The New GM: We’re Ready for the Challenge
By Fritz Henderson
GM President and CEO
Last night, we took another big step toward the creation of an independent new GM when we received court approval for the sale of substantially all of GM’s assets to an entity funded by the U.S. Department of the Treasury. We expect the sale to close as soon as possible after the appeal process is exhausted later this week, and for the new GM to be operational and fully competitive, with an exciting line of new products, a smaller and more focused brand portfolio, and a clear mission to put the customer first in everything we do.
Our focus in recent weeks has been on creating a new company from the strongest parts of the old GM, and on doing it with transparency and speed. This has been an especially challenging period, and we’ve had to make very difficult decisions to address some of the issues that have plagued our business for decades. We have, in effect, been fixing our bike while we ride it. Now the repair work is almost done, and we’re steering the company back onto a path to viability and success. We’re ready for the challenge, and prepared to ride as fast as we can.
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Please show us that GM has truly learned and changed. No excuses and no more base-level Buicks with wheel covers and cloth seats. Buick should be upscale, differentiated from Chevrolet! Speaking of Buick, why haven’t there been any features here about the new LaCrosse, now that it’s available? You’ve given plenty of space in the last couple weeks to the Chevy Volt, which won’t be out for quite a while and supposedly won’t make you any money anyway. Now’s the time to support the Buick LaCrosse!
Couple questions on the naming scheme:
- Is “General Motors Company” going to be the now referred to name, or will “General Motors” still be used in advertising?
- On the above if “GMC” is going to be the name used to advertise vehicles, is there a new GMC badge that will also accompany newly created vehicles?
- Should we expect to see a new “GMC” logo to replace the blue and silver “GM” logo currently used?
Thanks and congratulations to GM on the approval of the sale and the hardwork involved by all.
Josh E. Oliver
TheGMSource.com
In many ways I believe what you’ve written above because after going through the most traumatic period in GM’s history, its clear that success in the future is absolutely necessary. Thus the new product of GM must deliver. Here’s to the new GM and hopefully we will see the results in new and outstanding vehicles.
Congrats! My new Camaro is on its way and I can’t wait to try out the new Equinox.
“substantially all of GM’s assets”
Does this mean GM will be fully owned by the US Department of Treasury?
“This has been an especially challenging period, and we’ve had to make very difficult decisions to address some of the issues that have plagued our business for decades”
Some of the issues? what about the rest of them?
It will be very interesting to see just how much things change under the new structure. It should be a good thing for the entire company in the long run.
Detroit needs a better branding strategy in place. It’s not just about the cars anymore–yes, there were some quality issues in the past but Cadillac and Buick are building good cars now and even Chevy has managed to turn the mediocre Malibu into a home run. Changing people’s perceptions is the problem, and that starts with a strong design language and integrated branding strategy. Take a look at Mini Cooper. It just recently ranked at the bottom of the JD Powers survey, yet it has the highest resale value of any car and sales are down 20 percent as opposed to the 37 percent the industry is seeing. There are fan clubs and collectors and people love it. Why? Great design, great branding. Enough with the bland styling like the Chevy Cobalt and claims that people don’t want Euro-spec models. The world is a smaller place, and it’s just mind boggling why GM sells better car models overseas than in the US. Give us the good stuff, Fritz. Come up with a trendsetter like the MINI. And throw in a diesel version that will top 50 mpg. You do that and GM will be back with a vengeance.
Congrats on running through the government spanking machine.
Now please show us how you’ll command market share with improvements to vehicles like the Corvette, the Cadillac CTS, and the Malibu, while managing government “oversight” so that you don’t become a repeat of what happened to British Leyland in the 1980’s.
I’m ready to vote with my wallet, as long as you’re not selling balsa-wood clown cars and electric rickshaws.
“Does this mean GM will be fully owned by the US Department of Treasury?”
Nate:
Do you ever read any general news about GM? The ownership breakdown has been covered EXTENSIVELY. Why not do some research before posting questions that won’t be answered here anyway? Treasury will own about 60% of the company initially.
I am truly worried about the changes that are coming for GMC. I have been a lifetime driver of GMC except for a short period of time that I drove a Ford Thunderchicken. So far in my driving career I have driven 3 different S-10’s, a 2500 4×4 Chevy Silverado, a beautiful 2002 Chevy Monte Carlo, and now an awesome 2007 GMC Sierra 4×4 truck. I have had the truck for 2 years 2 months and have close to 70k miles on it all ready. I love this truck and I am 120 % happy with my choice of a GM vehicle. I can’t wait for the opportunity to purchase a Volt. I hope GMC gets out from under the government money quick.
I hope that GM is truly able to change. My sense is that the culture is still dominated by change adverse “insiders”. Here’s hoping you look hard for fresh, experienced, non-automotive professionals to create a truly new GM culture.
I have witnessed a lot of change related posturing and rhetoric for years. Three years ago I alienated many colleagues when I declared that the only survival for GM was bankruptcy. My quote was “the sooner GM goes bankrupt, the better.” With the current administration in Washington, GM has been given a gift of a second chance. Please don’t mess it up.
Congratulations on a job well done thus far.
Through cooperation and teamwork you have made large accomplishments in a small amount of time.
Now the hard work begins.
It will take years to win back the trust and confidence of the consumer currently enjoyed by your competition but I have no doubt that it will be done.
In the April 2009 issue of Consumer Reports there is an article titled “Who makes the best cars?” which contains a page: “Automaker report cards” which ranks the automakers by overall score.
Of the 15 automakers listed GM is second to the last. Not for long.
Concentrate on eliminating the lows but never lose sight of the highs. The recent slippage of the reliability of some models is unacceptable. Reliability must never be an issue.
As a team General Motors will again be the best in the world.
Your future is in your hands.
Fritz, thank you for all you are doing. You are continuing the fine work that Rick Waggoner started, with worldwide platforms and just outstanding vehicles replacing “ordinary” vehicles. My 2008 Malibu LTZ has been just a joy to drive, and the positive comments on how it looks continues to this day. The second generation Cadillac CTS is a masterpiece and GM has been rewarded with a much improved market share with it. Your just fantastic Lambda crossovers have a achieved a 50% market share in the 8 seat crossover segment. You have improved mileage of your vehicles along the way to now claim more industry leading mileage vehicles than any other manufacturer. . . with more on the way. Like the brand new 2010 Chevy Equinox and GMC Terrain, getting 32 MPG HWY. I got to look and drive the Equinox and look forward to downsizing from my Acura MDX to one in the near future.
All the work that has been done over the last few years to lower costs will pay off soon. The end of the tunnel is near. William Holstein says in his book that GM, by 2010 will be making $5,000 more per vehicle than just 6 years ago. Congratulations.
I have every confidence that, if GM continues to hit homeruns on the product front, sales will follow, as they already are. With your now profitable sales, I look forward to the day that private stockholders own GM again.
Good luck to you, sir.
The government owns GM shares, the UAW owns GM shares, bondholders had their arms twisted to trade bonds for GM shares–what about other “non-aligned” shareholders who owned GM prior to the bankruptcy? The swirling rumors are completely self-serving to particular groups. I would like to see some indication either from the court, from Treasury or from GM that all shareholders will see their fates and fortunes rise and fall with General Motors, and not be swept aside by the vagaries of the bankruptcy process. Can you comment? Thank you.
Impressed with GM’s newest products: Camaro, Malibu, CTS, STS, DTS, Acadia, Enclave, 2010 LaCrosse. These are cars people want to buy.
GM has been doing a good job doing good media interviews lately. People like it when GM execs do interviews on their favorite shows. Keep it up, let them know you care and take the opportunity to give them a sneak peak at an exciting style or news.
Polls say by a 3 to 1 margin people are may consider an American car.
GM gained reputation from movies like Matrix and Transformers and high profile auto shows at NAIAS with celebrities. When GM hears its enthusiasts it wins almost everytime. The celebrity status of the NAIAS really got viewers attention.
These must be rough times for the people of GM. The enthusiasts, we’re fightin for ya. Millions of people read GM’s website (they know).
We see a number of garages which have a foreign vehicle and a new American vehicle parked beside it. This shows that people can be persuaded.
Retail turn over: Regarding luxury sport and affordable luxury sport segments, what are GM’s plans to inspire people to trade. Many buyers have the money and would trade more often it GM inspired them on style, performance, as well as fuel economy for some. These are customer GM should target.
Acadia owners might like to have an extra stylish luxury sport sedan, something like the STS but a bit more trunk space and a fold down trunk like the Mercury Milan. GM is missing tons of luxury sport sedan and affordable luxury sport sedan business.
