Fritz Henderson Chat: Follow-Up
Thanks to everyone who joined us for my first webchat on Monday morning. I enjoyed the questions, and I’d like to do this again in the not-too-distant future. I thought we did pretty well, answering 17 questions in 30 minutes – and then I looked at the question queue and saw that we’d received 179 questions overall! There was no way to get to all of them in 30 minutes (imagine answering a question every 90 seconds and still missing ten for every one you answered!), so I wanted to try and answer some more of them here, a few at a time.
We received several questions from employees about the future of various manufacturing sites, so let’s tackle that subject first. First of all, we are currently in discussions with the United Auto Workers. As I have said on several occasions, everything is on the table – and that has to work both ways, so we want to hear their thoughts and concerns before finalizing our plans around plants and sites that will be closed in our reorganization. We expect to finalize our decisions shortly and will convey those decisions at that time, but we honestly haven’t gotten there yet. But even if we had, I don’t think it would have been appropriate for me to announce those decisions in a webchat. Out of respect for our employees, we want to have those conversations with all of our employees first, face to face whenever possible.
Q. With the declining number of brands, maybe GM can provide the remaining brands a fuller lineup – any comment on flagship sedans for Cadillac or Chevrolet? (Brian Beringer)
Brian, we have big product and technology plans for all our brands. Chevrolet is already loaded with great cars, crossovers and trucks with a lot more coming like the Cruze, Spark and Orlando – and of course, the Volt. And we’ve got some great new Cadillacs, as well as Buicks and GMC cars in trucks in the works. Each week I join our Design chief Ed Welburn, the head of GM Product Development Tom Stephens and a few others to tour GM design and look at future cars and trucks. It’s great to be reminded what this business is all about, and it fills me with optimism about the new GM. I promise you that we have new vehicles that will blow you away.
Q. With so much US taxpayer support, why shouldn’t the government demand you reopen US plants and get US workers working again vs. non-US plants (i.e. Mexico)? (Wes Winn)
Wes, first of all the loan money we’ve received from the US government is in fact going toward our US operations. But the government also recognizes that we are a global company, and that it makes sense to build where we sell – and to use the profits from those local operations to boost production in those regions when market conditions demand it. We don’t only do business in the United States, we don’t only collect revenue in the United States, and for the long-term health of our business we need to continue to make business decisions based on business sense. That said, the percentage of our vehicles sold in the US that are also built in the US will remain virtually the same in the coming years as it is today. Our intention is to keep our US manufacturing capability in line with US market conditions – as the economy improves and the auto market returns to more normal levels, our manufacturing here in the US will keep pace.
Q. What is your unbiased opinion of your UAW employees? (James Garrett)
Thanks for your question, James. In two words: respect and partnership. The people who build our cars and trucks are the heart and soul of GM, and I know how hard they work. I think that in the current environment our hourly employees have been portrayed quite unfairly. We will all be making sacrifices – salaried and hourly – but the necessity of that sacrifice should not be read as blame; our workers make the best cars and trucks in the industry, and I’m proud to be in the same company with them.
Q. If GM does file for bankruptcy, how will that affect day to day operations? Will things have to shut down? (Robert Allen)
Robert, we received several questions along these lines, so I’ll use your question to make several points. The short answer is that for most GM employees, day to day operations will probably not change even in the case of a possible Chapter 11 filing. Even with a filing our goal is to continue building great cars and trucks, with what I consider the best employee work force in the industry. That’s one of the things I really want to emphasize: Chapter 11, if it should come to that, does not mean we are calling it “quits.” It would mean that we would be using the bankruptcy laws as a tool to accomplish our stated restructuring plan. We’d be reorganizing our company, but we would still be in business.
Q. I work at the Dealership level. If Chapter 11 happens, how will it affect us? Will we be able to get parts to service our customers? (Rob Speers)
I can assure both dealers and customers that you will be able to get parts to service your customers and vehicles. As I said above, reorganization does not mean “out of business,” and we will continue to service our customers and remaining dealer network as we always have.
In the next few days, I’ll use FastLane to answer some more of the questions we couldn’t get to on Monday. Please bear with me and understand that there is a lot going on right now, so if it’s a couple of days I hope you’ll be patient with me. Thanks again for your questions!
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Chevy Cruze ~ Are you going to persist using that terrible name for what looks like a pretty good car?
Camaro early purchase program ~ Are you aware how poorly that is being managed, and how it is alienating your customers?
What criteria are you using for dealership closures? One reason I never got excited about any Saturn was that the closest dealers were over 90 miles in any of three directions. And you even ended up with multiple dealers in at least one metropolitan area (Buffalo). I’m guessing it’s all about eliminating miud-and zone level dealer support personnel and not about customer service.
I say, build the Insignia here, forget the new Lacrosse and and combine the new Astra with the Cruse. It makes little sense to spend the money on globable brands unless you are really committed to world cars. You have a winnner there.. We in the US could still continue to buy Zeta cars as an Impala/ Buick Park Avenue dispite the end of Pontiac, and still get the cream of the crop whether built here or in Austalia/Mexico, or China. I’m actually hoping that the bankruptsy comes to pass, the company survives and Fiat gets stuck with Chrysler/ Opel remains as an intergal part of GM.
My local dealership has a Honda Franchise and their lot is filled with new Hondas.
I live in Pendleton Or and Gilbert Auto is my dealer. Are they on the endangers species list?
I think the bondholders with CDS are pushing GM into bankruptcy.
I find the phrase “…as the economy improves and the auto market returns to more normal levels” a bit disturbing. I don’t think anyone can assume that GM vehicle sales will rise to their past high level anytime soon, if ever. Any business plans should assume that today’s sales levels are the new level of “normal,” and production levels adjusted accordingly.
GM market share has been declining for the past 40 years. I can’t recall a single year it increased in that time. I have to question whether GM’s corporate culture is capable of taking the huge risks that would require; you haven’t ever done anything really “daring” in my memory (maybe with the exception of crushing the EV-1, but I don’t think that was deliberately daring).
In the transcript of the Mr. Henderson’s chat, in response to the question about what cars he and his family drive, he proudly listed a number of GM cars. I am not sure it is a good idea if the executives of a car company should only drive cars made by their own company. In my opinion, in the mix of cars the executives drive on a daily basis, they should include good cars from other manufacturers too. By driving varieties of good cars from different companies, they get a much better idea about the strength and weaknesses of their own brands, helping them make more informed executive decisions.
I just wanted to say something in regard to your plans to start importing GM brand cars from China. I don’t approve of that measure. I don’t because I see this as basically a repeat of what happened when formerly large US electronic firms like RCA and Philco started having their goods made in Japan in the 60’s as a cheap alternative and means to save money. Its clear that China will likely become the dominant manufacturing superpower and do so likely sooner than most people think. To ship your manufacturing off to China and become reliant on that cost savings formula means that you’re likely down the road that RCA took. Sure- GM the brand might survive. But what good does that do if all of your cars ultimately become made in China? I’d avoid this at all costs. Just my opinion.
