Webchat: Fritz Henderson Answers Your Questions
Please join General Motors President and CEO Fritz Henderson right here on FastLane today (Thursday, June 4) at 3:00 p.m. Eastern Time for a one-hour live chat to address questions about GM’s court filing and the vision for the New GM. He will take as many questions as he can. Looking forward to hearing from you. - Christopher Barger, Director Social Media
(Editor’s Note: During the chat, Fritz stated that Total Confidence would run through June. This was inaccurate; Total Confidence ended on June 1. Thank you for understanding.)
84 Comments
Leave a Reply
(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.)
I wish you well. I think GM’s survival is crucial to the future of the country. I’m one of those folks who actually likes and respects the UAW and GM’s workers. What’s more, unlike most people I know, I actually think you’ve got a shot. Maybe I’m naive.
Having said all that, I’d like to comment on what may be a small matter: your advertising. I find it really, really alienating. As I said, I’m a GM well-wisher, but when I saw those ads about “what America needs is a comeback — put on your rally caps,” I found myself thinking: “Hey, speak for yourself! You dug your own hole!” Today, I saw your Chevy Malibu commercial touting the car as a cure for “Importitis,” and implying that up until now we were all too dumb to realize that American cars could be any good, but now the Malibu would instantly cure us of all that. I thought to myself: “If they think it was some kind of psychological or physical illness that made us buy all those foreign cars, they’ll never fix the problem.”
So often, I think car advertising is made for dealers and car executives, not consumers. And when it comes to this, GM is the worst offender. I realize the marketing challenge you face is enormous, maybe even insurmountable. But much of your current advertising is only making matters worse than they already are.
My question for tomorrow’s webchat:
Mr. Henderson,
Please tell us what specific steps you’ve taken to change the decades-old, imbued corporate culture at GM HQ that led to this disaster? It only took you 30 years to get into this mess, and now suddenly you say you’ve turned over a new leaf of open communication, transparency, and listening to the customer.
How are you going to get the old heads at GM to go along with that progressive program? It must be quite a shock to their systems and sensibilities.
Mr Henderson,
For the record: Have you ever driven a Volkswagen TDI? Have you ever driven any of the many excellent small European cars with turbo-charged diesels ~ all with superb fuel mileage that already exceeds the new CAFE standards you will have to meet?
How often do you drive any of your competitor’s cars to get a feel for what is possible and what you are up against?
And finally: Have you ever walked into a GM dealership incognito to see how they treat you? Do you have any idea of how GM dealers treat average, Joe Sixpack customers?
Why do options always have to come in “groups” or “packages” when I order a GM car?
Why do I have to order an expensive group that bundles together several things I have no desire or need for in order to get the one thing I really want?
You could really help yourself if you invented a new model for ordering cars. Let us do it over the Internet and let us select only the options we want.
Fritz,
I’m a buy and hold sort of guy. I tend to buy a GM vehicle about every five years and own two, so I’m expecting ten years of service. I recognize that the Federal government is backstopping warranties, but that’s only five years. I had a minor deer/car accident last year, and my body guy told me that GM had been increasing parts costs more than inflation and other manufacturers,and every quarter. I’m due to replace my ‘99 Blazer. Until now GM kept an accessible parts inventory for twelve years-less than some, but adequate. If I buy a GM vehicle, will parts continue to be available for 10-12 years, and will the cost of those parts reflect inflation or something more? I was out this AM looking at a Vue. How will parts availability be inpacted by the Opel sale?
I applaud your openness and desire to hold these chat sessions!! I wish I could participate tomorrow.
I agree that much of the American public has been conned by the Import manufactures into thinking that their cars are better and have lower cost of ownership than those from GM. The Malibu is a great case in point.
I think you need to DRIVE this to the American public. My proposal do a real world 100,000 mile test of the Malibu against the Camry and Accord. Teams of 6 drivers to rack up 1,500-2,500 miles per week crisscrossing the country showing the customer which car offers the true value. All recommended maintenance to be performed by their respective dealers. Mon-Thur drive. Fri morn team members could appear on local TV stations Fri eve-Sun display the vehicles at local malls, fairs, and other events with the respective receipts for Fuel, Maintenance, Repairs and cost of insurance. I am confident that the Malibu’s better MPG, lower maintenance cost and fewer repairs will prove it is the better value, hands down.
3 to 6 teams with cars of varying levels of comparable content. 1 or 2 base models, 1 or 2 top of the line, and 1 or 2 middle models. Along the way the the team members would Twitter, Blog and post pictures of their adventures on Facebook. as well as the costs. The team members could be members of the general public that win by entering online or at a local dealership, local TV and newspaper reporters, or members of the automotive press, doing a 1 or 2 week stint, or employees of a 3rd party company in it for a long haul.
GM America’s car company, now more than ever!!
I’m not trying to tell you how to run your business, but here are a few ideas to distinguish your vehicles from the competition. None of your competition, including Honda and Toyota, are perfect in every way, they’re one redesign away from being passed up. For example, JD Power says Jaguar is more reliable than Lexus. Who’d of figured? Here are opportunities I think you can use to beat the competition, especially if you aggressively advertise these advantages with creative advertising. A big weakness in GM’s previous strategy was the marketing.
- Every new GM vehicle design and major redesign from this day forward should get 5-stars in every IIHS test, including the new roof crush test. No exceptions. People would respond to ads of the crash victims who lived only because they were in a 5-star rated GM vehicle.
- Use the lessons learned at Buick about building reliable cars on the other makes. Why aren’t there any TV ads pointing out that Buick has the highest reliability of any car line?
- While you’re trying to improve reliability to at least match Ford, extend bumper-to-bumper warranties to 5 year, 60,000 miles and powertrain to 10 year, 100,000 miles. People leasing or buying new cars don’t want to pay even more for major repairs and they shouldn’t have to. A 3 year/ 36,000 mile warranty doesn’t reassure most new car buyers who are planning to keep the car at least 5 years.
- People still want vehicles that have lots of room, but now they want them to get 30-40mpg on the highway. Put a US-legal diesel engine in the Cruze, Malibu, Tahoe, Camaro and Cadillac CTS for starters. Look into joint development efforts with a company like Peugeot-Citroen to build diesel-hybrid engines. Diesel is the quickest and cheapest path to fuel efficiency for larger vehicles.
- It’s not the company coming in first place in sales that wins. It’s the one making money and keeping customers satisfied.
What about GM EV1 and GM Highwire electric super car? Why MG is kiling tehnology which can make GM NO 1 car maker in the world??!!!! If GM stoped EV 1 project for Exon Mobile why big drama about goverment financial support . GM is stuffing fuel industry pockets this way. This means fuel industry is responsible for GM problems and to keep gas sucker maker runing fuel industry have to pay its price. Other way start making electric cars and stop being hypokrits about enviroment when VW have super diesel ” Blue Moution” with 72MPG in Europe. GM can and have potential to kill foreign competition in USA and world wide. When GM stop covering up the best technology known to the auto industry?
I too would like GM to address turbo diesel engines in small and midsized vehicles.
Locomotives, designed by GM, have been using diesel-electric propulsion for 50 years, it is time that GM put some funding behind diesel hybrids. At highway speeds, with a CVT, a diesel can provide a tremendous gain in fuel economy. Around town, the diesel engine is most efficient at a steady state, low RPM operation, works perfectly to charge batteries.
Why not certify the 250hp LMM and the 6L80E for use in the HD trucks as a cheaper and more fuel efficient option to the high-output LMM? Sure I like the mega torque LMM Duramax, but if the 250hp version will trigger burn-off less frequently, I’ll take the pre-DPF 18+mpg over drag racing a Mustang.
I could go on, but I grow tired of telling GM what I am looking for because GM clearly doesn’t care what the public wants.
Mr. Henderson:
I have always bought GM cars, and they have been very nice and reliable cars, I’m concerned about all this matter, one of the cars I own is a 2004 Impala SS indy 500, am I going to keep finding spare parts for my car, I don’t want to sell it, and I don’t want to buy cheaper aftermarket parts.
Why not leave the GM salaried retiree’s with the old GM? Fully fund the pension, You could save money for the new GM and the salaried retiree’s would be covered by the PBGC and the IRS will give us at 80% tax credit on health care. Sounds like a win win to me….That’s 122000 people out of your hair….the retiree’s would know where they stand and not be on the edge of there seat wondering what they will lose next year or month.
