Webchat: Bob Lutz on Reaching Customers in His New Role
Bob Lutz will host a Webchat right here on Fastlane Monday, July 13, from 2:00 to 3:00 p.m. EDT to answer questions about his new role as GM vice chairman responsible for all creative elements of products and
customer relationships. Lutz will oversee GM’s brands, marketing, advertising and communications.
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Bob, GM need a ford fusion hybrid type car for under $30K right away to get people into the Chevy show rooms.
There really is a God, welcome again Bob and thanx for saving Zeta. I’ll be first in line at my local dealer to get a Caprice even though Impala would have been my first choice for names. Now if you can convince Fritz that a DTS/ STS replacement on Zeta II makes more sense than Epsilon, and the Alpha as a small Cadillac and a new Escalade on Zeta gives them a better platforms to compete in the world luxury market.
Bob,
You do realize that, for any top level, premium, top of the line Cadillac to be CLASS LEADING (not just competitive, but CLASS LEADING), it MUST be rear wheel drive, right? Why, then, do I keep hearing all of this nonsense that the STS/DTS replacement will be FWD?????? I surely hope this is a decision made by the “old” GM that will follow the beancounters and talentless designers to the unemployement line as you hand out pink slips.
1) Do Chevy caprice will have a VE Ute SS V version also ?
2) second is i see more emphasis on you , will you be concentrating on building up an enthusiast second line leadership in GM also who really care cars, quality and technology. To be true when i herd you are back – first impression was – poor GM they don’t have a second line to do things than milking Lutz image.
3) Do we really make astek back as a halo car with better wind tunnel, better hybrid and put as a CUV against Prius – real prius competitor ( similar price range , 10 mile range plugin hybrid )
thanks Lutz for answering
I have owned several Cadillac DeVille and later DTS models and I love my front wheel drive Cadillac full size car. I realize I live in mid western Ontario Canada, a sometimes heavy snow area and rear wheel drive cars here are useless. I have a 2009 CTS all wheel drive and very much like it but long for the better ride and rear seat room that the DTS has. Go for it GM- a front wheel drive all new styled full size Caddy
My advice:
1. Proceed with saving the G8 but add much needed content. The car needs more luxury features lik 8 way seats, HIDs and memory. Raise the price accordingly, people will pay for it.
2. Make it clear in your ads that your products can stand toe to toe with ANYTHING the Japanese are putting out. Challenge people to take test drives.
3. You all need a LONG TERM incentive program directed at owners of imports. It would be costly in the short term but in the long term it would cut into the sales of your competitors and establish a new generation of buyers who may buy your products in the future. I would suggest either cash, free maintenance or an extended warranty for those who trade in a Japanese import for one of your vehicles. YOu have to be aggressive and go right at those die hard import fans who need a compelling reason to even visit your showrooms.
4. Continue to mention fuel economy as often as possible in your ads to drive home the notion that you are meeting or beating the Japanese in mileage. The American public isn’t too bright and it will take years of you beating that drum for them to get the message. The average import fan isn’t even going to spend 5 minutes to research the mileage of GM products because they are so biased and so wedded to the idea that only the Japanese can deliver efficiency.
3. You all need a LONG TERM incentive program directed at owners of imports. It would be costly in the short term but in the long term it would cut into the sales of your competitors and establish a new generation of buyers who may buy your products in the future. I would suggest either cash, free maintenance or an extended warranty for those who trade in a Japanese import for one of your vehicles. YOu have to be aggressive and go right at those die hard import fans who need a compelling reason to even visit your showrooms.
If you want to go after the Honda/Acura/Toyota/Lexus owner, you really need to make things risk free for them. My Acura TL is on it’s third transmission right now, but I can’t really get too upset because I haven’t skipped a beat. They replaced it each time at no cost, and they gave me a newish loaner car to boot. For Buick to compete with Acura/Lexus, you will have to provide the same level of service
“To SierraGS and everyone else curious about the future of the G8: I share your love for the G8. Seems too good to waste. We are looking at a few options. Stay tuned. Bob Lutz”
Mr. Lutz,
It’s a very simple equation: Pontiac G8 = Buick Wildcat
Heaven knows the Buick brand needs a shot in the arm to break the perception of mustiness that goes with the brand.
