GM Drives for Open Communication
By Fritz Henderson
President and CEO
Today marks a defining moment in the history of General Motors. Our new fast-track plan to form a leaner, quicker, more customer-focused, more cost-competitive company has the support of the U.S. government. It also incorporates the terms of our recent agreements with the Canadian government, the UAW and CAW unions, and a substantial portion of GM’s unsecured bondholders.
This New GM will be built from the strongest parts of our business – including our best brands and products. It will have a dramatically stronger balance sheet, with far less debt, which will allow us to better invest in our business and our future. It will have fully competitive labor costs and the ability to generate sustained and positive bottom-line performance.
We’re committed to open communications and I am personally putting a high priority on transparency. One way we’ll do this is by launching a series of live web chats on this website. I’ll kick things off later this week for one hour on Thursday, June 4 at 3 p.m. EDT. Following me, a steady stream of GM leaders from throughout the company will host additional chats, about two a week, on whatever topics are of most concern to you.
Today marks the beginning of what will be a New GM dedicated to building on only the very best of our recent progress in fuel efficiency, world-class quality, green technology development and outstanding design. Above all, the New GM will be rededicated to our customers. We don’t do that by working in a bubble. We do it by engaging with you, our customers and critics, our partners and champions, who are interested in our progress. I hope you’ll join us as we begin a new and better era for General Motors.
(To read a Spanish translation of this post, please click here.)
(Note: Below is video of Monday’s press conference with Fritz Henderson. - Will Stewart, blog editor)
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“We’re committed to open communications and I am personally putting a high priority on transparency.”
Mr Henderson,
Open communication and transparency. What a concept.
Then how about directing Pilcher and Fitzpatrick to start communicating with those who ordered Camaros under the early purchase program?
Will Grand Blanc WTC be a part of the “New” GM ?
…leaner, quicker, more customer-focused, more cost-competitive company has the support of the U.S. government … better invest in our business and our future. It will have fully competitive labor costs and the ability to generate sustained and positive bottom-line performance …
More things change, more they stay the same. I’ve never heard GM say they wanted to be a fatter, slower, less-customer-focused, over priced manufacturer that antagonizes the government, but there you go …
I sincerely hope the bankruptcy process will be fast and successful. I get so many compliments on my G6 GTP that I wondered why couldnt all the G6s have had 18 wheels and nice leather? The answer was the legacy costs ate into what can be placed in a car – your cost structure was too high. Now I see those costs being right-sized and I see better opportunity to put out great product on a consistant basis.
For all the naysayers out there, here is a list of GM cars in the US that have received excellent reviews from the press in the last 5 years: Chevy Cobalt SS, Cadillac CTS (Motor Trend car of the year), Chevy Malibu, Chevy Corvette (esp the ZR1), Chevy Traverse, Buick Enclave, Pontiac G8, Pontiac Solstice / Saturn Sky, Saturn Aura, Pontiac G6 convertible, the full size pickups, the full size SUVs (yes some people buy them). And lest we forget the Camaro….
Thats pretty good for the last 5 years (not to mention some cars that rec’d decent reviews in their first year like the Lucerne, G6, etc..). Now look at the next 2-3 years: a gorgeous Buick LaCrosse, the Chevy Cruze (a premium small car), a Chevy Volt that could be a game changer, a compact Chevy coming down the pipeline, a new Chevy Equinox small SUV, etc. They are really addressing consumer needs.
To all those who want to spew venom about GM on this site, your allowed. But for people who want to help return America’s industrial strength, all I can say is test drive a GM (or Ford) next time your looking to buy, esp if you have owned foreign for a long time. Your going to be surprised.
While I am still saddened that my Pontiac (my dad and I owned 8 of them) is going away, I am looking forward to owning GM for the rest of my life (of course, I’m hoping to sneak in an Aston Martin in the garage one day).
Eric Planey
…the Chevy Cruze (a premium small car)…
The Chevy Cruze may be a premium small car, but it also has a terrible name.
OK, let’s have some open communication. Please answer this:
Now that the US Government has the majority share* in GM, how will Ford be able to compete with you for government contracts?
The Government Services Administration (GSA) buys tens of thousands of cars annually for government agencies to use doing their business. What incentive will there be for GSA not to buy from a GM that is effect nothing more than another branch of the US Government?
In fact, how will Ford be able to survive against a company that has all the financial backing of the U.S. Government?
* As a taxpayer and now part owner of GM, if I visit the RenCen, do I get a key to the executive bathroom and lunch room?
I like my Saturn Realy, but don’t LOVE it.
Frankly, buying my second in 2005 was NOTHING like when I bought my first in 1993. It wasn’t the same Saturn experience that I had in 1993 and that I kept in my mind, that tore at me when I had to buy a Minivan in 1999 and I couldn’t get a Saturn one because there was no such thing, and that made me come in to buy one in 2005 when theer finally was one. I found the Realy overpriced for a minivan, especially as all it basically was a Chevy venture w/ a Saturn logo. It wasn’t a “real” Saturn. I got it anyway because I had hoped for that “Saturn Experience” I had with my SL2 in 1993 so it’d be MORE that a just a Venture. I wanted a decent Minivan and that fabulous Saturn “sales and service” that I had in 1993. I pretty much haven’t gotten either.
I can’t even get service locally/conveniently anymore at a Saturn facility. The closest one in Hempstead, NY isn’t in a great area, and isn’t convenient for me to leave it for the day. The Suffolk County one is too far to bother with. The Saturn Service in Hicksville, NY was FANTASTIC, but it’s gone. I’ve now had to go to a local mechanic as a result (it’s out of warantee, and IMHO it was a pretty lax warantee @ 3 years) and honestly, I don’t think they are doing the service right as there as so few Relays that were sold, so they don’t really know what they’re doing w/ it.
I want to buy American, but it’s hard when the products and services are not what they should be or once were.
I hated a Ford I had as a late-teens and my 1999 Dodge minivan gave me nothing but grief since year 3 of ownership. The Vue is to small for me/the family and the Outlook is a truck. I don’t want a truck, I want a decent Minivan and that fabulous Saturn “sales and service” that I had in 1993. That’s no longer available. I’m running out of options to buy American and get a good product.
If it Saturn doesn’t survive, I don’t know how I’m supposed to resell or trade-in the Relay as no one will want it. If I can’t service it correctly, I’m not sure I even want it any longer.
You need to be the company you were. I was PROUD to own a Saturn in 1993. It was a big deal. I felt like I was part of something special. Part of a family, a movement a truly “Different Kind of Car Company” and “People First”. It’s just another car company now. It needs to be special again … make good products and have good service to stand out, to make people want it, and to survive. You need to have people love your cars, your service, your brand, once again.
That’s just my .02
Finally, after YEARS of crap, arrogance, and the attitude that “What is good for GM is good for America”, the giant has fallen! Winning the trust back from the people your corporation has SHAFTED will not be easy. Do you really think that all the customers you have screwed are EVER coming back? I for one can tell you, I saw the way your company treated my dad when he was a consumer and it was shameful to say the least. I remember those times and can promise you that the day I step into a showroom of GM’s to give you all cash will be a cold day in a very hot place. We ( the taxpayers of America ) should have told you all to simply ‘DROP DEAD”
May Nissian even Ford swallow you up!
Have fun restructuring…hehehehe
I am sad for this day! I have been a very loyal owner of GM vehicles for 37 yrs. and I cannot, will not purchase another GM vehicle from a government, UAW owned and managed manufacturer. I still have the cancelled check for my first car, a Grand Am and GMAC/GM have made thousands of dollars from my purchases over the years and I feel I did my part to support a company that I believed in.
I realize it is politically correct to say that the Treasury Dept., the auto task force and the UAW will not have authority or influence in the redefined organization, but the reality is that GM will be directed at the behest of the government.
This is an even more distressing day to see one of liberties our country was founded on; the deterioation of capitalism.
I will miss OnStar!
Looking forward to some more blog posts by Fritz.
I’m still looking for a good explanation for why GMC and Buick are considered “core” brands in the U.S. Neither brand has any unique models. GMC has nothing more than rebadged and slightly restyled Chevrolet trucks and SUVs. Do you really need a “truck” brand? All the Buick models are rebadged and restyled Chevrolets and Cadillacs. It is GM’s “Mercury”, a brand with no vision and no real place in the lineup. The high end of the Chevrolet price scale overlaps with the low end of the Cadillac scale. Where does Buick fit in? Why keep investing in these two relatively pointless brands?
So, Mr. Transparency, do you repudiate Bob Lutz’s comments that global warming is “a total crock of sh**?”
Are global warming denialists still going to be welcome in “the new GM?”
Do you really think the best spokesperson for GM — Mr. Lutz just appeared on David Letterman — is someone who doesn’t even believe global warming is caused by human activity?
Mr. Henderson,
I have been a loyal GM owner until June 1, 2009. I will no longer purchase a GM car because owners of the 566 million shares of GM stock and the holders of 27B of bonds have been completely written off by you, the CEO and the US Government – e.g. President Obama.