The company has done a great job of keeping us informed on the restructuring process through this web site. Many questions are being answered about our progress in becoming a “New GM”. Please consider, however, that there is a huge void for employees now working for the “old GM”. How is Mr. Koch going to proceed and what can we expect in the future? Could you add a button to link to information that is specific to those aspects of the reorganization?
Is this true ?
If so GM again needs to answer why they themselves question their products and designs and have pride in the American car history they have made.
Finally the Corvette is getting some recognition in Washington
Thanks to Rep. John Shimkus (R-Ill.) and 55 stalwart colleagues
Corvette resolution (H.Res.970)
In the House of Representatives, U. S., Whereas the 30th of June would be an appropriate day to designate as `National Corvette Day’: Now, therefore, be it
Resolved, That the United States House of Representatives supports the designation of a `National Corvette Day’ to honor the Chevrolet Corvette.”
Whereas the Chevrolet Corvette is America’s first sports car;
Whereas the first production Corvette rolled off a Flint, Michigan, assembly line on June 30, 1953;
Whereas the Corvette is now manufactured in Bowling Green, Kentucky;
Whereas the Corvette is the most widely respected production sports car in United States history;
Whereas the Corvette is truly a symbol of American pride.
Why are dealerships so huge and stocked with so many vehicles? If you want to reinvent the company do a build to order system. If I want a certain car and want better brakes I shouldn’t have to get a sunroof and premium sound system. I say have two display versions of the vehicle on the dealer lot. One would be a basic model and the other totally optioned out. They allow buyers to start with the basic model and then add whatever options they want without having to add unnecessary items.
For example, I own a 2004 Sierra crewcab shourtbed Quadrasteer truck. When you introduced the quadrasteer system it was only offered on the Denali which means you had to basically get every option just to have quadrasteer. It would have made a ton of sense if you could have built the truck you wanted and then just add quadrasteer. Gm didn’t even try it and tacked on all the other options to try and cover the cost of the system. Do you know how many systems you could have sold if it could have been ordered on any truck. Imagine how well a standard cab shortbed truck would have turned or how many Crewcab longbed diesel’s would have sold.
So to sum it up, Small dealerships with 2 of each vehicle and build to order so customers could pick whatever options they want. Also, bring back quadrasteer so I can buy a new truck, I want the 6 speed trans.
Keith
Mr. Henderson,
We would like to know when the public will be notified as to which dealerships are closing and which are going to remain open. We feel some customers are taking a wait and see approach with regards to the purchase of a new GM product as they would like to be certain that their dealer will remain in business.
Thank you,
1st State Chevrolet, Georgetown, DE
Why do you claim openness but not disclose why certain dealers were closed?
Keith asked: “Why are dealerships so huge and stocked with so many vehicles? If you want to reinvent the company do a build to order system. If I want a certain car and want better brakes I shouldn’t have to get a sunroof and premium sound system.”
I agree completely. Build-to-order. Let us order over the Internet and specify exactly how we want the car built and what options we’d like. No “packages” or “groups” forcing us to buy something we don’t want or need. We can do that when ordering a computer from Apple. Why can’t we do it with GM?
With a true “build-to-order” system, dealers wouldn’t be forced to maintain and finance huge inventories that only sit around in the sun deteriorating and getting dirty.
Be bold Fritz
Mr. Henderson, if you want to do something bold and out-of-the box, give us build-to-order over the Internet.
- I do not understand the closing of Saturn and Pontiac. I’m somewhat biased as I purchased and Aura and a Sky in 2009. To me the Saturn is well made and the dealerships are among the best in the industry. To eliminate the brand makes no sense. Good products good people…………goodbye.
-With the closing of the Wilmington plant the Kappa platform is dead. GM is eliminating two of the best looking GM products. The new Solstice Coupe is one of the best looking cars I’ve seen in my lifetime. It’s a crime to eliminate the Kappa roadsters.
-GM’s marketing has been poor for quite sometime. The most effective ad, in my opinion, is Howie Long comparing GM’s products to Honda — ending with the lawnmower shot.
-GM is not alone in sales being down. But GM should have, and must, show the quality today is not the bad quality from the 70’s and 80’s. GM is putting out better cars than their Japanese competitors.
-Buick is big in China. Chevy is American as apple pie. GMC means truck. Cadillac is Luxury. What do Saturn and Pontiac mean? Saturn is finally putting out good looking cars and *poof* management drops them. Pontiac used to mean excitement and they were trying to get it back, but time ran out. Saturn and Pontiac will be missed. The Sky and Solstice roadsters and couple will be missed — the decision seems short-sighted as only a bean counter looking at the next quarter can make. Just a reminder, GM’s money losing streak began the year after Oldsmobile was dropped.
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. Will GM offer something new, in the same price range, for the many loyal Grand Am/G6 coupe owners? Has anyone given thought to renaming the Cruize, and calling it the Chevy Cobalt instead?
Mr. Henderson,
GM salaried retirees are some of your most valued and loyalist customers. Please be upfront now how the new GM will affect the salaried retirees pensions and benefits, including health care and life insuance and GM auto discounts. What exactly will change?
Mr. Henderson,
Can you please tell us that GM will no longer do rebadge jobs on their vehicles. Do you understand by doing so you insult your customer’s intelligence? The Lambdas are good examples of different vehicles on the same platform and are not blatent rebadges. The last set of minivans are examples of blatent rebadging gone wrong.
Thank you,
Jkujo
Will GM consider adding an option for Hydrogen Conversion in new vehicles, and sell a Kit for older GM vehicles?
The concept is to burn Hydrogen gas generated from Water onboard the vehicle using it’s computer for control.
It is an old concept, but appears to work at a time when CAFE standards by Federal Regulation are going UP as are Gasoline prices.
There is no Green House Gas (GHG) or CO2 emissions when burning Hydrogen Gas in an internal combustion engine.
Effective mpg of gasoline will increase significantly.
What’s wrong with 45 mpg in an old GM vehicle?
What’s wrong with adding Hydrogen Conversion to the Top of the Line 2010 Chevy Camaro with V8 engine and all the extras to improve mileage and reduce GHG and CO2 emissions by using Hydrogen?
===
Ford says Big 3 Auto companies use common suppliers for some parts and services.
How about Hydrogen Conversion Kits for a large number of Old and New Vehicles from Ford, GM and Chrysler?
The Dealers would LOVE the work installing them.
250 Million+ registered vehicles in the United States.
I’m a truck guy at heart and spent a lot of time behind the wheels when I worked in construction. Trucks in the old days were tough hearty beasts that had a vinyl bench seat (usually covered with an old blanket), wing vents and floor vents that opened with the pull of a nob or lever. They were built with minimal features – a heater, defroster and simple radio. Nowadays, we have the pampered “contractor” with 6 position leather seats, Satellite Radio you have to subscribe to, heated steering wheel, power windows and AC (no more floor vents) and cup holders.
How about building a truck called the Retro – that has all the modern stying features and a flex fuel powertrain. Replace those bells and whistles with floor vents, wing vents, heavy duty suspension, dual walled beds with a Rhino Sprayed on liner, trailor hitches and a lumber rack on top already (standard). Make it to carry a 1800lb payload in the bed, and be able to tow large loads. Nothing fancy – just a truck that will hold up under the rigors of real work – not the Soccer Mom – pampered architech and weak hand shaking contractor. You know – BUILD IT FOR REAL WORKERS!
By stripping the costs, and adding some toughness the price will fall in line with something more affordable. Oh – and make it any color you want, as long as it’s Black, White or Battle Ship Grey, so if it does get a scratch – the owner won’t mind.
Actually – just make it one color – battle ship grey to let the competition in the market know you’re getting ready for war.
Dear Mr. Henderson,
How come GM has gotten rid of Homespun brands like Pontiac, Hummer, and Saturn, when GMC makes trucks practically identical to Chevy’s? Wouldn’t it make more sense to phase out that brand instead?
In addition, many times the inefficiency of the car company is not necessarily the cars, but the nameplate of them. Has GM considered, instead of phasing out brands to just re-name them. For example, Saturn’s are just re-badged Opel’s from Europe, has GM considered instead of getting rid of the Saturn name, and just make Saturn the new “Opel USA” brand? That way, it’s fresh European styling would appeal to not only those seeking normal mid-size sedans, and small SUV’s but also compete with the European market in the US like BMW, and Mercedes.