Rather than planned downtime for our plant to reduce our inventory volumes where GM is paying salaried employees and hourly employees are large percentage of their wages to not do anything…why not keep the plants open, pay everyone their full wage, slow the lines down and focus on Quality, GMS training, job rotation and similar items that will help rebuild our marketshare, build a good relationship with the UAW and reduce our inventory ….then gradually speed up the lines as sales improve with the economy or our marketshare increases. I would prefer we spend a little bit more money to improve our long term viability rather than waist a little bit less for no output.
Fritz – Thanks for your candidness during these times. I am still very saddened at the loss of Pontiac. I hope that somewhere there is a thought that a robust GM down the road could consider a limited release of the nameplate, or to allow custom shops like ASC the ability and license to convert cars to Pontiac heritage rides.
One thing about the bondholders. I know they are all expecting CDS cash in the event of a GM default. But is there an analysis of who is holding the CDS payout obligations right now? Are these firms that have the ability to make a payment? Is it possible that the bondholders may be at risk of not receiving the payments, but havent considered that. Maybe that makes them more willing to come to the table. Its a longshot, but I would certainly turn that stone.
Mr. Henderson, you talk a good game about your products that will “blow us away.” What remains to be see, of course, are said products on dealer showroom floors. When can we expect these supposedly amazing products? Five years from now? Why should we wait on GM, when we can already get great products from Honda, Toyota, etc?
Furthermore, these amazing products you reference seem to all be in higher price points, around $30,000. How about something compelling for the average Joe, under $20k? And I don’t mean a hatchback that you’ll market as “fun to drive”, when they’re not. The only car that fits this bill is the Solstice and Sky, which presumably will die out with Pontiac and Saturn. Hard to see why you lost money on those cars, since Mazda’s been turning profits on the Miata for 20 years now. But I digress.
One other question, what are you doing to improve the resale value of GM products? Domestics as a whole historically get terrible resale value, making the total cost of ownership higher than your import competitors. What can be done here?
As a Tech Center employee, I am quite frankly disappointed that we (GM) are not taking advantage of this ‘golden opportunity’ to actually reinvent our entire company during these darkest of days of our existence. I know this concept is daunting to say the least, but what better time would there be to take the weeks ahead to pull together all of the various disaplines in the company and really rethink how we do our jobs, collectively? We are still burdened with bearucratic-type waste, inefficent and cumbersome processes and too many ‘middle/upper managers’. From my view, all we are doing is slimming down our current failed structure, and by an even more destructive method, firing mostly actual workers and very few of their bosses. In fact, it appears we are becoming even more ‘top heavy’! So eventually we will just be a smaller version of our operations currently. This, I feel, will lead to our ultimate demise. We need to be smarter, bolder and most importantly, BETTER!! We are not getting better, just smaller.
Beaugrand,
He didn’t say that GM’s peice of the pie would increase, what he did say was that the pie will eventually get bigger. If you keep the same portion of the pie, and the pie gets bigger, that means you sell more cars. If GM sells 20% of the 10 million cars sold this year, that means they sold 2 million cars. Next year when the economy is (hopefully) better, and total car sales are, say, 12 million, and GM sells 20% that means they sold 2.4 million. Even if their market share drops in that time to 18% they will sell 2.16 million.
Fritz
How do you expect to sell more cars wuth fewer dealers. The dealers are the real customers.
What if these ex dealers turn Benedict Arnold and sell Japanese or Korean brands. Then you will be creating new competitors.
Why doesnt GM build cars that can run on natural gas? Why not build cars with two gas tanks, one for gasoline and one for natural gas. Dealers could be set up to operate natural gas fueling stations and when no natural gas is not available the cars could run on gasoline. It seems that doing this would save more oil than building only small cars. I like some GM products like the Camaro and CTS but I do not want to be forcesd by the government to drive some 35 mpg buzz box.
I would also like to say that although it is necessary now to close4 down Pontiac you should leave the door open to its potential return when conditions are economically feasable. I also think GM should stand up to the government as little bit. After all they are driving you into bankruptcy. We need an industrial policy that reverses these endless trrade defecits.
I’ve seen the Opel Insignia, sold as the Buick Regal, and the new Astra. Why spend those precious dollars on the new Lacross and Cruze when the Insignia and new Astra are such outstanding products?
To all those people upset with GM bringing 50,000 cars to the US market built in China. Where is the outrage over the 5,000,000 cars a year that come to the US market from Japan???
Thank you for everything you’re doing Mr. Henderson-this has got to be really stressful for you. I’m particularly excited to see GM’s four core brands grow and flourish in the future. Do you think GM will ever regain the market share and sales it once had in the future? I don’t want GM to become a smaller, second tier player in the global auto scene. Do you think that is a possibility? Do you plan to keep any small stakes in the brands you are selling off (i.e. Saab, Saturn)?
Much respect.
I’m a junior in high school and plan to work for GM in the future when I’m done with college. Be looking for me in about 6-7 years. ; )
Thank you for re-designing the intro to Buick’s website and incorporating the new LaCrosse. The intro looks fresh and upscale, and the silver color is a welcome relief from too much “Enclave brown.”
So, Mr. Henderson, what’s can you tell us about the future of one of your core brands, Buick? How will the potential sale of / sale of part of Opel affect Buick’s products?
I am a young retired GM employee and i have bought a number of GM vehicles over the years of my employment with the company and as recent as a month ago I purchased a new crew cab 2500. Point being is in my thirty years at GM i could never understand why all the companies would want to move their business overseas or to Mexico leaving fewer jobs for the american people to have the money to purchase there product.. I’m 49 years old and in them 49 years i have seen many of our manufacturing jobs disappear overseas, as a result, thousands of jobs lost and billions of dollars in tax revenue. And what happens if we let all our manufacturing jobs go? Where does that leave the American people? Will have no money to purchase the product….
I do have one last comment, If i have to take my reduce pension check through the
pbgc base on my age which is next to nothing for all my hard 30 years of service to this company would GM be willing to buy it back? I’ll have not the money to pay for it… P.S. I’m still trying to live the American Dream
Mr Henderson,
In reaction to your comment regarding the question about flagship sedans for Chevrolet (Brian Beringer)
Clearly you must consider placing the Pontiac G8 into Chevy showrooms.
This car is already engineered, it can substitute the now aging Impala and provide a vehicle that rides on the successes of the Camaro but can offer the space and practicality of a sedan.
As I’ve said before on this blog, the V6 Camaro proves that a desirable performance car can also be a very fuel efficient.
