Rueter said:
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.
to this comment On August 1, 2006 at 3:35 am Nathan Sweeney said:
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!
to this comment On August 1, 2006 at 4:19 am Mr. Langlitz (Germany) said:
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.
to this comment On August 1, 2006 at 5:22 am James Freitas said:
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.
to this comment On August 1, 2006 at 9:47 am Paul said:
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.
to this comment On August 1, 2006 at 10:38 am Joel said:
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?
to this comment On August 1, 2006 at 11:00 am Frank Nic said:
G6 convert is a champ!
http://www.leftlanenews.com/2006/07/31/pontiac-g6-convertible-a-styling-knockout/
to this comment On August 1, 2006 at 11:02 am Mr. Langlitz (Germany) said:
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
to this comment On August 1, 2006 at 1:50 pm Nathan Lawless said:
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
to this comment On August 1, 2006 at 6:02 pm noel park said:
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.
to this comment On August 1, 2006 at 6:51 pm Edwin said:
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.
to this comment On August 1, 2006 at 11:17 pm GM Fan said:
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…
to this comment On August 2, 2006 at 2:57 am getalifeagain said:
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.
to this comment On August 2, 2006 at 10:07 am Chris said:
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
to this comment On August 2, 2006 at 11:41 am Frank Nic said:
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.
to this comment On August 2, 2006 at 1:08 pm Robert Wilson said:
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.
to this comment On August 2, 2006 at 5:06 pm Ubesa Umwango said:
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.
to this comment On August 2, 2006 at 11:37 pm ghughes said:
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?
to this comment On August 3, 2006 at 1:58 am Daniel said:
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.
to this comment On August 3, 2006 at 2:22 pm geozinger said:
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!
to this comment On August 3, 2006 at 7:51 pm Jan Bayus said:
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
to this comment On August 4, 2006 at 7:21 pm noel park said:
Jan Bayus, August 3, 7:51 PM:
Right!
to this comment On August 4, 2006 at 9:03 pm Frank Nic said:
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”
to this comment On August 5, 2006 at 5:14 pm James Freitas said:
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!
to this comment On August 5, 2006 at 10:22 pm fiero_guy said:
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.
to this comment On August 6, 2006 at 11:49 am Beaugrand said:
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?
to this comment On August 6, 2006 at 9:20 pm Chris Rueter said:
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.
to this comment On August 7, 2006 at 12:39 pm Kurt said:
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.
to this comment On August 7, 2006 at 6:00 pm Malibu said:
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.
to this comment On August 7, 2006 at 6:46 pm John F. Falk said:
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.
to this comment On August 7, 2006 at 9:12 pm Joe D, Cleveland said:
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!
to this comment On August 8, 2006 at 12:12 pm James said:
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.
to this comment On August 8, 2006 at 7:26 pm DW said:
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.
to this comment On August 9, 2006 at 10:27 pm Chris Hayne said:
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.
to this comment On August 9, 2006 at 11:16 pm getalifeagain said:
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.
to this comment On August 12, 2006 at 4:35 pm J Freitas said:
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!
to this comment On August 15, 2006 at 2:58 am Hugh said:
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.
to this comment On August 21, 2006 at 9:20 pm Edward Hayes said:
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?
to this comment On August 24, 2006 at 12:59 pm Bwright said:
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 is purely American is a huge reason why they stay no matter what. Remove that bulwark and you won’t be surpised at the results, you will be shocked.
Carlos Ghosn’s star is falling. Moving Nissan from CA to TN is a slow-motion disaster and Renault’s worse days are apparently dawning now that there is nothing material left to cut and Ghosn is fresh out of ideas. Ghosn needs a hero hit fast. Let the highly overrated Carlos the Jackal go hitch his star to Ford. GM’s leaders have already done the bulk of the hard work without him and don’t remotely require him going forward. Someone should also point out to Captain Kirk and his lap dog which stock in the DOW has been the best performer by substantial double digits this year.