Why would ANYONE invest in the new company? You just zeroed out the existing investors.
Because of this, I will not buy a new Cadillac CTS this year, but I will buy either a Lincoln or luxury transplant car but here in the USA.
JE
It is a sad day when a government interferes in private industry over and over again but that is beyond my (our) control. Having said that, it is now time for all citizens to buy American products. Not just cars and trucks, all American made products. Stop buying foreign made, send our money overseas, throw away products and buy American made quality. I am not saying just buy GM, we need a healthy Ford and Chrysler (maybe an American owner will buy it back from Fiat in the future). And to the Union Employees, stop buying foreign cars and trucks, buy American. There are way too many foreign vehicles in our parking lots.
Whether you think GM has been arrogant, aloaf, self-serving, unconcerned, or whatever, I can tell you from recent experience that things have changed at GM. The survival of our economy depends on GM and Ford’s health so therefore our survival is dependent upon ourselves.
Travelling the country recently, I found many Americans didn’t have a clue as to the impact a GM and Chrysler bankruptcy would have on most of them. They were not in the automotive business so they thought they would be exempt from the repercussions. They didn’t want to support saving GM but were for supporting AIG and the Banks. Then dealerships started getting closing notices and along with them came concerns that local hair saloons, neighborhood bars, tanning shops, cell phone stores, the plumber, corner grocery store would be affected.
Where will it stop and who will stop it? Only you have the power! Buy American in all you do. The job you save could be mine…or maybe even yours or your son’s and daughter’s.
Charles- man-made global warming is a crock! Explain how the earth warmed up after the ice age, when there were no cars. If you are so concerned, encourage people to plant more trees. Remember, humans and animals exhale co2 and trees take in the co2s and they produce oxygen. Last I knew, people and animals need oxygen to live. Also, if Al Gore is so certain that planet earth is being destroyed by these ghastly co2S, why doesn’t he stay out of private jets. Many scientists are debunking global warming. smartgreenusa.com is a great website. Go into their archives and do some research. Also, why won’t Al Gore debate the Czech/EU president about so-called global warming? This is about global governence not saving the planet
I can not believe that GM didn’t see this coming – but then again, I can’t believe that the finance industry didn’t see the housing collapse coming either. GM and the mortgage companies were fat hogs at the trough for years but now your stock is 74 cents and dropped from Dow Jones – hope you enjoyed the fat years – they’re history now. Greed breeds failure.
Thanks for your question and we definitely appreciate your concern regarding Camaro ordering.
We’re working to fulfill all Camaro orders as quickly as possible. It’s a hot vehicle and we want to get them into our customers’ hands asap. At this point, more than half of the pre-ordered vehicles (over 10,000) are in production, in transit, or have already been delivered. We’re working to get the rest of the cars produced and shipped ASAP.
Please stay in touch with your local Chevrolet dealer, or our customer assistance center, for the latest information.
Galvin/Phillip:
I find your positions on GM to be ridiculous. Its illogical to suggest that taxpayers are getting the bad end of the deal while simultaneously swearing off GM products and doing all you can to badmouth the company. My perspective is that anyone hoping that the company fails essentially doesn’t care about taxpayer money at all. Why would you root for the company to fail if that means the government will end up losing billions? That makes no sense to me whatsover.
Charles:
Hating an auto company because you don’t like the comments of one executive is absurd. Many people have doubts about global warming so your inference that Lutz is in denial is off base. As an auto executive he was not obligated to believe in global warming and you can rest assured there are people working for Toyota, Honda, Ford and numerous other automakers who have doubts about global warming. All that should matter to you is the product that GM offers. If they continue to increase fuel efficiency and launch hybrids you should be satisfied. Automakers offer hybrids and other efficient vehicles because they believe there is demand for those vehicles, not because they are concerned about saving the planet. If Toyota was really concerned about the enviroment they would consolidate their US product assembly in the US and stop shipping hundreds of thousands of vehicles thousands of miles from Japan each year. They also wouldn’t have spent $1.2B building a plant for pickups that get 14mpg. I’m sure you wont address those issues because global warming zealots never deal with facts that may dilute their arguments.
“Because of this, I will not buy a new Cadillac CTS this year, but I will buy either a Lincoln or luxury transplant car but here in the USA.”
Good luck with that one. Infiniti and Lexus products are built in Japan. All BMW and MB cars are built in Europe. With the exception of the TL, Acuras are built in Japan or Canada.
I’m pretty sure a lot of people will be willing to buy stock in the new GM. Why? They will be positioned to make money in the near future due to lack of debt. Few, if any, automakers will be better equipped to turn a profit. Not even the Asian automakers.
I have been a loyal GM customer all of my life and worked for GM.I just bought 2009 Chevrolet Equinox in February. I was furious after I bought it because of where the different parts of the car was made.
If the American people are loyal to Gm then why can’t Gm be loyal to the American people and make the cars in the USA.
It is time to come home to the USA and quit supporting everyone else.
First of all, you stood up in front of those cameras today and twisted the truth. You are closing 14 U.S. Plants yet you STILL plan to double your foreign made imports. I don’t care who’s pot of money you get it out of you are still costing U.S. jobs for cheaper, exploited labor. Therefore, in a round about way my husband will be paying for foreign workers to take his job from the federal taxes he has to pay out of his unemployment.
Second, do you plan on eliminating the Buick La Crosse? If not, then why did you close Flint Power Train North that makes that engine? Do you plan to now make that engine in China or Korea or Mexico or anywhere else outside of our borders? I’m guessing that’s probably a yes. That’s the thanks my husband gets for giving you 30 yrs. of his life. He never misses work. He is never late, nor does he leave early. He has always done his job to the best of his ability. He was always loyal to you, but we see loyalty only goes one way!!!!
My husband started buying your vehicles in 1977. We have never bought anything other than a GM vehicle, 18 of them as a matter of fact. We have had countless family members that have bought your vehicles because my husband works for you. As a matter of fact my grandfather started working for you in 1928, my father and step father worked for you, my daughter works at the same plant as her dad, I have 7 family members that still work for you (3 of them are Master’s Degree Engineers). I don’t think I have ever ridden in any vehicle other than a GM vehicle in my entire 45 yrs. of life.
However, WE WILL NEVER BUY A GM PRODUCT AGAIN!!!!! Go ask your low wage Asian or Mexican workers to buy them. Oh yeah, I forgot, they can’t afford one with that $2 an hr. or so you pay them…….
“All BMW and MB cars are built in Europe.”
Sheth jones,
I’m sure the people that work at the BMW plant in Spartanburg, South Carolina, and the Daimler plant in Tuscaloosa, Alabama would disagree with you, although the Alabama plant does build mostly MB SUVs.
Have fun taking orders from the Obama administartion! Don’t even think about building any profitable SUV’s. King Barry won’t like that. Wagoner’s out. Gettlefinger stays. Not a peep out of GM management! You guys are pathetic! Thanks for wiping out my stock. Idiots!
I understand that GM didnt have the resources to invest in Pontiac under the extreme conditions that now exist. However I think GM should retain it as a dormant rather than phased out brand. If better times ever come along GM could then bring it back as a sporty premium brand. I understand that couldnt be done now but if the new GM thrives I think it could be brought back and sold through Buick dealers. I really hope that the new GM will fight to gain market share. I am sick of seeing American brands being kicked around. I am also sick of seeing the American car companies being disparaged by know nothing elitist journalists. GM did build cars people want to buy. The problem was a pro-foreign car prejiduce on the the part of some consumers and the wall street crises which was precipitated by greedy investment bankers.
Mr Henderson, am I correct in hearing within this quote, “New GM will be rededicated to our customers,” that GM will no longer exist to serve the shareholders, as in the past? You have emphasized this principle all day today, so it seems you’re serious.
The decline of the US auto industry started in the 1970’s when the first EPA mandates on NOx emmisons first started. A little later catalytic converters were added to the cars, along with lower compression ratios and lower octane fuel to cut down on pollution, but ruined the performance and gas mileage of the cars. Finally, CAFE standards trashed the cars that the people really wanted back then (large family cars and muslecar sports cars) and instituted compact cars that got good gas mileage, but were ugly in style and had no room in them (chevy Chevette). What the big three need to do is build the cars the American people really want (not what the government says the people want) and tell the government to take their CAFE standards and stick them where the sun doesn’t shine. PLEASE GM, BUILD CARS THAT THE AMERICAN PEOPLE WANT AND TELL THE GOVERNMENT TO LEAVE YOU ALONE. You don’t really need their help to be sucessful.