Offer a 4 cyclinder CTS or something like it. Don’t let the Lexus IS and the like take all the 4 cylinder customers in the luxury segment. At the same time, the main reason someone buys a 6 is that they don’t want a 4 and they can’t find an 8, so they wait and wait. Let’s see a fuel efficient V-8, 30+ on the EPA, so GM can best these V-6 makers. A fuel efficient V-8 is what will win the conquest sales in this luxury sport segment. GM can do it, why don’t we see it?
I’ve seen an 07 corvette convertable get 34 mpg highway. How is it that GM is not getting the credit? GM is not getting credit for its better highway mileage on EPA tests. The cash for clunkers bill didn’t recognize GM’s advantage in highway fuel efficiency even though Buick and Cadillac get better highway mpg than Lexus. People spend more time on highways and freeways in both metro areas and rural, so how does the EPA get it wrong?
GM buyers expect more. They are willing to wait out a design cycle if the car designers don’t deliver, but some won’t keep waiting, some start looking outside of GM for a style. We believe GM can make V-8 engines that get even better fuel economy and put them in stylish sedans. Yes, the STS is a stylish sedan, but GM needs at least one more alternative look. Impress the buying public who wants luxury, performance, and technology. Keep them at GM.
When GM puts an STS on the lot every single one should come with the wood trim package and sun roof. White Diamond, Sky Blue metalic, Gold Mist, burgandy, these are the colors people want to buy. Very few black seats in the hot climates like Florida, they want cashmere leather or tan.
On quality perception, people equate the term quality it seems with technology, design, and style. A quality report just tells them what they want to hear, eases their concerns, or reinforces their choice about a style they already like.
Please consider putting the customer first in planning ownership of shares in the new General Motors. You can form new capital by marketing shares directly to customers and your other communities, rather than selling to an underwriting syndicate for distribution to hedge funds, other institutional investors and speculators. You could coordinate primary offerings with sales of shares acquired by the Treasury-funded entity.
Best wishes in your endeavors for General Motors.
Mr. Henderson,
I am appalled at the greed of dealers regarding the 2010 Camaro. I put $1000 down to order a 2010 Camaro just as you were announcing GM’s bankruptcy. At the time of my order I asked the Salesman if there were any incentives on the Camaro, he knew of none.
I did my own due diligence, found and qualified for the Credit Union Member discount only to be told that Bayer Motors in Comanche, Texas would not honor it on the Camaro. They would however honor the credit union member discount on any other model.
This lack of customer service is precisely why I have been a loyal Acura owner for the past 22-years. It makes very little sense to offer a corporate discount and then give your dealers the choice to honor it or not.
When you offer a corporate discount such as the Credit Union Member discount it should be mandatory that dealers honor it, even on the 2010 Camaro. Otherwise it is not worth the paper it is printed on.
First let me say I hope GM succeeds. I am rather doubtful though.
While I understand GM needs fewer dealers flouting state laws to get it done is the wrong approach. I know of several dealers that do a good job and are profitable that are being cut out with the wind down agreements. you keep saying that 99% of your dealers have agreed to the agreement. While technically that is true, what you don’t say is they had no choice. You may as well have put a gun to their heads and said sign or we will shoot. This is very immoral. Dealers do not cost you, they pay their own way, I have seen their open accounts.
In our town I know most customers are not going to drive 40 miles to buy a Cadillac when they can stay in town and purchase a Lincoln, BMW, Mercedes or Acura. THis dealer goes head to head with these brands every week and wins the sale in most cases.
Cutting dealers wil result in fewer sales, I hope someone wakes up real soon.
Mr Henderson,
Here’s hoping that GM is truly looking to reinvent itself and for the better. There is no excuse for GM to be in (or near) last place in the numerous supplier surveys, reliability reports, owner satisfaction surveys and residual vehicle values. For years you have buried your collective heads in the sand and blamed it on the media for not giving you a break. You have alienated a generation with lies, marketing spin and excuses, and the economy just hastened the inevitable due to these very poor business decisions. It’s time for GM to step up without the spin, and truly put the American taxpayer dollars to good use. It’s time you stand by the dealers and suppliers that have supported you through all this mess instead of turning a cold shoulder (as GM has done to countless others that they themselves bankrupted). It’s time to design and engineer in winning performance and creating a winning strategy for great cars and trucks – I mean for real – and not letting the beancounters water down and cheapen every last decision. No GM buyer has ever made a decision that had increased sales results, performance enhancements, reliability improvements or the consumer top off mind. They are only rewarded by making decisions that lower the cost – and lower is better, regardless of the impact on the sales success, vehicle performance, perceived cheapness, squeaks and rattles – you know what I mean. Good quality costs money, great quality even more. When “good enough” is no longer good enough for GM, then you’ll be on your way. Not idle words either – you need to truly tear down and remove the rot from your core. It’s hard work, but it will be rewarding.
As far as I can tell, at this point nothing has changed….Old GM is the same as new GM, just less market share. Same tired tricks, same Bo inspired beat the suppliers games…It starts with you Fritz, on your watch. Your move – make it count. It’s time.
Sincerely, Sandy
Great Job! but i still have only put about 99% of my complete faith back in GM.
I would love to see you guys continue putting out great product, i love the new Camaro and Equinox by the way, i just have a few issues. With Pontiac being liquidated, will you guys put out the G8 as another product, it would just be awful for you guys to lose such a great product like that in the U.S., I wanted to get one next year, but now i’m not sure, i can’t afford the Cadillac CTS, and the Chevrolet Camaro is great, but i need a sedan.
With you guys waiting till 2013 to bring out a new Impala, I would personally hate to see an Epsilon II based Impala, with you guys putting out the refreshed Zeta lineup for 2013(how convenient) i would love to see a Zeta based Impala, that way you would have a better competitor to the Dodge Charger/Chrysler 300C, give it an AWD option, and Direct-Injection V6 engines, and Active Fuel Management-equipped V8’s, a diesel would definatley help with CAFE looming.
Just look at these facts, you wan’t better fuel economy for the consumer, well weight contributes a lot to fuel economy, the current Zeta based G8 weighs 4,000 pounds, and the next generation Zeta will probably weigh less. As for an Epsilon II based Impala, i’ll use the 2010 Buick Lacrosse as an example, it’s on Epsilon II, has a 3 inch shorter wheelbase, and 2 inch thinner track than the G8, yet weighs also 4,000 pounds.
My suggestion, make the 2013 Impala rear wheel drive(with AWD option) use the better, lighter chassis, and build it alongside the new Zeta based Camaro in Oshawa to lower cost’s
But besides that, you all are so far doing a great job.
Is the Pontiac brand going to be grouped with “old GM” and liquidated, or will “new GM” retain the rights to it?
In some ways, I’d hate to see someone else get the Pontiac brand, but then again, if it means there might be future Pontiacs, maybe it isn’t so bad.
Changing the Aveo to the Chevy Viva-ugh
Changing the Cobalt to the Cruze-ugh
If this is the ‘new’ GM, changing names to god awful ones then you will need a lot of luck.
Embarrassing.
As a long time GM owner (Trans Am’s X 2, Camaros X 3, Cadillac SRX, Corvette) I am skeptical of the “New GM”. Looks to me like the same old GM management with the same old plans. It will be a long time before I even look at a GM car when this is a company that writes off “old liabilities” for the cars they built previously. A company largely owned by the US Gov’t and the Unions both of whom also bear some culpability for the current automobile mess does not engender a great deal of faith in me. This is a company that cannot see the benefits of the Pontiac division as a niche model. Any belief I have had in “Buy American” is evapourating and it is time to move on to other brands.
Great News Fritz!!
The best thing about the was GM has progressed through all this is that it has NOT lost its passion for cars and its product focus.
My Favorite GM Things are:
1 The Chevrolet Camaro
2 The Record breaking sales for the Pontiac G8 (face it: you cant kill this car)
3 The Cadillac CTS (and the innovative CTS Coupe & Sportwagon)
4 The variety of advanced propulsion technologies for the future
5 The balance of passion and responsibility (fuel efficient cars that are desirable and within reach)
GM is unique – few other car makers have shown they can combine desirable cars with efficiency and affordability.
BMW has desirability & efficiency but lacks affordability
Toyota has affordability and efficiency but lacks desirability
This is GM’s strength and its way back into the hearts and minds.
Mr. Henderson, Congratulations! This is a good start, but lot of work needs to be done…
First – U have an excellent Engineering and Design Org. Do not reduce them to bare bones. They may already have morale/enthusiasm issues with these cuts. You need to empower them further.
Second – As you do reorganization in New GM and plan to get rid of 5000 white collar employess, Here is a simple suggestion. See if you/HR agrees: Have 10-12 to 1 ratio between employee to manager all the way up to top level. You will have no more than 5 to 6 levels between you and lowest worker bee. That also means U will have 10 to 12 Executives reporting to you – nothing wrong in it. Just do it ! Decision making will be fast and there will be some risk taking. Again do not fire your Engineers, Hybrid Engineers or Designers. You need them. New GM needs New blood in upper mgmt. U can’t use all Old GM execs. Get some dynamic execs from BMW, M-Benz, and Nissan.