If I were you I would quietly make a pact with your twenty most senior execs, Lutz et al, that should Captain Kook and Co. force the issue all of you offer to resign or actually walk out en masse. Then let him figure things out. My guess is that GM’s stock would lose 50% on that day. Make your team’s return conditional on Captain Kook and Co’s departure from GM.
I’m dead serious about this. That idea may sound like death to you but as someone once said, If a man does not have something for which he will die then he has no reason to live.
to this comment On August 27, 2006 at 4:30 pm chris said:
As a teenager, I remember the camaros, etc, etc, for the guys, it was the car to have besides the corvette. I even rented a cobalt during a repair issue with my gm product. It felt great, I was surprised, lots of power for a little car. I even briefly remembered the feel… considered it when car shopping for my daughter. However, My past relationship with your gm product, stopped me. So until you get back the american customer’s trust, starting with me, american consumers who are still dealing with poor quality gm products, wont be looking to buy gm products again. I know I wont. I’m still paying on my gm lemon.
to this comment On September 11, 2006 at 11:41 am Mark said:
If Consumer Reports has any credibility, GM cars have consistently been among the worst for reliability and safety for years.
My first GM was a 1969 GTO…the timing gears constantly stripped being made of nylon. Dealer was consistently a jerk until after the umpteenth “repair” the goat jumped time and loudly backfired coming out of the shop allegedly fixed!
Chevy Cavalier was one bust after another. 1989 Siverado was one bust after another until the headliner rotted in 2001.
GM lies about R134a never helped either. Want to restore GM? Try integrity, safety, reliability.
Hope your alleged PHEV will not be the “Corvair” of 2008. PHEV is an excellent idea if you have the integrity, safety, reliability.
to this comment On September 26, 2006 at 7:01 am Sam said:
Mr. Wagner, Congratulations on acheiving a sucessful quarter and hopefully an enduring turnaround strategy.I’d like to share a couple of my thoughts going forward.When you finally meet the President I suggest you scare him as he has been a President of fear his entire term.On trade issues,I suggest that the U.S. should no longer be the Marshall aid program for the rest of the world as it has been since the end of WWII.Our foreign competitors have taken full advantage of these long outdated programs to the detriment of domestic industry.All they do is obtain Foreign Trade Zone Status anywhere within the U.S.,importing their goods -duty free while evading taxes.On the issue of healthcare,I believe that GM should be entitled at a minimum for health insurance rebates on premiums that GM pays for,but don’t or may not be fully utilized.For example when I go through the year without an auto accident my insurance company issues me some form of rebate.The ultimate solution other than this is national healthcare.I know also and am fully aware of how fatiqued you must be of so called alliances.Things seem to be working now so avoid them.Some of those people proclaim the worn out word “Synergies”,another form of theft in my book.I don’t trust anyone (connmen) that talks about “Synergies” and I don’t trust anything that comes from europe.Been there myself several times and still don’t like it.The best thing I think Kirkorian can do for you is not to interfere with your progress in turning things around.I’m really glad to see your great progress in innovation with the new Hydrogen Technology and know that it could leapfrog the competition one day.For the time being please do keep giving us good products that most people want to own and I will gladly help you build it!!!…Thankyou, Sincerely, Sam M.
to this comment On October 1, 2006 at 6:00 am Sam said:
Mr. Wagner, I’m reiterating my congratulations to you and the rest of the team for your fine performance and turn around efforts.It has been absolutely clear to me that you inherited many problems from your predecessors.The Kerkorian or rather Kervorkian people bother me and should immediately stop interferring with your progress.When the new products arrive I hope they will lift the negative sterotype that the media and many others have long since painted onto this entire company.It is good and important that you are doing well in developing markets.I do have some concerns of my own about China as they are still an adversary of ours and think that you should have an escape plan from that market prepared should you need it in the future.Do keep control of your technology and keep an eye out on the Lefan motor company as it has Toyota sized motivations.An investigation should be made into the amounts and how the hospital industry passes it’s costs for servicing illegal aliens onto the insurance industry.I think it may be another factor into why premiums have moved up.Again Congratulations on a job well done!!, and thank you for giving me this opportunity to provide you some feedback, Sincerely, Sam M.