It seems like many of the “Cool Cars” from GM Europe never make it to the United States, Why? For example, Vauxhaul and Opel use diesel engines just like many Volkswagens, resulting in better fuel economy, cheaper gas and faster cars, why isn’t GM USA using more of GM Europe’s ideas, technology and designs? If GM brings the European Market to American cars, the population would rather buy domestic than foreign if the price is competitive.
I suggest to make a more lucrative and popular GM, Keep Chevy, Buick, and Cadillac, phase out GMC, and introduce Opel back into the American market. Stop Re-badging GM Europe’s cars and start making more unique cars to put in the Chevy, Buick, and Cadillac divisions. Like I said, for the American market to compete with German, European, and Asian Cars, they need to provide the public a very nice car without cutting corners, and provide that car below the price of a competing foreign car.
For example, What GM vehicle can compete with a BMW 328i’s quality, reliability, and price? It’s not an average mid size sedan, but its a small luxury sedan. Maybe a Pontiac G8-No. That car was overpriced, and the interior of the car were made cheaply. If GM is going to charge a price for a car that’s equivalent to a foreign car, they need to be able to compete quality wise, which it doesn’t. GM’s perks such as their power train warranties, mean nothing if the rest of the car doesn’t hold up, or the interior quality is sub-par. GM needs to compete with the European market, and have Asian(Or better) pricing.
I am a huge fan of American cars, and am very happy to drive a new one. I bought the car because for the price I paid there was no better vehicle. However, I am not sure I can say that about different price ranges. I hope that GM will continue to surpass my expectations, but to be able to compete they are going to have to do major restructuring.
Sincerely,
Brandon Eisaman
Mr Fritz Henderson,
First let me give you a congrats on your new position at GM.
From what I read, you are have been the “restructuring guy” at GM and should do well. You also seem to listen to the public. In the short time you have been in your CEO position you have displayed that well. I hope it is not just something your doing in the short term or till the B.K. is over. You should continue to listen and be open about GM and what the public wants. Honestly… What we want and what Washington and the press say we want are not exactly the same. Always go to the consumer. All the above posts are your profits and what GM should be considering. Sincerely LOVE that GM is on facebook and keeping your taxpayer investors in the loop.
If you want to really keep hold of your loyal GM customers why don’t you think about some kind of “trade in” incentive?? It is no secert that GM (as well as Ford and Chrysler) has had huge problems with resale value. That being said if a happy GM owner wanted to trade in a 2 year old car today they would more then not… be majorly upside down. When this loyal GM owner gets her/his true value of thier car from the sales person they end up mad, upset, feeling taken advantage of by the dealer and probably more then not… walk out without buying a car. Bad taste in thier mouth about the dealer and the brand. Why can’t GM do a bit less incentive and give a guarantee trade price for GM trades? I understand that the shape and care for the vehicle would have to be considered but, if it is clean on carfax and has no signs of an accident why can’t GM offer and good- better-best trade-in buyout? Make it sincerely better then Kelley Blue Book 3 to 5k better (maybe 4-6k on Caddy). I think you would end up with a good amount of people buying another car from GM. Also, don’t stop offering resale value assurance. it gave a little piece of mind that the buyers vehicle wouldn’t TANK in value. You need us to feel comfortable with our purchase and not run to Ford or Toyota. Thank you for your time Mr Henderson for your time and you can do it!!!
Dave Hinks
GM Owner of 21 years
Gurnee, IL
P.S. Can you talk Bob Lutz into staying?? That guy know what a pretty car should look like!
Dear Sir
I have a curent share stock’s to general motors, are the share stock’s is zero and will not have any share stock’s of the new GM, do you have any response for me
Thank you
Fawaz Azize
Gm why dont you be the first to design a good looking car. There have been very few good looking cars made in the current millennium. I suggest a hatchback car, dont make it look like a bean machine, dont have a big bubbly font end, go for a flat grill, with head lights in the grill make it look plain, all the new cars have such a high roof line which should be made much lower and make the back end stream line maybe like the 3rd gen camaro. you can have a fuel efficient 4 cylender engine and for god sakes make it rear wheel drive. If you came out with a car that was good on gas and sporty thats fine but it NEEDS TO LOOK LIKE A CAR not a pod. The hell with interior space we need a car that looks good.
Trevor has an interesting idea with his build to order suggestion. From what I understand, GM did this very thing way back. It would be interesting to see it done. Particularly with colors. I can’t tell you how many times I’ve seen a color that I liked on a GM car, and discovered that it wasn’t available on the car I was considering purchasing. Case in point: in the early 90’s Buick had an absolutely beautiful pearl white on the Riviera. I absolutely loved that color! I couldn’t afford a new Riv though, and it wasn’t available on any of the cars I could afford (that Pearl white would look great on the new Malibu as well). These days I see the Camaro doesn’t appear to be available in white according to the “build a car” feature on chevy’s website. While I can’t afford a new Camaro until I pay off my HHR, I do have a wish for a Camaro SS with the RS package in white with large orange stripes down the hood and trunk. just like the late 60’s RS/SS Camaros. Making more colors available when special ordering a car would add to the uniqueness of the vehicle.
The latest reports says the hybrid market is growing ( around 12k prius only sale in may 2009 ). IF we count all the GM hybrid sales its even less than 1k. Are you going to haver a real prius competitor ?
Malibu is only green washing and all world knows it. There is not any car to compete on Civic hybrid, Insight etc and Prius,Focus hybrid etc. Even no hybrid SUV at ford escape level competition.I don’t look for a big SUV.
Do 2010 portfolio contain “2 mode Malibu hybrid”, “2 mode traverse” and a 2 mode Acadia or enclave and hybrid cruze which is a real gas miser ? Please don’t answer volt because insight is 20k and Volt is expected 40 k. If still answer is volt then will there be a 10/5 mile volt in 20k range ?
I’m wondering whats happening to GM. Is GM going bankrupt and then coming back in the feature “full force”?
I’m also wondering if Chevrolet is being bought out by the government, my friend said they were but I want to know for sure, if they are he said that GM is going to be owned by the government
Whats happening to GM?
My biggest concern about the Volt is dealer gouging. For example, Jim Reed Chevrolet in Nashville, TN, who has a good reputation, was asking $40,000 over sticker for a new Corvette ZR1. I paid sticker for both of my Prius hybrids. I do plan to buy a Volt but if they demand anything over sticker I am back to Toyota. BTW I do own a new Corvette, however I purchased it at another dealer.
Good luck. I have owned several GM products. However, After the Experience we had with my wife’s 2006 Impala ss (at least 45 days in the shop in 22,000 miles and a pile of crap Gm rep. essentially accusing us of sabotaging our own vehicle) I will never again purchase another GM product and I will exploit every opportunity to suggest that no one else does either.
Mr. Henderson, As a recent retiree I wish you and your team good luck with your massive project.The future success of GM is crucial to the best interests of the county.As a car buff I personally think that the new Camaro could be just the product that may a real positive for GM going forward.I do sympathize with the problematic idea of government dictating products or product planning and marketing.I also think there is an opportunity to avoid alienating some potential buyers of Saturn/Pontiac brands in that some of those strongest models could be reworked without losing your investment in them,not necessarily rebadging,but reworked into youthier Buick products like Buick had many years ago.A main concern I had had for some time has been industry knowledgeable expertese and independence of this companies board of directors or the lack of it and conflicting interests leading to former bad business decision making.
Everyone who works for GM drives a GM vehicle. There are too many non-GM vehicles in our parking lots. At least buy American vehicles. We use to have separate parking for non-GM vehicles.
I want to know why GM will not take back the salaried Delphi retirees, some who have workder 35 years at General Motors. While at the same time, you are bending over backwards to take over the union pensions.
Nice slogan “GM – Family First”
As the purchacer of a 2009 Aveo, I have listened with interest about a change of culture within GM and a change of perception by the consumer towards GM. My 2009 Aveo has had a no start issue since purchace and now has two “tech” cases. I am frustrated to the point of walking away from the vehicle – have had no satisfaction from either the dealer or the “customer service” person with no last name at the end of GM’s 1-800 number.
