Hitting the Road
By Bob Lutz
GM Vice Chairman
I’m on the road this week, stopping in Phoenix for a media preview of our new fullsize pickups, the Chevy Silverado and the GMC Sierra. Obviously, these are hugely important vehicles in our product portfolio, and we believe they are the most refined, powerful, capable and efficient pickups on the market. We know exactly what it takes to win in this segment, and we intend to deliver.
But it’s not going to stop there.
Our new cars and trucks continue to be the centerpiece of GM’s turnaround plan, a turnaround that is really taking hold. Our newest models continue to sell nicely, including the new fullsize SUVs; we now have more than a 70 percent share of that segment. The large utility segment actually grew 6 percent in September, largely driven by sales of our Chevy Tahoe and Suburban and GMC Yukon and Yukon XL.
Other September highlights include a 45-percent growth spurt at Saab, driven by sales of the 9-3 and the 9-7X, and Cadillac sales that climbed by 22 percent. Hummer H3 sales were up 19 percent, helping the brand to enjoy a 10 percent retail hike versus a year ago.
And we will continue to be aggressive with our product assault, with frequent and wide-ranging launches. We’ll be in the traditional segments… we’ll be in emerging segments… high-volume, niche-market… you name it — we’ll be there.
Soon we’ll be launching vehicles like the Saturn Outlook and GMC Acadia, to be followed by the Buick Enclave. Then we’ll have the heavy-duty pickups and our fullsize SUV hybrid models next year. And our passenger car lineup will include an all-new Chevy Malibu and Cadillac CTS, which we’ll unveil in early 2007, and I personally can’t wait to get them out there, because they are really going to turn some heads with their styling.
And we’ll have a lot more to come after that, as well. Our work is far from done.
But to tell you the truth, it’s not just that we’re doing a lot of new cars and trucks… it’s the way we’re doing them!
Our new product development organization is more nimble, more efficient and more creative than it’s ever been before. In short, we expect a faster global portfolio turnover with less cost, allowing us to maximize profit on a global basis. And we expect a reduction in our architecture count over time of 50 percent as we introduce more converged architectures replacing the regional architectures we have today.
The lessons we learned in the development of our new pickups, for example, and the efficiencies we gained, are indicative of the success of our new product development structure, and that’s what we’ll carry forward and apply to future programs. And by the way, the entire program was moved forward 13 weeks, which is a Herculean task in itself.
We are making great progress in truly leveraging our global engineering resources, and we’re just going to get better at it. That’s one of the chief benefits of our streamline global product development organization.
That’s what I continue to tell the naysayers who claim we don’t have the product to compete with the imports, and that’s what I’ll say here. Our product lineup will take a backseat to no one.
- Posted in Bob Lutz
getalifeagain
This is great news. With gasoline prices down, GM will start to see more of its market share increase slightly or at least hold. The competititon is fierce! And you know better than anyone that super high reliability takes precedence in today’s market.
shannon mullen
Who writes this? How could a Chairman with the workload you must have, have time to write such a lengthy, detailed, stats all over the place, not a word out of place, perfectly edited piece?
pls just tell the truth. the content remains impressive no matter who wrote it
Chaz Smith
All good news. Keep up the good work, Bob. I’m looking forward to a Pontiac revival led by a new Firebird, and hopefully, Pontiac will retain some supercharged V6 engine. I just wish GM could accomplish its turnaround without sending yet more jobs to Canada and Mexico. It’s encouraging to hear that GM will be present in all segments. The neglect of this precept has been disastrous to GM. However, it would seem that GM expects its coming crossovers to cover several segments that it has all but given up on: vans, minivans, medium-size SUVs, small trucks. I’d encourage GM not to give up on these segments, simply because they are in decline- momentarily. As you know more than anyone else, if GM does not offer a model in a particular segment and it becomes the latest trend, it takes a very long time to develop a competent vehicle. As the world’s #1 car maker GM needs to have a strong presence in the small truck, mid-size SUV and minavan segments.
Regards,
C.S.
- 2006 Pontiac Grand Prix GT
teidsmore
You say, “We’ll be in the traditional segments… we’ll be in emerging segments… high-volume, niche-market… you name it – we’ll be there.” This sounds terrific but I’m still worried about how seriously GM is taking us luxury buyers. 12 out of 20 houses on my street have either an S-class Mercedes like myself or a 7-series BMW in their garage. I go and look at the new Cadillacs every other year when I go car shopping and still nothing has changed. They offer the STS which is the size of a S-Class but has about half of the interior and trunk space and DTS which is bigger yet only has 3/4 of the interior and trunk space and both still have rental car interiors and boring Chevrolet style features. We and many of my friends and neighbors have been optimistic that GM will come through and do the most patriotic thing possible, even more patriotic than building a terrific new truck, and that is build us a real world class full size luxury car that Americans can be proud of. I just put down my latest issue of Autoweek and in an interview you were asked if GM would ever get a super-luxury car. You replied, “It’s still a wonderful dream, like the Cadillac Sixteen, but frankly, given the reality of fuel prices, I would say that the priorities have shifted somewhat.” I hope Autoweeks definition of super-luxury is the same as yours, (Maybach and Rolls-Royce) because if it isn’t and they were asking you when GM would get a S-class competitor this reply sadens and scares me. As you know the luxury market is growing everyday and will continue to including full size TRUE luxury cars regardless of the “reality of fuel prices”, I have numerous friends who’s kids ranging from 17 to 30 years old are working harder than ever so that they can buy a Mercedes or BMW for themselves and this is all because these kids see S500s and 750Li’s parked in front of the most tasteful homes and the nicest buildings and the best restaurants and driven by successful leaders. In our country affluent individuals drive these vehicles because they are spacious, smooth, advanced, and because we have the space to own such a vehicle. Our roads, parking lots, and garages accomodate them. Gas prices will not send us into smaller cars it will only send us to the manufacturer who provides the most effecient one and it will always be this way. Why is GM letting everyone with over $80,000 to spend on car pass them by when they own the second oldest luxury brand in the world!? How much longer do we all have to wait for a REAL world class American luxury car!?
John
Bob,
Great job and excited about new products. Please make the next Monte Carlo a beautiful luxury coupe. I like the Camaro but want more luxury. A cool Impala wagon would be great. You and Rick are true car guys.
Joe Gakenheimer
I am very interested about how the Malibu turns out. I see so many excellent GM vehicles, but feel the Malibu has been quality product though not necessarily a benchmark. I hope the new Malibu is the benchmark of the industry. I have a feeling it will be that good.
Chris Becker
Bob, I have had an ‘06 GTO for over a month now, and I have put over 2,000 miles on it. I just can’t seem to get myself out of the driver seat, and that’s a good thing. I just wanted to thank you for doing all you did to make it possible for me to get that car here in the US.
When the GTO first came to the US, many journalists said that it had the best interior of any GM product we had ever had here. I can now say that that is no longer the case, and that is a good thing. The product that has really caught my eye is the Aura. The inside looks like it ought to be in a more expensive car. I honestly find it hard to believe that a saturn product is “wowing” me, and it’s even more impressive that the Sky has the same effect. My point is that you guys have done a great job, and I can’t wait to see what you have in store.
The Aura might be the product that gets my mom out of her Audi and back into a GM. Now granted, they aren’t in the same class really, but if it’s nice and she can save $10k why not? I guess it just goes to show how impressed I am with the car that I’d even think that way.
While you’re in Phoenix, if you see somebody in a blue GTO with a big stupid grin on his face, that’d be me. Enjoy your time in Phoenix; you picked a great week to be here.
Paul
“That’s what I continue to tell the naysayers who claim we don’t have the product to compete with the imports, and that’s what I’ll say here. Our product lineup will take a backseat to no one.” - Bob
So you’ll be releasing a car that will get over 60 mpg in the city, thus taking the lead from Toyota in the fuel economy race?
Because if you take a look at the EPA’s 2007MY fuel economy ratings, there is no GM car in the top ten.
onell annz
Mr. Lutz, no doubt your new products like the Outlook, Enclave, Acadia, CTS, and Malibu will bring more buyers to GM dealership. And I can see that GM’s turnaround program is gaining momentum and I do hope that it can be sustained. IMHO, one way to sustain your program is to improve the performance and efficiency of your V6 & I6 (2.8L, 3.0L, 3.2L, 3.6L & 4.2L) OHC engines, and these engines can be tuned for certain application with less cost like what is being done by Honda, Nissan and Toyota in their 3.5L OHC. Instead of putting money for R&D of 6-cylinder OHV & 5-cylinder I5 OHC, why not focus on improving those OHC engines mentioned above. Also, the fuel savings of the V6 OHV with AFM is not so significant!
gacSTclass
OK, this is a bit off topic, but why isn’t GM Fastlane tooting its horn on these things:
The 2007 Chevy Colorado pickup gets 20/26 EPA for a 4-cyl. crew cab. That’s 3 more miles per gallon, AND more horsepower than 2006!
The Solstice takes top wins in the SCCA Solo National AND Showroom Stock B classes, pummeling the Miatas and BMWs into submission!
The Cobalt wins and takes podium in several motorsports including NHRA and Grand Am Cup.
Seems like GM is hesitant to say much about its 4 cylinder prowess? All I hear about it seems are V8s and Crossovers…
Sundown
Hi Bob:
Good post. I do have a question though. In many of the Buick TV ads I notice that they usually end the commercial with either a lease offer or showing the MSRP. Most of the imports never seem to mention price in their ads (Lexus for example).
Always showing the price does not allow the product (Lucerne) to stand on its own merits. The ads seem to be sending the wrong message. BMW, Lexus, MB, etc. seem to let the product stand on its own and entice consumers into researching more to find out the price. I love the Lucerne but their commercials constantly showing the price/offers seem to portray it more as a “bargain” brand.
Please share your thoughts.
Craig
Bob, you are such a breath of fresh air. I real straight shooter. I have all the faith in you and Rick. Can’t wait to see the new Silverado, Malibu and Camaro in person. One more thing, Please don’t ever retire from GM!
Scott
It’ll be nice to see cars that people actually WANT to buy rather than those that they CONVINCE themselves to buy due to the great incentives. The Solstice/Sky and Aura are great examples, along with the Corvette of course. It’ll be nice to see that in additional mainstream vehicles like the new Malibu and CTS.
Unfortunately I still haven’t seen any proof that what I’ve been waiting for is coming: an affordable RWD mid-sized sedan with an optional V8 ($50k sticker excludes the CTS-V).
Hopfully the rumored Commodore import as a Pontiac will come to fruition without being overpriced like the GTO.