All,
We appreciate your comments today, even the tough ones – we intend to respond and want to make sure we are able to answer your concerns and thoughts. please allow us until tomorrow to respond. (And find the right person to address issues where necessary)
Regards,
Wendy Clark
My first GM was a 1957 Chevrolet. I have owned many since then and can honestly say that I have had one comment after owning each one and that is “I would never own another GM again” . I broke that rule but never again. I owned a Corvair, I owned a Pontiac Phoenix ( a death trap if you applied the brakes on a wet road), and I owned a Suburban. Air conditioner would have been OK for Moscow, not Texas.There were others too, all average or bad. I remember the full page advertisement in the Wall Street Journal apologizing for prior poor quality. That was what, 10 years ago? I fell for that as a sucker would. The same old story. I own two Fords (great) and a Honda (great). GM didn’t get it before and there is no reason to expect any better in the future. I would rather have seen my tax dollars go to Studebaker or American Motors than to GM. GM does not deserve to be in business and that’s been decided by the American public in the free market place.
For GM to become truely “open and transparent ” it will need to come clean on the real reason why GM has been going downhill for the last 30-35 years.
As far as i’m concerned GM or chrysler or Ford could all make cars that get 100 miles per gallon and I still wouldn’t buy one. I see the prototypes for the “new GM” products and it appears to be the same old hideous, outdated yet trying to look futuristic body designs. Bottom line for me is when compared to the elegance of a mercedes/BMW or sleek body of a nissan, the US car designers just don’t get it. I really don’t care how many chilled cupholders you provide, i won’t buy american until you come up with something that doesn’t look ridiculous on the road!
Sheth. Stop talking. Please, you’re not making sense.
Taxpayers are getting the bad end of this. The government was put into a bad position on this one. The wise thing to do would have been to let it fail all on it’s own without any help. It goes against economic nature to support something that is not profitable. And now as we own 60% of “New GM” the American public is subject to losing much more than letting it fail by its own hand.
As for calling out Galvin and Phillip. It’s not very illogical at all. It would be illogical for them to fall in line and support something they do not. What you’re asking the American public is to only buy GM products because all of us are forced to be vested in the company through this buyout. Galvin, Phillip, and I realize that this is a huge mistake. This company will fail not because of badmouthing but because they produce inferior products and now have an embarrassingly poor track record to go along with it.
Oh and by the way Toyota has many many plants in the U.S. They aren’t shipping all their cars from Japan. They realize it only makes sense to provide enough manufacturing sites in the U.S. as needed to meet demand in the U.S. Just like GM and Ford have plants in Mexico.
Just because their debt is forgiven doesn’t necessarily mean that they will turn a profit. If they’re lucky. GM will be able to hold on for dear life offering 2 or 3 cars for niche markets and bank on their volt. And maybe in 10 or 20 years they can start looking at being innovative. Even the Dow and NYSE have removed their listing.
GM.
Are you listening?
Good Luck, Honestly.
But it’s going to take a lot more than hope to make you profitable. I honestly believe you’ll fail but Good Luck anyway because I’m paying your hope with my money starting today.
This New GM will be built from the strongest parts of our business – including our best brands and products.
GM’s best brands didn’t receive a fair shake on products and promotion, namely Oldsmobile and Pontiac. We realize GM can’t do everything at once, but Oldsmobile was cancelled for the wrong reasons.
Buick = Luxury
Pontiac = Sport
Oldsmobile = Luxury + Sport = The best overall synthesis of the affordable luxury segment.
GM has seen its market share in cars slide in the affordable luxury segment. We believe that Oldsmobile should lead the American car brand resurgance for GM in North America. We prefer Oldsmobile to Buick since Olds unites the Pontiac and Buick customer for the affordable luxury sport segment.
Oldsmobile appeals to Pontiac and Buick buyers. High schoolers choose Oldsmobiles where they can find them. If we can’t have Pontiac, then we ask for Oldsmobile to lead the way. Our instinct says, Oldsmobile should lead.
Please don’t recite Mr. Wagoner’s reasons for cancelling Oldsmobile, because many GM enthusiasts feel he was mistaken on this issue (and that is an understatement). GM invested in Oldsmobile’s technological prowess and racing heritage. The base enthusiast is ready to rally behind Oldsmobile. GM invested in one its most excellent cars, namely the Aurora. Don’t back away from one of your best moves ever like the Aurora. It made inroads into territory that GM didn’t realize. Likewise, the Camaro is leading GM’s image, and the enthusiasts told you so. We know the Aurora is an excellent car we have experience with it. We know GM builds the best.
Oldsmobile style has credibiltiy. The Olds concepts though few, showed insight in headlight design. The Alero style gained popularity virtually on its own, without any advertising or exposure compared with similar cars. Oldsmobile received little advertising and it only featured 3 car models, the dealerships seemed few and far between. So that’s was not a proper representation of the brand potential. If you want to wake up your base customer give them the Cutlass Supreme with a 5.3L and then watch the cars fly off the lots, and you’ll see your numbers rise beyond belief. People like Oldsmobile, they just want that GM style again. The 5.3L V-8 with active fuel management achieves as much fuel efficiency in the real world as the V-6. Let the customer choose it.
We won’t buy a foreign branded car. But its getting increasingly difficult to find style for cars among the American brands. Malibu and 2010 LaCrosse so far have no small 5.3L V-8 offering to appeal to GM’s base customer seeking stylish affordable luxury. How long do you expect your buyers to wait for the next car. Retail turn is important. Buyers would trade sooner if GM offered the stylish sedans/coupes they sought, especially in that affordable luxury segment
My Camaro led many to buy a new GM product. They’re impressed by its quality and durability.
We’re proud of GM and its accomplishments and that GM is such a great humble company, we realize GM is doing all it can for America.
My 1987 Firebird V-8 4 bbl (linked below) converts many potential GM customers. This Firebird has plenty of miles, by the way, and it looks like it rolled of the showroom floor – its gets driven. The highschoolers are in awe just at the sight of it. As you know it takes 87 Octane, and even with its original V-8 it gets 21-27 mpg. In fact, the 1987 Firebird V-8 4 bbl achieves better fuel economy than a new Nissan G35 V-6 at about 19 mpg average so I’m told, and those take 93 octane.
And for the media, the interior on the 1987 Firebird is still nicer than a newer foreign branded car. Interior, yes GM has the best interiors.
http://www.cardomain.com/ride/3317037
The foreign cars cannot compare.
GM didnt’ cause the recessions or the wars of decades past that have ravaged the U.S. economy. GM did not ask for the high tax rates and the excessive bureaucratic regulations that have driven American jobs away.
Mr. Fritz,
The issue is your company is selling snake oil. Why should we now believe your new found, “Today marks the beginning of what will be a New GM dedicated to building on only the very best of our recent progress in fuel efficiency, world-class quality, green technology development and outstanding design.”? Why should we believe your, “We don’t do that by working in a bubble. We do it by engaging with you, our customers and critics, our partners and champions, who are interested in our progress.” Your company has proven time after time that it does not care. Your designs are not fresh, simply redone. Your technologically is lacking. Your new small car? I’m thinking Vega, Corvare, and Azteck. All pushed and spun as great new innovative quality driven responses to customer wants and desires. All monumental failures an half hearted attempts to compete in segments you really did not want to be in or understand. as for transparency, yep I can clearly see by your new commercial, you think telling us this is for the better and should be seen as an opportunity, only proves you do not understand. At least admit you screwed up big. At least give us a glimpse of how you will pay ME the American working Joe, Back. Me the $12.00/hr worker that made your failed company by buying your product. Yes there should be some serious sacrificial blood letting at the very top and in your board room. No not just the past president resigning, wow he left, and how many millions did he take with him? We know the $1.00/year salary is spin for TV. You boys make your real money in many other tax sheltered ways than your annual salary. I think it only fair that at least a few of your top people not only be replaced, but sent packing with no golden parachute made possible by my tax money in the form of a bailout, but instead publicly sent packing, no retirement, no ongoing medical, just flat let go like the thousands of hourly workers whose lives you have ruined.
An old nursery rhyme has a line that reads “A man of words and not of dreads, is like a garden full of weeds”. Potential but nothing to show for it. I will not believe or support your company until you show some regret for what you have done, and real innovation with designs people actually like, and product that works. Every time, no recalls, no “buy the second or third year after they get the bugs worked out, none of it. You blew it, say so, prove that you will and have changed and then, maybe just than, I can believe my $12.00/hr tax bailout for you was worth my families sacrifice.
John E. Shultz
Perry, Iowa
Because of the government’s interference and %60 ownership, I fear such American Icons as the Corvette, Camaro, CTS-V, Suburban, Tahoe, Escalade and anything big or fun will disappear under this dumb administration’s fake green and “change” image. No wonder Bush didn’t want anything to do with this, he believes the government should stay out of any company’s business and let the market forces decide on their own! That’s how the market and economy recover! This new administration lacks any sort of common sense, isn’t afraid to squander the American Public’s money on money pits like dying institutions such as GM, Chrysler and all the insurance companies and banks that continue instead spending all that money on America’s deteriorating infrastructure, education and health systems.
Goodnight GM.
