A Special Honor
By Bob Lutz
GM Vice Chairman
I usually blog about cars and trucks, because that’s my responsibility, but today I’ll make an exception, to briefly point out something that we are very proud of at General Motors.
Yesterday I had to go to Washington to represent our chairman and CEO, Rick Wagoner, at the U.S. State Department. GM was awarded the State Department’s highest award for American companies operating overseas. I was honored to accept the Award for Corporate Excellence from Secretary of State Condoleezza Rice, who recognized GM for our social responsibility programs in Colombia, South America.
I accepted the award on behalf of General Motors’ Colombian operations, GM Colmotores. Employees there have worked very hard on several vital programs, notably in supporting the non-profit organization Juan Bosco Obrero, which houses and retrains former illegal young paramilitaries and reintegrates them into Colombian society. The company also supports, through funding and volunteer work, the needs of children and families displaced by violence.
GM Colmotores just celebrated its 50th anniversary, by the way. Seems they also have an almost 50 percent market share, so it’s a case of “doing well while doing good.”
So, while I normally save my enthusiasm for our new products, I was deeply moved by the great work of one of our smaller subsidiaries. And Secretary Rice is, as one would expect, a most impressive person. All in all, it was quite a rewarding day.
To see the speech in full, take a look at this video.
- Posted in Bob Lutz
Luis
Thanks Mr Lutz.
I´m so proud and happy, as a great fan of GM, of you, and of course, being Colombian.
Mr Wagoner, you and the great team leading GM deserve this award, as well as the GM Colmotores team.
From Colombia I wish you the best.
John
Congrats Bob!
I only wish the good GM does in this country would get half as much recognition.
Now get back to work whipping GM into shape!!
What you need to work on is GM’s marketing. It’s a total disaster from where I stand here.
Time to advertise your products–according to their respective brand identities and leave this “value” stuff alone.
Also, I have a question: of what importance is leapfrogging the competition in your own product development?
Edmunds just finished a long-term test of the Cobalt and sys the imports have nothing to worry about.
In its MCE, you guys needs to set the bar above that of the competition in terms of styling inside and out, fuel economy and fit and finish.
Send it to Europe to get some handling and ride manners from Opel, and focus on interior materials, space utilization and the overall design and feel of the package–
http://www.edmunds.com/insideline/do/Drives/LongTerm/articleId=107488
Good luck and remember:
1. Product, product, product, product, product.
2. Customer, customer, customer, customer, customer.
3. Consistency!!
4. Effective marketing!!
5. Leading (not playing catch-up or “good enough for now”)!!
6. Style and design ( a million times over)!!!
John
P.S. Bob, what are your plans to assault the California (urban) markets across the country??
Is it the same old? Are you listening to your dealers out there?
You need to set up a rapid-fire team to come up with no-cost AND log-term solutions to this problem.
Up here in New England we see new ToyoHondaNissans every day, but it takes months to even see ONE new offering from Detroit.
Gas is more expensive and winter safety is important, but your ads are non-existent–except when they are talking about “price”.
Please fix this.
Thanks!
getalifeagain
That is quite an honor. Congratulations to you, Bob, and GM!
Edward Hayes
Thank you GM for setting a shining example of how a responsible corporate citizen should conduct itself and its business througout the globe. I never did accept the stereotype that American companies or especially GM goes around the globe conquering markets and pillages that country’s assets and markets to feed their fat corporate culture at home. (A $70 billion trade imbalance every month does show otherwise.)
I could think of another company but I never accepted that lie and myth, but even I stand in awe and am humbled at the measure and extent GM and Colmotores goes to help its citizens and of course its own employees, because charity begins at home.
I also want to congratulate you on your service to the farmers of America. Thanks to your efforts the rust belt is turning up golden once again and even in the last week the breakthroughs in ethanol are astounding. Verasun is squeezing biodiesel out of the corn byproduct from ethanol, it can now create two fuels from corn and it is even able to enhance the animal feed byproduct at the same time.
How about that?
Thanks GM. Yeah Baby yeah.
Like I said every company with integrity will make its comeback Boeing, Exxon, Harley -now GM.
