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Bob LutzGive the People MORE of What They Want

lutz_sky

By Bob Lutz
GM Vice Chairman

Back in February, I asked your advice on what GM could do to raise its consideration levels among consumers, particularly among those who don’t consider us at all. You had some terrific comments for us that we’ve taken to heart, believe me.

One of the topics that arose time and again was quality, and how we perhaps haven’t done a good enough job of getting our quality story told. Well, that’s going to change.

I have said repeatedly in recent years that one of the reasons beautiful, compelling styling is so important in today’s competitive marketplace is that quality differences among automakers are almost negligible. I’ve said that with quality, safety, performance, fuel efficiency and reliability almost a wash, design is the last great differentiator among cars and trucks today. And I believe that.

But . . . and it’s a big but, that doesn’t mean that quality and all those other things aren’t important! Quality is hugely important. We have been doing a great job of raising our quality levels in the past five years, and it’s high time people knew about it. And not just the percentage of the population that follows the car business — everyone! One look at the most recent J.D. Power Customer Satisfaction Index, or the Dependability Study, or the Strategic Vision study, or any number of other independent third-party measures will prove my point.

No automaker is perfect; many OEMs, including the import manufacturers, have conducted large recalls this year. But perfection is what we strive for, and we need to continue to get better. We need to get the news of our improving quality out there, and we have to regain consumer confidence. We absolutely need the consumer to have as much confidence in us as we have in ourselves. And we have some ideas about how to accomplish that; we’ll have something more, something bigger, to say about it in the coming weeks. Stay, as they say, tuned.


Posted by Lutz on September 1, 2006 11:14 AM

Comments

Bob

One of the best ways you can the word out about the quality of GM products is to invite people to test drive them.

I remember our local dealer back home would have wine and cheese tasting parties to preview the new models in the fall. And in the summer he would bar-b-que hamburgers and hot dogs on the lot.

Somehow he would get the word out and the people would come. They would eat, and socialize and even test drive the new cars.

Needless to say, he sold a lot of cars that way.

Posted by: jamie on September 1, 2006 4:17 PM

Time and time again people have told you in this forum that the best way to show you build quality products is to show you stand behind them with a longer warranty. Why should anyone believe the quality is improved on your cars when you don't trust the quality enough yourselves to provide a 5 or 10 year warranty ? I leased my G6 GTP Coupe for 36 months instead of buying it, since the warranty lasts for only 36 months, that must be how long GM expects it to work without problems. If your quality really has improved, extending the warranty will cost you very little, otherwise the quality improvements are all just talk.

Posted by: T Thomas on September 1, 2006 5:41 PM

If quality differences are so negligible, then how come Consumer Reports rarely has GM cars on their top picks lists?

Until now, GM's appearance has been, shall we say, negligible?

And seriously, don't say styling is the only thing left when car and driver, motor trend, autoweek, road and track, etc. consistently rate your vehicles at the middle of the pack or worse.

Once GM vehicles are the benchmarks for their respective classes, then you can talk about how quality, performance, and reliability are a wash.

Until then, styling is only sheetmetal deep, and you all have lots of other work to do.

Seriously, It's General MOTORS, not General Smoke and Mirrors.

Posted by: John on September 1, 2006 5:59 PM

If you're so confident in your vehicle quality then increase your warranty perdiod from 3yr/36k to at least 5yr/50k. That would make a BIG statement.

And let's see some more exciting RWD sedan designs from a brand other than Cadillac!

Posted by: Scott on September 1, 2006 6:49 PM

Bob,
I just recently discovered this blog and find it an excellent forum for those of us that want to respond and comment on posts about products and general information.
I guess I fall into the "everyone" category as opposed to the individual that follows car companies. I would say that as an outside observer and car buyer, I find the biggest issue today is simply cost of ownership. My wife drives a Toyota Land Cruiser and I drive a Toyota Matrix.
What is interesting is that simply due to fuel prices, we have paired down on our gas mileage. My Matrix pushes 30+ MPG while the Land Cruiser gets 13MPG depending on which way the wind is blowing. She drives 7,000 miles per year while I drive 30,000. We have adapted while not giving up our big hog. I got rid of a Silverado so that we had one inexpensive vehicle. Would we consider a GM product - absolutely. But this month, both of our vehicles will be paid off. We really have no interest in adding to our auto expense and these vehicles are in great shape.

I applaud GM for working hard to produce better vehicles but I have to stay put. Saving $1,200 per month without payments overides the itch to buy a new car. If I could get a 25 - 30 MPG Tahoe, well then you might just get me interested again.

Posted by: Andre on September 1, 2006 6:55 PM

Please raise your warranties...

Your quality might be the best, but the PERCEPTION of poor quality will remain until something "bigger" is done.

GOOD LUCK

Posted by: Tom on September 1, 2006 7:12 PM

The modern Buick's assembly quality and durability have been among the best in the business since at least 1989, per J.D. Power.

Buick customers know this, for Buick's customer satisfaction results are also superlative.

The Buick Lucerne is currently among the best-selling cars in its class (retail performance, and at MSRP). We have thus seen the beginnings of a Buick that has learned to emphasize perceived quality.

Buick is a brand of quiet attribute: of graceful presence; of ergonomic clarity and comfort; of easy power, and of reassurance.

Buick's customer loyalty is high, but - as many in the media have noted over the years - the virtues of the Buick are durable in nature, rather than slavish to fleeting fashion.

Thus it becomes all the more important to promote such quiet attributes more loudly.

Take QuietTuning, for an example.

The Buick Lucerne (starting at $26,265) has laminated side windows (yes, in all four windows).

By contrast, the (excellent) $62,495 Jaguar XJ has only just - for 2007 - received acoustic laminated side glass. Lexus won't sell you a car with such a feature unless you opt for the $60,000+ LS460L.

Certainly, Buicks are built with better precision than ever before (in Lucerne, we're talking interior fits to within a millimeter). Yet it's hard to enjoy craftsmanship if noise; vibration, and harshness levels are not equally exemplary - and Buick clearly understands this.

  • We could talk about other aspects of QuietTuning, in which every current Buick goes a few steps further than the competition.
  • We could further discuss linearity of primary controls; smoothness of transmissions (rather than simply the peripheral number of gears), or the fluidity of handling in general.
  • We could wonder why at least two models that compete with Buick cannot match LaCrosse and Lucerne's fluency on the road (and we might find the reason at their rear wheels: a pair of uniquely expedient MacPherson struts, two links where Buicks use three and four).
  • We might find that Ferrari and Audi have this year begun adopting a form of the Magnetic Ride Control offered on Lucerne since last year, and by General Motors for a decade.
  • We might even be truly shocked to learn that a LaCrosse CXS red-lines higher than an Acura TL, while developing its peak torque more quickly, and offering faster (magnetic variable-ratio) steering to boot!

For now, with congratulations to Buick on its achievements, one hopes that the division continues to highlight some of the more surprising aspects of its engineering; of engineering, Beyond Precision.

Bring on the Enclave!

Posted by: Friends of Buick on September 1, 2006 8:00 PM

Mr. Lutz,

I want "resale value." This is my number one concern with automobile ownership, and if my present Cadillac does not have a high resale value, then I will be leaving the GM family. This talk of quality is all fine and dandy, but it takes time to both build a product of quality, and to convince the consumer that the quality is there; GM is out of time of this one.

Posted by: F451 on September 1, 2006 8:41 PM

Mr Lutz:
I would like to thank -you for communicating with "the avg joe"(so-to-speak) via the internet.
Now: for GM. the last GM we owned was in 1990.
Recently, my spouse and i had test driven the HHR.

The styling is fine. Great Looks, and fairly useful.
Decent MPG(EPA) ratings.

Issues(this also goes fort the Cobalt, and Malibu, for us, Import owners, Scion tC, Hyundai Sonata):
1) Whay are all the steering columns "high", like old school trucks were?(I know HHR Most people do not want to Reach Up(have their hands at Shoulder Level to drive, with the column all the way down).
2) Travel of sadid steering columns: Not enough Down Travel.
I put the power seat (height adjustment) on the HHR, to try to amke the steering.seat position Comfortable: well, about the time I ogt high enough so that my arms were at Normal (other makers) automobile(chest or lower) height(column/steering wheel)...My head was hitting the roof liner!
That's Not A selling point, Being Uncomfortable.

Those are the 2 main gripes, really.
But, 2 BIG gripes. If We are NOT comfortable behind the wheel of ANY vehicle, no matter how good it looks, quiet it is, etc, we aren't buying.
Someone needs to put your designers in the PT, and design the dash. steering wheel travel, and column, exactly same height....(and get rid of the "goose bump dash board, makes it look cheap).

Also, PT has slightly better(at least to us) turning radius(by not much, though).


3) Brake Pads: sounds silly, but my in-laws ahd a Cavalier, and about every 20-25,000 (mainly) hwy miles... they had to repalce brake pads.
My Old Sonata got 87,000+ before I had to replace brake pads.
Our 1990 Sentra had almost 120,000 miles!
How much more costly is it for better pads?
Dealership service centers may like seeing someone once a year ($$$$ in their pockets), but most people I know do not care for that.

Also, put your designers in a Scion tC, and that is about how the Cobalt should be!
160HP, 32-34MPG hwy(after 10,000 miles, before was 29-31) Cobalt, hardly has any shoulder or head room(same for rear seats)and seems anemic- in comparison -to 60.
Saw a G5, in Indiana, at a Bucik, Pontiac dealership, and it looked as if one side, dirvers, had a 1/2 inch Gap between the hood, and the grille area, and the passeneger side looked normal, tight gaps.
That's not a good thing to see.
Also, for 17,199(maybe a few hundred more now) our tC with automatic, was loaded.
I would like to buy Chevy again, but, there is really no compelling reason to, for us.
You have Hyundai, Kia, now Suzuki is finally getting good, and has 7/100K warranty,
mazda,and who knows what the Chinese will do by 2015, or India(ns).

Here's an example of where GM MISSED a chance to gets tons of imports buyers:

Remember the 3 door Anatara from the autoshows earlier this year, touted as a "Vue" replacement? Wellll... in June, sites many autoblogs, car news sites, showed us what you all really are sending here: a 5 door "Vue", that looks like Last Generation Santa Fe, but Uglied Up.
Who wants that? Yes, there are loyalists out there that'll buy anything w/o question.
But, there seems to be more people Looking Around (see your market share numbers)than ever before.
The THREE DOOR ANTARA was praise don blogs, and the minute the 5 door hit... it got panned almost like the new Chrysler Sebring, for being "ugliest new car of 06"(don't believe me?Then just ahead and look at sites such as autoblog,thehollywoodextra,
detnews, motorweek,other forums, autoweek).

You take GREAT SCION KILLER LOOKING VEHICLES FROM OPEL,AND then decide to UGLIFY Them , and Anger Potential Customers.

Why?
Just liek the ION replacment: People WANT the 3 door, with the odd Panoramic Windshield(if possible) for USA(too), not just a 4 or 5 door thing. Aren't there enough of these?
Scion is 3 door... sporty car, and sold nearly 75,000 units last year, and are not on track to out-do this by 10-15,000 more sales this year, if projections hold up!