Jack Tuttle
Bob,
No one ever said that GM doesn’t have the product to compete. You just don’t compete well. GM’s focus has been cost cost cost and your product shows it all too well. When you can truthfully and honestly say that the next generation CTS truly competes in performance, quality, comfort, style, and fit and finish with an Audi A6, BMW 5 series or Infinity G35, then maybe you’ll have something that will help your sales. You can’t continue to focus on cheap and charge top dollar. Look at your sales - it doesn’t work.
sheth
Sounds good, I think most people are anxious to see the much anticipated Malibu and CTS. People don’t want to believe that things arent business as usual at GM but I think that it will be hard to support that notion in a few years. I have no qualms with your styling direction or overall brand strategy. I would just ask that you take care of some small details that will make a huge difference in how your vehicles are perceived by the press.
Please try to address the following things (and other similar issues):
-Give ALL your midsize cars 8 way seats like the Aura and Impala. This should be easy to do and it would prevent magazines from knocking you on that.
-Give the epsilon cars rear armrests. This is a stupid omission and EVERY review of the Aura mentions this
-Offer more Nav systems on your non luxury cars
-Offer HIDs on some non-Cadillac models.
-PLEASE add telescoping steering wheels to the Delta, G and W platforms as well as the GMT900 SUVs. I cannot understand why you refuse to do this and get slammed by the media repeatedly. If you are going to upgrade materials and fit/finish it makes no sense not to spend a few dollars to add a telescoping wheel. This is a no brainer.
-Get rid of the hard plastic armrests in the Aura. Again, this is costing the Aura big time in many reviews and is the only chink in its armor right now.
I cannot stand Toyota or the nonstop adoration for Toyota that I am subjected to by the media. It is imperitive that you do whatever it takes to keep them at bay and maintain your position in the US market, Except for the Fusion and Edge there isnt much else to look forward to from the rest of the Big 3. Its all up to GM to prove that the US automakers can compete.
ThriftyTechie
Sounds good.
I’m impressed especially by the Cadillac-like revamp of the Saturn line-up.
Outlook and Aura look good and I hear a new Vue is coming soon.
Where is the revamp of the aging ION though?
Mr Tripower
Mr Lutz:
I am pleased to hear that GM is going to be introducing some great new models in the near future. Many say that GM desperately needs new models to replace aging platforms like the Impala, Grand Prix & Monte Carlo. A relative of mine is definitely going to purchase a new Silverado. The problem is this: there is little information on the GM Canada website and the local dealer knows less. He can’t even tell us when they will be taking orders for the new trucks. How can GM sell product when the dealer can not answer a simple question like that? As for me, I am awaiting news on the next generation Pontiac GTO. The enthusiast magazines and websites are reporting that there will be one in the near future. You stated to reporters at last years Geneva show that this car was in the works. Therefore I anxiously await news from this years shows in LA & Detroit. Please let this car do justice to the GTO nameplate. Make this car all it needs to be and something an owner can be proud of. Knockout styling, excellent interior and an engine befitting the name. It is probably too late now, but if your people dont understand what a GTO is and what the nameplate means to people, please get them to call the GTOAA or Mr Wangers (YOU should know who he is). The marketing for the 04 to 06 GTO was a mess. Mr Wangers could definitely give you some ideas on how to market the car and the advertising. Perhaps you could use “Tiger” imagery - that might work! It did before. Anyway, good luck with the new models.
Benjamin Howard
I have to big complains about the new pickup.
#1: No factory spray in bed liner. All of GM’s trucks should come with spray in bed liners standard. One of the big selling points the Tacoma has over the Colorado and Canyon is the bed liner. Having factory bed liners would do way more for truck sale then the cargo management system. I can not stress importance of this enough and this is something you can fix now.
#2: Why is GM using drum brakes on back of the new pickups? The current F150 comes standard with 4-wheel disc brakes.
Corto
Certainly can’t blame you for being so optimist but when I look closely at your new products (inside, outside and underneath), I see better GM products but certainly not the best products out there. You made a great impression with the Solstice and the Sky but you forgot to give them a trunk. The boring dash of the good looking Lucerne is but one other example. The vulnerable position of the anti-pollution module underneath the Cobalt is another, as are the unprotected ABS captors. You see, I live in Qu√©bec, where the roads and the weather are tough on a car (both are linked to some degree but not entirely, as one notices when crossing to Vermont where highways magically turn into billiard mats). This takes me to your Swedish connection. Maybe not the most reliable cars in the world, (I know firsthand, I’m on my third Saab) but they are the only cars in your portfolio which attract me because of their inherent qualities. So please monsieur Lutz, make sure the next 9-5 is still a Saab, i.e. is amongst the safest in the world, very comfortable, practical, has oodles of torque while being frugal on gas. Personally I wish Saab became your launch pad for green cars (reel ones, not the sorry excuse for a hybrid found in the Saturn Vue). The 9-3 hybrid vert prototype is interesting in that respect. How about a turbo diesel hybrid Saab ! and soon! Anyway keep up the good work cause it’s obvious you guys are trying. Make me proud with the next 9-5, proud enough for me to purchase another one (and the bar is very high when you look at other offerings in Saab’s flagship segment). Hopefully you will have put back the typical Saab speedometer, marine band radio, safety triangle in the trunk, kept the window switches where they don’t get wet if the window is left open etc. etc…
And by the way, you were right on with your distinctively unpoliticaly correct comment on gas prices. Love it !
Tom
Great to see all the new products and the new organization so that the new product development success will continue.
The future of GM (and any other automaker) will depend on the product and product/brand management - it’s always been this way.
By the way, you need to hit a grand slam with the new Malibu. Like it or not, people’s perceptions about an automaker are mostly based on passenger cars. When people think of Toyota, they think of the Accord, not the Sequoia.
Rick Lupori
Mr. Lutz: You have done a magnificent job of leading GM product back from bland to desirable and I can tell you from first hand experience that more Southern Californians have actually put GM models on their “Shopping list” of vehicles. This is something that just DID NOT HAPPEN just three years ago, many friends ask my advice when looking for a new vehicle and I have always tried to recommend a GM product. Years ago it was hard to do and even if there was a GM product to offer the look on my friend’s faces told me that they were never even going to look it, but now they are going to a GM dealer and test driving GM products, even die hard Toyota fans who have become weary of falling quality and high repair bills.
The problem is I keep hearing the same excuse “I did not see anything I liked”. Unfortunately most of these buyers ended up in foreign makes.
I have no doubt that the new Malibu will be as impressive as the Acadia and Enclave but will it be competitive on a content level with the Accord and Camry. As I have posted before GM needs a MAJOR PHILOSOPHY CHANGE in content - GM cannot outsell cars that are not the market equal to in content even if the gap on style has been.
Recently I reviewed what the new Camry offers trim level by trim level and compared it to the current Malibu and Impala and found that their content does not measure up. It is close but if the Impala is going to go from the 4th best selling car to first changes must be made.
I know that the Impala or the new Malibu could be the best selling car in the country by 2010 if GM will do their homework and match equipment option content with the Accord and Camry. I worry more about the new Accord than the Camry - recent Camry sales are softer than they should be for an all new model. However if the new Accord is styled anything like the Fuel Cell car Honda recently displayed they are going to take a lot of sales from Nissan and Toyota.
As a Marine you understand the philosophy of pulling back, taking a stand then taking the fight to the enemy and as I mentioned you have done a great job at the first two. You made enough changes of what you had to work with to manage a consolidation and the new vehicles you mentioned will steady GM sales. It is time to get serious and make all of the right moves in order to advance at maximum speed with the largest gains.
To accomplish this every detail must be executed perfectly with nothing overlooked or compromised; GM must surprise and delight potential customers with the “Must Have” vehicles you talk about so often.
GM can gain market share in California if it changes the way it options vehicles and distributes them to dealers. I know that I can increase dealer sales by 10% and maintain a #1 rating in CSI and SSI. Having moved from the northeast to California over 20 years ago has taught me the differences between these markets and defined for me just what California buyers really want. Drop me an E-mail if you are interested in some details.
GM must make a goal of having the best selling car on the U.S. market and 5 of the top 10 in both car and truck sales. You have put the right product in the pipeline you just need to make sure the right options are offered on the right vehicles in the right colors. Now that you have buyers considering GM products it is all about the details when your vehicle is one of the last two buyers decide between.
It is time to change all of the “I did not see anything I liked” quotes into “They had just what I was looking for”.
Patrick
I am encouraged by your post, Bob, and I truly hope you’re right. Getting GM’s skeptics to give your new products a try is absolutely critical to reversing your market-share slide. And since it takes time for perception to catch up to reality, it won’t happen overnight. That said, from what I’ve seen the new products such as the Lucerne and the Aura are excellent and equal to their class leaders. I’m looking forward to my next GM vehicle and I hope that more and more import owners will be joining me as they realize that GM is putting out top-notch products.
John Wellauer
Bob~
Just a couple of things to say. Great work on the trucks and SUVs,and the “go for it” on the Camaro is really wonderful news! Now all of us Pontiac lovers are wondering, when is the new GTO to be unveilded?
Sam Houston
More in house cheerleading.
How did your products fare in the big picture of the American auto market? You have impressive gain figures listed, but how are the trucks doing against the new Fords, Toyotas, Nissans, and Dodges?
At least you aren’t trying to cram Nascar down our throats like the other half of this blog page.
You write that you are on the road. Do you mean that literally? Are you driving your products across the country?
On a positive note, The latest trucks I have seen from GM are the best looking full sized trucks on the market. But looks won’t make all the sales since trucks are primarily chosen for their utility properties.
I see a lot of misleading advertisement from some of your competition. For instance, Nissan advertises that its Titan has the most powerful base model V8 in its class. Be that as it may, they don’t mention that it is the ONLY V8 they have available. I think there is plenty of advertising opportunity that is not being taken advantage of. Such as wherever Infiniti ads finish with “The M” you should have an ad directly opposite with the bottom line “Us.” Use it to finish the sentence “Favorite trucks in the US” or some such tag line. But highlight US. It will present your vehicles as the good guy, we’re on your side. THEY are not. Sneaky but effective.
Feel free to pay me for all these good ideas, you have my email address, you know how to contact me.
Andy Ross
Bob,
You didn’t mention the new Holden’s,they look really cool.All G.M.needs is a some new products to expand Buick and Pontiac,then General Motors will be unbeatable-GO G.M.
WHlanteigne
I’m pleased that the sales figures have increased,I’m a bit disappointed that the overall focus still seems to be on less-efficient trucks and SUVs. Gasoline prices have dropped tremendously in the past month, and I’m sure this has something to do with recovering sales. I do hope you have some more efficient designs in the pipeline, because with global tension again on the rise, I’m sure we haven’t seen the last of the $3/gallon gas.
indi500fan
All the new stuff looks GREAT.
Finally the styling boys and girls have been turned loose to do their jobs. Keep it coming. The Aura and Outlook are particularly nice. I’ve been buying Saturns since 1995 and found them to be reliable and economical with a very helpful dealer network. Now the styling will make them a competitor to ANYTHING out there.