to this comment On October 26, 2006 at 8:35 pm kenny said:
bob give the cobalt a 300hp 2.2l
to this comment On November 9, 2006 at 3:44 pm juan hernandez said:
Sir,I think you have done a great job I am actually a camaro fan but know that I have seen this sumptuous picture of the Trans Am I love them both the same way thanks for your hard work and dedication.
sincerely,
Juan Hernandez
to this comment On November 30, 2006 at 12:42 pm Teri said:
Dear Mr Wagoner,
This is a realtiy check for you and GM, your sales are going to keep going down, Americans don’t have the confidence they once had in your product? Why, because GM doesn’t stand by it’s product. Who in their right mind wants to spend 18,000-58,000 on a Van, truck, or car just to have the thing brake down a few weeks, months, or years later. GM knows for a fact there are cars that have problems that aren’t normal wear and tear but brushes it aside like it’s the first they heard about it. One only needs to plug in a Make, Model, and Year to find out all the complaints. When consumers call GM we get a song and dance. For example Chev Venture from 98-2001, rack and pinion, anti freeze leeking into the motor, head light covers falling off. Sorry anyone with a family after dishing out so much money can’t afford to dish out even more money for something that isn’t normal wear and tear. Or how about 2006 Hummer 3 with the rear end axil problems. I just bought a new truck and I’m happy to say it’s not a GM nor will any of my cars, trucks, or vans ever be a GM. Want people to buy your product, then do the right thing and recall or at least meet customers 1/2 way.
to this comment On November 30, 2006 at 4:38 pm Leonard said:
Mr. Wagoner,
You have made me proud. You and your team have truly took this company to a new level. When it was announced that you were bringing back the Camaro, I had a smile on my face for the rest of my day. When you came out with the Corvette C6 Z06, I jumped for joy. Your giving us what we want, and it’s working. Now how about bringing back the Fiero, one of GM’s most underated sports cars. I currently own an ‘88 Fiero GT, and am in love with it. To see an ‘08 in my driveway right beside my ‘88 would make me even happier. To be the only domestic company with a mid-mount engine on the market again, would truly set you apart from the Japanese companies.
Thanks for your time and keep up the good work,
Leonard
Canada
to this comment On March 3, 2007 at 2:12 pm Peter G said:
My first car when I turned 16 was a Toyota. Toyotas were still new in the US, and the Japanese hadn’t even made a dent in this market. VW probably outsold all Japanese manufacturers 10:1 at the time. Prior to that all we hab ever owned was Fords and Chevys.
I ran a motocross race track at the time, so I would go out there with my friends on Friday night until Sunday night. And for fun we’d drive our cars around the track and take jumps, bank turns and whatever while we were setting things up. There was also an old country road near my house that crossed over some long-abandoned railroad tracks, Although the speed limit was 30, if you could get to about 80mph you could jump the tracks and soar about 40 feet. Of course landings weren’t so smooth; and we’d come down hard enough that the wipers would come on, the turn signal would come on, the transmission would pop out of gear, and apparently the shocks would bottom out so far and the tires compress so far that the muffler actually dragged on the pavement. Not sure why I’m still alive.
At 16000 miles, 4000 past warranty, I limped this car to the dealer. The carb needed to be replaced – probably from all of the dust and dirt from the motocross track. The muffler needed to be replaced having met the pavement several times. The tires needed to be replaced. And the differential was stripped as well! Toyota looked at the car, said “well this isn’t right”, and did everything at no cost. They extended the warranty without even being asked for a 17 year old nutcase.
A year later my little stepsister and her boyfriend and gang packed the car and totaled it down in Rehoboth. They somehow managed to leave the road, roll it over, and crash into a tree upside down. Of the 5 or 6 people in the car the only one who was hurt was the one in the middle back seat who hit his head on the gearshift lever, but he healed completely. That car really protected them; the roof wasn’t caved in at all. And this was before crash safety tests and standards and long before airbags.