You need to be more UNIQUE, not "Me-Too"!

Sorry, this is not an attack. I did not get to participate in the Feb deal that you had mention in your blog post, Mr Lutz.
So, this is my participation, from someone who barely notices GM these days.

I do not partonize Honda, either, as they are priced too highly for what they have.

So, I am not some "Honda-Boy fan"(middle aged man, to be honest) posting and ranting ehre.
I buy what is the best deal, as long as it is not ugly, runs good, decent ride and handling, NVH is good, and decent MPG.

Not asking for BMW(supposed) quality, for 15-20K, just at least Hyundai quyality for that price, not pay 25K for something, that i casn get for 17K, and as good.

Also, raise yourwarranty. Could it possibly hurt?
Also, fix Aveo(Daewoo). It now looks nice.... but if that's all it has, I ain't redy to consider it.

Thanks for your time.
Take care/Not offense.
Hope when you consider Opels, maybe bring some of those THREE DOOR MODELS to maybe Pontiac, or Chevy,if you won't put htem on Saturn lots.

Posted by: John on September 1, 2006 9:00 PM

Quality also means cars that will still be trouble-free and easy to repair (with available parts at decent prices) when they'll get old. That's a thing GM must do to increase the resale value of it's cars as well as retaining it's actual customers.

An example of a thing that shouldn't happen: I have a 15 years old (1991) Buick Park Avenue Ultra with the heated windshield option. It stopped working when the car was less than 5 years old and the electronic module that controls it was completely disintegrated when I removed it from the car 5 years ago. I went to my dealer back then to get a new module and it did cost over 800$... I'm guessing that no one bought one of these at this price!
I tried finding one in junkyards but they were all in the same condition as mine. Why GM didn't correct this situation and sell an ameliorated replacement part or at least sell it for a reasonable price? This part was probably discontinued since I inquired about it and those left on the shelf were thrown away instead of being sold at a reasonable price to a satisfied customer!
The 90's cars A/C systems also have a lot of problems, I rarely see an early to mid-nineties full size GM car with closed windows on a hot summer day. I understand why most people don't have their GM car's a/c system repaired since I spent over 2500$ on mine over the years, it would have been wiser to keep that money to buy a car from another manufacturer...

I have much older GM cars with working A/C systems and they are much more durable (the only thing I have changed on my 1975 Buick A/C system was a compressor seal and the desiccant in the dryer...)

I hear the same kind of complaints about reliability from owners of 5 years old GM cars while most of those who own imports of the same age or even 30-40 years old GM cars are still pleased with them!

If you want this corporation to be healty again, you must do everything possible to make solid, reliable, easy to repair cars. You have to think about long term because most buyers think long term. And for those who lease, GM has to think long term too or GM won't be able to find someone willing to pay the balance after 4 years!

Posted by: Phil Racicot on September 1, 2006 9:34 PM

There were a lot of things Jack Welch taught us about running a successful company and GM will be wise to heed a lot of them. One of those lessons...

1. Perfection can be profitable.

The Sigma system for measuring quality was born and an obsession for perfection led to savings no one thought possible. Imagine what kind of savings GM could reep doing the same. Imagine recall costs and powertrain coverage costs being reduced to insignificant amounts.

How can you do it? Ask the experts at GE.

Among the other lessons from GE and Jack Welch...

2. Build, Tear Down and be Unchanging all at once.

Build: Buy ocmpanies that have a prospect of double digit growth.

Tear Down: Sell companies that don't.

Unchanging: All your businesses grow at double digit rates, and have prospects to continue that growth and they are #1 or #2 in their field.

Bob, GM can take the lessons of GE and do infinitely greater things. Chrysler's mantra was "the only constant is change." Well they changed their product guru and they are loosing their way. Some things must remain the same. Ford has Bold Moves, well I would rather they be smart moves.

Today, even NASA to touch the stars they are going back to a RETRO design. New mantra, "Don't reinvent the wheel" or "If it ain't broke don't fix it". If you had any idea how much time is waisted in a day fixing things that ain't broke and reinventing the wheel...

Bottom Line.

You need to bring back some heritage to Buick and it too needs to grow by double digits along with the domestic and international divisions. Here I am not talking about Cadillac, I don't fix what is not broken. Hay if I sold nearly a million vehicles and now I am trying to break 100,000 I wanna know why. Oh it's just a division don't worry, well I am worried.

You know there is a Honda dealership down the street, a lot of construction, a lot of expansion going on. If you expect great things you expand your walls.

Call me an optimist but I don't think the walls should be closing down on any of GM's divisions not with you around. Call me an optomist but if I called out GM's success 13 months ago when EVERY Joe analyst was calling for doom and gloom, I would call me acurate.

Expect perfection and growth for every division and accept no less. By the way excellent cars, excellent sales numbers and trust me.

Everybody I know is headed to a GM dealership for something or other, they are talking about your cars before they hit the autoshows and everybody and their brother is waiting for a their perfect pick-up. You know, HP deisels, full size flat bed Hummer this-that.

Yup, GM isn't waiting for success, success is waiting for GM.

Posted by: Edward Hayes on September 1, 2006 9:43 PM

I just bought a 2006 Buick LaCrosse, a great luxury value in sexy sheet metal. Styling did make a difference.

But I also have a new aspirational car after test driving the new Buick Lucerne. It was the Lucerne's looks that first brought me to the Buick dealer. That car has presence. While I couldn't quite stretch the price difference to the Lucerne, it was stunningly impressive in ride, drive, and styling (inside and out). I loved the ventilated leather seats. The Lucerne is a compelling executive car.

But this purchase is a family car and my wife liked the curves of the LaCrosse and I liked the tremendous value. The LaCrosse offered a luxury interior and styling at a compelling price. (The biggest luxury sacrifice is a smaller backseat than the Lucerne.)

I compared against Toyota, Lexus, Hyundai and Chrysler. I am in my mid-forties and the LaCrosse is my first GM car. I tried the Buicks because of recently strong quality ratings and positive reviews. The Buick ride and quiet tuning are real advantages. The styling is no longer geriatric.

To my senses the Buicks delivered smooth ride without compromising handling much better than the Toyota products. The Toyota Camry and Avalon both felt more front-end heavy and vague. I liked the dimensions of the Camry but not the styling (especially that grill). The Avalon is downright ugly. The local Toyota dealer is atrocious which led me to Lexus and better styling but the space inside for the price was unnecessarily expensive. The Hyundai Azera was a great drive but didn't say upscale in exterior styling, a little too generic for the price. The Chrysler 300 is a great car but not as well styled inside as out. For instance, I liked the new GM switch gear for HVAC and radio much better than the Chrysler's. I didn't consider the Ford 500 or Mercury twin due to boring styling inside and out.

Quality has to be there to be considered, but styling is a huge determinant in deciding amongst many choices. Buick surprised me with unexpectedly competent and well-styled cars. You have a convert to GM and Buick.

Posted by: Daniel P Winegarden on September 1, 2006 9:45 PM

So far so good...

But, I have to say one thing is lacking and in a big way.

The paint on all the cars from the Cobalt to the Sky and the new 900 SUVs to the Caddy's needs to be fixed. its like if I even look at my paint on my Cobalt it scratches. Are the layers are too thin? The dealers will not help and it's quite embarrassing.

A co-worker of mine delivered a Sky today and thee paint was disgraceful. It's pretty bad bob, help!!! I'm sick of trying to to change the subjuct to the quality of the car when my customers point out the Orange peel on their new Vue. Or explaining how my Cobalt has no rattles and drives like a dream when someone points out my crappy paint job.

help!!!!

Posted by: Robert Gasper on September 1, 2006 10:39 PM

One thing everyone wants is choices. Seems all the auto manufacturers make everything standard and options aren't available.

Case in point: 2007 (new ) Sierra reg cab can't get the uplevel interior, 6.0L engine, nav, heated washer fluid or leather seats. Why not?

I know its a complicated thing to produce an automoble but why not make options available on an extra cost basis (since it seems the idea is to streamline models and types to certian configurations to save money)??

Posted by: Tim on September 1, 2006 10:40 PM

I hate to compare GM with Hyundai or Kia, but extensive warranties are how they got around the issue of people not trusting their quality. In the Korean's case, it was largely due to the fact that they were newcomers and relatively unknown. Selling cheap cars, people were, of course, cautious.

GM has a bad rep., and most people don't need much to validate that bad rep. and apply it to current cars. Unfortunately, they earned the bad rep in the '70s and '80s, and it is not applicable now. But if most people hear that your friend's mom's Uplander's cupholder broke, they think, "Typical GM quality..." And the myth continues for another decade for them.

GM has to look at how Toyota earned it's bullet proof rep. (apart from current recalls). People had to be forced into Toyotas in the '70s by the gas crisis (okay, GM can't realistically pull that part off), but they found that the cars needed less service than their American counterparts as far as length of time between tune-ups and such, and began liking them. Now here is the key: Toyota backed that up by making sure that most everything they did reinforced that good image. Yes, some of that image is just PR, but if you buy a Camry, or Corolla, or Sienna you can be pretty sure they will all be of the same standard of quality and you don't have to ask around if "this is a bad year for the Corolla" for instance.

GM has to make sure that everything they do is up to the standards that we have been seeing lately. Even if it means holding back some vehicle releases, flawless consistency is ABSOLUTELY necessary. If every car they make is top notch, but the brakes in their SUVs (say the GMT800s) are undersized and warp etc, than people will question other decent cars. GM needs do everything in their power to keep more of those less-than-perfect-vehicles from getting on the road. It's sad to hear that certain 3800 V6s have intake gasket issues, or that the Northstar had flaws in the coolant/cylinder head gaskets leaking, or the knocking in the Vortec truck engines. Those kind of things put people off and they will be afraid to buy new GM vehicles, no matter how good they are.

GM is doing an excellent job lately, and though they cannot afford any missteps the way Toyota can, if they continue producing a lineup consistent with their newer vehicle quality, in five years time people will began to take note. GM HAS ALWAYS HAD CERTAIN MODELS THAT WERE QUITE RELIABLE AND WELL MADE, BUT THEY HAVE ALWAYS HAD SOME BAD ONES TOO. YOUR AVERAGE JOE CAN'T TELL THE DIFFERENCE, SO THEY WILL GO WITH THE SURE THING. GM, YOU GOTTA BE THE SURE THING.

Posted by: Eric Biran on September 1, 2006 11:36 PM

My Lord, could it be longer warranties?
YES, Bob, please say thats what it is!
And please announce it before September 24 because I'm moving and I will need new wheels. I would like a Cobalt possibly but I'm concerned about reliability. Possibly a Malibu also, concerned for the same reason.
A long warranty would put me in a Chevy.

Posted by: SteveG on September 2, 2006 12:11 AM

You say that you have something bigger to say in a few weeks about quality, I hope it's that you/GM will increase the warranties.

Posted by: Jon on September 2, 2006 1:00 AM

forget the "get people out to test drives" with hot dogs.
How did Toyota get us out for a Prius test drive? Gas cards!
One dealership offered gas cards.
Hyundai, a few years ago, before sales really took off, had diners club card(50 dollars) and 100 dollar for XG300 test drive, paid about 6 weeks later, with a Traveller's Cheque.

