Changing Perceptions
A Progress Report on GM’s Turnaround
By Steve Harris
Vice President GM Global Communications
A big part of a accomplishing a corporate turnaround is changing people’s perception. It wasn’t long ago when it was tough to find a story about General Motors that didn’t mention the possibility of bankruptcy — a possibility that we were never willing to entertain. Instead, we’ve been working on quality, innovation and design; improving our products and cutting our costs. The signs are visible in our showrooms, in our new concept vehicles and our new fuel efficient vehicles.
And it’s begun to pay off. Yesterday, Rasmussen Reports released a poll indicating that GM is viewed favorably by 69 percent of Americans. Fortune magazine also reported on “America’s Most Admired Companies” and GM moved up significantly in all categories of performance and jumped from ninth to fifth in overall rankings. If this were a political campaign, this shift would be all over the news — it’s huge. We still have a long road ahead of us, but we’re gratified to know that we’re gaining ground where it counts. But there’s no time to stop and enjoy it. There’s a lot more work to do.
- Posted in Business
HotCarNut
Steve,
Congrats to GM on the turnaround. The struggles at both Ford and Chrysler show just how difficult it is to accomplish. Keep up the good work!
noel park
Right - there’s a lot more work to do.
When will the plug-in hybrid Vue and Volt be avaialable? How about an Aveo or other B sized subcompact with mileage equal to or better than a Yaris?
Gas is $3.00 a gallon in L.A. today.
Second best isn’t going to get it. If we have earned anything, we must have learned that.
Henry D
Steve,
Many reading this blog will know that GM’s ONLY interest is to cut cost. The demise of most of your supply base is proof of this fact. Congratulations, you have become the Wal-Mart of car companies. But of course, more cost reductions are expected.
GM reliability will never be among the best until you are willing to put money in the product and allow your suppliers to make a fair profit. Cutting corners to cut costs WILL hurt you in the long run.
Have you had an opportunity to review the latest Consumer Reports? The magazine needs to replace the black ink after printing the GM pages.
Sudip Verma
I’m pleased to continue to follow the turnaround of GM. Your design teams have a done a great job with your latest models. The Cadillac CTS is just a fantastic well put together car.
GM continues to make progress, and you are correct in mentioning there is a long road ahead. With Toyota nipping at your heels the road ahead is no doubt going to be difficult.
I think GM needs to continue to use advertising to reflect the progress the company is making. Most in the public still equate the GM name with troubled times and mediocre cars.
Those who follow the auto industry know this is not true. Perhaps your cars will do the talking, but people still need solid information to disprove their inherent biases about GM.
I look forward to seeing your latest releases!
Andy
Ford Motor is still misstepping. The Edge is a gas hog on par with the Explorer, hardly improving the Ford green image. The Shelby is heavier than the Queen Mary II. The new Escape is a mess of design. Lincoln and Mercury continue to have a bleak future. Don’t get me started on Chrysler. GM is looking far better than those two. I recall Bill Ford, Jr. being on the cover of Time or Newsweek as Dearborn’s messiah. What happened? Chrysler was the star player three years ago. I love it when the media is wrong.
design_Kid
GM has always been a very transparent company.
When things are looking down the world’s media can see right into her inner workings and feeds on every detail.
When the media report on GM’s product plans they speak in platform codenames and discuss program details that no other car maker would ever see outside the company grounds.
In the same way, the good news about GMs future will come out in the press when everyone inside GM feels good about the future. it’s happening - but it still has a way to go. Work on the inside and the outside will take care of itself!
kurtW
Yes, the picture is improving, and the newer, better engineered models are greatly appreciated!
I do worry about Saturn, though. They are getting some promising vehicles, and the new Astra is one I want to check out. But why is Saturn’s reliability dropping (per Consumers Union)? Is it due to all the new models? Or some other issue? Please do not forget most of us own our vehicles for quite a while, and reliability is an important issue.
Gereon Langlitz (Germany)
Dear Mr. Harris,
of course that’s good news. But on the other hand press-releases and campaigns just can SUPPORT the change of perception. The basic thing is to provide constantly great products and customer-experience. So the word goes around among the public. This is the best “advertising” you could imagine. That’s the way Opel is gaining ground over here, either. The improved reputation of Opel mainly is a consequence of fresh, exciting vehicles and improved quality, which people increasingly acknowledge, since they simply can hear it from friends, neighbors and family. BTW, that’s also a matter of patience, as a basic change of perception takes years. Such promising results (Opel) from the latest TUEV-Report or diverse quality-surveys maybe helpful, but these don’t lead to success alone. Simply look to Ruesselsheim, where existed a similar situation like at GMNA. The remedy is about the same, whereas you are obviously on the right track, either.