Agreed. The last time Buicks got more than a glance from me was in 1987 with the GN/GNX.
Stew
I’m glad to see GM making it through the tough times. As a GM kid growing up, it makes me proud.
Heard about quite a show of GM products in Tempe this weekend. A buddy (and fellow GM kid) was all excited! Saw the new SRX, LaCrosse and the Holden Commedore (sp?) and had great comments! Can’t wait to see (and drive) them!
My wife and i were discussing what gets folks excited when seeing tv adds. We thought it would be a good idea to show case our new products with clips of customer/employee interactions back dropped by the song I can see clearly now( the verses say it all). Thought it would be a great tune for the new gms beginning.
I’m a consumer down here in Oatmeal, Texas. I drive a 2003 VW Jetta TDI with 230,000 miles on it, my other one from 1998 is all wore out with 340,000 miles (5th gear is stripped out). I got my money’s worth; I do all my own maintenance and my little computer talks to the cars to find out what’s wrong. Fedex brings me parts next day.
I’m reading about your problems up there and have nothing but good wishes for y’all’s success (since I make a living building steel mills). You can drive by the last place I worked, Severstal Steel, right down the street from your (old) world HeadQuarters, and see all the inactivity there. Now I’m thinking about my 19 year old who just graduated this spring and is looking for a car – where he is at today and where I was at when I was 19 years old and cars were a big part of my mental interior life.
I went out and got a job and bought a new Oldsmobile Omega yellow convertible (from Generous Motors) for $2,378(??), stick shift, big engine. I was paying about $78/month (x24), and paid down one entire (week’s) paycheck of $485. I sucked in my gut. They filled it up with gas, and it had a real spare tire. My father gave me some tools, and I could carry them all in a little box in the trunk, and fix anything that broke on the car in about two hours. The car was pretty, but it did break quite often. I usually could get it towed home so I could jack it up and work underneath it; sometimes I just fixed it where it was at. I could time it by ear.
Now we come to today and where Matt is at looking for a car. He works on the local municipal golf course part time so he can play for free when he’s not working. A bunch of high school kids (most of the golf team) work in hospitality services; when Matt goes off to tech school in September some more high school kids will take over. He makes about $100/bi-weekly. He likes your Camaro and Ford’s Mustang and has driven both (the VW is for old people). He could work for about 500 weeks and get either one of them for cash, or an extra 50 weeks (banks need money too) and get one today. He owns his own iPod and currently has about $25 saved up. I can give Matt some tools, but some of my tools are special purpose to remove only one tiny little inaccessible part, and I don’t think he wants to tow my shed around in back of the car.
As you can easily see, the quality of car life, for young people today, is dramatically lower than it has been in the past. We didn’t get there overnight; we made one poor decision at a time. We’ve got ourselves into a position that someone can build a car in China, build a boat to ship it in, build ports on both ends, have a better economic structure, and have a nice value added business teaching the people in Detroit about Quality of Life. I think your culture has indeed been an impediment, for more than the last business quarter.
Good luck lightening the ship,
First, welcome back, Bob. Second, even though I admire and respect you, I would trade you for the resuscitation of the Pontiac brand in a heartbeat. Now that we have that out of the way….
1. Chevy needs a Malibu hybrid, stat
2. Malibu needs AWD
3. LaCrosse AWD needs at a minimum the 300+ hp DI V6, not that anemic 255. plus a bigger trunk, plus get rid of those oblong dual exhaust tips in favor of quad round ones.
4. GM needs the Vibe, or equivalent, whether it be a Chevy, Buick or both – numbers do not lie, Vibe was a hot seller and further indication that small to medium size AWD is an important part of the portfolio.