Nissan tried to use cheap(I mean cheap, as in broke after 4 pictures were taken), 35 MM cameras, a CD, and other really cheap stuff(99-2001).

Of course, almost every dealership , including Kia/Hyudnai, offered free Oil Change, and "breakfast"(OJ, Coffee, Milk, and donuts) while you wait for the free oil change.(that went over like lead ballons at a child's birthday party, I was told, by the service center manager. Did not sell One Car in 4 hours, but did alittle over 100 oil changes. Took a loss. Shortly after, the service center mgr quit, and so did the a few others, in the sales staff).

They did the (at Chevy) Coutnry DJ guy, gave away some (really cheap) T-Shirts, and Pizza. People showed up, and they sold 2 vheicles in 5 hours of doing this, on a Saturday(11-4).

Build stuff people want, and they'll show up.

The Aura seems to be starting off well.
The G6 is selling.

I dunno what 2 say.
Bring in more Opels, 3, 4 and 5 door versions, spread 'em out throughout some of the divisions?

5/100K warranties, and 5/60K(for bumper-to-bumper) might not hurt, especially since the Ford Focus has a 5/100K.

HyunKia has 10/100K (both set record sales month, and YTD record sales...see August sales).Even little Suzuki is gonna break(most like) that un-attainable 100K units sold in USA(most likely) this year.
They have 7/100K tranny warranty(but the paltry 3/36K bumper/bumper).

Make em mor elike Original Opels(not GM's idea of what people want for USA), and you'll get Import Conquest sales. If not.... well, go look at Toyota figures for August, they aren't too far behind Ford.....and that is becasue they added Jag, mazda, volvo, etc, sales to their own!
It's not like they OWN (they control) these makers, is it?

Posted by: Johnnie on September 2, 2006 1:09 AM

I have not seen your plans to raise consumer awareness about your cars' quality, but one thing I believe you must do is to make sure that you rise to the top in the consumer report magazine surveys. The consumer report ranking is like two thumbs up in movie reviews. It summarizes one quality index that many people use (or justify their choice) in making a car buying decision.

Posted by: alex on September 2, 2006 1:55 AM

http://en.wikipedia.org/wiki/Opel_Antara

Mr Lutz:

See the 3 door Antara? That Is What a lot of people are clamoring for(as you said, STYLING, in your blog entry).
What do we get? The Brown... 5 door version(on the right , in this link).
Now, while the 5 door is not bad, if you care to, go to autoblog, jalopnik,
autoweek, and on and on and on(a simple google search will net all the sites, with the stories, And Comments, Many Negative, on this vue replacement, the 5 door vs 3 door).
I am betting we get simialr treatment for the ION replacement. many peopel are wrok got excited about the 3 door version....with the Panoramic windshiled available in Europe... but, from "news", we get the "also-ran" 5 door/4 door versions.
How are you supposed to attact Youth(isn't that waht Saturn was originally about, taking Import sales and attracting Youth market to GM?)with family suv's and sedans and 5 door wagons(that are not "cool". Scion knows how to attract Youth...Import Buyers on target to hit 200,000+ sales this year. If they really wanted to, they could probably pass everyone with Scion division,in sales, except for maybe Hyundai--Big 3, Honda, in USA).

Not attacking , just saying.... you say Design and Style, I say Bring It!
Don't make it look like a vehicle mom and dad would drive... youth want 3 door Antaras, not 5 door Santa fe wanna be's.


I like the G6, but find no compelling reason to purchase one over a Ford, Hyundai, Mazda, etc..
Where's the 8 seating postions, for example? Even a cheap car like the (slightly over) 10,000 dollars /3 door Accent(2007 model) gets the 8 way adjuster(manual) for seating!

What confuses me is a lot of stuff is made in Mexico(doesn't it cost less than S Korea to build there? Stories on the net claim so, like on Wardsauto,etc said so awhile back). Why is it more costly than Hyundai/Kia or Ford , etc?
Makes no sense.
Take Care/ Not Offense.


Posted by: Mr Lemkel on September 2, 2006 2:04 AM

While I don't entirely agree that "quality is a wash,"* I think the best way to promote your quality message is to stand firmly behind what you make and sell- by offering the absolute best warranties in the industry. Right now that means better than 10 years/100,000 miles on the powertrain and a 4 year/40,000 mile bumper-to-bumper warranty. That's a minimum.

*If, in fact, "quality is a wash," would it make sense to buy a Cadillac instead of a Chevrolet? Cadillac is marketed as a "premium" brand, Chevrolet as an "economy" or "value" brand; if there is no difference in quality, given equivalent features and optional equipment, why would a Cadillac command a premium price?

Posted by: Beaugrand on September 2, 2006 2:05 AM

Bob, While I admit that GM quality has come up in past years, there is still some work to do. In my opinion, GM builds some of the worlds best drivetrains, has some of, if not the world's best technology that are unfortunately let down by a tactile exeprience that falls short. The perceived quality, the grain of a plastic, resistence on a rotary switch, the sound of a door closing are all lacking. As the designs come around and show more passion and individuality, the build quality and materials need to come up to meet that world class level. Two weeks ago at Concours d' Elegance, there was a 1958 Eldo for auction, it made me sad to look at it and think that there once was a time when a Cadillac was the best car in the world. I hope GM gets back to that point, I truly do. Hey, while you are at it, can you get some of those engineers and designers from Holden that worked on the Commodore VE? Now those are some car guys that know what they are doing.

Posted by: Rick on September 2, 2006 2:21 AM

Bob:

I agree, GM needs to get the *quality* word out. But that can be tricky because it is sometimes difficult to visually see quality. Quality for me means durabilty and solid repair free product performance over time. How do you show that? How do you test drive that? It is very difficult. However, perhaps if you could demonstrate some of the superior assembly, manufacturing, and design details that now make GM's vehicles superior through a cumulative series of informative ads it may help. I like most people see the end product but really have no idea what goes into the production of these vehilces and what improvements are made that makes them higher quality today. I hear what you are saying...but I really need to see it too.

Posted by: Randy Mennear on September 2, 2006 2:30 AM

NAIL ON THE HEAD, you hit it.

Now consider a way to have yearly cosmetic changes through a normal product cycle. (low cost planned components like grilles, lights, wheels, etc) Keep the buzz going. People like having the latest model and not a copy of the past few years. Resale may suffer a little, but styling will prevail over future resale value at the time of purchase.

Posted by: Rene Curry on September 2, 2006 3:09 AM

"I have said repeatedly in recent years that one of the reasons beautiful, compelling styling is so important in today’s competitive marketplace is that quality differences among automakers are almost negligible." -Bob Lutz

I couldn't agree with that quote more. Of course, success in the car business is a combination of many factors, including beautiful, compelling styling.

If a car hits the trifecta of design, price, and quality, there is one more hurdle before true success can be achieved.

The "gotta have it" factor.

An example would be Apple's iPod. There are other mp3 players on the market that put iPod's feature set to shame, yet iPod has the largest market share. Apple has, either by luck or design, tapped into the lowest common denominator of human psychology. The inability of ad agencies to repeat this phenomenon on a regular basis means that the science of it is not understood. Marketing is the final frontier. And considering the state of the human race these days you've got your work cut out for you!

Posted by: Tom W on September 2, 2006 4:04 AM

Something that GM could do to raise their consideration level is to make or bring a car like the Holden Commodore to the U.S.

A 4 door, rear wheel drive, 6.0 V8 car would be great for GM.

With Chrysler giving a green light to the Challenger, they will now have 4 models with rear drive & V8's.

Posted by: Mike Palumbo on September 2, 2006 8:33 AM

Intellichoice informs people of the potential cost of ownership on a vehicle over 5 years.

Using their data
2006 Impala LT with the 3.5 V-6 (as 2007 info was not available)
TOTAL COST of ownership over 5 years - $32,202
2007 toyota camry Hybrid
TOTAL COST of ownership over 5 years - $32,611
2007 toyota camry LE V-6
TOTAL COST of ownership over 5 years - $33,400
2006 honda accord Hybrid
TOTAL COST of ownership over 5 years - $34,706

THIS IS THE ADVERTISING GM SHOULD BE DOING!!!

Posted by: Dsuupr on September 2, 2006 8:33 AM

I make my comments not to gripe but to point out one consumers point of view. IMHO you have two wrong assumptions. First, you said we need to get our quality story out. IMHO You don't have an advertising problem but a quality problem. Second, you said "One look at the most recent J.D. Power Customer Satisfaction Index, or the Dependability Study, or the Strategic Vision study, or any number of other independent third-party measures will prove my point." I look at Consumer Reports and their recommendations. That publication is readibly available to consumers. For example, in the last edition where the ZO6 is tested and comes out well in their testing. However they state, "Corvette reliability has been much worse than average so we do not recommend it." What I am saying is Consumer Reports is the BIG ELEPHANT in the room that GM ignores or insults. While the differences in quality may be small I personally do not expect to take a new car back to the dealer for warrenty issues.

Posted by: Carl on September 2, 2006 9:29 AM

Just in the last several years I have become increasingly disappointed with the materials finding their way into GM interiors. Hard plastics with faux leather surfaces have migrated from the lower doors to the center consuls to the top of the dash! Gap spaces may have improved, but materials certainly have not. It's like some of th latest interiors where designed by Rubbermaid. We're going the wrong direction! Bob, please help us out.

Posted by: Steve Albracht on September 2, 2006 9:38 AM

With all due respect, the only quality report that counts is Consumer Reports. This magazine has such a strong influence on the purchasing decision that when the auto issue comes out in april, it even affects the GM stock.

Now couple of troubling facts:

- Their ratings are done by their subscribers only. Around 1 million answers this year.

- 50% of this 1M own Asian brand. This means that GM Ford are underrepresented in this study.

- Read CR M. Lutz and after this, tell me honestly that you will buy a US built product.

My conclusion is that the GM corporation must do a couple of things to repair it's reputation:

- Build a serious product that has solid and proven components. In GM dealerships, you never hear of brake problems, rattles and mechanical issues in a Vibe. This car is built with Toyota. You have the example in front of our very own eyes. Do the same with the other models.

- Stop thinking that GM has a perception problems. M. Lutz, get your facts directly from the horse's mouth; the technicians working at a dealership. Precious information regarding quality is shielded by too many layers of management.They are lying to you, singing the anthem that will please higher management.

-- Something must be done about Consumer Reports. In my view, for the last 25 years, they grew a culture which is strongly pro Honda and Toyota and favor asian corporations.

-They very rarely have favorable comments about GM. Lukewarm at best.

- You should ask all your employees to subscribe to CR and answer the annual survey. on a voluntary basis of course. There is no other way to voice your concerns into their database. GM has around 15% respondant in their sample; you have to reequilibrate their data.

-Make this part of the corporation action plan. This survey overshadows any other quality or satisfaction survey.

Thanks for reading this.

