Changing the Perception of GM, One Customer at a Time
By Mark LaNeve
GM Vice President, North American Vehicle Sales, Service and Marketing
Here I am, working “virtually” at home, recovering from hip replacement surgery, paying the price for an old football injury. On TV, I’m watching the action in Washington, listening to speeches based on outdated perceptions that persist among some of our most experienced leaders and media pundits. Apparently, many of them haven’t been into a GM showroom lately, talked to our customers, or driven our vehicles. In some ways, GM and I are both paying the price for some old injuries.
But change is upon us, and the news from J.D. Power today tells us that every GM brand scored above industry average in their latest Sales Satisfaction Index (SSI) Study. We continue to improve, and our dealers are providing the best service to customers in the industry — better than the imports, I might add.
Sure, between 2002 – 2006 General Motors reduced its warranty repairs by 40 percent … then reduced repairs again in 2006 and 2007 by about 14 percent, consecutively. We’re on track to do the same thing in 2008. That’s a testament to our quality. But if you asked a lot of folks today, they’d tell you about the problems they had, and won’t forgive, from plus-20 years past on their 1982 Oldsmobile.
Let’s look at today’s reality. In its launch year, the Chevrolet Malibu led the ultra-competitive midsize segment in the 2008 J.D. Power and Associates Initial Quality Study, which is unprecedented in the industry. The Malibu’s performance far exceeded that of both Honda and Toyota in the same segment. Chevrolet, Cadillac, Pontiac and Buick, which represent 82 percent of the cars and trucks we sell ranked above industry average in the 2008 J.D. Power and Associates Initial Quality Study. You might be surprised to find that all of our eight brands in today’s SSI study – Chevrolet, Buick, Pontiac, GMC, Saturn, Hummer, Saab and Cadillac – ranked above industry average. That’s right, not just our luxury brands, but every brand. I’m not surprised because I know that we have the best dealers in the industry. Most importantly, our customers know it too. Think about this for a moment, for all the worry and purchase anxiety that some customers walk into any dealership with, if it was a GM franchise, they walked out more satisfied than most who went into competing dealerships. To me, that proves we offer vehicles of a better value, delivered by salespeople who demonstrate a commitment to a quality sales and service experience.
To all of our GM dealers who contributed to these great results, good job and keep it up. To everyone in the market looking for a great new car or truck, stop in to your nearest GM dealer and test one of our 20 cars that get 30 mpg or more. Try out the segment-leading Chevrolet Malibu, or take your pick from six new hybrids or many other superb products.
To paraphrase a popular lyric today “what don’t kill me will make me stronger,” so heads-up pundits!
I feel a second-half comeback coming on…
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“Sure, between 2002 – 2006 General Motors reduced its warranty repairs by 40 percent … then reduced repairs again in 2006 and 2007 by about 14 percent, consecutively. We’re on track to do the same thing in 2008. That’s a testament to our quality.”
Could it be the reduction is instead a result of more and more dealers saying, “Sorry, that’s not covered.” Based on my experience, that’s the more likely reason the number of warranty repairs have gone down.
Your testament to real quality should be to expand the length of your warranties and broaden their coverage.
“…test one of our 20 cars that get 30 mpg or more.”
Of these “20 cars that get 30 mpg or more,” how many are really the same car only sporting a different badge? What is the actual number of distinct GM cars that get over 30 mpg? Can you provide a list of the 20 so we can see for ourselves which are re-badges?
General Motors is a poorly led company; poorly operated. The simple fact is that they have been overrun by the competition just as their dwindling loyal customers that cling to the “buy-American” notion will be overrun by a global economy.
Largely at fault- the unions. Initially they served the employees well to ensure their wellfare in an environment where workers were being mistreated. Led by greedy executives, the employees followed example and collectively bargained from a position of greed. As a result, the company pays some employees $90K per year to screw in bolts.
This company is a failing enterprise in need of major overhaul. They should not be bailed out. They need to own the problem and fix it because survival and competition is the nature of business.
JD Power’s Initial Quality Study is a bunch of bunk. I don’t care what goes wrong in the first 90 days of a vehicle’s operation, what I am concerned about is the long-term reliability. Are those piston rods forged or cast? Was the engine designed to last 100,000 miles in order to exceed the warrenty, or was it designed to last 300,000 miles? It’s all the little cost-cutting measures by using slightly lower standards that make the GM vehicles difficult in the long-run.
Just ask the owner of a Chevy Cavalier. (All of my friends who have owned one have mused that there was a reason why it was cheaper than a Honda of comparable size… Because it was CHEAPer.)
GM also keeps talking about how many cars it has that get 30MPG or better, which are re-branding of the same vehicle across different lines. That Chevy Cavalier was also the Pontiac Sunfire, and now I’m sure it is the Cobalt that is the G5. Even so, 30MPG is nothing to be proud of.
35MPG or 40MPG is something to be proud of. In a world where my 1985 CRX routinely gets over 40MPG combined city and highway, and my 2000 Civic HX also gets over 40MPG combined, I can’t help but laugh when 30MPG is touted. So what when my 23 year old car gets better? Are you telling me no technological improvements have been made in over 20 years?
GM must seriously reduce the displacement of the engines in the vehicles, and put in VVT, CVT, and forced induction technologies. There’s no reason an econobox car needs a 1.8L engine, let alone a 2.4L. A 1.5L or a turbocharged 1.3L is more than enough to drive with. Maybe Americans can learn to deal with a car that doesn’t have 130mph as a top speed and goes 0-60mph in 6 seconds.
Mr. Mark,
This is a wonderfull news and kudos to GM. But I still think GM can do better. I agree this is not something that can be done in one day, one week or even in one year. But I think that good decisions produce always good results. Why is it no possible for GM to use GM’s new FWD 2 mode hybrid with a 4 cylinder in the something like the upcoming Chevy Equinix and GMC Terrain? It’s true people who buy SUV think also about towing, but in general when thinking about hybrid, people think most about driving more while using less gas. I applaud all the enegies and the efforts to bring the Volt to the market as soon as possible.
I feel the same way. You are just over burdened with legacy liabilities. I was angered by the way the polititians ripped GM for “years of mis-managment” without recognizing the impact of the union and legacy encumberances. That foreign manufacturers were permitted to build factories with tax incentives and non union labor within this country with no protection for our home grown industries that were encumbered with union labor is appaling. I feel this is another industry that Congress has brought to ruin. Even President Bush made a public statement a while back, something about, “well if US car manufacturers built cars that people wanted to buy”. It just shows how ignorant out polititians really are.
GM is building a great product, keep up the good work.
I love upbeat positive people, the glass is half empty types can take a hike.
Keep posting stuff like this. The entire dog and pony show in DC has been a disgrace. While many mistakes have been made by GM I can honestly say GM management can never be considered as inept as our “leaders” in DC. The questions, the posturing, the misnformation and all the rest was a disgrace. How can people who have no idea how the auto industry works be qualified to roast Big 3 execs? Since when were member of Congress experts on fuel efficiency, quality, dealer satisfaction and implementation of technology? No one in congress presented ANY facts when attacking Wagoner and the rest. All they did is repeat 30 year old stereotypes and then pat themselves on the back by saying “if you had listened to us and embraced CAFE you wouldnt be here”. What does CAFE have to do with the global financial crisis?
The greatest hypocrisy of all is that the same guys who claim to hate GM and gas guzzlers are likely driven around DC in GM produced V8 powered SUVs. When you see coverage of pols in DC they are typically transported by Tahoe or Suburban or Town Car. I have yet to see any Senator riding in a compact car with great mileage. As always our representatives in DC were preaching something they dont actually practice. Furthermore, I bet none of them could quote the mileage of a single Honda or Toyota product in spite of their ranting about import manufacturers offering far more efficient vehicles than the Big 3. If any of those guys had done 10 minutes of research before the hearing they would have realized that aside from the Prius there arent many examples of Japanese product that leads comparable domestic product in fuel efficiency. In crossovers, SUVs, midsize cars and pickups domestic entries (mostly from GM) lead or are within a few percentage points of the class leader.
How ironic is it that GM has the most efficient lineup out of the big 3 and likely a more efficient lineup than Honda or Nissan overall and yet GM got the most flak in DC for being a “dinosaur”? I would have been nice if just one finger pointing politician had cited any facts to back up the assertion that GM doesnt build the fuel efficient vehicles that people want. These people think Toyota makes nothing but Prius’ and GM sells nothing but H2s. A sane person would realize that GM sells FAR more Cobalts, Malibus and Impalas than Hummers but I suppose DC is the wrong place to look if one is hoping for sanity or objectivity.
Mr. LaNeve, blow all the hot air you want. The American people are smart enough to not to believe it and we will ridicule you all the way to bankruptcy in return.
I had a Malibu rental car recently. To even imagine that car is in the same category as a Toyota or Honda is pure comical fantasy. That TRUTH, that REALITY is the reason why you’re arguments about this survey or that one continue to ring hollow – from YouTube (2 star rating for your little propaganda video) all the way to the US Congress. Not to mention the parking lots full of unsold product.
We’re NOT stupid. We actually DRIVE the cars your competitors make. That Malibu had the same plastic feel as always.
There is so much plastic in that car you could melt it and make a McDonald’s playground.
As always everything is ringed with that shiny mirror type chrome plastic. Classy!
The speakers were terrible. The radio controls are the same crappy dials and layout GM has been using for years. That stupid little musical note on the volume button and the menu that is impossible to navigate and the stupid tachometer that doesn’t have a switch next to it to reset.
I could go on, but it felt like the exact same POS Chevy I could have rented 3 years ago, 5 years ago, 7 years ago. Overall It just feels cheap, plastic, tacky.
I couldn’t stand driving it for three days. You could not pay me to buy it.
The giant Chevy logo on the (plastic) steering wheel hub. oh, ok, that’s cool.
The seats lurch forward and backward just as I’d expect. The little (plastic) cap had already fallen of the shift handle.
When I drove that car, after hearing how it was GM’s greatest achievement in years, I mostly felt sorry for the people that think it’s good. I thought about people in Michigan or Wisconsin or wherever.. places where people are unwilling or unable to buy imports… and I thought about how sad it is that they don’t know any better… that they haven’t been able to experience what real quality feels like.
I’m leaving out all the other reasons people like me don’t support GM:
- Your executives who mock the environment (Chairman Bob Lutz said earlier this year “global warming is a total crock of sh**”) and insulted women who drive Priuses (”hairy legs”).
- Your executives who feel justified taking $20,000 private flights on trips to DC to ask for taxpayer money.
- HUMMER. Enough said.
- Suing California in 2006 because they dared to demand higher fuel economy. Listen sir, 30 MPG is nothing to be proud of. And your “hybrids” I suppose are technically hybrid but they hardly count as such when they’re getting 20 MPG less than what a Prius gets. Oh, thats right, another one of your senior execs called the Prius “a bad business decision.”
I guess Toyota and all those women with hairy legs that make Bob Lutz laugh so hard will be vindicated the day you file for Chapter 11…. and you can keep the Malibu. That car sucks.
Excellent commentary, Mr. LaNeve. Congratulations to GM on the study results, and may your recovery from surgery be quick. That “second half” you spoke of is looking better as I write this, as word comes today from Washington that a “compromise agreement” has been reached on aiding the domestic auto industry.
The thing that strikes me most from these recent tribulations is the sheer depth of ire and hostility toward the domestic industry that has come from many website commenters, columnists, pundits, and yes even congress people. It borders on a pathological sickness. I really don’t know what GM, Ford, and Chrysler need to do about it beyond continuing to strive for great quality and exciting products, but one wonders if the American public needs more targeted treatment.
GM has certainly made mistakes in the past, but none of those could possibly explain, in and of themselves, this level of hatred from some people. I’m someone who believe GM was never, ever as bad as many would like to believe, having followed the industry and its products for about 40 years. It’s like people picture in their minds a rusty 1982 Chevy Celebrity with fluids leaking out on the domestic side, and a 2008 Honda Accord on the other side, now compare and contrast! I could go on and on, since the media has been so full of ridiculous statements lately, but the bottom line is that GM’s battle to win the hearts and minds of America clearly needs a better effort, and a lot more attention and resources than it has applied to date..
Best of luck and fortune, GM.
I work for a Chevy dealer. I am in the aprts dept.I have been doing this since 1986. This is the worst I have ever sen the business. Dealers are closing up….fast……4 this month in our area. I am worried we may out of a job. We need to get leasing back…Toyota is killing us now as they offer 0% financing and they lease.I see Congress wants some sort of game plan from GM on how they will spend the money and restructure. Guys,I dont know what you need to do but you need to come up with something fast. Downsize where ever you need to. That big building in Detroit probably waaaaaay too many people making waaaaaay to much money. Put someone else in charge,someone with vision.
I still believe in GM and I will always drive GM until I am forced not to. I hope it does not come down to that.
Please stop rebadging cars…..it does not work. I never understood why you guys chose to compete against yourselves. We dont need 4 of the same car/truck. I wont list the examples,I am sure you know which ones they are.
Start doing some heavy marketing to get the non believers out there into our showrooms again.
Get rid of some divisions….sucks……but Hummer??? Novelty is over….dump it. They are not selling.
Saab?? Dump it…….. GMC…..I would like to see it go and merge the higher end GMC packages offered in the Chevy line. The trucks are identical anyway…….if someone wants a Denali package,simply offer it as a package in the Silverado. Its not rocket science. GMC and Chevy compete against each other….does that not seem counterproductive to you??? Caddy trucks??? Just make the cars….no one is into buying a $70,000 + Escalade anymore.
Saturn may have to go too. Pontiac may have to go also. Chevy and Caddy seem to be the most popular lines anyway. You have to show Congress something or else we will all be out of a job.
I have often wondered why Toyota was able to pull 48-52 mpg out of a Prius and GM cant make something that can compete with that? The Prius is butt ugly……..but I guess the owners dont care.
The Malibu Hybrid is ok…..but just ok….it gets 34 mpg…..you could not get more out of that? That should be able to do 40-42 mpg. The Hybrid tahoe gets good mileage for its size but at $55,000….they are not going to sell. We have a tough time selling them. I have seen only ONE hybrid malibu sold at my dealer and virtually none on the road. I cant tell you how many Prius I see on the road daily.
Dont get me wrong,I am a GM guy and I love my HHR…….BUT you guys need to do some serious soul seraching and come up with a convincing game plan for these guys in Washington or we are all going to be unemployed.
Why do you people act like the IQS is relevant to anything? If something goes wrong with the car in the first 90 days, I get a free repair (and, with the brand I currently buy, a loaner, so I can go about my business while they fix it). Problems in the first 90 days – or even 3 years – are no big deal. Unless, of course, they don’t get resolved on the first trip in.
How does the car perform after the warranty runs out? That’s what costs me money. The brand I own now is remarkably trouble-free at 8 years and 105K miles (that’s the average of 3 vehicles, two 2000’s and one 2001).
By the way, the people I talk to who are holding a grudge against GM aren’t holding that grudge because of a 1982 Oldsmobile… they’re holding a grudge because of cars built MUCH more recently than that and, in some cases, newer than the cars I’m driving.
By the way, are you seeing a reduction in warranty costs, in part, because dealers increasingly “can’t reproduce the problem” until after the warranty runs out?
Mark: Get well soon!!
GM: Get off your butt. Yes, I’m aware of the strides you’ve made over the past 8 years, but there is still a long way to go. As good as your new products have been, your marketing has been at an all time low. The communication of your core message to the public has been terrible. The focus needs to be on people and products. Humanize GM, show the people who make the vehicles, show the interior of the Malibu side-by-side with the Camry, show the strides you’ve made in design and execution. The marketing has to be about a lot more than just the latest incentive sale as, let’s face it, GM has a lot more baggage to overcome with customers.
In addition to the message, GM must also make more difficult decisions if it is to survive.
1. Kill unnecessary and overlapping products.
a) The Malibu, G6, Aura, and new LaCrosse all ride on the same platform and compete for the same business. Can GM afford all 4? No – kill the G6 and allow the new LaCrosse (which looks fabulous) to move a little more up-market. The G6 simply doesn’t fit with Pontiac’s brand dynamics and image, and it’s become a rental fleet queen in recent years. Same deal with the G3 – Pontiac already has the Vibe and the G3 is based off of a bad vehicle to begin with (the Aveo). Limit Pontiac to near-luxury RWD cars (it is the excitement division), Buick to FWD near luxury, and GMC to near-luxury trucks and SUVs. These are together in a sales channel, and there shouldn’t be cross-shopping of products within the dealership.
b) Kill all of the mid-size SUVs immediately. Don’t advertise them, just shut the plants (which you’re doing in December) and make the minimum of spare parts. These things are tanking faster than the Titanic.
2. Accelerate the Cruze launch. If the rest of the world gets it in Q1 2009, then the US needs it then too. You simply cannot afford from a public relations standpoint to put America last with a top-level fuel efficient offering. You’re on Capitol Hill begging for money, promise to move up the product launch with some of those funds. It’s a win-win for GM.
3. Push the Malibu and Saturn Aura harder. Marketing has slackened off for GM, but Toyota, Honda, and Nissan are putting out an absolute barrage. It shows given that you’re losing market share disproportionately to the overall decline for the industry when you subtract out fleet sales.
4. You absolutely HAVE TO clean up the dealer body. Start pulling franchises for cause. There are a ton of crooked dealers out there who are killing GM’s image and doing irreparable damage to the individual brands. The have terrible sales staffs, poor customer service, a dishonest service department (being used as a scam machine/profit generator), and an overall negative atmosphere. Now is the time to be aggressive with this garbage in order to help ensure that the quality dealers. Secret shop them, log past performance issues, file grievances with the NADA….whatever you have to do, but FIX IT ASAP.
That’s great to see GM do so well in initial quality. I knew your recalls and warranty work were way down, as I had only had one recall on my 2004 Saturn and one for my 2006 Chevy HHR. I’ve heard some Honda owners have had more warranty work than I’ve had with my Chevy. Nice job. I’ve also has a look at the new Malibu, and Aura. Nice cars that seem to be put together quite well. The pictures of the Cruze also seem to indicate that GM is finally getting serious about the small to mid size car category. I’m glad to hear that. Now, with all of these improvements, could someone at GM figure out how to federalize one of the Chevy triplets and have it replace the Aveo? If you can do it to two of them, then Pontiac can have one as it’s new G3. If you can do it to all three, then Saturn could have one to slot in under the Astra.
Now you need to put some exciting styling in everything you make and give the best warrenty by a lot on the market. I mean bumper to bumper not just powertrain.
Most people wont even look at your vehicles so you have got to do something special to get thier attention. Hey it worked for hundia and kia. Oh did I mention you need to give them all of this stuff at a much lower price.
I know it will hurt your balance book in the short run but we are looking for long term survival. Desperate times mean desperate measures. You need to get the products moving not worry about making a ton of money on each product.
If the people can who purchase your products can brag to their friends and nebors that they brought a better car or truck at a better price will go a long way in improving your image. With an improved image come improved interest and improved sales.
As a Hummer owner I could not be more happy and pleased with my vehicle and the ownership experience. Hummer owners are more satisfied than Lexus, Mercedes, Infiniti, any Japanese brand, any GM brand. Only Jaguar scored a single point higher. Go figure, a luxury brand versus an off road brand that costs considerably less.
The fact that EVERY GM brand did better than Toyota, and better than average speaks volumes for GM.
But you don’t have to tell Hummer’s #1 fan or GM’s #1 fan. I have been fighting for Hummers existence under the GM umbrella with every stroke of the key ever since the GM blogg existed as well as Buick and Pontiac’s survival.
And you bet with all my heart I will continue to fight for every GM brand, and the customers as well, have spoken. They like your products better.
And who knows better than the customers?
Congratulations GM, congratulations Hummer, you will always be #1 in my book.
Still can’t believed I leased that Hummer for less than the cost of a used, beat up, broken Civic that has lower customer satisfaction I might add and doesn’t stand a chance in the snow.
I know, that vehicle is my moms.
Keep telling yourself that, while your boss travels on the corporate jet to beg lawmakers for a federal bail out saying we are running out of money. Just a thought for Rick Waggoner, next time, try car pooling to Washington, it’ll give you a chance to try your own products.
This is, almost word for word, the same corporate propaganda BS I’ve heard since the late ’70s, while GM quality was sinking visibly, year by year, probably hit its lowest point in the mid- 80s (likely because it couldn’t possibly have gotten any worse). The damage done by Roger Smith to GM’s reputation is incalculable, and can’t be overcome for many more years, maybe decades, because there are still a number of those horrible ’80s relics on the road (because a lot of people can’t afford anything but a smoking, 20-year old, $500 Chevy with a dragging tailpipe held in place with coathanger wire).
There is no “quick fix” to GM’s reputation for poor quality, it’s going to take lots of time that, apparently, you don’t have.
I can’t believe that all 3 “Big 3″ CEOs are so clueless, so out of touch, so unaware of their horrible public image that they would travel to a “begging session” in such lavish style.
Guess what, guys? If this results in a government-supervised takeover, the jets will be GONE and you may not get that “golden parachute.”
Has any of this sunk in yet?
Not a GM hater, I have 3 GM vehicles in my driveway.
Considering the economy, the American auto companies have been doing a great job.
Like the new consolidated Pontiac Buick GMC dealerships. Now let’s get some more style into them. The Soltice and the G6 are great. The powertrains are great, the ecotec 4 is very smooth and especially like the 5.3 V-8. GM had a great engine with the 4.9 V-8.