In the early 80s I bought 2 new GM cars, a Pontiac for myself and a Chevy Camaro for my company. I hated both of them. They never worked right, and the dealers were totally indifferent and never fixed them. I even went so far as to write a letter on TV network letterhead (where I worked) to GM corporate and they flew a VP down to meet with me. He thought I was from a consumer action team on the evening news (I never even indicated anything like this) and was shocked to find out I was a 21 year old kid. But that’s what I had to do to make those GM cars even work. And one nearby repair shop said it looked as though the dealer had sold me a car that might have been in a wreck and rebuilt as there were chalk marks from a salvage yard on some of the underbody. Nice.
My wife had a Ford Mustang when I met her. It fell off the road at 80,0000 miles. We traded it in for a Dodge Caravan. At 60,000 miles the battery and water pump quit, and the brakes needed rebuilding. At 103,000 miles I gave it to Goodwilll. The heater and AC had long stopped working, and repairing them required completely removing the interior and dash. Driving without heat in the winter is scary. The master brake cylinder was going, All of the engine seals were leaking, and I burned a quart of oil with each tank of gas. The license plate brackets had rusted off. And the rear liftgate was inoperative and would probably open on the highway someday. It was ready for the junkyard.
So we bought a new Toyota 4-Runner SUV in 2000, and the RAV4 in 2001. Today each has over 140,000 miles. And I haven’t spent a single penny other than routine maintenance on either of them. They work flawlessly, better at 140,000 miles than the GM cars did at 140 miles. I am considering buying another car soon. And the only cars I even consider looking at are Toyotas and maybe Lexus. I get to test drive other car brands everyday when I rent cars on the road as I’m alwasy traveling. But I don’t even consider any of them for my next car, just Toyota. I’m a true brickwall customer.
My neighbor gave her Lexus RX300 to her son and bought an new Cadillac SRX (the little SUV that is similar in size to the Lexus). She hates it – it has chronic problems the dealer never fixes including a sunroof that leaks on her when it rains. And being a Senator’s wife, you’d think the dealer would understand that’s not a good thing. Meanwhile she says her son now has 250,000 miles on her old Lexus and still nothing wrong. She misses it every time she gets in her horrid Cadillac.
I don’t see how the US automakers will recover from this, but I also don’t feel sorry for them at all. You have to care for, respect and love your customers and be grateful for them everyday. You need to be committed to 100% excellence and 100% satsisfaction. Only then will we come back.
to this comment On April 9, 2007 at 4:49 pm Fred Aley said:
Mr. Wagoner,
I am 63 years old and recently retired.
The last American car I purchased was in 1973, (a Chevy Malibu). I currently own a Mercedes, a Volvo, and today I purchased a new BMW 325XI for my daughter who is graduating from college. I bought my son a Mitsubshi Eclipse Turbo.
If you are interest in why I will never buy an American made car again and haven’t for 35 years (as you SHOULD be), contact me. You have my email.
You (GM) brought it upon yourself. (As did Ford and Chrysler).
to this comment On April 12, 2007 at 12:02 pm Joe Cartnal said:
Mr. Wagoner,
I bought a 2006 Buick Lucerne last May. This car is a very nice one and quiet, except for the passenger seat. It has an annoying squeak/rattle on moderately rough roads that gets very loud – especially in the otherwise quiet compartment.
I have taken this car back 4 times without resolution and am currently working though Buick Customer Service. However, they just informed me that they will only try once more to fix it.
Is that how you plan to sustain your turn-around? By driving away potential repeat buyers?
to this comment On April 24, 2007 at 12:07 pm Ronald L. Noe said:
You know, I was raised in a GM Household. I have been a loyal customer up until now. For one, it seems loyalty doesn’t seem to get one anywhere on a deal. And two, GM just doesn’t get it like …George Bush doesn’t get anything!!!!
CEO’s and top level executives cannot know what it is like for the customers you’re sellling to!
Loyal customers, “Car Guys” waited patently while Ford sold millions of Mustangs since there were no Camaros or Firebirds! Then just when the GTO was catching on, that got canned. And when Gas went through the roof, you produced more SUVs?????