Mr. Langlitz (Germany)
Dear Mr. Lutz,
the continuous improvements all over the GM-Portfolio also become evident, when I look at the latest Opel-Vehicles. The new Corsa seems to be a winner, even before it really hit the road. For many people over here the Astra represents the benchmark of its class and, by the way, I am sure US-Customers will appreciate it, when this model will enter the Saturn-Showrooms in 2007.
But how about this: In my opinion the Signum, as Opel’s superior vehicle, is still too similar to the Vectra. For that reason I think, the (obviously slow-selling) Signum should be replaced by the Saturn Aura or new Holden Commodore (Chevy Lumina in the Middle East), at least as long as Opel can’t provide an own new flagship for any reason. Thanks for paying attention.
Mike Budig
Hi Bob,
I just spent 2 weeks in Europe. Opel vehicles are great, I think they will do real well here as Saturn’s. I love my Saab 9-3. I may replace it, I recently drove BMW 3, Lexus I 25, Audi A 4, and Mercedes C class. The Saab seems to be the best formula, I will probably buy again, only down side is the dash materials and possibly the front drive lay out. Add simple AWD system and nicer dash/interior materials and that car would be best in class. Mine is an 04 Aero, great mileage, 35 highway and very fun to drive. Keep the Turbo.
Good Luck
Mike
Mr. Langlitz (Germany)
Paul, 60 mpg is about the same like 3.9 litres per 100 kilometers, as we calculate in Europe. I don’t know any single car over here, providing such a mileage, not even a Smart ForTwo does it. Should we all drive such pocket lamps on wheels? For bigger cars, as needed for families, such a mileage remains totally unrealistic. It might be only real at Toyota’s brochures.
Paul
“Getting GM’s skeptics to give your new products a try is absolutely critical to reversing your market-share slide. And since it takes time for perception to catch up to reality, it won’t happen overnight.” - Patrick
I’m a skeptic, and I keep a very close eye on GM’s models. The only one that caught my eye that’s available in the US was the Aveo. And then I saw it’s abysmal (for its size) fuel economy numbers.
Paul
Mr. Langlitz
The EPA has rated the Prius at 60mpg in the city. It’s a midsize car that can easily carry a family like mine, with three people over six feet tall.
I want to hear a GM employee or supporter not make excuses about why they can’t compete with Honda or Toyota on fuel economy in their passenger cars and actually do something.
Dean
Mr. Lutz,
I’m looking forward to the new product. The Acadia or Outlook is on the top of my list for our next family hauler when it’s time to replace our minivan next year.
Shortly after that, I’ll be replacing my commuter car. The new Malibu may be on the list if it’s as good as the previews say.
One comment on powertrains - please, don’t forget about those of us that would welcome a good mid-size car with a 4-cyliner and 5- or 6- speed transmission. My commute is mostly freeway driving, and I prefer driving a manual. I’m hoping that at some point I’ll be able to get a Malibu or Aura with the 2.4l Ecotec (maybe DI in the future?) and 5-speed. Toyota and Honda still offer this combination on the Accord and Camry, and I believe there are a significant number of customers out there that prefer this combination. Ford made a 4-cylinder/stick combination available on the Fusion, so there must be some demand for it.
As an alternative, a diesel/manual combination would be excellent as well.
We’ve made it past the current oil shock, but surely there are more to come.
Best of luck and thanks for all the hard work from everyone at GM.
Jerrod
“By the way, you need to hit a grand slam with the new Malibu. Like it or not, people’s perceptions about an automaker are mostly based on passenger cars. When people think of Toyota, they think of the Accord, not the Sequoia.
Posted by: Tom at October 18, 2006 10:18 PM”
I don’t think of Accord when I think Toyota.
Bob, I think you are doing a great job. Tom’s post just goes to show how totaly bland the asian offerings are in the mid size car segment. So much so that the casual observer can’t even tell them appart or determine who makes them.
Saab 9-3 Owner
Someone once told me that GM is like the pre-USSR Russian army, i.e., if you provoke the bear, it’s slower to react, but it will crush you…It looks like the “bear” has left the cave…
John Smith
Dear Mr. Lutz,
Saab should be your PC brand–at the forefront of safety (rivalling Volvo) and fuel economy/biofuels.
Swedish can sell in urban areas–especially Scandinavian style.
Saab needs to have “GM’s Prius”, a standalone model that doesn’t looks too weird, is bigger and gets better fuel economy (maybe with a turbo for proper power?).
Plug-in capability would be awesome!
It must be known all by itself for its acheivement, as many people put a premium on being able to make a statement to tohers about themselves.
Such a market is big on the coasts.
You guys had better be the first to make a car that goes from New York to Los Angeles on one tank of gas, because I assure you Toyota is aiming to get there first.
And when they do, it’s going to be all over for you.
Keep up the great work!
Mr. Langlitz (Germany)
Paul, well it might be true in the city, but I have some doubt, that it gets 60 mpg COMBINED. Why is there such a small number of Prius on our roads in Europe, despite we have to pay the double price for gasoline in comparison to the USA?
Paul
Why is there such a small number of Prius on our roads in Europe, despite we have to pay the double price for gasoline in comparison to the USA? - Mr. Langlitz
Because you have a better choice of fuel efficient cars in Europe from the VW Lupo to the smart car to the diesel Corsas and Astras that get almost 60mpg.
I don’t like any of GM’s current US offerings, but would snap up a diesel Corsa if it was brought to the US for a reasonable price.
GM has the technology to beat Toyota and Honda in the fuel economy race, but doesn’t bring any of it to the states.
John Smith
Dear Mr. Lutz,
In order to succeed, every GM brand needs its own identity–then it needs to use that identity to guide its marketing and product development.
It is unconscionable that the imports have the run of the youth performance and modification markets.
Pontiac, for example, should be in the middle of the tuner market, offering style and affordability.
Where is Pontiac’s answer to Scion?
Pontiac should be the home of both tuning/customizing and V8 muscle–and should bridge that gap effectively.
I look forward to the day when Pontiac is synonymous with tuning, racing (rallying and true stock car in particular) and traditional American muscle and non-bland family sedan options.
I also look forward to the day when (I’m really serious here) I can go into a Pontiac dealership and pick up a vehicle like the Volkswagen GX-3 concept–even if I have to build it like a kit car.
Pontiac would get an entire generation of car enthusiasts by offering limited-edition runs of Pontiac-developed kit cars in the vein of Caterham etc.
I also hope that when the next Opel Corsa comes over here to become a Saturn, you take aim at the Volkswagen GTI with a Pontiac model of it (with outrageous sheetmetal).
Pontiac should be the car of the X-Games generation.
Bob Lutz
Shannon-
First, I’m not a chairman, but only a vice chairman. Second, I love to write, teach, preach and convince! And it’s therapeutic for me to write the blog: lashing out at unfair articles, and battling obsolete conventional wisdom.
talonsaab
Bob, the Outlook, Acadia and Enclave look great. I believe they will be very succesfull.
The Saab 9-7x has been touted as a very nice handling SUV. This is because Saab tuned it to the max given its a Trailblazer underneath. I recently aggressively drove a 9-3 Aero and was impressed with its solid feel, steering and handling. Now why not harness that Saab know how to tune all GM products. If you build it they will come.
F451
Mr. Lutz,
This is one of your better threads, and there is nothing more Americana than “hitting the road.” Don’t get me wrong as I am not one of the zealots of nationalism, but I like this direction…hope to see more.
P.S. I have always liked Saab, and only hope that Saab retains its core soul, as that’s where it shines best.
sheth
Paul:
Designing a 60mpg car isnt the only sign of success in the auto market. If that is all you care about than by all means by a Prius and be done with it. You mention the Prius and the fact that GM doesn’t have vehicles in the top ten on the economy charts but dont mention that Toyota’s trucks and SUVs get terrible mileage. Why does the V6 FJ Cruiser get worse mileage than the Tahoe if Toyota is so “green”? Hybrid technology is great but let’s not forget Toyota has a lot of gas guzzlers in it’s lineup. You also don’t mention that overall Toyota’s full line MPG rating for CAFE is only about 3mpg better than GMs. That is hardly a huge advantage.
BTW, didn’t you get the memo that diesel cars aren’t too popular in the US? Where are Toyota’s diesels? They surely could use them in their inefficient trucks.
GM makes the most fuel efficient large trucks and SUVs, they just have to work on getting better mileage out of their sedans. The G6 and Malibu 4 cylinder models stack up well against the Camry and Accord 4s in terms of mileage though. With the exception of the hybrid models, GM’s economy is actually very close to Toyota’s in most cases so it’s disingenuous to act like Toyota’s gas-only offerings are far more frugal than GMs.
Bob:
Dont forget about my comments! Please get them to the right people and make us all happy. I would love to never have to read about the old GM 6 position adjustable steering column again.
BTW, edmunds just gave the Aura a lukewarm review. What a surprise.
motorman
benjamin howard the reason GM went to drum rear brakes on their pickups was because they had so much warranty repairs on the previous pickups that had rear disk brakes.
kurt
In all sincerity it is nice to see GM improving their products.
Unfortunately my current GM product, the ‘04 Malibu, is not one of those. Nor were both of my ‘03 Saturn Ions. I won’t bore you with details as your Majorguard and dealer if I keep the vehicle for much longer.
Should I believe your products are now really up to Toyota, Honda and others who have emphasized quality and dependability from day one?
Your continual focus on RWD, racing, and “new” do nothing to reinforce my confidence.
Show you mean it this time by following a primal rule of most Engineers; Underpromise, Overdeliver and be cost effective.
Len Kaufer
Mr. Lutz,
I read with fascination your latest post “Hitting the Road” but as a loyal GM truck buyer I want to again bring my concerns to you about the decision to not offer a manual transmission in any of your full-sized pickups. This decision has shown that GM is tilting farther than necessary to the luxury market while ignoring the customers who may be interested in luxurious appointments and good looks but still have a need to genuinely work their trucks.
I have been special ordering a new extended cab, 8-foot box, ¬æ ton, four-wheel-drive Chevrolet pickup every two years since 1996. I have ordered the highest level of trim that I could get each year with a manual transmission. Each time I ordered a truck the list of available option choices has diminished because I did not want an automatic transmission or computer controlled four-wheel-drive. Now, finally, you have stepped over the line and decided that I really didn’t want a manual transmission after all!
Maybe I could be considered “old fashioned” because I want to control the operation of my vehicle’s connection with the road as completely as possible but I am not the only customer that feels this way. The heavy duty pickup market has a definite “fringe group” that wants to shift for themselves. Witness the offerings by Dodge and Ford where a six-speed transmission is standard equipment on even higher trim models of their heavy duty models.
The truck market was also the last bastion for people who wanted to personalize their vehicles. The automotive marketplace has changed a lot from the days when everybody on the block gathered around to look at the new (Chevy, Ford, Plymouth) that one of the neighbors drove home from the dealer. Everybody had their allegiance toward one make or another but everybody wanted to see the latest model of any make and how it was optioned. The truck market was the last area where you could make decisions with the option list to design your own truck for the uses that suited you, the owner. Now, we are “progressing” to a couple of different LS or LT packages and a choice of what shade of gray it’s going to be painted!