And in Chevy dealerships, the G8 wont just get automotive media awards – it will get sales results and new customers into Chevy showrooms.
I’m feeling very hopeful for the new GM – a necessary fundamental shift is occuring rapidly… keep up the efforts and lets never loose site of the things that make GM great: a variety of well designed desirable vehicles in every segment.
GM probably wouldn’t be in any of these messes, if they’d paid attention to GM enthusiasts who have tried tell them about making stylish cars in the affordable American luxury/sport range.
The mass of GM car buyers want affordable American luxury/sport, they want more than Chevy. The upper mid range is where foreign competitors are taking GM market share while GM has just let it happen. Affordable luxury/sport from brands like Oldsmobile is what GM car buyers want to buy. GM car buyers have grown beyond Chevrolet and want a higher experience. Can Buick satisfy these buyers when GM has built Buick sedans as a style for as the “older person’s car.” Buick has shunned sport for far too long to appeal to Pontiac buyers. Oldsmobile is the brand that has it all, luxury, sport, technology, racing heritage, and so on.
Buyers have mainly looked outside GM to the foreign competition when they couldn’t find the styish sedan/coupe they wanted from an American maker. Some waited and waited for GM to make a stylish car that suite their wants and needs until they couldn’t wait anymore. GM base customers would surely buy more frequently if GM offered the stylish cars they wanted with the engines they really like. Too often the favorite small V-8 engine is in the hum drum model while the stylish model offers no small V-8. Even now Ford Lincoln Mercury is not offer a small V-8 on a stylish sedan.
Case in point, one of the best looking American sedans – the Mercury Milan – offers a lackluster engine, and the American sedan buyer seeking affordable luxury is again is let down. The Mercury Milan has the looks, and the Lincoln MKZ has the better V-6. Go figure. The affordable luxury buyer is disallusioned and waits to buy American. Many times these buyers already own a luxury car and would buy a second or a third if the American car maker inspired them on style and powertrain. American car makers are missing the retail turnover on affordable luxury/sport and that is where the market share has been eaten away.
Running to Mexico and China isn’t the ansnwer, the TV industry tried that. The answer is inspiring the American car buyers to buy with style and engines.
Too many dark color combinations – Cars like the G-8 that only offer black seats – Come on, let’s get with it.
An Oldsmobile Cutlass Supreme version of the Malibu would be on the way to selling to a million units a year, especially with a small V-8 with active fuel management to energize the base enthusiast who talks-up the latest GM cars. GM’s base upper middle luxury buyers are board, they are saying well the Malibu looks the best, but its a Chevy, and they want an Olds or a Cadillac. And the Chevy only has a V-6. The Malibu looks better than the Impala.
Are we going to be saying we told you so, when GM is unable to energize Buick with contemporary style? Is GM going to be saying it should have listened to GM enthusiasts and made Oldsmobile the brand.
Is GM going to be the leader or the conceder? Is GM going to learn to PUSH BACK at the foreign competition? Is GM going to stop being overextended abroad on assets and undercapitalized at home? GM can do a lot when it makes a profit.
For the Cadillac buyer, they want to see the CTS-V and more, they want only the finest, with the highest performance.
I’m also questioning the need to keep GMC. With all the talk of cutting brands to reduce rebadging and internal competition, why keep a brand with no unique product? It would make sense to apply the GMC name to the line of heavy-duty trucks like the Kodiak or Topkick.
Buick also has no unique products. It seems like GM’s “Mercury”, an in-between brand with no clear identity between Chevrolet and Cadillac. With Chevys reaching into the $30k range and Cadillacs starting in the $30k range, is there really room for a brand in between? There’s no in-between brand for Honda/Acura, Nissan/Infiniti, Toyota/Lexus, VW/Audi, or Mini/BMW. Heck, Ford still has no idea what to do with Mercury. Getting rid of Buick and GMC in the U.S. would further reduce rebadging and internal competition as well as further “right-size” your dealership base.
I understand Buick has huge recognition in China, so why not make Buick a Chinese-only brand selling rebadged Chevrolets (like they already are). Do the same thing with Opel. Rather than selling Opel, use the brand to sell rebadged Chevrolets there (again, you already do this to some extent with the Insignia, Astra, and Antara). Chevrolet has not been well-received in Europe, so why not drop it and focus on Opel?
GM can and should be reduced to two lines: mainstream (Chevrolet for most markets, Buick for China, Daewoo for Korea, Holden for Australia, and Opel/Vauxhall for Europe) and luxury (Cadillac for all markets). This approach for mainstream vehicles allows many of the valuable brands in specific markets to be retained while saving tremendous amounts of money by global consolidation. By focusing resources on fewer vehicles, quality and brand perception can be improved while still dramatically reducing the overall development costs. It would also be the least painful approach since established and valuable brands would not be lost. Not all vehicles for the mainstream or luxury marques would need to be sold in all markets, giving flexibility.
I want to give my input about G.M. building cars in China and importing them back for sale in the U.S.
Here is a list of cars I have owned in my life time.
1968 Pontiac Catalina(used)
1972 Buick Electra 225(used)
1978 Pontiac Sunbird(new)
1985 Oldsmobile Cutlass Supreme(new)
1991 Pontiac Grand Prix(new- wifes car)
1996 Chevy Lumina(used)
2001 Chevy Lumina(used)
2007 Chevy Impala(new- wifes car)
You get the picture. Japanese cars might be alittle bit better cars but I buy G.M., and probably alot of other people,to keep the American workers working and to keep this country afloat even though the
politicians and corporations don’t seem to care.
If G.M.brings in cars made in China I will buy Ford or Chrsyler. So to you big-wigs at G.M. you better wake up because if there are no Americans left working ,whose going to buy your FAKE American cars?
Alex:
I think you were leaning more along the lines of R&D. Sure, the engineers and such ride, dismantle, prod and pick at many of the competitors vehicles….and that is the difference. They are the ones making the decisions prior to production. An executive “driving” a competitor’s brand is just ridiculous….that’s like saying….”I’m working as hard as I can to do the best for the company and the company’s long term existence….but, I drive a lexus”. Excuse me….drive a Cadillac. No excuse.
why would dealers demand 5000 dollars above sticker for new camaro orders?this does not help gm to bring back lost sales.just a note from average joe.good luck
A couple years ago I predicted that GM would eventually become primarily an importer of Asian-made product. I can see that’s well on the way to becoming true.
I think I’ll look to Ford challenging Toyota as the premiere car company in the next decade.
Do you not think that it is hypocritical to be taking taxpayer money and then close local dealerships that will result in decreasing tax bases in local communities, increased unemployment benefits for state governments, lack of funding for arts and civic activites in local communities and lowered morale in communities. I read in one paper where GM had stated less dealerships would result in buyers having less leverage. If GM said that then they do not understand the loyalty between some customers and selected dealerships and people at those dealerships. With some of those dealers gone the buyers will no longer have loyalty for GM.