Toyota is beating you on Gas mileage, period! You’re not even trying!
So there’s the three things. Seems so easy and I don’t have a degree in some wasted subject. It’s common sense!
And guess what? China is coming on board with their cars, just $10,000.00!!!!!! And good gas mileage.
Oh yeah, the CEO thing! Why to much money for someone with no common sense or foresight, jeeezzz!
I just bought a Toyota! You should have!!!!!!!!!!!!! Wagoner you just don’t get it!
to this comment On April 29, 2007 at 11:24 am Walter Figallo said:
Rick;
I just want to say that I believe the reason the American Auto Industry Is suffering is because it got away from one of its basic competitions that set it apart from other auto manufacturers worldwide.
I am of course speaking of body style and design. I am a product of my youth and I remember from the 60″s to the early to mid 70’s the that american auto companies competed not just for the power and speed of a car but also for the look and style. As buyers we personalized our selection in what we bought we identified with that car because of its look. nIn other words we looked good in that car and it looked good on us.
It bacame an extension of who we are it was a part of our personality.
|Ford went retro with the mustang not just in the look but in its size unfortunately it is now starting to look like the mustang of the 70’s and getting larger. You know that way it looked just before they killed off the mustang and came out with the Mustang II. Remember when the Chevy Nova was called a Chevy II Nova.
Chrysler re-introduced the Dodge Challenger but it had a neww look supposedly for the times wrong to re-introduce
it should have been the Plymouth Barracuda which was the original muscle car for Chrysler along with the Dodge Charger, I don’t know if Chrysler is still putting these two out in their newer versions. But I consider them a failed experiment especialy with the challenger because it was the Hemi Cuda that they were known for.
But you my friend have a much larger stable to work withof cars of the 60’s that had style and looks in fact there is one car from that period that you could totally redo and thats the corvair. it had a lot of problems back then but I’m sureb that those have been rectified over the last 40yrs, it was the only other two seater besides the vette that chevy ever put out and it really wasn’t such a bad little car it just had engine problems.
What all this means is that back then we were a nation that showed the world our personality, indivudalty and diversity and pride in the products we produce and as a result we led the world and no american showed that more and had a bigger impact on the world than the automotive industry and GM was the leader there.
So please show the world that we’re still #1 and that we still take pride in our unigueness.
If you go to the pharmacy today you get either Brand Name or generic. Insurance Co.’s want to only pay for the generic.
Are you a pharmacutical insurance company or are you a Brand Name.
Be the Look, Be the Style, Go retro or create somethig New but stop being Generic.
All cars today look alike. Theres no real distinction because they all have the same body style.
Is it any wonder that Toyota came out on top. You look like them, The Europeans don’t, but the Americans do. A BMW looks like a BMW it has style the same can be said for Mercedes and Audi and the Italians have always looked different. They all took their cue from you or us.
GM, Ford and Chrysler today all look like Toyota, Nissan, Mitsubishi, Honda, Hyundai is there any other reason americans need to buy Japanese
when you don’t look any different and their usually cheaper.
I ask you, Please be Distinctive, Be the LOok, Be the Style, Be American.
I would like to hear from you Rick and your thoughts on what I’ve said here. maybe you should do a survey and ask Americans what they think about this and they would if you were to re-introduce some retro looks and at the same time create some thing new and distinctive.
Regards
Walter Figallo
to this comment On June 5, 2007 at 11:57 pm DODGE MAN said:
CHEVROLET SUCKs with the color selection ND VEHICLE ADMIT DODGE HAS U BEAT ALL AROUND
to this comment On June 13, 2007 at 7:16 am Wee Kiat said:
Dear Mr Wagoner,
Most probably, this is the closest I can get.
Well, just to share with you some of my comments.
No doubt is a good year for GM, but not a great year compared to the long history of great earnings and proficiency by standards.