GM could offer its classic model names at the consolidated dealerships, but call the dealerships a unified name like NorthStar Motors by GM. I’d make the brands themselves into individual models instead of brands if we have to limit the line-up, and offer them on a rotating basis until the economy improved or sales warranted. This would satisfy those who are clammering for more consolidated offerings and excite the GM customer base at the same time.
For example, offer the Toronado for a model, then next time restyle it and offer it as the Riviera. That way GM enthusiast are constantly lured to the showrooms to see what is new and exciting.
The Pontiac Firebird bandit has many excited. Is it coming? It would really energize the youth market.
I’ve said before that a small V-8 would also engergize the GM base. It would be better to have the ecotec 4 sedans and a small 4.0 V-8 rather than three V-6 offerings.
The Buick LaCrosse and LaCrosse Super are a pleasure to drive. The headlights are very nice, but the tail lights are really not there. Simiarly the Buick Lucernce and Lucernce Super are a nice cars, but the headlights are too big for the tail lights. These things hurt sales.
GM look at offering frequent trader points (like frequent flier miles) and GM credit card points toward OnStar renewal.
As a marketing guy you must realize that GM is viewed as an impenetrable fortress who refuse to innovate. The one bright spot is this blog which I can’t believe GM allows and hope they read. Anyway, it is comparable to Microsoft who just keeps loosing out to Google or Apple. One day the walls will fall when some younger management comes to power. People like me always view the foreign brands as the must haves and especially German cars if you can afford them. I can’t understand why you don’t see the current wave of boutique marketing. Maybe it’s ok to have a few brands but just offer laser focused non-overlapping within each. Think VW, Audi, Porsche or BMW, Mini, Rolls etc.
I can really see Saab sold in it’s own little showroom boutique on the same complex as a Cadillac boutique. Have you seen the small iconic VW showrooms lately. Saab will have to get new models.
Chevy is a full spectrum brand so it can stand alone. like Toyota. As far as a youth brand – maybe you could create one. Saturn is just too marred in image along with Pontiac, and Buick. I do think the Buick could be a lexus competitor if you actually had an IS ES and Coupe.
I just don’t know what it will take to make GM lean and exciting again and resent having the government involved.
Why aren’t you guys going to the Sovereign Wealth Funds to get some short term money? The gulf states are 100% dependent on the car, so can’t they take some of their bajillions to support the industry? Bring back some sand and tell congress where they can pound it.
Oh, and tell Shelby you flew to Saudi in your G6
Perhaps Mr. Waggoner should drive to Washington along with a few thousand other people.
I’m repeatedly seeing an awful lot of anger, irritation, and an attitude that well- GM, Ford, and Chrysler DESERVE what they get. But perhaps some of you who think or say these things should look at this from a raw, economic perspective. Regardless of whether you like their cars or not, the fact is that if the big three go under, there will be an enormous impact on what is the most fragile economy since the days of FDR. I’m not trying to intentionally scare anyone, but these are the facts.
In a typical recession, the DOW tends to go down 10-20%. At last look, we’re pushing 35-40%. In other words, this is extremely serious. I’m sure some of you are somewhat savvy when it comes to economics. If so, then you’re undoubtedly aware that market performance relies heavily on market perceptions and trader sentiment. Of those who trade, certain important economic factors are looked at from day to day. Things like consumer confidence, interest rates, the price of crude and the strength of the dollar are all considerations. One of the biggest in unemployment. As it is now, we’re sitting at around 6.5%. Anything over 6% is deemed unhealthy.
So just imagine for just a minute that the Big Three go under. The number of people affected is anything from half a million to over 3 million people being affected almost immediately. So let’s just imagine for a minute that this occurs. The obvious impact is that there are suddenly s million people without jobs, who can’t afford their mortgages, eating out, and very likely some of the products or services that you yourself either produce or offer.
But there’s another side of this that I seldom hear people seem to connect with. If 3 million people suddenly become unemployed, the reaction on Wall Street would be outright disastrous. This would grossly inflate the unemployment numbers, drive market sentiment to the basement, and likely erode the DOW even more. Additionally, all those people without jobs are going to seek new jobs, and with the extra competition in their various fields- such as sales, engineering, marketing, graphic design, and so on, this would also drive down wages to an extent.
Perhaps I sound like one of the GM execs. But if these automakers fail, perhaps you who hate them for either legitimate or non-legitimate reasons might feel somewhat vindicated, but the impact of their failure will potentially have an outright devastating impact on our economy as a whole.
I can only hope that the morons running the circus on Capital Hill understand this.
Hey Mark,
Great post! I love to see the fighting spirit still kicking in GM! Did we give up when the Germans bombed Pearl Harbor?!?! (Pearl Harbor?) ha ha
We need to send the game into overtime and score one FTW!
Nice Metallica reference, that is the attitude GM needs… similar circumstances as well… Metallica was the greatest Heavy Metal band and all they did was put out crap for the last two decades, but their new album has brought them back to their former butt kicking glory…. now it is your turn!! Your new products are all great and people need to listen to your new tracks…
I know it will all work out and GM will return to its former glory! People need to turn their negativity around. It is not that hard if they get a chance to drive a new Malibu, CTS, or the coming Camaro.
I still say too many brands, too many dealers, and too much product overlap. I hope the plan you give the government includes reductions in all of these areas while pumping up the volume on the the core products.
Good luck and God speed! …and what don’t kill ya make ya more strong!!
Mark,
The big 3 CEOs testimony in congress did little to assure me they’d do the right thing with any – ANY – kind of loan from the government. Untill watching that, I held out beyond hope that the industry including GM should be helped by our govt. But now, I’ve been convinced the best thing for you to do is file chapt. 11. Management at all levels is more incompetent than I thought except for Bob Lutz, because he has the right mind for the product. But from a business perspective, managing the finances of the company seems to be a big black hole in outerspace. You can blame the economy taking a dump, you can blame Americans for turning their backs after their experience with a 1982 Olds Delta 88 350 diesel, when in fact people were having just as many big problems with 1990s-era Cavaliers and Malibus and I don’t recall GM’s CEO begging for money in congress during the 1930s when things were MUCH worse than they are today.
I’m sorry, but I am now convinced years of missmanaging funds and poor business decisions do not warrant help from the government. Figure your problems out on your own. It should have never gottent to this point.
Mark,
You are the Spin Master. GM’s greatest problem is incompetant and arrogant senior management. GM’s greatest asset is it’s employees and its retail dealers.
You just stated that GM’s dealers are the best and a reason for the high satisfaction scores.
So why are you draining cash out of your dealers by delaying paying to them the incentive monies that they forward on your behalf. This is a huge cash drain out of the dealerships. GM does not need this cash nearly as much as the small town dealerships.
Mark — be honest with people and treat them like you would like to be treated.
Mark,
I really hope you listen to what Charles above has said about the Malibu. The fact of the matter is that Bo and his band of thieves are killing your product lines. They are not judged by the result of what they buy, only whether they have reduced cost. That is NOT teamwork Mark, and is not helping GM on the showroom floor. The continued cheapness that is still so blatantly evident in many GM products puts you in a different class from the competition. VW has class leading interiors – does the Malibu have a better interior than the Passat? Why is the CTS so successful? It’s because Cadillac stepped up and didn’t take a back seat to the cost pressures. That is one fine car, and the sales success is your reward. Would you have had the same market enthusiasm if Cadillac caved in to the build it cheap approach? No way. Whay aren’t these same lessons applied across the board? Controlling cost is important, but when the buyers are allowed to make decisions that negatively impact performance, reliability and sales, they have gone too far. Why does this continue to be allowed to happen?
Until everybody at GM works together to improve sales, and to design, engineer and build the best quality in the industry, you will continue to lose market share. Initial quality is not long term reliability. These are the changes that are badly needed to recapture the hearts and minds of the buying public- that is if you can even survive to have ANY market share.
Mr. LaNeve,
It is good to hear that you are recovering well. The reason why so many customers still dislike GM for their wrong doings in the 80s and 90s is because they feel that they were cheated on by a company they were loyal to. At the GM failed on its promises to provide its customers with world class Products. Rarely do people forgive when they’ve been cheated on. In GM’s case, they feel that they cannot trust GM no matter how good they become because nothing guarantees them they won’t be cheated on again. They turn to companies like Toyota, Honda and BMW, although not perfect, have a much better record at producing world class cars and consistently delivering the kind of products that its loyal costumers expect. They understand the value of their customers base and do what they can to provide the best possible products without compromises. The layoffs and the UAW issues of the last few years have also shown customers that GM cannot manage its workforce properly and that the UAW is a selfish organization that no longer stands for what it did in the 40s and 50s.
GM still doesn’t fully deliver on its promises. A few years back it said that it wanted to turn Pontiac into a more affordable BMW alternative. With the exception of the Solstice and the G8 (itself not a Pontiac but a re-badged Holden Commodore), the G6, G5, Vibe and Torrent are mediocre and have non of the attributes a BMW has in any way or form. And the G3 simply says that Pontiac is no better than Kia, which itself is making some attractive products. GM also said it wanted to turn Buick into a Lexus like brand. The Lucerne and current LaCrosse are no better than the Camry and Avalon. The Enclave and the upcoming LaCrosse are a step in the right direction, but its not enough to label Buick as a brand on par with Lexus. GM also said that it wanted to make Cadillac the “Standard of the World” again. The CTS, Escalade and SRX lineups are certainly world class, but the current STS, DTS, BLS and XLR, though attractive, are not world class and certainly not standard of the world.
I hope that the recent bailout news will force GM and the UAW to restructure. I hope they do so for the sake of America and its people. The American people want to be proud of their companies and products. They want to support the Detroit Three, but they cannot do so if Detroit cannot deliver on its promises.
No money. No subsidies. Never.
The day of reckoning has arrived. Why should Detroit be bailed out because of it’s antiquated setup of paying employees to sit home and be paid 95% of their salary. Why should Detroit get bailed out for having multiple models off the same chassis? Lets see: G6, Malibu, Aura,; Equinox, Traverse, Acadia, Enclave; Yukon, Escalade, Tahoe. Volume is the name of the game but you don’t have enough customers interested to maintain the volume.
Lets boil it down to the coolness factor. There is nothing cool about driving most American iron. All manufacturers have duds (Infiniti Q45, Acura RL), but GM seems to have a lot of them.
Based upon reviews the build quality is there but the passion and follow through on visual design and image is still lacking. Who in their right mind would pick a Buick Lacrosse over hmmm lets say a 2009 Nissan Maxima or Acura TL? Kill the legacy brands (Buick, possibly Pontiac), it’s stupid to maintain the dealer networks for designs built on out of date thinking.
Pontiac I think has a chance but only if it lives up to the hype of ‘driving excitement’ – 2 models (G8 and Solstice) do not make a brand. What happened to a replacement for the GTO? The Gran Prix-could have been a contender in likes of Acura TL. Let’s see- I just saw a pic of the 2009 G6. What a joke!!!! The update looks like it was done for the sake of saying it was updated. The front end speaks rental car fleet-the passion in the design is nil. Where is the excitement in the engineering?
Whoever is working over at Cadillac needs to work their mojo and bring their whole approach to automotive design and engineering over to the rest of GM.
Chevy-leave it as is. It’s solid and well known.
GMC-Why when Chevy trucks exist?
Saturn? Still trying to figure out what the brand’s message is about and what it does differently except for it’s pricing policy. Seems that its models could be split up and shared between Chevy and Pontiac.
On another note, I crack up at people who come on here and start rattling off about what models should have what engine paired with this and that transmission and what not. Sounds more like a personal model request than what is feasible in the long-term.
You state “GM sold more vehicles than any other manufacturer in 2007″ if this is true, why are you broke?
Ben Dewberry,
“Of these “20 cars that get 30 mpg or more,” how many are really the same car only sporting a different badge? What is the actual number of distinct GM cars that get over 30 mpg? Can you provide a list of the 20 so we can see for ourselves which are re-badges?”
Would that be like the Toyota Avalon, Camry, and Lexus EX? Or the Malibu, G6, and Aura? Maybe the Honda Accord and Acura RL? I mean while we are on “rebadges” you can’t accuse GM of doing the same thing that Toyota and Honda are doing and that all vehicle companies do to some degree.
On December 2nd Rick should drive the VOLT to Washington. Lets show them what we can do!
This is what I think about GM.
i) I believe that your recent vehicles are not bad, but the perception is definitely against the company, the brands, and the individual vehicles is not positive. It is actually quite atrocious, and this is across both sides of the political divide (go to any political forum, and you’ll notice that for the most part, both Democrats and Republicans seem to have a very sticky negative perception of the vehicles).
ii) Re-badging has led to several of your brands actually cannibalising on each other! It made sense at one point, particularly from a cost-efficacy perspective, however in the current market they are eating each other. It would be better to hone and streamline the brands/badges, and have a ‘best-of’ instead of a myriad of offerings that are more or less the same.
iii) Now, let’s go to the sticky issue …the elephant in the room. The UAW. Now, I understand that the union has really been important when it comes to better paying jobs for its members, but (again) go to any political forum (red or blue) and see the perception that runs when it comes to union members. It is so negative it probably couldn’t go down any further. The UAW has been made into an even bigger boogeyman that any single other anti-GM meme, including bad management and historical issues with vehicles in the 70s and 80s. Things like Job Banks (the average American who is not in the UAW will obviously have issues with paying people to fill out crossword puzzles and watch DVDs), as well as the UAW refusing concessions, are not going down well. Now, someone may come and say what I have posted is not the case ….but just like the ÚAW workers make 73 bucks an hour’ meme, that is THE PERCEPTION in the public. It is a perception that is killing you people. I saw a very interesting cartoon on one political forum that had GM looking like an old emaciated man who is in a hospital bed and looking like he is on the verge of drawing his last breath, and a doctor is rushing to him carrying a big bag of blood marked ‘Type Bailout.’ However, next to the old dying man, is a vampire that has the name tag ÚAW’ literally salivating at the thought of more blood coursing through the old man. That is the way the public views the UAW, and pretending it is not the case will not make it go away.
iv) Stop going to DC using private jets. Sure, it is a silly point that was brought up, but right now you are dealing with perception. Again, acting like it does not matter is foolish.
v) Have an aggressive PR strategy. You’ve let others define you ….define yourselves. Compare yourselves with Toyota …even when they implement a major recall, people still think they make the best vehicles. You people come out with nice cars that win surveys, but you are still seen as making crap. Again …if you ignore perception, it will NOT ignore you.
vi) Listen to the public. Not just to UAW workers who will say what you want to hear, but to the public.
vii) Some of your dealers are crap. The experience of going to a GM dealer is not the same as going to an import dealer.
viii) Realize that the import manufaturers are becoming more and more Ámerican by the day. That is cutting a major component of one of your only, if not THE only, competitive advantage that you have left. That you are American built. They have been undercutting you in your own territory, and inch by inch gaining ground. Started with small cars, then medium vehicles, then luxury vehicles …then trucks. Slowly yes, but surely. Now they are even been PERCEIVED (that word again) as American manufacturers in BOTH Democrat and Republican political forums (useful as a means of feeling the pulse of the general public). Again, you can decide to ignore this, but at risk to yourselves.
Anyways ….just my thoughts. Take them as they are, not decide not to. However, the challenge facing you is quite large.
Oh, before I forget …one more point:
People need to know what your plans are if you get the bailout. My concerns are as follows – sure, let’s say you get the money. Then what? People are not going to be buying cars due to a mix of the bad economy, negative consumer sentiment, and the sterilization of credit. Thus demand will remain low. Secondly, there is an over-supply right now in the market, leading to glut. Third, the legacy costs borne by GM are huge (your balance sheet is around US$ 60 billion in the negative). If you get a couple billion dollars …heck, even 25 billion ….how is that going to help apart from post-poning the demise? Is it throwing good money down the drain? These are questions that, maybe, to management seem easy and straightforward, but that the average but thinking civilian is really wondering about. You can decide to ignore them, but then it seems as if you just want the money but have no real viable long-term plan. Sure, the Volt is coming out, there are nice new offerings in the pipe-line, but demand is down, credit is harder to come buy, negative sentiment is running amok, imports are ever popular, and legacy costs get higher by the day ……how are those going to be tackled by a new hybrid?
We’re getting the Malibu in the UK shortly (as the Vauxhall Insignia). It’s a massive improvement over the outgoing Vectra and an achievement of which GM should be proud. It’s all about the Product guys.
IN RESPONSE TO Charles :
Are you serious?? The Malibu you drove was a 2008?? In all honesty,you would be the first person I have ever heard bash this car. We have sold alot at our dealer and when the customers come back for an oil change,we ask how they like it and they all rave about it. I dont get your post at all…..maybe because it was a rental? Maybe people before you beat on it a bit? You actually think the interior is crap compared to a Camry??? Hmmmmmm…….you need to check again…..
Hummer ?? Agree with you 100%. The novelty has worn off.
About the corporate jets…….I agreed when I first heard about it…..but then after thinking…….if it was used for business purposes,then there is nothing wrong with it.Thats what its for. Yes,maybe they should have thought about how it would look but they were probably just doing what any CEO would normally do. Do they abuse it for their own good? Probably…..but what CEO in any company does not abuse perks?? Lets be realistic here. Is it much different than these Washington people being chauffered around in Tahoes/Suburbans??? Think they all fly commercial?? If the the CEO of Toyota was coming here,think he would fly commercial?? No. Congress was looking to hang these three before the meeting even started.You really think our so called D.C. leaders are any better at running things?? Look how great a leader Bush turned out to be……
The other comments I cant comment on because I dont know about them.
“…the Chevrolet Malibu led the ultra-competitive midsize segment in the 2008 J.D. Power and Associates Initial Quality Study.”
Mr. La Neve,
With all due respect, IQS means little. If the quality isn’t there at the start I won’t be buying it anyway. This is the 21st century and all car companies have the capability to push a car off the production line that looks nice. (Except for perhaps the recently demised Yugo.)
The real questions are durability, reliability, dealer support, and what it will cost to repair the car after the warranty expires.
A consistent weak point that no one at at GM seems willing to address are deficiencies in your dealer network. Poor dealers hurt your image as much (or more) than the quality of your cars ~ and there doesn’t seem to be much you can (or are willing to) do about it.
Toyota and Honda put a great emphasis on customer satisfaction at their dealers. Why can’t GM do the same?
It’s great that the newer cars are really competitive, both in terms of form, function, price and quality. It’s about time.
Imagine how much better they’d be if you didn’t have to spread your efforts across 8 different brands. I realize that the dealer franchise laws make it prohibitively expensive to get rid of a brand, but unless that can somehow occur I just don’t see how GM can ever reach it’s full potential.
I read all of this and boy there are tons of good stuff here. Some more level headed than others. Well I’m one of the others I guess. Back in 2000 I bought my last GM. Took it in for warranty work at 10K on the clock and was denied. I took the case up a level to the district service rep. He listened to my problem, looked at the car, then turned around and looked me square in the eye and called me a liar. I was absolutely shocked.
That warranty work denial was only the beginning of several problems which were all denied. Somehow all my fault. The Cat converter was denied because I put new plug wires on the car only to get a letter 2 years later acknowledging there indeed was a problem. (I did get my money back, thanks I should say)
I am more to agree that the reduction in warranty is simply denial, not better quality. I would be kidding myself though not to agree GM is better at it however in the just last few years.
I am not going back to this type of service. Period. You made your bed now sleep in it.
General Motors can’t afford to have a program in place converting “one customer at a time.” The bailout for the U.S. auto industry is contingent upon all three domestic manufacturers presenting the case to the American public for buying D3 cars. The ultimate bailout is is simply purchasing D3 products. It is obvious from the presentation by the D3 in front of Congress that these companies and this U.S. industry needs a dynamic, passionate spokesperson. It needs to find someone whom the American public trusts and who can present a rational approach to saving the companies by purchasing the products. If the American public continues to turn its back on D3 products, then the bailout is a waste of time and resources. It is inexcusable for our legislators to be driving foreign made automobiles and to then talk about bailout issues. No one in the state of Michigan should be driving a transplant or a foreign-manufactured vehicle. It is important for the D3 manufacturers to stress this fact.
Sincerely,
Ron Cocquyt, Business Coach, Hylander Management LLC
David said: “I mean while we are on “rebadges” you can’t accuse GM of doing the same thing that Toyota and Honda are doing and that all vehicle companies do to some degree.”
I agree, they all do it. But this is a GM blog, so I addressed it to GM and would like to see GM’s answer.
Of the 20 cars GM claims get more than 30 mpg, how many are actually distinctly different cars as opposed to re-badges they are counting twice, or more?
It’s a pretty simple question. If this were a Toyota or Honda blog, I’d be asking the same question of them.
“GMC-Why when Chevy trucks exist?”
About 30 years ago my Dad explained it to me this way when I asked him the same question:
“GMC trucks exist so that Pontiac, Oldsmobile (then), and Buick can sell trucks too.”
I guess it wouldn’t be fitting for a Pontiac or Buick dealer to be selling a Chevy truck, or to have to tell a possible customer who wanted a truck, “Sorry, you have to go down the road to the Chevy dealer.”
It was (and is) a marketing gimmick.
Nobody denies the fact that we have made some blunders. We lost our way in the eighties and we stumbled through the nineties. But this company is 100 years old. Along with Ford and Chrysler, our cars and trucks have been the lion’s share of choices for parades, car shows, cruises, farming, construction, contractors, movies, children’s’ automotive dreams, and adults’ automotive passions. From our earliest models of class and elegance to wartime transformations, we’ve built history. From dependency on oil to breakthrough technologies in alternative fuels, we are building the present. With a competitive global business model in place, a workforce of passionate men and woman, and seemingly endless opportunities to explore new technologies, I know we can build the future!