I agree with Jeannette’s comment. My husband and my two “20-somthing” kids are proud Saturn owners, of the old style Saturns with the plastic exteriors. We have owned a total of five and loved every one of them! GM destroyed that company when they “changed direction” to market to a broader audience. We loved our dealership. The service was excellent and we were treated like family. The Aura is a beautiful car but the price was too steep, as compared to the L-series it replaced. We, also, waited patiently for a minivan from Saturn. We were informed at every visit for service that it was in the works. We purchased another Dodge minivan when ours died and Saturn still had not gotten theirs on the showroom floor. Shortly after, the Relay came out and we were disappointed to see all metal exteriors. It was the end of our loyalty to Saturn. It’s too bad they felt that Saturns weren’t marketable. We get 30-35 mpg with our S-series and Ion and the purchase prices were much lower than the foreign cars. We have had very liitle repair costs. They have been the most reliable vehicles we have owned, and we have owned Ford , Dodge, Buick, Toyota, and Honda vehicles. Please do not let Saturn die!
Mr. Henderson,
After your announcement that Pontiac would be no more, and that there weren’t any more Pontiac G8’s coming from Australia, I put my money where my mouth is and purchased a 2009 Pontiac G8 GT (driving to MI from WI to get the color and options I wanted).
I have owned nothing but GM cars for the nearly 30 years I have been driving. The G8 GT represents the best GM vehicle I have ever owned. In just over three weeks of ownership I have 2700 miles on the car – I just can’t stop driving it.
What an indictment of old GM that they had a vehicle so fantastic, and they could not find a way to market or sell it/make it a success.
I know you have also stated that the G8 won’t be rebadged as another manufacturer’s car (i.e. a Chevrolet). Might I ask you to reconsider. Find a way to take Holden’s next-generation VE platform vehicle, call it the new Chevy Impala, build it at Oshawa alongside the Camaro, and keep the people like me happy.
No economical RWD sedans = no more new GM purchases for me (sorry, a starting-at-$37K CTS isn’t in my price range new). I recognize the problems the new CAFE regulations will present, but there is still a several year window of time to sell a ton of these vehicles (including police/taxi fleets who will have fewer choices when Ford discontinues the elderly Crown Vic/Grand Marquis/Town Car platform). I know fleet ain’t great, but I think you’d sell a ton of these to regular folks, too (what’s the fleet penetration of the current long-in-the-tooth Impala?). Build these on the Flex line at Oshawa, with a mix of models like Holden does (V6, V8, lux, sport, et. al.) and you’ll have a winner on your hands. The platform is simply too good to ignore, going forward. To do so would be incredibly foolish.
GM
I have owned several GM cars in my lifetime. Never again. You may have gotten my tax dollars, but I am never going to give you one red cent of my after tax income. My next car? A Ford.
I never thought that I will become a venture capital for a car company. Well, now that I own 60% of the company, let me see if I can shape the company. For the starter, please make sure to take care of the remaining brands. Since you are no longer a volume company, don’t release any product if you are not 100% proud and satisfied with it. When I drive a GM car, I want to project being a driver who has made a smart choice. I don’t particularly follow all of the Consumer Report recommendations, but I like to see GM cars prominently recommended in this magazine. I would like to see all GM executives, designers and developers drive a competitor car. Ideally, each should have at least one GM car and another car from a competitor. This way, you are all exposed to strengths and weaknesses of the choices that people have in the market. This rule of course should not apply to your relatives and children. They all must drive GM cars! Do not make any promise to any worker for things that is out of your control. You do not know what will happen 20 years from now. So, take care of your workers while they work at GM, but don’t take any commitment for the years after they leave the company. That is the responsibility of the government that has taxing authority. You don’t (maybe you will!) By the way, I would like to get my money back with profits. Therefore, please work hard and smart from now on. Thank you.
I dearly hope you read this…..i’m 63 years old and have purchased GM vehiclers all my life….but no more, you’ve lost a long time customer and all his family members for ever……we all had faith in GM and bought your cars & trucks for a lifetime…..also held 1,000’s of shares of common stock of which you just wrote off like it was unimportant to all you golden parachute excutives….well to mad to say much more except I will spread the word on the new GM don’t buy it my friends…..sincerely Mr. Mohr
Thank you for the promise of transparency. It is my sincere hope that you adhere to that promise. Now, a couple of questions/comments/concerns:
Q1- Will the ‘new’ GM be able to resist following the same path that the ‘old’ GM went down regarding (rather ludicrous) measures such as job banks? I totally believe in unions, but I also believe that there should be prudence and logic baked into business (note: business) decisions. Having a cost base that is skewed in a manner that will be a business case study in universities is neither prudent nor logical. I know the new GM will not be saddled by this, but how long will it take before the new GM decides to go down the same path?
Q2- On Ford …it is the only American vehicle manufacturer that has not sued for bankruptcy, and that is simply due to it being wise (or most probably just lucky) to take out a bunch of loans when credit was not an issue. It was a big gambit, and it worked for them. Under normal conditions, that cash would enable them to make it through the crisis, and with the travails of Chrysler and GM even manage to garner a good dollop of market (and revenue) share. However, these are not normal conditions, particularly due to the assistance that GM has received from the Government. I am not complaining (even though I am a Fund Manager, I do not own stock in any of the major car companies) …it is just that it inherently seems unfair to Ford, which by my estimations will probably be facing bankruptcy once the funds run out.
Q3- Looking at the stratification of trucks to cars since the 1970s, GM had a major dip in the numbers of cars made in comparison to trucks (particularly from the 90s forward). I’ve read many comments on how the new GM will be leaner and meaner, but how exactly is this supposed to be crystallized? It is easy to paint a nice neat picture, but another thing entirely to bring that picture to life.
Q4- As mentioned, I am a Fund Manager. My projections months ago showed that there was NO WAY (as in, no way without resorting to fuzzy math) that GM could avoid bankruptcy. Yet, the Government went ahead and gave billions to the firm. Now, if I (without complete access to the financial innards) was able to still come up with metrics that showed it was impossible (at that point) for any financial assistance (short of massive liquidity – more massive than what was provided – supported by a market that was much firmer than was projected to be the case for at least a year under the most optimistic scenario), then why did GM go ahead and get the loans? Would it not have been better to sue for bankruptcy then, and at the very least save the tax payer many billions.
Anyways, those are my only questions. I hope you post them on the blog (although I will not hold my breath) as per your promise of transparency, and I hope you answer them. They are not tough questions (I could have made them much tougher), and I think they are fair and honest questions.
In closing, I hope the best for the company. I’ve driven some of the newer cars from GM, and contrary to the negative talk from some sections of the market, those cars were actually VERY good. I own a German luxury automobile, and I can honestly say that the GM cars I looked at give it a run for its money, and in some areas even surpass it. Thus, the CURRENT problem was never the product (although in the 80s it seems like it was the genesis of many a problem).
I wish you, your workers, and the expanded GM community, the best.
[...] new GM, according to Henderson, will be dedicated “to building on only the very best of our recent progress in fuel [...]
This IS all GM’s fault you know. Mismanagement and too many cycles of poor product over the years has led to this. Honestly this day was bound to come. Sometimes you have to die and be reborn. For GM this was the only way to shed it’s past so that it could even have a shot at a future.
i would have thought the best start for “the New GM” would have been admitting you screwed up the old GM.
Instead it’s more of the same, nothing new here as far as I can see.
Here we go-take Amerca to the cleaners-take taxpayer money-the only ones who get left out are the common stockholders, the people who are paying taxes to give to GM -what a deal. Everyone else will be celebrating with big bonus checks and spending taxpayer money like their is no end-oh, I forgot there is no end to it. Now we will be given the same campaign rhetoric like our politicians telling us how wonderful GM is after they stick their hands in our pockets. GM, do you have anything to say to the American people who lost millions in the investment they made in your company and the support they have given you. Not even-I am sorry or anything. Take your fancy speeches and public relation campaigns and go away. I will not be buying your products, supporting your company or your plans. If America gets smart they will not either. We can only fight with our vote-my vote is go away and dont bother me. I have other options
I like this from the “Leave a Reply” section above:
(If you haven’t left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won’t appear on the entry. Thanks for waiting.)
So, let me get this out of the way…I (as owner) approve this message…at least 60% of it.
Oh, and I’ll never buy a GM product again…new or used. Ford or foreign from now on…
I’m back still boiling over GM’S lack of loyalty to customers,stockholders,etc; just sweep us out the door with the rest of the trash…..I’m sure you could have thrown a few crumbs are way for being loyal to GM for so many years instead of a smack in the face……well reinventors your listening to a new Toyota,Nissan car buyer here, never again GM……MR. MOHR…..
If you want to get people back from Honda and Toyota, first and foremost you are going to have to start advertising your cars the right way. Forget the flashy music and fast paced clips with some guy in the background yelling out “199 a month with no money down”. That’s cheezy. It’s lame, and it reminds everyone who owns a Toyota or Honda right now why they should never step foot in a GM dealer again.
Start advertising the quality and performance of your new product. You should be advertising the hell out of the Camaro V6 with its 29 mpg highway on REGULAR fuel, combined with its 6 speed transmission and 4 wheel independent suspension. Also, you should be advertising the Malibu’s tight, solid structure and high quality interior.