I am told my $18,000 vehicle purchace eight months ago is now worth $8,000 on trade in. I am considering going to the press at this point which will do no good to your stated “change in perception” on the part of the consumer
If you want a change in perception…… you need to re write your approach to customer service. You need to stand behind your vehicles and your 160,000 k warrentee is not carte blanc to produce substandard vehicles.
I would like to know how the New General Motors is going to handle all of the Lemon Law cases that were being litigated before you filed BK. I have been without my truck for over a year while you dragged your feet. You cost me and my business alot of extre expenses. Is this this the kind of customer service we have to look foward to? 300,000-400,000 GM customers have been following my blogs on the internet about my truck problems and watching to see GM steps up to the plate and covers the warranty coverage they advertise. You don’t have any idea how many sales you have lost over my problem with your company. All you have to do is go onto any of the big dieael sites and check the forums. If your idea of change is anything like president Obama’s, we have nothing new to look foward to. Your customer service problems start at the core, (Corporate level). I am curious if you will even answer this post! Mr.Henderson! Where is the change?????????????
Just wanted to wish you good luck, Fritz. If anyone can do this, you can.
Everyone who works for GM drives needs to buy GM vehicles.
There are way too many NEW foreign non-GM vehicles in our parking lots.
Fritz,
I believe that unloading the Saturn brand is a big mistake. I have owned four and have loved each of them. The polycar body was great. Living in the Cleveland, Ohio area where they use alot of salt my cars looked better than others on the road. As the daughter of a GM retiree, ( 30 yrs ) I am sad to see what has happened to the company. I did not approve of Rick Wagner and his “management”. I stress to you that people who are who make your cars and buy them. Don’t hurt the workers or customers by making any more blunders than have already been made. Your engineers need to start getting ahead of the foreign car engineers and coming up with better concepts than they have.
An important part of reinvention is to retain what goodwill and buyer incentives you can for your new product line’s potential buyers. The reorganization process makes that a challenge — SO –
A practical question: will the purchase/lease credit that was earned and accumulated on my “GM Card” credit card account over the past few years be lost, or will I be able to use it towards the purchase or lease of a “new GM” vehicle? I can’t get a definitive answer from the credit card company (HSBC) so far. If the “new GM” will have another name (also not clear from what info I can find so far online), I see a potential problem with using any accumulated benefits, since the card agreement specifies purchase or lease of a “GM” vehicle to use the earnings. The spin-off of some divisions also pose questions about using my GM Card earnings (what if I want to but a Saturn or other product that is from a spun-off division?), as does the apparent elimination of leasing through GMAC.
I like what I see so far about vehicles in the development pipeline, and I need to plan for my next purchase. I lost essentially full value of my GM stock already, I’m just trying to figure out if I’ve lost my earned discount as well at this point.
My family has owned too many GM vehicles to even count at this point (at least ten to twenty between just me and my parents). I’d think we fall in the “loyal GM buyer” category based on past purchases– so I’d appreciate a straight answer.
15:14 [Comment From Miami Al ]
Fritz: No doubt GM is producing the best vehicles in its history, but the dealer experience continues to be a nightmare. With the remaining dealers, what is GM doing to ensure some control over the customer experience, so that it’s at least comparable to that offered by competitive dealers?
15:16 Fritz Henderson: firtst, I do not agree with the premise. a quick look at any objective survey data would suggest that gm dealers, on average, perform at or better than the competition, often at the top. however, we do plan, with the dealers that will be part of our future, to have some specific performance expectations spelled out that each of us can use to guide our relationship. interestingly, our best dealers are looking forward to the challenges of building the new gm.
Fritz, the problem with just looking at any of the objective survey data about GM’s dealers is an incomplete set of data, as the surveys only encompass people who have made a transaction at a dealership. What about all the people who didn’t buy a vehicle or decided to have their cars serviced somwhere else? What story do they tell?
If you think that GM’s dealers are the top, either you haven’t stepped into many lately, or you get treated special because of your place in the company. As an employee, I’ve gone to numerous dealerships, both in the Southeast Michigan area and across the midwest, and there are some serious problems in a lot of the dealerships. I’ve had several dealerships refuse to let me test drive the vehicles, salespeople who didn’t know much about the product, and I’ve been screwed out of 5,000 miles on my new Saab 9-3 because the dealer told me I needed an oil change well before I really did.
The dealers are truly our only interface with customers, and even though they are their own business, the customer is not the top priority in many dealerships – the bottom line of the dealer is, and that leads to them making decisions that loses customers for life. If I didn’t work for GM, a GM vehicle probably would not be my first choice because of my experience at the dealerships. I agree that GM has the product and the quality (unfortunately so does the competition), but the customer needs to be the focus, and I hope that the new agreements that dealers are supposed to be signing will deal with some of these issues.
My father worked for General Motors for 25 years. He was a very devoted employ. He started in the boxcars and moved up to Supervisor. We lived in Indianapolis. The Chevy plant has a big ball on top of the building. When ever we drove by it or there was any kind of commercial for any GM vehicle we had to salute the ball or the tv. That is how devoted my dad was. He always said if GM goes down the US will go down with it. It will affect everyone. I was born and bred a GM baby. I said I would never marry a man who didn’t drive a GM vehicle. Low and behold I met a guy that drove a 69 Nova and it was love at first sight. We have only owned 2 vehicles that were not GM’s. They were used and we were poor. However, when my husband started working for GM-we only bought GM vehicles. We have had a 76 and 79 Cutlass, 68 Riveria, at least 6 Chevy Astro or GMC vans. We have two in our driveway now. One is 20 years old. We have had at least 3 GMC Envoys. Our daughter drives a Cobalt and we have had at least 4 other GM cars that names and years excape me. That is how devoted we have been to our company. My husband started working for Allison Gas Turbine in 1978, left there and went to a plant in Anderson and then came back down to Indy to work at the stamping plant, He just got his 30 years in last November. He would love to retire with GM. Any ideas as to when the plant will close or if it has a buyer? Thanks and Good Luck. GM FOREVER!!!!!!! P.S. My sister-in-law works for GM and I have had 2 cousins that have worked there.
Mr. Henderson:
While I am not completely sure that you will actually read this, I wanted to let you in on a little secret because Chrysler did not give a good example of how American business should have been conducted. The public of this country is very skeptical about how business is run in this country, and we are all very unsure about the behavior of our own companies. GM top management should take note that Chrysler was completely wrong in the happenings surrounding its closures of their many dealerships. You had families who had been with them for 40+ years being shut down through dealings that were completely out of their hands. What is disconcerting is that some of these people (generations of them) had always been in the car business and had not done anything else in their life. All of a sudden, they are now out of a job and starting all over. What is so despicable is that they all got packets in the mail! Packets in the mail after 40 years of loyal service! The CEO and his upper management staff could have at least (and the very least at that) got on a plane and delivered that news in person. This just goes to show the country that big business does not even support or give loyalty to its own ~ how is the consumer to believe that big business will value them?
Mr. Henderson, I do believe in GM. As a matter of fact, my husband and I just purchased a new Chevrolet this past April. You say that you are ALL for reviving this company; then why not go back to the bare bones old-school way of doing business ~ THE RIGHT and HONEST WAY ~
I understand that dealerships for GM will suffer the same fate as those in the Chrysler group, but you can choose to handle this in such a more positive and endearing way. Take the time, you and your upper management, to actually travel to these ill-fated dealerships and sit one-on-one with your owners. Let them know that you do care that they have to close and that you are not devoid of sympathy. I think this act will show the American Consumer that you are going the extra mile and that even a large corporate giant such as GM can still do business the right way.
I do hope that you can pull this company out of this slump; we are all counting on this because the foreign influence in this country is getting to hard to swallow. We need our companies!
Thank you for your time,
In spite of the fact that I am very far from America and GM problems does not concerns me, I wish your good luck because except a long-term history and huge assets there are a lot of live people behind you. Good luck!
Diesel Truck said it…
GM is staffed with many folks that not only don’t like GM, but have no passion for the products. To them it is a paycheck and a retirement. I hope the new GM is going to be staffed with folks that eat, drink, sleep with GM and their products on the mind.
A person can clearly see in many of the products that the decision makers have no emotional ties to the business, no connection to the consumer and outside of the immedate financial maintenence, no real vested interest in the well being of the company.
It is amazing that new GM is going to commit to build cars that people want.