GM once had over 50% on the U. S. auto market. There is no question, in my mind, that GM has had imcompetent management for years and much of that same management is still in place. When and if you file for bankruptcy current stockholders will be wiped out. Others, including some GM executives, have already bailed at a reduced cost. Would it not be a logical step for these stock holders to bring suit against current and former directors for incompetence?
Mr. Henderson, why should Americans continue to support a company that has been such a dismal failure?
“I am not sure it is a good idea if the executives of a car company should only drive cars made by their own company.”
I agree Alex. And I also suspect the cars Mr Henderson drives have the best technical service GM can provide. I’m sure Fritz has never had to contend with trying to get service at the same run-of-the-mill GM dealers and their service departments we must contend with.
He probably gets to work, hands the keys to his secretary saying, “The check engine light is on and It needs an oil change.” and when he’s ready to go home at night, everything is in ship-shape order and up to factory specs as though it just rolled off the production line.
I agree, he would get a much better idea of what is going on by driving cars from the competition as well as having to deal personally with GM dealers.
why did you stop testing on the 4.5 Diesel? The fuel some say up to 41 MPG? If this is true why not have it on the road. And don’t say the people will not want to drive a diesel I had 3 sold.
Fritz,
There’s no doubt that GM’s continued focus on cost reductions has led to an extremely fragile supply base, and a second rate fleet of gotta-have-something-else cars offered by GM. Sure, your cars today are better in some aspects (you can thank Lutz for that), but your company just doesn’t get the fact that your competitors spend the majority of time on better designs, quality and performance improvements, and overall raising the bar. Everybody at GM is so damn worried about spending a dime that the end result is often junk that nobody wants to buy. And don’t get me started about the conspiracy against GM, and the whining about journalists only looking to bash your products. The truth becomes apparent in example after example of GM’s cost cutting, cheap plastics, buzzing interiors, poor reliability and low resale values. You COULD build better cars if you wanted to, your company has the talent. But the motivation has been sucked out of them by the Purchasing team. Who put them in charge anyway?
So here is my challenge Fritz. GM will need to reinvent inself now – right now – to be relevent. You can’t cost cut your way to profitability. You can cost your way to bankruptcy, just as you have done with countless suppliers. So the challenge is to change the internal focus across the board to as you coined it – paying the rent. The focus needs to be on saleability and profitability, and not on cheap cost. Higher cost should be allowed if you can get it back by increased sales or profits. GM employee performance should be measured not by cost improvements but by sales improvements. Where are the metrics that measure improvements in customer satisfaction, resale values, sales and profit improvements, performance gains, etc?
EVERY supplier will tell you that cost reductions are the main focus at GM, and it is way down the list with other major automotive manufacturers. The time for change is now Fritz, and Bo cannot be allowed to destroy the last chance that GM will have to right the ship. It’s your watch now….Are you watching?
edvard,
I think you make an excellent point but I wonder if it applies completely with our situation. As a GM engineer these are my personal thoughts on your posting. I’m also concerned on many levels with the push to move manufacturing to the lowest cost nations. I think this minimizes the benefits of manufacturing on many levels, such as strategic needs (ie military) and the contribution that manufacturing products has on the economy.
For instance, manufacturing jobs benefit the economy more than comparable service jobs. More money goes to local businesses to support the manufacturing plant and a larger number of unrelated jobs are supported by each manufacturing job. Unfortunately the US trade policies don’t seem to recognize these benefits. As a contrast take a look at the policies of Germany and Japan, where manufacturing is recognized and treated as strategically and economically beneficial.
While that is the case for the US in general, I think that some of the conditions specific to GM are different. While I don’t know this for a fact I expect the vehicles we’ll be importing from outside of North America are manufactured and purchased in much larger volumes in other parts of the world. As an example, importing the G8 from Australia makes sense because the sales volumes for that car can’t support an assembly plant in North America. By manufacturing the G8 at the existing Australian plant we can get that vehicle to the US for much lower cost and help the Australian plant run closer to maximum capacity, essential for turning a profit.
Another way importing some cars may help GM is flexibility in dealing with currency exchange rates. The Japanese use a similar model when they manufacture the same car in both Japan and North America. When the US Dollar is weak compared to the Japanese Yen they manufacture more cars in the US (usually using overtime). This gives them more cars to sell at a lower cost due to the weak dollar. When the Dollar is stong compared the the Yen, they manufacture more cars in Japan (overtime) and import them to the US. Again, they get more cars to sell at a lower manufactured cost. While the Japanese consider manufacturing in the US crucial, using plants overseas to balance their manufacturing footprint gives them a lot of flexibility that they use to their advantage.
GM’s drive towards globally common vehicles gives us the ability to manufacture in many worldwide locations. This will help us reduce our development costs by focusing on fewer car designs, spread out those costs across a higher volume for each car design, and increasing our flexibility in dealing with changing economic conditions around the globe by having identical plants spread around the world manufacturing the same car.
Brian said, “To all those people upset with GM bringing 50,000 cars to the US market built in China. Where is the outrage over the 5,000,000 cars a year that come to the US market from Japan???”
Brian,
At least those are Japanese companies, not American companies such as GM. And to be fair, many of those “Japanese” cars are actually put together in the U.S. And I hope you realize that Americans wouldn’t be buying those cars if they didn’t like them.
The question to ask GM is, “In a normal economic environment, if Toyota and Honda can build cars profitably in southern states such as Tennessee and Alabama, why can’t GM do the same? Why do you have to go to China to do your assembly?”
Had GM not mismanaged Saturn, why couldn’t Saturn have a string of profitable assembly plants across the southern tier of the United States just as Honda and Toyota do?
Unfortunately, it may now be to GM’s benefit to go into Chapter 11 rather than using TARP funds as temporary band-aids in order to delay the inevitable. I think both Buick and Cadillac need luxury (not sporty) flagships. CAFE may not allow for smaller versions of the Roadmaster and Fleetwood, but I would buy one if GM would build one or both. The Magnetic Ride Control system and decent tires (not Bridgestones) should result in good handling, even with the softest spring rates, and not require the stiff springs that Lincoln chose for its MKS. Lincoln has failed flagship status with its new MKS. Mullaly still drives his Lexus LS430 and got into it after exiting his Gulfstream when he returned from the first TARP talks in Washington, DC..
I also have to agree with the sentiments regarding Chinese built cars. They shouldn’t come here. I personally don’t think GM should be taking such a huge risk on build quality. Especially now that GM is so close to being on par with Toyota and Honda. This really is no time to be risking the reputation that you’ve been working so hard to rebuild in order to save a few bucks on paper only to spend more in pre sale repairs, warranty work and a ruined reputation. The Chinese aren’t ready for “prime time” as far as their auto making efforts go. Maybe in 10 years when they’ve learned the hard way why cutting corners is not good business.