Third – Reduce your IT, Purchasing and Marketing org. It seems you have too much FAT there.
Fourth – There is nothing wrong in preaching “Buy American”. If you can’t say it in media interviews – send LUTZ ! I am sick and tired of Flag Waving – Red Blooded – Hypocritical Americans buying foreign cars. Your message should be “Given a Choice Americans Shoud Buy American Goods”.
Note that US gov’t can’t preach ‘buy American” due to international trade aggrements, but Americans can change it simply by buying American goods, just like what Japanese do. They simply buy Japanese – irrespective of free market. Americans need to wake up to this.
Now about your products – Chevy Eqnx looks great, Cruze looks OK, Buick Lacross (new) Looks great and so is new CTS wagon and SRX. Your engineering and design team has done the work, now MARKET them effectively. Your marketing Sucks to be honest. Also simplify the option packages. Increase Hybrid content in all vehicle.
I certainly hope you are reading or LUTZ is reading or your HR folks are reading this, so someone can make some quick decisions and get you going….Fast.
Remember, New GM is smaller and small enough where if you fail again you are too small to be bailed out by the gov’t.
Just saw the latest Buick Enclave television ad this weekend. If that’s an example of the “New GM” there is no hope. What’s up with this artsy-fartsy, avant-garde, director-type dude telling us to buy an Enclave?
Whoever in your marketing department decided on that commercial has lost complete touch with your potential consumers.
Why can’t the ad instead tell us the following:
1. How well the car is made.
2. How durable it is
3. What good value it would be for the money
4. What features the Enclave offers that we couldn’t buy elsewhere
5. That it is made in America by Americans
Marta:
I no dealer expert but I’m pretty sure they have the option of not participating in any incentive programs offered by manufacturers. Typically you will see or hear this in the fine print of an ad for an incentive. I don’t believe GM can force a dealer to participate in any program.
GMs problem will be to get the “old” GM customers to buy their cars after these customers lost a lot of their retirement money in the GM stock and bonds. these people bought lots of GM cars and trucks and i bet they are not too happy right now.
The New GM: Born on the 4th of July weekend.
You heard it here first.
“I don’t believe GM can force a dealer to participate in any program.”
That is exactly why GM has to get a handle on their dealer network. They need someone like Bob Lutz who can take charge of the dealer network, and start taking names and kicking a#&. Until GM can get their dealer network straightened out there is no hope.
In my opinion, GM’s dealers are more responsible for GM’s downfall than the product.
Yes Marta, Sheth is right. I read many posts over the web that point complaint at the manufacturer over dealer markups. The manufacturer has zero and I mean zero control over this. If they did it would be price fixing wich is illegal in the USA. I do get tired of seeing GM get it on the chin for this when it is not for them to control anymore than they have some type of control over dealer salesmen.
Its like blaming nintendo when wallmart jacked the price of wii’s. GM dosen’t own the dealers anymore than nintendo owns wallmart.
Ethan:
Lutz was a product guy, not a guy who would beat up on dealerships. GM cannot tell dealers what to do. They are phasing out weaker dealers to improve the strength of the remaining dealers. In the long run I think you will see better service at their dealers but GM does not control these businesses. You seemed to have missed my point: NO manufacturer can force a dealer to offer a discount. When gas was expensive dealers were selling hybrids for premium prices because the demand was there. Once demand slacks off for the Camaro the markups will disappear. I cannot believe people are unwilling to wait a few months if they are that unhappy with the prices dealers are asking.
“The manufacturer has zero and I mean zero control over this.”
General Motors could sell cars using the Internet.
When I buy a computer I have a choice of going to a dealer’s store or ordering online. When I buy an airline ticket I have a choice of going to a travel agent, an airline office, or ordering online. When I buy a book I can go to my Borders, order from Amazon, or order directly from the author.
Why does it have to be different for a carmaker?
Dennis,
But GM’s dealers only markup what they need to run the way they want to be run. GM has control over base product price that dealers add to. Additionally some very nice dealers probably have to pay for overhead out of product markup. So if GM wants to be competitive they need to figure out how to keep the dealer markups reasonable so the dealer wants to be a GM dealer AND still sell a car competitively.
Gunter
you and Nate need to go read some state franchise laws. The manufacturers hands are so tied its not even funny. GM has needed to get rid of sorry dealers with poor CSI scores, shoddy sales experiences and the like for years. It simply could not bee done outside of a BK. Its funny now that they have gone and done what needed to be done all the politicians and public is crying out FOUL. The same public and politicians that in the same breath berated Fritz and the ceo of Chrysler for not fixing their business model years ago.(which included a bloated dealer structure and dealer performance issues) You can’t make this stuff up
You can’t have it both ways.
Sheth jones,
I didn’t miss your point, and I know Lutz was a “product guy.”
I know how things are. What I said is how things should be and that they need a take-charge, former Marine like Bob Lutz to turn around their dealer network. If GM is not concerned about improving their dealer network and appointing a “take charge, no prisoners guy” to lead the effort, they are ignoring the biggest part of their problem. If GM can’t force their corporate dealers to meet some minimum standard of performance, the entire model of automobile dealer networks needs to be redesigned starting from a blank sheet of paper. Perhaps that is something Obama’s Auto Task Force should look into.
Incidentally, our newspaper recently interviewed the local Chevy dealer about what changes he would see as GM reorganized their dealers. His reply was that GM was requiring him to build a new facade on his building to meet a corporate design standard. He said absolutely nothing about GM holding him to a higher standard of ethics or customer satisfaction ~ either in his sales department or service department.
In my opinion, GM’s talk of reorganizing their dealers is primarily about appearances, and not about offering a new level of honesty and improved service to consumers.
Slightly off topic here, but why does everyone on here seem to hate the name “Cruze” so much?
I think it’s a great name. Isn’t that what people do in cars– “Cruise?” Cobalt is a color, but not a particularly memorable name. I’ll reserve judgement about the new car itself, but here’s a thumbs up from me on the name “Cruze”. There have been MUCH worse — and at least it’s a name, not a number or string of letters!
Dear Fritz Henderson,
Since the start of your company, my family has owned only GM cars. We have owned Pontiac, Chevrolet, and Oldsmobile over the last 60 years. We are long time customers, and own our own garage where we specialize in GM vehicles. I am deeply disappointed that you have chosen to end Pontiac. Destroying a brand that has brought you so much fortune and history to your company is not something I can allow. If the Pontiac brand is not sold to another company, or your decision to end Pontiac is revoked, I refuse to buy GM ever again. I speak for not only me, but also for the Millions of Pontiac owners and employees. Just as you have suffered a loss in the past by killing Oldsmobile, you will suffer even more now that you have decided to kill Pontiac and the rest of your brands. Turning away the younger generation is NOT the way to so call “reinvent” yourselves, as we are your future. Killing Pontiac is a thought that should have never crossed your mind. It does not matter what the Chinese want, they do not buy American cars. You should listen to what your customers want instead of giving us what we do not want. We want performance with style, big engines and comfortable interiors, amazing handling and the torque to go with it, we want an all around affordable, reliable, heart-pumping car. That car is a Pontiac. Your line up of your “four core brands” is the worst line up in GM’s history. Your GMC division is a rebadge of the Chevrolet division. Stop making cars that the government wants, and give your customers something that would put a smile on their face. Give your customers a Pontiac. Just look at your sales records. Pontiac overpasses all your other brand names. (except for GMC and Chevorlet) Please realize your grave mistake before its too late. I will be writing you personally, as well as going to president Obama. I will see you sometime in the near future Mr. Henderson. And I hope you make the right decision by keeping Pontiac, or you will lose every customer you have ever had.
Have to say I am a GM Lover from way back. All three of my vehicles are GM. (Cadilac CST, Chevy Avalanche, and H2 Hummer) Have been recently shopping around for a new GM product and I will say I am very disappointed in the dealership and how they represent there product. From out right lieing to half truths to poor attitudes is very prominent in all GM dealerships I have visited in my area. If you want to fix what is wrong with GM than look to the dealerships. They are the face of the company and right now they are destroying it. I still plan on my next vehicle being a GM product but I am not looking forward to talking to any dealer. It is just to depressing.
I think what has been most amazing about this entire ordeal is that I have not heard one GM executive – or UAW representative – say that they are embarrassed, or even that they are sorry. Nope, it’s just all been bad luck … OOPSY, these things happen, more money please. This company stole from the US taxpayers and defaulted on its commitments to its bondholders, and yet I have not heard one person in a leadership position go so far as to say they are ashamed of what they have done. It’s not like an apology makes up for screwing over the taxpaying public and the GM creditors, but it might be nice to hear a mugger say they’re sorry after robbing you. This company is a joke.