Brent
Knee-jerk attitudes typically far outlive their utility or the reasoning that originally spawned them. GM’s biggest adversary right now is a perception, one that GM perhaps earned a long time ago courtesy of a few bad models, but deserves no more. The ’70s (and the Chevy Vega) happened 30-plus years ago, after all. But the spirit from those days, the one that gave rise to foreign car owners’ knee-jerk disdain for GM vehicles, lives on.
I was pleased to learn of GM’s winnings at the North American Auto Show. Toyota et al. do make good cars, but to say GM makes bad ones is ignorance of the highest order.
A great deal of ignorance, indeed, exists among otherwise knowledgeable, sophisticated people. And GM must eradicate this ignorance, whose corollary is negativity, a negativity that feeds off its collective desire to see GM capitulate to foreign competition.
I’ve owned a VW turbodiesel that couldn’t even make it to 200,000 miles. Then I owned an ‘88 Olds Delta 88 that went far beyond 200,000 miles. My first Toyota, a ‘91 Celica ST, lived up to the Toyota lore, going 299,000 miles, but my current Toyota, a ‘95 Celica GT, wouldn’t have even made it to 200,000 without the $5,000 worth of suspension and engine repairs I dropped into it in May of this year.
All manufacturers spew forth lemons. The problem is that when GM or other U.S.-originating manufacturers do so, large contingents of the automotive press and car-buying public act smug and say, “See, they suck. Don’t be an idiot. Buy a Toyota [or Honda or Subaru et al.].” For many, unfortunately, this seems to be the cool thing to do, the way to bond in online forums and blog comment sections, or at dinner with friends just about anywhere.
But VW and Mercedes-Benz, two manufacturers whose reliability and quality have been suspect lately in objective reports, deal much less with this kind of attitude. And Japanese companies seem to get a free pass despite such abominations as badly engineered engine blocks springing hairline fractures in mid-’80s Hondas, causing the motors to blow through the tailpipe bright blue clouds of smoke all day long.
I’m sure all of GM, not just the communications department, has pondered to no end how counter these deeply embedded cutomer perceptions. And I’m also sure all of GM has been frustrated to no end that the automotive press seems to willfully ignore foreign manufacturers’ poor product, but continually insinuates, almost as sport, that GM’s offerings are horrible.
The first order of business surely is to make great cars, which GM seems to be doing. Second is to combat the attitudes and misperceptions. I am rooting for the home team, and sincerely wish your company wild success as it goes about reclaiming its greatness.
Brent
By the way, please excuse the few typos and inadvertent grammatical errors that I introduced into my previous comment over the course of revising it for posting.
DC
Getting the 2-mode hybrid system onto the road in large SUVs will change perceptions for sure. Instead of relating GM to gas-guzzling trucks, consumers will think ‘Neat, that’s a hybrid? Wonder how it does on gas?’ At which point you tell them how much better on gas it does, and how Ford and Toyota competitors don’t have hybrid systems to make-up for the lower efficiency of their heavier vehicles. Nobody has tapped into the market for the large vehicles that benefit from the hybridization so much, this is a second shot at some form of leadership in the hybrid arena and surely a good way to dominate the big SUV market share as the market shrinks towards more efficient vehicles.
Rick Lupori
Mr. Harris: GM must introduce a viable 40 MPG car by the end of 2007 if it is to maintain a positive image.
Gas prices are rising again and soon buyers will be paying a lot more attention to MPG figures. GM has both the Cars and the powertrains to accoplish this in other markets so there are no excuses.
Even if GM loses money on these cars they need balance that against how much valuable time Mr. Wagoner, Mr. Lutz and you are spending on “low MPG image related issues” Add to this the lost sales from buyers who automatically think GM does not make high MPG cars.
I bet these two costs are higher than any loses GM may incur offering a 40 MPG car in the short term.
Long term GM can easily make money on a car like this with its GMDAT and other lower cost production facilities.
Another area GM can improve its image is more car advertisement. Even when GM does advertise the Impala it is not shown in a “Family Car” setting with a mention of the 31 MPG rating, or the fact that it offers this MPG AND more room at a lower cost than any competitor.
Saying you offer “X” amount of cars that get over 30 MPG is OK, but showing what these cars look like and how they can be used is better.
Gereon Langlitz (Germany)
“I do worry about Saturn, though. They are getting some promising vehicles, and the new Astra is one I want to check out. But why is Saturn’s reliability dropping (per Consumers Union)?” - Kurt W
Hi Kurt,
in my opinion anybody should read those statistics cautiously, even more since there’s sometimes a strong contradiction. I’d like to give you an example. Mercedes Benz does perform pretty well at the breakdown-statistics from our ADAC (counterpart to the AAA), but at the same time MB gets bad ratings from the same institution (ADAC) at customer-satisfaction surveys and MB recently got bad results from CR, either. Personally I have some doubt that these supposedly worse reliability-ratings for Saturn are based on the latest models, since I do believe, it’s too early to have accumulated sufficient data yet. I can assure you, the new Astra, which is on sale over here in Europe since years, for sure is regarded as reliable.
noel park
The morning report from the gas station across the street:
Regular: $3.19.9
Intermediate: $3.37.9
Premium: $3.55.9
Tim
A climbing airplane will slow, then stall, then “turn around,” then accelerate just before it crashes and burns. Where is GM in all this?