In fact, GM, you need to get out the word that ALL of your new cars have high quality interiors and tight body structures. That there are and will be no more rattles in your cars. That your cars will run for a long time without spending time in the shop.
In other words, combat the notion most people have that Japanese cars are superior in every way.
Don’t give people a reason to think GM is the same old GM. When you advertise on price alone, you do just that.
This new GM is going to be interesting and I hope very different. Better customer service at dealers. Every dealer fully stocked with parts for quick service. More reliable, better engineered cars. Better engineered cars
Better engineered cars.
Catch my drift? Its all about the product now. Nothing else. Product, product, product.
I seem to remember Bob Lutz pounding that fact home shortly after he was hired – and the damn bean counters and innept management ruined that.
To Jim Belanger:
Hi Jim — thanks for your question regarding whether or not the Grand Blanc WTC is considered part of the “New” GM. The Grand Blanc Weld Tool Center was not part of the manufacturing optimization plan announced June 1, which detailed 14 assembly and stamping plants slated for closure or standby capacity, along with three SPO facilities. Grand Blanc WTC is considered part of the New GM.
Connie
To Sheth Jones, Marty Thompson, Kay, Robert Frischer M.D., Adam Meier and others who have posted they will no longer consider GM: we can simply convey our regret. We hope in the future you’ll take another look at GM. Until then, keep talking to us. Tell us how we are doing. We appreciate your openness and perspective. Thanks –Christopher Barger, GM Social Media
To your question, Clint Lowdermilk, the Govt has been clear will not run our business. Important is to be guardians of investment. Not run the company but ensure effective management. Clear intent is to be a short term holder. No reason to believe has impact on day to day ops or gov’ts buying decisions. thanks – Kerry Christopher, GM Public Policy Communications
@J Gavin-
My sincerest regrets re: your decision not to purchase another GM vehicle. I hope, through our actions, your mind will change. As GM and the US Treasury have stated multiple times, we enter this reluctantly. Both parties look forward to a quick sale and return to profitability. The government has also said they will not be involved in our day to day operations. Regardless, I understand your perspective and hope, through our actions, we can change your mind.
My first car was also a Pontiac, a 1996 Grand Am (taupe metallic 2 door – I LOVED IT!) . .. and indeed, OnStar is great and remains the same through this process.
Personally, however, I am grateful for your support over the years.
In the meantime, please keep talking to us. Let us know how we are doing.
Annalisa Bluhm, GM Social Media team
Many of us are unhappy with GM! I have had an order for a new 2010 Equinox 6 cylinder on order for almost a month. I’m still waiting for it to be built. It is suppose to be built on Monday but I will believe it when I see the paperwork. Have my order sit on someones computer or on someones desk for a month is not a way to make a customer happy. They told me because of limitations on dealer orders. But my dealer didn’t order this ….I DID!!! It isn’t their order it is my order. And after it is built (WHENEVER) it will probably be another 6 or 8 weeks before I see the car on my dealers lot (if i am lucky). I SAY BOYCOTT GM!!!!
@Brian J Perks -
Your comments are right on – Most people don’t know about our great products! We need people like you to tell others and engage people!! I’m trying to do it online…@annalisabluhm on twitter. We cannot rely on others to tell our story!!
Annalisa Bluhm – GM Social Media
I worked for GM for close to 34 years and did everything that was asked of me as a salary employee. Now in retirement, I hear it is a possibility they will reduce my pension even after the reduction I got when I started drawing social security. If my pension is taken away or reduced in any way, I will NEVER buy a GM vehicle again and I have been a loyal customer for years. What a shame.
Del:
BMW and MB make SUVs in the US, not cars. The Z3 used to be made in SC but BMW shifted production back to Europe so its US factory could concentrate on gas guzzling SUVs. Trust me, they don’t make cars in the US. MB never made cars here, just ML and GL class SUVs.
“For GM to become truely “open and transparent ” it will need to come clean on the real reason why GM has been going downhill for the last 30-35 years.”
GM execs and dozens of journalists have outlined these issues many times in the past. How much more information do you need? The past is overwith at this point. So many are obsessed with wallowing in the sins of the past. Monday morning quarterbacking is pointless at this point. All that matters is how they go forward.
Michael Shale:
Please don’t bother responding to me unless you are going to carefully read my posts. I never said Americans should exclusively buy GM products, I said that Americans rooting for GM’s demise (like yourself) do not care about the taxpayers getting their money back. GM’s success and ability to make money going forward is going to depend on the overall market reviving. If the market stays below 10M units for the next 3 years GM will be in trouble. And so will Ford and others. If the market rebounds to 13M units or so which most expect within 2 years GM should be able to make money. Its really that simple. Your diatribe shows that like most GM critics you are 100% clueless about the current lineup or the awards they have received over the last few years. You are stuck in the 80s regurgitating tired steretypes. Do some research on GM’s current vehicles before lecturing me about how and why they failed. Their current products are not the cause of this mess. Decisions made in the past regarding debts, labor agreements and expansion of the number of brands coupled with an economic collapse led GM to this state. The current products are the least of their problems.
Let me school you on Toyota quickly. Toyota imports about 45% of the vehicles it sells in North America. Those vehicles come from Japan. While Toyota has a few plants here they primarily focus on US only models like the Tundra, Avalon, Solara and Tacoma. Toyota also makes Camrys and Corollas here but they import big sellers like the Prius, ES350 and Yaris. Toyota has chosen not to invest in making hybrids and small cars in the US and instead chose to build a billion dollar factory for V8 powered pickups. All of the people complaining about GM importing vehicles need to get a grip and note that they import far fewer vehicles than Toyota. Going forward, you can rest assured that Toyota will be importing a higher percentage of its vehicles from Japan because the production of their most efficient models is in Japan. Meanwhile look for their NA models like the Tundra, Sienna, Tacoma, etc. to comprise a smaller and smaller % of their overall sales.
I for one wish you at GM all the best in turning GM around and making the US perhaps once more the shining example of automotive ingenuity. That said, you still have a major perception problem. I was listening to NPR the other day. They- just like every other media outlet, both conservative or liberal- mentioned GM’s problems of late and how they got into trouble by selling large gas-guzzling SUV’s and not building enough fuel efficient, small cars. Its the same thing I hear repeated over and over again, which is that the Big Three ( now perhaps the smaller three) build nothing but giant gas-guzzling vehicles while the “good” Japanese car makers build fuel efficient small cars.
We all know that both GM and Toyota build about the same mix of cars and trucks, all averaging around 20-30MPG and the range is from small cars like the Yaris and Aveo, to medium cars like the Camry and Malibu, to big trucks like the Tundra and Silverado. The bottom line is that Americans still think domestic automakers are the bad guys, building monolithic tanks while the good guys are at Toyota.
Its time to make a splash. Perhaps the Volt will be a step in that direction, but somehow I think there will have to be far more drastic steps. Now is a better time than any for a complete and total re-brand. Think about Mcdonalds. They were the fast food restaurant for small children. There image was of a clown and bright colors as well as an overall almost childish image. Yet they totally rebranded and now are on there way to becoming the top gourmet coffee seller in the US as well as Europe. They did that in the space of a few years. Watch their commercials. They have sophistication and pizazz. Quiet a drastic change.
Bottom line, become the company people want to love. Do it with a new look, personality, and of course- product.
@ Adam Meier –
I emplore you to take a look at the 2010 Cadillac CTS, Cadillac CTS Wagon, 2010 Cadillac SRX, Cadillac CTS Coupe, 2010 Buick LaCrosse, Chevy Camaro and Chevy Malibu. These award winning designs showcase GM’s design renaissance led by Ed Welburn and his team of designers across the globe. IMO, the forthcoming products are some of the best design products in GM’s history (interior and exterior).
Understand not all designs appeal to everyone, but strongly encourage you to take another look at GM.
Annalisa Bluhm – GM Social Media
Abramo:
GM will continue to make the Vette and SUVs in the near future. Obama got what he wanted with the new CAFE rules. They are flawed but the automakers agreed to them so Obama is done with that issue. Since GM has to meet CAFE anyway your prediction that the government will force GM to drop certain products makes no sense. Obama and the ATF don’t care how GM acheives CAFE for 2016, they just want them to comply. Same applies to the rest of the industry.
What you and others fail to realize is that the government simply weighed the cost of action vs inaction and decided to step in. Not acting on GM’s behalf was going to cost the country several hundred thousand jobs and billions of dollars in loss tax revenue and unemployment costs. The chain reaction would have destroyed numerous suppliers which in turn would’ve jeaopardized Ford’s US production. In case you forgot, Ford came to DC last fall to tell Congress that the failure of GM could have brought them down. Factor in Ford’s collapse and the job loss picture would have gotten substantially worse.
I don’t think the government will get all its money back, but it should get a nice return on its investment once the auto market recovers and GM issues stock. GM’s value has nowhere to go but up and the government is buying into the company while its dirt cheap. The point of an investment is to buy low and sell high.