Funny, since the Silverado is the best-seller for GM, and #2 for all of the United states. Has been for years. GM has several cars in the Top 10. GM IS building cars people want, but GM isn’t building cars that certain groups are trying to force Americans to buy. Where new GM will also fail is if new GM bows to Obama and builds a fleet of ultra-small, fuel efficient cars and neglects the larger, more popular vehicles.
I urgently recommend reading Mr. Phelan’s latest column:
http://www.freep.com/article/20090607/COL14/906070520/1002/BUSINESS/Auto+bailouts+aren+t+new+fad
The obligatory “Why did you name it the Cruze” post:
Why not the Tonye? At least he races a Chevy-badged car.
What is disappointing is that the American worker and car buyer questions whether or not Fritz is even involved in this blog. Could be that many of the commentors are ringers as well. Here’s the question, Fritz:
GM has produced product that has lagged in consumer interest and during the current economic downturn, offers even less interest. How much is the Ad campaign costing and why are you spending money on poorly written and insincere full page ads in major newspapers when you should be focusing on keeping jobs and distributors alive?
Dear Mr. Gettlefinger and Mr Henderson,
My family have been GM shareholders from 1919 who have slowly watched your intransigence and incompetence destroy the crown jewel of a portfolio. The Economist this week has done a fair job of assessing the labor and management of the singular enterprise with which you were entrusted.
In bankruptcy court you will succeed in abrogating most of the financial obligations you assumed. You also have succeeded in forfeiting the trust of your former shareholders, bondholders, not to mention your former customers. all of whom you have served abominably. If you will, consider the “ownership experience” of your shareholders who consistently saw their interests subordinated to the truculent demands of a union that, in the words of John L. Lewis, simply wanted “more”. Over $103 billion of money that should have been invested in the enterprise has been paid out for medical care for retirees while investors and shareholders use Medicare.
Through bankruptcy and over $50 billion of public funds, you hope to salvage something of the once magnificent enterprise founded by Mr. Durant and developed by Mr. Sloan. Why should a customer entrust you with their business, a lender or shareholder with their capital? Labor and management have steadfastly put their interests ahead of their customers, lenders, and shareholders and, despite the bankruptcy, there is no evidence whatsoever that this situation is about to change. Peter Drucker conceived of the corporation as a sole point whose purpose it was to serve the needs of its customers. Rather, GM had become an enterprise whose purpose was to supply the wants of its unionized labor and management.
So, my family has no further claim on the enterprise it supported from the beginning and, equally, you have no further claim on our support. From our perspective, you have had your chance and will not get another.
When you have a moment, perhaps you would like to visit the grave sites of Mr. Durant and Mr. Sloan in New York and contemplate explaining how you blew it.
Very truly yours,
J. Kevin Murphy
“For the record: Have you ever driven a Volkswagen TDI? Have you ever driven any of the many excellent small European cars with turbo-charged diesels ~ all with superb fuel mileage that already exceeds the new CAFE standards you will have to meet? ”
Well… my Wife’s mother has a VW TDI. The thing is junk, no offense. The entire intake system has a notorious tendency to clog with carbon deposits every 50,000 miles. Due to emission requirements, the VW TDI engine employs a very large EGR valve which as on any other car recycles some of the exhaust back through the intake. The only problem is that Diesel is a dirty fuel and thus creates lots of particulate matter. The result is that her car will eventually pack the EGR valve and intake with carbon and the car just stops running one day at random.
Of course this is just one of the many problems the car has, which is also plagued with electrical problems, a faulty “Zero centrifugal” clutch that seems to self-destruct every 60,000 miles, and so on. To say the least, I would hope GM would not consider using VW as a shing example of engineering excellence.
“Why not the Tony? At least he races a Chevy-badged car.”
A Chevy badge perhaps, but does his car actually have anything to do with GM and Chevy — other than that badge?
Mr Henderson,
I want to ask you to quit beating around the bush and answer questions completely, honestly, and directly. What does GM have to say to the millions of customers who’ve sworn them off after their last experience with the peeling paint of a 1990 Chevy Beretta that GM refused to cover after the warranty? How do you get people with horrible dealer experiences to ever step foot in a “new GM” dealer when they will be reminded of the “old GM” so quickly (I think if you really want to get people to think about buying your cars again dump the General Motors name all together)?
The point is, your products need to speak for themselves, and when you do advertise them, the ads need to be about the product. Product that you keep promising is “just around the corner”, but never fully materializes or takes years to come to fruition, by which time it already looks and feels old and outdated.
For years, GM has lived off the notion that it is the patriotic thing to do to buy GM. Well, I think I’m as devoted American as anyone else, and I drive a Honda Accord. Because the car offers the best combination of what people want at an attractive price. The engine is silent at idle. Theres not a single vibration in the interior no matter how rough the road is. And it runs, and runs, and runs. I know more people with Hondas and Toyotas that have over 150,000 miles on the odometer than I know people with GM vehicles with that same mileage.
Keep in mind, when MOST people talk about quality, they aren’t talking about the initial 3 months of ownership when it’s easy for anyone to make a nice car seem really high quality for 3 months. How about 6 or 7 years old and 150k on the odometer. THAT’s the measuring stick I use for quality. THAT’s how you know the engineering is precise, the manufacturing follows the plans to a T, and the assembly is done properly, every unit, every time, no questions asked or corners cut.
I doubt if the new GM will ever get to the point they can do that. Not when you will still have unions and people with more of a political agenda than desire to just make great cars on your payroll.
Do yourself a favor – hire car guys in all management positions. Your BoD should be car guys. Hell, Honda’s current CEO Takeo Fukui is an engineer first and foremost, and their new CEO, taking over this month, Takanobu Ito, is also an engineer – Ito worked on developing the original 3.0 DOHC VTEC V6 in the Acura NSX – to me, that is someone who gets it. Both gentlemen know cars. They have been involved in development with key technologies that make Honda what it is today.
What are your credentials in the engineering department, Mr. Henderson? Can you look at an engine’s blueprint and tell exactly what’s going on in the engine?
American car companies get it all wrong. They try to run them like typical American companies, where the bottom line is more important than the product. Honda does things exactly opposite, and while their sales are down, they aren’t filing BK or asking the govt. for help.
Car companies need to have car guys for leadership. The closest person you have to that is retiring when GM needs him most. Is that not a sign of what deeper issues lie? I wish Bob Lutz all the best.
You should have hired him 20 years ago and let him be CEO.
Having been a loyal GM (Pontiac) owner for the past thirty years. We currently own a 2005 Pontiac GXP and were looking to buy the Pontiac G8 GXP. We just gave our 1999 GTP to our son’s roommate with 184K miles on it and it’s still running! One of our first Pontiacs was a Pontiac Bonneville SSEI. We just can’t say enough good things about how much we have loved the GM product.
Having said this, we are left scratching our heads as to why GM would choose to drop the Pontiac line and keep the Buick line. No disrespect to our seniors but it would appear to this lay person that there are so many more Pontiacs on the road then there are Buicks. The “Buick” name in and of itself equates to a person of senior age. GM had just taken the first step in designing a car that “might” appeal to the babyboomers with the Buick LeCrosse. However it may take years before this equates to sales to GM.
What was the thought process for keeping the Buick line over the Pontiac line? We are having serious questions as to buying any GM product now at all.
If someone could just reply as to the reasoning behind this decision we would be most interested.
Mr. and Mr. Schmidt
Hillsboro, MO
I can not understand why certain dealers are closing and others stay open. There seems to be a lack of information on the criteria and now we see from the WSJ article that the government is involved in some capacity or influence in the closing of certain facilities. This seems very un-American and with the violation of contract law by subordinating the bond holders to a worse position than unsecured parties; I have instructed all the companies that I have influence with to NOT lease or purchase any more GM vehicles in the future. Our ranching activities will switch from GM to Ford on all our truck aquisitions and until someone steps forward with the criteria for closing dealers our companies will not purchase GM products in the foreseeable future. We wish you the best of luck and hope you get back to private ownership soon!