All eyes are now upon you. Keep your promises!!
Build the E-Flex and more specifically the Volt! Build more small diesels for the US market. Improve quality, fit and finish. Work quickly and accurately. Release technology and remain competitive. There is only one other option! We don’t like the smell of red ink in the morning and we don’t want to lose you GM.
Arthur Miller
Steve,
Public perception will change for the better only when General Motors demonstrates a long-term commitment in producing safe, reliable and fun to own cars. Unfortunately, there are very few blog entries by the GM exec’s when “COST REDUCTION” isn’t mentioned. General Motors has earned its reputation for making unreliable cars with cheap materials and shoddy workmanship. We all know you are experts in removing cost - and more often than not, the resulting cheap content comes up short of the competition. If sales growth and improved public perception is indeed your goal, GM must earn that reputation to gain back market share - and cost reductions aren’t the way back to sales growth and profitability. Until the purchasing-driven mentality changes, GM will never break out of the spiral of declining sales. It’s time to give the product marketing teams some say in the equation and for GM to invest in your future by stopping all the focus on making and buying it cheap. How about holding the buyers personally responsible for any further decline in sales.
Paul
I totally agree. GM might be changing perceptions about quality, but you’re still not breaking that 40mpg barrier that the imports have all seem to have beaten.
Until GM develops a “Prius-killer,” environmentalists like me will continue perceiving it as an old-fashioned company. The Volt might be it, but until it’s released it’s all just talk.
Or you could make me the diesel Astra I’ve been wanting.
noel park
I totally agree with Rick, 3/11, 5:23 PM and Paul, 3/12, 4:42 PM.
It seems pretty clear from “The Battery Challenge” above that the Volt is not going to be appearing any time soon.
For about the 100th time, if not a true “Prius-killer”, how about at least an Aveo that gets the same mileage as a Yaris?
Gereon Langlitz (Germany)
“…but you’re still not breaking that 40mpg barrier that the imports have all seem to have beaten.” - Paul
For sure that’s not valid for imports in general. I recall a report from Road And Track (anytime last year), telling that various European manufacturers had to pay millions of gas guzzler tax in the US. If you already would like to call GM “old-fashioned”, how do you want to call those manufacturers? Prehistoric?
johneieio
Steve — Thanks for the post and for telling folks about what we’ve started to achieve with perceptions at GM.
Bottom line, as several bloggers have noted, is that “we can’t communicate our way out of something we’ve behaved our way into.”
Only by building and selling world-class, segment-leading cars and trucks will consumers begin to change their perceptions of GM’s brands.
Clearly, the Chevrolet Silverado (Motor Trend Truck of the Year; North American Truck of the Year) and the new Saturn AURA (North American Car of the Year) are great examples. Looking at our new crossovers — Saturn OUTLOOK, GMC Acadia and Buick Enclave — you see Honda Pilot-beating value, fuel economy, roominess, outstanding design and the flexibility to seat 8 comfortably. How many folks know the new GMC Acadia’s design is so aerodynamic that it has the same drag coefficient of last year’s Corvette Z06? Now that’s slick!
Roadsters Solstice and Sky … the new Cadillac CTS, Chevrolet Malibu … and, of course, the segment- dominating Cadillac Escalade lineup of full-size SUVs. The Buick Lucerne and Saab BioPower. More than two million E-85 vehicles on the road, Hybrid buses in more than 45 metropolitan areas, and the new Hybrids being built in Arlington, Texas — today — that will boost fuel economy of those SUVs by a whopping 25 percent! Several have mentioned the ’shocking’ Chevy Volt. The award-winning safety and securtity of OnStar, the entertainment value of XM Radio …
As everyone can see, GM has changed fundamentally when it comes to producing segment-leading product with unique and value-added customer benefits, including some of the best quality and customer satisfaction numbers in the business.
Granted, changed customer perceptions start with changed product and service behaviors. The GM product, service and quality ratings of today bear little resemblence to the lineup of 5 years ago, let alone 25 years ago.
Now it’s up to us to tell the world and let them know if they are buying something else, they may not buying the best (and did I mention the best coverage in the business with GM’s 5 year/100,000 mile powertrain limited warranty WITH roadside assistance AND courtesy transportation on new AND GM Certified Used products?)