Alex:
GM will still be a volume car company even if they are not the largest. Realistically speaking GM, Ford or Toyota could be the largest automaker in the US once GM emerges from bankruptcy. GM is getting smaller, but that is not the same as becoming a niche automaker. As for your tax money- if its paid back it wont impact your life one way or another. The government is loaning GM money that the government itself is borrowing. Whatever GM pays back will just help the US government pay back its own debts to China and Japan. Taxpayers’ lives will not change one way or another. Don’t expect a rebate if GM pays back the US government. Its interesting how so many people are incredulous over GM getting this money as if we ever have a direct say over how tax revenue or borrowed money is spent. I’d rather see my tax money go towards preserving industrial jobs and production that unecessary wars.
Christopher Barger:
I was not one of the folks saying I wouldn’t buy a GM product! Please don’t put me in that category. I am only concerned with the competence of the vehicle and the price- nothing more. Taxpayer money does not affect my decision at all.
JoeD:
What world are you living in exactly? Almost every Toyota or Honda ad I see is pushing a low lease rate or rebates? GM’s most recent ads have been simple and mention features as well as incentives. All automakers are advertising incentives for OBVIOUS reasons these days. This applies to ALL of the Asian imports. Hyundai is one of the few automakers who is running ads that don’t mention specific lease terms or rebates. Aside from the Venza, Toyota isn’t running any ads that focus on product as opposed to deals. Stop holding GM to a different standard.
I do agree that GM’s ads need to really take on the competiton head on and make it clear that they can stand against ANY of the Japanese products. They have started down that path, but it needs to continue. The Chevy ads with Howie Long are right on target. Attack the myths and set the record straight.
Hi
I own a Chevrolet Optra Magnum. I chose this over a number of other cars. I am very satisfied. It has a fantastic 2.0L CRDI deisel engine.
With regard to the bancruptcy, i would say i am very dissapointed. Seeing your upcoming products, the Cruze, Beat, CTS-V, i sencerely felt GM was doing well.
I wish you guys sucess in your restructuring.
Last, i wish to reiterate that my next car will definitely be a GM car, because i believe in GM
I’m wondering at this point if GM can survive at all. The media attacks it daily, while treating foreign car companies with kid gloves. Where were the front page headlines about the recall on Toyota Tacoma frames due to structural rust-out ? If a GM has a loose license plate screw, its front page news. Unless you park your Chevy truck in a salt marsh every night, you’ll NEVER rust out the frame !
With the media constantly attacking, the public won’t want to buy a GM product no matter what it is. The majority of the public seems to feel its cooler to drive an import, so we as a country cut our own throats buying imports. People like to throw the term Global Economy around a lot, but the fact is until some invents the transporter from Star Trek we don’t live globally, we live locally. If the jobs are in other countries, its unlikely you’ll be commuting there every day, so we need good paying jobs here, in the US.
I really just don’t know how GM can overcome the media and import bias at this point anymore.
Are the U.S. taxpayer payin for gm to build american cars for americans in america or MEXICO? why are the mexican plants not affected? the economy need those jobs even if they are nonunion low payin jobs. Who will buy a new car if there are no jobs to drive to. The U.S. owns 60percent of GM keep the jobs here.
Sheth:
I don’t particularly have a problem with GM or Toyota or any other company importing outside of the U.S. As I stated earlier it only makes sense to import when they can to provide the lowest price possible to the customer and keep profitable. It is you who are stuck in the 80’s way of thinking by thinking that we should never import and only export. It’s not possible. It’s economics. GM sells cars in China. Manufacturing plants will follow but will they produce all their cars in the U.S. and then export them to China? No, it doesn’t make economic sense.
GM failed, if not the products then why the loss in market share? You can’t blame that wholly on marketing or their business decisions. They didn’t fail with a 50% market share. If they had, we could’ve blamed labor negotiations, or improper handling of debt, or even greedy execs.
If the market stays under 10M like you suggested, you’re right that other companies, GM included, will be in trouble. But will those other companies be as likely to fail as GM (for a second time) would in such a scenario? Markets will always bounce back, always, the real estate market, the financial market, everything bounces back eventually, but what if it takes longer than it should? Should we bail GM or any other failing company until it’s profitable or allow stronger companies to survive and adapt?
Sheth – sorry for the mis-inclusion… I was trying to respond last night with blurry eyes and after working 31 hrs since Sunday morning. I was tired and rushed and made a mistake. I’m sorry!
Let’s face it. As long as I know that part of the cost of a GM car goes to subsidize an over-paid autoworker, I will never be able to take seriously the claim that GM is trying to be ‘leaner’ and more ‘cost-competetive’ (and I will never be able to buy one of their cars).
Too many other car companies are successfully doing what GM finds impossible, even while dealing with additional tarriff and trade issues that come along with being a foreign company.
Mr. Henderson told us in his debate today on CNBC.com that he thinks that last year we saw a permanent shift in consumers sensitivity to fuel consumption which will lead to a demand for smaller, more efficient cars. He goes on to cite gas prices, but ignores the huge amount of uncertainty in this realm (and fails to grasp the basic economic principles which drive industry).
Mr. Henderson does a wonderful job of painting the kind of fantasy future Obama wishes to see, but does nothing to allay a consumer’s hesitations beyond nurturing some warm and fuzzy feelings. GM is going to ‘CHANGE’…where have I heard that before!?
In order for GM to restore customer confidence, they have to make ‘amends’ to the customers they have taken advantage of over the years. First, they need to apologize, and not some sappy insincere apology, but a truly heart felt apology. Then, they need to acknowledge/admit and ‘embrace’ the fact that they did indeed take advantage of thousands of customers (poor quality, poor service, attrocious dealers, etc). Lastly, they need to ‘make it right’ with those customers. I am no multi-millionaire, just a hard working, single parent struggling with the best of us and I truly resent being taken advantage of for falling for the ‘buy american’ fantasy. I was misled into thinking that GM manufactured quality vehicles, when I was nothing more than free R & D. Feel like I deserve a salary…and that ain’t gonna happen. Had to give that to Mr. Rick cause he did such a mighty fine job of running what was left of GM into the ground. Wish I could get a few million for each mistake I made! And, you know, GM, I didn’t receive any bailout when you ripped me off for thousands, now I am a shareholder (of nothing):) How funny is that, I own 60% of NOTHING
… and paid thousands for it…now, that’s the American Dream.
Chapter 1 ???
1: 1 In the beginning God created the heaven and the earth.
GM’s chapter should be more about how you were allowed to survive with our tax payer money… If it were not for OBAMANOMICS you should have been done already. As a small buisness owner i find it amazing that we as a country are wasting so much money on a company that refused to change 20 years ago when it should have.
This really goes to show you why the country should have done away w/ith unions years ago. They server no purpose in life.
HogISH
PS… Fritz your board members need term limits almost as bad as our congress and senators…
“…after working 31 hrs since Sunday morning.”
Keep that nose to the grindstone Barger, you’re working on our dime now.
Mike Shale:
You continue to overcomplicate the situation. The government told GM to come up with a plan that would allow them to be profitable with sales being in the 10M range and GM having 17% to 18% share. That is exactly what Henderson and his people did and that’s why the government agreed to loan the $30B. Its really a very simple excercise. Based on GM’s cost structure at the end of Chapter 11 they will be able to break even when the market is at a range of 10M per year. If it goes up to 13M or more as expected GM should make LOTS of money. The government does not plan to give GM any more money as long as the recession fades as expected. Most expect sales to rebound in the last quarter of 2009. If that happens GM will be in a good position assuming Americans are smart enough to consider their products. So far it seems like people are not abandoning GM. They had better may results than Toyota, Honda and Nissan in May 2009.
“GM failed, if not the products then why the loss in market share? You can’t blame that wholly on marketing or their business decisions. ”
Competition. I get sick of people talking about GM having 50% share in the 1950s. They only faced two serious competitors back then so maintaining 50% share wasn’t that hard. A lot has changed over the past 50 years and currently GM faces 7 major foreign automakers in addition to Ford and Chrysler. That is a MAJOR reason for GM’s lack of share. Apple invented the personal computer but currently has about 10% marketshare so loss of marketshare isn’t always related to making a poor product. The products are a part of the equation but many of GM’s competitive products didn’t sell well because many Americans wouldn’t consider a GM product regardless of merit. Are you really shocked that GM’s share has plummeted over the past 50 years as foreign automakers saturated the US market with new choices? Did you think their share was going up? VW only has about 20% share in Europe for the same reasons GM has 20% share in the US- competition.
Steven:
GM, Chrysler and Ford now have labor costs that are about equal to the Japanese transplants. Ford hasn’t gotten the same concessions as GM but they did get some in March that will save them a large sum of money. Who exactly is overpaid? Are you talking about Toyota workers or UAW workers? They make about the same amount.
companies have waste from top to bottom…. but:
Christopher Barger, GM Social Media
when you think you are so big that you need someone in “Socail Media” you are really no where close to getting things right.