Sure, it’s cheaper from a production standpoint, if everybody can only order package “A” or package “B”. That flies in the face of one of your previous comments of “giving the customer more of what he wants.”
There are also several of your statements in this posting that seem to contradict themselves:
1) “Our new cars and trucks continue to be the centerpiece of GM’s turnaround plan, a turnaround that is really taking hold. Our newest models continue to sell nicely, including the new fullsize SUVs; we now have more than a 70 percent share of that segment. The large utility segment actually grew 6 percent in September, largely driven by sales of our Chevy Tahoe and Suburban and GMC Yukon and Yukon XL.” (However, you are alienating 5 percent of your full sized truck buyers who will have to go elsewhere to buy a new truck with a manual transmission.)
2) “We’ll be in the traditional segments… we’ll be in emerging segments… high-volume, niche-market… you name it – we’ll be there.” (Name something that’s more traditional than a manual transmission!)
3) “Our product lineup will take a backseat to no one.” (Except Ford and Dodge who still offer a six-speed manual transmission in even their higher end heavy duty models.)
Mr. Lutz, you are probably the most highly visible “Car Guy” in the corporate automotive world right now. Of all people you understand why Corvette buyers wanted the manual transmission standard and the automatic as an option. You also understand the enthusiast’s desire to have as much control as possible over their driving. I also own two Corvettes, with manual transmissions of course, and my “enthusiast” quest for control carries over to my everyday work related driving.
The new trucks certainly are a step forward and a credit to your design people. However, I am very disappointed with this decision to omit the manual transmission and I hope you will examine the issue a little more seriously.
Len Kaufer
Helen
I like this car.Can you give me.
That is just a joke.
helendoupine
Great!
Ed Rafacz
I created an Intelligent Operation Manual for my Corvette when I became frustrated with finding Information from my paper manual. Not only does it function on my computer, but also on my PDA. A beta version can be found at http://safepic.com/corvette/pictureindex/interior/instrumentcluster.htm
I would like to explore the possibility of distributing my Intelligent Operation Manual to other Corvette enthusiasts. I believe this would help General Motors with its Image Leadership and improve customer acceptance of new technology.
Once again, thank you for taking the time for discussing this idea with me. I would appreciate any help you could give.
Sincerely,
Edward Rafacz
Member National Air Space Modernization Team
Air Line Pilot Association
getalifeagain
I was looking at the M-B on a research site and saw an ad for a Cadillac next to it. It was incongruous to the picture of the M-B. I was looking at pics of the M-B cars exterior and Cadillac was advertising a navigation system. Couldn’t Cadillac show off the sharp lines of the exterior of one of its cars instead?
getalifeagain
It seems everytime I read a positive report about GM’s current earnings, last years loss has to be mentioned in the same article….I think it is as though they’re saying that although GM is doing alright now, let’s not forget what they did and how it might be possible again in the near future. I think this is sheer bullsquash on the part of the business MSM and I think it is a clear bias!
Mr. Langlitz (Germany)
Hi Paul,
recently I met somebody owning an Opel Corsa Diesel. He told about a mileage of 47 mpg. I don’t know any comparable non-hybrid vehicle showing a significantly better fuel-efficiency. Once there was offered the so-called 3-Litres-Lupo by Volkswagen, but road-tests over here had demonstrated, that these 3 Litres per 100 kilometers (=78 mpg) finally couldn’t be reached at daily driving. By the way, this Lupo was phased-out after a relatively short time, since this small car was simply too expensive (because of ultra-light materials) and consequently the market didn’t respond. Maybe you might be interested in reading this: http://www.edmunds.com/insideline/do/Columns/articleId=116387
So, I do believe, GM is really far from doing nothing, regarding Hybrids.
Finally, in my opinion it’s inadequate to say, GM-vehicles in general are less fuel-efficient than those of the competitors. I am driving a 2001 Alero (2.4 / 4 cyl.) and I can assure, this car gets even a better mileage than some comparable European models. My brother in Florida, owning a Pontiac G6 (6-cyl.) doesn’t have anything to complain, either. BTW, since my Alero is running on LPG, it’s about the same inexpensive to fill up like an Opel Corsa Diesel.
Buick Diesel
Hello Bob! Always good to see you post here!
My parents bought a Buick Lucerne CXL V6 and really like it.
They could have gotten a better price on an ‘06 model, but went with an ‘07 just because of the increased powertrain warranty.
Jennifer
Bob,
I agree totally but I wish you would help get the word out to the youth market. Sites like the cars section of IGN (a big gaming/technology website) have nothing but Toyotas, Hondas and other Japanese makes. I read that since they are in California, those are the only cars they are offered to test drive.
Doesn’t GM have any interest in breaking the media lock that the Japanese have on California based sites like this?
Why not give the people at cars.ign.com some GM cars to test drive and review? I’m so tired of their excuses and all-Toyohonda bias!
I do love the “GM Tunersource” page you put up, but it needs more frequent updates.
Paul
“Designing a 60mpg car isnt the only sign of success in the auto market. If that is all you care about than by all means by a Prius and be done with it.” - sheth
I’m sorry. I was under the impression that GM wanted my business. I must have misread Bob’s intent when he said he’d make GM a market leader in niche markets, like folks looking for a high mpg car.
I guess all GM can do well are large, RWD V8 sedans and trucks and SUVs. And I’m never going to be in the market for either of those vehicles.
Bill Betts
Ed,
Regarding your Intelligent Operation Manual for Corvette — you can probably imagine how many ideas steadily flow our way from all over the world. We don’t want to pass up any good ideas or insult people like you who want to share their creativity with us, so we’ve opened a path for submissions. The GM New Ideas web site explains how to bring your idea to the attention of the appropriate folks at GM.
http://www.gmideas.com/index.jsp
Thanks for your interest.
Bill Betts, Web Services Manager
Paul
Mr. Langlitz
According to that link, GM is going to put the high-low hybrid into large SUVs. What about people who want a small car that’s also a hybrid? Why not put that into a Corsa, alongside a diesel engine, and create a vehicle that can get 70mpg using conventional materials?
Buddy Enbalz
Bob you wrote: “Cadillac CTS, which we’ll unveil in early 2007″
I hope it will not continue what I see as irritants on our 2006 CTS.
The hood release is below the parking brake release & feels just like it. We often “pop” the hood when trying to release the parking brake & have to exit the car & shut the hood.
CTS should have a hand activated parking brake.
If Cadillac retains the non Sports Sedan style foot parking brake, for our sakes, please move the hood release to under the steering wheel or to the left kick panel.
The fuel filler door should be controlled by an interior release button.
The trunk release button should be lockable.
The parking brake warning light is easily hidden by the steering wheel hub, unless the car happens to be parked with the wheel in straight ahead position.
No MP3 input for the radio.
Automatic dimming interior rear view mirror is ineffective.
Fuel tank should be larger. maybe 25 gallons?
Traction control is ineffective.
All CTS should have front suspension support beam like CTS-V.
Wiper actuator - GM’s design is delicate & is a memory test. GM should use rotating switch on the stalk, not movable stalk.
Cruise control actuator - same as in my 1977 Marquis & 1981 Seville. GM could do better. Most great auto co.’s can put the cruise controls into the steering wheel. Do you think GM could?
The half wood & half leather steering wheels look creepy. I prefer all leather & have it on our CTS.
The Nissan Maxima has a DIC panel similiar to the CTS, but it is bigger.
CTS only has 2 12VDC outlets. We need 4. Why is it so difficult to provide for customers’ needs?
Driving lamps - switch must go forward to turn on & go forward to turn off. Can’t tell by feel if lamps are off or on. Why not rotate switch forward for on & back for off? How hard is that?
The trunk is difficult to shut and there’s nothing to grasp but the exterior of the trunk which has a coating of dust and road grime. Even if the CTS was recently washed, the trunk lid quickly becomes dirty due to slipstream vortex.
The spark plugs are difficult to access & change. Engines should be designed for service.
DRL- what’s with the orange running lights & white parking lights? Is this back to 1955 when cars had white parking lights? It’s not cool.
Essentially, the CTS is so irritating for me to drive that I prefer not to drive it or ride in it. I usually get rid of cars that I feel this way about. I usually don’t buy another one of that Brand/Model. This is our 3rd new Cadillac. Last time, I said never again, but after 25 years, I decided to give GM one more chance.
So far, the CTS is running OK, but I’m not happy with the overall buying experience, the car’s readiness for delivery, or after the sale care(of which there hasn’t been any). If GM can make the 2008 CTS less irritating, I will consider selling the CTS we now own & buying one of the new CTS.
Adam Wadecki
Bob–
A couple of things:
MAKE THE MALIBU SEXY!!! I’m sick and tired of the for rental fleet only looks, ersatz wood trim, Ziploc-clad interior, and airplane-inspired interior fabrics. Honestly, who chooses these things?
Stop making Chevrolets with faces only a mother could love. The headlights are the size of police light bars, and the grille the size of chickpea. Proportion is the key to good design (as you, and the designers know), so put this axiom to work.
Instead of focusing on killer “halo” vehicles (we all know the Corvette, Solstice and Sky are great), focus on making a mainstream vehicle the benchmark for the industry. You tell me what’s more important: selling 20,000 vehicles/year or 200,000 vehicles/year.
And PLEASE ditch the 4-speed automatic. I know it’s uber reliable, but it’s just dragging down the all-important stats of the vehicle that Gen X & Y buyers compare.
By the way, I know that GM and Ford are trying to get out of the rental fleet market–but why?! Yes, it’s low margin, but rental fleets could be a great sales tool for your vehicles. Where else can you get someone who’s never driven a GM product to be forced to drive in it for an entire vacation–and perhaps emerge pleasantly surprised? Sure, if you supply Chevy Corsicas (eek, that car stunk, but hey, at least you jazzed it up with a hatchbank version ::laughs::), Cavaliers (amen it’s gone–at least its Cimarron sibling was a winner), Classics (not even going to touch that one) to rental companies, all you accomplish is depressing the resale value of the vehicle while impressing nobody–ok, well, maybe the guy who has an ‘86 Reliant as a daily driver.
Mr. Langlitz (Germany)
Paul, as I believe, small cars should remain affordable and I think hybrid-technology would significantly rise the costs of production. I think this would lead to a similar result like Volkswagen experienced with the 3-Litres-Lupo. It simply was too expensive. That was an unpleasant lesson for Volkswagen. But as you can read here the Saturn Aura, definitely no large SUV, is coming up as a Hybrid soon. http://www.hybridcar.com/news/in-the-news/general-motors-aura-hybrid-sedan-2007-2.html
WHlanteigne
“I guess all GM can do well are large, RWD V8 sedans and trucks and SUVs. And I’m never going to be in the market for either of those vehicles.”