GM biggest problem is perception. We have lots of car makes 30mpg+ plus but they are always overshadowed by all the Big trucks and SUV in the showroom. Remember JD power only gives ythe snapshot of people feedback who own GM vehicles. How about those customer who never try GM vehicle and 90% upper manangement dont understand mindset of those customers who prefer imports over GM.
We need to have more agreesive PR to media elite in NYC and LA talks in favor of us. I think our main problem is the Messanger not the message. We need to start over with new direction with new idea from Product protfolio to product exucution. Too many of our upper management still living in bubble and not connected to ipod and growing immigrant generation.
The current business model will not work and result shows 70% american are not buying our plan.
We need room more diverse idea to florish and reward . GM need more indepdent thinker instead of just followers. GM should not run like military organisation.
GM is a great organization but lost its way but still have time to turnaround.
Mark, Hope you get well soon. We need you.
Even though our data suggests our dealers are among the best, I still have reservations about the overall dealership experience, salesperson product knowledge and service experience, in some dealerships. The “Face of GM” needs to be very knowledgeable, in detail, about our products, and our competitors. Our service folks need to explain what they are going to do, before you take a product in for ” an oil change” and end up with a $600.00 worth of warranty. If they are doing a complete inspection and are required to fix what they deem wrong, then tell the customer up front. The customer may not have scheduled the time it takes for the extra repairs, etc.
I’m sure our folks have visited plenty of Lexus dealerships to experience their sales and service. I do recall they were not ranked as high as some of our brands, but I don’t know what intangeables were missing.
We need the right people in the right places with the tools to combat the “image” crisis we have. GM has made great improvements as you stated, but fixing the “image” is our nemesis.
In addition to promoting all of the current good news about our products, promoting what GM has done for our country over the last 60- 70 years may be a way to generate some community and understanding about how GM has contributed to this countries wealth and opportunity. GM has “come to the rescue” a number of times during financial crisis and during wartimes ( Taking on health care burden when the gov’t struggled, converting plants to defend our nation, 0% financing after 9/11. I’m sure there are plenty of examples. How dare our lawmakers forget what GM has done for this nation. Young people have no idea how important a role GM has played in our freedom and opportunity.
Where does a significant amount of the technology being developed in our country ( both East Coast and West Coast ) end up? In our vehicles. We drive technology more than most every other industry, and we buy it….
Best Wishes, Rick
Mark – GM needs to learn a lesson from the Japanese – we need to define who are friends are – the Midwest, Suppliers like Lear who GM is married to, retirees and employees and then treat them like friends not liabilities. GM tries to fight a 5 front war with everone – UAW, Suppliers, the Press, Employees, retirees. Define who your friends and family are tell them you need their help and mean it – trying to increase market share on the coasts is not gonna happen – move parts making business back to the midwest so people who actually will buy GM have money to buy a truck. The days are long gone where GM can have a car or truck for everyone – focus on rebuilding your birthplace, Michigan, Ohio, NY, Indiana, Wisconsin quit buying parts from China and Mexico – bring back the jobs and sales will follow – there is alot of resentment that GM raps itself in the flag then is moving everthing overseas…..deeds not words my man.
I hope you’re right about that 2nd half comeback. I plan on buying a Camaro SS next year and I would be very very disappointed if it wasn’t available due to cutbacks of some sort.
I understand that I am a “niche” customer and don’t represent the demographic that will turn things around for GM. I am truly grateful that you have targeted my desires, but I can’t help noticing that you seem to be ignoring the demographic that could really make a difference.
There are a LOT of potential car buyers out there who don’t place the J.D. Power metrics at the top of their priority list. They don’t care about “green” technologies either. They care about ONE thing. The cost of the car. They are the Walmart shoppers of the world. They don’t want leather seats, tilt steering wheel, 8 speaker stereos, traction control, OnStar, remote start, etc. They want a new car, with a warranty, for under $10K. GM has the capacity to compete effectively in this market. In fact, GM is positioned better than any other manufacturer to compete in this market.
Inexpensive cars will be “the new black”. Early bird gets the worm…
It is clear that Charles comments about the rented Malibu he drove were about the previous model. The new Malibu is completely different. He needs to rent from better agencies… But the comments are typical – people who “know” all the facts, but in fact haven’t taken the time to realize that things have changed.
The GM that everyone wants to see die, did in fact die many years ago. It doesn’t exist anymore. Anybody that has actually looked around Michigan, or looked at our newest vehicles could see that.
The entire sales model needs revamping! Endless variations of the same basic car, suppliers as the enemy, forcing unwanted cars on dealers, domestics can do better.
How about dealerships laser focused on the customer experience. Central GM, Ford, Chrysler dealerships selling limited models and a few cars available to consider and test drive, the bulk staged in a central lot close to rail delivery yards, available by porter the same day. Limited equipment packages based on buyers preference.
These domestics need to concentrate efforts on a few great innovateive well styled products, eliminate the cross products and brands.
perception is everything….start at the top… and get rid of the high pay 28 millionCEO’s Jets and get down and dirty fast…..workers that don’t work…even if its one worker ..The unions have to get real too The public has been doing a slow burn for a very long time not to mention health care at no cost bettter get in line with the down sizing of American we’re in for a long ride…we don’t care what you have done in the pass show me tomorrow…CHEAPER
Mark,
I observed comments on various open blogs yesterday during congressional sessions and I agree with you : The last time many Americans seemed to own a GM vehicle was back in the 80’s.
I think GM Leadership has a great opportunity to show America and government leadership exactly what Detroit is capable of achieving: Let Rick Wagner and the other big 3 leaders caravan to DC from Detroit in the greenist Hybrids on the face of the earth! Include the Volt in the caravan… That’s what I call riding in style…
Lets let Detroit take opportunity to grandstand as proof positive that a business case can result in amazing products….
GM continues to talk about their high scores in initial quality. There is no good reason ANY new car should be arriving to a customer with ANY problems whatsoever after it was just under the microscope by your QA division and again at delivery by the dealership.
What never gets mentioned is long term reliability. You get me a three year old Honda or Toyota against a three year old GM, Ford, or Chrysler. Why can’t exectives find out what Japan is doing different?
It seems that American cars are build with parts supplied by the lowest bidder. And they are the same problems that have been plaguing them for decades, ripped seats, imprecise steering, rattles, failures in switches, underbody rust, etc. There are glaring differences between what Japan is producing and what the Big 3 are producing and nobody will even discuss it. While Toyota and Honda are talking about reliability, the big 3 are talking about MP3 compatibility, cup holders, and folding seats. Then every few years the Big 3 (especially Chrysler) “reinvents themselves” and acknowledges past quality problems and says how much more reliable they are. Saying that to a consumer is the equivilent of declaring yourself “cool”. When your cars are reliable, we, the consumers will tell you that, and tell others by word of mouth. While I do see GM as the better of the 3 (and Chrysler as the worst) in terms of helping with customer issues, it has been a long road of people being left without a car to get to work because of engine sludge (Chrysler 2.7 engines) and multiple well known failures that the Big 3 say “too bad you’re on your own”. I am currently driving my first GM vehicle. It is in the shop more than I get to drive it. Dashboard bulbs blow out and the only way to fix it is to replace the whole component it illuminates. The bottom of it looks like it was raised near the Titanic. Premature wear of the seats. I’m just done. I’ve now had a Ford, GM, and Chrysler and all of them were garbage. I also had (and STILL have) a 15 year old Mazda with 250+K miles on it that has only ever needed tires, brakes, and one battery since purchased new.
The only thing American cars/trucks had in their favor was styling, but now that they are copying the “bland as paper” styling of the imports without the ability to match reliability, I think it’s the final nail in the coffin.
And there is no good reason why a college student should be able to rig a car to double it’s MPG and the manufacturer can’t.
Don’t compare your cars against other new cars. Show me how your car runs after the warranty expires. Personally, I have seen enough.
All the indexes and quality vehicles in the world will not help GM unless the people selling you beautiful vehicles can earn a good living. See my blog about fixing the auto industry by putting profit back in the auto business. Visit http://jimdurkin.wordpress.com/2008/11/20/meet-mr-kiosk/
Abraham LIncoln made a speech in favor of a tariff, not only for revenue, but to encourage American manufacturers and to protect American workinmen. Lincoln knew then as well as we do now, that everything, to the limits of the possible, that Americans use should be produced by the energy, skill and ingenuity of Americans. He knew that the more industries we had, the greater variety of things we made, the greater would be the development of the American brain. And he knew that great men and women are the best things that a nation can produce – the finest crop a country can possibly raise.
He knew that a nation that sells raw material will grow ignoratnt ant poor, while the people who manufacture will grow intelligent and rich. To dig, to cop, to plow requires more muscle than mind, more strength than thought.
To invent, to manufacture, to take advantage of the forces of nature – this requires thought, talent and genius. This develops the brain and gives wings to the imagination.
It is better for Americans to purchase from Americans, even if the things purchased cost more.
If we purchase items from England, the items are ours but the money is England’s. But if we purchase items from an American, even if it costs a little more, then America has both the items and the money.
However, it seems that the leadership of this country and the leadership of these large companies
have lost focus of what is important; that this country and these companies ARE the people. Both need to put a higher value on human beings than on money.
Things have changed over the years..I fear we have more politicians in Washington than we do statesmen……Abraham Lincoln was a statesman more than a politician and there is a difference. A politician schemes and works in every way to make the people do something for him. A statesman wishes to do something for the people. With him place and power are the means to an end and the end is the good of his country.
Both have in many ways failed us all.
Reading the feedback to Mark’s information makes it clear that the myths about GM and the American auto industry in general still preside over reality and open mindedness. Many comments seem to mirror those of the congress, whose questions come from un-informed sources. The fact is GM productivity is among the most efficient in the industry. Additionally, its quality and customer satisfaction are tops. As far as corporate jets are concerned, let me ask why you own your own car? Is it because it is cheaper than taking the cab or public transportation every day?
As a corporate citizen GM has taken huge strides to greener manufacturing facilities. GM is the industry leader in alternative fuel research, which by the way requires expensive education and experience in science, chemistry and physics. These costs cannot be managed in today’s economy.
Remember what companies were there for 911, Katrina, and other national disasters. So now, General Motor’s generosity is a bad thing? What are most bothering are those pundits who imply it is bad, or wrong for employees to make a good living. That, my friends, is (was?) the American dream. Everyone out there who thinks we don’t need good paying manufacturing jobs in America can look at our dismal position in the economy today. That philosophy is what got us here, and continuing down this path will cast it in stone. Money in the bank is of no use. Money in commerce is what keeps things rolling. Take care of jobs, and the economy will rebuild itself. We do that by spending money that will come back to us, instead of going to some foriegn economy.
Duke,
I have no idea what you are talking about. The post above CLEARLY outlines that GM’s dealers are ranking high in customer satisfaction. The import dealers I have visited have been universally disappointing and sleazy. I have a Saturn now and the experience is top notch. How can you ignore independent data and criticize GM dealers based on preconceived notions? Every brand is going to have bad dealers. My brother is on his second Mazda and his first dealer was terrible but the second one has been responsive. Why is the corporation being blamed for bad dealers that are independently operated? I have never heard anything about Honda and Toyota enforcing high standards at their dealers and the survey results never show those brands at the top of the heap.
With regards to quality I would note that GM has a better powertrain warranty than Toyota or Honda and that includes roadside assistance. Would a company that isnt confident in its quality offer such protection? If Toyotas and Hondas are so much better why dont they back it up with 4 year bumper to bumper and 6 year powertrain warranties? Many magazines test vehicles for 1-2 years and rack up 20k-30k miles. In my experience they have found GM vehicles to be just as reliable as the competition. These tests also keep track of service and repair costs and American cars are ALWAYS cheaper. I have never found GM cars to be expensive to repair but I have often heard outrageous costs for maintenance and repair on imports. Do you have any specific reason to believe that GM cars are expensive to own? GM was the first to institute the 100k tune up and oil life monitors across the board. That directly impacts the cost of ownership for consumers.
Now on to constructive advice for GM: Spend more time doing direct advertisements that mention your competition by name. Make it clear that the Malibu and Aura get better mileage than the Camry. Offer a special incentive to Camry owners willing to trade in their vehicle. You must do whatever it takes to drive home the reality about the efficiency of your models because many Americans are ignorant about cars and simpyl assume that Toyota and Honda are tops in mileage. Toyota and HOnda thrive on consumer ignorance and that is why they can easily sell mediocre vehicles. The average Honda or Toyota dealer knows customers dont even step foot into a Chevy showroom to check out a Malibu so they dont have to worry about the fact that the Malibu is superior to their offerings.
Being in the Automotive Quality Field for over 20 years in both the Interior and Exterior commodities (meaning when I sit in a car I really pick it apart!) I can honestly say that GM has the best fit/finish and designs of any other 2008/9 vehicle out there.
My job requires extensive travel which means extensive time in rentals. I’ve recently driven the brand new Maxima (can you make the radio numbers any bigger? Impressive power, cheap looking/non-flowing interior, stupid start button, most expensive key fob ever and quirky exterior), new Sebring (half of the interior panels were already coming off on a car with 500 miles on it, weak engine), Volvo S40 (very plain and ordinary – neat key), Charger (cool outside, plain inside and forget about visibility if you are over 6 feet tall) and I must say the two best rentals were the Pontiac G8 (Wow – the power is Awesome! Very unique interior) and the Malibu (easily the best interior short of the CTS).
GM’s shortfall right now is Marketing. All of the good things that they have been doing and all of the impressive quality/fuel economy ratings are lost in sea of Silverado ads. I also agree with several comments about reducing brands and re-badges. The comment was made during the Washington Hearings that GM has 60 vehicles right now and only 30 make money. It’s about time to start taking a hard look at reducing the number of vehicles not making a profit in order to focus on the ones that do (or need to, such as small cars).
In addition, the fact that in average Fleet Fuel Economy Chevrolet ranks 3rd behind Mini (only makes small cars) and Honda (only by 0.5 mpg) and beats Toyota by 2 mpg should be plastered on every newspaper, billboard and TV accross the nation. I hope this fact gets pointed out to all of the Washington lawmakers bashing the Big 3.
The Dealer satisfaction results are especially satisfying seeing Nissan at the bottom and Toyota not much farther up.
Getting the word out and changing the opinions of all of the “stuck in the 80’s” haters needs to happen.
Thomas said: “GM continues to talk about their high scores in initial quality. There is no good reason ANY new car should be arriving to a customer with ANY problems whatsoever after it was just under the microscope by your QA division and again at delivery by the dealership.”
You’re right there should never be a car that arrives to a customer with any problems. However, mistakes are always made – by everbody. In this case, GM makes less mistakes than Honda or Toyota, as proven by the IQS study. Why people think that IQS makes no difference, when a lot of people will get rid of their car before the warrenty is out anyway boggle my mind. Initial quality is jus as important as long term reliability. And again, GM beats the compitition.
What we need to is also end the arogence of the top of the company. 1st The Union is not at fault. We build only what they give us. We work to there standards. We do as they say. 2nd don’t go to congress asking for money while flying on the company Gulfstream. We must save money though fly commercial, stay at a Holiday Inn not the 5stars your used to. And by all means fix the equipment in the plants before it breaks too badly and cuases defects.
A couple points after reading the above…
My “American” Chevy Truck was built in Mexico. So there goes the “Buy American” argument.
Quality: all one needs to do is look in the breakdown lane on any highway. Honda and Toyota are not providing lifetime powertrain warrantys because they don’t have to. I would MUCH rather take my chances with a Honda or Toyota that will make it to 300K+ miles with no problem than to get nickle dimed and untimately rejected for warranty repairs by the Big 3. Chrysler is NOTORIOUS for denying warranty claims on known issues. Saying nothing of ordering “patch jobs” under warranty.
These opinions are not based on 20 year old cars- do a search for 2.7 engine sludge. Do a search for cracked manifold class action, stalling issues, rust, alignment problems, head gasket failure… Again, check the breakdown lanes. I bet the next car you see will be Chrysler/Plymouth or Dodge. See what brands of cars come up. Drive a 5 year old Accord then drive a 5 year old Malibu.
And by the way, Chrysler has 1. been bailed out before and 2. privately owned. Let them go under.
SHETH:
I always agree with your posts…..always informative……….I love you man………..lol…..
Come on GM,you can do it……..I love my 07 HHR and want to buy the SS next year………..I also dont want to lose my GM job………
George Diebel said: “The fact is GM productivity is among the most efficient in the industry.”
Interesting statement. But if that was true, then wouldn’t GM also be among the most profitable in the industry?
Explain the disconnect please.
Sheth,
I do really appreciate your blind devotion to GM, and your dogged determination to defend them even when their actions make no sense.
The fact is, if GM were to pare down and have no overlapping models, they’d be left with all of the Cadillac cars, one of the Lambdas, one Buick, one Hummer, two Pontiacs, a Saturn, one SAAB and the rest would be Chevy’s. So why not consolidate everything other than Cadillac into Chevy? The PBG dealers aren’t even full line, and their entire purpose these days seems to be to sell redundant models that only compete against other GM divisions rather than rival companies.
SAAB should really be sold. GM has done a terrible job in managing it, and they need to let it go if it has any chance of being revived. Hummer could easily get along with their one Military model made by AM General that uses GM parts. If AM General wants to keep on with the production of the H2 and H3 and continue dealer agreements, that should be their business, but Hummer really should not be officially a GM product any longer. Saturn has been dragged away from it’s original purpose, and has essentially become the US arm of Opel. Unfortunately, the Saturn name does not fit well with the vehicles Saturn now wishes to sell. Rather than killing it, I’d suggest they simply rebrand it as Opel, and make the European arm of GM entirely responsible for it. Why not? It’s not like the US part of GM really knows what to do with it, at least based on what’s been happening recently.
“But if you asked a lot of folks today, they’d tell you about the problems they had, and won’t forgive, from plus-20 years past on their 1982 Oldsmobile.”
Maybe if you still made Oldsmobiles, I would have something to trade my 2001 Aurora in on, you make nothing comparable to my Oldsmobile. The G8 isn’t luxurious enough and the Lucerne is for my grandparents. Where is my front wheel drive, powerful, sporty, luxury car? Answer: The used car lot.
I have a 2007 HHR 2LT that I bought new Dec 14, 2007. It has 18,826 miles as of this evening. I get 36.5 MPG @ 55 MPH; 33 MPG @ 65 MPH; 24 – 27 MPG around town. I have not had one problem with the vehicle. I was a loyal HONDA owner for many years. I came back to GM.
BUT Mr. LaNeve your local dealers (Montgomery County, Maryland) have NO idea how to treat sevice customers. HONDA still beats you in this catagory. As I mentioned on another Fastlane Blog, Chevy needs to incentivize its dealers to treat customers correctly. PLEASE help local dealer’s service departments become customer centric and be honest with customers. Please help your dealers understand that the service department is another opportunity to re-sell the customer that they made the right choice when they purchased a GM product. HONDA does this; GM needs to catch on.
Service after the sale is what re-sells a person that they made the right choice. It’s not that a car should be ‘perfect’, it can’t, it’s mechanical, BUT how one is treated when service is required makes all the difference in the world. HONDA trains their service people how to treat people correctly, not so with Chevy dealerships.
I want GM to survive and prosper. No matter how great your cars are if you can’t support them with a solid, honest dealer network, it doesn’t matter how great your cars are, the dealers will kill your business unless they become customer centric in all departments.
Sincerely,
MWG2
A very happy HHR owner
I have been saying for years, if you want a company to listen to you, you hit them in the wallet.
Those in the middle of the country largely aren’t intelligent enough to understand that.
GM and others have pushed back against regulation, defeated competition in felonious ways (See Tucker) and for several years denied any wrong doing; from dangerous Corvairs to GM’s woefully bad Delco Electronics.
They proved they can build incompetent cars like the Vega and Caviler. Or faces only a mother could love the Aztek. Their trucks aren’t any better. How come Toyota can build a nearly indestructible HiLux/Tacoma while GM owners come in at least one owner per week replacing the upper and lower ball-joints on the so-called “The American Revolution”?
Actually know what the problem is.
In upper management, heads don’t roll when something bad happens or somebody gives the green light to an unprofitable car. Next, the designers work hours and hours perfecting a car, only to have the “Bean Counters” make you use cheap metals, sup-par parts and cheap looking plastics when production starts.
GM should be solidly behind the UAW in supporting HR 676 or a National Single Payer Health Care System, it would let them off the hook of being responsible for rising health care cost.
GM actually does have a few good cars and some exceptional models that challenge the best from Germany or Japan.
There is also a segment of America that has Import Bias and will oddly dismiss issues with their prized Honda or Toyota and are too quick to punish Detroit for having same problem sometimes to a lesser degree.
The Toyota Tundra gets HORRIBLE mileage
The new Honda Accord has controversial styling
Where’s the squawking do you hear from import owners? The silence is deafening.
GM should promise to spend just as much money on R&D for small cars as they do for seemingly more profitable trucks and suv’s. They would find that Americans are more than ready to buy from an American company its usually cheaper even without rebates.
I have maintained that today Domestics aren’t any worst than the Japanese or Germans, they just aren’t better, yet.
Just save GM, the Malibu and Cruze will save their bacon just as much as the Volt would be a symbol of GM being “Green”.
They should also consider eliminating Buick, Hummer and GMC, they overlap too much.
Chevy, Pontiac, Cadillac and Saturn are plenty of “brands” under one roof.
The media doesn’t do them any favors however. The news media and investor media programs like “Street Signs” are constantly beating GM and others down for making products we don’t want…
WTF?