Mr. Langlitz (Germany)
Hi John,
in general those long-term and comparison-tests are featuring the opinion of only a single magazine or editor. As I believe that’s never representative. For that reason I think there’s no need to pay too much attention to this. Did Edmunds also tell, that there had been found rust at the holder of the unlocking device (hatch) and at the fold of the rocker panel of the Toyota Prius after just 1 1/2 year, like I could read at a German long-term test concerning this model? No! You see: different people, different results.
I also would like to congratulate GM to this great award and I hope, the US-Government very soon will start to recognize the importance of your domestic car-manufacturers to the US-Economy and will provide the same support like the Asian competitors find it in their countries.
Buick Diesel
Hello Bob,
Congrats, and it’s always nice to see you post here!
I like your tie, and maybe you can get a laugh out of this: I recently saw a pink shirt that read: Real Men Wear Pink.
onell annz
Congratulations! I do hope that your planned Hybrid cars in China will be a true Hybrid not the Belt Alternator Starter (BAS)!
Corto
About the Cobalt
Edmunds is correct.
Of course it’s a better car than the Cavalier it replaces (thank gawd) but nothing to worry the imports. I saw a comparison which pointed out flaws under the car which will cause problems to owners living in snow areas. For one, the ABS captors are exposed and the antipolution module is mounted in such a way that it will pick up snow and water. The old generation Corolla which it was being compared to did not have these flaws, which are simply the result of poor design. Sure, asian cars are not perfect and everybody seem to be biased towards them. That’s because they earned their reputation in real life conditions and this is reflected over and over again in owner surveys: all of them, not just the opinion of one individual.
franknic
Great Job, Congratz Bob and GM!
Gene
Mr. Lutz,
Congratulations on the award! It truly shows that GM is being a great corporate citizen in all parts of the world in which it does business.
In China, GM is doing great work with its partners in the Chevrolet Red Chalk program, which provides education enrichment for underprivileged children in rural areas of China.
It’s another example of a great company doing great work, all over the world. This award is a great honor, and GM certainly deserves it.
Mr. Langlitz (Germany)
To Corto:
“Sure, asian cars are not perfect and everybody seem to be biased towards them.”
Absolutely right. But I think to a certain degree that’s also caused by the media and the way they report about certain brands. These owner-surveys you mentioned are existing over here in Europe, either, and despite some German and other European brands repeatedly fall far behind the Asian competition and gain only mediocre or even real bad results at those surveys, there’s not such a hype about Asian manufacturers at our car-magazines like it sometimes can be observed in the US.
Cory O'Connor
Congratulations to GM and thank you for having a blog. More senior executives ought to follow your example.
John
General Motors will likely launch a new Hummer truck in 2009, the head of the niche brand said.
This should not have been disclosed!
GM does a great job by not predicting Enclave sales, but blows it here. News of the “new Hummer” should be off limits until just before launch.
GM blabs too much to the press and is in the news too often. Its just an ego trip. Toyota keeps product info locked up tight and by doing so never has to explain changes, keeps the excitement level up, and controls supplier expectations.
Heads of GM divisions should be forbidden from giving interviews. Marketing people should be forbidden from giving interviews. There should be two GM employees (max!) who talk to the press about product before it is officially launched, and those conversations should be RARE.
Neal Severn
Bob,
Congratulations on your recent award from Secretary Rice. I’m very proud of the work GM is doing with respect to Hydrogen power and I think you are on the right track. I have a solution to a problem that many companies in your industry are working on and that is distribution of Hydrogen. If customers are going to buy Hydrogen vehicles from GM starting in 2010 they will need a place to fill up and currently the infrastructure is not available nationwide. I believe my solution is simple, inexpensive compared to other ideas being pursued by energy/oil companies, and it will provide a point of differentiation for GM.
I believe that eventually all oil companies around the country will have hydrogen power at all stations around the country. The switch will take many years and billions of dollars but, it will be done since the demand is there once car makers are supplying the vehicles. So there will be a disconnect between the car makers who want to produce the vehicles, consumers who want to reduce the dependence on oil and the speed at which the infrastructure can be implemented. My system will speed that process up and give GM the upper hand. Here is how you can do it. Install one or two Hydrogen pumps at every GM dealer in the country. I assume you could work with the auto dealers to share the cost since they will benefit from filling up cars on their property and the increase in traffic from current GM owners stopping bye. I believe the more people you have enter your showroom the higher your sales will be. This will help you out since this provides an instant network of easily accessible pumps all round the country off most highways across the US and the cost will be significantly lower since the dealers will help chip in and only a few pumps will be needed since this is just to get the ball rolling. I believe once the oil companies see that this is a good business model and GM is selling the vehicles they will speed up implementation. Once they do this will only spur more sales of GM vehicles since you have more choices and I believe will become the clear leader in the area. Even after most gas stations carry Hydrogen the need for the pumps at the GM dealers does not go away so this is a long term solution to a long term problem at a minimal cost.