As far as I’m aware, GM doesn’t make any full-size RWD sedans any more. If you want a American full-size, RWD, V8-powered sedan (like taxis and police cars) you’ll have to buy a Ford product. GM is the Truck/SUV company.
Bill Dudley
I’ve seen comments here about “catching” Toyota, or “12 out of 20 houses on my street have either an S-class Mercedes like myself or a 7-series BMW in their garage” from people on this blog.
It seems to me that soon car buyers will realize that they are part of the herd when buying a Toyota or even a upscale Mercedes or BMW. When it becomes so common that everyone that strives to have one gets one, it becomes uncool to keep buying those brands. Maybe it’s just me, but they just blend in now with everyone else, and why I drive a Saab. It’s cool not to follow the masses.
John
Bob,
Please don’t get rid of the Monte Carlo. I really think this would be a mistake for GM. The Monte Carlo has suffered from neglect in style not neglect in people who want two door cars. Camaro is a great car but there is also room for a Monte done right. Bob you are the man to do it. Make it beautiful. Also, GM being the great company it is needs to look at dealership curb appeal. Toyota has more updated looks at dealers. I know money is tight but it would not cost much to landscape, replace old signs and repave some old looking dealerships. This is especially true in Washington D.C. The lots are crammed and are not visually appealing. You have great cars don’t let the dealership turn people off before they get in the door.I know GM has its best days ahead.
Joe D, Cleveland
Bob,
I must also echo the comments from Len Kaufer i.e. manual transmissions. Not only are you alienating potential truck customers, you are also ignoring passenger car customer’s desires as well.
Today, a manual transmission is less of a thing for “economy” as it is a desire for enthusiasts. GM has has a long history of ignoring people (other than Camaro or Firebird/TA customers) who desire a stick shift, but still want the largest engine, leather seats, and a moonroof. Since you have said you want to be in all markets, I think you need to take a close, hard look at the competition that offers manual transmissions in configurations beyond cloth seats and AM radio delete….
Honda Accord (can be had with a 5 speed stick, leather, and moonroof on the 4 cylinder models, and of course the 6 speed stick on V6 models)
Audi A4 (stick shift available in all configurations, from 4 cylinder front wheel drive to V6 Quattro)
Lexus IS250 (six speed manual or six speed automatic, of course the car comes fully loaded - it’s a Lexus!)
Mercedes C-Class (6 speed stick on a Mercedes is back for the first time since the 1980’s)
Acura TSX and TL
And I’m sure I’m missing another car or two.
So, I ask, other than the Pontiac G6 and Cadillac CTS, what do you have to offer in a manual transmission that’s still luxurious?
The Aura should be.
The G6 GTP (with the 3.6 VVT) SHOULD be - not just the GT with the 3.9 pushrod.
The Monte Carlo SS should have been years ago, but since that’s a dying relic, we’ll ignore it.
And last but not least, the all new Malibu BETTER be. If you are going to go head to head with the Accord with the 2008 Malibu, you really ought to think about how to win import buyers back….. ah, yes - offer a true stick shift with even the top line fully loaded model.
But you won’t. I’d really like to know why. I’ll have the Camaro with a V8 and a six speed stick in my garage, but it will be sitting next to my daily driver - a Honda Accord V6 six speed stick.
You kept saying it’s all about product, product, product - SO GIVE US THE PRODUCT!
john
Dear Bob,
Jerry Flint says Cadillac’s in the slow lane:
http://www.thecarconnection.com/Auto_News/Commentary/Flint_Cadillac_in_the_Slow_Lane.S192.A10986.html
That can’t be true, can it?
An investment in Cadillac must be an investment in the entire company. You cannot skimp to win. You have to spend the money, Mr. Lutz!
Do not be afraid of Art and Science.
No risk, No reward, Simple.
Cadillacs can have something Lexuses (those derivative snoozers) can never have–distinctive style and pedigree.
Time to start innovating again!
No more “bargain” Cadillacs, Sir!
We want true, superior and stylish alternatives to the Germans.
Can you give us that?
I hope one day, to be able to buy a Cadillac Cien, with all the unapologetic styling and technology.
Paul
Mr. Langlitz
Thanks for the recommendation, but the Aura is still too large. The ideal GM car for me is the four-door Opel/Vauxhall Corsa with the 1.7L diesel engine. And it’s not available in the US and GM doesn’t have any plans to bring it to the US.
My next car, barring the introduction of a hybrid Honda Fit, will probably be a used VW Golf TDI.
Corto
Joe D wrote ¬´And I’m sure I’m missing another car or two.¬ª
As a matter of fact, you missed the Saab 9-5 and Saab 9-3, which are more in line with the other cars you quote than a Malibu.
Corto
John Smith wrote ¬´Saab should be your PC brand–at the forefront of safety (rivalling Volvo) and fuel economy/biofuels…Saab needs to have “GM’s Prius”, a standalone model that doesn’t looks too weird, is bigger and gets better fuel economy (maybe with a turbo for proper power, ¬ª
I couldn’t agree more. BTW make that a turbo diesel !
ChevroletRevived
You go Bob Lutz. The turnaround is based on product. Design & product is what’s driving GM’s turnaround. Thank you for telling it like it is. I’m very excited about the future of GM, and I will continue to spread the word and let it be known. I have a lot of ideas for GM’s future product line, and from what I’ve seen, the future product is A+.
Thomas
Mr. Lutz,
It’s fantastic that GM is being aggresive about new products. But I certainly hope that in the process you don’t blindly neglect/abandon unique segments that you’re already in. Crossovers are hot - I hear GM will be discontinuing the Malibu Maxx - Why? Give it all-wheel-drive and some of that new styling and I think you’ll have a winner to augment sales. - The car was already rated the most desirable in the midsize segment a year or so ago.
It’s silly to abandon segments like that which the Maxx is in. That’s why Ford is in the straits they’re in (neglecting/discontinuing the Taurus for example). I hate to see GM lose ground to folks like Mazda because they don’t want to spend the marketing money on a unique car like the Maxx.
Craig
Bob,
Good post. Keep up the good work! If I ask nicely, can I get a Chevy HHR with a 5-6 speed manual and a turbo motor like in the uplevel Solstice or Sky? I would really like one of these. Please? I’ll pay cash. Thank you in advance!
Mr. Langlitz (Germany)
Paul, it’s not true, GM has already plans, to bring the next generation Corsa to the States. There was a story about it at our newspaper. And what about the Astra, available in the USA next year? At about the same dimensions it’s roomier inside than a Golf (I’m 6.25 ft tall). I already had the occasion to compare.
If you’d like to buy a VW Golf, go for it. But I’d be careful. EVERYBODY I know over here, driving a Golf, does complain about it. It’s not even the engine, but numerous other malfunctions (mainly concerning comfort-features). I don’t really believe that’s pure fortuity. BTW, the Opel Omega (1996) of my father-in-law is also in much better shape than the New Beetle (2000) of my wife’s co-worker, despite there’s less mileage on it.
Caddyfan
Mr.Lutz,
I thought I would pass this along to you. I read it on a Cadillac forum.
Before I do, I just want to make sure to emphasize the importance of listening to your dealers (I am not one).
Many of the problems he points out, I see as well, as a non-dealer–mainly poor handling of information on the part of GM.
Simple information about your products is hard to come by and is inconsistent.
Your best attributes are often underplayed or ignored, and the rebate cycle begins all over again.
You have to learn how to co-opt your strengths to gain leverage in the marketplace.
A small example: If you go to the website for the big Lexus, you will see a mini-movie where they claim to be the first self-parking luxury vehicle.
Do you get it?
Non-luxury vehicles have been self-parking for years, but the ignorant would think, based on that statement, that Lexus is an innovator in Luxury.
They did the same with: dimpled underbodies and cabin air filters. They are masters of that. Yet GM advertisements tell you absolutely nothing about the car and what it stands for–only seeking to mention the size of the engine.
You need to shake up marketing, Sir. Get those MBAs out of the way, and get car people in there that know how to promote stuff.
So here goes:
http://www.cadillacforums.com/forums/open-letters-cadillac-corporate/88154-why-oh-gm-gods-why.html
—————
Hi there you V fanatics. Just traded my CTS-V a.k.a. wheel bouncing pain in the a** for my new XLR-V. I love the car. GM finally got the style right but I always have to ask myself why they cheap out on stupid areas. I manage a GM car dealership which is the only thing that keeps me loyal to their product. They never ask the dealer what would make their product more successful. Instead they insist on bringing out new product and then underpromoting and bastardising resale values. You cant even get a straight answer on what is in their vehicles when you look at their option specs. One says you get a certain option the next says you dont. for instance adaptive cruise control. now why would they take it out of the V? leather interior why cant they put real suede when they cheap out and put “sueded fabric instead…..oooooooohhhhhhh sueded fabric. The day I picked up my car it had a squeally fan belt on the supercharger. I can guarantee you that BMW or Mercedes would never ever let a $100,000 vehicle leave the factory that way. I am all pro american product. It is my bread and butter and GM has taken great strides on product reliability and fit and finish. But get rid of those hard plastics, go the extra mile on quality control, and “ask” the dealers what they feel would enhance their product for durability and sales. No body wants a rattle in their $100,000 vehicles speaker a day after buying one. This is what keeps GM from dominating the high end market. I understand that time is money but take the time before you sell it instead of the time in the shop after the vehicle is sold. I have vented…. thanks for listening. I hope GM doesn’t dissappoint me again like they did with my CTS-V or next time regardless of me Managing a GM dealership I will park a BMW or Mercedes in the driveway
—————-
Work with your dealer, Mr. Lutz. It’s all about product, as you said, but you forgot the dealers and the customer.
You don’t have to be mediocre in this regard. Streamline your information process and consult your dealers on yoru image and your product!
They have great insight from the frontlines!
So there you go, Mr. Lutz.
You should have people spend more time on these enthusiast websites, so you get a feel of where you can improve your products as well as your marketing (GM’s perennial weak-spot).
I knew you’d read all this. I have faith in you!
noel park
We bought a 2006 Chevy 1/2 ton pickup for our business Friday. It replaces our 1977. That’s our bit for 2006.
I saw your truck TV commercials over the weekend stressing the great history of Chevy trucks. Outstanding! Too bad you can’t do it for your cars, which have every bit as wonderful a history, if not more so.
Please take careful note of all of the comments here about fuel economy. Our family would like to buy a new Chevy to replace our 1995 Impala SS. We love the SS, but we feel irresponsible using so much gas.
We are impatiently waiting for a Chevy which competes with the Fit/Versa/Yaris on mileage. We are not going to ditch our Impala for a 24 mpg city Cobalt, but we would for 30 mpg. How hard can that be?
As I said in my comment on the “automotive DNA” post above, you could parts bin it today using the European 1.4 Ecotec.