It wasn’t until $4 gas that people actually had second thoughts about buying a large truck or SUV.
GM allowed themselves to be encumbered with unionized labor. So why should this be a problem for the government or the US taxpayers? The fact is that the Korean and Japanese manufacturers have learned from the Detroit 3 – and have have been smarter about keeping unions out of their plants in the first place. Secondly, they applied quality principals learned from Deming before GM , Ford or Chrysler even knew what quality meant.
GM is an antiquated, self-centered, old school company trying to survive in a modern, fast paced global economy. They have already bilked their suppliers out of millions and have bankrupted many others thinking this was the only way they could survive. And now with the credit crisis, there is an expectation that the government should bail them out. The entitlement and arrogance of this company is like a cancer within their core. They just don’t get it and they never will.
It’s a horrible situation that many people will lose their jobs – myself included. But life goes on, and Bo, Rick and Jim will land on their feet – probably trying to work for the Asians. Hopefully they are smart enough to shut and lock the door when the Failed 3 come calling.
Get well, Mark.
Don’t listen to anybody on here. You rescued Cadillac from pillow-top seats and sea-worthy shocks.
You and Mr. Lutz are making great products, one at a time (Looking forward to my 2010 LaCrosse, thanks).
If any of these hacks had any original ideas, you’d already know them.
The rest of you, let me paraphrase an old song “Here’s a quarter, call someone who cares.”
GM execs
We’re behind the American auto industry all the way. We se that GM is making the best cars in the world.
Can America be saved is the question?
There is a group of rabid America haters out there. They thrive off misery. They seek the destruction of a free USA . American automakers could offer the most fuel efficient cars or electric cars and they would still hate a free America.
Major banks are on the verge of collapse in the USA, the economy is in dire condition and many people don’t realize it. The President and Congress are not acting with a sense of urgency to help.
Let’s prove the economic forecasters wrong. Let’s show them that the American auto companies can save America, just as they helped bring America out of the Great Depression.
What to do if Congress fails to act to help the American auto industry?
The American auto industry can lead the way out of a recession within six months to year I submit if Congress acts boldly to help. If not, the recession could deepen beyond what anyone wants to see.
GM could sell Opel if necessary. It could work.
Some in our own Congress have engaged in outrageous and unwarranted hostility toward the backbone of American industry and of the economy. These Senators are a disgrace.
And why hasn’t the President acted more boldly to help or spoken up more? Its unbelievable.
This is very serious, the elected officials are acting like the don’t know there’s an economic crisis in the USA.
Perhaps the Canadian goverment will help the Auto Industry while the US goes into a deepening recession.
The American auto companies may have to relocate their headquarters to Canada if the U.S Congress fails to act. Freedom itself is in jeopardy. If so, we would back you all the way.
If Congress fails to act, the American auto companies should not wait, both Parties appear to have become corrupted and may not be able to be counted on.
The American auto companies keep their headquarters in Canada or somewhere outside the U.S until the economic and political turmoil subides. It may be a while, since Congress is not seeing the light of helping American manufacturing.
The American auto companies can lead the country out of the impending recession quickly. Let’s hope they let you lead.
We are not for Chapter 11, its just a trap. Its better for the auto companies to move their headquarters out of the USA first then take more actions.
If Congress doesn’t pass the compromise bill or the President fails to act soon . . . we’ll back you.
The auto execs should drive to Washington in an American made vehicle.
We’d also be happy to side with you over the Senators who bad mouth American industry.
To read Mr. LaNeve’s rave review of GM, one is apt to think that a welfare check is the last thing GM needs. Mr. LaNeve is bragging up this company from the assembly lines to the corporate private jets. Why are they in the hole Mr. LaNeve? How did America’s auto industry giants fail so miserably? They refused to respond to realities long ago seen by leaders in the import industry. GM pushed their gas guzzling monstrocities upon the public rather than shift production to more energy saving technology. GM should be asking big oil to bail them out. It would be refreshing for executives like Mr. LaNeve to actually acknowledge GM’s failures, but I won’t be holding my breath.
I have purchased my last GM vehicle and it is NOT because of an 82 model. My 99 Century is a complete piece of garbage – all four window regulators have failed, there are electrical problems, the front suspension thumps (just like my nephews 00 Regal) and the interior is falling apart – unlike my 93 Bravada which is 17 miles shy of 200K. I did expect to replace the poorly designed intake gaskets on the 3100 series engine but this car is the straw that broke my back. The quality of the materials used on this Buick are atrocious. I recently took the Bravada to a GM dealership for a no start problem and it left the dealership with more problems than it went in with. They bent the key in the ignition, stripped the battery terminals and couldn’t (wouldn’t?) set the timing correctly. (they did offer to use it as a trade in!) After personally owning 5 GM vehicles I will go back to my older cars (81 T/A, 69 Ford) which are able to be repaired at home. I have conveyed to my Congressonal representatives that you shouldn’t receive another penny of my hard earned dollars. Your business model is a failure and the American people should not have to suffer the consequences.
First of all how ’bout this lyric?
“GET A NEW PLAN, STAN”
It seems at this time, the gov IS offering financial assistance with one stipulation “Show us what your plans are if we give you this money”. Yea, I think it was ludicrous that this was not asked of the financial institutes that were so blindly bailed out, but thats water under the bridge by now.
Just as you would ask yourself when giving money to the homeless, what will they use it on? GM is being asked the same, and like it or not the question has merit.
GM, you kinda blew it last visit to Washington. You now know what role the media is playing as well as how it is affecting the general public’s perception. You have another chance at the plate again soon. Swing well, hit the ball this time. HAVE A PLAN and get that home run.
Don’t blow it again, play it right. There are many hard working Americans whose jobs and livelihood depend either directly or indirectly and will be affected by your decision on how you handle your next opportunity at bat. Go into the game with a plan this time and please get that loan.
Dealerships, Salespeople, the retail stores, the restaurants, the local shops, local economies far and wide will all be affected by your decisions today AND tomorrow.
This past week’s congressional debacle proves the existence of both a Washington Beltway silo mentality as well as the Detroit auto industry silo. For too long the auto industry looked out the window and saw nothing but Big 3 vehicles and assumed life was good It is now painfully clear that America is not aware of the importance of the American auto industry and less aware of the improvments already made to keep this critical industry viable. Detroit on the other hand thinks everyone, especially our national leaders, are educated about our business.
As part of the “Plan” being developed for presentation to Congress next month, in addition to current and future steps, GM needs to present what has already been accomplished or implemented in the last 5 to 10 years. We have not been standing still. Among these are:
1. sale of less critical assets including real estate
2. divesting component subsidiaries
3. closing plants and reducing excess capacity
4. headcount reductions in the salried ranks
5. two tiered wage UAW structure
6. changes in salaried defined benifits programs and retirement
7. improvements is quality
8. new vehicles with increased fuel economy
9. realignments in the dealer organization
10. restructuring the field organization
Dropping brands has also received lots of press. Details about the experience closing Oldsmobile should also be provided.
Finally, much has been made of the expensive legacy costs. GM should point out this is a precursor for the nation’s Social Security burden. Fewer workers are contributing to support an ever increasing pool of beneficiaries. Add health care coverage and you have a recipe for disaster. In many ways the current chapter on GM is an oracle for the US Government, which is us.
Thanks for listening.
Bernie Steer
I think the result of the Dec 2 hearings might well hinge on how the “Big 3″ CEOs travel to DC. It’s all about “image.”
“Commercial flight” = yes to bailout (expect flak if you fly first class)
“Private jet” = no to bailout.
It just might be that simple.
Oh, yes, it might help to produce a detailed turnaround plan that doesn’t include money for executive bonuses or “perks.”
You might want to get it right this time, it’s just that getting it wrong would be disastrous for everybody.
Dear Mr. LaNeve,
Your article above is entitled: “Changing the Perception of GM, One Customer at a Time”, well your GM dealerships are also ‘Changing the Perception of GM, One Customer at a Time’ and NOT for the better!
I’ve harped about the lack of customer centric, honest GM Dealership Service on a couple of Fastlane Blogs. Well here is an example of what I am speaking of: My neighbor took his 2006 HHR in for the 30K service this past week. They wrote on the service invoice and charged him to “Flush and replace power steering fluid.” PLEASE Mr. LaNeve, please indicate where the Power Steering Fluid reservoir is located in the HHR? PLEASE Mr. LaNeve tell us how the HHR electronic steering system uses Power Steering Fluid. PLEASE Mr. LaNeve show us where in the HHR Manual under the lists of fluids any mention of Power Steering Fluid. There isn’t any! Electronic Power Steering (EPS) doesn’t use the old pump style power steering or fluid! There is NO power steering fluid to flush and re-fill.
Your own HHR marketing literature states: “EPS eliminates the use of an engine-driven power steering pump, as well as the corresponding fluid reservoir and plumbing, reducing both fuel consumption and the potential source of an environmental contaminant.”
My neighbor showed me the invoice and then asked me for my friend’s name and number who is a GM at a Honda dealership. My neighbor said, “This is the last straw, I will never buy another GM car again. Monday, I am buying a Honda for my wife. We were going to buy a Malibu but this is it; I’ve had it with Chevy and their dis-honest dealers!” He is furious that the Chevy Dealer charged him for something that doesn’t even exisit.
To all GM Executives: It is not just about building quality, high mileage vehicles, it’s also backing them up wtih quaility customer centric, honest dealers. You can’t have one without the other. Quality vehicles + quality dealers will yield loyal customers. Conversely, if you can’t back up the product with an honest service network, you will continue to loose customers.
I love my HHR. I want GM to succeed. But I can’t defend practices like the one outlined above. PLEASE change the way your dealers treat customers, your very survival depends on it!
SIncerely,
MWG2
Mark,
After 21 years it is time to address that IFS in the HD pickup trucks. Fool me once, shame on GM for using such an inferior system in HD trucks. I’m on my second Dodge and my wife is on her second Jeep. Build a HD pickup truck with a SFA and I’ll buy it.
After 30 years it is time to kill the pushrod 60* V-6. I had a Pontiac with that disaster 60* V-6. GM phased out the 3800 for that?! Fool me twice, shame on me.
Why should people that have been burned numerous times by GM come back? As time rolls on GM doesn’t change, they blame the customer.
Products, Products, Products.
You can’t make a profit selling what people don’t want.
Too bad it is too late, but GM/Ford/Chrysler should have taken some of their best vehicles and driven them to the meeting. Showcase what you have. Hybrids, clean diesels, high-mileage sedands, etc. Then challenge the Senators to go for a ride.
Instead all the CEOs looked like a bunch of spoiled brats demanding an increase in their allowance.
Laramie Jordan asked, regarding GM’s productivity among the most efficient in the industry.
“Interesting statement. But if that was true, then wouldn’t GM also be among the most profitable in the industry?”
Laramie, I also noted that the myths about GM are still alive and well. Overcoming the myths is where profitability lies. GM was in fact moving in a positive direction in both profitability and market share before gas prices soared to $4.50 a gallon and people started losing their life savings in the market. When people quit buying cars in recent months, GMs sales decline (%) were actually less than its foreign competitors. It doesn’t matter what business one is in, if nobody is buying product, there will be no profitability. Giving all this money to banks doesn’t seem to be trickling down to the buying public. People without jobs are not likely to buy cars (from any company), and the banks don’t seem interested in investing in auto loans.
“What never gets mentioned is long term reliability. You get me a three year old Honda or Toyota against a three year old GM, Ford, or Chrysler. Why can’t exectives find out what Japan is doing different?”
Actually GM brands often do better than average in JD Power 3 year reliability surveys. Where are you getting your facts.
Chris R,
This isnt about blind devotion, its about what’s true and untrue. Sorry, but I cannot sit here and say that EVERY decision made by GM management is wrong as you can. There is always room for improvement but those who criticize seem to ignore the progress has been made. GM may not be in better financial shape than they were 10 years ago but from a product and structural cost perspective they are undoubtedly better off.
Killing of brands wont do anything in the short term and it will cost lots of money. GM doesn’t have a lot of money right now so I would love to know how you expect them to close 5 brands in the near future. There are laws that have to be respected and dealers that would be entitled to buy outs. This would cost billions of dollars and cost GM hundreds of thousands of sales in the short term. It is foolish to assume that every owner of a shuttered brand would simply buy a Chevy or Cadillac. It didn’t happen with Olds and it wouldn’t happen with any other closed brand. There is simply too much competition in the market today.
Angela:
Can you explain how GM “pushed” SUvs on the unsuspecting public? I have never understood this argument. I don’t think GM ever forced anyone to buy a SUV. People make their own decisions and GM has always had cars available to buy for those who are interested. This whole theory of people being forced into SUVs is all about relinquishing personal accountability. Those who bought SUVs have to take responsibility for their actions. When gas was cheap people didn’t care much about mileage and decided to go with larger vehicles. Its crazy that we can’t even acknowledge such simple facts. Instead we have people on Capitol Hill accusing the Big 3 execs of pushing product as if they are drug dealers. Apparently no one in Congress realized that vehicles like the 300, Malibu, Fusion, Cobalt, CTS, Mustand, Focus, etc. are CARS that have been introduced in the last decade.
Laramie,
The primary reason GM is losing money is that the vehicles that generate the most profits for them have experienced the largest drop in sales in the last few years. People that hate GM for making SUVs are too naive to realize that SUV profits drive development of low margin cars and hybrids. With GM’s current cost structure (soon to be changed) its hard for them to make money on cheaper vehicles. GM was hoping that truck and crossover sales would stay steady enough to carry them into 2010 when they will be much more competitive in terms of labor costs. The gas price surge and later credit crisis have crushed sales in general but have really hurt sales of higher end products like large SUVs and luxury vehicles. In addition, the poor market has lead to use of incentives to move metal which erodes whatever profitability may have existed for a model. The bottom line is all automakers are doing poorly now but GM’s obligations put it at a financial disadvantage when compared to import automakers who do not have to fund retiree benefits of hundreds of thousands of people. The obligations GM has now arent even the result of negotiations of the current management team. The retirees collecting expensive benefits are due those benefits because of contracts signed MANY years ago. Its easy for pundits and Congressmen to suggest GM should simply “dump” these people and save money but execution is a different matter. Also, no one is talking about what will happen if GM fails to cover those who are entitled to pensions and benefits. Will the government absorb those costs? Those who are so concerned about their tax dollars need to understand that a failure of GM is going to cost taxpayers far more than this loan. I think its silly that the media and those in DC seem to be rooting for the demise of the Big 3 under the guise that they are “protecting” the taxpayer when what they are really doing is advocating a collapse that will cost local, state and federal treasuries billions of dollars.
GM does not have enough money to keep 8 Brands. I know it is not easy to elimonate brands but GM is in dire situation and have to make drastic decision.
Eliminate GMC. Buick and Pontiac. Since Buick has good reputation in China GM can keep that badge in Asia. Buick Lacrosse (China version) and Enclave can become part of Cadillac as soft Luxury ride and keep CTS, STS as sporty ride vehicle. (Lexus LS series works as luxury ride and GS, IS series works as Sporty ride). Keep Saturn as European Flavored Division and Chevy as Main Bread and Butter Brand. Saab could be part of either Saturn or Cadillac. Hummer also needs to go.
Start working with Consumer Report , Sierra club , East & West Coast Media Elite so we can get favorable review so they can help us change public perception. GM can not survive as company if turns into a political football.
Sheth said: “Can you explain how GM “pushed” SUvs on the unsuspecting public? I have never understood this argument. I don’t think GM ever forced anyone to buy a SUV. People make their own decisions and GM has always had cars available to buy for those who are interested.”
If you believe that, you are very naive about marketing techniques. Go back and look at how the Big Three marketed SUV’s and pickup trucks. For example, they always show an SUV trucking through a pristine wilderness, or on top of a snow covered mountain, or at the beach with several bikini-clad young women, where there is never any other traffic, or their SUV never needs to stop at a gas station.
The implication was always, buy one of our SUVs and you too can be sexy, cool, and above the rest. The ad companies that GM hired knew full well how to use psychological and subliminal techniques to steer people towards a certain brand. (Those brands that would allow GM to make the most profit.) That’s why they never show an SUV stuck in traffic, or at a gas station putting $100 worth of gas in the tank.
It’s always been the same. Companies have always played off consumer’s psychological needs and desires to persuade them to buy something they don’t really need, and may not have actually wanted in the first place. (Example: Look at some of the SUVs ads from 10-15 years ago when the Big Three used the safety issue to imply to mothers they were being less than perfect mothers if they didn’t use and SUV to take their kids to soccer practice.)
In 1957 a man named Vance Packard wrote perhaps the classic work on the subject called “The Hidden Persuaders.” It might be worth your time to check it out of your library. Vance Packard – The Hidden Persuaders
The Big Three and their ad companies, know exactly how to exploit the psychological vulnerabilities of consumers.
Augie,
You’re missing the point. The point is, no one held a gun to people’s head and told them to buy an SUV. It doesn’t matter the marketing, people still have the choise of whether or not to buy an SUV. It’s like saying McDonalds made your kids fat. McDonalds didn’t do anything. They mearly provided a product, and you chose to feed it to your kids.
This is what is wrong with America today. People take no responsibility for their actions. That’s why microwave makers get sued because someone tried to dry their dog in the microwave, and because there wasn’t a warning telling you not to, it’s obviously the manufacturers fault.
And you bring up the safety issue. The fact still remains that you in fact ARE safer in an SUV. Look at all the statistics. Putting your kids in a SUV is making them safer whether you want to believe it or not.
Tim,
Respectfully, you’re missing the point. You don’t understand how psychologically vulnerable many people are and how easily a marketing campaign can sway them. Sadly, our entire American economy has been built on companies and marketeers convincing consumers to buy stuff they don’t really need.
Perhaps you are independent minded enough to think for yourself, but too many people are just waiting for others to tell them what to buy so they can be cool, sexy, and hip. How else would you explain bell-bottom trousers in the 1970’s? Or, pet rocks? Or Brittany Spears? Or an office worker thinking he must have an SUV to commute to work?
Here’s the thing I can’t figure out: Why is everyone so bitter about GM? Why does everyone insist on believing the worst about our (yes, I’m an employee) products, or service, our dealers, and our warranty?
First off, to Ben Dewberry, GM *has* put its money where its mouth is. We’ve extended the Powertrain warranty to 10 years, 100,000 miles. Considering it’s transferrable and doesn’t require ANY action on the owner’s part, that makes it the best in the industry.
Someone else said that they purchased their “last GM car”, a 1999 Century. Egads! How closed-minded of a society have we become that even after 10 years, we refuse to believe a company can change or make improvements to their products! If you bought a 486 computer in 1999, would you expect a new Dual-Core Pentium to preform the same? Of course not!
What the J.D. Power results show is that GM makes quality cars that are at least as good as its competition (that’s what “better than average” means). Maybe there’s something everyone else knows that you don’t? Give us a try. You might be surprised.
GM also takes flack for “pushing back” on fuel economy legislation. I don’t know if you’ve noticed (you probably haven’t), but so did Toyota. So did Nissan. So did Honda. Here’s the reality: meeting souped-up government regulation is expensive. Even when it’s good for you. The steel industry fought lifting tarrifs on foreign goods. The pharmaceutical companies fight increased FDA standards. The airlines have fought against passenger bills of rights. See a trend? If you’re going to demonize, be an equal-opportunity demonizer.
Ahh, but Toyota makes such fuel efficient vehicles, and GM only makes gas guzzlers! Really! Last I checked, the Tundra gets worse mileage than the Silverado (and has less towing capacity to boot). The Yaris gets 1mpg highway less than the Cobalt XFE (and has less horsepower), and the Sequoia is 1mpg worse than the Hummer H3. And why would Toyota choose to make these fuel economy nightmares when they have the Prius? Because some people need ‘em, some more people want them (but don’t need them), and oh yeah, they make a larger profit on them than they do on the Prius. Lo and behold, that’s the same reason GM makes SUV’s.
It’s time we stop talking out of both sides of our mouths. GM makes many of the same decisions that other companies make, both in portfolio and advertising (gotta love those Tundra ads), yet GM is the out-of-touch dinosaur-demon, and everybody else is the planet saviors. GM executives travel the same way that AIG & Citigroup’s CEO travel — yet it’s a big deal for GM, and not for AIG. The people that are screaming about the so-called “overpaid” union are the same ones that would have been screaming bloody murder if GM had NOT shared its past successes with its workers. They’re also not paying attention to (or choosing to ignore) the fact that the union contract has signifcantly changed from the numbers they cite.
Every state, every community, and every industry is impacted by what happens with the domestic automotive industry. Our companies invest money, buy equipment, pay salaries & pensions, and provide healthcare, and that money is in turn spent on hundreds or thousands of other things in the market, from doctors and machine builders to restaurants and hotels to taxes and mutual funds. Just as the financial industry is worth saving, so too is the automotive industry.
Mr. LaNeve:
I read your latest comments on the state of affairs at GM and here are my comments for the record.
General Motors has become victim to the excess constraints of the UAW. I believe that assembly plant techs should be paid a fair wage for bringing quality GM products to market. However, even with the concessions made the damage has been done. Is there any other company that funds a program for employees covering 96% percent of their pay for two years or more should they be laid off? I understand that this program costs GM nearly one billion dollars a year. What percent of the government bridge will go to cover this employee safety net? Perhaps this should be included the next time GM meets with the lawmakers on Capitol Hill.