I have no doubt about your efficiency and charisma in turning GM around in the recent years. However, the strength of the Japanese and their sharp investment has led position them into the number player in the automotive industry. It is a hard pill to swallow for GM and some GM’s hardcore follower as well.
GM has been all the while mostly driven by its own markets in America and European for quite sometime already. With the Japanese inclusion into the States have brought GM into state of panic and uneasiness while fighting the battle at its own ground.
GM and its partners have not done well in other dominance markets by the Japanese and ventures in Asia market has not produce significant results yet.
The Japanese makers have came into the States and have been in growing in presence consecutively in a number of years and have gained significant market shares.
I strongly believed that in every products. Its market heavily depends on
a) Customer Integrity
b) Cost Efficiency
c) Product Development
d) Marketing Strategy of the product itself
GM’s has products that position into too many categories of the market itself and because of that, most smaller brands by GM suffers due to competitiveness of the market. There is no doubt about getting them into wings of GM but they also came with their company problems and burdens which will require some intensive reforming, after which, they can be closer and more competitive in the market. Lets take Suzuki and Daewoo as an example.
No doubt GM has brought them into the group and have also develop them well enough to be profitable but not profit efficient. They are still carrying the problems left over by their predecessors and have not been in best ever since their consolidation.
In business terms, rather than struggling to bring the company to number 1 in the world, perhaps looking into your own backyard is also another possibilities.
I look forward success for GM and yourself.
Let me know if it is a possibility, I would love to learn from the great man himself..
Thanks and Best Regards,
WK
to this comment On July 4, 2007 at 4:48 pm ap said:
Mr Wagoner,
I bleed GM blue, and I am very disappointed that GM is second to Toyota. Can’t you and other GM members “connect the dots” ??? Every great idea, and product GM introduces, etc. the EV1 that would have allowed GM to be the “world of transportation” leader is Canned !! All the time and dollars being spent on hydrogen technology, GM could now have, without a doubt, a hybrid product that would surpass the toyota prius hybrid many times over. The EV1 was well on it’s way of doing that, instead you crush, and dismantle them, and sell the much improved second generation battery of the EV1, to an Oil Company ?? I feel the public that supports GM, along with providing your salary, be given an total explanation as to ” Just what is going on “. Someone needs to provide GM with the leadership to again be number 1. Truly AP
to this comment On August 22, 2007 at 8:24 am Frank said:
This is completely off the subject but how about GM bring back the Nova? A great looking and affordable RWD car, also make the powertrains interchangeable with the camaro.
to this comment On September 12, 2007 at 9:29 pm travis hunt said:
rick,
you gotta bring back t he trans am the way it really was in the late 70’s. that was the trans am people loved. not some retro thing theat looks like a camero with a body kit. you need the real trans am. with the 6.6 shaker and screaming chicken and everything that was great about the old models
TRAVIS
to this comment On September 19, 2007 at 10:11 am Scott said:
Wrong direction …
There is an immediate need in the U.S. for fuel-efficient vehicles, especially cars that are bio-diesel capable or fully electric. The technology exists, and is getting cheaper.
Will GM can be a leader, or follow Toyota & Honda years after these two Japanese companies have already these offered vehicles and have become #1 & #2 selling cards in the US (similar to what happened in the early 80s).
There’s a lot of room at the bottom, and I see GM, Ford and Chrysler there (at the bottom) in the next 10 years.
to this comment On September 28, 2007 at 7:01 pm Mark Lay said:
Look I am happy the company
is on the way back up, however
G.M. needs to get back to the street and out of the tower. I almost cryed when Oldsmobile shut down…ya I know what some of you are thinking but that does not make me feel better, MR.Wagoner Please lets breath some life back into Buick. Lets go back to what really works, Alfred P.Sloan.remember him ? hell maybe somebody should resurrect Harley Earl. I drive a Cadillac and have for years because I love the Brand thank god Cadillac is moving into some great moments again. Bring back Whats good for General Motors is good for America. and make that the official Slogan, and Cadillac has to remember they are the standard of the world ! dont let the people down. thanks Mark
to this comment On June 6, 2008 at 12:48 am Vickie said:
Well, trying to turn around now is a good thing; it is just too bad GM didn’t think ahead before it stopped production of the EV1. Your Electric Vehicles could have been on the road for over a decade now and you could have been working on ways to implement the technology in larger vehicles. Instead your company wasted time:
1) researching hydrogen which needs a huge infrastructure;
2) making vehicles that get worse mileage every year;
3) pandering to the oil companies and pushing the macho image in your advertising;
4) ignoring your customers that desired practical, non-fossil fuel vehicles.