Sorry for the marketing diatribe, but when you start a tally sheet, it truly paints a very different perception of reality. Thankfully, it is one we all should be very proud of.
A good start to a long road ahead. Can we do better? We can and must. Having the best fuel economy in every segment. The best quality and resale values, the most reasonable prices. Cost cutting won’t ever go away, but we need to continue to build our investments in product development — and we have for at least the past two years. Customers should not pay for waste and inefficiency … in their cars or their services. It’s up to us to find it, root it out … and redirect it toward giving something back to our customers and the communities in which we live and work.
We still sell more cars and trucks than any other company in the world. But that honor — bestowed upon us by our customers, must be earned one outstanding product — and sale — at a time. If someone else claims that title, they will have gotten it the same way we did 76 years ago. By offering the best products in the business.
Gereon Langlitz (Germany)
Hi Noel,
maybe it would make sense also to offer the Aveo with the 1.4-engine (94 HP), which is available in Europe. At the end the vehicle’s acceleration still is good enough for everyday commuting. My wife’s Aveo gets 35.1 mpg COMBINED on gasoline and 30 mpg on LPG (LPG has a slightly lower energetic density). For comparison: The Opel Corsa she was driving before (1.2, 75 HP) got 39 mpg (no LPG-System). If you put it this way, the Aveo 1.4 still looks competitive. Anyway it’s funny, that the Aveo has a stronger engine in the US than in Germany, where we don’t have a speed-limit on the Autobahn.
Paul
Those were primarily because of the super-luxury cars they sell here. Lamborghini and Ferrari and AMG and Bentley all pay gas guzzler taxes when they’re imported.
Also, the imports I’m talking about aren’t just from Europe. Honda and Toyota both have cars that get over 40 mpg. Why can’t GM do this?
noel park
Hi Gereon:
How funny. I left a comment about the 1.4 engine on “Chevy leads the way for GM in February” below. Maybe I got the idea from you instead of Rick.
Does your wife’s Aveo have the 1.4 engine, or the same one we get here? Is it a 4 door or a 5 door? Automatic or manual?
35.1 mpg combined is pretty darned good. She must be a pretty talented driver! If I could feel confident I could get that, I would take a strong run at convincing my wife to buy one.
Gereon Langlitz (Germany)
Hi Paul,
also Volkswagen, definitely no super-luxury brand, did pay gas guzzler tax and BMW, DCX, etc. do not only sell V8-or V12-engines in the US, either. The report from R&T tells the following (I am citing):
“BMW and DaimlerChrysler paid nearly $32 million in penalties in 2005 for failing to comply with fuel economy regulations, The Associated Press reported, citing government figures.
BMW paid more than $12 million for three separate violations of the Corporate Average Fuel Economy regulations. DaimlerChrysler paid $8.5 million, followed by Porsche with nearly $6.4 million and Volkswagen with $3.4 million. Ferrari-Maserati paid $1.5 million.”
In recent days I repeatedly was browsing fueleconomy.gov. There’s an interesting chapter: “Your MPG will vary”. Indeed, that’s something we sometimes seem to forget. Primarily it’s you and me, having decisive impact on fuel-economy. I already could watch it on my own, that somebody, who obviously didn’t know how to handle the throttle reasonably, actually was facing a higher gas-consumption than me, although she/he was driving a smaller vehicle than me. Of course, engineering is important to fuel-savings, but it would be too simple just to pass over all the responsibility to the automotive industry. I think that’s something we both can agree.
Chuck Russell
I believe public perception is the key to any automotive company Thriving and not just surviving.
I believe a huge marketing decision made by GM will ultimately hurt them in the long run. Value Priceing has affected your front line warriors that pound the pavement every day. Salesman will steer customers away from brand new cars and show them certified used instead. In reality, salesman cannot buy groceries for their families on the low commissions following the crunch on dealer profits. Many customers are buying elsewhere as well because lets face it, Customers Like to haggle!
I have a suggestion for GM that will turn new car sales around. Load debit cards for every sale of a new vehicle. I know there are end of year bonuses, but not too many can sell 100 new cars a year. Just a suggestion.
gary smith
Yes, its all about perceptions at the “big three”, as it has been for years. Forget about quality (as evidenced in Consumer Reports April issue, noted in an above post). Get Madison avenue and the design department to get them in the door and then pump up the discounts. (Although GM is to car design what Penn State is to uniform design.) Favorable perceptions will fade with poor quality.
Don’t these guys get it yet. They’re building Yugos and wondering why they have problems.
If the reports about the job banks are accurate, i.e., people are being paid to do nothing, should I give my hard earned money to such a company?
Old MacDonald
Dear Eieio,
Most truly great and prosperous companies have a supply base that is positioned in a similar fashion. Take a look at what you’ve created.