I agree that GM makes some exceptional vehicles right now. The Malibu and CTS are great vehicles. Even with the accolades from JD Power and the respective trade publications, GM is competing against brands and badges that have a long standing heritage, ergo Honda Accord and BMW 3 Series. To lure people away from these vehicles will take much more than positive press. The experience has to begin at the dealerships themselves. From my perspective GM has done very little to make the customer experience a memorable one at the dealerships. The dealerships require more investment from the corporate office to make them feel valued. From my perspective GM has lost their way in this regard. The dealership is your first line to the customer. If you want Cadillac to compete with Lexus, Mercedes and Infiniti take a second look at the value they provide at their dealerships. I think you will find that the service level at your dealerships needs to be tweaked to get to gain more customer retention.
Scott Cronin
I have nothing against GM. I think that many of the products that they make are top-notch (Colorado, malibu and alot of the caddies) BUT, I FEEL THAT THEY ARE OUT OF TOUCH WITH POTENTIAL CUSTOMERS. Just to prove that; here is an Experience that I had this morning:
9:01 AM I was thinking that my 97 S-10 is getting a little long in the tooth. I am also getting older and I don’t want to shift gears anymore. One of those Chevy Colorado’s with the I-5 engine (I may want to tow something occasionally) and an automatic tranny might fill the bill. I really don’t know how much they cost, but I’d like to find out.
9:05 AM I go to the Chevrolet website and look at Colorados. I have been using the internet since 1995 so I know my way around. The chevrolet website makes you go through a really stupid “Build one process” It starts out ok but then ends up on the “packages” page These are long and I really dont feel like studying them. So screw it I just pick the shortest one (the one on top). Then I go through a few more screens and realize that maybe I should have picked another package — So I go back. I DON”T LIKE THIS… clunky, very clunky….
9:15 AM I finally made it through that crappy website. Now it wants my zipcode so it can find a Colorado for me based on what I put in. I put in the zip and a radius of 150 miles. The wesite returns 35 “prospects” for me. One is a new V-8 Colorado two are I-5’s and 32 are I-4’s. 32!!! You’ve got to be kidding me!!! WHO THE HELL BUYS THOSE???? (Obviously NOBODY or thier would not have been 32 available) IT SURE WON”T BE ME. I know that the I-5 has to be the best seller in this line — SO WHY AREN”T THERE ANY OUT THERE???? I am having a hard time believing that a manufacturer is so damn dense….
I (and a bunch of other people) want an I-5…..SO MAKE SOME!!!! Duh… Having been through this I decide that I must let General Motors know (maybe I am being naive here, but maybe they really don’t know) So I go to the GM website, I am looking for an email address that I can use to send a comments to GM…..Forget it. I look around for 10 minutes and can’t find one. GM’s website is great if you are a GM retiree. Lots of really usefull retiree info on there. Unfortunatley it sucks if you are a customer or POTENTIAL CUSTOMER.
Here’s what it all boils down to. I WANT GM to survive, I WANT the American auto industry to survive. Our products are just as good as anybody’s (most of the time they are better). Somewhere along the way our auto industry FORGOT about the customer. You have not made it easy to buy your products. Customers these days are sophisticated, I want what I want. If you can’t provide it I’ll look elsewhere. There is plenty of blame to go around here.
Managment — I cannot beleive that each CEO came to Washington in thier own jet. If you have any image consultants you need to fire them. THEY FAILED you miserably. START taking care of your customers….
Unions — Come on guys you know this ride is not going to last forever……get used to having alot less members. (be thankfull that you have some left) Its just inevitable. You can’t strangle the company so much that it fails……….If it does, you’ll have ZERO members….Lets see…some vs. Zero….
I am not in favor of a bailout of any kind given your current structure. It would just be a band-aid. You MUST change.
A future customer
Sheth, I didn’t say I disagreed with every decision GM has made recently. The new CTS, the new Malibu, my HHR are all very good cars that I’d recommend to anyone. perhaps I should spend some time praising GM for what they’ve done right, but then I’m assuming by their own words that they’re already aware of what they’re doing right. So, I simply point out what I see as areas for improvement.
As for brands, short term is meaningless right now. Plans must be for the long term if GM really wants to stay in business and keep providing us with these wonderful vehicles. GM simply does not have the market share to support eight brands in the US. There is to much competition, and GM would be far better off in the long term if they could devote more money to R&D and advertising of one model per segment rather than attempting to sustain three or four vehicles in each segment. The actual sum of money wouldn’t change, it just wouldn’t be spread out over all of those different models. The Malibu is already a great car, but just imagine how much better it might be if GM wasn’t also devoting resources to the Aura and G6. How much better might the Cruze be if GM didn’t have to worry about spending resources to supply Pontiac and Saturn with versions of that car. How much nicer would the Impala be if they didn’t have to worry about Buick? Long term, this makes better sense. One mainstream brand – Chevy, one Luxury brand – Cadillac, and perhaps one mid range brand – Saturn and/or SAAB. Frewer models, fewer overlap, and more money available to spend on R&D and marketing without an overall increase in spending. If GM proposed a plan that included it’s own downsizing, or “right sizing” as many people like to say these days, to congress when asking for this loan, they’d probably get the money to do it. GM would also be able to reduce the number of dealerships to something more manageable, and also be able to impose new customer centric practices at those dealerships. So Chevy service would finally be as outstanding as Saturn.
Mark,
Great blog and thanks for keeping the positive attitude around GM. More Americans need to have this attitude if GM is to survive.
I am a GM employee as well, but I am not American and I do not work in America. Whatever happens to GM directly effects millions of people across the globe, not just in the US.
GM has shown in recent years that it does know what the problems are with the company and have made some hugely significant moves to address those. I am sure that the current situation will help to concentrate efforts to alleviate these issues even more.
So to all those Americans who seem to think that America can do without GM, please consider that there are also millions of people across the globe who are watching this situation very carefully and are backing GM all the way.
What we find so hard to comprehend is how the Government can be so quick to bail out the Banks (in the case of the Citi group, almost overnight) and yet for the auto industry to get access to loans, they need to justify their existance and prove to Congress that they have the capacity to pay back the loans and return to a profitable operation. Of course they can, but they need the support of the American public to do it. So stop the GM bashing, do some investigation into the great inroads that have been made with quality, fuel efficiency and great designs and see for yourself why it is so important for your domestic auto industry (and by default the global industry).
Graeme.
Just a quick note to Rick Wagoner:
For your next meeting with Congress, you might want to bring Peter De Lorenzo with you. Perhaps he might be able to better explain to them why they need to act with haste in getting GM, Ford and Chrysler these loans.
To Kevin Britton,
You wrote:
“Why does everyone insist on believing the worst about our (yes, I’m an employee) products, or service, our dealers, and our warranty?”
See my post above about what a local dealer just did to a neighbor; charged him for something that doesn’t even exist in an HHR!!! Do you honestly believe there isn’t something wrong with that? (It’s called fraud.)
That is why people believe the worse about GM. Becuase your dealers give GM a bad name. The products are great, the dealers don’t follow suit.
MWG2
From Automotive News:
“GM incentive requires dealer to order more cars for cash
General Motors has notified its dealers that if they want dealer cash on certain models, they must order more inventory on other models. GM’s motive is to drive sales, but some dealers say the program could lead to competitive disadvantages. On Friday, Nov. 21, GM sent a notice to dealers advising them of the November Re-Consensus Dealer Cash Program.”
GM just doesn’t get it. Incentivize your dealers to deliver better customer service, not to buy more cars. Better customer service will bring in the customers.
I think these Blogs are just propaganda for GM to sell their cars. They don’t have a clue about customer service nor do they care. Forcing more cars down the dealers throats is not the answer.
Mark,
I don’t think GM has to say they’re sorry for the past; the past wasn’t too bad. I can remember back in the 70’s and 80’s, most everybody built autos that are a bit laughable. I can remember about every car that came from the east rusted out in less than 5 years; making it not only a safety hazard, but awful to look at. In comparison to other makes, GM is doing remarkably well, considering; GM has a full line of vehicles for all purposes, not just a few generics in different body styles.
“My neighbor showed me the invoice and then asked me for my friend’s name and number who is a GM at a Honda dealership. My neighbor said, “This is the last straw, I will never buy another GM car again. Monday, I am buying a Honda for my wife. We were going to buy a Malibu but this is it; I’ve had it with Chevy and their dis-honest dealers!” He is furious that the Chevy Dealer charged him for something that doesn’t even exisit.”
I can’t understand why anyone would get a service that their car does not need and their response would be to run to a Honda dealer rather than going back to the Chevrolet dealer and telling them how dissatisfied they are. There’s no way for Mr. LaNeve to address this complaint because the poster provides no information regarding the dealership or even the state and city.
I’m sure that no Honda dealer has ever had a service writer that charged someone for something that didn’t exist out of a clerical error or simple inattention.
It’s not the standard practice of GM dealers to charge for services on components that don’t exist and I’m sure it’s not GM’s policy to just let stuff like this go on without saying something.
MWG2,
I can’t disagree with you that a problem exists, but I don’t think it’s nearly so absolute. I have seen examples of both in our corporation: fantastic dealers who go out of their way to care for their customers, and terrible dealers who will do anything to weasel a sale and won’t back the product. It’s true — we have both….but from the sounds of things, other manufactures have the same problem. I’ve heard my share of horror stories about Honda or Toyota dealers.
In my experience, the better dealers are the smaller, rural ones. They tend to place a little more value on each customer relationship, as they are more dependent on each sale to make their living. The big volume mega-stores feel very impersonal to me. I much prefer the dealer I use because he’ll toss me the keys to HIS car if I want to test drive it, as opposed to the bigger dealer closer to my home who not only wants my driver’s license, he wants to sit on my lap while I drive.
Part of me wonders if the problem isn’t caused in part by the fact that we (GM) just have SO MANY dealers, to the point that they are forced to compete with each other, instead of focusing solely on the competitor’s products. When you start getting hungry, you start pushing harder, and cutting corners to save a buck. That’s very off-putting to customers.
I also wonder about those dealers that sell multiple manufacturer’s products. While I can see the argument that this might encourage the product speak for itself, you have to wonder: if the sales dude makes $1100 commission on the Camry but only $900 on the Malibu, how many good things will he have to say about the latter? A lack of brand loyalty, to me, is a problem in itself. And what happens when both manufacturers have competing deals? Where does he put his advertising money?
So, MWG2, I think you have a point, but it’s not the only thing. Another area to look at is why we keep on using stripped-down models for rental fleets? People who rent cars are taking a test drive of the vehicle. Why would you want them viewing it in its cheapest, no options, no frills, no comfort state instead of a “commonly equipped” version such as their neighbor might have in their driveway? Again, this is an “every manufacturer” issue, not a GM thing. But it’s worth asking.
Angie<
People buy what they want. Period. When gas was cheap people flocked to larger, safer vehicles and GM provided them. ALL vehicles are advertised, including cars. Your suggestion that people bought SUVs simply because of advertising makes little sense because cars were being advertised simultaneously. Pickup and SUV sales reached about 50-55% of the market a few years back before gas went way up. This means a substantial portion of the populace wanted to stick to cars. How can you say the masses are too stupid to ignore GM advertising when half of all buyers wanted cars? I also would like to know if you fault Nissan, Honda and Toyota for advertising SUVs and pickups. I’m sure you have seen Tundra ads if you ever turn on the TV. Do you have a problem with Tundra ads even though they are financed by Toyota?
SUVS have certain advantages over cars and when gas was cheap people liked those advantaged. When gas got expensive people like you started to claim they were “duped” into buying a 14mpg vehicle and blamed the American auto industry. Even when gas was $1.25 a gallon I had no interest in a V8 powered SUV and I still don’t until this day.
“The Big Three and their ad companies, know exactly how to exploit the psychological vulnerabilities of consumers.”
That applies to the ad companies that work for the Japanese automakers as well. I do not see the relevance. The point of advertising is to incite interest amongst viewers. How is this something to be condemned? Honda uses lots of “green” references in its ads for the Accord even though several midsize sedans are more efficient and the Accord lacks a hybrid model. Is that wrong too?
Kevin,
Everything you said makes sense.
Here’s my take on how things are unfolding.
First I think the government will give the auto manufacturers the loans needed for the obvious economy and political reasons stated above.
I think the government is showing hesitation to do so because for once they are in a position to finally change the UAW forever by forcing them to make the changes that have been needed for decades. The alternative if they don’t is chapter 11 which will definitely be the end of the UAW.
This in addition to the changes all ready established in the new UAW contract signed in 2007 that take effect in 2010, will put the big 3 in a competitive labor cost situation with the imports.
The other issue are the cost associated with having to many dealers.
Right now more dealers are going under then ever before. Dealerships with high overhead or that are under capitalized, just like the manufacturers, can’t pay the bills each month and will be forced to fold.
Add to the slow economy, GM will take 2 weeks starting the end of November where they are delaying incentive payments to dealers thus compounding their cash flow issues.
This allows the factories to lower their dealership count without having to come up with cash to do so.
Obviously GM still needs to streamline other costs and processes, make the best vehicles they possibly can and market their story better; but just getting those two issues in line will help out immensely.
MWG2,
I think you need to give the generalizations a rest. I have had positive experiences with GM dealers in the past in terms of pricing and honesty. On InsideLine they have a Nissan GTR in their fleet and the windsheild replacement costs double what it should have at their preferred dealer. The dealer was forced to apologize for the gauging and issued a partial refund. Dealers are independent and every brand has bad ones.
ChrisR,
You are overtating the benefits of shutting down brands. There is a reason why auto companies engage in platform sharing. On paper it may seem like GM is “wasting” money by having a Malibu and Aura but the reality is they share many components and are built at the same factory. I do not see how cancelling one will benefit the other. This is like saying the Camry could be better if Toyota stopped making the Lexus ES350. I don’t think the argument holds much water under scrutiny. If GM cancels one brand they will lose customers for sure and its a gamble as to whether those people will flock to another GM brand. If GM stops making the Lacrosse they may sell more Impalas but at the end of the day its still a sale for GM as a whole. I don’t believe this notion that the cars would be better if there were fewer brands. Does the CTS appear to be suffering from under engineering because GM has other brands? How about the Enclave or Corvette?
As for the Cruze, Gm has not made any announcements about Saturn and Pontiac rebadges of this vehicle. If Saturn is to get a new small car it’s more likely to be the new Astra.
Ah, well, why, you ask, do so many people hate GM? Why? Oh, it’s so simple. For the past 40+ years, GM has shown nothing but contempt for its customers. Everything from planned obsolescence (invented proudly by GM to make people buy a new GM car every 3 years) to cars that died after only 3 months on the road (eg, my sister’s brand new CTS, which has been in the repair shop more than it’s been on the street). This is the GM we know.
Rick Wagoner came off as particularly arrogant in front of Congress. That too has contributed to the intense hatred GM generates. And the contempt continues. Dealers who rip off customers–from the Finance Department to the Service Department. Cars that die when you’re on a highway. Electrical systems that don’t work (including–and this amazes me–turn signals and horns!). Leaks. Rattles.
And if a customer dares to complain–well, it must be the customer’s fault (hey, shmuck, the car has 2000 miles on it–how did the catalytic converter die???).
So blow all the smoke you want–there are too many of us who’ve been burnt (and continue to be burnt) by GM’s contempt for its customers. You want sympathy for your bailout? Start showing a little humility once in a while. Remember, arrogance and the DeLorean. And arrogance and Eastern Airlines. And arroagance and Enron. Soon, we might be saying arrogance and GM. (It was arrogance that almost killed Xerox until a column appeared on the Internet and Xerox responded by changing its ways back in 2000.)
Consider that GM and its employees have themselves paid billions into the Federal treasury over the company’s 100 year history. Also consider the two world wars and cold war that GM technology and products helped win over that time. An on-going restructuring, underscored by world-class products, has been underway for several years at GM. It was thrown off-track by a financial industry that caused a world wide crisis because of ITS products, namely mortgage backed securities. So, in spite of all of this, many say GM does not deserve Federal loans? GM not only deserves these loans but, based on the above, I dare say it might be owed to the company.
I wonder if GM has any plants as advanced as this FORD plant in Brazil:
One look at this and you will be able to tell why there will probably never be another one built in the USA . It will also point out why more assembly plants will go offshore. They do everything RIGHT here…
http://info.detnews.com/video/index.cfm?id=1189
MWG2, The frustrating part is, GM does know how to do customer service well. Anyone who has ever bought a new Saturn, or has taken their Saturn in for service can attest to this. Unfortunately, Saturn is the only part of GM where this sort of outstanding sales and service experience is consistent across the board.
Chris R:
Again you are not acknowledging the truth. Surveys show that GM dealers do better than average on the whole in terms of customer satisfaction. Unfortunately this blog has become a place for people to vent about bad dealers which are not under GM’s control. While Saturn may be the best GM brand from a customer satisfaction standpoint they are not the only brand that can please. I experienced great customer service for the most part on my last car at MULTIPLE dealerships. Furthermore, I find it laughable that people are suggesting GM dealers rip you off when repair and maintenance costs at GM dealers is generally more affordable than at import dealers. I suggest that anyone not satisfied with their dealers performance complain and then find another dealer that is willing to treat you appropriately.
GM enthusiast proposal for all new GM line-up and branding strategy:
I. CADILLAC
Cadillac powertrains new name X4, XV-6, XV-8, and maybe XV-12.
Models:
*RTS sedan (replaces DTS and STS names) with optional XV-8, possible XV-12. Top of the line for Cadillac, with RWD.
*MTS – Sigma platform – rotates with Buick/Olds sedan below. Sigma platform, NorthStar engine FWD. Has competitive price point for rising professionals and is a top seller for Cadillac. A bit larger than STS but somewhat smaller than DTS.
*CTS and CTS-V sedan and coupe optional X4, V6 and LS V-8. Becomes an entry level allure.
*Escalade crossover and offer one pick-up.
*Cadillac roadster X-4 cylinder (alpha platform) with Solstice looks.
*Offer a GM exotics car club in major metro areas. Membership fees might be $!5,000 to $30,000 or more. This would allow members unlimited access to lease any of GM’s cars and include service programs. Vehicles would include the Cadillac Cien V-12.
II. AURA STAR by GM (new upper brand dealer name to consolidate Buick Pontiac GMC and Olds!)
Note: Model names rotate classics from Buick, Olds, and Pontiac. This plan drops the names Saturn, GMC, and HUMMER and incorporates them into the core nameplates. This plan makes brand names into model names and consolidates them under the AURA STAR brand by GM.
*Buick Star luxury sedan/Aurora rotation each model cycle (Sigma platform FWD) offering the 5.3 V-8 with active fuel management or other 300 hp V-8 standard equipment and 3800 V-6 option. Or possibly the 4.0L V-8 NorthStar. This top of the line beauty is a Buick for one model cycle then changes styles to olds for the next.
*Riviera /Toronado on a rotation 3.6L V-6.
*Olds Delta /Buick LaSabre model rotation (Impala based) – This is high volume seller with sharp looks, lots of truck room and head room.
*Enclave /Olds Star crossovers rotation with Acadia looks
*Buick Skylark sedan/G6 on a rotation.
Pontiac takes over Saturn (Saturn name dropped)
Pontiac Aura (the Star of the show) – This Pontiac (Holden platform) replaces the G8, it offers a V-6 and a 300 hp V-8 option.
Pontiac Outlook Star (takes over Saturn Outlook)
Pontiac Sport truck, the SUT.
Pontiac offers truck like the Colorado, Call it the Baja.
Pontiac Lemans, GTO coupe.
Pontiac Vibe
Firebird Bandit with base model called Firebird Star.
III. CHEVROLET
Malibu
Belle Air
Aveo
Cobalt
Camaro
Sting Ray (formerly Saturn Sky)
Corvette (place a Corvette dealer annex –with looks like Porshe dealer – onto large metro chevy dealers)
*Drop GMC nameplate and place under Chevy.
*Drop Saturn and place models under Chevrolet and Pontiac.
*Sell Hummer or keep possibly incorporate GMC into Hummer for professional grade.
Addendum to GM ethusiast proposal:
In addition to the branding strategy above. GM should offer two tracks of style within Cadillac that filter down to the other brands.
CADILLAC
Vertical stacked head lights for RTS and CTS
Diagonal teardrop head lights for all new MTS sedan.
AURA STAR by GM (new name consolidates upper brand names and offers GM classics as model names, Buick, Oldsmobile and Pontiac).
Vertical Stacked head lights – Pontiac model names like Lemans and GTO. Pontiac classics model retain Pontiac emblem, with engine having Aura Star logo.
Diagonal teardrop head lights – Buick Oldsmobile rotation of models. Buick and Olds models use AURO STAR logo inside and out which resembles the Oldsmobile Aurora logo.
CHEVROLET –
Diagonal teardrop headlights. Bow tie emblem.
Kofender says; “And if a customer dares to complain–well, it must be the customer’s fault (hey, shmuck, the car has 2000 miles on it–how did the catalytic converter die???)”.
We usually get what we give out. If we go to any dealership with this attitude, we’ll likely not be satisfied with the reaction. I speculate Kofender will find little better in any retail experience.
I don’t know many people with foriegn cars, probably because here in the US there are more American cars still on the road. that could be why we hear more stories, good and bad, about them. I’ve had GM cars for over 40 years. I had a problem with one, once. Luck of the draw, eh?
Just to reply to George Diebel, that was a direct quote from the Cadillac dealer after my car died at the 2000 mile mark. The service manager insisted I must have done something wrong when the car stopped working (yes, I was driving it at 55 mph on the parkway–how foolish of me). The car was less than three months old and only had just made the 2000 turn on the odometer. And he did indeed call me a shmuck (this is New York) and blamed me for a bad catalytic converter.
I’ll also point out it took 3 weeks for Cadillac to repair the car. This being New York, I managed to get along without the car by taking the subway and taxis, but I was still without a car.