Here is latest headline news…sorry for being somewhat off topic:
The UAW expects a crucial round of restructuring talks with General Motors “to intensify this coming week” ahead of an end-of-May deadline set by the Obama administration.
In an e-mail message sent to rank-and-file workers, the union also repeated its opposition to GM’s plans to close 16 U.S. manufacturing plants and cut about 21,000 jobs while also planning to increase vehicle imports from GM plants in lower-wage economies such as Mexico, South Korea and China.
I just don’t get it. What exactly does the UAW expect to build at all those plants that it so desperately wants to keep open? And what right does the UAW have to demand that all GM cars sold in the US must be built in the US? Do those same rules apply to Hyundai, Kia, Mitsubishi, Nissan, Honda and Toyota? Of course not. If people want to buy a cheap no frills car like a Kia, why can’t GM also provide an alternative crap box from Daewoo or Shanghai GM?
Gettlefinger, it’s high time you take your lazy overpaid work force and find something else to do. GM needs to hire a competitive cross-trained workforce free of your outdated rules and maybe they will have a chance to prosper in this country. As long as GM has the UAW noose around their neck, the end result will be both of you left hanging for dead.
So, explain to me once again why I should buy a Chinese-made Chevy instead of a Toyota made in Indiana? Why should I patronize a company that’s laying off friends and neighbors and ignore a major employer in my state? Why would I choose a car with a 5-year warranty, when several others are offering 10 year warranties?
The local GM dealer swindled me on my last repair job (their last repair job too, I won’t be going back, ever), I’ve always been treated honestly by the Toyota dealer, even when he’s worked on my Buick (which was to fix the damage done by the GM dealer). Do you honestly believe my experience is unusual?
I have to say that the dealer situation at least here in Mass. is like banks and liquir stores there seems to be a GM dealer of some kind on every street corner and none are doing a thing. Take a lesson from Toyota and the Lexus brand, Toyota sees there dealerships as there customers making sure that they are always the priority and demanding the dealerships do the same for there retail customers I am not saying that they are the be all end all but there is something to be gained from that thinking and it breeds big time brand loyality. I have owned Toyotas and other makes and now own Chevy trucks which I feel are still the best light trucks built but I have never had service or been treated as well from anyone but Toyota on the dealership level that is. Thanks
In response to all the comments about GM importing cars from China.
I don’t see how China is any different to Japan Korea or any other foreign country.
GM MUST continue to import cars so it can provide a variety of cars that would not otherwise be offered by GM.
If GM doesn’t offer these imported cars, those cars wont be in GM showrooms and many more customers are going to go elsewhere to buy their car.
GM will not survive if it closes its doors and its minds to the world.
I really think GM needs to import all its niche and lower volume cars so that it can keep making high volume cars in the US while keeping a variety of cars in GM showrooms to maintain its market share.
For example, it has been talked about in the media that GM is considering importing Buicks from China.
I feel that If GM can’t import new Buicks from China, Buick will end up with very few local models in the US and slowly will end up going the same way as Pontiac.
So keeping the right imports keeps American jobs.
Hi.
This is kinda off the wall, but follow me here. I realize this is all in my head and waaaay more complicated than i’m about to make this sound. With these caveats, i’d like to suggest the following:
The Obama administration has outlined a high speed rail plan with $8 billion budgeted. I’d like to suggest exploring some kind of joint venture with Canadian high speed rail company (among other things) Bombardier. http://www.bombardier.com/
Where in they supply and ship parts, GM sets up manufacture and maintenance in the US, thus avoiding some of the dust up we’ve seen over the buy American policy that seems to irk the canadians.
While there may be no real financial benefit for GM for this, i think it could be huge positive PR. And provide at least some jobs, also a positive.
It’s just a thought.
What about the future, what about small fuel efficient vehicles? When you ask GM about this, they’re always say something about Chevy Volt, it seems to be the car to solve all problems. Unfortunately this car will be too expensive and big. Low volume looks very likely, so why not take care of the other brands who can provide small, efficient vehicles today???
dazed,
I wasn’t going to detail my reasons why I dislike the idea of shoving manufacturing over to China. But here are my primary reasons. It boils down to intellectual property management. As it is now, if you are a foreign company setting up manufacturing in China, you are required by Chinese law to allot a certain percentage of the company to Chinese interests. This includes sharing developed technology with other Chinese companies. This for Chinese companies is a huge advantage. So a car company goes into their market with 100 years worth of engineering experience and technology. Those Chinese firms gain that knowledge instantly and with their cost-cutting labor force can create the same item for a fraction of what it costs anywhere else.
If that were all there was to it, then big deal. They would have their companies to compete against others around the glove- just like Korean, Germany, and Japan. The problem is that China even now has a horrific track record of respecting intellectual property and even brands. There have been even very recent cases of Blatant plagiarism. For example, look up the Geely GE, which is a complete clone of the Rolls Royce Phantom. They have done this time and again and in most cases their government looks the other way. Another example is Honda. They broke into the Chinese market years ago with small motorbikes. Chinese companies took these bikes, copied them so perfectly that the engine parts are actually interchangeable, and then sold the bike for a fraction of what Honda did. Got to any number of cheap tool and equipment stores. A lot of the gas engines they sell there are Honda clone engines. I could go on and on. But bottom line- they copy other company’s work and that is not the same as trying to break into a market with your own inventions and work. That is not ethical and I do not support it.
But the bottom line is that there is a difference in having to compete against a country that has its own brand of technology, brands, and unique products versus one that consistently knocks-off and copies. Despite what you might think, I am all in favor of China’s rise. Their rise likely means a boon for US companies ( if they can get back on their feet).It also means their middle class will grow and ultimately start to diminish some of the unbeatable cheap labor advantages they have now because this newly minted middle class will demand higher wages, which means some degree of global economic equilibrium.
But I can’t help but feel that if GM goes through with shifting manufacturing to China even in small moves will ultimately become a decision they cannot reverse. I just ask that they think about it a bit more.
Edvard,
From what I understand and have heard Japanese used to copy too. They just got really good at it and used it as stepping stone. I am referring to WWI and WWII vehicles where the Japanese were able to take scrap sold as bad parts and pieced together whole engines. I’ll have to dig around a bit more to verify this story. I was told that at some point Japanese engines had interchangeable parts with certain American engines.
I agree with you on IP. GM is foolish to sell any of its brands with engine and drive train intact. For instance the sale of Saab or Saturn with GM engines (which are the ones they use in everything else) would be foolish. Why hand over GM engine technology…
I’m not a huge fan of developing China’s technology. In the short run it will be profitable for American companies but in the long run it will cause a whole bunch of other problems.