What goes around comes around and it’s only a matter of time for you to end up the same way unless you change your ways….
jnaggs
the product is what has helped turn around the GM image. before the aura, saturn wasnt on most people’s radar. yesterday i was out with friends and someone spotted a new aura “Wow, what is that?”
no amount of advertising can buy what good design does everyday.
i cant wait to see what you guys have in the works.
getalifeagain
The quality of American cars from GM, has increased so greatly, but the long running negative perception preceding it takes precedence. I think this is the reason for lack of public/consumer knowledge. The way out of this, is (I think) simple side by side comparisons of GM cars vs. the best Japanese ones, in your advertising.
This is how Ford did it in 1903 to show he had the most durable vehicle, and it won him customers.
sj
The 40mpg club is going to be much smaller with the new standards. The Civic and Corolla will not be getting 40mpg (not that they ever did) per the new ratings. While these two cars sell well, the majority of cars that get close to 40mpg on the highway are not huge sellers. People here are saying GM is a failure without 40mpg cars but the fit (37mpg hwy) only sells about 2500 units a month. The Yaris is selling less than 6k units a month. The aveo outsells most of the B class competition and the Cobalt outsells all the B class cars even though its mileage is inferior. It’s great that HOnda and Toyota offer small cars with over 35mpg on the hwy but GM has to compete on many levels and the super efficient segment is not huge right now. Let’s stick to the facts.
Gereon Langlitz (Germany)
Dear Noel,
my wife is driving the 5-door Aveo (hatchback). Actually the 5-door is called “Kalos” over here, but I don’t want to use that name at this blog in order to avoid confusion. Only the 4-door sedan is named “Aveo” in Europe, either.
Well, I’d like to say, my wife is simply driving reasonably. On the one hand, (e.g.) if there’s a slow vehicle (like a truck) in front of her, of course, she may pass it (at least if it might save some time), but on the other hand she’s not a race-car driver, neither. BTW, so I would like to say about myself, too.
Her car has a 5-speed manual. A few years ago, as she still owned the Corsa, I recommended her always to choose the highest gear at the corresponding speeds, in order to keep the engine’s RPM only as high as necessary. In Germany there’s recommended (for the average gasoline-engine) to avoid more than 2.500 RPM during acceleration. And, indeed, we could watch a considerable decline in fuel-consumption. Her Aveo has the 1.4 - 94 HP.
See: http://www.chevrolet.co.uk/models/kalos_5d/t2_perfo_engin_0.htm
In the US and Australia (Holden Barina) it’s the 1.6 with 103 HP.
As we found out, the ratios of the Aveo’s transmission are “longer” than it used to be with the Corsa. That’s not only favourable at Autobahn-driving (the car really is pleasantly quiet), but also has a positive impact on fuel-efficiency. As I mentioned, her car gets about 30 mpg, running on LPG, which is 50% cheaper than gasoline. So she’s driving her Aveo even more inexpensive than a Toyota Prius.
Henry
Getalife - You need to start with cars that are comparible in performance, features and quality, not just price. For GM’s past sins they must now deliver far more for far less $$ to get people coming back to their showrooms.
Phil
Once again I say, stop Bob Lutz from spilling the beans on FUTURE product in an effort
to CHANGE PERCEPTION, and SELL THE PRODUCT THAT’S ON THE ROAD!
For example, nobody wants the current Malibu because they know the new one is on the way, so you have to run incentives, counter to the turnaround philosophy.
You should still have ads pointing out the areas of superiority for this car right up until fall, when you then run incentives on the OUTGOING CAR.
Not waste big money all spring and summer on silly incentives!
Secondly, your competitors know everything you’ve got coming down the pipe WAY TOO EARLY, so they can change their strategies to take aim at cars they shouldn’t know about. The series hybrids should be a secret just revealed, the plug-in hybrids should be secret until next year’s Detroit Show, and the VOLT hardware should be a SACROSANCT SECRET AMONG EXECUTIVES.
But like high-schoolers, you’ve got to open your mouths to defend yourselves agianst ‘peer pressure’ from a STUPID MOVIE!
Now Toyota and others are guaranteed to unleash a harrowing surgical attack against your technological seat of power! What are you gonna do now??? I’ll bet someone from your competitors
paid these people to goad you into giving up your secrets!
YOU INTRODUCED MORE INCENTIVES INSTEAD OF MIND-RENDINGLY POWERFUL ADS. Stop it!
Not MORE ADS, but exponentially more POWERFUL ads THAT USE REAL PEER PRESSURE TECHNIQUES combined with absolutley mouthwatering visuals so you get a FAR bigger MINDPRINT impact per viewing. So you spend less. Yet sell more.
GET IT DONE!
noel park
SJ:
I said I would buy an Aveo that got the same mileage as the Yaris. I don’t care if it’s under the old EPA system, new EPA system, or somebody’s head to head test (Autoweek? Consumers Reports?).