My point was and still is that GM has perfected arrogance, and now it needs to learn a little humility. Coming to DC in the private jets was dumb but understandable. Assuming Congress would roll over and throw money at Rick Wagoner? That’s arrogance. And it comes from the top and seeps downward through upper and middle management.
I’d hate to see GM go Chapter 11, but it might have to do that if it runs out of money. And that leads me to a question: if any other company’s CEO presided over the loss of $2 billion per month, that CEO would be discharged by the board of directors without hesitation. Yet nothing like that seems to be happening. Two billion dollars a month is a lot of money to be losing. And yet GM is downright arrogant about it.
I don’t understand. I do understand why people hate GM. It created its own monster. It drove customers to Toyota, Honda, Nissan, BMW, MB, etc.
Don’t get rid of any brands. Keep Pontiac, Buick, GMC, Chevrolet, Cadillac, Saab, and Saturn. I think it is going to cost so much money to get rid of any of these brands and help this company.
Mr. LaNeve,
Crunch time is now. Changes must be made. Dump Pontiac. They have no identity. They should have been modeled after Mazda, but it’s too late now. Might as well dump Saturn, they are just a arm of Opel anyway. They should be the Lexus of small cars. Oh, that was the original plan. But that was trashed selling the problem champ re-badged Venture van. Can people get over the prior GM problems? I am waiting for my class action lawsuit money to help me with the HUGE mistake of the intake manifold problem. So many of my friends and me were burned by that gasket problem. If your product is so good now, WARRANT it. 6 years, 72,000 miles bumper to bumper. This is a must for survival. Please act now and please, get your cars off the Consumer Reports “not recommended” list.
Sheth, I was talking about consistency with dealers customer service levels and making them accountable to GM the way Saturn dealerships are. Right now with Chevy, for example, it’s a crap shoot as to how you’ll be treated at one of their dealerships. You may find three out of four dealers in your area treat you well. Why not go for four out of four? All I’m talking about are minimum enforceable standards imposed by GM. It’s that way with Saturn, which is why no matter which Saturn dealer you go to, you’ll have a similarly good experience in sales and service. Cadillac has made strides in this area, but the rest are quite inconsistent overall in how well they treat their customers. This might also be a way for GM to reduce their dealer count, as they could revoke the franchise for any dealer that doesn’t play by the rules. It would at the very least rid GM of the most troublesome dealerships.
I am disappointed to still hear harsh words American build quality from everyday folks. The Detroit Three did much to stain their image in the minds of the buying public here. Continued publicity in this area is key. It’s important for management to acknowledge their company’s failure in breaking the trust and confidence of the consumer for decades of folly.
I’m one of those who owned a GM car at least over 20 years ago, and based on that experience will to this day not consider buying another, regardless of the data about GM’s progress and quality. I owned that GM car — it was a Pontiac Grand Am — for exactly 7 months, and it was so plagued with problems that I sold it and bought a VW. Even if it’s true that GM has improved its products — and even after 20 years I remain suspicious — why in the world would I risk spending between $20,000 to $30,000 on a new vehicle from them when I have no qualms whatsoever considering the products of Honda or Toyota? Why take that risk when I don’t need to? My daughter still drives a Honda Civic I bought in 1992 that has over 247,000 miles on it, only requiring routine maintenance to keep it road worthy and safe.
My wife is in the market for a new car, she’s owned her Subaru Outback wagon for eight trouble-free years. Previously she owned GM and Ford products, but never kept any of those for more than three years because of their quality problems. Surely GM executives shouldn’t be surprised when potential customers like my wife refuse to even consider their products. It’s too large an financial gamble, especially in this economy. She’s shopping Toyota, Honda and Subura, won’t even look at advertisements for GM, Ford or Chrysler.
Bottom line: the American auto makers don’t deserve a buyout, sorry to say, but they do deserve the consequences of their decisions and the reputation of their history.
Mark Barnett
Taylor Mill, KY
I have always bought American made cars since I got my license, but now, I’m considering going to the foreign market. Why, for one simple little reason, You clowns quit putting built in ashtrays in your vehilces. Sounds stupid, doesn’t it? WELL, it isn’t. I have heard from other people that they bought foreign just for that reason. So, stick that in your pipe and think about it. Removing creature comforts to apease special interest grooups on just one more reason you guys are going down the *******! Remember, there are still millions of smokers out there tht buy cars, trucks, SUV’s,vans etc.
Dear GM,
I bought a Pontiac G8 GT in March, one of the first 888. It’s not just a good car, it’s a great car. I also own a GMC Denali Yukon XL, and it is also a great vehicle. But I am greatly disturbed to hear that GM is considering dropping Saturn, Saab, Pontiac, and Hummer. Do not do it. It won’t fix anything, and it will only ERODE CONFIDENCE. You have great cars, you are just fighting a lack of consumer confidence that you earned in the 70’s and 80’s.
I am the type of customer you need. I’m a loyal customer. You need to stop even discussing dropping brands. It’s the kiss of death for sales. I know I won’t be buying any more Pontiacs, and I won’t consider a Saturn, and I really want a Hummer but I won’t get one if you’re going to drop the brand. It’s just not cool to drive a failed brand. And if you drop the GM brands I like, I won’t be buying from other GM brands. I’ll go somewhere else.
I usually buy GM, except when you do not stay the course and quit trying, and you just quit. You quit making minivans, so we own a Honda. You quit making Camaros, so I bought a Ford Mustang. I used to own a ’96 Bonneville, a very good car, and you quit improving it, and gave up. The next generation Bonneville was not as good as the old one, and then you quit making it. You need to build on a brand, build on a name, and keep making it better. Instead, you drop names we all grew up with, and introduce cars and names of cars we’ve never heard of. Like my G8. It should be a Bonneville. How smart would it be for BMW to drop their 3 series and come up with something else?
Please stay the course and DO NOT DROP ANY BRANDS AND QUIT TALKING ABOUT IT. ADDRESS THE REAL PROBLEMS LIKE UNIONS, GAS MILEAGE AND RELIABILITY. If you keep talking about dropping brands, I know you eventually will, so I’ll sell my G8 and go buy a BMW.
By the way Sheth, when you said “This is like saying the Camry could be better if Toyota stopped making the Lexus ES350.” that’s not a fair comparison. The Aura and malibu (and G6 for that matter) are all in the same price range, going for the same customers. All three compete against the Fusion, Avenger, Galant, Altima and Accord. Your remark about the Impala and LaCrosse would have been more accurate as one car is clearly mainstream, while the other is a luxury car using the same platform, and most of the same mechanical parts. The Toyota and Lexus do not generally attract the same groups of customers. The GM cars do. Honestly the cost savings by GM selling 300,000 Malibus vs 300,000 of a blend of Malibu, Aura and G6 would be huge as there would be no need for tooling, advertising, or engineering of the variants to be sold under different brands. Were those cars actually substantially different, and merely built off of the same platform, you’d be right. They aren’t.
To Kevin Britton,
Very well said. Two thumbs up!
To Sheth,
Sorry to come across as a generalization about all dealers. True, there are some great GM dealers; when I lived in SoCal I went to a most wonderful GM dealer. Unfortunately not in the county I now reside. The Chevy dealers here are Mega Dealers – see Kevin Britton’s post above, that is exactly what we have here. I long for the single owner who depends on return customers for his livelyhood or at least a Mega Dealer who acts like a single owner.
I want GM to survive. I love my 2LT HHR. Oh yes, I drove a LaCrosse the other day…NICE vehicle.
Sincerely,
A very proud [IMG]http://i109.photobucket.com/albums/n66/MWG2/hhrowner.png[/IMG]
If you’ll want to shed some companies then shed GMC and keep Pontiac. I don’t think it makes much since to keep the full size truck and SUV clone brand (GMC) and get rid of both Saturn/Pontiac. It makes since to have Saab a global brand (leave them out of NA industry). You can have Buick Pontiac dealers; five Buick models (enclave, smaller CUV, a full size, a mid size, and a compact near luxury cars ie…Acura brand). Then you can have Pontiac models (the Solistice, the small rear wheel drive variants ie..Alpha platform, and G8 variants). I don’t see how the GMC brand will be able to meet the CAFE standards of the future even with hybrid/diesel/FlexFuel technology.
Dear GM execs,
My proposal for a new branding strategy is designed to reinvigorate GM’s classic brands and restore sales. It will succeed. As a GM enthusiast with GM’s best in mind, I favor keeping invigorating all GM classic brands, of course. GMC is still a great marketing device too, so there’s no need to drop it necessarily. We know GM makes the best cars in the world, so sales is the goal here. This addresses how to get there.
The flagships were great at Oldsmobile, it was the entry level and mid-level product that created the market gap. Oldsmobile should not have been cancelled. That’s right. I hear this from the faithful everywhere. And where was that entry level and mid-level investment money going at the time within GM when it should have been going to Oldsmobile, Buick, and Pontiac? Answer: The right solution is to disperse Saturn products among Pontiac, Buick, Oldsmobile, and Chevrolet as noted in my proposal above. Saturn consumers would buy the product in any division. Currently Saturn takes customers away from the flagship brands of Buick, Pontiac, and Chevrolet. Saturn could still be a model within Chevy.
With a stronger entry level and mid level product within a brand, this ultimately boosts the average reail for the flagship and boosts the profit for the brand overall. How could GM have expected to sell Aurora’s, a fantastic flagship with a weak mid-level offering and only one nice entry level offering, and only a few Olds dealers with no ads. The Aurora was a stand alone beauty. What Olds needed was a market leading Cutlass Supreme like the 1977 and 1984 Cutlass models.
An example of a strong mid-level car is the Malibu which resembles the 77 Cutlass profile. The Alero was fine, but it wasn’t well known.
In order to immediately boost sales, GM should take the existing Saturn line-up and place it into Pontiac and Chevrolet. Under my proposal, Saturn dealers would become Pontiac dealers or another of their chosing depending on what is in their market. This would make Pontiac a world class division. Pontiac would immediately have a full line of world class products at one dealer location.
The case for Pontiac is a strong one. Pontiac has the Firebird Bandit, the GTO, the Grand Prix, and many great cars for GM to lure consumers. Pontiacs emblem and logo colors look outstanding. What pontiac needs is product. Pontiac has pizzazz, performance, and presence. Pontiac needs a new grille design and some of its classic looks. The Saturn Astra would sell far better as a Pontiac. Saturn dealers should immediately become Pontiac, this would add a full world class line-up and give Pontiac an awesome dealer network.
The combined Buick – Pontiac – GMC dealers could remain even as Pontiac grows. Pontiac would also beable to have its own dealer network and launch the Pontiac brand all over America as it takes over Saturn.
Right now Saturn dealers by themselves aren’t everywhere. But if they became Pontiac dealers the combined network would be fantastic. Pontiac would immediately become a nationwide force.
Enthusiasts want to see Pontiac roar with product again. Saturn will never make it as a flagship enthusiast brand, that is a cold hard truth that GM needs to admit, because enthusiast and GM’s base want GM’s core brands of Pontiac, Buick, Oldsmobile, and Chevrolet, its what we want. GM needs to face up to this. Saturn detracts from profit and distracts from GM’s ultimate luxury focus. Saturn leads to nowhere for GM”s bottom line.
At the combined Buick – Pontiac – GMC dealers, my thought for the name Aura Star on the main sign was to illustrate that the flag ship for Pontiac and Buick could be placed on the Dealer sign to elevate the the prestige of the flagship within Pontiac and Buick.
Pontiac Aura would be the flag ship Pontiac, instead of the name G8 for example.
Buick Star would be the flag ship Buick, instead of Lucerne for example.
The precise names for the flag ships are not the issue. The point is to illustrate a way to create vision and unity for a combined dealership and invigorate the GM’s core brands at the same time. The flag ship name could just as easily be Ultra Star or North Star.
I prefer to see GM’s core brands leading the market. And I would do what it takes to get them there.
GM’s core brands have a profit potential and many names which to build upon. Chevrolet’s launch of the new Camaro is very important, even in this economic slow down. GM enthusiasts are excited about the potential Firebird Bandit, a new classic GTO.
GM’s core customers are hoping for a new Riviera as well. Names like the Olds 442, the Toronado, Cutlass raise the ears and eyes of the faithful who are hoping to see great designs emerge from GM.
The propensity to trade is driven by excitement for new models. GM created the mid-size coupe market in the 1960s, 70s, and 80s. Design helps drive GM’s success.
The American auto companies can lead the US out of a recession very quickly. And we’re behind you all the way.
If the Motor City fails, it will not fail to destroy the economy.
Mr LaNeve,
Get well and 110% recovered!
Keep Chevy, Caddy, Opel and Holden
Dont overlap the brands.
Drive GM to become a real reinvetion. Think like Apple, Coke and Nike. Concetrate on product development. marketing, sales and service.
Give away ( 100% free ) all GM plants to Toyota and pay them to produce and put the best available quality on the best projects ever done by GM.
No job crisis. Transfer all GM people from manufacturing, quality and purchasing to Toyota payroll and get rid of this legacy cost. Tell the union it will be this plan or Chapter 11, what do you guys prefer?
Toyota will love this deal and make a ton of money by producing GM cars.
10 years from now GM will have enough money to buy the entire worldwide auto industry and the plants if you want.
Make GM become again a trendsetter!
Regards,
CASR
Chris R,
Well said. I hope someone important is reading this. It’s always bugged me that it seems to be really difficult to provide feedback about a dealer unelss you end up buying the car from them. Surveys following sales are good, but feedback following NON-sales are more valuable, IMO.
To Mark Bennett,
You asked why you should (re)consider a domestic product when you can get a good car from an Asian manufacturer.
Off the top of my head, I can think of a couple reasons. First, the warranty costs for the Asian manufacturers are on the way up, not down — Toyota has had a large number of recalls as they have begun adopting the common parts philosophy. Meanwhile, GM’s warranty costs are going DOWN (we’ve already gone through those growing pains), even while the warranty coverage periods get longer! Obviously we’re doing something right.
I’m not saying the Asian manufacturers don’t still have good quality — I’d be an idiot of I tried to claim that. So, my next argument is that you should consider a “support those who support you” strategy. I don’t know where you’re from, but it doesn’t really matter where. Domestic content on GM vehicles is substantially higher than it is on an Asian vehicle — even one that’s assembled here in the US. That means parts on the GM product are coming from inside the US — supporting tax dollars and government programs here. GM invests BILLIONS more in the US economy than other manufacturers. They’re also on the forefront to provide aid and support to Americans who are struggling — just look at the donations made by the GM Foundation for Hurricane Relief, after 9/11, etc. And if you happen to live in the U.S., that type of thing should matter to you.
In the end, take a good look at your community. What companies (automotive AND non-automotive) support you and those around you? Shouldn’t you support them in turn….especially if you can get a comparable product at a competitive price?
Kevin Britton
I am the guy who owns the 99 Century – ever heard the phrase “fool me once..”. Having all four window regulators failing within the first few years of ownership should be an embarrassment to GM – Google “Buick window failure”. FYI, some of us do not buy cars every year – I only buy them when needed and since all but one of the cars I have ever owned surpassed the 180K mile mark that is not very often. I have driven current GM products, my father has an 04 Envoy – I like my “old” gen one Bravada MUCH better. Heck, when given the option I would rather drive his ‘96 Roadmaster over that Envoy. I would also like to point out that your computer analogy is flawed, you cannot compare apples to oranges. Also, just so you don’t think I am a Luddite, the ‘69 Ford I am going back to will be powered by a modern lump complete with fuel injection.
Charles…are you kidding me? I’ll bet everything you buy and consume is made in China. Boy…you are the 1st prize winner of being anti-amercian if I’ve ever met one. Your comments are unjustified. I’m at a loss of words to decribe how I feel about what you have written about GM. I’ll bet every dealership employee runs the other direction when they see you come through the front door. The Imports are not as good as you think they are…I owned one…but not any more. Have you been in a Camry lately? What an over rated POS! Plastic…that car is the poster child of plastic! Are you a Senator in DC? Man, you are misinformed…do your homework…then do some more. I have been in the automotive business for 27-years. I have been around the imports and domestic’s. GM has NOTHING to apoloize for. This credit crunch has affected this country in way that no one expected. Why don’t you write a love letter to the brain trusts of AIG and the others on wall street that have totally screwed over our US ecomony. GM will survive! If you think for a minute that our country is better off without the Big-3, you need to wake up! Believe the video, that is the reality of what will happen. Do you also think the stars and strips should be replaced with a rising sun? Don’t answer that…I think most of us already know where your head is at on that one. Good luck to you!
Forrest Daniel,
I disagree with you. GM Does need to find a few names and stick with them… it doesn’t matter what they are as long as they have a few new names in there all the time. A decent portion of GM’s potential customers have had bad buying experiences and they wont’ buy a car because of its name and it being a GM. GM needs to make new names and make a product to fill the name and then back that up with a commitment to quality not cost cutting. Today’s market is different and GM has finally figured that out.
There are customers who only want old cars names.. but really does it matter if its a good car?
As far as Brands.. GM needs to get rid of the un-needed ones.. mainly chevy and pontiac. Again the name doesn’t’ matter too much but the logos and looks and styling matter to a lot of GM’s target customers (not to their die hard customers). The problem is that a lot of customers dont’ want GM to hide a car with a new name and badge. They want one car thats quality built. And from a business standpoint its expensive to market several cars with the same platform but enough differences to need marketing and other resources like engineering etc… GM jsut can’t afford that right now…
If people want a Camaro GM should Sell a Camaro, if they want a Firebird they should look at a high end Camaro….. Not both.
GM needs to drop brands to regain market share and to survive.
Hello to those that care,
I have bought GM vehicles all my life. Last year I bought a brand new Yukon and paid 30% down. I paid payments for 1.5 yr now and my vehicle lost 60% of it’s value. I know vehicles are not an investment, but it seems I threw good money after bad. What happened to the GM vehicles produced in 2007? Were they made of paper? I am absolutely furious and stuck in a scam that has a legal rubber stamp on it. How is this related to the other crisis happening? How can I support GM?
Thank you.
LL
Liliana,
The value of most truck and SUV models has plummeted in the last year or so. I don’t think your problem is unique to your SUV. I don’t think Titans and Armadas are holding their value too well in this market. Dealers really don’t want large SUVs for trade ins these days because there are few buyers.
ChrisR:
You have failed to explain where the huge savings would come from. The point of building different vehicles on the same platform is to have unique looking vehicles that share parts and an assembly line. I don’t believe you have to substantially change a plant to build two vehicles off the same architecture. As for advertising I would suggest that total ad expenditures would stay about the same. If GM stops advertising for the G6 or Aura I would assume they would increase ad spending on the Malibu to help maintain the same level of marketshare in the midsize segment. Contrary to what you stated the three GM sedans we are discussing are on the same platform. Their differences are primarily cosmetic. Cutting brands will only work if the remaing brands pick up the sales slack and there is some palpable improvement in future vehicles that can be tied to the increase in resources that resuled from cancelling brands. I do not believe killing brands will have any short term benefit and it would inevitably lead to Toyota becoming the #1 automaker in the US market.
you may feel a second-half comeback coming on…… but you just lost yet another customer!
After purchasing numerous GM vehicles, in support of the local economy, I have finally given up on them. You have finally lost my allegiance.
My car sits in a repair bay, for a week now, waiting for stock parts to be delivered from a Lansing depot – not more than 2 hours away. And this is after I authorized an additional $50 charge for overnight delivery.
I can well afford the purchase price of another GM vehicle but I won’t stand the direct and incidental cost of ownership. How dumb do you think I am?
To the many who included strong words of validation and support – Thank You.
To the many who provided criticism, thought provoking ideas or downright hostility – Thank You too. Passion is good – it’s apathy that is hard to deal with.
By way of response I am enclosing numerous links/attachments of letters and articles from people other than myself. Hopefully this helps to frame the issue more clearly from the outside rather than from me, inside GM.
One thing is clear – we are living history right now. I still remain confident that the next chapter will be a very good one for GM, our industry and our country.
Here are the links:
Huffington Post
MSNBC
Seeking Alpha
Washington Post
Mark- The Big 3 is not doing enough to get the right story and the right facts of the story out to the public. It is frightening that the mainstream media and the infotainment programs have so many of the pundits on their programs that do not have the correct facts. They keep stirring up the negative history and are not focusing on what is today.
What happended to the PR at GM? What happened to PR at Ford and Chrysler? We cannot keep preaching to ourselves with internal communications and expect the consumer to be informed. Lets get out in the public forum and start making the right noise LOUDLY AN OFTEN! The Big 3 know influencial 3rd party people who should be beating the doors down to get on TV, on the Radio, and in the newspapers to save manufacutring in this country.
We are on the verge of losing the middle class in the USA due to a lack of a 21st Century USA Manufacturig Strategy and all we see thru the media is how bad the Big 3 is behaving. The Big 3 have made the middle class in this country, helped win a World War, and kept Americal Rolling financialy after 911 and do have strategies and tactics to carry the business forward but not without some support.
We need the Big 3, everyone in the auto industry, the 3rd party influencers and the comsumer to all be supporting the same outcome…..a level playing field for the American Consumer who supports manufacuturing in this country and a viable Domestic Automobile Industry.
On another note…….hope you are healing and will soon be back to work.
Patricia Roberts (I guess I can also be called a Legacy Cost because after 39 years of devoting my work life to the auto industry, I am now retired and hope I can stay retired)
Mark Barnett said: “Even if it’s true that GM has improved its products — and even after 20 years I remain suspicious — why in the world would I risk spending between $20,000 to $30,000 on a new vehicle from them when I have no qualms whatsoever considering the products of Honda or Toyota?”