I hope you like my suggestion and if you have any questions please feel free to send me a message. I read everything I can find on hydrogen vehicles and I’m convinced this will work.
-Neal…
Adam Wadecki
Bob–
One word: FIREBIRD. Where is it? I want one. I’m waiting to upgrade from my 1982 Trans Am.
With hoodscoops, T-Tops, and pop up headlights. None of this composite headlamp stuff. Pop up headlamps have been/are still very cool. I was sad to see them go on the Corvette, although the current car wouldn’t look appropriate with them.
John
Mr. Lutz,
You need to set up an emergency task force entrusted with cracking the coastal markets in the short and long terms.
More than just a blowout PR campaign, this force must consist of GM Marketing (a scary proposition), coastal dealers–especially those who also sell imports and anyone else who can provide a hard-hitting, take-no-prisoners, long-term assessment of how GM can grow its market share in these areas beginning with no-cost measures and moving on.
GM has consistency problems, and barely ever gets anything for its advertising dollar–ever. So avoid all these PR gimmicks and focus on concrete changes that will allow you guys to get the market share on the coasts that you need.
My advice–start with the fully revitalized brands. That is, the ones that have been totally revamped to include all class-leading products.
DO NOT try to sell the good with the bad, because if people get a whiff of the inconsistency that is GM, they’ll never, ever turn back.
Mr. Burns
My local radio station has a contest every week, in which two listeners call in to answer a couple of general questions for prizes. They are supposed to use their car horns to “buzz in” after they hear the question.
So this morning they had this contest, and two people called in, a guy in his VW Jetta, and a lady in her Chevy Uplander. The host asked each of the participants to ring their horn so he would know what they sound like. The guy in the VW did it no problem, but when it came to the lady in the uplander, she had a bit of trouble, her horn wouldn’t work! She kept trying but the stupid thing wouldn’t honk, and in the end had to “pretend” to buzz in.
It was quite an embarrassing moment for Chevy IMO. Why does GM still keep these ***s on the road?
They amount to at least 50% of GM’s problems.
Gerald Tomechko
Dear Mr. Lutz,
I buy American, and only GM for myself and my wife. I am very concerned about the comparisions I read about between our cars and the foreign competitors. I have an STS V8 Cadillac and my wife has an Escalade. How can I maintain my loyalty to GM when everything I read (Current Consumers Report rated the STS V8 the most unreliable of luxury cars) supports me switching to a different car manufacturer. I searched the internet for a GM consumer’s feedback or comment website and this is the only opportunity I found where I could express my concern.
With kind regards,
Gerald J. Tomechko
from the "rust belt"
I’m glad GM got some recognition for their good works- too little too late from an Oval office that has pretty much ignored Detroit for the last six years… IMO
Is it true that the big 3 have to go to DC to meet w/ the Pres. because he was too busy in Detroit in September campaigning & fundraising for his lost cause to deal with the real issues that matter to the American people???
Robert Wilson
Gerald it is far more effective to base your overall assessment of the vehicles you are driving by actually driving them or looking to sources like edmunds and the consumer reports evaluations that look at the current quality of the cars they are evaluating. For consumer reports to be publishing a report about “Predicted Reliability” in my opinion is completely irresponsible. There is no way even the best car guy can accurately “Predict” how reliable a vehicle is going to be. It is alright for them to make assessments about the vehicles they are evaluating in terms of how they perform when they evaluate them, but to base your understanding of a vehicle and it’s “purchasability” based on some organizations “prediction” of reliability doesn’t make any sense. Reliability is a long term issue that can not be accurately predicted based on current testing. Reliability also has a great deal of influence by a variable called, Driver Usage, that is highly variable not to mention the variables introduced by owning/operating the vehicles in different parts of the world, how many kids interact/use the vehicle, what kinds of traffic you drive in and how often, what kind of maintenance schedule you keep. There are just so many variables in the long term reliability equation that I can’t believe consumer reports even tries to “predict” it. I would really like to see what kind of statistical or other models they are using to make their predictions and what the standard error is for their predictions.