I have commented here before on media reports that the old EPA highway mileage numbers are very opimistic, and that the 40 mpg is probably not real.
I don’t care whose rating system is used. Just get the same mileage.
The super efficient segment is huge in SoCal, and will be the fastest growth area as gas prices head up. Wait for it.
Gereon Langlitz (Germany)
That’s also useful for a changing perception:
http://www.webwire.com/ViewPressRel.asp?aId=29909
Gereon Langlitz (Germany)
“I have commented here before on media reports that the old EPA highway mileage numbers are very optimistic, and that the 40 mpg is probably not real.”
Hi Noel,
that’s an interesting comment to SJ. Obviously you are absolutely right. I’d like to recommend visiting fueleconomy.gov and doing some research. There’s confirmed, what you are saying. For example, the Toyota Prius’ rating is 55 mpg (combined), but the “Average User MPG”, which refers (after all) to 25 entries, is only 44.1 mpg. You’ll see a similar difference, when you compare the Honda Civic Hybrid.
For that reason I think, you can’t trust in those EPA-Ratings anytime. As I already asked Paul: If the Japanese actually were so far ahead of the competition, why isn’t Toyota among the best-selling car brands in Germany, but only holding a market-share of about 5% in comparison to more than 14% in the US? Always consider: We are paying 6.55$ / Gallon (Premium) at the moment. Well, in Europe there are available fuel-efficient Diesels, but those are offered by the Japanese, either. This can’t be an excuse in my opinion.
noel park
Hi Gereon:
Thanks.
I prefer to think that the Germans are just smart enough, and have enough national pride, not to sell out their economic base to save a few bucks on a car, or, God forbid, to make some sort of a fashion statement.
I walk my dog around the neighborhood in the morning, and I just want to weep to see the overwhelming number of Japanese cars, and the almost total absence of US makes.
I have been reading the books of Chalmers Johnson, “Blowback”, “The Sorrows of Empire”, and, currently, “Nemesis”. He is a University of California professor, concentrating on US - Japanese relations for many years. One of his underlying themes is that we have sold oupt our manufacturing base
Gereon Langlitz (Germany)
Hi Noel,
this might be true, what you said in regardance to the Germans’ national pride. When I compare German car-magazines to those from the US, it’s my impression, that our newspapers much more trend to report positively about our domestics. You’ll seldom find a comparo over here, showing a Toyota, Mazda or Honda ranking higher than a VW, Opel, BMW or Mercedes.
Of course, the Japanese are producing excellent vehicles, but sometimes the road-tests from US-magazines seem to be a little biased. What’s remarkable: The first-drive reviews concerning the Opel GT, which is actually the same car like the Saturn Sky Red Line, show even more praise for that vehicle over here than in the US. The model already is sold out in Germany!
But I don’t think it’s too late. GM is coming along with an increasing number of excellent products. Opel’s recovery is also based on great new vehicles and as I do believe, GM will do the same. The situation in Ruesselsheim and Detroit seems to be pretty similar, as far as I could watch it.
noel park
Hi Gereon:
Thanks again, as always. God send that you are right concerning GM USA and new products. We are saving our money and looking to the day.
The last part of my comment above didn’t make it, evidently due to some technology ignorance on my part.
I wanted to finish up my last sentence to the effect that Professor Johnson says that we have sold out our manufacturing base as a quid pro quo for maintaining our Imperial network of offshore military bases, particularly in Japan proper and Okinawa. Even some Germans may identify with this. All credit to them for trying to help save us from ourselves in the Iraq adventure, but that’s probably for another blog
When the above went awry, along with a fairly bitter comment on “Energy Security and Climate Change” above, I sent another comment accusing GM of editing the blog for political correctness.
To his everlasting credit, Mr. Will Stewart, who is “moderating” the blog this week, sent me a personal e-mail assuring me that such was not the case, and suggesting that something went wrong in the transmission (read “Noel pushed the wrong button”). He also very tactfully did not post my last comment, which would only have embarrassed me in the end.
Well done Will. My confidence is restored. Or at least it will be if you publish my comment about Mr. Lutz on the “Energy Security..” thread!
Gereon: As to the diesels you are dead right (no pun intended). The “legacy” fleet of diesel powered commercial equipment in our region produces hundreds of premature deaths and thousands of serious illnesses every year. Diesel particulate is deadly. This may be cleaned up someday, but probably not in my lifetime. Southern California is known far and wide as “The Diesel Death Zone”.
Be careful what you ask for guys, you might get it.
getalifeagain
I think the finance departments have the ears of management. This would cause cuts in the original engineers plans, and what the results are is a less than stellar product.
Blame shouldn’t solely go to management though, as I think stockholders are breathing down their necks constantly looking for instant results and what the next quarter will do. This does not work for long term vehicle planning. Again the final product suffers.