HogISH
Hoglsh:
What is with people blaming Obama for this bailout? Bailing out companies transcends political affiliation. Does anyone not remember the first proposed bailout in October? Bear Stearns? Fannie Mae/ Freddie Mac? Those are all just in 2008 pre-Obama.
I voted Obama. But I’d be the first to say that this bailout is garbage if I could.
This is what happens when you sell your soul the Devil. In this case the Devil is the Federal Gov’t and the soul is the self-directed control of General Motors.
In a phrase: planned obsolescense. The loyal GM customer has been beaten down, abused, called ignorant, and misguided, often by the GM leadership.
Ford and Dodge have 60% of the heavy duty pickup market, yet GM has over 50% of the light pickup market. Why? Products. GM has an outdated IFS design on the 4×4 HD trucks and no manual transmission. At last contact, GM advised that there were no plans to change the design.
I didn’t leave GM, GM left me.
Petra said: “First, they need to apologize, and not some sappy insincere apology, but a truly heart felt apology. Then, they need to acknowledge/admit and ‘embrace’ the fact that they did indeed take advantage of thousands of customers (poor quality, poor service, atrocious dealers, etc).”
Petra,
That is one of the best ideas I’ve heard so far ~ a public apologizing from GM for screwing things up so badly the last three decades. (And like you said, it should be heartfelt.)
I especially would like an apology for the Big Three you mentioned: 1. Poor quality, 2. Poor service, and 3. Atrocious dealers taking advantage of customers. The media now wants us to feel sorry for the dealers that are being forced to shut down, but a big part of GM’s problem has been the low standards to which they have held their dealer network, and the inability to close down poor dealers because of state franchising laws.
The best step GM could take now is to find someone like Bob Lutz who could do for the dealer network what Lutz did for product development. GM needs someone to take charge of the dealer network who can kick ass, take names, and close down the sub par dealers who have tarnished the entire GM image.
I didn’t read thru all of the previous comments, but…
… whose money was used to produce the “reinvention” ad?
And if I had money to spend on an ad, I think I’d reserve it for, ya know, selling my product, not selling myself.
You’re right competition gives consumers a choice. New competitors enter the market and sales are spread out among the competing manufacturers. But it doesn’t explain the rate at which the other manufacturer’s have taken it from GM. There has to be a threshold, a plateauing, of the sales. Otherwise, a steady decline in sales points to something else. Why were analysts in the 2000’s foreseeing Toyota as being at the top of U.S. market share? You don’t lose that much market share just because someone offers something new.
The computer industry and auto industry are not to be compared. Apple WANTS to have a lower market share. It allows them to maintain a luxury-centric image. Just like you wouldn’t say Mercedes and Honda are going for the consumers.
June 1st, 2009 at 12:15 pm
oldguy1
Does any body know were the V6 engine in the 2010 Equinox is being manufactured? I have one on order. I have called and emailed to GM and they will not give the manufacturing country for the engine. They say it is protected information and still they put it on the window sticker. We are thinking of looking for a differant product if we can not get base line information from GM. We want to buy GM and own two GM products now. Why is it so hard to tell a customer about the product they have ordered when they publish the information on the window stricker.
AMEN BROTHER!! The equinox is actually built in Canada. I order my new 2010 equinox 6 cylinder on the 12th of September and it has been almost a month and they still haven’t built the car. They say next week but that is probably a lie. And even if they do build it then it will probably another 8 weeks before I will see it (IF I AM LUCKY). We as customers need to send GM a message and buy not from GM but from other companies. Maybe then they will listen to us and get the message.
Well, I went to trade-in my Pontiac G6 and the Cadillac dealer laughed in my face. I was told that my car was now worth 10K less than it was at the beginning of the year and good luck getting anything for it. Where is the bailout for the consumers left with phased out brands and cars? Who is going to wipe out my debt so I can start fresh?
“In a phrase: planned obsolescense. The loyal GM customer has been beaten down, abused, called ignorant, and misguided, often by the GM leadership. ”
GM still sells more vehicles that Ford, Toyota, Nissan and Honda. While they have alienated many people over the years they still find MORE customers than Toyota every month of every year. Think about that.
Michael:
Its obvious that you are underestimating the foreign competition just as GM has been accused of doing. Toyota and Honda had well executed expansion plans in the US. When upstarts plan to aggressively take share they are aiming at the firms that have the dominant share. Over the past 30 years Toyota and Honda have attacked every segment of the market and made inroads across the board. Better product would have helped GM (and Ford) stem the tide to some degree but the days of ANY player having 40% share are LONG gone. Its time to move on. Toyota is supposedly the perfect automaker and its worshipped by GM bashers, media types and politicians and yet after 50 years in the US market Toyota has managed 16% of the market. That is a long way from GM’s 51% in the 1950s or 1960s. Thats a long way from the share GM has in the early 1990s. Why can’t Toyota get any more than 16%? They peaked last year and their share is currently falling after hitting that 16% figure. The competition in the US market is too fierce for any player to be dominant. Going forward its possible that we may never see ONE automaker eclipse 20% share.
Apple is satisfied with a lower share now, but for years they were fighting to get their share up and establish credibility in the minds of PC owners. They certainly didn’t aim for low share with they debuted their first home computers. They made a few mistakes and allowed Microsoft to establish the default operating system for computers and got relegated to the sidelines. Their share has nothing to do with poor quality product. To the contrary, their product has always been lauded as innovative and class leading. At this point in time there are so many computer brands out there that no one company has a dominant position in the market. Just like the auto industry.
Again Sheth you don’t lose 30% of your share in that short of time. Competition will reduce your sales, yes. But just because there’s a new choice doesn’t mean that your sales will dramatically fall. Competition doesn’t mean that you’ll be predicted to be overtaken by the new guy who comes into your home turf. If that were the case than in any industry all it takes is an entrance into the market to be overthrown? Competition is fierce and a company already dominating a market has the upperhand. How can you explain anaylsts predicting Toyota to take the crown of being the largest automaker in the U.S.? They wouldn’t be able to do that just by being new…or having only two brands in the U.S.
Of course, GM had better gross sales than all the other companies– they’re larger. Of course GM sold more they had a larger market share! They had eight brands under their belt. Toyota or Honda or Ford will have higher market share than 20% and it’ll be much easier now that GM is gone. Why couldn’t Toyota have more than 16%? Is that even a question? You don’t gain 4% overnight and they were slowly taking that market share away from GM.
No, Apple was trying to have more market share to stay in business. They couldn’t and can’t take Microsoft down because they’re too well-established (but maybe that’s not the case as seen with GM’s infamous history now). Had they wanted to take down Microsoft they would have allowed computer manufacturers build Mac-Clones. But if you remember Apple is the sole provider of computers that can run their OS. There are no other companies licensed to produce Mac computers. In the past their computers weren’t marketed to everyday citizens. They weren’t in the business for games or spreadsheets. They were mainly marketed towards graphic designers, music producers, and video editing.
Their products are lauded as innovative and class leading, and like I said they want to maintain an elitist luxury based image which they have succeeded. In fact their 20th anniversary Mac came with a Man in a tuxedo delivering to the purchaser at their doorstep. Their computers are marked up to double or triple the cost competing Microsoft based products. But they aren’t producing more computers and bringing the cost down because they aren’t going for larger volume. Particularly now that the two competing OSs are compatible. Also, they’re meteoric rise in the 2000’s is attributed to their ipods NOT their computers.
But again like I said before…This is off-topic.
Great idea sell our defense vehicles to China
Am I the only one who finds this form of communication, having the head of a major corporation answer questions, some real and interesting and some absolutely stupid, totally insane? The media has taken Twitter to heights to which it should only aspire but never reach. People get to sign on without revealing their true identity, using stage names and pseudonyms without any possibility of being identified and we are taking them seriously.
If you don’t have the courage to sign your real name, your question should be relegated to the trash bin.
I think GM should reconsider how it is communicating with the public. I know the internet is a great tool but Twitter? GM wants to be on the cutting edge but this is another fade that will make the founders rich and hopefully will fade shortly before some other form of internet communication takes over.
It is bad enough that GM has been forced to file bankruptcy but to lower itself to answer all the wacko’s out there is another thing. Fritz Henderson and his Executive Team must to have a pretty full plate but to have them answer questions daily is nuts. I would rather they spend their time on something a little more productive, like making GM right again and getting the country back to work again.
I am sure that I will get some politically correct answer back from the GM Team stating that they want open and transparent communication with their customers, blah, blah, blah.