Posted by: stratojet on September 2, 2006 9:42 AM

Bob,

Even as you strive to tell the public about GM's improved quality, I think there is one more area that GM must focus on, and that is improved dealer network. If you read posts on any GM vehicle related forum, you will come across many posts that talk about the poor experience with the dealer and how they will "never buy another GM car again". I think notifiying the public about the improved quality is great, but you must also convince the public to trust the dealerships as well. Like a post above me stated, his dealership sold many cars and that was through a good relationship (and some clever marketing) with the community.

Posted by: Alpesh Jethva on September 2, 2006 10:10 AM

quality? you have to go after precieved quality. and the only way of doing that is to put better leather, rubber, plastics, and switch gear into each car. i have been buying gm products my entire life. i have yet to drive a non-gm car. but my next car will not be a gm model until gm has these three qualities. 1) greater than four speeds, 2) OHC engine (unless its a sports car) and 3) greater quality materials inside the car. And no, the saturn aura is not that car, close, but the interior is still behind that of a VW passat, Volvo S40, Accord, or even a Fusion.

Posted by: mike on September 2, 2006 10:13 AM

Bob--

The easiest way for you to "get the word out" is simply to increase the warranties on your vehicles. I don't know how many people have said it, but I'm sure it has registered in your mind...now GM needs to act.

J.D. Power, Strategic Vision, and other quality indices all play second fiddle to the time and length of warranties when buying a new car from a formerly tarnished car company, such as GM.

I'm making the last comment because Toyota warranties are obviously not as long as some of the Korean automakers, but in a sense, they don't need to be: they've proven to everyone that their quality has been rock solid for the past 30 years. GM still has a tarnished reputation it needs to correct in the minds of the auto industry.


Chrysler encountered a similar situation in the 1980s when they were borderline bankrupt...and what did they do? They came out with a 7 years / 70,000 mile warranty on powertrain parts for their vehicles. It helped restore buyers' confidence in their vehicles.


In short order, INCREASE THE LENGTH AND TIME OF YOUR WARRANTIES. Doing so will not only assist in new car sales, but also help to bolster used car residual values--another key element of new car purchases that GM is dragging on.

The answer to getting your message out is simple, uninnovative, and necessary. Now, just do it!

Posted by: Adam Wadecki on September 2, 2006 10:27 AM

Here are My coments.
-Improved steering feel in the Kappas.. Just to win comparisons aganist the Miata..

On a More serious note
-Better Warranties on all Vehicles
-Navigation in the Aura, We were looking at one, but my wife gets hopelessly lost, and unless its a dealer installed option, this might be a deal killer
-Empasis on your quality-of vehicles in commercials instead of fire sales to help we consumers keep our vehicle resale value high.

Otherwise keep improving your products.. and offer a 1.6 Liter smaller engine in Cobalt and Aveo to match Gas consuption of imports..

Mbuku Kanyau Mbithuka

Posted by: Mbuku Kanyau Mbithuka on September 2, 2006 10:56 AM

Bob,

If you sincerely want to regain customer confidence about the quality of GM products, offer a better warranty like Hyundai did. Hyundai changed its quality perception by offering it's 10 year 100,000 mile powertrain warranty. Hyundai then proceeded to significantly improve initial quality and long term dependability. Perception is now reality.

With the exception of the Duramax Diesel, Chevrolet offers the worst warranty coverage in the industry (tied with another company that changed it's mind). If GM doesn't have confidence backing the vehicles it sells, why should a customer invest their money on a GM vehicle when other choices like Toyota and Honda have a better warranty backed up with better long term dependability performance over the past 20-25 years?

Another way to increase customer confidence is to offer a small car that gets over 50 mpg. Fuel economy is a customer hot button. While it's great that 7 0f 8 Chevrolet cars get over 30 mpg, the new industry benchmark is 50mpg. The fuel efficiency of Chevy trucks is very good, and soon to get even better... but what about cars? Toyota offers the Prius that gets over 50mpg, and the Corolla and Yaris that get over 40mpg. That's a full 10 mpg better in customer perception -- a huge gap! Why doesn't Chevrolet offer a direct competitor to the Prius? Honda will by 2009...

I am a GM fan and am impressed with the quality of the most recent products, but perception is reality. In my opinion GM and especially Chevrolet is going to have to offer more value for less money for an extend period of time. That how's you change word of mouth advertising in GM's favor verses Toyota. Give customers something to talk about -- a better warranty and a halo fuel economy car.

Respectfully submitted,

Dave

Posted by: Dave on September 2, 2006 11:07 AM

Bob, You can say there is no quality difference when you get as many red balls as Toyoto and Honda in the Consumer Reports annual April auto issue.

Posted by: JL on September 2, 2006 12:21 PM

Design will get you some sales from the people who don't really care who makes their car or who are looking for a compelling reason to buy from an American based company. Performance will get you the enthusiasts. Gas mileage and other environmental factors will get you the support of those environmentally concerned. Quality will get you the mass consumer who is only partially influenced by all those other factors. Quality is where you get sales for Malibu's, Impala's, G6's, Grand Prix's, etc. Those are the people who are just looking for a good daily driver that will last a while, the bulk of the market, and quality is their main concern. It is something that for many people is just going to take time since it has become a perception. You can't change perception through an ad campaign, it has to change the same way it was changed to begin with. Positive experiences with cars. Once enough people have a Malibu and the paint doesn't come off in 3 years, the engine doesn't start leaking oil in 4 years, or they aren't stranded on the side of the road while the car still smells new inside. Those are the things that will bring people back, because those are the things that attracted them to Honda and Toyota. It takes time, patience, and focus, not a "Quality is job #1" advertising campaign (i.e. Ford).

Posted by: Dion on September 2, 2006 2:23 PM

With the passing of AB-32 the “California Global Warming Solutions Act of 2006”. And having language like this:

Section 39003 of the Health and Safety Code is amended to read)

39003. The State Air Resources Board is the state agency charged with coordinating efforts to attain and maintain ambient air quality standards, to conduct research into the causes of and solution to air pollution, to monitor and regulate the sources and reduce emissions of gases that cause global warming, and to systematically attack the serious problem caused by motor vehicles, which is the major source of air pollution in many areas of the state.

And the last paragraph of AB 32 states this:

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because, the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California
Constitution.


The key issues for GM, all other carmakers and Californians are:
Car is not in carbon just for phonics sake. Car is in carbon because cars are the major source of the Carbon being released in the atmosphere. SEC. 4 says, it will be a crime to exceed your carbon allowance. Like always, first in California then to the rest of the US.

What does this mean for American automakers? Give Americans GHG friendly Vehicles that get all the benefits offered by state and federal programs, like the tax rebates, HOV single driver sticker...
The only way to take advantage of these programs are 45 MPG, no Suburban will never get that, or a Dedicated Alternative Fuel Vehicle. That means E85 is out and LPG, CNG, LNG running dedicated are IN.

Ford Australia has the answer, 20% of their vehicles are running dedicated LPG. Most of the world is converting to LPG. GM, make the new Suburban run dedicated LPG and my wife will have her new Suburban she wants. Then I wont get hit with a fine for going over my Carbon allowance, pay less for fuel and maintenance, and help save the world in my big new SUV.

Posted by: Scott Crawford on September 2, 2006 2:47 PM

Bob,

I just have one question, why wasn't the Cadillac Sixteen concept ever put into production? I can understand that from a financial standpoint you probably wouldn't make to much money if any off of it. And I understand that you are not in the business of losing money. But come on, you could set the world standard all over again. When someone would say that something is the Cadillac of whatever, It would actually mean something. If Ford can make a world class super car in its financial situation than so can you! Its time to stick a sock in Jeremy Clarksons mouth and show the world just who's boss!

Posted by: Franknic on September 2, 2006 3:33 PM

Fuel efficiency is not a wash.

Read the article in today's Los Angeles Times business section about the growth of Toyota and Honda, and GM's upcoming production cutback. They tie it directly to ever increasing concern on the part of consumers about fuel efficiency. Page C-3, if memory serves.

Bloggers have commented at length about the fuel economy ratings of the Aveo vs. the Yaris, Fit and Versa. See the comments on your 2007 Aveo post below.

You were quoted in the press as saying that you didn't see the big deal about those cars, as you had gotten there first with the Aveo. Well maybe, but gas mileage is the bottom line with these cars, and the Aveo does not get the job done.

Step up and get the mileage bragging rights, and I'll buy one in a heartbeat.

Posted by: noel park on September 2, 2006 3:47 PM

Mr. Lutz,

I have enormous respect for you and what you are trying to achieve for GM. If you REALLY want to show the world just how high GM's quality is, then the only meaningful way to do so is to extend your warranties. Anything less will be dismissed as just talk.

It worked for Hyundai and can work for GM.

Bruce Sherman
Oakland, Oregon

Posted by: Bruce Sherman on September 2, 2006 4:36 PM

SOS! Give us an affordable car that doesn't look cheap! A car with volume displacement of 1.6L to 1.8L that can deliver above 100hp & 40mpg!

Posted by: onell annz on September 2, 2006 4:40 PM

I say combine great design with quality fit and finish plus good materials that dont scream "cheapo" in your face. Continue research into fuel economy and flex fuel technology and other alternate fuel engines. And as you say Mr Lutz, find out what people want and give them more of it

GM to survive has to be dominant in the four door sedan market once again. To do so GM has to overcome negative perception and bias within their own domstic market which is a damn shame. But the good news is you guys at GM is at last recognizing that GM must do something to recover lost esteem and respect. I see the new Camaro and it looks wicked, I also see the future Malibu as a serious contender it already kills the new DMC midsize offerings, I cant wait to see the new Impala and the family of RWD sedans and wagons it will spawn.

Oh by the way. Gutting and brutal downsizing wont work if they are not the result of new technology impacts. Its all about product product product!! GM has been downsized downscaled and downgraded for 20 years yet still we see asian imports treatening US Auto. You can do it Mr Lutz, you are the front line commander sir.

Posted by: Anthony Evelyn on September 2, 2006 4:59 PM

For the durability issue to be rested, there would have to be a 180 day side by side run of the Japanese auto against the GM one. In that time, a 150,000 to 175,000 miles could be racked up. The one with the least repairs wins. It's simple.

Posted by: getalifeagain on September 2, 2006 5:27 PM

Bob, you talk an excellent talk but you must, as they say, walk the walk as well. I'm a big GM fan and love to see GM taking marked strides in improving interior quality and interior design. But . . . and it’s a big but, GM still hasn't gone far enough. In many of your top of the line vehicles (Aura, Lucerne, GMT-900's, H3, STS, etc) the interior is fantastic (minus a few key elements such as Nav Screen, blue tooth, & duel climate controls), but on the lower trim levels (on many of the same vehicles previously mentioned) the interior leaves a lot to be desired. The other major turn off is base level power trains & transmissions. If I buy a base level Lucerne the last thing I want is an ancient, loud, pushrod 3.8L V6 that has bad NVH characteristics to boot. Please Please Please give us base models that are every bit as good as the top of the line models. I know you have price points & projections to meet (good job BTW with the Solstice being under 20k) but that doesn't mean you have to make people suffer because they cant afford the 30K car instead of the 25K car.