Mark LaNeve,
There is an important kernel of truth in Mark Barnett’s remark: How do you get someone who has been burned by GM over the last two decades — and who hasn’t been — to take a second chance , especially when they have to put $20,000, $30,000 or more on the line to do that? You’re asking people who have been past burned to take a big chance, when they know they can go down the street and buy a Toyota or Honda and have a good chance of being satisfied.
A money back guarantee
The way to do that is with a money back guarantee. You need an initiative where if after driving a new GM car for 90 days the customer is not satisfied, GM will buy the car back. (Minus some value for miles driven and wear and tear on the car.) No questions asked.
That would put people in your cars and give you a legitimate chance to change their perceptions of GM quality.
If you have true confidence in the improved quality of your cars, you should be willing to do that. If GM’s senior leaders don’t have confidence in the quality of their cars, they would of course reject such an idea.
Mark,
Can you provide to us a concise list of the 20 GM cars that get more than 30 mpg? I’d like to see how many are distinct cars and how many are re-badges that allow you to count what is really the same car twice in order to come up with 20.
I could do the drudge work myself, but you, as a GM VP, should have that information at the tip of your fingers, or at least be able to task one of your staff to get it for us.
Regards,
Ben
Nate,
Your off the mark with your brand analysis. Why not advocate getting rid of the Camry or Accord and combining them into one, having two is just duplication, etc. Reality is the Malibu is a better car than either of them.
Customers trust GM quality, but they buy design and the brands which carry that alure. Forrest Daniel’s testimony is right on. The Pontiac G8 has won out over the BMW, its a victory for GM. The latest Pontiac GTO, even though it wasn’t well known, sold better than its BMW counterpart model.
I do agree that GM is missing luxury business though as you noted on another occasion, but the way to achieve more luxury is to build GM”s strengthen GM’s core brands in order to market its flagship luxury cars effectively.
GM’s flagships help the company’s bottom line. Thus GM must focus on invigorating its core brands first instead of going off on a tangent with Saturn. From an outsider enthusiast perspective, Saturn is the monkey wrench in the system that takes investment away from the core brands.
Pontiac should take over Saturn as noted above. Saturn dealers are scattered here and there, somethimes you can’t even find them. Pontiac should take them over and become a nation wide force within which to market Pontiac’s flagship models. Saturn’s entry level and mid-level product should go to Pontiac and Chevy.
Chevy has great names like the Sting Ray that could be used for the Saturn Sky. Now just imagine for a moment how many millions of Saturn Skys would already be sold if it had been named a Chevy Sting Ray. Whoever heard of the Saturn Sky? The Sky is about like whistling along and listening to a Subaru commerical, but it doesn’t get the attention it would if it were a Chevy Sting Ray. By the time people figure out what the Saturn Sky is and try to find out where to buy one, it’ll already time to change models again. One of my colleages bought a Saturn Sky, it drew lots of attention on Campus, but people had to stop and try to figure out what it was. Also, when new GM customers ask GM enthusiasts about Saturn, they may say, well they do use Chevy engines and they have the good quality like Chevy and Pontiac. So the new GM customer feels confident. People know Chevy and Pontiac have the high quality engines.
Then where on earth are the Saturn dealers? Well, there’s one in this little town over here and one in that little town over there about 50 miles away. Saturn has no luxury models and GM’s base customers only look at Saturn’s when they can’t find a small Chevy, Pontiac, or Buick. GM customers are desperate for GM to give them style. The Saturn Vue did bring brand attention, but it if it were a Pontiac it would sell better and help sell the G8, building up a core brand. Scattering the good looking designs like the VUE and the Astra off into Saturn somewhere makes no sense whatsoever, when these good looking styles would sell better as Pontiacs in a real nationwide dealer network.
Camaro and Firebird offer choice in order to keep the customer from going to outside brands. The new Camaro and the potential Firebird bandit are different customers. The Firebird bandit will energize the small car enthusiast. The Camaro will energize the classic coupe enthusiast.
Sheth, I believe I did describe why minimizing brands and models is a good idea. Simply put, more money would then be available for a single model than would be available if GM were developing three nearly identical vehicles off of the same platform. Improvements would be fairly immediate as the engineers and designers would have more resources to devote to improvements to the existing model, as well as developing the model that replaces it, as those resources would not be used for the development of similar models from GM. Advertising for the one model would also increase to levels comparable or greater than competing models from other companies. As it is, the new Malibu is only getting one third of the exposure in advertising that it could be getting. This sort of thing works incredibly well for Ford, Toyota, Honda, and Volkswagen to name a few. Why are you so resistant to the notion that it could work well for GM? Chrysler is even heading in this direction (assuming they survive). Right now there are more companies than ever that are selling cars and trucks in the US. It is impossible for GM to regain the 50% of this market that they one enjoyed. It just isn’t going to happen. So, GM must accept that fact and make some difficult adjustments. That means ridding itself of everything but it’s core brands of Chevy, Cadillac and their heavy truck and bus divisions in the US market.
I am a GM supporter,driver and Chevy dealer employee. I really hope you guys pull through this. I am loving my 07 HHR quite a bit and hoping to buy an SS HHR next year….depending on things of course……I have to say I am getting emotionally drained defending GM on blogs, worrying about my job, worrying about the economy…….Its all stressful on all of us.
My dealer is like a ghost town lately and layoffs have been going on….I am hoping we can hang on and not close up. Dealers are closing fast in this area from Ford to GM and even a Hyundai/Kia store last week. Its downright scary. I hope Rick pulls a rabbit of GM’s hat and can convince Congress to help out…..If GM files CH 11……..I forsee most GM dealers closing up one after one……It would be horrible. After 22 years,I dont want to lose my job…..there are NO jobs in the auto industry and to be honest,if I lost my job, I would eventually try to get out of the business altogether….if it came down to being unemployed for a long time…..
I still belive in GM and I want you guys to show the US that your cars are as good or better than some imports.
I do feel maybe Saturn may have to go,maybe combine some models into Chevys lineup….Saab should go…..Hummer…the novelty has worn off……Pontiac may have to go……GMC……theres an interesting one…..I (and most other GM guys)feel that GM just competes against themselves with GMC…..WHY make almost identical models???? Axe GMC…..combine the Denali/Yukon upscale packages into an option on the Silverado models. Same truck,different badging and trim options….its not rocket science…..just offer a Silverado with the Denali option…..it can be done.
Also,I know this has been said….but quit the rebadging……again…..the competition is the imports right now,no need to put GM against GM…….
Again,I really hope you guys pull through…for my sake….for the millions of other jobs that depend on you…and for the countrys sake………somehow, Baseball,Apple Pie and Honda just does not sound good to me…….You?
“GM must focus on invigorating its core brands first instead of going off on a tangent with Saturn. From an outsider enthusiast perspective, Saturn is the monkey wrench in the system that takes investment away from the core brands.
Pontiac should take over Saturn as noted above. Saturn dealers are scattered here and there, sometimes you can’t even find them.”
Edwin,
Sorry, but have to disagree with you about Saturn. It’s not the monkey wrench, GM has just been marketing it wrong. What GM should do with the Saturn name is make it go away and instead relabel the Saturn dealers as Opel dealers and call all the Saturns what they really are — Opels.
GM has a good product line in Opel and they should take advantage of it in the U.S. They should market the Opel as their “Euro-car” designed and built with Teutonic precision. A car as equally at home on the narrow winding streets of quaint European villages as on the Autobahn at 160 kph. A car designed for Europe where fuel prices long ago exceeded $7 and $8 a gallon.
I have to agree with Doug on this one.
the whole idea of focusing on “core” brands is bull
Why is GMC considered a core brand when all it is is rebadged chevy trucks??
Saturn needs to become the “euro-car” if it is going to be successful.
Pontiac?? well….. with chevy and saturn as a “euro-brand”… Pontiac can be gone.
Buick is successful in China, thats pretty much it.
GMC? Dead.
What you guys REALLY miss the boat on is SAAB. Saab provides (and has in the past) numerous assets for GM. What automaker in the world makes better quality small turbo’d cars???? and better yet, turbo diesels!!! Saab has great potential, the only thing it lacks is proper funding from daddy GM.
Doug Nidermeyer,
I think Saturn should be kept as a low cost division.. perhaps find a new name for it… but Opel should be brought in to compete with the high end Lexus, Infiniti, Acura, Audi, BMW lines. The new cars Opel is making are worthy of that AND the emblem design looks like it belongs on a high class car.
Edwin,
The Malibu may be a better car but PLEASE get that ugly bow tie off it it is hideous. If GM were to rebadge the Malibu as say an Opel with their neat looking logo it would make the car seem about 3 levels more classy then it is.
Customers trust GM quality? I don’t follow that a bit. I buy GM because I know what breaks and when. All of our GM cars have the SAME issues so at least I have the tools and already know how to fix them. That doesn’t say much for quality when people I know who drive Toyotas and Hondas have their cars for 10+ years with over 200K miles on them and only have to change oil, brakes, and tires.
GM needs to ax Chevy to get rid of that cheap image they have so any NEW quality they might have built into the new cars has a chance at getting inside the minds of Toyota and Honda owners who might consider buying a “new” brand car that doesn’t stir up such strong memories of the old ones they owned at one time.
Sure a GTO and G8 sell better.. they are offered now at any rental agency AND they are cheaper. Do the math on that one.
GM needs to shed its brands with bad images. Chevy, Pontiac, GMC, Hummer are all ones that need to go. Some of them just need to go because they are un needed (like GMC). Chevy needs to go because it screams CHEAP JUNK.
Look at the competition: Toyota, Honda, Nissan, VW, Mazda, Scion… none of them scream CHEAP JUNK to me… not the way Ford, Chrysler and GM do. New brands will fix the problem.
Sting Ray? Are you serious? Thats a Corvette name that doesn’t even come close to fitting the personality of the Sky. How about the G3 or G4?
If you named it a Sting Ray Corvette fans would be pretty upset… it has no V8. How about GM drop the Volt drive train in it and call it the Chevy Flash…. ok still lame but you get the idea.
Having people stop to figure out what it is is a GOOD thing for GM. It means people are looking at the car because they like it. To hell with the badge… they should say “What is that logo? Is that a new car company” If that happens people wont’ even associate the car with GM… Then all GM has to do is make sure the car doesn’t act like a typical GM and is a great car for their customers. People on this blog seem to miss this fact.
Chevy and Pontiac have the high quality engines? Where did you get this idea from? All the engines are the SAME. In fact Chevy has the lowest engines of all of GM. They put 4 cylinders in them. While their other brands V6s are standard.
Do you really think the drive is going to stop people from buying? It hasn’t stopped the Toyota and Honda dealerships…
The Saturn Vue used to also be a Pontiac Torrent.
GM Can keep one car and still offer choice. Look at how BMW does it.. they offer what 4 models of 3 series? All with different engines, interior trims and suspensions. GM NEEDS to do the same.
Chris R,
I agree with most of what you say except which brands to Ax. GM needs to keep Saturn, Buick, Caddy, Corvette and Their Trucks. Chevy and Pontiac need to go.
GM DEALER GUY,
I’m sorry to hear about your situation. However maybe instead of a new car you should consider training for a new career. From everything I can tell there are just to many dealers trying to sell to many cars right now. Sure its stressful but its better to be proactive then reactive isn’t it?
If I were to lose my job tomorrow you can better believe that I’d be out there training for a new one or going to school somewhere.
Sorry Chevy needs to go, Keep Saturn, Caddy, Buick and Corvette. Chevy just has a bad reputation in my opinion.
As a retired employee with 32yrs, it makes me sick how much the media allows the slamming of our industry.I worked on the floor in the factory for many years, and saw the company win award after award for their quality. I have always been proud of General Motors products. The mayor of Lansing Mich.was right when he said how unfair the Government has been, in allowing unfair market share, and that we are not just fighting other companies, but other countries. They don’t care about us.Job after job going over seas. This our industry, and we need more people to realize that! Those import companies would like nothing more than see the big three go under. Woudn’t that be a disgrace, not to mention a tragedy.
Mr. LaNeve,
I’m impressed with your additional blog above. That means you read what we all write. Your response was excellent, and I agree, apathy is hard to deal with and it is not what makes America strong.
I have to state that there are some very good ideas presented in this Blog and I sincerely hope you along with other executives consider some of the ideas presented here.
Get better, heal quickly and come back to help make GM a strong, viable leader in the auto industry.
And SHETH…No more blogs about Dealers and customer service.
)
I’ve said it before and I will say it again…I love my 2007 2LT HHR.
Kindest regards,
–MWG2
TO NATE:
Chevy go?? I dont agree with that at all. Chevy is one of the most popular brands GM has…….And keep Corvette??? Corvette IS a chevy…………..
As far as me……For the last 2 years I have been contemplating a career change…to an an Ultra Sound tech in a hospital……..I have been with GM for 22 years and changing careers is easier said than done….I guess I am just waiting to see what happens. Everyones situation is different. I dont live like a king by any means,I cant take a huge paycut right now to switch careers….unless of course I lose my job,than I have no choice. GM has been good to me,at least as far as working for dealers goes. Like many in my position,I am going to ride it out for as long as I can and hope things turn around…..if not….then I will do what I need to do…..
Nate,
Agree, the Opel brand logo is much more distinctive and impressive than the Chevy bow tie. Why can’t (won’t) GM take advantage of that in North America?
Don’t agree that Opel should be only a high end brand to compete with Lexus, Infiniti, et al. Opel has very good lower end models that would fill a niche here ~ especially the turbo-charged diesel versions of its small four-seaters and hatchbacks.
It is still my opinion that GM should change the signs on their Saturn dealers to read “Opel” and sell their Opel “Euro-cars” there.
The congressional report is out and it does an excellent job depicting the progress GM has made over the last few years. It Also dispells several of the myths about GM displayed on this blog. For all you toyota lovers answer me this question. How come when Toyota has massive recalls on their products it is always in small print in the back of the newspapers? I have seen alot of Toyota and Honda drivers stranded on the side of the road. How do they feel about their products. All you foriegn vehicle supporters remind me of the little birds picking on a large crow. I think you will find that GM is transforming from the crow of the 70s,80s into an Eagle. This Eagle is the symbol of American Manufacturing by an American Company. I dont recall too many Eagles being picked on by the little birds. I have an Idea, If you still want to show a rebelious nature why not Take the Toyota or Honda Emblem off you POS foriegn car and paste it on a real Car Like a new Malibu or the crossover Buick Enclave. Show that to your friends so they can see how kewl you still are.
who gets 95 percent of pay laid off? it is 30 hours layoff with sub pay. i see this on the news and twice on this page. is it some other state or entity? that is not true here in mi.
Nate,
Chevy is typically among the best selling brands in America, your analysis is obviously way off. GM brands and the most respected nams in the world.
Why not promote the elimation of the foreign brands propped up by Japanese banks, (banks by the way which have been propped up by the US federal reserve when they were in crisis).
There are plenty of American cars out there with high mileage. We have new and old GM cars and they all perform wonderfully. One, a 93 Chevy Camaro, has gone way over 300,000 miles. Oh and then there’s my ‘87 Firebird with a V-8 which looks like it just rolled off the showroom floor inside and out, and it runs better than a brand new car from the foreign competition. It gets wows and ahs on Campus from young and old alike. The V-8 gets good gas mileage too and uses regual 87 octane.
Our NorthStar Cadillac is fantastic. Or Maybe you’d like to know about how well the Chevy Cavalier Z-24 4 cyclinder performed as a college car, what a great small car. It looked and ran wonderfully and got a great price on resale. On a holiday when the family comes over, our street looks like a GM car festival, with a couple of Fords and a Jeep.
One by one, our neigbors are switching to American cars.
Also, run into Toyota and Honda owners all the time who have serious problems with their vehicles.
One of my colleagues has an Acura, and when asked if had problems, he admitted that the car had transmission problems. Interesting, since their is a petition online with Acura/Honda owners complaining of tramission problems. When I noted that we’ve never had any problems like that with GM, he said, that he also preferred GM products.
When visiting an Acura dealer, an angry customer walked in and chewed the salesman out for selling him a new vehicle with a bad transmission. The salesman was trying to share the training propaganda about Acura being filled with technology. The scene was one of the funniest things I’ve ever seen. These don’t seem to be isolated incidents.
Engineers pretty much know that GM has among the best powertrains in the world.
Recall the news about the Toyota flap over oil sludge and engines freezing up? Went in for a haircut one and the Salon owner was noticably upset on the phone, her Camry engine had locked up and it turned out to be oil sludge. She was about pay for a new engine. I asked her if she knew that their had been a settlement about that issue and she had no idea. I pulled up the website for her and printed the information and she was able to get reimbursed but how many others had to buy a new engine?
There has never been a time when the foreign auto makers had better quality overall. Its simply a myth perpetuated by those who are jealous of the American auto industry’s successes. Its a staw man used by the drive by media to explain sales declines which are typically a function of marketing an design. The foreign auto makers tend to mainly gain when the US is in recession, when the US economy is good, the American auto companies gain. There have been a lot of styling issues and marketing gaffe’s by American auto companies as well as unfunded gov’t mandates that caused them to make ugly bubble cars that hurt sales and profits though.
The lame stream media uses a US recession for their anti-American brouhaa. Let’s hope the people are becoming wise to that game.
The Chevrolet bow tie is among the most distinctive emblems in the world. It came from the race car driver Louis Chevrolet. In fact, GM wins more races consistently than Toyota, Honda, or Nissan.
The Chevy name shouts success. Its one of the world’s best cars. The auto enthusiasts are shouting for GM to make a new classic GTO, Firebird bandit, and much more.
Why when one goes to car enthusiast events, American brands are proudly displayed and admired, so the truth is obviously in favor of the American auto industry.
So, there’s really no basis for the sort of anti-American myths put out by the foreign lobby.
My neighbor’s new Corvette convertable gets 34 mpg on cruise control using regular 87 octane gas. That is a painful truth for the anti-American crowd. Especially when the Corvette can outperform exotic foreign rivals.
Chevy Sting Ray would be a perfect name for the Saturn Sky. Even the name Chevy Stinger would work well. The Corvette owners woudn’t mind one bit, or much less notice, since it helps nostalgia among upcoming buyers.
Saturn is the brand that needs to go, and your analysis should only serve to make it all more obvious.
Saturn is merely a drain on investment to GM’s core brands which are more popular and well known and represent 83 percent of sales.
——————————-
Doug Niedermeyer,
Opel? Opel has no meaning whatsoever in North America, except that its known for making the first Catera engine, not particullarly noteworthy within GM enthusiast circles.
————————–
I come from a two generation GM family with many family members contributing over 150 years of service. I have to say that I have had several recent experiences with very poor GM quality that has left me stranded by the road. I have a 2006 Chevy Trailblazer that had a bad starter at 60K; a failed fuel pump at 70K; and a seized water pump that left me stranded out on the road in another state at 75K. I get asked “Did you buy the extended warranty?” Well, Mr. LeNave why should I have to do that? My daughter’s 2003 Grand Am had the failed intake manifold gasket that GM would never recall and had to be taken to court for a class action lawsuit. Each repair is $700-1000. Maybe the initial quality in the first year has improved, but the poor poor quality of Delphi parts from the plants in Mexico leads to very dissatified customers at 60K and over miles!!! If my father wouldn’t disown me, I would definitely buy something other than a GM product!
Nate, GM DEALER GUY is correct. Chevy can’t go. The bulk of GM sales are from Chevy if comparing sales from different divisions or “brands”. Chevy is also completely a full line division, having vehicles in every niche except luxury. That’s where Cadillac comes in. Cadillac is more and more aligning itself to compete directly with BMW, Mercedes-Benz, Lexus and Infiniti and compete well. Buick isn’t going to be retooled to compete directly against Audi and Acura, and it doesn’t look like SAAB will be given the green light to do that either (even though SAAB would have a better chance at doing so). I agree with you that Saturn should be called Opel. It’s what they are now, and they could start offering the entire Opel line here as most Opels are or can be, in the case of the Astra, made in the US, Canada or Mexico.
Mark,
Good to see someone within GM come up with the correct analysis that the problem is a perception issue. Maybe people inside are actually reading our comments, since I posted here a month ago the same thought.
Next topic to focus on: end the pointless model renaming.
Please, Mr. LaNave, don’t insult us. I can’t believe GM is looking for government help when GM is not even doing what it can for its customers as part of a major turnaround. GM has at least several hundred thousand units out there, if not a million, that would sell rapidly if GM would do just one simple thing….temporarily lift all GM Card vehicle redemption limits. Families in tough times seeing $3000 earned in GM Card points would change their buying decision from NO to YES if they could cash in all $3000, not just $750 or $1000 or at best $2000. There are countless families like this, who not only would buy if the limmits were eliminated or suspended, but it would also resolve an ongoing customer service / deceptive practice issue that thousands of customers have contacted States’ attorney’s over…to wit, the way GM Card eniticed so many people to the new card (with redemption limits) and then within months dropped all of the other incentives that got people to switch. Can you say “bait and switch tactic?” GM NEEDS a portion of their recovery to be A) immediate, and B) from customers. There was little or nothing of that nature in Mr. Wagoner’s report. So, tell Kirk Jacobson and Colette McDonald to relax for a while and drop the GM Card vehicle redemption limits for 3 months, one time only, end-date firm. It WILL move vehicles. This would accomplish several things: helps GM, helps GM employees, helps GM dealers, helps GM suppliers, generates local and federal taxes, stimulates the economy, infuses cash into GM and primes the production pump, resolves the ongoing bad-image GM Card fraud issue, uses NO new money (either GM or govt.) since these earnings are already earned and earmarked, etc. etc. etc. It is a brilliant idea that represent a NEW GM. Plus, it would be a bold move unlike anything Ford or Chrysler have mentioned. No one is talking about main street being a part of this recovery.
