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 On TV, I’m watching the action in Washington, listening to speeches based on outdated perceptions that persist among some of our most experienced leaders and media pundits.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…
- Posted in Business
Ben Dewberry
“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?
John Wayne
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.
Durandal
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.
Jim Mbongo
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.
Mike (BodybyFisher)
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.
Sheth
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.
Charles
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.
Bob L
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.
GM DEALER GUY
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.
Charlie H
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?
HotCarNut
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.
Chris R
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.
Felix
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.
Edward Hayes
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.
Miguel Gonzalez
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.
Beaugrand®™©
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.
Edwin
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.
Stan
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.
mitch weaver
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
Stephen Hagan
Perhaps Mr. Waggoner should drive to Washington along with a few thousand other people.
edvard
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.
JDC
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!!
Joe D., Cleveland OH
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.
Larry smith
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.
Steve Henrikson
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.
Abraham
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.
Bill Henderson
No money. No subsidies. Never.
Gary S.
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.
Derek L.
You state “GM sold more vehicles than any other manufacturer in 2007″ if this is true, why are you broke?
David
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.
Dan DeLisle
On December 2nd Rick should drive the VOLT to Washington. Lets show them what we can do!
Anthony M N
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?
A P Wren
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.
GM DEALER GUY
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.
Duke Gromboolian
“…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?
Scott
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.
Robert T
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.
Ron Cocquyt
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
Ben Dewberry
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.
Laramie Jordan
“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.
Dominic Gerace
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!
Kawsar
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.
Rick Rhoads
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
Chuck
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.
Tom W
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…
AA
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.
Andrew Craig
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.
nicholas Von Staden
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
M
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….
Thomas
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.
Jim Durkin
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/
Sadie
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.
George Diebel
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.
Sheth
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.
Tom in Quality
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.
Tim
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.
Frank UAW Member
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.
Mike
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.
GM DEALER GUY
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………
Laramie Jordan
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.
Chris R
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.
Brougham-Holiday
“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.
MWG2
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
Anthony
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.
Jason George
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.
Obviously DaMinority
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.”
Edwin
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.
Angela Nagel
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.
Andrew
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.
SaturnBob
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.
Bernie Steer
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
Beaugrand®™©
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.
MWG2
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
James S.
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.
James S.
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.
George Diebel
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.
Sheth
“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.
Sheth
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.
Kawsar
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.
Augie Churchill
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.
Tim
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.
Augie Churchill
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?
Kevin Britton
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.
Scottt Cronin
Mr. LaNeve:
I read your latest comments on the state of affairs at GM and here are my comments for the reco