Posted by: Kenneth on September 2, 2006 5:31 PM

Improving quality and getting the word out is important. Equally important is the public perception of how GM handled problems up to now and if there will be a change in the future.
I think GM customers can accept some quality problems (there will always be some) as long as GM does not try to avoid fixing them unless the customer pays. Example, "It is not a recall, therefore we will not cover the repair." Or the frustrating repair cycle where the vehicle is repeatedly broght back to dealer service with the same problem.
Customers are more likely to give their friends a positive statement such as, "I had these problems with the vehicle but you know what? GM fixed them with no hassle."

Posted by: Scott Gitlin on September 2, 2006 7:04 PM

Bob,

As I have mentioned in a previous post, current public perception of GM quality has taken years to form and will also take some time to be revised upward. Only by building cars of the highest quality, backing these cars with competitive warranties and getting the word out (in GM advertising such as quoting J.D. Power Customer Satisfaction Index results, for instance) will perception change.

As an aside, the October 2006 issue of Motor Trend conducted a three way comparison between the Pontiac Solstice GXP, Nissan 350Z Roadster and the BMW Z4 3.0si. Guess what ? The Pontiac came in first place. This is an exciting car at a great price – a “cool” car the people who would not have normally considered a Pontiac would purchase. Provided it doesn’t fall apart or spring roof leaks in a year, this car will also generate a lot of word of mouth advertising. Further to my main point, if the quality is present, the word needs to get out there.

Thanks,
Chris Hayne


Posted by: Chris Hayne on September 2, 2006 8:19 PM

Detroits autos may be close in quality from an engineering standpoint, but percieved qualities, smooth eager to rev engines, attractive plastics in the interior, fit and finish lag products in comparable price ranges from other countries, and even Korea seems to be catching up quickly, can China be far behind?

Posted by: Pat on September 2, 2006 8:28 PM

Hi Bob,

I read that you are a car guy. If you are a car guy well then, that is some good news! I hope your efforts to right GM goes well and hopefully you will read this and it isn't some intermediary person trolling and filtering this. I know you’re a busy guy though. On to my comments.

Being a car guy isn't the only and most important attribute you will need to save GM. You will need someone like me as a full time or part time advisor. Obviously, I am an important customer who will influence decisions on car purchases for not only just for me, but for my family and friends now for many years to come. So far, I haven't steered anyone wrong, yet. For some reason that number continues to grow :) and unfortunately my recommendations have been for foreign brand. So far my influences have been adhered to. I can elaborate on that if you'd like, but I don't want to focus on the competition, but on GM.

The thing is that you would need to convince me a 34 year old, someone who has loved GM and felt burned by a GM purchase in the not so distant past. I do feel somewhat sad. Believe me, I don't know why I get so passionate, sad, emotional and a little angry about it. Maybe it’s because I didn't get my shot at a good quality GM sports car. You see I grew up in a family with a Dad who had a 69 Camaro. A man who immigrated here in 1966 and as a newly naturalized United States citizen purchased a 69 Camaro. Can you believe that, I still can't. My father turned around and purchased an 85 Camaro for my older brother without 'family consent'. Time passed and when I turned 16 my father had reluctantly gave away the 69 to the junk yard for 60 bucks. He did love that car and so did I, believe me that experience hurt. I should have told him I was interested in having it pass to me. I know what you’re thinking, I know the new Camaro is coming out; maybe he and I'll have another chance, maybe.

Well on to some advice.
1. You need to design cars and trucks with quality, heritage, fuel efficiency and on demand power in mind. I know that is obvious, but it still needs to written. I know your engineers are hot on these.
2. Keep it simple with the options in terms of packaging. For every product you (GM) produce, package all options in categories with no more that 4-5 choices A,B,C,D,E. This would make it easier to purchase a car.
3. Sell the power plant you are creating. The engine is the life of the car. People love to brag about how many miles an engine has on it. I know Toyota does this on occasion, I'm not recommending it because they do, it just makes sense. Let people know that this is a high technology piece, on par with or more advanced than a laptop PC.
4. Re-introduce the diesels (new and existing). Get a 4, 6 and 8 diesel out in front of the customer for car, truck and light trucks.
5. Create a cool looking 'beater' car for the youngsters, something that they'll have a hard time killing, but will create some lasting memories.
6. Introduce something that NO ONE would expect. How about a high performance (meaning power and fuel efficiency), maybe a high revving 2 cylinder (gasoline/diesel) in both a car and truck format. This line item could be easily combined with number 5 on the list. I know the oil companies would be b.s. but with them throwing you and the company under the bus, who cares.
7. Associate the brand with some key US history or some other nostalgic USA brands. Don't do it directly, meaning branded interiors, but get the message out that they helped and greatly influenced what is in the interiors. Do that honestly though. Why not open a dialogue with some 'imagine conscious' companies, Ralph Lauren (Polo), Coach, Nike and so on. Get some of them to consult on branding and interior visuals and materials. I'm sure they'd love to brag about their influences to some of your next exciting products.
8. Take each created automobile and create it and design it as if it was the only product GM was going to ever to produce. This will ensure the products like the Aveo have some redeeming characteristics and you (Bob) wouldn't be embarrassed to have to drive it for a year. Maybe just ask yourself, would I drive this car for a year?
9. Try not to rebadge obviously. I know it is necessary, but some of the attempts are laughable and cheapen your brand. I know you know what I'm talking about.

I have lot I could write a lot more, but I'm getting tried. So right to the most important bullet.

10. Have some one like me signoff on some of products before you let them out the door. You'll know I'll be candid and excited about it. I'll do it for free, for at least a little while anyway.
Tony F.

Posted by: AntonioFerreira on September 2, 2006 11:01 PM

Why do you have the OPEL/VAUXHALL CORSA offered here and not just Europe. Instead you offer an Aveo. I continue to not understand. Doesn't it make sense to use a common model that can sell it in all markets? By the look of the pictures it surely can. Tony

Posted by: AntonioFerreira on September 2, 2006 11:29 PM

Bob,

This is great. I am FINALLY hearing that GM understands the perception that they don't have superior quality, and you want to actively get the word out (beyond commercials and pointing to some survey). The Powers rankings show only what people thing about their cars initially. What GM needs is the reputation Toyota and Honda have - a car that will run for 200,000 miles with minimal repairs, nothing more than routine maintainance. At that 200,000 miles not only should there have been very little or no repair work necessary outside of the warranty, but the car should still be tight, solid, rattle free, and all the accessories should still work. People (like myself) who own Japanese cars will attest to this. My 2000 Honda Prelude has 156,000 miles on it and I've only done routine maintainance (brakes, tires, belts, plugs). The paint is still very nice, all the accessories (pwr. windows, cruise, A/C, etc.) still work great. I'm on the original stock clutch (which is hydraulic). And the car DOES NOT RATTLE! Every GM vehicle I've driven with over 100,000 miles feels loose, has rattles in places you can't find, and just doesn't feel like it should. Now, I understand over time (and potholes) parts, chasis, and plastic components can loosen and deteriorate on all cars. But the rate at which they do seems to be less with imports than with domestics.

If you are truly focusing on these afforementioned aspects, I will be even more thrilled (and proud) to buy that '09 Camaro Z28!

Posted by: Joe D, Cleveland on September 3, 2006 1:04 AM

Went to look over the new Aura and looks like you have another winner. Get a RED LINE version on the road immediately with the original fender flares and aggressive stance and get rid of whoever "refined" it. With the new Impala maybe things are starting back.

Get rid of the the pickups as cars. For gods sake I just read that a new F150 weighs 6100 lbs raw. That is ludicrous. I guess GM are also in that ballpark. Get them back to vinyl floors and no insulation, people are leaving them anyway. Get them back to working vehicles and you could reduce the weight by 1000 lbs. or more and increase the mileage that way alone. Get folks in the big sedans such as Impala etc. if they need a larger capacity. Society is finally looking down on Pickups, SUV as urban claptrap and are moving away. Ford just quit making MiniVans so lets move on. Once a vehicls looses its cachet its all over and down the tubes rapidly. Look at the sales of the 300C. Everyone that wants one, has one. Used car lots are full of them. Moved on already. Perhaps to the Impala etc.

Great Aura though. Looking to get one of the top line ones if a Red Line is not offered quickly. We need some BIG WHITE gauges in it or at least make it modifiable easily. Perhaps changeable faceplats etc. with 10 mph increments on the speedo. None of the 20 mph increments correspond with posted speeds. 45-55-65 and 70..get the idea. It takes longer to scan the dash and read the speed. Your Ergo folks should look at this 20 mph increment that is taking root in all cars today. Go back to 10 mph increments. Good luck with the Impala and Aura.

Posted by: mrbill on September 3, 2006 1:46 AM

Hi Bob,
I sell Opel , Saab and Hyundai, and I have really tested them all, and then i mean really testing them and there is a huge difference between the GME cars and Hyundai. GME cars are way better in performance, safety, quality and design. For example I have just bought a new Astra 1,9 diesel station wagon to my wife and I would never consider a Hyundai. We (Opel) have the products to sell a lot of more cars but but but but but but we don't have the reputation. Ten years ago Opel was GM:s cheapeast product in Europe and they really weren't good, they were crappy. Now we have great cars and as you self wrote we really need to get the word out there because every time I am going to sell an Opel to a customer that don't have an Opel now, I have to begin with a defense speach but it's getting better. But if you let Opel develope and build one more crappy car like the ones built late 80's and first half 90's, years of work will be destroyed. You really need to get the word out there because we have great products.

For US: I have noticed that Saturn considering selling the Opel Astra in the states and I must say congratulations to the American people, it is a great car, better than the Golf/Jetta and way better than the new Accent (what a crap). I hope that all of the Saturn Astra comes standard with ESP (standard in Sweden), because studies shown here in Sweden show that on icy and snowy roads, cars with ESP are involved in 50% fewer crashes.

Keep ut the good work and get the word out there.

Posted by: Örjan on September 3, 2006 2:46 AM

Bob,

I just have one question, why wasn't the Cadillac Sixteen concept ever put into production? I can understand that from a financial standpoint you probably wouldn't make to much money if any off of it. And I understand that you are not in the business of losing money. But come on, you could set the world standard all over again. When someone would say that something is the Cadillac of whatever, It would actually mean something. If Ford can make a world class super car in its financial situation than so can you! Its time to stick a sock in Jeremy Clarksons mouth and show the world just who's boss!

Posted by: Franknic on September 3, 2006 3:15 AM

The thing I have been hearing often lately by those people who will presently not consider a GM car is the short warrantees. Several have stated that if GM would improve them they would consider a GM product. They just don't believe that GM stands behind it's products.