It’s simple. Take this message to the powers that be: Suspend GM Card Vehicle Redemption Limits for a limited time = certain sale of hundreds of thousands or millions of vehicles off the lots.
Thanks.
This may be off subject but i could not find a chanel (or path) to get my thoughts in to GM ears.
Cutting some of the brand lines is a viable idea but it is very importent that the correct lines are cut.
Hummer should NOT be sold! but it should get a massive down sizing. Yes it is a slow mover now due to the roller coaster fuel cost but it is imperative that the leaders (Wagner) see the Now and look tward the Future at the same time, that’s why they (the executives) are paid the big bucks or are given the power to lead.
I believe it would be best for us (GM) to put the Hummer name plate in a very deep deep hibernation rather than selling it off, because if it is sold it is GONE! for good!
In the short amount of time that GM has owned Hummer it has grown to be a world icon.
There will be a time where the world not just the U.S.A. will what and need a true world traveler and the Hummer could fill the need.
Will GM have the foresight to keep the ace we now have, or will we panic and shot ourselves in the foot again?
I understand the plan is to trim the brands down to four: Chevy, Buick, Cadillac, and GMC.
That will work, unless the Cadillacs and Buicks are all simply rebadged Chevys.
Or, eleven platforms, eight brands:
1 * Gamma – subcompact FWD- Saturn (Opel)
2 * Kappa – compact RWD- Pontiac
3 * Delta – compact FWD- Saturn
4 * Alpha – smaller midsize RWD- Pontiac
5 * Epsilon – midsize FWD- Chevrolet
6 * Sigma – midsize RWD- Buick
7 * Zeta – midsize/fullsize RWD- Cadillac
8 * Theta – crossover SUV AWD- Chevrolet
9 * Lambda – crossover FWD/AWD- Cadillac
10 * GMT – trucks RWD- GMC
11 * E-Flex – fuel cell-based- Cadillac
Each brand could have a unique identity. Each brand could have the value and prestige of a unique platform and architecture. No more “badge engineering,” no more Roger Smith -style “cookie-cutter cars,” no more pointless competition between brands.
As I watch this loan/bailout issue stall in Congress,I cant help but REALLY fear my job will be lost at my Chevy dealer.I want GM to succeed. Like I mentioned earlier,I drive GM and never had an issue where I got stuck,ot my car fell apart as some people mention. All my cars went hi miles and served me greatly. The import myth is exactly that…..they are not that much better. I come from a LARGE auto group. We have Chevy,Ford,Subaru,Honda,Hyundai,Kia,Toyota,Scion,Nissan and Acura. Owned by same owner,most are separate stores. Let me tell you people……The imports DO HAVE PROBLEMS too. Toyota has more recalls than GM does. Acura’s TL model has transmissions problems…..It still amazes me how people have such animosity towards the domestic companies. Its almost sadistic the way they hope for our demise and millions more out of work.Unreal.
On another note,something I have asked about and talked with my co workers about is the GMC-Chevy truck deal. I stand by the fact that you should close GMC and just offer those more upscale trims such as Denali as optional packages for the Silverado. They are the same truck after all. I watched the video with Fritz yesterday and he was taking questions via email and one question was exactly what I asked above……Well I dont know if Fritz is clueless or just evasive but he didnt see it……his words were that the Chevy and GMC are not the same trucks…..WHAT!!!???? I have to say that was disturbing to me. Your either being blind,out of touch or evasive.
As far as Congressman go….most of them are driven to and from work in…..Tahoes/Suburbans,Caddys or Lincolns……Nice!!! Hypocrites…..They are the ones crying for green cars……yet they have no problem taking rides in our cars…….
They had no problem giving 700 Billion to the banks who started this whole mess in the first place…….yet to save the big 3,they get the 3rd degree….I didnt see AIG or the banks presenting a gameplan to Congress…..
MSN and the media are not the domestics friend……they love stirring up the publics hatred…..
Anyway, I am a GM driver and an employee and I stand behind the products….I really hope you make it becuse if you dont….I dont…..and there are no jobs out there………..
Everyone has seen this day coming except it appears the very people who had the opportunity to actually do something about it. Now I am suppose to forget everything, suck it up, go into a GM showroom and buy one of your so-so products. Arrogance and stupidity are not attractive traits and sorry just doesn’t cut it. Turn out the lights. The party is over.
There is a site called AutoBeef (www.carcomplaints.com).
In this site it has one category called the Worst Vehicles.
Of the 20 worst vehicles GM has 2 (2 Chevys) Toyota has 1, and Honda has 4.
This site is an unbiased assessor of vehicles.Consumers enter the information voluntarily.
I would say that for ALL the vehicles GM manufactures this is not a bad record. Toyota and Honda DO NOT make as many vehicles as GM.
This history lesson is for AlanAllen and several members of congress who perhaps need a brief history lesson.
After the Oil embargo of the early 70s General Motors and other US manufactures lead the way in the development of Front wheel Drive vehicles. Front wheel drive vehicles could get better Gas milage. This was a very quick reaction to a problem that was beyond General Motors control. General Motors also downsized the majority of its vehicle line up. Smaller engines could be used in the vehicles and these engines got better Gas milage. Congress got into the act with Cafe standards and congress thru the insurance lobby started to regulate the industry. 5mph crash test bumpers etc. Again General Motors reacted very quickly to these regulations.
The Oil situation stabalized. Large Oil reserves were discovered World Wide with the developing geological technologies. Gas remained cheap in the United states for several years. GM cars became very efficent for their size. A 3.8 liter Six cylinder engine was developed to power GM’s Full sized cars. This engine won much acclaim for performance and fuel efficency. GM was a industry leader in Corrosion protection. Thru a coating process called ELPO developed with GM suppliers
vechicles no longer Rusted out as quickly. Remember the early japaneese transplant vehicles? They were rust buckets. Vehicles were built better in the 80s and they lasted longer. GM built as many cars as trucks at this time. Then came the Late 90’s and early 2000’s. Trucks and SUV’s were in High demand by the Public. Ford was an industry leader at this time. GM was a little Late coming to market to meet the High demand for Trucks and SUV’s. GM geared up for More truck procuction to meet PUBLIC demand. The building Industry exploded and trucks were Needed. Allen how many 2×4’s fit into a toyota corolla? People bought Boats,Campers and snowmobiles and needed somthing to haul them with. People actually had Fun. Moms hauled kids around in SUV’s because they felt safer and more secure. Gas was still cheep….. then came China and development in emerging markets. All of a sudden almost over night gas prices spiked and trucks and SUV’s became expensive to drive. GM developed a 2 mode hybrid SUV that gets better city milage than a toyota camry. GM is developing the Volt extended range electric vehicle and several hybrids are already on the Road. GM closed several truck and Suv plants not because the government told them to but because demand was decreasing. GM made the Car of the year 2 years running. GM has several new high milage crossover vehicles. Some seat up to 8 people comfortably. GM was gaining back market share in September 2008 then BOOM. The credit crunch. People couldnt borrow money to buy vehicles. GM has some of the most productive auto plants in the world and some of the highest milage vehicle offerings. GM is on the move as they have always been. So before you people run off…. look at the history!!!
Alan Allen,
You don’t have to buy one of theor so-so products, you can buy one of the superior products they’re now offering. Like the Malibu, which has had, on average, less problems than the Toyota Camry.
I agree GM has to change the perception about its vehicles – especially the number of fuel efficient cars they produce. My company, Cost2Drive.com, ran a calculation to determine which auto executive drove the most fuel efficient vehicle to Washington, DC this week and I was surprised to learn that GM had the winner with the Chevrolet Malibu Hybrid (I didn’t even know there was a Malibu Hybrid!). You can read more of the comparisons of the three vehicle chosen here http://www.prweb.com/releases/2008/12/prweb1702434.htm.
This led me to spend some time on GM’s website where I was surprised at how many fuel efficient vehicles there are in their lineup. I don’t think that message is getting effectively communicated to the public as all you hear about is the Prius and Civic when the phrase ‘fuel efficiency’ is mentioned.
Speaking of perception… I finally got to objectively drive a G6 in snow. GM listen up so you don’t miss this stuff on all your new cars.
Here are my thoughts after having a G6 rental car for 3 days in the winter snow:
Overal not bad about a 6/10. As usual there are many small thing I think could be cleaned up to make this car a 9.5/10. Overall the car was a blast. I’d consider buying one if I found one used with the options I want. I wouldn’t pay full price new since it just has a lot of small things I don’t like. Fix the small things and I’d buy one new in a second.
Cons:
Dashboard looks plain (same problem the Saturn Astra has).
Shift algorithms need work. There is to much delay shifting into second with your foot on the gas pedal. To much delay down shifting and an inability to down shift into first above 3000 RPM. Makes an almost great auto-manual still feel like an auto. Fix those things and it’d be as good as a manual (almost).
Shift lever sounds hollow and plasticy and cheap
Center armrest is uncomfortable on long trips; it needs to be further out (further forward)
Complete lack of USB jack for charging iPod (inconvenient on a rental car, I don’t always remember to bring my 12V to USB adapter). USB is 5 volts and should be dirt cheap to add to any car. I can buy a 12V adapter at any Walmart for about 4 bucks. To bad there weren’t any Walmarts near by.
Steering wheel felt firm but the fake leather cover felt like fake leather (but felt better then steering wheels in GM’s of the past). If it was real leather… oops I thought it was fake.
Radio volume is on the wrong side of the steering wheel for me. I drive primarily with my left hand and shift with the right. Put the winshield washer button on the left like in the early 90s GMs, put the steering wheel volume control on the left also.
Fix the front to back positioning of the arm rest my elbow felt like it was going to fall off when I had both hands on the wheel… and I have long arms.
No way to set traction control to be off when the vehicle is started (I prefer it off for most winter driving except ice).
No way to set it to start in 2nd gear (for snowy conditions it works better then 1st gear: less torque). Inability to shift into 1st gear on downshift above 2500 or 3000 RPM. Totally kills the manual mode.
The shift lever was off. Reverse was partway between R and P. This is something I don’t expect out of a newer car. Additionally the shifter didn’t have a quality feel to the shift positions and throws
Slider plates in shift mechanism make hollow plastic noise when shifting. Shifting manually lacks a positive feel. (It’s too soft and missing a positive feel when the next gear is hit). The knife switches in the shifter can be heard…. sounds like a computer mouse clicking.
Manual upshifts under power are very slow.
Auto upshift shift at high RPM comes in about 500 RPM to early on all gears in manual shift mode.
Backward reading scales on gauges are hard to read (right hand side of the dash cluster).
Lack of a Compass on the mirror (big issue on a rental car if you don’t have a GPS).
No ability to shift into 5th or 6th gear in manual mode. It SHOULD shift into 5th at the end of 4th automatically and allow the driver to manually downshift back to 4th or 3rd.
Engine mounts… horrible bang feeling when in manual first gear and the throttle is pushed down quickly. The mounts need less play under high loading.
Could use an AWD option. It would make the car almost competitive with a Subaru WRX (needs more power to do that though).
Dash plastics still feel weird and cheap. Radio trim is so cheap feeling it flexes when lightly pushed on. Sounds hollow when tap tested with knuckles. There is little evidence of style and care in the design of the dash board/panel. Gauges are ok, radio stack isn’t bad (could use a bit of work to make it look a but more sporty).
Needs a Nav system with radio controls that are as easy as the non Nav system ones.
Torque steer was bad. Rebalance the left to right weight in the front end. Check the drive shaft rotational displacements under load and torsional spring rates.
Shifting lacks much fun. Bob, look in your e-mail archive for the specifics I sent you on a new shifter idea. Thats what this car needs to knock the socks off the competition.
Mixed defrost and foot heat needs a bit of work on cold start. I found that the mixed mode blows to much hot air on the windshield and not enough on my feet on the 18 F degree day I drove this car.
Fuel economy was horrible (I couldn’t stay out of 1st and 2nd gear it was to much fun).
Pros:
3.5 L V6 is a world better then the older 60 degree engines. I imagine the 3.6 VVT is even better. No major complaints on the engine except the normal more power, less fuel
Brakes were nice and soft with good stopping power. Low speed handling was OK no idea on high speed.
Snow handling was OK to Good.
Steering felt about right. Not to soft not to hard, could feel the road but it wasn’t harsh. I liked that.
The ride is nice for a sporty sedan. Not to harsh not to soft.
Gear ratios are excellent. 2nd gear could use a bit lower ratio (need a bit more torque at 65-70 MPH). I was surprised that this was a pushrod engine.
Very quiet compared to older GMs.
Sound system was nice could use an easier way to seek XM radio stations. Like a method to scan the channels and then a scan button to scan the stations in those channels. And one to do both at the same time and go through all 200 channels
Seats were more comfortable then I initially thought.
Plenty of interior room.
Two cup holders.
Emergency brake was in the right place.
Fun in 1st and 2nd gear (Fuel ecoomy was horrible I couldn’t stay out of 1st and 2nd gear it was to much fun).
Overall GM was on their way before they decided to release the car. I’d say its a prototype or beta car. It lacks the polish and interior finishing I think GM needs to put on their cars. IF they are smart they’ll take my comments and put them into practice and wow us with their next release of the G6 and other cars.
To Charles, I have to completely disagree with you on the 2009 Malibu’s. I am thinking it was not a 2009 model that you were driving, I work in the service department of a GM dealership and I am seeing Toyota Camery owners trading in their Camerys for Malibu’s and loving them. I have yet to talk to an unhappy 2009 Malibu owner and know this is a car GM can be proud of.
“I have yet to talk to an unhappy 2009 Malibu owner and know this is a car GM can be proud of.”
It would be nice to hear Rick Wagoner’s perception of the Malibu after last week’s 1,000+ mile round trip to Washington and back in one. I bet this is the first time he has ever driven one on an extended trip.
Wouldn’t it be nice if the automaker CEO’s drove their mass consumer cars on long trips more often? That would give them a good chance to know exactly what they are trying to market to consumers. Had auto CEO’s made a practice of doing that in the past, I bet they would not have tried to sell some of the dreck they wanted us to buy.
Thanks Steve for the great history lessons, I doubt all the closed minded people I see here but anyone who has the brains can see this has much more to do with the change in market due to the housing and bank crises then it does poor management at GM.
I know nobody wants to hear it, but talking about the merits of this car versus that car or blaming the Big 3’s ills on ‘anti-Americanism’ does not help your cause. The US public has no sympathy.
The true legacy of GM is Detroit.
For all the money the Big 3 has made over the decades, Detroit should be a place that attracts intellectual capital, but instead, the people who are able to leave Detroit find a way to do so and they never return. It’s called brain drain. Until you change this simple fact, the Big 3 will be nothing more than an elaborate 20-part series of Harvard business school case studies for budding MBAs on what not to do in business.
You want to save GM? Move your HQ to California. Harsh? Yeah. But this company needs an intellectual sea change. The definition of doing the same thing over and over but expecting different results is insanity.
I agree. After having a drive in a G6 recently as a rental I think GM’s mechanicals are better then I expected. The big complaint I HOPE they figure out soon is that their interiors still are crap. They skimp on little cheap things… like the LED ambient light the HHR had, and the lack of USB charging ports. C’mon GM these are 3 dollar electric circuits. Or how about fixing the remote start on rentals to actually work. The place I was in was very cold and it would have been nice. The dash info unit said it was activated but it wasn’t working when I hit the button. I can only guess it was disabled in firmware.
GM needs to get the small things right. Sure they’ve made great steps but they aren’t there yet. I don’t mind a cheap interior on a small entry level car like a stripped down G6… but when I say “Hmm that was nice to drive I wonder if I can get one the way I want it” AND I realize I can’t…. thats a LOST SALE.
Where are the options GM. The G6 could be a Subaru WRX competing car or compete with a number of other cars. Sure it may not win on the race track but if you put AWD, Navigation, and a few creature comforts like bluetooth and heated seats it would have been tough for me to say no to.
Why should I have to go to a Caddy for that… and what do people do if they want a Caddy class car but want one thats smaller. What options does GM really have for them?
You wonder where you went wrong? Just take a look at the Chevy Cobalt compared to the Civic or Fit, and you tell me if the perception of GM poor quality is stuck in the 80’s.
Ford and GM produce great cars for the European markets, and their arrogance has had them sloughing off substandard cars here because they only made money on SUVs and now they are whining.. Look at the Ford Focus, the one sold here is a generation behind the one in Europe.. Gm produces great opels over there and small cars in the UK also..
Jason I guess it is a matter of perception, we just had a customer test drive the Civic and cale back to buy GM because she said it rode rougher and was noisy. She was a previous foreign car driver ( Volkswagon) so told us she was disappointed in Honda.
Jason, I have a Cobalt and I love It. It is a 2006 and I have put 84,000 miles on with no problems what so ever. It has the 5 speed Getrag (italy) and a very peppy 2.2l ecotech engine. It is a blast to drive and does very well on snow covered roads. The Stoping Power is excellent. I live in Michigan in a deer infested area. Several deer owe their life to the excellent handling and stoping power of my cobalt. The Fit and finish on this car is excellent. It gets about 34 mpg on the highway and averages 30 mpg overall. It has AC, an information computer for mpg,oil life, ave speed etc. The interior is nice. I only paid 12,500 for this car brand new. I have never been in a civic but i find it hard to believe that it can be that much better than the Cobalt. There is a upgrade coming soon for the Cobalt called the Cruize i think so watch out Civic.
Wow, he hit the nail on the head. The remark about the 1982 Oldmobile drew back memories. As a child we had a 1982 Olds Cutlass Diesel that was the last GM vehicle my family owned outside of company cars. I remember the day the radiator hose blew stranding us on a bridge over the Wisconsin river. My dad got out and patched the hose to the best of his ability using a roll of duct tape. We were able to limp the car to a truck repair place that was kind enough to drive 150 miles to find a replacement radiator hose. Of course, there was a more then generous charge attached to this. The engine block had cracked and the car used 1 quart of oil for every tank of gas after that. However, it truly was the car that wouldn’t die. My dad threatened to give me the car when I turned 16. I was completely convince I rather ride the school bus then be caught dead driving a diesel. Instead I got a second hand 1976 Grand Prix that I fell in love with. I never did own another GM after that and spent my fair share of time with Honda, Toyota, Jeep, and Ford vehicles. I wouldn’t even turn an eye towards a GM vehicle. Then it happened. I rode in a new fully loaded demo Avalanche a few months back and all I could say was wow! I spent years working at a Pontiac dealership detail cars when i was younger and remebered the I hope I don’t break anything interiors. I mean the fit and finish is better then the imports! I mean is this really a GM vehicle? It rides great and that constant pinging diesel motor noise I associated with GM was gone. Sure the Avalanche is unleaded, but I could barely distinguish the engine was even running. I’m now in the truck market myself, and I have to say I forsee a GM truck in my future very soon.
2009 Best Resale Value Awards for Cadillac CTS and Chevrolet Tahoe Hybrid
CTS: http://www.kbb.com/kbb/NewsAndReviews/BestResaleValueAwards.aspx?SelectedIndex=3#Content
Tahoe Hybrid: http://www.kbb.com/kbb/NewsAndReviews/BestResaleValueAwards.aspx?SelectedIndex=12#Content
DUH ….. i had an old 286 computer back in the early 90’s. It froze up and gave ma a lot of problems.
I am so smart and such a genious I fixed the computer company. I never bought another computer.
I guess I fixed them didnt I ? Duh
Dave,
Now I understand why people don’t want diesels. Thats a shame. I have driven a Duramax Diesel and have to say I’d buy one in a second if they had a cheaper model. I sitll dont’ think GM’s fit and finish is that good or their interior quality much better then “I hope it doesn’t break” But I guess thats personal preference.
Ive worked in a Gm dealer for almost 10 yearsas a goodwrench technician and can say that the cars and trucks that we sell are fine cars and trucks. We sell more hybird Trucks than Toyota. Does Toyota have any Hybird trucks? No because they need a design to copy. As far a quality from time to time I get an import car in the shop for a used car inspection and found they have oil leaks and brake pulsation with less than 20000 miles on the car. It’s people’s preception. If I was to remove all the Chevy logs on a car and remove all the logs on a Camery and do a blind test to the public I bet the Chey would win. On saturday I saw a tv ad for a new Lexus suv, they showed that it had heads up display. Gm Technolgy from the 90’s I have it on my Grand Prix It’s 12 years old and still running great almost 300000 km same engine and transmission. another thing find me a Toyota from the 80’s still on the road, You can’t they are all in the scrap yard. Also ive changed lots of engines on Pontiac vibs why? because it has a toyota engine. yes we had some crappy cars Azteck . Epica with the 2.5L nightmare. Peoples preception has to changed they only buy what the TV tells them to buy. Our DSM was a former adverstisment manager I can see why out TV adds suck, they never get the message across. Gm is in need of major change at the top, it’s not run by car people it’s run by business people who only look at the bottom line. Thry should stop making cars that are boring. we need the design of the 60’s and technolgy information in the tv adds like when the pontiac gto had that bumper. people need to see what cool features a car has in a short tv ad. for example I never seen a Cobolt ss turbo tv add
Take Pickups and use them for Taxis.{bail out ways} Taxi Drivers Pay The Higher Leases IN US Today. WE drive 12hrs a day 5to6days a week. WE know the NEEDS OUT THERE !