Bob
Rick Lupori
Mr. Lutz: John (11/10 at 8:50 AM) is correct GM needs a “task force” to increase GM sales on the coasts.
One place to start is by offering Fog Lights on the Impala and Monte Carlo with a 3500 engine.
This is also true of the:
LaCrosse with the 3800
Lucerne with the 3800
G6 with a 2.4L engine
Aura with the 3500 Engine
Everyone of these cars are supposed to be up level sport or luxury vehicles in their segments yet a base Hyundai can be equipped with fog lights that are not available on these “high end” cars.
Poor content choices have LaCrosse sales plummeting and the Avalon will outsell it this year. Refusing to offer options on the lower level LaCrosse has not “forced” buyers up to the higher level LaCrosse - it has sent them to Toyota for a new Avalon.
California buyers have been telling GM they would like fog lights (and other options) on GM cars for over 20 years when are you going to start listening?
The Impala could be the best selling car in this market (at worst the #2) if GM would fix missing details like this and others that I could share with you.
Do you want to sell cars in California or not?
California is a coastal state and has a great deal of Fog, many of the vehicles I see on the road on foggy nights have fog lights on and most vehicles in our company parking lot have them.
Fog lights are a safety necessity for California (and all other coastal markets) and GM is doing poorly in all of them. If GM is going to start to increase market share in these areas it must deliver what buyers need. Adding Fog Lights is an easy solution that will increase GM profit and customer satisfaction.
Rick Lupori
Mr. Lutz: Congratulations on the award for GM’s work in Columbia.
There should be another award for GM’s effective “Live Yellow Go Green” campaign for E-85. This campaign has successfully increased awareness and demand for E-85 vehicles.
This new demand is creating a viable market for distributors and producers of E-85 fuels which is the only way E-85 can be successful since there has to be a demand to go with a supply to have a market.
This campaign has also increased demand for bio-diesel and should help improve fuel standards and availability.
A company the size of GM actively promoting vehicles that use E-85 is what E-85, Bio-Diesel and alternative fuels producers have needed for years.
Rick Lupori
A correction to my previous post, should be “Go Green, Live Yellow” - need to slowdown on the typing and review before posting.
GM should show some of the activities that GM supports in the U.S. in your advertising. Many buyers are not aware of the hundreds of charities, community and educational programs that GM supports.
Eric Matthew Vest
Bob,
I just read in the San Antonio Express-News yesterday that six General Motors vehicles were named to Kelley Blue Book’s Top 10 Best Redesigns for 2007 with the Chevrolet Silverado receiving top honors. Imports won all top 10 redesigns last year. Congratulations on this accomplishment.
General Motors pulling ahead the launch of their full size pickup trucks before Toyota Tundra’s launch was a very smart move. You have trucks that are more than competitive with your competition, including the new Tundra. This should steal some of Toyota’s thunder when they launch their new Tundra. Earlier this year the business and automotive press was criticizing General Motors for redeploying engineering resources to bring out the new full size SUV’s and pickups faster. History is going to prove this was a great decision.
Also, General Motors sticking with OHV V8 engines is proving very smart. These engines are more cost effective, simpler, more compact, lighter, have less reciprocating mass and frictional energy losses, have better low end torque, and to top it off, variable displacement technology is much easier to apply to OHV engines. Ford and Toyota are committed to overhead cam V8 engines for their pickup truck engines which will put them at a disadvantage.
Respectfully,
Eric Matthew Vest
Mags
When is the last time that GM has underpromised and overdelivered on a vehicle? I can’t remember. They need to learn this very simple sales premise.
sh
To Mr Tomechko:
In my often not-so-humble opinion, Consumer Reports, a magazine with leftist connections, is disposed towards bias against every U.S. manufacturer.
If you read the fine print, quite often the problems that they nit-pick are minor in nature and expense while major problems arising in foreign manufactured vehicles are flagrantly glazed over.
The “gut check” for you is:
Are you experiencing problems with either of your vehicles?