The sad thing is, leading up to all this, I had decided I wanted my next car to be an American car, coming from GM or Ford. Now, I will still consider Ford – so long as they do not follow GM’s path – but will also consider any foreign manufacturer … but not GM. I may have had to eat the bailout I was forced into giving GM, but I will never buy a GM product so long as I live. I’d encourage everyone else to boycott these crooks as well.
BTW: Gunter Navarro is right on. I don’t know why we even have car dealerships except for test drives. Why not just have ‘test drive centers’ and do all sales direct from the factory over the internet?
Appreciate all the good work Fritz and his immediate team are doing (better late than never).
There is a view however that it will all be wasted if issues of Culture & Politics are not seriously addressed.
Recently I had several discussions with non-US employees returning from a US assignment and US employees about to return home. They are generally apalled with the culture within our parent organisation. Specific issues in no particular order include:
(1) The “BUDDY” system still prevails as a key factor in an individuals career progression, further, there are too many individuals who’s career is limited to managing their career.
(2) Work ethic as a generalisation is very poor at many levels
(3) Excessive job/function demacation and little or no accountability within even the narrowest of corridors
(4) Seriously mistaken belief that GM US practice/processes equals GM/World best practice/processes
(5) Upward channels of communication are fiercely “controlled” by management
(6) Little or no toleration of any form of quality decent.
I’m sure there are many more.
Goodluck
Mr. Henderson,
As a resident of Canton, MI, and son of a former GM employee, I hold a strong loyalty and admiration for the company. I truly hope all the negative aspects of GM will finally be buried, and I have faith in the future.
With that said, I think you know just as well as I do that the Pontiac G8 absolutely needs to live on as a Chevy or Buick (Buick needs to diversify its lineup if it wants to target a younger, more affluent demographic). The car is a flawless beauty that competes with most of the high powered luxury sedans in the market (I know this because I recently traded in my BMW M3 for a G8).
Do General Motors a favor by not killing one of its most coveted vehicles. Thank you and good luck.
Dear Fritz Henderson,
Since the start of your company, my family has owned only GM cars. We have owned Pontiac, Chevrolet, and Oldsmobile over the last 60 years. We are long time customers, and own our own garage where we specialize in GM vehicles. I am deeply disappointed that you have chosen to end Pontiac. Destroying a brand that has brought you so much fortune and history to your company is not something I can allow. If the Pontiac brand is not sold to another company, or your decision to end Pontiac is revoked, I refuse to buy GM ever again. I speak for not only me, but also for the Millions of Pontiac owners and employees. Just as you have suffered a loss in the past by killing Oldsmobile, you will suffer even more now that you have decided to kill Pontiac and the rest of your brands. Turning away the younger generation is NOT the way to so call “reinvent” yourselves, as we are your future. Killing Pontiac is a thought that should have never crossed your mind. It does not matter what the Chinese want, they do not buy American cars. You should listen to what your customers want instead of giving us what we do not want. We want performance with style, big engines and comfortable interiors, amazing handling and the torque to go with it, we want an all around affordable, reliable, heart-pumping car. That car is a Pontiac. Your line up of your “four core brands” is the worst line up in GM’s history. Your GMC division is a rebadge of the Chevrolet division. Stop making cars that the government wants, and give your customers something that would put a smile on their face. Give your customers a Pontiac. Just look at your sales records. Pontiac overpasses all your other brand names. (except for GMC and Chevorlet) Please realize your grave mistake before its too late. I will be writing you personally, as well as going to president Obama. I will see you sometime in the near future Mr. Henderson. And I hope you make the right decision by keeping Pontiac, or you will lose every customer you have ever had.
I just read another tepid review of the Cruze, this time the Holden Cruze. Apparently you are intent on spreading this vomit inducing name across the globe.
GM set out to make this car mediocre from the beginning. Based on the new Delta II architecture, which basically is the same as the Delta architecture-no IRS. The current Civic, Golf, Jetta, and Mazda 3 have it.
Just putting in a more attractive interior doesn’t take away from the fact that this car was farmed out to GMDAT for design, whereas NA design has proven to be far superior-check out the Malibu, Nox, and Traverse. GM NA should have designed this car, along with a Coupe. WTF?
Changing the name to something so idiotic doesn’t help.
This car is shaping up to be one big fat dud. GM can’t out-Corolla the Corolla. People buy that POS because it gets great gas mileage and is very reliable. GM gives us no reason to believe the Cruze will be reliable. So why buy an oddly named, Korean designed, cheaped out, middling handling piece of mediocrity?
Ford is going all out on every single car they produce. The next Focus is going to blow this thing away.
Pathetic.
I am trying to get ahold of some engineers, I will try to phone tomorrow;
- Gear ratio, hydralic fluid, system pressure, actuators, metal and anyone for new concept engines.
I have a new concept for an engine that doesn’t need gas/fuel of any type. If the concept is good it would be non-limited and would run until the engine dies or something else goes wrong.
I was trying to get the concept to a point to discuss before GM went down the crapper. I had already tried to contact people about re doing the assembly process and design that could have saved GM, at least it would have been a plan to get funding for redesign. None of the dealerships would help me.
‘
my home number is (843) 797-5150
Gunter:
There are laws preventing manufacturers from selling directly to consumers. Why do you think there are no “factory stores” in the auto industry? GM cannot sell directly using the internet. It’s not legal.
A. Charles Snow,
Good idea. I should think the Pontiac G8 would do rather well if sold as a Buick Wildcat.
“There are laws preventing manufacturers from selling directly to consumers. Why do you think there are no “factory stores” in the auto industry? GM cannot sell directly using the internet. It’s not legal.”
Sheth jones,
I know about those laws, but laws can change. (That is the primary job of our lawmakers.) We are at a tipping point for the American auto industry, and someone needs to be creative and redesign how those automakers sell cars.
If Apple can sell computers directly to consumers, there is no fundamental reason the laws cannot change to allow GM, Ford, and Chrysler can do the same. The state franchise laws are not one of those inalienable rights the constitution speaks of — they are man made, and men and women can change them.
There should be automobile factory outlet stores as well as factory-owned dealers and service centers. To the American consumer the dealership is the face of the company. It is ludicrous for the company to have so little control over the dealers that represent them. It needs to change. Period.
Chris said: “Slightly off topic here, but why does everyone on here seem to hate the name “Cruze” so much? I think it’s a great name. Isn’t that what people do in cars– “Cruise?” Cobalt is a color, but not a particularly memorable name.”
Chris,
I would guess the reason people dislike the name “Cruze” is that it’s not a good name. You like it, and that’s fine. If we all liked the same things this would be a boring world. But other than the person at GM HQ who decided on that horrible name, I think you are in a minority. I think it’s nothing more than a faddish attempt to prove they are cutting edge and trendy by spelling “cruise” with a “z” instead of the way it’s supposed to be spelled.
It is interesting that the person who decided on the name “Cruze” has never had enough confidence to show himself (or herself) on this blog to defend their choice and explain themselves.
By the way: Cobalt is one of the fundamental chemical elements of the periodic table, with the symbol “Co” and an atomic number of 27. Was never sure why GM picked that name either. You’re probably too young, but almost anyone who grew up in the 1950’s during the Cold War remembers the scary stories about the “Cobalt Bomb” and how it could destroy all life on earth. Cobalt Bomb</b
Fritz,
If you’re ready for the challence, I CHALLENGE you to keep the G8 and make it for Chevrolet. The new Impala. The decision to cease G8 production was obviously made by the “old” GM. You want people to believe that the “new” GM is so different and won’t make those same mistakes?
BUILD THE G8 FOR CHEVY – PUT YOUR MONEY WHERE YOUR MOUTH IS!
What is the new law to ensure the quality of GM cars worldwide. Will GM apply the same quality assurance to whole world. We have seen big issues that happening with Shanghai GM that using every possible way to conceal the design defects(some already lead to death accident). We are really happy to see a new GM but hopefully those who sitting high could have a chance to listen to the end user.
“In my opinion, GM’s talk of reorganizing their dealers is primarily about appearances, and not about offering a new level of honesty and improved service to consumers.”
And what is that opinion based on? GM eliminated dealers with low volume and one reason many dealers were low volume was likely poor service and facilties. You don’t become a STRONG dealer with substandard service and facilities so common sense dictates that GM’s strongest, best equipped dealers with the most loyal followings remain in place. Do you have any substantive proof that GM dealers are worse than average in terms of satisfaction? I’ve found that levels of service are much more related to the individual dealer than to brand unless you are talking about luxury sales. Luxury brands typically have nicer facilities and more conveniences but you get what you pay for.