Just my opinion.
I cant wait to see these cars that are going to blow me away! The cars coming out right now are already blowing me away so I am soo excited because I know they will be even better then the ones now! You have done a GREAT job on your designs! Keep up the GREAT work GM!
I’m very dissapointed that you are going ahead with plans to call the next Cobalt the Chevy Cruze.
You just lost thousands of sales. Dumb dumb dumb
“He didn’t say that GM’s peice of the pie would increase, what he did say was that the pie will eventually get bigger. If you keep the same portion of the pie, and the pie gets bigger, that means you sell more cars.”
I see nothing to guarantee that as “the pie gets bigger” the GM share will automatically increase proportionately. It’s entirely possible that as “the pie gets bigger,” GM’s total sales may decrease, without some drastic redesign of the product in the “value priced” segment.
“Gettlefinger, it’s high time you take your lazy overpaid work force and find something else to do. GM needs to hire a competitive cross-trained workforce free of your outdated rules and maybe they will have a chance to prosper in this country. As long as GM has the UAW noose around their neck, the end result will be both of you left hanging for dead.”
Right, get rid of the UAW workers so GM can replace them all with illegal immigrants. That’s a really smart comment. Not.
“When you ask GM about this, they’re always say something about Chevy Volt, it seems to be the car to solve all problems. Unfortunately this car will be too expensive and big. Low volume looks very likely, so why not take care of the other brands who can provide small, efficient vehicles today???”
Unfortunately, GM has forgotten how to make money at the core business of building large numbers of inexpensive, reliable, durable, economical cars; too many years of making high-margin “trucks” that skirted the DOT and EPA rules for “cars.”
As a younger (27) faithful GM customer, I am unsure of how I perceive GM’s latest business moves and their direction in products. I have purchased 5 New GM vehicles since the year 2000. I even worked for a Buick Pontiac GMC dealer. I’ve owned the following:
1997 Chevorlet Monte Carlo Z34 (still own)
2000 Pontiac Grand Am GT1 (total loss – accident)
2003 Pontiac Sunfire (still own)
2004 Pontiac Grand Am GT1 (replaced my 2000 and still own)
2007 Pontiac G6 GT (still own)
When I heard of Pontiac’s demise, like many, I was upset. I’m planning on purchasing a newer vehicle and thought the G8 might be my car. When I saw the new Buick LaCrosse I figured I would wait and test them both out. Then online I saw the New Buick Regal available in China.
My question to GM is if the plan is to eliminate Pontiac and keep Buick, why are you exporting the better Buicks to China. I get that Buick is like the iphone of vehicles in China, but if it’s really going to make it as a core brand, vehicles like the Regal and even Park Avenue need to make it our shores here in the good ol’ USA.
Mr. Henderson, please do not allow Opel to be sold off! The new Insignia and Astra models are desperately needed in showrooms here in the states. Those are the products that I feel will renew the faith I have in your great company, and I believe that those in my demographic feel the same way. Find the funding to re-ignite the Alpha Platform project, Cadillac needs a true 3-Series competitor, not a rebaged Malibu. The Camaro is a great vehicle for the time being but use the Alpha architechure to offset the cost and prepare for the Next Gen Camaro, it will have to be smaller to attain better MPG and to compete with the Next Gen Nissan Z’s and the lighter, nimbler Next Gen Mustangs. Although Cadillac has not had to share much with regards to Platforms and R&D in order to be viable, in order to stay in existence, changes must be made!
I will continue to believe in GM… Please don’t force me to the Blue Oval…
Global, that’s the thing. The Holden Zeta has been engineered for a large audiance, but held back until it’s potentially largest market finally got the G8. Killing Pontiac after the investment in Zeta and Kappa,and not just rebadging, a GM original, why not just slap Bob Lutz, since the Aussies just seem to love them He had a vision of making Cadillac a global brand like BMW and Mercedes. The CTS , phase two, Alpha. That’s where the profit’s are. Imports for Buick from Opel ,China would fill the void. Sell the rest of the imports through Saturn dealers to their new owners. Lord knows you have a bunch of products on the world maket that are’nt sold here.
My parents, who up untill now have been died in the wool GM-only customers just shocked me yesterday when they told me if GM starts selling cars here made in China they will no longer buy GM and will buy Honda.
Think about it GM – do you really have more to gain by doing this? My parents are the kind of GM customers that, if you loose them, you have no one left.
The news is not good this morning for GM. I cannot put my heart into any American corporation that is now is owned by the US Government and the UAW. The General Motors I once knew, died today.
“Joe D, Cleveland OH
My parents, who up untill now have been died in the wool GM-only customers just shocked me yesterday when they told me if GM starts selling cars here made in China they will no longer buy GM and will buy Honda.
Think about it GM – do you really have more to gain by doing this? My parents are the kind of GM customers that, if you loose them, you have no one left.”
My parents sold all their stock in GM (lost money but not as much if they ad kept it now the Obama will own GM).
They always bought Chevy. No more. 2 years ago they got a Sonata. This years it’s a Ford Fusion.
After blowing through TARP money (and us taxpayes never seeing it given back) and screwing over so many US workers, no one in my family is interested in GM anymore.
How does General Motors intend to stay in business by cutting customer service. GM has already begun “stiffing” owners on warranty work which is a sure fire sign GM anticipates going out of business. How do I know? I have first hand experience with how they have treated me on warranty work. About a year ago GM replaced the transmission in my GM vehicle but charged me over $1500 in labor although they did provide the “new” transmission under warranty. In about a year when that transmission failed, I found out rather than a “new” transmission they told me I was getting, they installed a salvaged or rebuilt one. When I complained that I had been lied to about getting a new transmission and asked them to make good on the warranty, I got absolutely NO satisfaction and GM wants another $2200 to fix the defective transmission they gave me.
One can only conclude that by lying to customers, performing faulty warranty work and installing “new” transmissions that last only a year, GM isn’t worried about customer loyalty because they are not going to need customers in the future. Therefore, cutting dealers may be a good idea. If you’re out of business, you won’t need them either!
“if GM starts selling cars here made in China they will no longer buy GM and will buy Honda.”
Jack, what does it make better to buy a car imported from Japan instead of China? After all, China has become the most important market after the US. So I can’t see anything evil, if GM produces a few models over there as well, which probably anyway just will be compacts or sub-compacts. German manufacturers also produce some of their models abroad, nevertheless nobody would boycott a VW Touareg, which is made in Slovakia. All those people, who are so strongly supporting Japanese brands seem to overlook the clearly protectionist attitude of Japan. I’d like to hear Honda’s or Toyota’s bosses, if the US would put the same tariffs on their products, like the Japanese do on US-vehicles.
” Why should we wait on GM, when we can already get great products from Honda, Toyota, etc?”