If not, don’t worry what these so-called experts have to say.
Rick Lupori
Third time is a charm “Live Green, Go Yellow”.
Finally got that right, I guess the fact that most of the Ethanol in the U.S. will be produced from something other than corn keeps throwing me off.
It should be more like Live Green, Go Green since most ethanol will be produced from a cellulose base. There have been many breakthroughs in cellulosic ethanol production this year and making ethanol from cellulose opens up quite a few sources of raw material.
The growth of the Ethanol industry in the last 10 months has been amazing and production of Bio-Diesel has taken off. Standards for Bio-Diesel production are being defined and a new additive has been developed to help the low temperature stability of Bio-Diesel while reducing emissions when burned.
Recently a way to produce Bio-Diesel as a “Co-Product” of ethanol production has been developed that will increase the yield from ethanol feedstock and allow ethanol and Bio-Diesel to be produced concurrently. New materials have been developed to improve fuel delivery and reduce corrosion problems in pipelines.
Other Bio-Fuels such as Algae and gas to liquid can produce ethanol, bio diesel and hydrogen. Some algae to fuel processes even use exhaust gases from power plants as a complimentary fuel source that actually reduces air pollution while producing fuel.
There is even talk of a “glut” of Bio-Fuels in the near future.
Ethanol burns cleaner than gasoline and when engines are updated with direct injection, higher compression ratios, turbochargers or HCCI combustion the efficiency gap between E-85 and gasoline will narrow and in some cases be closed entirely.
Other vehicle technology such as the electrically based steering, braking and HVAC systems developed years ago for the EV-1 and improved on the Sequel will make mass produced electric, fuel cell, plug in hybrids a reality.
Newly developed electronic wedge brakes are not only revolutionary but stop vehicles better than current systems.
These improvements can be applied to current vehicles to improve performance, reduce fuel consumption and lower emissions.
GM is at the forefront of these technologies and will be a leader in many, let’s see some more products like the EV-1 and Sequel Mr. Lutz.
Ron Kettering
Just wondering when we’ll get to hear from Bo (GM Purchasing VP)? Does he direct his people to buy more and better content so that GM will have product that people will want to buy?
Does he take direction from you?
Carl
1. Customers!
2. Dealers!
3. Product!
Mr. Lutz, I am warning you! You must focus on the customer at all times.
It is time for GM to stop playing powerless, and really revamp its dealer experiences.
I have spoken!
Mr. Langlitz (Germany)
Maybe somebody has already read the latest GM News or this story: http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-11-14T204856Z_01_N14330307_RTRIDST_0_BUSH-AUTOS-YEN.XML&rpc=66&type=qcna
Mr. Wagoner is absolutely right and basically everybody knows it.
In my opinion it’s intolerable, when a US-President on the one hand repeatedly uses such terms as “Patriotism”, but on the other hand obviously deserts the US automotive industry! Shame on you, Mr. Bush! I hope things will get on track during the next Presidency. Over here a Toyota or Honda not really is more inexpensive than an Opel anymore. Apparently they did something right over here…
Brock Tice
Hi Mr.Lutz,
Can you please address why General Motors is still using Video News Releases as detailed here:
http://rss.slashdot.org/~r/slashdot/eqWf/~3/49567430/article.pl
Thanks.
Mr. Langlitz (Germany)
Mr. Tomechko,
there was already a corresponding comment from another blogger, I absolutely agree with.
We are glad, that we didn’t pay attention to this garbage which was written about the Chevy Aveo over here at German car-magazines. My wife really likes her new car. The same way I am also happy, I ignored this newspaper-trash about the Alero a few years ago. It’s reliable, spare parts are inexpensive and it’s no everybody’s car over here. BTW, it handles and drives constantly great. To me it was the best value for the money on the German market, as long it was available over here. In Germany we have to go every 2 years to the so-called T√úV (technical supervising agency) with our vehicles. I never had any problems with my car in contrast to some owners, driving European brands.
Many of those so-called experts are not even able to explain how Sodium-filled valves are working (just as an example).
Joe D, Cleveland
I must respectfully disagree with Rick Wagoner and the reference Mr. Langlitz posted.