Gunter:
GM has to operate in the legal enviroment that exists. You cannot change gears and say they SHOULD do something IF it ever becomes legal. Its not legal and it wont be anytime soon. Auto dealers are very powerful as we found out when so much noise was made over the closings. Dealers feel that direct manufacturer sales would put them out of business. Apple estabishes standard prices for all it’s products so having factory stores is about image, not about saving money. It’s a totally different industry.
After being free from all these legal activities GM decided to come up with more powerful strategies with new GM in the market . . . Do you think it is a good decision to take a new start or we can say come up with new strategies in the era of worst world wide crisis To say the word ‘worst’ itself not clear all the meanings but I have some basis to mention this in the post.
From what I understand, the new GM is going to abandon Zeta and Alpha because of weight or expense. I can’t believe Cadillac can compete against Mercedes, BMW and Lexus on the world market with a large XTS on epsilon. You are beginning to sound like the the old preLutz GM when it comes to products and product developement, money already spent. Sure CAFE seems to be your driving force as well as government ownership, but customer satisfaction, products and dealer satisfaction will determine your future and it doesn’t look good on future products or dealer service.
—>>> BUILD THE G8 FOR CHEVY – PUT YOUR MONEY WHERE YOUR MOUTH IS! <<<—
On the contrary Joe D. Build the G8 for Buick and call it the Wildcat.
Looks like I’m not the only one who thinks GM service needs work:
“Have to say I am a GM Lover from way back. All three of my vehicles are GM. (Cadilac CST, Chevy Avalanche, and H2 Hummer) Have been recently shopping around for a new GM product and I will say I am very disappointed in the dealership and how they represent there product. From out right lieing to half truths to poor attitudes is very prominent in all GM dealerships I have visited in my area. If you want to fix what is wrong with GM than look to the dealerships. They are the face of the company and right now they are destroying it. I still plan on my next vehicle being a GM product but I am not looking forward to talking to any dealer. It is just to depressing.”
“BTW: Gunter Navarro is right on. I don’t know why we even have car dealerships except for test drives. Why not just have ‘test drive centers’ and do all sales direct from the factory over the internet?”
Steve G,
Well stated. IRS is needed if nothing more then for customer perception.
Adam D. Woolensack,
As part of the younger generation I am sad to see Pontiac go. I currently am a Pontiac driver. However I really don’t think it makes a difference in the long run. GM will reinvent new product to take the place of Pontiac whether that is from Buick, Chevy, Caddy or some new brand they haven’t invented yet.
“We want performance with style, big engines and comfortable interiors, amazing handling and the torque to go with it, we want an all around affordable, reliable, heart-pumping car. ”
I can’t agree there. I don’t need a big engine, just a quiet car thats fun to drive…
Very well put. Why not just have centers with new cars in various trims, schedule a test drive, if you like it buy it. Then all thats needed is a maintenance center…. Although I suppose that is what dealers do except with poor service and a lot of over head.
Sheth,
Whats the logic behind not selling directly to consumers? Doesn’t make sense to me… any insight?
Andrew Bazalgette, A. Charles Snow,
Buick Wildcat… has a nice ring to it.. I could see a G8 being called that.
Gunter Navarro,
“There should be automobile factory outlet stores as well as factory-owned dealers and service centers. To the American consumer the dealership is the face of the company. It is ludicrous for the company to have so little control over the dealers that represent them. It needs to change. Period.”
You are totally right I can’t see a good reason to not sell direct. A factory run showroom would be great for customers. Speaking of which Recently I was in a shopping mall where there was a Pontiac dealer in the mall. I thought it was neat. but What struck me was how clean their store looked. It reminded me of the Apple store….. Its too bad you can’t mail order a car off the internet…
“A factory run showroom would be great for customers. Speaking of which Recently I was in a shopping mall where there was a Pontiac dealer in the mall. I thought it was neat. but What struck me was how clean their store looked. It reminded me of the Apple store….. Its too bad you can’t mail order a car off the internet…”
Right on Nate, now you’re talking.
That would be a great concept. Go to your local mall to visit the GM-owned store and look at the models on display. If you wanted to test drive one, they would have several parked outside. When you had made a decision, then order-to-build using the Internet — either at the store or from home. (Build-to-order would do away with the vast inventory sitting in the weather on dealer lots, plus allow consumers to buy exactly the car they want.)
When the car needs either scheduled service or unscheduled maintenance, take it to the local GM Service Center, where there would be GM-trained service reps and certified mechanics totally under the control of GM headquarters. (That way, GM could take immediate corrective action when needed.) There is no reason the display store and the service center have to be co-located.
It’s time for a new model of car buying. Memo to Obama’s Auto Task Force: Please look into how cars are sold, and use your influence to make a change happen. A positive change that would benefit American consumers.
To everybody bashing dealers remember dealers are a distribution system that does not cost the manufacturer anything. They invested in the realestate, pay for the training, pay interest to inventory cars, invest money in parts for service, purchase tools and a whole lot more.
In reality if GM tried to sell, ( they have and failed miserably) directly to the consumer it would cost them a lot more money that they do not have now to provide that service to consumers.
From experiance there are as many bad dealers for the other manufacturers as there is for GM. If you look at independent customer satisfaction scores for GM dealers they actually do quite well as compared to other brands dealers.
It’s almost beyind imagination the stupid decisions being made by GM. First Rick, now Fritz. What thought process needs to be in place about the G8? Of Course it should become a Chevy or Buick! Why on earth would you numbskulls not want to keep one of your best reviewed vehicles!?
Make it a Buick Statesman, or Wildcat, or whatever. I would also have kept the Solstice/Sky as a Buick and called it the Buick Bengal.
>It is interesting that the person who decided on the name “Cruze” has never had enough confidence to show himself (or herself) on this blog to defend their choice and explain themselves.<
I’d like to see that myself. I would also like to see that moron get fired. I assume it took a team of morons in marketing to come up with it, so I’d like to see all of them get fired.
They must be the same Algonquin Round Table that came up with the name Viva to replace the Aveo. You just can’t make this stuff up, folks. Just call it the Chevy Metro-city car, cool name.
Chevrolet Viva. My God.
Sheth jones,
Of course GM has to follow the laws that exist — but those franchise laws are manmade and state assemblies, legislatures, and Congress can change them. GM, Ford, and Chrysler have the right to petition and lobby their lawmakers for the needed change. In fact, GM has more than a few lawmakers ready to look out for their interests.
This is an emergency and the very existence of the auto industry as we know it is at stake. They can’t just go along doing things as they’ve always done them and expect to muddle through. It’s time for a new paradigm of how the major automakers sell and service cars.
It should be obvious from the many posts here that most consumers are tired of buying cars from auto dealerships. They are tired of underhanded tactics, shady deal-making, and the false promises auto dealers too often use to take advantage of consumers who may buy a new car only every three to four years.
It’s just as important that GM whip their dealer network into shape as it is they improve product.
Nate:
Manufacturers cannot own or operate dealers. I dont know why you are asking me about the “logic” in GM not doing direct sales when its illegal. Seems pretty simple to understand to me. GM doesn’t do it because they can’t do it. Have you ever noticed Toyota and Honda don’t sell directly to consumers? My understanding of these laws is that they exist to protect franchise owners who would be put at a competitive disadvantage if the manufacturer sold product directly. I would tend to agree that it would be hard for independent dealers to compete on price with manufacturer run outlets.
GM,
Just because you are receiving government money does not mean you should be wasting it and not thinking clearly about your business model. To many that I talk to, they are dismayed that you are eliminating the wildly popular and recently developed Pontiac G8, which looks like it could be the perfect Impala replacement product for chevrolet.
By Killing the G8 you are losing over $1 billion dollars for the Holden Austrailian Division as well as losing a reinvented, well-selling product at a time that your company sorely needs it.
The reason given for killing the car was that here at GM we dont like rebading….RIGHT….. we don’t like rebading so much that we have a division called GMC that sells every truck that Chevrolet does but under a slightly different trim level and name. Foolish mistake that will certainly cost FAR more than any benefit from just cutting yourself loose from the entire pontiac division can provide.
Start thinking about the future and what products would make sense. You have this brand new vehicle that has only been selling for a few months, it is stylish and a perfect compliment to the Chevrolet line with minor tweaks.
Certainly the company is undergoing massive changes rather quickly, with many asset sales currently underway, but think clearly about the products that are to be eliminated especially the Pontiac G8 that could have a new life under the chevrolet brand as the replacement for the Impala or another mid size vehicle.
It would be the crossover vehicle that would lure former pontiac buyers to a sporty side of Chevrolet. THINK ABOUT IT!
“To everybody bashing dealers remember dealers are a distribution system that does not cost the manufacturer anything. They invested in the real estate, pay for the training, pay interest to inventory cars, invest money in parts for service, purchase tools and a whole lot more.”