Jeff, in which terms is the current Chevy Malibu, just as one example, inferior versus the Japanese competition? That’s something the majority of car journalists not seems to think.
Fritz,
How does GM plan to capture younger buyers after eliminating BOTH Pontiac and Saturn? After all, being competitive in this segment is critical to GM’s long term success. Your company really didnt consider all the implications of shutting down the former “excitement” brand, Pontiac. All this will do is alienate a large group of loyal buyers.
Gereon,
He didn’t say the Malibu was inferior. He just said that Honda and Toyota were great products. They are, and so is the Malibu.
GM’s problem is not their products, but rather two other issues:
1. Many people’s continued poor perception of GM after three decades of mismanagement, sometimes shoddy products, and taking the American consumer for granted.
2. GM’s dealer network. Just as with GM Headquarters, GM dealers have taken the American consumer for granted. Neither buying a car from, nor having one serviced at a GM dealer is a pleasurable service.
Gereon,
Actually Joe made that particular statement. But I would be worried about Chinese stealing the tech GM brings over though.
Back to my point, after dealing with constant problems with emissions controls and plastic intake manifolds on 2 different Checy’s, plus sub segment quality, my parents jumped shipped over 2 years ago.
The new Malibu seems nice. But too little too late. Look at Pontiac.
This is just an example of mismanagement killing a company. GM drove themselves in slow motion over this cliff.
“So, explain to me once again why I should buy a Chinese-made Chevy instead of a Toyota made in Indiana? Why should I patronize a company that’s laying off friends and neighbors and ignore a major employer in my state? Why would I choose a car with a 5-year warranty, when several others are offering 10 year warranties? ”
As usual Beaugrand you have a poor grasp of the facts. There are no Chinese made Chevys in the US market so I have no idea why you should buy one. While there are quite a few foreign owned plants in the US producing cars, many of the components in those cars comes from Japan. For example, Toyota’s NA engine and transmission capacity is FAR lower than its vehicle capacity. What does this mean? It means that a huge proportion of Toyota’s powertrains are shipped over from Japan. For the most part transplant operations are just final assembly locations. In some instances many of the parts come from the US but that is primarily for US only models like the gas guzzling Tundra. Going forward, CAFE rules will dictate less of a focus on large SUVs and trucks which comprise a large proportion of what foreign automakers build in the US. A focus on smaller cars will mean more imports from Japan because thats where they produce their most efficient models.
Only one automaker has a 10 year powertrain warranty- Hyundai. Toyota, Ford, Honda and NIssan have seen no need to mactch that warranty and neither has GM. Stop acting like GM is alone in not offering 10 year powertrain warranties. Chrysler offers a lifetime powertrain warranty so perhaps you should check out their vehicles.
JoeD:
Why would your parents drive HOnda when Honda imports vehicles from Canada and Japan? Do you think the Fit is made in the US? How about the Insight? How about the Element? What about the TSX?
“Unfortunately, GM has forgotten how to make money at the core business of building large numbers of inexpensive, reliable, durable, economical cars; too many years of making high-margin “trucks” that skirted the DOT and EPA rules for “cars.””
Again you reveal your ignorance. GM’s large trucks and SUVs were always classified as TRUCKS. They never skirted any rules or pretended to be anything but trucks. GM was unable to make money from lower priced cars due to their structural costs. Cars are not a very profitable enterprise to begin with so any burdens that increase your cost per vehicle can easily push you into negative territory. The Japanese were able to make marginal profits on smaller vehicles because they were not burdened with the labor and legacy costs of GM. Trucks sold at higher prices and thus were able to generate profits for GM in spite of their high structural costs. They never stopped making cars or investing in cars. That myth has been repeated so many times by GM haters such as yourself and yet there is no proof of this. I could go back over the last decade and name at least 3 new or heavily improved GM cars that debuted every single year.
The entire point of this restructuring plan is to lower costs so that GM can make a profit on virtually every vehicle it sells. Its not rocket science- even if you try to pretend otherwise. If you lower your cost per vehicle and maintain or increase your revenue per vehicle you will make a profit on each vehicle. Your endless rants don’t offer anything new or salient. Nothing you’ve stated hasn’t been covered by countless other GM bashers who wouldn’t know the facts if they were standing right in front of them. You provide no context or factual basis for anything you say and you offer nothing but negative predictions about the future of the company. If you have so little faith in them I question why you waste so much time posting here. Why not go buy a Honda and relax?
In case anybody missed this:
http://www.detnews.com/apps/pbcs.dll/article?AID=/20090409/AUTO01/904090422
One more comment about China: Why is Buick so popular over there? Just curious because it makes zero sense to me. Perhaps others who’ve been there know why.
“While there are quite a few foreign owned plants in the US producing cars, many of the components in those cars comes from Japan.”
Sheth,
Many of the components on so-called “U.S.-built cars” made by American car companies also come from outside this country.
Sheth,
As you wave the flag in our faces, you might ponder the notion that people aren’t buying Toyotas or Hondas because they are Japanese, they are buying them because they are Toyotas or Hondas. Those brands have proven to deliver satisfaction and value. That’s how you do it.
Actually, Sheth, coming from a region that has been an essential part of the automobile manufacturing business for the past century, living in a city that, prior to 1919, was THE major automobile-producing city, ahead of Detroit, and that is still quite significant in producing many of the components used in assembling automobiles made, not only by GM, but also by the other domestics and many “foreign” makes, I have a pretty good grasp of what’s been happening to the American manufacturing base over the past 40 years, as many of our residents have been sold out by the corporate culture that had led the US automobile manufacturing industry, as well as most other manufacturing industries, to decline and ruin.
I am quite frankly disgusted with the domestic automobile manufacturers bleating and whining about how they have been so “badly treated” by the competition and the media, when the overwhelming cause for their problems has been a corporate cultural tradition of isolation and insulation from reality at the top levels.
It’s clear to all of us here at “ground zero,” where the jobs have been, and continue to be, exported, that the Chinese Chevys are coming. We’re also quite aware that an increasing number of components used in domestic vehicle assembly are coming from overseas, not our local manufacturing companies.
We’re also aware that GM and the other domestic “car” companies have capitulated the core business of building large numbers of inexpensive, reliable, dependable, economical quality CARS to the “foreign” companies, who will still make a profit assembling their product here, while GM imports their rebadged product from Asia.
And my understanding is it’s not just Hyundai/Kia but also Mistubishi and VW that offer 10 year powertrain warranties. Suzuki, Jeep, Isuzu, Dodge and Chrysler offer 7-year warranties, Infiniti and Lexus offer 6-year warranties. Apparently only Mitsubishi and Hyundai/Kia are the only ones that offer BASIC 5-year warranties- I guess they’re just more serious about selling cars.