However Japan manipulates currency is a moot point. Finacially, GM has hurdles only they can find a way to jump. Now, keep cutting costs and you’ll be on the right path. I’m beginning to think GM is a health care provider that builds cars on the side.
The end result, the PRODUCT, is what is still hurting GM. Bob, when are you going to have 6 speed transmissions in ALL your cars and trucks? The GMT-900 series trucks should have been released at full production with 6 speeds to avoid negative feedback. While interior design is exponentially better than it was 5 years ago, Japan is still making better interiors with soft to the touch plastics and no corners cut.
But what irks me and alot of people the most is all the talk about your future cars (Enclave, ‘08 CTS, G8, Camaro, RWD Impala). It’s all TALK. You need to start DELIVERING. Please. It’s starting to sound like a broken record…. “Wait till next year, wait two years from now, wait 3 years from now”. I’m a diehard Cleveland sports fan, I get my fill of waiting till next year with the Cavs, Indians, and Browns. It’s time for GM to start underpromissing and overdelivering.
These cars you have in the pipeline better be damn good cars. Anything less would be anti-climactic and will in all honesty continue keep you from attaining premire status as a car company.
Mbuku Kanyau
Bob,
GM should get a prize for investing in my home country Kenya, where Toyota will not put a plant but will import used cars into
Congrats. I think you are doing a great job.
Now here are things I have been pondering from California
#1. Its really unwise of GM to kill the TB. (TrailBlazer) Especially When Chevy is a global brand rivalling Toyota and Nissan. Do you think a Unibody Acaddia based Chevy would make sense in Africa or Middle East aganist a 4 runner or Pathfinder?
#2. On the upcoming minivans; Buick has a US Minivan. Buick has a Chinese Minivan. GMC has no minivan
Why does GMC get a minivan a Buick does not?
Or is China soo far from the US that Selling the same minivan in both China and US for Buick would not make Sense?
I would give Chevy a minivan to sell in all markets, and Buick would get its upscale version, and it would sell in all markets.
I know its not my place to tell such things to proffessionals, especially a seasoned one as you. But, i thought I let you know my thoughts on upcoming and dying products.
Lastly, I would love to meet you in person. Just to see the man behind the name! I would love to meet Condi too.
Aubrey Hill
Bob,
You need to spend more time on product quality and customer care than with the politicians. I bought a Solstice almost exactly one year ago and have had an unbelievable number of problems with it. I have called your 1-866-790-5700 number for over a month suggesting that GM buy the car back or take it in an fix everything at once because I am tired of spending my time at the dealership. They answer the phone and promise to call back (sometimes they actually do), but take no action other than stalling. Here is a case where you can actually address the issues of product quality and customer care. This Pontiac Cares telephone number is a joke - I was unhappy with the product when I started calling a month ago, but now I am even more unhappy about being given the run-around. So here is your chance to prove that your care about the quality of YOUR car - the Solstice. You have my email address - please reply.
Aubrey Hill
Mr. Langlitz (Germany)
Hi Joe,
I hardly could imagine that the CEO’s of the Big Three would undermine their own credibility by encountering the US-President with requests, which don’t consist of any substance. Also among numerous European financial experts there’s no doubt that Japan is seeking to protect its export economy by a corresponding currency policy. In my opinion, it’s already hard to understand how the currency of Japan, representing one of the world’s most powerful economies, could have a lower exchange rate than the Turkish Lira…
Of course you are right, Japanese car-manufacturers deliver great products, but their lower sticker prices, also caused by Japan’s currency policy, is still decisive, either. But I think you should acknowledge, the quality gap between US- and Japanese vehicles increasingly narrowed in recent years. (Also see: http://www.theglobeandmail.com/servlet/story/LAC.20061110.RTICKERAUTOS10/TPStory/Business
Just a word about the 6-speed transmissions. In my opinion it’s most important that a transmission works in harmony with the engine and the entire drive-train. As I believe 6 gears only make sense, if the engine delivers the necessary torque and power, otherwise the system always nervously shifts up and down.
Mercedes Benz even offers a 7-speed, but this also doesn’t help, as long as there are thousands of complaints about the rude operation or even the failure of this transmission. To be honest, in this case I prefer the smoothly working 4-speed transmission of my 2001 Alero, although it may appear obsolete today.