Micheal:
You are poorly informed and that is one reason why you are making little sense. First of all, it took GM 50 YEARS to lose 30% of marketshare. You keep talking about Toyota, but Honda, Hyundai, Nissan and others also expanded in the US during that 50 year span of time. Where do you get off suggesting that GM lost marketshare quickly? Secondly, Toyota will NOT be passing GM anytime soon. Toyota has performed the worst out of all the imports since the market turned south and they are currently LOSING marketshare while Ford and Hyundai are gaining share. Toyota will never get to 20% as long as Honda, Hyundai, Ford and GM are still competing in the US market. It will not happen. All of the predictions about Toyota passing GM were predicated on gas prices remaining above $4 a gallon because in that environment Toyota’s heavier emphasis on small cars and hybrids gave them an advantage. Once gas prices subsided, Toyota began falling back into 2nd place by a large margin. No one is talking about Toyota being #1 in the US market anymore- well no one except you of course.
You also might want to get your facts straight about how many brands Toyota has in the US- they have three, not two. By next year GM will have ONE more brand than Toyota. Even now, GM essentially has 5 major brands because BPG products are sold under the same dealers and often share advertising. Saab and Hummer have always been low volume, niche brands. I’ve often heard the excuse about Toyota “only” having three brands. The number of brands is irrelevant because at th end of the day each corporation tallies its sales as if they are one brand. Its GM vs Toyota vs Ford, etc. You also ignore that Toyota had huge advantages when it decided to set up shop in the US to expand marketshare. Newer factories, huge state subsidies, low overhead, no legacy costs, no unions, etc. Toyota (and Honda) were perfectly positioned to attack Detroit with their low cost, modern factories and that’s exactly what they did. In addition, the fact that they produced cars here allowed them to remove the stigma of being “foreign” and establish themselves as “American” automakers. They had plenty of advantages and they used them. One of their largest advantages has always been that they don’t have to battle Detroit or Europe based automakers on their home turf since the Japanese market is effectively closed to foreign competition. With that market safe they could pour resources into American production and that’s what they did. Don’t be so naive. When you have 10 major players in ANY market you are not going to have one player with 30% or 40% share. It doesn’t happen in Europe and it won’t be happening here in the US.
You also seem to be a little confused by the bankruptcy filing. You say Toyota’s share will increase once GM “goes away”. They are not going away so I don’t follow your logic. If anything this entire process is going to make GM more dangerous to Toyota. I read an article about the reactions of the Japanese to the US auto crisis and they are afraid that successful restructuring will leave Detroit better equipped to compete from a cost standpoint. As of now, GM and Chrysler will be able to operate with the same labor costs in the US as Toyota and Honda. That means more money for product development, advertising and more potential profits. Not good for Toyota.
Here is your problem. Your bankruptcy plan is to continue making cars that are antiquated and burn fossil fuels. You are willing to cut off your distribution chain and continue to make a product that you know is utilizing an energy source that is primarily available from foreign sources that will continue to make your customers / consumers reliant on the whim of foreign entities. You have hydrogen cell technology, you have batteries, you have solar, you have biofuel. You have had a half century to develop a more efficient engine. You had the chance to build the electric car and your board of directors put the kabash on it. Now, you come to us, after you have overpaid yourself to build vehicles that are planned to be bsolescent and beg us for one hundred billion dollars to continue to build obsolescent vehicles.
Here is what you are going to do. QUIT BUILDING CARS AND TRUCKS THAT USE GAS ENGINES. JUST STOP. You have my 100 billion dollars. Use it for something that we need, not your outrageous salary. You took my money, now you have to listen to what I am telling you to do.
Re-tool all your plants to build alternative fuel vehicles. DO NOT CLOSE the dealerships. Let them stay open and sell off the rest of the crap you already built that no one wants or needs. What you are going to do is stay in bankruptcy and get yourself out of all the idiotic contracts you accepted, like overpaying the UAW, and the hundreds of other bads deals you did. You will then take the hundred billion dollars you got from the government and distribute that to your dealers to re-tool and train them to support and supply consumers with the necessary energy, cells, batteries, and alternative fuels to keep their new products running. If your employees do not have the skills or equipment to do what I am telling you to do, and SINCE THEY ARE NOT BUILDING CARS, and collecting a pay check, then use all their free time to retrain them.
While the other car companies continue to make antiquated products, you will be using my hundred billion dollars to change the way Americans drive. You will continue to be the largest auto manufacturer, save millions of jobs, and produce a product that is meant for the future.
Look, the reality is this. You took my hundred billion dollars. You had the opportunity to run the company your way, and you screwed it up, royally. Now, you took my money, you have to run the company my way.
Barry:
I can honestly say nothing you proposed is logical or feasible. On top of that, GM has gotten about $20B so far, not $100B. Americans generally do not want electric vehicles right now and the ICE will be around for MANY years to come. You seem to be suggesting that electric cars would have spared GM. Actually, they would have been bankrupt long ago if they had poured their resources into impractical, small volume, unpopular electric cars at a time when gas was cheap.
If GM were to run the company “your way” taxpayers most certainly would not get a dime of their money back. Let’s leave the important decisions to people who have some idea of what it takes to sell cars. You don’t seem to have a handle on that just yet.
Barry B. Eskanos,
The far left ran helped to run up America’s taxes, saddled the country with excessive regulations, and wrecked America’s balance sheets from top to botttom.
If you want your tax money, here’s what you’ll have to do: BUY AN AMERICAN CAR.
Hawkshaw,
I really don’t want Bob Lutz to touch anything with GM. Some of his idioic ideas in the late 1980’s onward launched the downward spiral of Pontiac. Some examples of this were :
1. The killing of the Pontiac Fiero when it was still very popular and its performance was beginning to threaten the Corvette (the real reason it was killed).
2. Doing away with the familiar Pontiac names like Bonneville, Grand Prix, Grand AM, and substituting the stupid alpha-numeric names that were tried in the 80’s and failed dismally.
3. Not reviving the Firebird at the same time the new Camaro was instituted. This tells me GM planned to kill Pontiac all along.
I agree the dealer network should be changed, but it should be made by a man of true vision, not one who helped a company fail. I personally don’ t know who that person should be, but it is a shame that John DeLorean has passed on. He was a true visionary back in the day when he worked for GM.
Fritz, I thought you guys were going to “listen”. The Zeta platform by Holden is world class, something that us North Amercicans have been craving for. My Soltice GXP will run the shorts off alot of Corvette’s that you can afford and Zeta is too good for just the Camaro. We all can’t afford cars like the CTS, and yet Zeta Holdens, Aussy best selling car, and the Chevy’s/ Buicks/ Vauxhalls sold world wide aren’t going to be available here after the G8. It’s no wonder my stock in the old GM is now worthless.
I have a problem that having endured the fuel crisis in 1974 and the sagging sales of late, GM has failed to see what was so obvious to everyone here in my area, that the auto that have been produced of late are not innovative in either design or engineering. It seems to show a mis-conception that consumers will buy a car because it is either american or GM irrespective of quality or design. I do not wish to see GM fail, I just can’t fathom its failure to adapt to the obvious. It has earned very little sympathy from me and my cohorts. I wish that GM produced a car that I can be proud of. One that would hold its value, be fuel efficient, be well designed and built to perform and endure. Be safe, imaginative, sporty, and visually appealling. I have seen glimpses of these trends but no commitment to all of them as Honda, Volkswagen and Toyota have. Sorry, but driving a Non-truck GM car is, well, embarrassing.
i for one plan on buying a new camaro as soon as i can!
it like many gm cars is well built and great looking.
i worked for gm for 17 years and now im a harley davidson
dealer mechanic.
i beleave in this country and products made here.
i just cant beleave the people that buy non us made cars and motorcycles…….to many good men and woman have died for this country and any one who buys the junk that is imported here daily
does a dishonor to them and the men and woman fighting today………
I ordered a new camaro, it will take 4 to 5 months to get it, yet i can order a new ford mustang
and it will take only 6 weeks, I would like my new camaro in the same time, 6 weeks, its already been a month and no order verification, sept – oct is what they are telling me, would it not behove
you to build it in a reasonable time, especially since you have idled so many plants, what is gm
problem.
well larry i have seen a number of new camaros at local dealerships so maybe they are not building special orders yet?
in 1967 when my father bought the first camaro i ever saw it was becuse he couldnt get a mustang(he was and is a devoted ford man)so he bought a 67 ss 350 and when he sold it it was worth alot more than most any mustang of the same vintage.so perhaps a little wait will be worth your while.?i for one cant wait to order one i have to waite till about 2011 or 2012…….a z28 by then …i hope!
When will this company open its eyes and see the way things are in this country? We need to rethink the way we do business. GM needs to stop buying overseas parts and accessories, and start making them here in the US. This will help to restart our ecomony and create jobs that are badly needed here. The cost will offset in the long run and will make GM stronger and help the country. We need to think US and GM as one, and help both. Yes, this will make the overseas companys upset and they will have problems, but we can not worry about them until we are in a better situation and more control of our problems.We do need to think globle market, but not now. Now is the time for all good men to come to the aid of there country. Think U.S.A.!
Remember when the heartbeat of America was Chevlolet, well guess what. The new Camaro which are selling like hot cakes could use a companion with a new Zeta Impala. There are alot of us boombers that would like the Impala to reborn as a Zeta.