We come from a GM family and we own 2 GM vehicles now but I wish I not bought the last one, a van, and had bought a non-GM hybrid 4-passenger car instead. What I really wish is that I had the opportunity to buy an electric vehicle from GM.
My suggestion…why don’t you put my MI relatives back to work mass producing the EV1 and similiar cars.
to this comment On July 14, 2008 at 10:32 am Jeff Coulter said:
Here’s an idea. Maybe this submission will get to a GM engineer somehow. To maximize the efficiency of a Chevy Volt type hybrid why not make the internal combustion/range extender power pack removable? This weight saving measure would give the user the option of configuring their vehicle to operate in the EO (electric only) mode or the unlimited range ICRE (internal combustion range extender) mode. The removable power pack would include the fuel tank to maximize the weight savings in EO mode and could be placed in a space that occupies storage in the EO mode. Extra storage in ICRE mode could be achieved via integrated roof rack/storage pod to allow further flexible configuration by the user. Obviously your engineering hurdles include ease of power pack removal/replacement and those pesky safety concerns.
I’m just a guy out here thinking. Again, hopefully some engineer will see this.
Jeff Coulter
to this comment On July 14, 2008 at 10:59 am Jeff Coulter said:
One more comment on the EO/ICRE vehicle. Consider a TDI engine for the removable power pack. I think it would be most efficient for the extended range operation/highway operation.
Unless I’m not considering something the power pack w/ about 13 gallons of fuel would weigh about 500 lbs. I think a vehicle weighing 1500 lb in EO mode and 2000 lb in IRCE mode could be very efficient and flexible.
Jeff Coulter
to this comment On July 14, 2008 at 11:59 am Norman Conquest said:
Good thoughts Jeff.
GM could also do the following:
1. Make the Volt’s rear seat removable and offer the option of buying (or leasing) an extra battery pack to put in the rear seat hole augmenting the car’s power supply.
2. Offer a “long-range” battery pack mounted on a two-wheel trailer that could be pulled behind a Volt. Someone going on a longish trip could go to their local GM dealer and rent the trailer-mounted battery pack for the trip. (The trailer-mounted battery could also be a third-party, after-market item if GM would provide the socket at the rear in which to plug the auxiliary battery.)
to this comment On July 16, 2008 at 10:07 pm Allan D. Wellhausen Sr. said:
With all due respect to Mr. Wagoner, While so many feel Mr. Wagoner has done a good job, I would say those people are the ones with jobs or with retirements Mr. Wagoner, can’t use his budget ax on, that are saying it.
There was a time when people who worked for GM could afford to buy what they help produce. Now they can’t even be sure of keeping a job long enough to make the final payment, let alone a retirement. This would include both blue-collar and white-collar workers.
The handwriting has been on the wall for years about going green and building Electric cars, yet Mr. Wagoner can only come up with a concept car that may be ready by 2010, mean while he putting 1,000s out of work, when he could be putting 10,000’s to work building green.
I think the only economy Mr. Wagoner is worried about is his own. He has taken the shortsighted approach that seems to be the norm for Detroit That’s ‘what are the earning for today and this quarter?’ and to hell with five or ten years down the line. In fact I fairly sure Mr. Wagoner will not even be with GM in five years, So I can understand his rather short term interests. I’m fairly sure the stockholders are in for the long term not the short term.
I think it is time for GM to look for someone that has long term GM goals in mind, not his own financial out look. You can be sure that no matter how well or poorly GM does Mr. Wagoner will get his, no matter if he earns it or not!