GM already has released some very nice and competitive vehicles recently. You are right, there’s no reason to rest, but on the other hand: “Rome wasn’t built within a single day, either”. Just to express it by using this old saying.
Have a nice weekend.
Joe D, Cleveland
Mr. Langlitz, at least in America, Japanese cars are priced equal to or in many cases HIGHER than their domestic competitor’s equal class and equipment offerings. Add that to the fact that GM, Ford, and DCX here in the States still need massive incentives and sales advertisements to drive product, and the honest truth shines through: people are willing to pay more for better quality and reliability. If you go to any Honda dealer in the states, you will not be able to get much more than $2k off the sticker price of an Accord. No matter how good of a bargainer/negotiator you are. It just will not happen. The Chevy Impala, on the other hand, is price about a grand less on sticker and those cars will not move (with anyone with some common sense) without $5k knocked off sticker (or in some cases more).
Its a case of you get what you paid for. Now, I will give credit where credit is due: the Saturn Aura and Sky are absolutely fantastic vehicles. Well built, interiors on par with Japan, and seem to be selling well without massive discounts. GM needs to apply that focus to EVERY CAR AND TRUCK THEY BUILD. Each and every one must be held to the same high quality and production standards, whether it’s a $13k Cobalt or a $75k XLR. That’s what I’m saying. That’s what Japan does.
Beaugrand
Mr. Langlitz said:
“Just a word about the 6-speed transmissions. In my opinion it’s most important that a transmission works in harmony with the engine and the entire drive-train. As I believe 6 gears only make sense, if the engine delivers the necessary torque and power, otherwise the system always nervously shifts up and down.”
Having multiple gears allows engine designers to tune the engine to operate within a narrower, more efficient rpm range. This is why heavy diesel-powered trucks typically have 9-speed or 15-speed transmissions- because the diesel engines they use operate within a narrow, 500-rpm band, for example from 1600 to 2100 rpm, or from 1100 to 1600 rpm. Cars typically operate (far less efficiently) within a much broader rpm band (from about 1000 to 3500-4500 rpm typically). More gear selections might allow the engine to operate within a narrower, more efficient range, such as from 1000 to 2500 rpm.
On the other hand, adding a couple more gears to your 4-speed gearbox would allow a “taller” final drive ratio, or it would allow the addition of a couple of overdrive ratios within the transmission. Thus, you would drive and shift as usual within the lower 4 gears, except that you could shift into a “taller” ratio once you reach cruising speed for better economy.
Mr. Langlitz (Germany)
Beaugrand,
theoretically for sure that’s right what you are writing, regarding those technical details.
But nevertheless my neighbor’s BMW 3-series (wagon) with 5 or 6 gears (I’m not sure) is relatively less fuel-efficient than my Alero. As he said, he’s getting 18.5 mpg, my car’s mileage formerly was 24.7 mpg (gasoline) and now is 21.4 mpg Liquefied Petroleum Gas, what’s less than 50% of the gasoline price!
I didn’t ever hear about a tremendous improvement in fuel efficiency, regarding the Mercedes Benz with 7-speed, either.
Despite of my car’s 4-speed automatic transmission, it already has a “tall final ratio”. The engine is doing just a little more than 3000 rpm at nearly 100 mph.
Of course GM’s development of transmissions has to go on in a competitive way, but nevertheless, in my opinion everything first has to prove at daily driving, before it’s time to praise it.
Mr. Langlitz (Germany)
Hi Joe,
of course, sitting here in Germany, I can’t judge, how the prices of cars actually are in the US. And I absolutely agree with you regarding the efforts which are necessary for US-manufacturers in order to compete with Asia.
But nevertheless at this report from Reuters was written:
“The U.S. automakers claim that Japan’s yen is kept artificially low so that the effect is to provide a subsidy between $3,000 and $9,000 per vehicle for Japanese cars.”
In my opinion, it would be totally embarrassing for these CEO’s if it became evident, that this numbers just would be nothing but pure fantasy. As I believe, as a consequence they hardly would tell this, if these figures wouldn’t be based on reliable data.
A few days ago there was an interview on Bloomberg TV with a respected German financial expert. He also basically agreed with the point of view of Detroit’s CEO’s, what’s even more remarkable since the reputation of US car manufacturers in general is not that high in Europe.