David,
All true, but all the American car makers need to somehow figure out a way to get the dealerships to clean up their act. Dealerships are the only point of contact between consumers and the companies, and in far too many cases that contact is less than enjoyable.
Sheth,
I asked since it was brought up and you seem to know what’s what. The sad part about it is that the franchise laws are part of the problem. If GM has little to no control over the dealer experience and service it hurts business… to the point where GM is where they are now. Of course that isn’t a result of ONLY the dealers but a bunch of other things combined.
I think GM selling directly would be a good idea. Apple does this and is very successful. Then again Apple does not allow their retailers to sell their product for less then a certain price. Again this works very well to people who like Apple products. There is no need to really price shop much all the products are similar or the same and price is known to customers. There is also no waiting for one to go on sale or prices to drop. To me thats a plus, both from a retailer point of view and a customer point of view.
Additionally Apple’s tendency to keep prices the same helps retain Apple product value (a current generation Apple product is worth nearly new price until the next product comes out to supersede it). These to me seem like pluses.
Of course there are customers that don’t like that…. but I say to bad to them, there are many Apple customers who are happy with their product (and some who are probably not). It doesn’t stop me from being an Apple customer.
If GM sold product at GM owned or at least GM operated dealers maybe things would be different. Then again Apple products are in many ways superior (if not possibly more expensive) to competing products. Apple produces a product that fits a lot of people’s needs very well and manages to attract buyers. I think GM has a bit to go before they have a product that good. The CTS is close as is the new LaCrosse, Enclave, Equinox etc… These are all vehicles that are better then in the past. Then again thats my opinion.
Gunter Navarro,
I agree its time for GM to open a few GM owned dealerships and do internet ordering. If for no other reason then to bring dealers back in check and give them some real competition. Not to mention give the customers the “real” GM buying experience.
“By Killing the G8 you are losing over $1 billion dollars for the Holden Austrailian Division as well as losing a reinvented, well-selling product at a time that your company sorely needs it.”
AlexD.
The G8 would make a great Buick Wildcat. It’s about time the Buick brand got some “pop” to draw someone other than the geriatric crowd.
“They must be the same Algonquin Round Table that came up with the name Viva to replace the Aveo.”
SteveG,
Chevrolet Viva? That sounds too much like the Chevrolet Nova, or a brand of paper towels.
I do hope GM is not paying a lot of money to some consultant to get what seems to be very bad advice on naming their cars.
AlexD:
I like the G8 but its hardly wildly popular. In most months since it’s introduction it hasn’t even exceeded 3k units. In fact, I think it just did that recently since GM announced Pontiac was being phased out. It’s a good car and popular in the magazines but it has not sold well. Few of its direct competitors are RWD and even if we don’t like it the reality is most cars in the $30k range are FWD or AWD.
I can’t believe people seriously think consumers will buy a car via the internet without being able to sit in and drive the car. Dealers exist for a reason. BTW- how would cars get warranty repairs and service if we phase out dealers? I don’t go to the dealer that often so I fail to understand why so many here insist that “most” people have such hatred of dealers. I don’t like going because its an inconvenience, not because I get terrible service. Most people don’t like getting service because of the cost and time involved. You can come up with any model of dealership you can imagine and those basic facts wont change.
Why would anyone ever buy another GM vehicle? Haven’t you all given enough of your hard earned money to the government? They gave GM billions and still had to file BK. Now they own 60% of stock. Heres some advice….shop around!! GMC= Government Motor Company.
Sheth,
I recently had the chance to sit in a brand new Saturn Aura XR and then subsequently a 2006 VW Jetta GLI with 60K on it.
The Aura has hard plastic arm rests (more of that ‘GM can’t HIDE the plastics’ thing I was mentioning). I found them very unappealing and quite uncomfortable for the 10 minutes I was in the car. Certainly not what I’d want on a long trip.
The VW (and my older GM’s) have a nice cloth (or leather) padding on the arm rests making them soft to the elbow bones. Again GM can’t make hard plastics appealing… or maybe they don’t want to on their lower end products.
VW on the other hand was extremely comfortable and had a cool twin shaft DSG 5 speed manual. Again another example of where GM is missing the boat.
On a 1 to 10 scale I give the Aura interior about a 4, the styling wasn’t consistent (square arm rests that look like they were pulled from the old STS interior) and a complete lack of any sport shifter even on the XR.. and hard plastics that were obvious and about a 6 on the comfort scale.
“BTW- how would cars get warranty repairs and service if we phase out dealers?”
At a General Motors service center, or at an independent garage GM has contracted with.
“I can’t believe people seriously think consumers will buy a car via the internet without being able to sit in and drive the car.”
Who said anything about not test driving the car? When I walk into an Apple store, I get to try the computers before I order. At a GM store, I could also test drive the cars. In the model Nate described above, the Pontiac dealer with the mall store had cars outside in the parking lot for people to drive. You know Sheth, you have very little imagination.
>They must be the same Algonquin Round Table that came up with the name Viva to replace the Aveo.”
SteveG,
Chevrolet Viva? That sounds too much like the Chevrolet Nova, or a brand of paper towels.
I do hope GM is not paying a lot of money to some consultant to get what seems to be very bad advice on naming their cars.<
Unfortunately they are. Do they really need marketing dept to tell them what to name their cars? I bet Ed and the rest of the designers would not have changed the Cobalt to Cruze.
And most definitely wouldn’t want to name the Aveo the Viva. What’s next, the Buick Bounty?
As for Nova, if they were going to change the name of the Cobalt, Nova is what most of us were hoping for.
Nope, we get the Chevy Cruze. Blah.
glad to hear things are going well. Now build a proper Cadillac flagship with RWD and at least as big as the 7 series BMW or S class Benz. Proper Cadillac engines need to be build to. The truck engines your using in the CTS are great, but ya need to show that you can keep up with the technology too. Don’t expand Buick too much. It doesn’t need a 100 different models to survive. Bring back the minivan too. No Domestic brand builds a competitive minivan so build one. The Lambda platform would be perfect. The Colorado/Canyon’s need a redo. A small truck that is competitive in todays climate is a neccessity. and don’t screw up the GM logo by making it green either. Many of the product is already there or coming, but these that I’ve outlined are required to be world class.
Mr. Henderson;
I hope you are reading all the posts to these blogs. It’s nice that GM has emerged from bankruptcy, at taxpayer expense. I received no bailout for the financial damage caused by your defective products. The ‘NEW GM’ will suffer incredibly as long as GM, old or new, does not address the damages incurred from your defective products (liability claims), which were knowingly sold to unsuspecting customers who were only doing the right thing by buying American in the first place. Not only will those customers, but all the people they know, not purchase GM until they feel their issues have been addressed satisfactorily. They will purchase Asian, European, Icelandic, etc., and even resort to Schwinn before considering spending another cent of their hard earned $$ on your products.
It’s great if you have turned around your quality. Truly! I have a couple of questions for you to answer. How quickly would YOU give a company a second chance when they ripped you off for (10’s) thousands (even though that’s most likely only 1 days pay for you and would not really make a significant impact on your wallet)? What would it take for that company to get you to even step foot on their representative properties? Even if they stood on the rooftops and screamed that they NOW made THE MOST RELIABLE product EVER? What would it take? What is ‘NEW’ GM going to do for the thousands of consumers they took advantage of/ripped off? Try to make things right with them? Blow them off? Ignore them till they just go away? Is the ‘NEW’ GM willing to loose thousands of customers straight off the top, from the get go? Are you, GM, going to let the bankruptcy courts dictate your business, or are you going to embrace your problems and acknolwedge them and do the ‘Right Thing’ (which has always proven THE BEST policy, especially ‘long-term’ profits)?
You, sir, have a monumentous job ahead of you.
Oh, yeah…I can’t wait to watch the ‘heads fly’ in management! Should be an interesting show!
My extended family and ancestors have owned GM vehicles since before the turn of the last century. The first was an Olds owned by the first licensed woman driver and owner in the state of Illinois.
The last is very likely to be a 2005 Chevrolet my wife currently drives.
In modern times, the majority of the GM vehicles were bought new, and had various quality control problems, ranging from moderately annoying to serious and expensive to repair or remedy In the majority of cases. GM dragged it’s feet in fixing the problem, or uotright lied about the problem.
At one point, on a 1971 Camaro with an emissions control problem, It took the states EPA to threaten to embargo shipment and sale within the state before GM decided to fix the problem.
Such things as:
Defective engine (1955 Chevrolet)
Defective Carburetor, Engine head, 1960 Chevrolet
Defective Hydromatic transmission 1976 Buick, 1963 Olds
Defective motormounts, cam, rear axle, crankshaft damper, carburetor, passenger seat structure, 1968 Chevelle
Defective rear axle 1976 Buick
Multiple defects 1974 Chevrolet (body, mechanical)
Improper trim assembly, paint, and related issues Multiple years and brands.