We have coaxed our 2000 S-10 shop truck up to about 27 mpg combined by simply taking out a little weight and using some simple aero tweaks.
Where is Jon Moss, now that we need him?
Paul
Mr. Langlitz
Will the Saturn Astra have a diesel engine in it? Will the five-door model make it over here? Will it be priced comparably to a Golf TDI? What kind of incentives will GM use for it?
I am very curious about this car, and will test drive one once it gets over here in 2007, though I’m probably not going to buy one until 2009, and probably used. (I don’t like buying new cars. Depreciation is too great in the first two years of ownership for it to be worth it.)
john
Mr. Lutz!
Your customers are important!
I hate to scour the web and see complaints about things on forums that GM doesn’t seem to be doing anything about.
These come from the Corvette forums. Do not be arrogant about your cars. They may sell well, but it’s the dealer service that keeps the customers, and gets their family and friends coming back for more:
—————————-
from:
GB_Z06 in Jacksonville, FL @Corvetteforums.com
http://forums.corvetteforum.com/showpost.php?p=1557417708&postcount=1
Got my new ceramic pads from LG and took my Z to the dealer today to have them installed. They kept the car all day then finally told me that they did not know how to remove my stock pads and were afraid they would break something! They would not do work on my brakes.
I asked what they thought people should do when the pads wear out? Service guy’s response was that the pads were supposed to last 80k miles on the new Z06. I guess you have to dispose of the car at that point once the pads wear out. Hard to believe a Chevy dealer cannot remove brake pads on a Chevy car!
They also refused to fix the ash tray door. Said it looked like all the other ones on the 07 Vettes and it would probably just keep opening if they replaced it.
I won’t name the dealer. But they are here in Jax, FL - south of Avenues Mall. A place to avoid at all costs.
———————–
What’s that about?
You mentioned the product (product, product, product, product) in your 60 Minutes interview a while back
You forgot the customer!
Do not let this go by the wayside.
You need to invest in your dealers (dealer training) so that you can offer the best experiences ever.
Just because we’re headed toward a competitive mass market, doesn’t mean that you can’t offer customer service anymore.
Forget gimmicks like dealer Christmas cards, and really sit down with your dealers to discuss attitudes, skill levels, and other dealership experiences.
You don’t have to be average.
Put someone on it, and make GM stand out.
Don’t waste money advertising about your “friendly dealers”, just let the word-of-mouth spread, and people will come; particularly at large dealers on the coasts, where city life erodes friendliness.
(And keep those Corvette owners happy!)
don’t get arrogant because it’s so much in demand!
SteveG
Do yourself a favor Bob. Put telescoping steering wheels in every vehicle you make.
Step inside a Mazda3 and see what a difference it makes to driver comfort.
Then step inside a Cobalt and find yourself wishing it was included.
Telescoping steering wheels-the next years Cobalt must have this feature.
throwback
I hope GM is listening to their fans on this board. Pontiac has meant affordable performance since the early 60’s. Why is that so hard for GM to understand?
HoosierRon
There is one word that will save Pontiac: rebel. A rebel does not let others define the category, and then try to compete in it. A rebel does not take a 2.0 Ecotec and drop it into a foreign body. A rebel could not care less what Chevrolet or Dodge are doing. A rebel will not even acknowledge companies that make cars as pathetic as Camrys and Sentras.
PLEASE, PLEASE, PLEASE don’t come up with some formula for a rebel division. It’s like National Public Radio explaing to its listeners what “cool” is. You just embarrass yourself. You end up with Azteks.
Bob Lutz needs to pick a half dozen blue blooded homegrown Americans under the age of 30, give them a skunkworks building, and tell them to “create the cars you want, and make America proud”. GM has the talent to do better than kidney grills on a Holden.
Thomas
Mr.Lutz
I am concerned about your company as anyone would after growing up with GM cars and the perception that GM was everything I wanted to have in an autombile.
I had an Escalade and was happy with the car but the paint was terrible and I live near the Gulf coast and it was impossible to keep clean and then it is as if I rubbed lines in the paint trying to wax it. Is this normal?
I was shocked when I went to look at another GM car and was told that the Buick had better paint than my Cadillac and if I wanted Red it cost $1000.00 more than other colors. Is this normal?
I then looked at several and the front and rear plastic bumper covers were different colors than the car. They looked cheap and when I asked the dealer he said they were all like that.
I am sorry but I bought an Acura and I am happy with it. The dealer was great and the car is awesome. It was hard for me but the quality and the way the car looked was important. I have recently converted another former GM person to the Acura and for the same reasons.
She initially said she could never buy anything but GM but noted the same visceral disappointment. I have to ask though why I am so disappointed that GM could not have made me as happy as I am with my Acura?
I loved my GM cars but they looked terrible after one year and they were less appealing when I looked at new ones.
John
Hire this guy:
Charlie Hughes
He has this to say (from the Boston Globe):
And revenues are a result of branding, which to Hughes means a product that “stands for something.” As he put it: “You have to stand for something before you can stand out in the market. A brand is a promise wrapped in an experience.”
He added: “How many [car brands] make a clear commitment to customers? You know what Toyota stands for and BMW, but what does Mercury stand for? And, not just to pick on American cars, what does Mitusbishi stand for?”
Each of your beands needs a solid identity–no vague platitudes about “sport’ and “European-ness”. A solid identity.
allsteelers
Today I visited a large Chevy dealership in central N.J. I went to the dealers service center to get an oil change on my 2006 Cobalt SS. When the service rep told me it would take 30 minutes to complete the service I decided to stroll through the dealers lot to look at some of their 2007 models. What I have to say about the 2007 Cobalts is a shame.
I was making my way up and down the isles of Chevy Cobalts I immediately noticed problems. These are problems that I didn’t notice with the 2006 models when I bought mine 6 months ago.
First, their are major issues with the way the headlight assembly fits with the hood of the car. When I looked closely I noticed there was a gap so large between the hood and the headlights that I could get a finger between the two pieces. This is definitley not by design nor was this a problem I observed when I was looking at 2006 models. Do you know how quickly your engine capartment is going to get dirty when driving in the rain or snow!
Second, the front and rear bumbers do not align properly with the front fenders. They almost look forced in place and large gaps appear between the fenders and the bumpers.
Third, take a look at the trunk lids on the sedans. The trunk installation is very incosistent from car to car. On many of the cars at this dealer you can see the entire rear light assembly if you look diagonally where the trunk lid closes against the rear lights. This is because the trunk is not aligned properly (My 2006 has this problem.)
While these may seem like trivial things to some people it is a issue that Chevy needs to fix quickly. This will give potential buyers the perception that the car is not built to a high standard. Yes this is a high volume cheap car but GM must get these cars at the same level of assembly quality as their higher end cars if they want to win customers from the foreign brands. Based on what I saw today I would not buy this car.
How many cars were impacted by these flaw? Try every single one! And based on my count that was 23 vehicles! This was just terrible!
I’m a long time GM fan and I want to believe that their serious about quality which includes body gaps, and consistency between their vehicles. Unfortunatley they have failed miserably on these Cobalts.
http://www.gminsidenews.com/forums/showthread.php?t=39349
——————
Just letting you know, so that you can fix it.
John
I remember when we GASPED at how cool and sexy and
beautiful each year’s new Pontiacs were, 40 years ago. That is what
takes wallets out of pockets.
We no longer gasp. Please make us gasp again. Is design dead?
I’ll copy this to Ed.
Dave
Ihave heard rumblings of a new smaller Hummer. What I need is a simple basic 4 wheel drive with good fuel ecomamy. I have had a YJ, a TJ and an Explorer Sport, they were all cramped and pigs on fuel.
The old Tracker was a pretty good effort but too cramped for my 6ft four. A few more inches of shoulder room and a 2.5 L turbo diesel and it would be ideal.
A really good heater and intermittent wipers are far more important to me than power gismos and give me decent ergos so I can work the clutch without hitting my knees.
The rest of the world has such vehicles, but not here…..why?
Joe D, Cleveland
Bob,
Some of these comments caused me to stop and think about something. Roughly how many people in the United States were born between 1971-1980? I was born in 1977. I think we are considered your “GenX” and now the “GenY” (1981-1990) is comming of age. My point? There is a very large (say, 50,000,000) population that was raised with either an American car in their family or a Japanese car. It was the first time in our Country’s history that there was a good possibility you could be born into a family that drove a car built by a company heaquartered on the other side of the Pacific. I would be willing to bet a very good portion of those people grew up with the experience of either an American car that was bad or a Japanese car that was good.
As those of us who are now grown up adults with good paying jobs are buying new cars, GM has a very daunting task ahead of them - how do you get the word out that you build better cars now? NO, advertising and promises aren’t going to get it done for that group. They grew up learning that American cars were bad and Japanese cars were good….. and your commercials and promises will do nothing to change that (Pavlov’s dog, you know?).
What GM MUST do, immediately, is get rid of the typical GM dealer experience and advertisment. Instead of advertising your cars around hyped up music and lots of laser lights, talk about how you are striving hard to improve interior quality and reliability. That 100,000 mile warranty doesn’t do anything if people think the car won’t last after 100,000. If you, Mr. Lutz, and your boss Mr. Wagoner, would personally advertise on GM commercials, in a quiter more personal manner, it would be a great start.
But it’s word of mouth that grew Toyota and Honda into what it is today, and word of mouth that caused GM to slip to where it is today. Only word of mouth will get you back on track - which means you’re going to have to build cars better than Japan. That last longer, are even more reliable, and have absolutely no shakes, rattles, or squeaks for 250,000 miles over the roughest terrain possible. In other words, you must start to build perfect cars.
I hope you understand after reading this the scope of the task ahead. I really want to buy GM, and I will buy a Camaro. But that’s only going to be for my toy. Untill I see solid well built cars with no corners cut on interior plastics, safety, and performance, I will still drive a Honda for my everyday driver.
As well will many other GenX-ers.