Posted by: JR on September 3, 2006 7:05 AM

With all due respect, the only quality report that counts is Consumer
Reports. This magazine has such a strong influence on the purchasing
decision that when the auto issue comes out in april, it even affects the
GM stock.
Now couple of troubling facts:
- Their ratings are done by their subscribers only. Around 1 million
answers this year.
- 50% of this 1M own Asian brand. This means that GM Ford are
underrepresented in this study.
- Read CR M. Lutz and after this, tell me honestly that you will buy a US
built product.
My conclusion is that the GM corporation must do a couple of things to
repair it's reputation:
- Build a serious product that has solid and proven components. In GM
dealerships, you never hear of brake problems, rattles and mechanical
issues in a Vibe. This car is built with Toyota. You have the example in
front of our very own eyes. Do the same with the other models.
- Stop thinking that GM has a perception problems. M. Lutz, get your facts
directly from the horse's mouth; the technicians working at a dealership.
Precious information regarding quality is shielded by too many layers of
management.They are lying to you, singing the anthem that will please
higher management.
-- Something must be done about Consumer Reports. In my view, for the last
25 years, they grew a culture which is strongly pro Honda and Toyota and
favor asian corporations.
-They very rarely have favorable comments about GM. Lukewarm at best.
- You should ask all your employees to subscribe to CR and answer the
annual survey. on a voluntary basis of course. There is no other way to
voice your concerns into their database. GM has around 15% respondant in
their sample; you have to reequilibrate their data.
-Make this part of the corporation action plan. This survey overshadows any
other quality or satisfaction survey.
Thanks for reading this.

Posted by: stratojet on September 3, 2006 10:09 AM

Hi Bob,

I hope that the "something bigger" we are all staying, as they say, tuned for is warranty.

Longer, deductable free, power train warranty.
I don't just mean that you should copy Ford, I would like to see you guys one up the Asian auto makers.

Thanks for listening,
Jerrod

Posted by: Jerrod on September 3, 2006 11:35 AM

The opinion that high fuel efficiency is a wash is true for the vast majority of car buyers. But there is a growing number of American consumers that demand high mileage cars that are NOT economy cars.

That last part is the part that GM can't seem to understand. Aveo is a competent economy car that gets OK fuel economy, but I would sooner walk than own one. GM needs to produce a vehicle that has style and fuel efficiency.

Posted by: Louis Van Houten on September 3, 2006 1:46 PM

Dear Mr. Lutz,
jamie is correct. You have got to get people into your cars for them to see what you have on offer.
The Autotainment thing in Las Vegas is an awesome idea, but you should have more of them around the country.

Even more practically, you should consider:

1. Have GM Stores in malls and shopping plazas all over the country.
You don't have to sell cars here.

Set it up with two or three cars/trucks in a mall store for people to come in and sit in and touch/feel.
People are always on foot in malls and would surely not mind popping into another store to see real, live new vehicles (and buy or get free GM merchandise as well).

Imagine that! Getting to sit in a new, moderately loaded car without feeling the "dealer pressure". Then if they express interest, you can give out brochures, CDs and lists of nearby dealers.

You can have in-store demos/exhibits about your seats, gears, sound systems, navigation.

That way, you can get feedback from cutomers in various locations about what is important to them etc.

Take the idea and run! Good Luck!

Posted by: John Prescod on September 3, 2006 2:29 PM

Just heard that you are backing out on sponsoring a car for the next survivor on Cook island. Kudo's to CBS for daring to go where no one will. GM is a vehicle that will not be on a list for me to buy in the future.

Posted by: Terry on September 3, 2006 4:52 PM

Oh really is that why they continue the offer the I5 with no V6 option in the Canyon/Colorado? And now for 2k7 the GM encore is we will no long offer the manual transmission when you select the I5! Pssst, we did this because the 5 speed manual would not stand up to the added hp and torgue when we bored it out from a 3.5 to 3.7.
Talk is cheap GM!
PS This is why when I replaced my '95 recently I did not even consider the Canyon/Colorado.
I bought a REAL midsize truck, the Nissan Frontier with 265hp that gives me the same mpg's a the I5!

Posted by: Matt on September 3, 2006 6:07 PM

Bob,
This post is relevant to giving people more of what they want. In addition to styling, performance, fuel economy, safety, and quality/reliability, there must be some way that GM can initiate policies to further improve dealer service.
To most people, their only contact with GM is the dealerships. As a fellow car guy, I appreciate GM engineering and I have complete confidence in the reliability and safety of the vehicles. While my GM cars have never given me any trouble, I can't say the same for all the dealerships I've dealt with. My determination to support GM and continue enjoying the quality and reliability of GM products motivates me to work through any issues with the "bad" dealers.
While the import dealers are infamous for their price gouging and forced options and surcharges, they do not typically cloud new car transactions with overt dishonesty or decline requests for routine service. I have experienced both at GM dealerships. It is unfortunate that some GM prospects will end up in one of these dealerships and walk away disgusted and say "never again" to a GM product.
It is true that GM does not control its retailers or their operations. And it is very difficult to monitor their operations other than compiling statistics from the surveys that come in the mail a month after the purchase. And yes, there are toll free Customer Assistance numbers to register compliments or complaints. But too few people know of their options when their experiences turn sour, and they resort to internet message boards to gripe about their experience. And even if GM's customer relations hotlines are swamped with negative comments on specific dealerships, not much can be done.
Many others on this blog have said that GM should increase their powertrain warranties. Ford has recently done just that. But a warranty on paper is worthless if the dealers are going to decline your request for service or pull the old "cannot duplicate issue" trick that is employed by dealers selling vehicles made by the third member of the Big Three.
To your credit, Bob, I must tell you that your confidence and enthusiasm in GM and its current and future products have started a revolution. You will never hear about it from the media and their "experts", but I am hearing it every day from people who tell me that they are going to give Chevy or any other division another try. Lots of people I know - friends and family - are looking to trade into an Impala or HHR or Lucerne. My vehicles have OnStar and I am happy to take them for a ride and demonstrate OnStar, the OLS, and other "Only GM" features. I show them the monthly email that tells me when my car needs service. I show them my DIC fuel economy readout - currently at 29.1mpg average in my 3.5L midsize Maxx - and explain that GM vehicles usually exceed EPA estimates by 10% because in normal driving, their torquey pushrod engines spin 30% slower than the buzzy and sludge-prone DOHC engines used in import-branded cars. Even my brother's 2500HD truck is delivering fuel economy that is 10% over its EPA numbers. You can't advertise this in the papers because "your mileage may vary", but it is consistent among all GM owners I know, and this undocumented feature is a credit to the skills and dedication of GM powertrain engineers.
Thanks for listening. The fact that you do listen is another "Only GM" feature, and it is greatly appreciated. You are building a loyal following out here. People know your name and they are pleased with the results of your efforts. So in spite of the media slant, the word must be getting out there somehow. I am seeing more new GM cars and trucks out there on the streets, and asking people what they think of their new ride results in praise. Keep up the good work - it's really showing!

Posted by: Chris B on September 3, 2006 6:44 PM

Bob,

What you are saying is, of course, true about quality among the various vehicles. Style, comfortable seats, and engine choices differentiate. When someone really likes the style, comfort, and engine option, they will look for a reason to buy it. However, the issue is quality PERCEPTION. GM quality is the best, but non-GM owners aren't as well informed of it. A psychological component of quality perception is the perceived technological advancement, reliability factors, and efficiency perception. For this reason GM should clearly defend and promote its technological advantages, reliability, and efficiency. GM has been very effective in promoting performance, many are aware of "American muscle." Generate the same awareness with GM technology, GM efficiency, GM reliability, and GM quality. The Mark of Excellence should be clearly promoted, not merely assumed.

For any big ticket item, quality perception can make or break the sale. People who are not so knowledgeable about cars have a geniune concern about breakdowns and problems. GM's adversaries had a guerrilla marketing campaign, it will take time to counter it.

Many have heard a clear direct message about the quality of the Buick Lucerne. The Pontiac G6 message was flashy, but the quality message was not quite as clear as the Lucerne. GM should try a clear direct message about G6 quality now that all the models are introduced. Clarity matters more today. Why not be more clear and direct when promoting the Pontiac G6 quality like GM did with the Lucerne?

We suggested eliminating the Service Engine Soon light and replacing it with a routine service reminder in the information center on GM's upper line. The SES light is not good for GM's reputation, it is overly sensitive, annoying, and causes people to panic. People talk about it amongst themselves, "so did your light come on?," Yea, it came on and they couldn't make it go off". Many mechanics can't explain what makes it go on and off. The explanations are as diverse as the reasons.

Concerning style, GM should respond with a style update to the Lacrosse. Give it a headlight like the Velite concept and a painted non-grille like the Camry/Avalon. Also, make a performance version of the LaCrosse.

Similarly, the Impala needs a more competitve front end style. The Grand Prix needs a makeover. Pontiac needs a new flag ship with style.

Posted by: Edwin on September 3, 2006 7:25 PM

Good job so far!

Interior styling and materials has a lot to do with perception. Your
mainstream offerings should have integrated radios (not "intert
here" black plastic).

Exterior styling must be bold (not polarising) and you need to offer
more bang for the buck. AWD/RWD in your family sedans might help.

The hybrid route is excellent if you can move fast enough and keep the
cost low like in the VUE.

Lastly, up your warranties. Do more soft recalls out of the eyes
of the media.
Gather a database of complaints/repairs from dealers early so
you can modify production and design the replacements better.

I want a passenger sedan to beat the foreign competition. Give me more
room, fuel economy, less noise and more versatility than a truck
(well...).

Posted by: Russell on September 3, 2006 8:21 PM

First of all... congrats on the Aura, beautiful car, and I think I will purchase the hybrid when available. I'm torn between this and the Prevue, and the Malibu Maxx.. all great cars! I agree that GM needs to get more people test driving their cars.. they will buy. The only styling problem I have with GM right now are the logos. The chev symbol is outdated in gold, there needs to be silver option and more refined (compare to import cars). I think the Saturn logo is fine.. just remove the red.. its kind of tacky. The Pontiac symbol is fine, but again remove the colour.

Posted by: Mike on September 3, 2006 8:51 PM

It sounds like you guys are going to increase warranty coverage and/or launch a major ad campaign touting quality. I think both would be good ideas and increasing warranty coverage would definitely pursuade me to make my next purchase a GM product. You have to do whatever it takes to remove the excuses import buyers have for not purchasing your products. I think GM's lineup is the best positioned out of the Big 3 to get conquests from the imports. Your interiors are the best, your powertrains (HEMI excluded) are the best and you have the most variety.


Had a chance to rent a Lacrosse this past weekend. Very quiet car, I really enjoyed it more than I would've thought. Just give it (at least the V8 version) an 8 way seat. A car in that class needs an 8 way seat just like the Aura and Impala!

Posted by: sheth [TypeKey Profile Page] on September 4, 2006 8:54 AM

Although all manufactures offer a warranty period customers do not want to be constantly using it. But what is more important than this is the level of service. Land Rover has appalling reliability, but the service the customer receives is excellent. Because of that, it’s doesn’t seem to effect a follow on sale.

Clear differentiated quality in vehicles makes the buy of a certain brand more convincing. Living in Germany means that selling a premium brand vehicle to a German is like selling ‘ice to Eskimos’. With the new range of Opel vehicles being launched the quality is more than a match for the likes of Volkswagen for example. However; the Opel Vectra / Saturn Aura has a better interior than the Saab 9-3 at the moment, despite Saab’s new interior change for 2007.
If GM want to sell Saab in the same market segment as BMW and Audi then the quality has to be improved dramatically. Of course this will open the questioning of where Cadillac should be placed. Exclusive Luxury market? For Europe I feel it could work. Cadillac certainly has that Big and Brash image, similar to Aston Martin. But globally and especially North America it could pose a problem.