Mr. Henderson, A suggestion that I saw written here could make some good business sense and I’d like to add to it.The suggestion of offering better flexible trade in values towards the purchase of new vehicles and perhaps offering these trade-ins to the dealer community that wishes to remain in business after losing their franchises.This is just a thought and may help to stimulate interest.An example of this is my now 10 year old Buick Lesabre which I bought brand new and was one of the last of an era is now worth less than 15% of what I had paid for it.This car has NEVER required any kind of major repair is still highly reliable, driven regularly and Great credit goes to the union local #599 membership that proudly built it at the once long standing proud “Durant Motor Car Company” in Flint.As the saying goes and it is still true that “when better cars are to be built ..Buick will build them”.
I’ve still yet to hear a valid explanation on how closing dealerships saves GM (and Chrysler money). After all, the dealerships pay for almost everything. I think GM and Chrysler will regret this decision down the round. What’s happening around this issue is Group Think. Someone came up with this idea that shuttering dealerships will benefit the companies, and all of the lemmings followed suit in agreement. A very poor decision. (And no, I’ m not a dealer. Just a logical human being.)
Hi all, I just wanted to say that I have read some of the blogs above and appreciate the views. I have just bought a 09 GMC Denali. I did my research online mostly and used GMC Build your own to get an idea of cost and what was avalible. I dropped in on a couple of dealers and I also used the contact dealer on the build your own site. The one that stood out the most is where I went and to tell the truth,I was suprised to get the positive treatment I recieved.
Funny thing is, I went in to all the dealers” In overalls” and as best I can tell, I was treated the same as if I had worn a suit and tie. I had dozens of questions and wanted detailed facts,that I did recieve answers to. Two of the dealerships I went into did not follow up so I did not go back. I also had one that did not follow up on the internet for whatever reason. That was OK because it helped me to narrow down my choices.
I had a good experiance at Hall GMC in Tyler Tx. and I would reccomend that Rey Sanchez did a good job of moving us forward to a purchase. He was flexable, and offered addons that quote”Made the deal”. It was probably more time than Rey wanted to use, but He wanted us to feel that we recieved what we needed and we were happy with our purchace. Rey and other staff also said they want us back and referals, which I will do until I get a negative comment back,if that happens.
I have always been sceptical of car dealers and car salesmen, but I felt like I had good experiance with this endevor.
It will be interesting to see how service and warranty work goes. I will repost if I have a good or bad experiance.
The dealership was very clean and neat in all departments including the shop, I like that, and it is another reason I may very well use them for service although we all know we have other options. We will see!!
Mr. Henderson,
Have you considered changing your logo? That blue square with the underscored initials “G” and “M” is really too reminiscent of the “Old GM.” It’s also stale as designs go.
If you’re really going to start over, I recommend a new logo, and perhaps even a new name for the company.
It’s amazing that General Motors doesn’t have someone on here all the time answering questions from past, current and future GM customers looking for answers. When is General Motors going to wake up?
Fritz, 1st are you the same Fritz H that spent time in Mass in the early to mid 70’s. @ KP. If you are, I’ll swit from Ford to GM. If not still, good luck
Just a quick observation on slowing auto sales, get your dealers under control! My wife and i recently purchased a new car, wanted a new Camaro but could not bring ourselves to pay the markup your dealers are asking. Beautiful car, MSRP thirty thousand ten dollars, dealer price over forty thousand! For a six cylinder Camaro. I understand that the dealers own their inventory and can price as they wish but how many sales have been lost because we the consumer would not or could not pay such huge markups? I’ve owned GM vehicles all my life but after finding the same thing at several dealers, and being told flat out if I don’t like the price buy something else, I did, I bought a Honda. My feeling is if you really must close dealerships, maybe you should look at who really has an interest in helping the consumer buy and enjoy your fine vehicles and not just taking advantage.
(Total Confidence ended on June 1). That is a General Motors quote! Can you believe it? It’s gotta make all of us feel really good about GM products. Well, I lost my confidence over a year ago with General Motors when they didn’t stand behind their warranty on my $60,000 truck! 60 month/100,000 mile warranty coverage on the Duramax engine, Total B.S.!!!!!!!!!!!!!!!
I just received an Owner Appreciation purchase incentive in the mail yesterday. A couple of questions I’d love to have GM answer:
1. Why so short an expiration period? Only three weeks to use the offer. Since GM is operating under bankruptcy proceedings, wouldn’t it make more sense to give us through the summer to consider the offer? Plus with Cash for Clunkers working through Congress it would make more sense to give this offer 90 days. The “Buy Now” mindset is “Old GM”. Be more flexible with your owners!
2. Why doesn’t GM lift the GM Card restrictions and allow us to ‘cash out’ our earnings? I’ve got close to $4,000 on the GM Card but limits of $1,000 or $1,500 really do not motivate me to trade in my current non-GM vehicle and come back to the family. Reinvent the GM Card limitations; don’t keep me staring at a high incentive balance I can never use. Delta now lets me use miles to off set some or all of the cost of a ticket. I think GM could do the same with the GM Card!
3. Give Buick owners like me a chance to get the all new 2010 La Crosse with a special incentive offer (maybe let me use up my GM Card balance). Get the car in our hands and on the road! As good as it is reported to be, you need to get it in enough hands early to get the ‘tweets’ going.
Just some ideas from a struggling to hang on GM owner and former GM executive!
Dear General Motors,
I have some ideas about security on your cars. I think we should use security lasers on the windows so that no one could break through into the car.
A lot of people have this problem. In fact, we had the experience ourselves just last night. A thief broke into our cars by breaking the passenger glass with a large screwdriver. The alarm on my grandma’s 2008 Lucerne was set off, but because no door was opened, the alarm shut off and we thought it was just a neighbor’s car and the alarm was activated by mistake.
The van was also broken into and a lot of the interior was maliciously destroyed and all of the electronics stolen. Now, we don’t have a way to get to our new city where our dad just got a new job.
Here’s an idea:
There is a small wrist device, like a watch, that the cars would have lasers so that once the car’s security is compromised, a flashing light and sound signal would come to the wrist alarm device and the owner could hear and see that the car is getting broken into.
The laser beams would be strong enough to prevent the thieves from breaking in.
It’s nice that you are all thinking about fancy features on newly-designed cars, but if you do not address the question of security, then all the advanced design features willl be worthless.
Thanks for considering this idea for all cars.
Sincerely yours,
Jacob Elijah Snow
Mr. Henderson,
I truely hope for the sake of your company and our American industrial base that someone from the company reads this blog and takes customer feedback seriously.
I have been a GM fan since getting my license more than 30 years ago, mostly due to my Dad and his parents purchasing GM cars their entire lives. The brands were Chevy and when they could afford them, Buick’s and Pontiacs. My wife and I have almost exclusively puchased Japanese cars, with the exceptions being a Ford Probe/Mazda, Windstar and Pontiac Montana (our only GM vehicle so far). I almost purchased a Cadillac STS 4 years ago and instead opted for an Infinit M35x due to the numerous additional options and cost equired to get 4wd on the STS at that time. (The Infiniti was about 15k less as a result)
Hats-off to you for finally breaking through decades of bueacracy and management layers so that GM can finally quickly develop cars that customers want. That’s why I’m writing. If you build what we want you will succeed. (vs Aztek, G-3, Colorado, etc.)
In place of the Infiniti I was considering a G-8 except will not any more for 2 reasons – - why would you sell a car in today’s market without a navigation system built in? And, well Pontia is history. This I don’t get nor does anybody I speak to. Not too long ago the Grand Am was one of the best selling cars in the country. Renaming it the G6 didn’t help. What would replace the G6 and G8 in the GM Portfolio. Not a Chevy, not considered sporty or a mid-end car. A buick, sorry, my Dad and his 60 something peers drive those. Would I consider the new LaCrosse?
GM needs Pontiac, even if it’s a sub brand at Buick Pontiac GMC dealers. Otherwise you are ceding the middle of the market for enhusiasts to companies like Honda, Acura, Nissan, Mazda, WV and others. The car buisiness has and will always be a volume game with efficiencies creating economy of scale. Perhaps you can change Buick’s impage in the US, but it will take generations.
The last thought I’d like to share is that GM makes and sells better products outside the US than here at home. I recently saw the new Buick Regal (Opel Insignia) on a business trip to China. It will sell here. A perfect car for, sorry, Pontiac. Same thoughts would extend to the need to sell the Chevy Cruize now as well as other great small cars from Opel.
Good luck with the reorganization. I sincerely hope GM stays American owned and that in the future a GM product once again is the most appealing to buy. Cars are emotional purchases tied to our self images. I hope your new team listens to your customers moves fast and wins.