GM brass is still talking about things “getting back to normal.” THIS is the new “normal,” the golden past they’re still living in isn’t coming back for years, if ever, and if they can’t make the necessary corporate cultural changes they’ll go the way of Packard-Studebaker, builder of fine automobiles done in by their own bad business decisions.
Maybe Ford will be solvent enough to pick up some of the pieces.
edvard:
Regarding your question about Buick… and please if anybody else could help with this please chime in. I worked for a Buick Delaership for about 4 years total. Even Selling Buick’s here in the states I noticed a fair amount of asian customers, typically of the older generation. I had the pleasure of selling a Buick LaCrosse to a uncle of a close friend. He was an older gentleman and i asked him that very question, his response made just a tad bit of sense. Apparently after WWII, because of the issues with China and Japan, alot of Chinese Nationals were of course furious with Japan. When Japan started exporting vehicles alot of Chinese Nationals would not buy Japanese, much like alot of WWII vets here in America won’t but Japanese or German. Of course… this is the story and opinion of one man but it must’ve came from somewhere right??? It makes sense… kinda…
Just to let you know: I buy Chevrolets. Their are only three American car manufacturers. And they are General Motors, Ford-Mercury and Chrysler. The rest are imitators.
Detroit Auto Show-New Experience Marketing
US auto makers should come to terms with the fact that the Detroit Auto Show is an outmoded form of transportation display and automotive introduction. When US automakers are driving to Washington hat in hand looking for cash give aways-how can they justify business as usual at the auto shows?
I think the automakers should go back to basics. Here’s how you should approach unveiling your new models:
Go to a place where the climate allows you to display the new models outdoors.
Let the cars speak for themselves. Keep it Simple.
Park the car on a freshly washed concrete pad.
Cover the car with a beautiful, branded, satin cover.
Invite press to the area and have them stand around the tarp-covered car.
Have the brand manager talk about the car and pull the cover off (there, you’ve been theatrical).
Have the brand manager talk about the high points of the car’s design and engineering. Then have the brand manager introduce the car’s designer and the car’s lead engineer to answer in-depth questions.
Finally, let reporters drive the car.
Have a package the reporters can take with them that gives them a synopsis of the design, engineering, economics and EPA statistics. Put a CD containg print worthy glamor shots of the car in the package.
Boom. You’re done. And you probably saved ten millon dollars.
If someone at GM would do some research with companies that use vehicles they would find a solution to their problem. People are interested in dependablity and function. Long bed S-10’s and Rangers are still on the road because you can’t buy them. Alot of companies are searching for work trucks and refuse to buy the full size because of gas mileage and the 3/4 bed size of the Colorado is a joke. Small … Long Bed… Trucks…that get good gas mileage and you would not be able to keep up with demand. This is only a suggestion from someone in the Pest Control Industry where I have heard since the Long Bed S-10 left to be a topic in the industry meetings. How many trucks do you think this industry alone would purchase?
I agree with B Gayton post on small trucks. There is a segment of industry and even homeowners (the ones who are at Home Depot three times a week) that could use a small truck, smaller than the Colorado, myself included. I don’t want towing power, leather seats, navigation, etc. I want 30+ MPG in a simple, well though-out truck. I’m talking a truck akin to the El Camino of old with a fuel-efficient engine. A Cobalt with a bed! Sub $20k. Watch em’ fly.
Give up the ghost….GM is dead, never again will my family and many,many, friends buy a GM product…we have started a campaign to let everyone know of the inferior product and greed associated with your reinvented GM…ha’ha’ha’…….
B Gayton said: “I don’t want towing power, leather seats, navigation, etc. I want 30+ MPG in a simple, well though-out truck.”
GM has the perfect answer to your question in the Chevrolet Montana compact pickup truck they build in South America and sell only there and Central America. Don’t ask me why, but they don’t sell it in North America. Maybe the “suits” in the Ren Cen can answer that. Chevrolet Montana
If you can hang on, the Indian company Mahindra will also soon be be selling a basic pickup truck in the United States that should meet your needs. Mahindra pickup truck
I don’t see GM telling the public HOW it intends to address the quality or perception of quality issues. I am a baby boomer, whose first car was a Chevy Vega that died at 47,000 miles. In 1994 I bought a Chevy Prizm, because it was a twin for the Toyota Corolla, but its alternator kept failing every 20,000 miles – my mechanic told me while my car was basically a Toyota, GM installed Delco alternators, instead of Toyota’s – that pretty much explained the problem – GM quality!!!
My current family cars a Nissan Sentra and a Toyota Prius; my son just graduated from college and will probably claim the Sentra – I will look for a small wagon – like a VW Jetta Wagon or a Honda CRV. GM has nothing comparable (I hate the look of the Equinox)!
My sister still drives a 1992 Camry with 192,000 miles – she bought the car used in 2000, after giving away her Corolla, whose odometer gave out at 270,000, to a college student. I recently saw an old friend in San Francisco, who moved there from Chicago in 1986, driving his 1984 Honda Civic Wagon – he came to pick me up in the same car in 2006! My cousin drove his Suburu Loyale to a junk yard at over 280,000 miles because he was darn sick of driving it.
So, here is my question – what’s GM doing to ensure its cars will hold up will hold up like a Carolla, Civic or a VW?
Compare apples with apples. Not a 1972 chevy with a 2009 Japanese car. The Japanese really have you brainwashed. This is a me society. It would be nice if you cared about the country that you live in.
I traded in a 1995 Silverado with 221,000 miles in 2002. At 209,000 finally the water pump went bad. Otherwise it had only regular maintenance.
I’ve only bought new Chevrolets since 1977. Have you ever had a car towed because it broke down? I haven’t.
If you don’t have a job someday it will probably be because you keep buying foreign products. BUY AMERICAN-the job you save may be your own.
“So, here is my question – what’s GM doing to ensure its cars will hold up will hold up like a Corolla, Civic or a VW?”
Here’s the secret J. Ram: GM really doesn’t want their cars to last 200,000 or 250,000 miles. If everybody bought a durable, reliable, trouble-free car they could drive for 20 years and 250,000 miles, what would that do the the American auto industry?
GM has always wanted us to buy new or trade-in every two to three years, not every 20 years. Rapid turnaround has to be part of their business model. But there is a fine line between building short-lived crap that will totally turn us off and make us head towards the quality imports you mentioned, and building a quality car we might want to drive for 15-20 years.
There is no question GM and American autoworkers could design and build the best, most reliable and durable cars in the world. It’s just that it’s not in their interest to do so.
Japanese cars, like Obama haven’t created a new job in the U.S. Two years ago, Japan slipped up and put two commercials on the television about plants in the U.S. building their cars. The only problem was that the plants were all run by robots. The money for Japanese cars goes to Japan. If you love their cars so much, why don’t you move there. Love America or leave it.