The latest annoyance had to do with the replacement of a headlight on the 2005 Chevrolet.
The replacement headlights cost ~ $250 and leaked water. GM first claimed that this was normal, and if the water boiled away during use, no defect. Next, after three replacement units were found to also leak, an investigation at the local dealer by the dealer’s people proved that the headlight assemblies were defective due to lack of sealant. Finally I was able to obtain a head light that did not leak water.
Sheth Jones,
I was hoping no one would reply to my post, as I dont care if bloggers agree with my statements because they are MY opinions and feelings. You did however go extremely off topic when talking about my post and statements.
The g8 Has not even been heavily advertised by GM and is still selling 3k units a month when it has only been around for a few months? Sounds like word of mouth and other means of advertising are selling the car and picking up the slack from GM to sell this well engineered car.
The point is, if you are selling units and making money on a product that is stylish and can fit in your brand structure elsewhere you should absolutely keep it and try to fold it into your current product line.
There is a void in chevrolet for not having that midmarket sporty sedan in the style that the G8 could represent.
Even if the g8 only sold 36,000 units per year it would be doing much better than most of the pontiac line up. if the proper branding, advertising investment were launched GM could save the 1 billion dollars it would lose by simply scrapping the car and possibly fill a void in their chevy line up and entire line up do to the axing of their sport-car brand in Pontiac.
My thoughts were however my own personal observations and suggestions. Not like GM usually listens to their customer/fan base. I am sure the G8 will disappear.
Just finished reading the August ‘09 Road and Track comparison of a CTS-V vs. Jaguar XFR. Guess what – the Caddy one both in instrumented and subjective testing. Considering that the Jaguar is priced over $20K more than the CTS-V, that is an outstanding accomplishment for GM and team Cadillac. Congratulations.
Unfortunately, all is not perfect – there were quality issues cited in the Cadillac. A $65K+ Cadillac – standard of the world – and there is a cheapness in the interior. Shame on Cadillac for allowing the beancounters – once again – to cheapen the Cadillac brand and put a blemish on the image of this otherwise very fine car. Doesn’t anybody stand up to them? People do notice when corners are cut – and GM can no longer afford to cut corners. You need to rebuild your reputation one car at a time, and the flagship performance leader should be a flagship in all aspects. No Cadillac should ever be cited for having a cheap feeling interior – NEVER EVER. There should never be anything fake or cheap or second best in a Cadillac. In this case, probably $200 for higher quality plastics and trim, better seats and a thicker steering wheel would have made all the difference befitting a $65,000 car. That quality and content should have been there in the first place – it shouldn’t take a journalist to point out these very fixable flaws.
Fritz, you need to take charge and fix this NOW. No Cadillac should be designed, engineered or sourced with anything that is second best, you will only have one chance to change your tarnished reputation. The beancounters must be stopped before they kill the four brands that are left.
YES! Maximum Bob is staying!!!! This is the best news anyone could ask for….
Now, Mr. Henderson, you need to give Mr. Lutz a stack of pink slips and tell him to hand them out to ANYONE he wants. If you’re getting rid of 4,000 white collar workers, might as well let the man who knows more about cars than most of the big whigs at the company do the dirty work!
In other words, you let BOB run the show.
BOB PLEASE SAVE Pontiac I BEG YOU PLEASE!!!!! A new GTO is needed….no to Hybrids YES to V8’s
Alex D,
I agree and completely disagree. The G8 is worth keeping around it is definitely one of the nicer cars GM has made recently (I only wish the G6 had an interior quality like the G8). I however think the G8 is best moved to Buick (or both Chevy and Buick). I’d love to see that 3.0L engine they have with turbos on it or even a Turbo Ecotech making 260 HP in it. What it needs is a bit of Buick make over… some wood grain here and there and a Buick grill and maybe mag ride shocks to give it a nice ride and a sport feel when needed. I’d probably change the wheels also to something a bit different (never was a fan of the stock wheels).
But yes I agree why scrap a platform that so much was invested in.
Malcolm,
In defense of GM, the upcoming ‘Truck’ V8 they have with direct injection is pretty high tech. GM has shown that their ‘pushrod’ V8s are not only competitive but a quality product. They are quite simply one of the most developed engines in the world (feel free to prove me wrong).
Personally I’d take an LS V8 in a Caddy over a Cadillac Northstar anyday. They are simply better.
That said what do you consider keeping up with the technology?
From what I have read GM has a truck V8 coming out with variable valve timing, direct fuel injection and (possibly) displacement on demand with 450 HP out of 6 liters. If memory serves me see: http://www.gminsidenews.com/forums/f12/gm-reveals-small-block-v-8-direct-injection-wardsauto-com-54138/
“No Cadillac should ever be cited for having a cheap feeling interior – NEVER EVER. There should never be anything fake or cheap or second best in a Cadillac. In this case, probably $200 for higher quality plastics and trim, better seats and a thicker steering wheel would have made all the difference befitting a $65,000 car.”
Sandy Lykoski,
You are right, it’s as though the beancounters don’t realize cutting corners to save a buck or two here and there, costs much more in the negative perception it creates.
If the G8 had a Buick logo on it I wouldnt have bought it….I know Buick is big in China but Pontiac is Bigger here…Thanks Bob for My G8 GT..nad my 05 GTO…
You know, just driving around my fair city, I have noticed more and more that GM vehicles are being ‘towed’ by foreign vehicles…and not ‘old’ GM vehicles either. That’s advertising. Is that the sort of quality customers should expect?
petra butler Really
because in houston its the other way around GM towing fforeign
I am curious how GM expects to be responsive to their customers when they are closing most of their dealerships. Here is San Jose California when it is all said and done there will be only one Chevy dealership for all of Santa Clara County and that dealership is partialy owned by GM. That sounds more like no compitition not better service.
Gregg;
Really! Sad to say!
petra butler
I bet they are repo’s considering our current financial situation…I would challenge anyone to a quality competition with My GM vehicles…My old GMC had 256000 miles on it before I traded it in for my 02 Silverado that now has 89000 miles problem FREE….
I am sorry Petra…I dont mean to come off as a jerk…I have just been in the dump’s since the Pontiac thing…I really think GM have made big steps with there Quality. You can really see if from the vehicles GM put out in 2000 and the ones they put out now…
No worries Gregg…you did not come off as anything…you were just stating that in your area you don’t notice what I notice here. No Prob! I respect that. That’s what these blogs are for, for each of us to express what we feel, what we see, what we want, what GM can do to improve, etc. As long as someone does not try to cram their own opinion down my throat, I have no problem with any comments…good or bad.
I also find it refreshing to hear from people who have not ever been ripped off by GM. Just too bad I was not one of them. I was extra special and got nailed on two cars (dexcool junk and the lower intake gasket which has cost me plenty)! Since that time I have noticed more and more GM vehicles on the side of the road or being towed…sorry to say.
GM used to be, and the key words here are: “used to be” known for their quality…period. Anyone who thinks otherwise has been living under a rock because GM’s demise is very well documented, especially the BANKRUPTCY! If GM had continued their practice of manufacturing quality vehicles, a decent level of customer satisfaction and service, there would have been no need to file bankruptcy in the first place.
Gregg,
I disagree… just because Buick was for old people doesn’t mean anything. In case you’ve never owned or driven a Buick its different then other GM’s. There’s a certain ride comfort and pleasantry in long trips that I rarely until recently have observed in Chevy, Pontiac or Olds. There is nothing wrong with a sporty Buick either. The G8 with a Buick Logo is still a Holden. GM could take the same car and badge it 3 different ways and the name alone changes people’s perception… ironically the car would be the same and drive the same either way.
So I’m all for a Buick G8 with a few more creature comforts and the same sport and styling the G8 has now. If you’re more about performance perhaps a Chevy better suits you now that Pontiac is going to be gone.
Debbie Byers,
How can you say a GM dealership is no competition…. Competition in some cases hurts service quality. Such would be the case if dealers are slashing prices to compete with each other. GM no doubt has a fixed price for a specific vehicle and option package(s) so dealer price competition cuts into profits and eventually that could cut into service.
Now I’m not saying only GM dealers is the right thing either… merely saying that if GM runs dealers correctly and provides good service then there should be nothing wrong with GM owned and operated dealers.
Nate,
Good to see you back here! G8 could be seen in the Buick line up, why not offer an upper-scale trim level of it in the Buick Line but allow for the curretn g8 incarnation to live on under chevrolet. I disagree that Buick is for old people, it may have been in the 90s and early 2000’s but I have seen many Lucernes and Enclaves on the road. I have also recently seen many of the chevrolet Traverses around on the road.