We are still waiting for a Rep from General Motors to take the time to come on here and answer questions from your loyal customers! How bad do things have to get to wake you guys up?
MY HUSBAND WANTS TO KNOW WHY THE BUICK LASABER WAS DISCONTINUED WHEN IT WAS A GOOD SELLER AND WHY ARE YOU CARRYING THE GMC TRUCK WHEN IT IS SO MUCH LIKE CHEVY? WE WISH YOU THE BEST, I ALSO LOST MY JOB WHEN THE CHANGES STARTED BUT I DO BELIEVE IN GM AND IT IS AND WILL CONTINUE TO BE A GREAT COMPANY. LET AMERICA SHINE AS IT HAS NEVER SHINED BEFORE.
THANK YOU FOR YOUR TIME.
KENNETH AND JENNIE ASKEW
Dear Fritz,
My biggest gripe with all american auto companies (GM / Dodge / Ford) is the practice of price gouging on new products. The dealers state it is supply and demand or a market adjustment factor, I call it highway robbery.
From my perspective, the dealers are the ones losing your loyal customer base by their internal greed. And you wonder why your in bankruptcy? How about this formula, sell more cars at sticker price than a few at the market adjusted factor (10-15K over sticker). The volume would by far make up the the few cars they do sell at a higher profit.
People just get feed up with this type of racketeering and go elsewhere like to a Honda, Nissan, Toyota and others who practice a more standardized sales approach, in other words, they just want to sell cars.
At this point in time, you would think that the dealers would be more than willing to sell any car at sticker price for the sake of the sale, sales being what they are today.
My suggestion, stop this practice, the dealers are ruining your good name and company, people look upon them as thieves and they are really doing an injustice to GM .
I know I would certaininly purchase a new Camaro SS at sticker, the only thing preventing me from doing this is the dealers and there greed.
If you find it in your heart to sell this model at sticker, send me an email. Future sale waiting to happen.
Good Luck in the future GM.
Very Best Regards,
George Stamatiadi
Mr. Henderson,
What the New GM needs more than anything, is a fanclub.
Please keep a careful eye on the upcoming Subaru/Toyota joint venture “086A”. This will be a monumental seller, and will show clearly why GM still doesn’t “get it”. You don’t get the fact that the people who build brand loyalty are young, and without much money. That is exactly why Honda cars are so popular — because kids could actually buy them and race them!
Not too many enthusiasts can afford a corvette.
Everyone i know wants what GM does not offer… a 2600lb rear wheel drive car with “spirit”. A “driver’s car”. A hard-top 2+2 version of Honda’s S2000 for less than $25k. And they don’t care who makes it.
Subaru/Toyota are about to offer it, and every single person i know plans to buy one. I may end up with 2 of them. It’s going to sell so well, that it will have books and magazines dedicated to it. It will attract kids into the Subaru and Toyota fanclub, and ensure later sales of larger cars for their brands.
I would love to buy an American car, from an American brand, but you haven’t built a car i like for a long time. You build me a 2600lb (no heavier!) rear-wheel drive 2+2 with some character, and you can pretty much guarantee yourself a new fanclub — and that’s exactly what every car brand needs.
Fritz – Maybe you culd ask Bob Lutz to take a look at my website, strongware.com/dragon and consider making flying cars. Back when I was working at Cadillac, I dreamed about having a flying Cadillac. Well, it took a half century, but I think it’ll work soon.
Dear Fritz:
I was a GM customer long ago but when the power assist boost brake went out 3 times and Roger Smith sent me a form letter thanking me for being a customer (that was his response to my complaint about the problem) I moved on and haven’t bought anything from GM in 25 years.
Then again, GM produced a lovely electric car, the EV-1 and the company’s response was that there were no customers and GM crushed nearly all of them. Despite, the fact that EV 1 customers were willing to purchase their leased vehicles.
Now you’ve got the Volt coming and I saw an article in the newspaper that it would be priced at 40K. Who’s going to buy it? Probably not many customers. If this is how GM will continue to do business, you might as well fold up now.
If you can manufacture quality vehicles at a reasonable price that last- and really stand behind the product- then GM can thrive in the future. Otherwise, it will be more of the same with declinign market share and eventually complete bankruptcy.
I wish you the best and feel for the workers who have been let down by an obtuse management year after year. The blame is not the workers but the leadership which has turned a blind eye to what makes a company and its products great.
FRITZ: This makes a lot of sense. Please consider. It is hard to respect the management team of General Motors that has led the company for the past 10 years, with Rick Wagoner as chairman and CEO. If the company never emerges from bankruptcy, or emerges as a very weak and non-competitive company, the blame should be placed on that team. However, as with most bankruptcies, the prior history of a company is usually forgotten. The future for GM is very bleak, however, particularly because the U.S. government is now the largest shareholder in the company. The blame for that transaction lies squarely on the shoulders of Rick Wagoner.
General Motors Bankruptcy — A Symbol
The General Motors bankruptcy receives a lot of press because of its symbolic nature.
Having survived the Great Depression of the 1930s, the company had come to represent the resilience of American industry. After World War II, GM enjoyed a true global dominance that few U.S. firms have ever experienced (with the possible exception of Microsoft). Furthermore, GM and its chain of suppliers for many decades represented a significant portion of the U.S. economy.
In fact, GM was such a central part of the U.S. economy that when GM president Charles Wilson was being confirmed as Secretary of Defense in 1953, he stated he felt “what was good for the country was good for General Motors and vice versa.” It is this exalted position of corporate prominence that makes the story so compelling.
The symbolic nature of the fall of General Motors tends to draw all kinds of broader sweeping implications today, however.
For example, some view GM’s fall as a harbinger of the decline of U.S. dominance of the global economy. Others view it as a signal that capitalism simply cannot last. Still others view it as a sign that the golden age of being able to have a good job and secure middle class existence with only a high school education are over.
Very few view the GM bankruptcy as simply the failure of a major U.S. company, however. This is despite the fact that many major U.S. companies have disappeared in recent times. Xerox, Polaroid, Digital Equipment Corporation, Sears Roebuck, Maytag, and even AT&T (whose name only persists as a result of acquisition by SBC) are all major U.S. companies that did not last.
Why is GM different?
The primary reason is that the government is now the major shareholder, as a result of the Wagoner management team accepting federal assistance in December 2008.
What the Bankruptcy Really Means
Now that the bankruptcy filing has been made, with the U.S. government as a major shareholder, several things have become clear:
The federal money loaned to GM last December was simply wasted — it only postponed things.
The U.S. government — willingly or unwillingly — is now involved in shaping the future of the U.S. auto industry.
The United Auto Workers powerful political influence is going to be diminished, with uncertain ramifications.
While GM might be able to drive car costs down, the U.S. taxpayers will be paying a “hidden” tax on GM cars for years to come, whether that taxpayer buys a GM car or not.
The irony of all of this is that the U.S. government bailout last December was entirely unnecessary.
If Rick Wagoner had filed for bankruptcy last December, before any federal funds were provided, the company might have much greater flexibility to shape a restructuring plan today.
The GM Restructuring Plan of February 2009
As part of the government loans made to GM in December 2008, GM was required to produce a restructuring plan that showed how the company would repay the government loans and refocus the company to become profitable.
We ridiculed this plan in an Ahead of the Curve column of March 6, 2009, entitled “GM Restructuring Plan is Baffling.”
Frankly, that plan looked like a completely unrealistic vision where GM would somehow become so effective in the weakest parts of its business that it would show tremendous reversal of its declining sales figures almost immediately. Rather than focusing on its strengths, the light truck and SUV marketplace, GM planned to become very strong in small, fuel-efficient vehicles in an almost overnight fashion.
Apparently, the government agreed with our assessment of GM’s plan, as Rick Wagoner was asked to resign in March, with the plan being rejected.
In less than two months on the job, new CEO Fritz Henderson realized that bankruptcy was the only real possible solution to GM’s problems.
What Happens Now?
Today, with the government’s dominant role as a claimant in bankruptcy court, GM’s future lies with how the Obama administration decides to act during the bankruptcy restructuring proceedings. Although President Obama has stated that he does not want to run an automobile company, as the strongest voice in bankruptcy court, the government’s role in shaping the future of GM is unavoidable.