Jim Darrh
I agree that G.M. has come a long way. Just reading a quote from Bob Lutz ” We can’t keep making vehicles to be as good as the competition. We have to aim three notches higher so by the time we hit the market we are in the lead-we can’t be just good enough anymore.” in Motor Trend magazine gives me hope and some confidence that the work will continue. It also helps G.M. when they listen to their customers, fans, and critics. I for example was happy to hear that Pontiac was going to rear wheel drive. I would also like to see Pontiac offer all wheel drive. I would like to see Pontiac offer a rear and all wheel drive G6 on the same chassis as the Cadilac CTS. Being a Pontiac it should have sleeker and sportier styling. Especially the G6 coupe. A 450 plus horse power G6 coupe with AWD would be a modern sports car and be an alternative to the retro styled Camaro, as well as to the more squared styled CTS. I would like to see G.M. offer production XV8 engines in their line of trucks as well as some cars including the Corvette. I believe they would be lighter and more compact than a DOHC engine with similar fuel mileage and horse power. XV8 engines would steal some of Toyotas Tundra thunder and sales. By the way would someone tell Ford that the new full size pickups have a fully boxed frame. It is time to redesign the mid-size pickups with chevy and GMC getting new suvs on the chassis as well as Hummer. Chevy and GMC would be sportier and more aerodynamic with rounder styling and perhaps a new independant rear suspension. Options for G.M. vehicles should inlude seats that heat and cool and massage. Use the navagation touch screen display as part of an upgradeable system which could have optional systems added. The optional systems could include a car cell phone, trip computer, driver information system that coule integrate with the other computers and tell you why the check engine light is on as well as routine funtions such as low coolant, time for oil change, door open, etc. It could also include graphic displays of instruments not included in the guage cluster. Other systems that could be added are a full function computer with optional printer, fax(if possible), copier, cd/dvd burner. The hard drive should be removeable so it can be taken inside and connected to the owners computer in the office or home. It would be perfect for people who use their car as an everyday part of ther business. Another optional system could be a rear backup camera. Of course all systems should be user friendly with buttons, touch screen controlls as well as voice activation and recognition. Anyway I like what I see and am really excited for whats to come. Keep up the good work, peoples perception will change and the turnaround will be done before you know it. With more class leading vehicles will come more sales and profits.
Marc Golding
I think that anybody who cant see General Motors improvements in Quality has their head up their a**.
Consumer reports has beeen a joke of a magazine for as long as I can remember , it basically caters to people who believe the hype that japanese cars are bullet proof. I do believe GM and the American auto industry have been looked at as not as realiable and as nicely built as the foreign competion, some of it is justified and some is not. Alot of people today want to bash Gm and Ford as much as they can, I think there are two main reasons is they dont know a thing about automobiles and 2nd they see all the bullshit media tout the foreign auto makers like they are gods gift to the world. I’m 29 and have always been a Ford person,and still am but to me Ford has their head up their ass still and are producing cars they want not what the people want. To me GM has seen the light, and deserves respect for their new products with the exception of a few(cobalt). They definitley have mine.
Ross
Just thought I’d pass along that the Aura got some good press on instapundit.com. That’s a very good thing.
http://instapundit.com/archives2/003570.php
Gereon Langlitz (Germany)
Did anybody read this story?
http://www.theautochannel.com/news/2007/03/26/041363.html
I think, before GM Daewoo goes to invest 3.2 bln $ on new manufacturing-capacities, it might be useful to consider shifting some of GM Daewoo’s production to those GM-Facilities with over-capacities. Actually I was reading a report at our daily newspaper, that there might be a possibility for the production of GM DAT-built Chevys at Opel-assembly lines. Maybe this even could be extended on GM-factories in the USA, either. In addition this might make sense financially.
Gereon Langlitz (Germany)
“Consumer reports has been a joke of a magazine for as long as I can remember , it basically caters to people who believe the hype that Japanese cars are bullet proof.”
Marc Golding,
you hit the nail on the head. It really makes me wonder, that CR mostly contradicts to JD Power, whereas GM and other US-Brands in the average gain mainly pretty good
results. I recall the comment from another Gentleman at this blog, saying that CR doesn’t count recalls to the defect-statistics. That’s absolutely misleading. If CR would do that, Toyota wouldn’t shine so bright by far.
I can assure you, my next car will be a GMNA-Vehicle again, so far I’m driving a 2001 Alero.
noel park
Hi Gereon
I’ll say it again, “Blowback”, “The Sorrows of Empire”, and “Nemesis”.
I heard on the radio yesterday that Korean automakers exported 700,000 cars to the US last year and we exported 4000 to Korea
I hate to sound like such a simple soul, but I can’t help wondering how, when we don’t make anything here anymore, we will be able to pay for all of these imported “goods”.