I think it is going to take time to develop the correct marketing message and product mix. but the new products from buick are extremely encouraging and point to a hopefully bright future. For Pontiac the division just couldnt survive years of mismanagement and starvation of good core product. ultimately Buick was capturing more of the market with 3 vehicles than Pontiac had been with a full line up. The monetary business case just didnt make sense.
Maybe in the future we could see some limited edition Pontiac and Oldsmobile cars at certain GM dealerships (Cutlass,Fiero,Firebird) during special occasions to generate revenue and create awareness for their current brands and models.
There is much available to GM for the future. I would still eliminate some vehicles from their current portfolio and hopefully they are in the midst of doing just that. I think we will see some great changes from GM over the next several months, already management under Fritz Henderson has been more attentive and receptive to customer feedback, the blogging community, and quality than any other previous GM administration in recent memory. The future is bright.
To all of you who think that the G8 should be a buick, WAKE UP!!!! Buick died right after the Grand National was born. After that, they haven’t made a single vehicle worth buying since. They were all just rebadges like the rest. And, THE WILDCAT IS DEAD, GET OVER IT!!! Buick killed the wildcat in the 60’s and it was a terrible car anyway. it should have never been created, and i am glad that it died. And if the G8 went to Chevrolet or Cadillac it would end up looking absolutely retarded. And i cannot beleive that you call your new four car brands “Quality cars”. I can get more quality out of an old ford. (and ford sucks!) Where is this company heading to? well the answer to that question is south. GM will never be the awesome company they once were. They are now so far in debt that they have to ask the people they sold cars to for money. And now that President Obama has stepped in, you have become Government Motors. I am VERY disappointed in all of you. What happened to all the spirit? did you all just give up because things looked too grim? Well, WE are not giving up. Pontiac fans all over America are angry, and eventually (in a couple of months), a revolution for Pontiac will be put forth to right this terrible wrong. We will rise up and show them that they are wrong for getting rid of Pontiac. Anyone with a college degree and a good head on there shoulders would have made the right decision and got rid of Buick. But, we already tried to get you to get rid of Buick in 2003 when you killed yet another great company. Not only did Oldsmobile overtop Buick in the record books, but they also made better products. And now in 2009you want to kill off the last of your best brands you ever had?!! Pontiac has a better line-up, better aftermarket, better styling, better performance, and a better value. They also overtop Buick in all the sales. Are you seeing a chain reaction and a connection? These so called “Four Core Brands” will be nothing but cheap plastic toys. Pontiac was your only savior, and you turned your backs against the greatest company you have ever had. well, no more. We will all see you in Detroit, Henderson. That I can guarantee.
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On July 10, 2009 at 10:36 pm Anonymous said: “To all of you who think that the G8 should be a buick, WAKE UP!!!! Buick died right after the Grand National was born. After that, they haven’t made a single vehicle worth buying since. They were all just rebadges like the rest. And, THE WILDCAT IS DEAD, GET OVER IT!!! Buick killed the wildcat in the 60’s and it was a terrible car anyway. it should have never been created, and i am glad that it died. ”
Well, Buick still made the WILDCAT in 1970. And I have owned quite a few of these and they are AWESOME cars. I got my first one at age 15 back in 1992. I still drive a ‘65 WILDCAT daily and I have to tell you it’s far from being dead! I have never owned a car that was so trouble free! It’s drivetrain is still original and never rebuilt.
And there was a cool Wildcat prototype done in the mid eighties (I remember when I was 8 years old ans saw a big color article in the newspaper showing it) and there was another one in the late nineties…
I do agree with you that Buick didn’t make a vehicle worth buying since 1987 but the newest Pontiac I would buy is almost 20 years older than that!
AlexD:
As soon as you assumed GM doesnt listen we learn that the G8 may live on as a Chevy. Just when I thought you knew everything. Oh well.
Nate:
VW interiors are generally nicer than American or Japanese car interiors. I find it interesting that you spend most of your time here worshipping Toyota and Honda but you come out of left field with a comparison between the Aura and GLI. I do think the VW has a better interior, but the Aura looks better, has more space and has a more powerful engine. First of all the Aura’s armrests are not hard plastic. Don’t try and fool me because I own one. The hard plastics on the car are on the lower parts of the dash and the lower door trim panels. I’ve driven the car for hours and not had any issues with the armrests being uncomforable. Since you do nothing but disparage virtually every vehicle GM makes I cannot take your complaints seriously.
The car doesn’t have a “sport shifter” because it has paddle shifters that allow you to change gears. Its only the second midsize sedan to have such a feature- the first was the Grand Prix. In terms of design, ergonomics and materials I would rate the interior a 7. The VW might be an 8 and that’s only due to softer materials in some locations. I dont think the design of the VW is any better than that of the Aura. Have you been in a Malibu? Its a step up from the Aura and the Equinox appears to be a step up from the Malibu. The Lacrosse blows away the Malibu and Aura. Interesting that you used a GErman car as you benchmark because I never claimed that GM did better interiors than the Germans. The Aura’s interior is more than competitive with the Camry.
“But yes I agree why scrap a platform that so much was invested in.”
Who said the platform would be scrapped? The zeta platform is used in other countries like Australia and China. Also, it supports the Camaro.
Glad to hear your not changing the back ground color of the GM logo. Thats the small stuff. Show the world GM is serious in what you say and prove it. I do have an idea. Might be in left field, but its still real.If George Strait is willing. He has the word blue in alot of his songs. I suggest getting with him and come up with a color blue and sell it as George Strait Chevrolet blue. It would go great with the silverado. I am unemployed due to the Automotive crises, but I would definitely try to get that truck.I figured its my job to help get things rolling again. The sooner the car industry is good again the sooner I get to go back to work. GM has been my pick of transportaion and I want to see you rip roaring again. Bigger and badder than ever before. Heres to you GM. Good Luck !
Betty: please reconsider your comment and look at it. you have been unemployed because of GM, and yet you want to buy a truck. Well, there are about 5 million people in the US with the same problem. But the only difference is that they will never buy another GM vehicle again. And now, that they have chosen to ignore Pontiac fans’ comments and plees and protests, they have lost about 6 million in customers. Henderson is going to be fired eventually. And when “GM is off the Fritz” Pontiac will be back.
Fritz, sorry, I used to be a customer of and investor in GM so you guessed it…I’ll never buy another GM or UAW product. You are dishonest in not owning up to GM being controlled by and for the UAW. Until you deal with this issue of your ownership and what happened to your previous shareholder / bondholders owners vs the UAW , most Americans will stay away regardless of your product or marketing. There will always be as good or better products from competitors, so I see a zero percent chance of the “New GM” succeeding given your political baggage.
In lieu of negotiating higher wages for my mother, the UAW opted for benefits. She retired from Delco Remy Division of General Motors after working 30 years on assembly lines. She is now 84 and living on a fixed income. The benefits negotiated by the UAW are now disappearing. The UAW screwed up royally.
My mother’s $800 year-end bonus is gone. Her dental insurance is gone. Her vision insurance is gone. General Motors’ $73 monthly payment toward her Medicare premium is gone. Her copay for generic prescriptions has increased from $11 to $16. Her copay for brand-name prescriptions has increased from $16 to $50.
Take a hike UAW, Government Motors and Czar Obama.
“Well, Buick still made the WILDCAT in 1970. And I have owned quite a few of these and they are AWESOME cars. I got my first one at age 15 back in 1992. I still drive a ‘65 WILDCAT daily and I have to tell you it’s far from being dead! I have never owned a car that was so trouble free! It’s drivetrain is still original and never rebuilt.
And there was a cool Wildcat prototype done in the mid eighties (I remember when I was 8 years old ans saw a big color article in the newspaper showing it) and there was another one in the late nineties…
I do agree with you that Buick didn’t make a vehicle worth buying since 1987 but the newest Pontiac I would buy is almost 20 years older than that!”
you must be at least 60. you drive a Buick. thats why you will not buy a newer Pontiac. Yes, the older models were great, and the middle models were cool too. (i own a few myself) But the new Pontiac models are the best product that GM makes at the current time, and the best product that GM ever offered. (besides Oldsmobile). Buick sucks, Cadillac is too expensive, GMC is a rebadge of Chevrolet, and Chevrolet is made of a bunch of generic designs with crappy engines. The only Chevrolet I would consider is before 2000. GM has lost ALL of their loyal customers since they started to cut their line of cool cars. But, Pontiac will be back. And we will be better than ever.
Disappointed – My Buick has been to the shop four times to repair a quality problem with the headliner that continues to fall down. As I drive today, the liner is loose and coming off – not something I’d expect from a new car. This will be my last GM car. My $0.05, if you truly want GM to succeed, best get down to basics and focus on product quality and taking care of the customer.
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