Unfortunately, we tend to believe that no restructuring plan for GM will be approved by shareholders (meaning the federal government) or a bankruptcy judge unless such a plan shows a new GM that focuses on “social objectives” instead of allowing GM to respond to market demands.
For example, GM is extremely strong in the pickup truck, SUV, and commercial trucking market. It is very competitive in the smaller, but lucrative, sports car market, where Corvettes and Pontiac Solstices have shown great success.
If GM were truly driven only by market demand, it would seem logical to simply abandon the small-car, fuel-efficient market where it struggles and the hybrid and alternative fuel vehicle where it has almost no presence.
Instead, a purely business driven plan would focus heavily on the light truck and SUV market, with research conducted in the fuel-cell vehicle segment. Fuel cells are almost certainly the inevitable future for the auto industry. Any research and investment in intermediate steps such as hybrid or bio-fuel vehicles is money that cannot be invested in fuel-cell research.
Such a plan of using GM’s current strengths to become profitable and investing only in what is the likely future of the automobile industry is what we think a purely business-oriented approach to GM’s future would produce.
Unfortunately, we also think it is very unlikely that such a plan would have much appeal to the federal government, despite the fact that it is the most likely path toward GM repaying its debts to the U.S. taxpayer.
Instead, it seems far more likely that political influence from Congress and the Obama administration would fight against such a “play your strengths” agenda.
What type of agenda the largest GM shareholder will pursue in shaping the future of GM is certainly unclear at the moment, but if social objectives become more important than business objectives, it is likely to be as weak a plan as the one that Rick Wagoner submitted in February.
And if the reshaped GM that emerges from bankruptcy court does not succeed in whatever plan it adopts, the blame is likely to rest on those in charge of executing the plan, not those who shaped the strategy during bankruptcy.
The real blame for GM’s difficulties, however, if it never truly recovers from this restructuring, will lie with the Rick Wagoner management team.
That team did little to alter the company’s weakening position over the past decade, then accepted federal bailout money instead of filing for bankruptcy in December, and then submitted a restructuring plan that seemed designed to appease Congress, not address real issues of demand and market conditions.
That is where the real blame for GM’s demise should lie, but in five years, whether GM is successful or not, few will remember
I’m a Gm van owner and want the company to succeed. Regards, Dave Gillis
How long does it take to get a comment posted on this website? I wrote a comment at least 4 hrs. ago, and haven’t seen it. I didn’t use any expletives(though in regard to theft of taxpayer monies to UAW, I thought ugly things). What’s the “hang-up”?
Mr. Henderson,
My family and I in the past have been 100% loyal to GM products. However, we have sat by and watched the GM engineers make one blunder after another. If I could start my own car company I would do several things different. First of all, I would build upon a good design. In other words dont fix it if it aint broken!! I would hate to guess what you guys have wasted in senseless retooling over the past few years, but you vehicle disigns have become very unpleasing to the eye so to speak. You dont have to change the total design every four years. Are you listening. I just watched you on Glenn Beck with Fox News and you stated that you want the consumer to be first. How can you do that when your ugly, poor designed vehicles are $30,000 more than they should be. Dont get me wrong, I am all for moving forward with progress. But look at other industries who have built upon a product and actually sold more volume because they could get the cost so low that it was feasible for consumers to purchase. Secondly, make a product that is simple to work on and easy to get parts. Parts that are reasonable to buy. In my pretend car company we would have designs that would allow an owner to replace an engine, transmission, fuel pump, clutch all with ease. the front end should completely tilt forward (like a conventional semi truck) and the entire body should have the ability to be unbolted quickly and hinge backwards in order to access the drivetrain. I as a consumer I don’t want a completely new drive train every 3 years that have “design flaws”. Just imagine how you could undercut your competitors. I am smart enough to realize that people will buy your product if it is dependable and the price is reasonable. I will not spend $40,000+ on a new pick-up truck that is over designed and expensive to maintain. You should start buy firing your head engineering people and hire more with a Henry Ford Model “T” mentality! Good Luck
Since June 3 questions and comments have been flowing in to this blog, but not an answer from you, Fritz. Why?
When will I be able to buy a 4 passenger car from you that gets 50 MPG?
Sincerely,
Peter
Dear Mr. Henderson,
I have invested a large of my savings in Old GM bonds and, thus, I have a large personal
interest in New GM’s future under your leadership.
Please, do not deceipt me.
FBG
I think gm goofed when they stopped making the money car, buick la sabre, i owned several of them and you could not find a better car anywhere, good ride, good gas milage, great peforamance, i don’t think any co. can compete with it for all around family car. bring it back and see what happens to the sales market. i bought a toyota because they quit making it, but the buick is far out in front of it. Lester Edwards
Mr Henderson.
I would like to know how you will convince to purchase a new CTS? I have a 2002 dhs that has absolutely been a nightmare. I have owned 3 cadillacs and I would like to know how a car such as mine gets bought back when they no it is a bad egg and then sells the car again to a unsuspecting person like me telling me the car is fine and nothing is wrong with it.At 19,000 miles they put a new engine in this car and this car is repeat offender as far as falling apart and it is the same parts over and over again.When I called the attorney general he could not believe what he was hearing about this car and said I should definatetly hire an attorney on this matter.The dealer that sold me this car said that I was aware of the problems the car had when I purchased it and by the way it was stated that the service engine light kept coming on and that is what it said on the title.I guess my husband and I were very naive to think that they would be truthful to us about this car and then recently I decided to pay for a car fax and I was schocked to find out all about this bad egg.How do you expect to stay in business when the repeat offenders get bought and sold again.No one wants help me with this situation,Not even Cadillac a customer service guy names DJ August asked me if I would be happy if you guys purchased the car back and I said of course but you know that did not happen.So I’am still stuck with this piece of I do not know what to call it. Please Fritz call me and help me resolve this problem before I buy a new Toyota Avalon.I have wanted to trade this car in but I have been offered 5,000.00 dollars for a 2002 dhs with 46,785 miles on it and that is just not right…No one in there right mind will bye this car from me after they look up the car fax. So GM what do you suggest I do with this thing
How can GM have the nerve to give Wagner a 10 million pension. This is insane, he made about 65 million in the last 15 years. Whats the problem?, why should us tax-payers give him 10 million? It should be reduced by 99.9999%. I am supposed to worry about a millionaire who helped drive GM into the ground. Maybe MR. Wagner should drive to Janesville and give his 10 million to all the unemployed up there. Congrats I will never buy a GM vehicle again. And will encourage annyone and everyone I know to not buy a GM vehicle. I HOPE I GET A REPLY.
I invested in 1,000 shares of GM Preferred shares as a way to save for my next car. Now that you’ve declared bankruptcy and my shares are worthless, I’ll not be buying that new GM car I’d planned on.
really coool
Wonder why people won’t buy your cars..?.Take our Saturn…pretty good car…basicly a rebadged opel..
The shift linkage fell apart…just needed a piddly bushing…dealer won’t sell bushing…will sell you a $200+ shift cable assembly…I got the bushing aftermarket for a few bucks..
Lexus lost me forever as a customer over a $5 connector…would only sell a $1500 engine wiring harness…for a lousey alternator connector..that I got off a wrecked toyota for $5…
I can buy any car I want to for cash…I can also not buy any car I want to…
You deserve to be where you are..
How can we look at you (GM) as a new GM when you are playing the same old games. i.e. SPO Jacksonville, Fla. a parts distributor handling the large area of the southeast to the southern most tip of Florida. The SPO is consistently producing some of the best numbers in the industry, both in production as well as customer satisfaction. Dealer surveys compiled by GM itself has shown SPO Jacksonville to be the leader in the industry. So what does the (New GM) do? Slate SPO JAX to close, and it’s region be covered by the struggling SPO Charlotte. Let’s take a look @ this. SPO Charlotte, whose numbers as well as dealer satisfaction ratings are abysmal, are going to better our business by creating another, lets say 100mil dollars a month worth of dissatisfied dealers than they already do. Make there current dealers as well as the Florida dealers wait even longer than they do to receive their parts, anger more customers who are waiting on their vehicles. No one makes out well in this idea but the rental car industry. Help me understand, I have crunched the numbers every which way, and I cannot find any logic in this at all. There is absolutely no cost savings in closing an SPO with 50 employees and attempting to service their region from 450 miles north.