Joe D, Cleveland
Mr. Langlitz,
I am aware of that arguement from the CEOs of the big 2.5 - they spent the day with the President for that very purpose.
You seem to know your corporate automotive information, so you may remember Chrysler Corporation (when it was 100% American owned and operated) was bailed out by the govt. in 1979. They were on the verge of bankruptcy when they asked for and got substantial loans at very low interest (at a time when interest rates for a mortgage were over 12%). At that time, they were being swallowed up by Ford and GM (Japan and Europe had hit the market here and was already starting to make some noise).
Chrysler took the loan money (along with brilliant CEO Lee Iacocca) and used it to turn the company around. Only to be bought 20 years later by Daimler/Benz.
Today, GM Ford and DCX are in it together. And our government has made it clear they are not going to bail anyone out again. I’m not incinuating that the 2.5 will go bankrupt anytime soon, but they seem to act as if it’s not their fault they’ve collectively lost half the North American market share. If they had been building superior vehicles for the last 20 years, they could have kept Japan and Europe at minimal market share. I think most people in this country would still buy American cars first if they made the best product.
I drive a Honda, but if GM made a better car, or even just as good, I would have never, ever bought a Honda. GM is learning that now, they are making changes for the better, and I really am pulling for them. That’s why I’m so critical of them. And I think more people need to be. If I didn’t care, I wouldn’t even be on this blog to begin with. I want GM to succeed more than anything. I want them to put everyone else out of business. At the same time, however, I believe in buying the best product for my money.
Joe D, Cleveland
Mr. Langlitz,
I am aware of that arguement from the CEOs of the big 2.5 - they spent the day with the President for that very purpose.
You seem to know your corporate automotive information, so you may remember Chrysler Corporation (when it was 100% American owned and operated) was bailed out by the govt. in 1979. They were on the verge of bankruptcy when they asked for and got substantial loans at very low interest (at a time when interest rates for a mortgage were over 12%). At that time, they were being swallowed up by Ford and GM (Japan and Europe had hit the market here and was already starting to make some noise).
Chrysler took the loan money (along with brilliant CEO Lee Iacocca) and used it to turn the company around. Only to be bought 20 years later by Daimler/Benz.
Today, GM Ford and DCX are in it together. And our government has made it clear they are not going to bail anyone out again. I’m not incinuating that the 2.5 will go bankrupt anytime soon, but they seem to act as if it’s not their fault they’ve collectively lost half the North American market share. If they had been building superior vehicles for the last 20 years, they could have kept Japan and Europe at minimal market share. I think most people in this country would still buy American cars first if they made the best product.
I drive a Honda, but if GM made a better car, or even just as good, I would have never, ever bought a Honda. GM is learning that now, they are making changes for the better, and I really am pulling for them. That’s why I’m so critical of them. And I think more people need to be. If I didn’t care, I wouldn’t even be on this blog to begin with. I want GM to succeed more than anything. I want them to put everyone else out of business. At the same time, however, I believe in buying the best product for my money.
Mr. Langlitz (Germany)
Hi Joe,
thank you for your response. Basically I agree with you. Regarding your statement
“If they had been building superior vehicles for the last 20 years, they could have kept Japan and Europe at minimal market share.”
I nevertheless would like to add that over here the Imports also gained considerable market share. If you put it this way, like you told, then German manufacturers failed, either. BTW, GM’s market share in the USA still is about 6% higher than Volkswagen’s in Germany. Basically I think it’s almost impossible to prevent foreign companies from selling their goods in your country, regardless where you’re living, as long as these products provide a good value for the money. So I also to expect the Chinese fighting for their piece of the cake.
Let’s watch how things develop. Anyway, thank you for sharing your thoughts with me and the information. Stay tuned.
Phil
Do us all a favor and get a fuel cell vehicle that recycles it’s water into new hydrogen and emits only…………OXYGEN!!!
J. M. Stewart
Mr Lutz:
AS someone who teaches a course in electrochemistry I understand full well the impetus to use Li-ion for the Volt, but I hope you have people also checking out the FireFly foamed graphite lead acid cells recently announced. They may represent a viable alternative. I have not been able to get a definitive energy per unit mass figure in my Internet searching, but there may well be a back up position here to get the Volt on the road. My Prius cries out to be replaced by a Chevrolet!