5. Ferdinand Porsche invented a remote position electric wheel (wheel hub motor) way back in 1897 and premeired a twin front hub vehicle in 2000
Correction – Lohner Porsche at Paris Expo in 1900. (fat fingers) Remainder of thought – wouldn’t it be great if we had vehicles with 4 electric hub motors, completely eliminating much of traditional driveline losses and weight, and then instead of pure battery, think in terms of statinoary generator power where 27Kw can be genrated continuously by less than 50 hp, minimal extra battery power for acceleration, also plus that vehicle could be used as whole-house generator during power`outages. Even 75 continual hp is enough to provide 48 Kw continuous power (see generac for details)
JoeD:
Do you realize that Lexus is the top selling luxury brand (as of 2008) and its two top selling products are FWD? Do you realize that Acura, Volvo and Audi do not make RWD products? You do not need to sell RWD exclusively to be successful in the luxury market. Audi is the fastest growing luxury brand and they do not make one RWD product. You can rest assured that any future Cadillacs will offer advanced AWD systems like Audi and Acura offer.
Bob,
I’ve been a pretty big fan of your work for years. But as I was taking a shower this weekend I had a thought. The basic premise was that GM’s re-birth also means a sort of re-introduction of GM’s product portfolio.
I’ll be honest- nobody I know in my group of friends ( predominantly young professionals in their 20’s and 30’s) know anything about your vehicles. Half of this is likely due to them having written companies like GM off years ago, thus they don’t bother keeping up with whatever new product GM happens to have. To me, I don’t think the issue is necessarily with the product. Its the way in which they have been presented. Sure- we all have heard how good the Malibu is. But reasons are never given as to why. Most ads I’ve seen for GM products over the last few years focus very little on the cars and trucks. Its all about pricing, incentives, and comparisons to Toyota.
Much could be accomplished by re-presenting cars like the Malibu, Cadillac CTS, and Buick Lacrosse. In other words, you don’t have to reinvent the wheel with what you’ve already got. You just need to find a way to present them in a method that makes people pay attention.
I can almost assure you that most young professionals my age are totally unaware of the newer products GM has to offer. Much could be accomplished simply by focussing on presenting them as if they were new and hot off the line.
Welcome back, Mr. Lutz! Please quickly fix Buick’s latest advertising campaign to be, in keeping with the brand’s positioning, a little more dignified. Why not capitalize on Buick’s quality and beautiful styling? Don’t be subtle about it, be proud of what Buick is and will be for GM! And please get additional product to Buick promptly, such as the Opel Insignia (badged as a Buick “Regal” or even Buick “Insignia”), the Saturn VUE (as a new, smaller Buick CUV), the Opel Astra (for urban residents like myself), the Chevrolet Volt (the name Buick “Electra” would be a natural), even, as many others have suggested, the Pontiac G8 (as a new Buick “Wildcat”). And find something appropriate to wear the name Buick “Riviera” – perhaps a halo car! Don’t let us down!
Bob,
as a former GM employee, and a H2 owner, i am concerned about Hummers future, It took me 6 years before i could get one and i love it…..what will really happen to Hummer ? and since it has a defense component what will happen to the civilian and military parts ?
i was young in your glory days of the 1960s.the one thing i beleive is thatt if you took the styling cues from approx 1955 thru 1963 you could do now what you had done in the past.cars today are boring.styling cues from a bygone era could if transformed into a modern design provide gm with somethinf they lost .a feeelgood feeling when you get behind the wheel.i feel if you are not differant from the others you lose.if you cant create the wow factor your finished.you must understand the car is an extensionof ones feelings.if you can grab onto that you could make it big.
Sheth,
The top of the line Lexus is the LS460 – RWD, always has been, always will be. My point is GM’s flagship luxury car must be big, powerfull, quiet, packed with cutting edge technology, and RWD. It won’t be the best seller, but if GM is going to be serious about contending with Lexus, MB, and BMW in the flaship luxury sedan market, RWD is the only option.
The current DTS is an absolute joke compared to an LS460. GM must not compromise here.