Rick Lupori
Mr. Lutz: When GM finally revises all of their architectures they should end up similar to this:
Corsa, Aveo, Tigra, Meriva, Combo, Montana, Cruze, Agila, Barina
Delta2: Astra, Cobalt, G5, WTCC, Lacetti (Soft Top Convertible), Optra, Twin Top, Jimmy (Jeep Patriot), 9-2x (Caliber), Rendezvous (RAV-4 V6 power), Rezzo (Skoda Roomster), Vibe, HHR, Borrego (Dune Buggy X-over), Zafira, Trakker (Honda CR-V), Safari (Honda FR-V), 9-4x Cross Over
Theta: VUE, Torrent, Equinox, Antara, Captiva
Epsilon2: Malibu, Epica, G6, LaCrosse, 9-3 Sedan, Vectra, Chevelle, 9-5 Sedan, Aura, Aura Estate (Intrigue), Century Estate, 9-6x, 9-3 5-Door Hatch, 9-5 Sport Combi, G6 H/T Convertible, 9-3 Bio Power Hybrid, 9-3 Cabrio. Malibu MAXX (Outback), Signum
Lambda: Acadia, Enclave, Outlook, 9-8x, Terraza, Venture, DTS, Lucerne, Impala, Aurora
Solstice, Sky, Grand Am, Firebird, Alero, Opel Manta, Sonnet, Monza Wagon, HUMMER H5 (Dune buggy), BRX, Colorado
Camaro, Trans Am, Grand Prix, Caprice, Electra, Commodore, Barina, Calais, Statesman
Sigma: CTS, STS, SRX
Torana, BTS, BTC, Monte Carlo, GTO, Velite, Monaro
Corvette, XLR, EFIJY, Aero-X
As mentioned in other posts the Silverado should have 4.2L Inline six with 6 speed manual as standard and the 5.3L E85 available with the 6 speed manual. SS models would have a 6.2L with six speed and HD models offering 6.2L and 6.6L with six speed manual. A hand brake should be added for console equipped models to replace the foot operated parking brake. Many buyers need a manual transmission with provisions for a PTO for plows and pumps.
A “dual clutch” six speed (EasyTronic style) transmission should also be offered based on the 6L80. This would give the best of both worlds; manual shift when you want and automatic in stop and go.
Construction workers, farmers and ranchers want the 10 way power adjustment and heated surfaces of the SLT and LTZ trim but prefer a rubber mat to carpet for easier cleanup. Some buyers also prefer cloth to leather also and GM should offer the heated 10 Way seats in cloth on the SLE and LT models.
To really get the most from the GMT900 architecture GM should move the Canyon and H3 to it similar to Nissan. GM could then derive a new Trailblazer and Astro from it as well. There is still a market for both of the models and should only be offered by Chevrolet. A shorter H4 (Wrangler size) HUMMER can be created as well as a K5 “Blazer” version of the Trailblazer.
New light duty chassis derived from 1500 models but with IRS added for better handling and rear leg room with the following new models and use 116″, 119″ and 130″ Wheelbases. Engine choices start with the 4.2L I-6 using the 5.3L E85 V8 and new light duty Turbo-Diesel as options. This chassis with IRS would be used for the next SS and Denali truck models with a new rear frame section
The Tahoe and 1500 Suburban models would go to an IRS suspension to increase third row leg room and allow the third row seat to fold flat.
The BelAir series of car models can be created for very little cost and a good profit since it would use the front suspension of the GMT900 and have the new IRS from the next generation Tahoe. It would also help offset costs of the hand brake on the console and the IRS suspension.
GMT900
Sierra, Silverado, Escalade, Denali, Yukon, Tahoe, Suburban, Yukon XL, Escalade ESV, Avalanche, Escalade EXT, Express, Savanna, H2
New models derived from 1500 IRS chassis
Astro
Cheyenne (note that Colorado now “Uniframe” version of Solstice similar to Jeep Comanche)
H4
The following will move to this chassis
Trailblazer
H3
H3T
Canyon
K5 (2 dr version of Trailblazer)
The following new car platforms will be derived since they are nearly “free” these models will make a large profit and no other carmaker can compete with them.
Bel Air
Nomad
El Camino
Police
Taxi
New Heavy Duty platform (Super Duty) add new larger version of 6.6L Duramax
Kodiak (New name for Silverado HD)
H1 (same size as H2 but with heavier off road components)
Sierra HD (Should also have new name)
Just some ideas for future models, it is amazing how many vehicles can be derived from one architecture.
Mr. Langlitz (Germany)
Dear Mr. Lutz,
referring to latest media-reports over here, the sales of the Cadillac BLS are slow so far. This story is telling about only 820 sold vehicles all over Europe and disappointing 128 new registrations in Germany.
This report is citing dealerships, saying that the perception of Cadillac over here is still not favorable, meaning many Europeans considering Cadillacs as gas-guzzlers.
That’s exactly what I already posted at this blog. As I believe, hardly anybody in Europe could imagine a Cadillac, getting about 38.5 mpg. But the BLS 1.9 Diesel does it. And I have no doubt, the CTS or STS show the same or even better fuel-efficiency like their European competitors.
But as long as nobody is telling this to the public over here, the intended expansion of the Cadillac-brand in Europe CAN’T succeed. In my opinion there urgently needs to be started an advertising-campaign, regardless, whether it’s initialized by GM Europe or the Cadillac Deutschland GmbH in Meerbusch.
In addition I believe it would make sense to reconsider your original plannings and to start the sale of the BLS in the USA, too. I think there would be a reasonable demand for those great car, what finally might strengthen Cadillac’s position additionally.
Thanks for your attention.
WHlanteigne
The formula for capturing the GenX and GenY buyers is fairly simple: design, build, and sell an affordable, economical, rock-solid-dependable car. Build it in North America and call it a Chevy. Begin by offering a 2-door hatchback, then a few months later offer a wagon on a slightly longer wheelbase, then the next season offer a 4-door sedan based on the wagon chassis.
Let word-of-mouth about the car’s fantastic reliability spread for 3 or 4 years, then, as the first generation of buyers graduates from college, offer a slightly larger, slightly more “cush” version, but retain the rock-solid reliability and affordability and class-leading economy (meanwhile, keeping the original model to attract more new buyers).
As the original market ages and grows more affluent, improve the level of luxurious accessories and options. Bring out “sporty” and “luxury” versions.
Just don’t call it a Honda…
John
Mr. Lutz,
Here’s all the motivation you need:
———-
And the media establishment centers on both coasts continue to beat the drum suggesting that this country would be much better off if one of our iconic American industries simply faded away, or better yet - was absorbed by Toyota. You can practically set your watch to the now-almost weekly article in the New York Times extolling some heretofore unrevealed secret of Toyota’s success, while concluding yet again that the only formula that should resonate with anyone is Toyota = Good, Detroit = Bad. And that’s fine too. The New York Times anti-Detroit bias is blatant, calculated and plain to see to all who bother to actually read between the lines.
So, it’s time for Detroit to get real about their lot in American life. No one cares whether or not Detroit automakers survive or not - not in Washington, not in the anti-Detroit media establishment and certainly not with the legions of consumers who continue to make purchase decisions based on past horror stories with Detroit products - the people who now won’t even consider giving the new-wave vehicles coming out of the Motor City even a cursory glance.
For Detroit, it’s now a flat-out, “Us vs. Them” situation. And it will not magically get better by cajoling clueless Washington bureaucrats or courting the stone-faced automatons in the media who regurgitate the Toyota company line at every opportunity.
There’s only one thing that the Detroit manufacturers can do, and that’s build great products. The kind that consumers just can’t ignore, no matter how much the media tries to convince them otherwise. Delivering outstanding products that are steps ahead of the competition is Detroit’s only recourse. That doesn’t mean equal to the competition, because remember, consumers and the media refuse to give Detroit credit for just being in the game. No, Detroit has to exceed expectations - in design, engineering, overall performance and of course, value. And that requires an unwavering, focused commitment to excellence that must become a relentless, never-ending crusade.
There will be no shortcuts, instant financial quarter rebounds or one-hit product wonders at the ready that will improve Detroit’s fortunes this time around. They’re in much too deep for those kinds of feel-good, “It won’t be long now!” solutions.
http://autoextremist.com/page2.shtml#Rant
——-
You keep fighting!
Mkaresh
GM has always been good at developing advanced stuff…and then not putting it into production.
I agree they should have been able to do much more with HUD. Night vision came and went on the DeVille, and is now appearing (in much improved form) on MB and BMW cars. The EV1, much mucking about with hybrids (finally bearing fruit), four-wheel steer in the pickups, and dozens of other things. The problem isn’t having the ideas or even doing the initial research, it’s the execution.
John
Mr. Langlitz,
GM has that terrible problem over here too. They do not know how to advertise at all.
They couldn’t market water to a fish.
I see no signs of hope on the horizon, but I believe in Bob Lutz.
He is the only hope for GM right now, so keep posting. He will listen.
–john
Mkaresh
As for an improved Malibu boosting sales, I wouldn’t count on it. I’ve been through this thought process too many times. What people inside GM as well as outside often fail to realize is that a car much better than today’s is a minimal requirement for maintaining the current level of sales. I’ve personally observed people inside GM comparing the future product more to the current product than anything else, and concluding from this comparison that the future car will be a winner.
Mkaresh
I should add that I was inside GM nearly ten years ago. Today there’s a chance that they do what high tech companies do, and aim beyond or at least at where the competition is expected to be when the product launches. I haven’t seen a GM product that does this yet, but maybe it’s coming.
Intel and AMD don’t sit around saying, “The new CPU is 20% faster than the old one, so it’ll sell like crazy.” They say, “We know the competition’s next gen product will do X. So we’d better aim for X+1.”
The performance of the current product is irrelevant to what the future product needs to do.
John
Dear Bob,
I was reading about the Corvette Wave, and I was wondering what GM is doing to keep this tradition alive.
How many of your competitors can say they have such a devoted following?
You should ask your dealers to explain the wave to all Corvette buyers, so that they can keep the tradition alive.
It’s more than just another car out there. It’s a Corvette!
Rick Lupori
Mr. Lutz: I agree 100% with Mr. Langlitz on the need for Cadillac to “Start Over” in Europe.
As I posted with Mr. Welburn: After reading GM was introducing the BLS to South Africa and that BLS sales in Europe were terrible I did some research on the net and found the worst auto web site I have ever seen. The Cadillac web-site for European countries has no information about the equipment on each trim level. You can find the price and specifications but no real information on option content, I even “built my own” and selected some option packages hoping the summary would explain what my money was buying but no luck.
The full Cadillac lineup is new to the European market and GM needs to provide as much information as possible on the Web site so that prospective new buyers can discover what Cadillac offers. New car buyers today that are just starting to shop just want to know “what is available out there” are not going to wait to get a brochure in the mail. At the beginning stages they are not interested in downloading information and many will have researched, test drove and purchased the car before the brochure arrives
For a start copy the U.S. market Cadillac website and add BLS with other European unique information and GM will see an increase in interest and sales.
As for introducing the BLS in the U.S. as a Cadillac I think it would make a better Buick Century for the U.S. market. Buick needs a smaller car in the lineup and the BLS has the ride and interior Buick buyers like and would only need a Buick grille and taillights to be successful. Base engine would be the 3500 with optional 3.6L on the CXS models and the 38.5 MPG 1.9L Turbo-Diesel must be an option. This would further define Buick as GM’s FWD Luxury brand.
In the BLS place Cadillac needs a RWD BTS, BTC and “Twin Top” developed from the Torana Concept with V6 and V8 variants. Buick could finally get the Velite with their own “Twin Top” model along with a Riviera Coupe.
zete
I’ve read two posts that claim Toyota and Honda redesigned their cars — vans in the case of my prior post. I beg to differ. What they did was refine, though that refinement was more visually noticeable than what GM did.