Design will always be a personal preference, but there seems to be a big push on having a ‘Euro style’ appearance. Design should be innovative and an evolution of the brand’s identity. Following like ‘lambs’ because that is what the market requires today doesn’t bode well when it can take up to 4 Years to design and engineer a new vehicle.

We are aware that there are a lot of factors which could all take the No.1 priority.
If we had to set an order then it is my view that they should be as listed below.

Quality Control / Reliability
Quality to Market Segment
Design
Engineering

Posted by: Woodruffe on September 4, 2006 11:25 AM

Mr. Lutz: You are correct in saying that styling is important in the auto industry but some GM products are handicapped by option choices that make the mid-priced models look like cheap rental cars.

GM does not offer Fog Lights on Impala. Monte Carlo, LaCrosse, G6 or Lucerne models if the base engine is ordered. A buyer can get Fog Lights on a Camry with the base 4-cylinder engine and this is true for over 90% of cars sold in the U.S. Adding fog lights to the Impala, Monte Carlo and G6 make these cars look more expensive than the $115 they cost as an option on the Aveo or Cobalt. And it is inexcusable on the “Luxury” brand LaCrosse and Lucerne.

Other content mysteries are that you must order leather seats to get a proper 6-way power seat on a G6, another is adjustable pedals are not available on Impala, Monte Carlo, Grand Prix or LaCrosse but are on the lower priced Malibu and G6. And leather seating and heated mirrors are not available on 3.5L Impala LT models.

GM advertises these cars as capable of 30 MPG and the Impala/Monte Carlo being E-85 capable but not for buyers who want Fog Lights, adjustable pedals, cloth power seats or heated mirrors.

The Impala could be the best selling car in the U.S. next calendar year if GM would revise the option content for mid-priced 2LT models. The Impala 2LT with 3.5L V-6 can deliver 35 MPG in the real world and be priced under $24K even after adding Fog Lights, Heated Mirrors, and Folding rear seat as standard equipment. Heated leather seats could be added as an option and 2008 models could add adjustable pedals and a 6-speed automatic to match the competition and increase the MPG.

GM could make this Impala available tomorrow but won’t and is a major reason GM market share in California is low and falling.

This is the Impala that will sell in volume in California. California buyers demand things like Fog Lights, Alloy Wheels and Fold down rear seats with good MPG at a reasonable price.

The same content changes would help G6, Monte Carlo and LaCrosse sales, but GM won’t change those models either.

This is a shame, just when GM gets styling and quality levels to competitive levels it refuses to go the extra few steps to finish the job.

You asked what we wanted; give us 6-speed automatics, a 5 year 60K mile bumper to bumper warranty, some content changes and your market share in California and the rest of the U.S. will rise.

Posted by: Rick Lupori on September 4, 2006 3:05 PM

Why didn´t GM start with CGI as blockmaterial back in 1996 when Opel had such a good Vectra winning many races? Now Audi and Ford has got good expecience using it in 100.000s of engines while GM just have been waiting.

Posted by: Sven on September 4, 2006 3:51 PM

Styling improvements are fine and appreciated, Bob, but if you feel this is GM's main responsibility - to build the best STYLED cars on the planet - once again you are focusing on a short term element.

Once a car is bought, does the styling __really__ matter that much to its owner? Do they sit outside their car for hours admiring its sleek flanks and curves? No. They are sitting __inside__ the car, using it to take themselves and/or family and friends someplace. Interior design, fuel economy, performance, and reliability are then the factors that matter, don't you think?

And sorry, Bob, while some GM products are getting better in that area, you still have a long, long way to go to catch up to Toyota and the other imports.

Why not try some more after-sales support and other factors that encourage us to keep and buy more GM product, once the "styling" has become old hat?

Posted by: kurt on September 4, 2006 5:42 PM

Mr. Lutz

What your doing right now with the company as far as quality goes is a step in the right direction. What you fail to take into consideration is the fact that GM has been producing junk for the past 25 years and it's going to take a long time for people to forget about that.
You and everyone else at GM need to stop running the company as a business. By that I mean nickel and dimeing production so you can make the largest profits. Then we the consumers get left with inferior products and in our discuss abandon GM for Hondas of Toyotas. As the saying goes you need to spend money to make money. It's a shame also that you killed Oldsmobile on purpose.
I want the products you sell overseas. Opel and Holden have some great products that should have been sold here years ago. I want to be able to walk into Chevy or Pontiac dealership and order a 4 door rear-wheel-drive muscle sedan with a stick shift for under $30k, and that should happen now.
Your going to release the Camaro in early 2009? You killed the car in 2002 all the research and development should have been done befor the car was killed and the new car should be out now. By waiting the market share is going to Ford and Chrysler, and when it does come out the public will be sick of looking at the thing.
I really want to buy your products. But with all the performance models I want to buy coming out near the end of the decade I don't think I can keep my Grand Am together in one peice for that long.

Best of Luck- Stephen

Posted by: Stephen on September 4, 2006 7:15 PM

Bob, one more thing...
If you do increase your warranties, please make it clean and simple to understand. No fine print at the bottom of the commercial, no fast-talking radio guy at the end of the radio ad. And don't exclude any vehicles!

Just keep it simple.

Posted by: Tom on September 4, 2006 9:44 PM

Bob,

I have said this before and I will say it again. You guys have integrity. Your EPA numbers are honest and hold true. My 1995 Nissan Titan truck, that I have since sold, had terrible fuel economy, it came nowhere near the EPA numbers. The truck went in at least 5 times for major warranty issues.

My 2006 GMC Duramax has 18k on it and has had not one single warranty issue. The mileage is 18 to 20 mpg mixed driving, I love the truck.
I just bought my wife a 2007 Suburban, WoW ! Awesome rig. You guys are executing on a great strategy and it is working. Do not let up and keep your momentum, and at all costs and by all means keep away from Nissan Renault. You guys will look back and be glad you did not get into bed with them. Keep up what you are doing. America is noticing, believe me.

Posted by: Mike Budig on September 5, 2006 1:01 AM

G'day Bob,

Unfortunately a reputation for Quality is earned, it is not sold overnight to the cheapest bidder. And in the mould of the late (and great) Steve Irwin, you must have a passion for your message if you want people to believe your hype.

GM is showing its commitment to an environmentally friendly future with alternative-fuel concepts such as Sequel, but it hasn't yet shown its commitment to improving its quality. If you want to have quality product, you must have quality throughout your supply-chain. You cannot rely on using the cheapest bidder for parts supply, you must put in place the necessary systems & measures to ensure you are selecting suppliers based also on quality. If you do this, then you start building relationships with suppliers who you can be confident will provide you with quality product and your cars will then start reflecting this quality. This is the Toyota way, it is how they built their reputation.

Until you do this GM will always be the make-believe 'Crocodile Dundee' and not the real-deal 'Crocodile Hunter'.

Best regards from Down Under.

Posted by: Arfy on September 5, 2006 3:17 AM

"Give the people more of what they want" sounds like a query for what we want... so...

Build a small-to mid-sized DIESEL 4x4 SUV or truck, with a manual transmission, and a transfer case with a low range, and I'll buy one. Given Jeep's success with the CRD Liberty, I think a few other people would buy them as well.

Why a Diesel? All the usual reasons (fuel consumption, durability/longevity, torque, bio-diesel etc.) and just because I like them. I had two Isuzu P'up diesels, and Isuzu Trooper turbo-diesel, two GM 6.2 diesels, and I now own 2 Duramaxes. But sometimes I don't need to take the 12,000 pound horse trailer with me.

Why a manual transmission? Because they don't break as often. I've broken several 700R4's, a couple 4L60E's, and I've even managed to break the 'bulletproof' Allison. I haven't ever managed to break a manual. Smoke the clutch, maybe, but that's a pretty cheap fix compared to tearing into a 'black magic' automatic trans. There's also the small matter of the POS auto that was the only option in the otherwise impressive Jeep Liberty CRD.

Would I really buy one? Well, I bought a Liberty CRD. But I don't think I'll buy another small vehicle with an automatic, and after my experience with the Liberty CRD (38 business days in the shop in the first year of ownership), I'm not enthusiastic about any Chrysler products. I've had good luck with GM's. If you can make a 6.6 Duramax V-8 pass 2007 emissions, you should be able to make a 3.3 litre 4 cylinder Duramax do the same.

So how about a 4 cylinder, 30mpg highway version of the Duramax in an H3 or even better, an H4?

Please?

Posted by: Dan Taylor on September 5, 2006 4:45 AM

Mr. Lutz,
Want to talk quality?

Here's a list of GM's recent "quality": Engines that knock ("no problem" GM says), wheel bearings that fail in 5000 miles, gaskets that leak coolant into the oil, plastic intake manifolds that warp, truck frames that are too flexible, brakes pads that wear out in 20k miles, etc. And all that on simple, old techology! Wait till we see the Hybrid-Hydrogen disasters!

What does the dealer say to the customer?
"They all do that..."
"It's within specs..."
"No problem found..."

What does GM say about it?
"Wait until the new models..."
"Quality differences among automakers are almost negligible,"

Ha! You're fooling nobody, Mr. 36/36 worthless warranty.

Dowdy products. Poor subjective driving feel. Clueless management.

Posted by: Kevin on September 5, 2006 7:33 AM

There are several comments about longer warranties on this blog. Why?

Seems to me that if the level of quality is where it should be a longer warranty isn't necessary, but maybe I'm missing something here.

Posted by: CF on September 5, 2006 9:58 AM

How does this sound, Bob:

I'll be looking to buy a small commuter car in a couple years, after I get tired of zipping around town getting 90mpg on my scooter.

If GM can make a four-door hatchback that gets over 50mpg combined mileage with a 100,000 mile warranty for under $12,000, I'll buy a brand new GM car instead of a used VW or Toyota.

Deal?

Posted by: Paul on September 5, 2006 10:43 AM

Mr. Lutz,
I am not a GM customer but want to be. I need something that compares to a BMW 3 series convertible, but is American. I want something a step up from Pontiac, but not as flashy as Caddy. Buick is premium near luxury so I am waiting for the Velite. Don't suggest Saab...been there done that and have thousands of dollars in repair bills to prove it! America needs a Buick convertible!

Posted by: jg on September 5, 2006 10:58 AM

I just took a look at the Aura. The car looks great; however, I think the fake wood in the XE looks overly fake...worse than the fake wood in my '03 Envoy SLT. The XR interior looked great since it did not have the fake wood. The other issue that bothered me was the armrest on the door...looked kind of cheezy. I am a huge GM fan...own a Chevy and a GMC; however, moving Saturn upscale, it should at least have non-fake looking wood trim. BTW, The trim in the Yukon looked great.

Posted by: gabe on September 5, 2006 11:13 AM

Seems to me that if the level of quality is where it should be a longer warranty isn't necessary, but maybe I'm missing something here.

I'm not going to buy a vehicle unless it's got at least a 100,000 mile warranty, no matter how good the overall quality is. I might get a car that needs more repairs, and I'd like to buy it from a company that will stand behind their assertions of quality.