Oh well, I guess we can always export F-16s and cluster bombs.
Gereon Langlitz (Germany)
Hi Noel,
on the one hand I can comprehend your concerns, but, nevertheless, on the other hand, I don’t think the situation of car-manufacturing doesn’t look that gloomy. I’d recommend the following chart from USA Today, which I was reading two days ago:
http://www.usatoday.com:80/money/autos/2007-03-21-car-content-chart_N.htm
Referring to that, I just was calculating the average American (US) content of the GM-Vehicles, sold in the USA. After all, the portion is 70%, unless I wasn’t miscalculating signficantly. In comparison, over here there had been released a very similar chart, too, a so-called German car actually only is 35% truly German in the average. I hope, that’s a little encouraging news for you.
South Korea is exporting lots of vehicles to Europe, either. But I think that’s inevitable, since the Koreans achieved to transform all their goods from simply cheap to inexpensive AND good products. I can assure you, Hyundai/Kia and also GM Daewoo (Chevrolet Deutschland) belong to the fastest growing car-companies in Germany.
Walt deTalk
It’s all just a conspiracy against GM. All the consumers that independantly judge reliability, all the journalists in the auto industry (including CR) whose job it is to nit pick the details, they all have it in for GM and Ford. GIVE ME A BREAK.
It is GM that put themselves in the current position of continuing to lose market share. And it is GM that continues to place more focus on cost reductions instead of product improvements and sales growth. From Chevy to Cadillac, the beancounters have ruined this company. And the result - they get promoted of course.
It is truly a sorry sight to observe top GM exec’s that continue to follow the same misguided and failed direction from the Swedish military. Sure he’s winning his battle, but is losing your war. Time to get your collective heads out of your a&& and fight back. Isn’t this YOUR company too? China sales growth isn’t the answer - the locals will soon be taking that share back as well. Best you fix the problems at home - and continued cost cutting is not the answer. In this regard, there has been no turnaround - just more of the same BS.
noel park
Hi Gereon:
Well I am not just taking GM to task on this issue. I am just responding to your legitimate concern about the priority of ivesting $3+ billion in Daewoo, while closing factories here.
It’s about all import cars vs. domestic, and much, much more. TVs, shoes, clothes, consumer electronics of every sort, steel, nuts, bolts, the most basic building blocks of our society. Last week Intel announced that it would spend billion to build a chip plant in China
What are our kids going to do for jobs?
Gereon Langlitz (Germany)
“Last week Intel announced that it would spend billion to build a chip plant in China.”
Hi Noel,
one day the “average” Chinese people also want to enjoy western products, comfort and convenience. Western companies would like to offer their goods to a majority there, too. But this doesn’t work as long as the Chinese are working for 2$/hour. Consequently their wages will have to rise and then the big advantage from manufacturing in China (or India) will be gone. I think all these things will equalize to a certain degree. Some German companies even did come back in the meanwhile, partly due to quality-issues, which came up in some of those areas.
noel park
Hi Gereon:
Well I only hope that you are right. I know that you are struggling with the same problems in Germany.
Clearly wages have risen over the years in Japan, Taiwan, and South Korea. Maybe history will repeat itself in China. It’s pretty large though, and the pool of 25 cent an hour labor is huge. And then comes India.
Professor Johnson has a different view, however. He also believes that our problems are of our own making. The trillion a year for “defense” has to come from somewhere, sooner or later.
“American Theocracy” by Kevin Phillips, which was a big best seller last year, draws very similar conclusions.
Joe Albert - Germantown, WI
You know what gets me upset?
Have you heard and seen the ads - mostly from Toyota and also from Hyundai? They sate things like:
“We’ve created 1000’s of jobs here in the US….”
“Our manufacturing plants have created jobs for thousands of jobs right here in the US.”
Why do I have a problem with this?
Any astute business person or economist would understand that these foreign manufacturers have NOT created thousands of jobs in Indiana, Texas, Tennessee, Kentucky, etc. but rather they have relocated and displaced thousands of jobs.
They haven’t created any jobs. They’ve just moved some of the jobs from places like Oak Creek, WI, Janesville, WI, Flint, MI, Lansing, MI, etc. and moved some of those jobs from the GM and Ford plants to he Tundra plant in Texas, the Camry plant in Kentucky.
Ignorant people take their advertising for face value and it confirms their decision to purchase a vehicle from a foreign company.
To be honest - I am more upset with GM than these lies. Nothing gets me more upset than seeing another neighbor push their old Blazers, Grand Prix’s and Caravans to the curb and roll home in a new Sienna minivan or Hyundai Sonata. Nice job GM and I used to be a huge supporter of your products. I, too, have had too many expensive repair bills where I don’t think I’ll be back for more.
Good luck with your 5th restructuring in 30 years.