Years ago I recall watching Lee Iacocca hold a bag of parts, a small bag at that. He claimed that that bag contained all the parts that were the same as the prior verson of a particular vehicle. I thought to myself at the time that that was the stupidest thing I’d ever seen. Why replace a part that works with one that has no history? Why not keep the parts you know work well? It seemed like a recipe for disaster.
Of course what I saw was exactly what the Japanese don’t do. They don’t replace something that works. They refine parts that may not be up to their standard. So if the starter isn’t as good as it should be, it gets refined. Same for the brakes, or the alternator, or the rads, or the seats, or the buttons, or whatever. If a problem crops up in a car it usually doesn’t reappear later. This is all based on the work of Deming which, in a very broad nutshell, is based on incremental refinement.
As an aside, I have long suspected that Honda takes their prior Accord model and simply rebadges it as a Civic — though with body modifications to hide this fact. Obviously I have no proof of this, but I find it odd that from the first time I saw a Civic and Accord more than 2 decades ago I noticed that each generation the next Civic became as big and looked a lot like the prior Accord. If Honda is doing this it’s genius.
In terms of the vans, I think the same thing held. The platform, for the most part, is no more than a container. It’s what the Japanese use to dump their components into. Honda found the first Odyssey was too small, so they made the next container larger. But the parts in the container were what was refined from the prior container. Toyota found each van unappealing and changed the container, and the name. Obviously the prior names were tarnished, or so thought Toyota.
The US manufacturers keep the container and incrementally refine the package. Or so it seems. I would argue that they don’t — or that they’ve only done it sporadically. Hence you get 20+ year old platforms. A platform that hasn’t learned anything from those 20 years on the road. In the hands of the Japanese that same platform would have been morphed — either radically or gradually (I find the Altima seems very derivative, each generation bearing a strong resemblance to the prior) into a new generation. I would bet that the underpinnings are very similar. I wouldn’t be at all surprised if you can take the Camry from the early 1990s to today and, at its core, that it’s a incrementally refined platform and not a total fresh start. By doing things incrementally you gain huge advantages, one of which is a faster turnaround from generation to generation.
But I do think people get lost in the look of the vehicle ignoring how much of it is truly carried over. Much as folks are surprised at how many parts a Lexus and a Corolla share, I think people would be similarly surprised at how much a 1990s era Camry shares with a modern one since I think it’s been refined via stretching, strengthening, and otherwise re-engineering towards perfection. The Big Three typically just toss and restart, something Toyota rarely does with a platform though I agree with a prior post that said the original Toyota van was tossed twice before the Sienna came about.
Mr.Wheels
In response to this topic and the statement that GM will be ‘in the traditional markets, niche market, etc,’, here is my 2 cent contribution: Take the remaining Cadillac DTS production output, send it to the salvage yard, have it all crushed, recycled and by the time the metal makes it back into production cycle, GM will have designed a real serious rear wheel drive luxury sedan. The STS is a real start, but it’s not the end all or ultimate halo model. Can you imagine the Mercedes(S-class) or BMW (7 series)as front wheel drive premium big sedans?
Mr. Langlitz (Germany)
Hello John and Rick,
thanks for your response. I think in Europe it’s not the question HOW GM (meaning Cadillac, Corvette) is doing advertising, the problem is, there is no promotion at all so far! I’ve never seen a commercial on TV yet, not even a corresponding advertisement at a newspaper. For example, when DaimlerChrysler introduced the Dodge Caliber in Germany, there I could see a spot from time to time on TV. There’s a considerable amount of people, who seriously believe, only Chrysler would sell US-vehicles over here. That’s a bad joke! At least the Corvette made more friends in Europe, I think one reason is its excellent performance at several reviews over here. The other reason is, you get such a outstanding value for your money which you definitely won’t find at the competition over here. The Corvette by far is the only sports car available for under 70.000 Euros in Germany.
Hans
“we will continue to be aggressive with our product assault, with frequent and wide-ranging launches. We’ll be in the traditional segments… we’ll be in emerging segments… high-volume, niche-market… you name it – we’ll be there”
Herr Bob Lutz,
Hmmm. Sounds a little “high and mighty” on your part and GM’s too! I really must give you credit; I really like some of the new models appearing at GM dealerships across the country. You have made great strides with the styling and appearance on some of your vehicles. A nice fresh look from GM!
What strides are you and GM making to overcome your product quality issues, loss of confidence by the American consumer, eroding market share and the low vehicle resale/residual values?
That new Honda Accord with the new “all aluminum’ Turbo Diesel sure looks exciting and promising for the American consumer. Have you had the opportunity to drive a TDI Touareg? That kind of performance on Bio-Diesel and 27-30 miles to the gallon is both innovative and exciting.
Whats happening with the truck market and your rural buyer? Most of the farmers in my rural hometown are now driving Titans and Tundras and the Buick has been replaced with a Lexus. It really shocked me!
I think you and I should sit down for a weekend chat and discuss the car business. I think it would be beneficial and enjoyable for both of us.
Vielen GruB,
Hans
J Freitas
Mr Lutz,
Glad to see GM’s new vehicles. I think all the “import lovers” out there should really take a look at what GM has to offer. I don’t believe the Toyotas & Hondas are all that good anyway. However, to beat the imports means convincing buyers and thinking long-term market share, not always short-term profits. Build a great product, and it will sell itself and change people’s perception. Build an inferior product, and it will ruin the company’s reputation tenfold.
Case in point: if GM brought out the Equinox/Torrent with the newest 3.5/3.9 OHV V-6 or the 3.6 OHC V-6 and 6-speed automatic, the press would have not been so hard. GM would have had a lot of praise for what is an otherwise great small SUV. Rather, GM chose to save money with a chinese-made 3400 V-6 that is as old as the hills. This move, while saving money in the short-term, generated a lot of negative critism from the auto magazines which people read. This in itself will changes people’s perception even before the visit the showroom and check out a GM product for themselves. You probably lost many sales this way.
So, hopefully GM learns from this and it looks like you’re making the necessary changes. Keep on track!
FT
Mr. Lapori above makes a valid point about marketing the BLS as a Buick in the United States. Namely due to the car’s “near-luxury” mechanicals and interior.
To be honest this same argument could be made for the entire Cadillac line-up which is really more suited to be sold as Buicks or Pontiacs. This also seems to be the consensus in Europe and Japan, hence little to no sales, that American auto makers are no longer able to compete at the same level as aspirational brands like Mercedes Benz, BMW or even Bentley. American auto makers are snided for not being able to execute and bring to market autos that discerning customers in the category qualify as true luxury cars(and they rightly point to the interior of the CTS and the fate of the Lincoln brand to sufficiently state their case).
Somewhere, at some point Cadillac will need to have the courage to gamble on a car with vehicle dynamics and an interior that makes people go “Wow!” (personally I am a fan of the
‘Sixteenesque’ grilles and recent exterior designs) and gives them a reason to ditch the cachet and status of the leaders of the luxury segment. It’ll take courage aka ‘foolishness’ for anyone tying his reputation to what he drives to take a chance on a Cadillac. Short of that, all the sacrifice bunts and two-base hits in the world are going to leave Cadillac even farther back of brands like Lexus, BMW and Audi with parent companies that are not afraid to invest in homeruns.
Brad
Mr. Lutz,
I am a marketing guy and all I can say is wow!! The new Silverado Commercials are great, the new Aveo’s Target market is getting perfect attention with the college aged students and I love the online only marketing spots for some of your other cars. I just saw the commercial for the new dodge nitro (i think) and it is really was strange. I don’t understand DC’s spot for that one. People can relate to the history, the great song, and the new truck. I hope this one is a home run for you guys, as it should be. The other thing someone at GM should work on is before, during, and after the sale. Marketing (as great as it is getting right now) can only get your customers to the dealership. It is then the dealerships’ responsibility to sell themselves and hopefully a GM vehicle to your customers. I have been to enough sub-par GM dealerships, that just weren’t doing “everything they could.” You somehow need to get them all on the same “turnaround” bandwagon that you execs. and the rest of Detroit is on. Trust me, it will do nothing but help you, and the company.
Otherwise, keep up the great work!
Horst Müller
HI BOB,
I was proud to work for over 40 years for GM-OPEL.When i looked at the latest OPEL Vehicles for example Astra/Corsa 2007, i am sure that customers in Europe like all these cars. But how about this VECTRA/SIGNUM should be more and more important as a flagship for OPEL. OPEL does have so many excellent vehicles and needs a strong presence in VECTRA/SIGNUM class. I hope the new VECTRA is benchmark of the European car industry. I have a feeling it will be that good.
Best regards
Horst Müller/Germany
Ian
Hey Bob,
I have heard rumors that GM might not bother with a new minivan for 2008/2009, I think there may still be a market for minivans, maybe you could build one with another car company, much like the Pontiac Vibe/Toyota Matrix twins. Toyota seems to know how to build minivans(hint, hint). Another possibility could be to build just one minivan for Chevy, off the new Lambda(crossover)platform, then Chevy would have a lambda that looked nothing like the other three, without saturating the market with 3 crossovers and 3 minivans all on the same platform.
Marc Carignan
Dear Mr. Lutz,
I applaud the direction you are leading the company; GM is meaningfully expanding its portfolio of desirable, competitive vehicles. Even the press is noticing; in this week’s Autoweek Magazine, in a two page article about the new Toyota Tundra, the writer stated, “GM, with its new trucks, might be the only automaker that needn’t panic about Toyota’s onslaught…” in effect saying the Sierra/Silverado will be the top dogs in this fight. Nice work.
Despite this, GM has made it very difficult for me to remain a loyal customer. My current and my previous GM vehicles cost me dearly in downtime, repairs, rental cars and frustration due to reliability problems. At one point I was so exasperated, I wrote a letter to the GMC Customer Assistance Center looking for help. I did not make any outlandish requests, yet the written and telephone responses I received were less than adequate. As I contemplate my next vehicle purchase, wouldn’t it be foolish to subject myself to this again with another GM vehicle?
Mr. Lutz, I suspect you will never see this note or the more detailed letter I wrote, and I doubt you have much time or energy to address the problems of the past. But if you take some time to look at the scores of letters and calls, like mine, logged by your support personnel over the past five years, you will probably find a huge pool of consumers who are unhappy, but, if treated properly, would be future GM buyers.
Marc
grouper222
Bob,
I have been a loyal GMC buyer for 10 years. I would like to buy a new Yukon XL but want a 6 speed transmission without going up to the 6 liter Denali. I really think GM is improving, especially in interior quality although some of the plastics are still too hard or shiney.
Joanne Van Camp
I wish you would return the assist bar on the dash, on passenger side of your SUVs
Such as Cadi Escalade and
Chev Suburban,,,,,,I found it very helpful and miss it very much. Please!!!
Thank you,,,,,,,
Joanne