My neigbor recently bought a new car, and he didn't even look at GM cars, even though his dad owns a GM dealership. He's a twenty-something city dweller with a baby on the way, and didn't think any GM car fit his needs for quality, space, ease of parking, and fun. Instead, he bought a Mazda3 5-door because of its CR rating. He's in the market for another car now, and will be getting a used VW GTI.

If you can't get the children of the people who own the dealerships to buy your cars, you've got a pretty big problem on your hands.

Posted by: Paul on September 5, 2006 11:19 AM

Dear Mr. Lutz

You're not going to get anywhere unless you beef up the quality and styling of your interiors. You need to hire tons more interior designers ASAP.

The Inpala is a nice car, but the interior is low rent. The family Accord looks better than that. Cut out the black plastic.

GM needs to discover something called the integrated radio.
This "insert here" stuff will not cut it. If you want to save money, make the innards standard, but integrate the radio.
If you made the nav screen interface standard, you'd save money and every car would look upscale.

The center stack must flow well and the interior lines must be clean. Use more high-quality materials like stainless steel etc. It's all in the details.

Lastly, as far as general quality goes, you need to find a way to compile an exhaustive list of mechanical flaws directly from the dealers and customers--early.
So the next time you re-engineer the car, it doesn't have the same mistakes/flaws.

5yr/50,000miles and out,

Jon

Posted by: Jon on September 5, 2006 11:34 AM

Mr, Lutz,
I am looking for a car that has the utility and room of an SUV, with better ride characteristics and fuel economy.

Nobody gives up a Suburban for a Yaris or Fit!

The Impala/Malibu come to mind. here are my likes and dislikes:

1. The Impala has the kind of space I'm talking about--but it is severely underplayed.
The Flip-and-Fold-Flat Rear Seat is a great start, but you have to take that idea and put it on steroids throughout he whole car (and advertise it too!).

The front passenger seat should be fold-flat or removable and the trunk should be even larger.

The trunk and doors should open wider, the glove box should be the largest thing on earth (deep and gas-hinged; a true monster)--as should the between-seat and in-door storage. My glovebox is too stuffed.

Seatback trays (with cupholders and adjustable tilt.) should be standard. Yes, Mr.Lutz, many people have their kids eat or write in the car.

2. Seating should be high--like the Ford 500; with cavernous footroom in the front and rear.

3. Connectivity is a key here. Standard Bluetooth and FIVE-seat Ipod storage/connectivity.
The Element has electrical outlets, and the Malibu/Impala should too.
Laptop storage is a must.

All I want it to not have to compromise on safety (AWD please), room and utility when I downsize. I will only look at a restyled Malibu and Impala (the current Ipmala looks regal and should be even more so) and I expect impeccable reliability, fuel economy, handling, power, quiet chassis and a UltraView sunroof.

Posted by: Ross on September 5, 2006 12:01 PM

I dont think that Bob is stupid enough to think that quality should be ignored ot focus on styling. I dont know why people come here to post the obvious, this forum is supposed to help generate new ideas that would help GM. coming here to talk about your personal quality problems with a 10 year old GM vehicle is pointless.

Longer warranties would be good and would covince a lot of import owners to take a chance with GM.

Please stop indicating that GM's qulaity is bad because CR doesnt recommend GN products. CR's results are not scientific because they wont sample randomly and thus their results to not line up with JD Power or other surveys that do believe in random samples. On top of that, CR won't recomment a vehicle unless they gave it a positive review AND it has good reliability ratings. Since CR doesn't rate any GM vehicles highly during the road tests those vehicles wont be recommended even if they have above average reliability. On top of that if you look at the difference between what CR deems great reliability and average you will see the difference is small. In other words, "great" Toyota products with red dots are only slightly better than "average" GM products that you people are trashing here.

Posted by: sheth on September 5, 2006 12:16 PM

You would sell more cars and trucks if you didn't take 4-5 years to engineer out design flaws. I could list them here but would take up too much space.

Posted by: joe on September 5, 2006 1:17 PM

While I do agree that GM needs to demonstrate their belief in the quality of their vehicles, by offering longer warranties. I would like to see some subtle improvements that would make a world of difference:

Paint quality has got to improve. There should be NO orange peel or other paint defects (ie: easy scratching) on any new GM vehicle, no matter what it's MSRP.

Better interior materials, especially for low end cars. While I have been known to rail on against Honda. One thing they do know how to do, is make a cheap interior look like it isn't cheap. Use of actual vynil on the doors, padded plastics on the dash, and passenger front airbag cover. Things of this nature that don't add much to the cost of the car, but make the difference between someone thinking the car is nice rather than thinking that it's cheap.

I'd also like to see the huge split grille on Pontiacs start to get smaller, and maybe take on different forms. That oversized grille has been a staple since it first appeared on the 1985 Grand Am, and after 20 plus years, I think it's time to give it a rest.

Posted by: Chris R on September 5, 2006 2:09 PM

Good Day Bob Lutz
GM Vice Chairman

As one of your sales people. My first question is; Have we interviewed our competitions buyers? It's easy enough for us to make asumptions regarding what we think will sell, and in fact we have an amazing product line. Shouldn't we be asking Dogde, Ford, Toyota, etc. owners why they bought their product?

Why they didn't choose a GM product?, and

What they would need to see from us in order for them to choose GM products?

What is their preception of our competition that makes them choose the competition over GM?

By knowing this I feel that we can better control our media, and thus increase our market share significantly.

R. Warren Harris

Posted by: R. Warren Harris on September 5, 2006 3:37 PM

I am very very pleased with my Saturn Vue AWD. This is my first GM car since I owned twin 1956 Chevy 210s w/ Corvette engines back in the 1960s.
One thing that really BUGS ME, my inability to make a monthly payment On-Line.
Seriously, I find it troubleing that GMAC is not utilizing this very basic application of technology.
I don't believe I have another monthly expense I pay this old-fashioned way.
On-line payments are good for the customer and GREAT for the company. Get with it!

Posted by: Jim Gunther on September 5, 2006 3:39 PM

I feel sorry for Lutz in that he has to read so much unrelated nonsense on this blog. Why are people here if they have no intentions of ever buying a GM car or think that GM is in a hopeless predicament? If you dont care about what GM is doing and think they are making terrible decision than you should buy a Toyota and stop posting here. Half of these posts are not helpful and are defeating the purpose of this blog. This is not a place to air out all your frustrations about GM over the last few decades.

Let's try and stick to real ideas that are based on more than personal preferences. It's silly to come here and tell Bob how particular models should be restyled to suit your tastes. Not everyone shares the same taste so some of the vehicles you guys are complaining about are attractive to others.

GM's interiors are improving, their powertrains are improving (too slowly at times) and several of their brands have reputations for excellent customer service. At this point its a matter of continuing the momentum and convincing people to give GM products another try. A 5 year warranty (or 4 year 50k mile) is a great way to generate more interest.

I am also hoping that the 6 speed will be in the Lucerne/DTS next year and tilt/telescope wheels will be on EVERY GM product very soon.

ps. Saturn Aura and new crossovers look very good.

Posted by: sheth [TypeKey Profile Page] on September 5, 2006 6:15 PM

There is so much subjective tripe on this blog it is amazing. Most of the people doing the complaining are not going to buy a GM car anyway and all they are doing is validating. I recently purchased a Buick Lacrosse and could not be more pleased. Better mileage, better price, and a better design than any Asian car out there in the mid-range market (Toyota included). With the nearly 1 million recalls Toyota has recently been saddled with, nobody is concerned with quality per se, they are concerned with what there neighbor will say. Bob, just keep doing what you are doing and eventually the truth will win out. As far as Consumer Reports is concerned, every auto journalist out there, and I mean every one of them, knows CR is full of crap. You can’t please everyone so don’t even try.

Posted by: dan on September 5, 2006 10:32 PM

The perception will not change until the company backs up their hype by increasing the warranty period. Lutz can talk all he wants but until they back it up, it's just TALK!!

Posted by: Alan on September 5, 2006 11:27 PM

Your interiors must be put on steroids immediately:

This is simply not acceptable in 2007 in the most competitive class in the auto industry. Being a GM fan means calling GM on this BS when they do this. The Aura was a nice drive, but the flimsy materials and lack of several important features (NAV, sunglasses holder, interior grab handles, rear center armrest) make it glaringly apparent that GM is still run by bean counters. How could they possibly greenlight this interior as-is? GM needs to EARN my business and earn back the business of people who left GM years ago because of the garbage they built. People who I know who would never step foot in a GM showroom might have considered the Aura because Saturn is kind of non-GM in a lot of people's eyes. But GM has to be as good or better. In terms of the Aura's interior, it is not, sadly.

Even a copy of the Opel interior would have been warranted.

I believed you when you said you'd take a hard look at interiors, but I'll tell you right now that you have a loooooong way to go. Even yout best (Escalade) is middling.

Remember: clean lines, top qualty materials and imagination.

And what's with the mould seams??????

We love you and have faith in you Mr. Lutz.

Posted by: Jason on September 6, 2006 12:05 AM

Bob,

I've been a GM owner all my life. I've never thought quality was poor on any of my vehicles. I've sat and rode in numerous foreign vehicles and never felt that I was in something better quality wise than my GM vehicles. I believe the right thing for GM to do is to increase the quality level, because that's what everyone wants and that's what the self proclaimed "experts" at
Consumer Reports, J.D.Powers, Motor Trend, etc. talk about the most. I think that the "experts" are way too nit-picky.

I agree with the comment that GM needs to invite people to test drive your vehicles. Go to every corner of the country and get people from every walk of life to test your cars and trucks. Let them drive an 07 Sliverado, a Lucerne, a G6, an Impala for a day or two and see what they think. If you have to offer $2000 toward the purchase of a new GM vehicle, do it. Get people who are currently driving a car or truck from a competitor, especially a foreign vehicle. See what you come up with!

Posted by: Jim Morgan on September 6, 2006 10:56 AM

In response to sheth, 9/5/06, 6:15 PM, I would say thet GM is extremely lucky to have enough people left who care enough about the future and survival of the corporation to go to the work of sending these posts.

I agree that styling is very important. My neighbor just bought a Solstice, which is a very attrative car, and should be a good seller in its niche. Note that styling is an issue in the success of the Prius, as even Honda has admitted.

Howerver, it is not the only thing which differentiates cars today. Fuel efficiency is NOT a wash, and is a huge and growing issue in consumer choice.

Please look up the article "Fuel-Efficiency Drives Toyota Gains", Los Angeles Times, 9/2/06, page C3. Note the second paragraph:

"The shift gave Toyota Motor Corp. its 15th straight month of year-over-year growth on the strength of small cars and utility vehicles, including gasoline-electric hybrids, industry data released Friday showed."

The last paragraph reads:

"Still, bowing to the drift from trucks, GM said Friday it would cut North American production 12% in the fourth quarter."

Note also the excellent mileage comparison posted under "Introducing the 2007 Aveo Sedan", 8/16/06 by Benjamin Howard, 8/17/06, 3:20 PM.

"Give The People More of What They Want" indeed.

Our family owns th