An entry level Cadillac can be FWD. But not the flagship sedan.
No one has a FWD flagship luxury car. No one. NO ONE!
Any chance if having more “Bling” on our cars. aka Chrome look-a-like. I think the cars with more chrome/shine seem to attract more buyers. Looks great on the Malibu and Impala! Thanks.
Bob – Wish you would have never left Ford! What’s your plan to communicate with dealership employees and your loyal customers sitting in a GM daelership service waiting area?
First off, Bob welcome back. You are the backbone GM needs to stand up to the new 60% stake holders that think small hyper-efficient cars are what americans want. I want to know how bad of a hit you think the auto enthusiast side of GM is going take over the next few years given the new CAFE standards. I’m hearing reports of the CTS-V coupe being on track but not the Z28 camaro? If the G8 does live on as a Caprice would there be room for an SS model with an LS3 like the GXP? Thanks for answering.
Um, I drive 30,000+ miles a year, that IS what I want.
Stew
Bob mentioned that he is the voice of the people to GM. Will there be a a way to send him our ideas directly via Blog or email. It would be nice to have a separate Blog and the would comment there a few times a week and actually answer questions.
I hope the Volt will have enough leg room for us tall guys! I’m 6′ 8″ and would love to own one.
Dan
There seem to be skeptics who think GM is incapable of manufacuring a quality product. Even worse, those same skeptics claim GM is unconcerned about that inability to have QC. GM’s attitude about quality seems to be “let’s not do it and just say we did.” Market share recovery will require more than rhetoric to convice potential customers otherwise. What is going to be your approach to deal with this? A warranty won’t give consumers any confidence because of GM’s reputation for reneging. Your present styling won’t compel people to try your current line-up because they mostly look like 20 year old Toyotas.
PS I’m one of those skeptics. I would return to GM if it is going to be as good as it was 40 years ago.
JoeD:
The DTS is 4 years old and is MUCH cheaper than the LS460. You cannot seriously think the cars go head to head. You can get a loaded DTS for less than a base model LS460.
The Audi A8 is an AWD flagship vehicle with a transverse engine and a weight distribution akin to a FWD car. Audi has proven that you can make an AWD vehicle as sporty as a RWD vehicle. While most luxury makers use RWD Audi does not and they are excelling worldwide. Your claims that you must have RWD to be a credible competitor are totally incorrect. No high powered Cadillac flagship is going to be FWD. Any GM models going forward with over 300hp are likely to be AWD just like the 300hp SRX.
Bob,
Forget most things said here about product. GM’s bigger priority right now HAS to be customer service, and the pubic’s perception of the vehicle purchasing experience at GM. Getting rid of Fritz Henderson and those with attitudes like his would be the first order of business.
An Aussie
Bob
I am delighted that you have un-retrired. You are a great auto executive because you love cars.
You realize that car design is an art form. I just read your question and answer forum. I would have asked about natural gas powered cars. If these cars existed how would threy be treated by CAFE.?
GM could get its dealer network to install natural gas refueling stations. Is it possible to make a car that can have both a nat gas tank and a gasoline tank and could such a car switch back and forth between fuels depending on availability. I think that GM was a victim of Wall St recklessness which brought about the economic disaster.
Dear Bob:
In September of 2004, I wrote a letter to you suggesting that Hummer be repositioned as a true off-road vehicle, that all Cadillac models should offer all-wheel drive as an option, that the Solstice should be named the Chaparral, and that Buick should offer the only five seat convertible on the market once again. You very promptly answered my letter my letter in kind, reaffirming my opinion of you as one of the most genuine and thoughtful people in the automotive business.
THANK GOD you are back. It is through your insight, drive and imagination in new product planning that has put GM in any position to remain alive today. Your influence on a company that is as bureaucratic as GM is as astounding as it was far reaching. Examples that come to mind:
1) The first Corvette in 35 years that I would own, the C6
2) The first Covette that could run with…well anything, the ZR1
3) A terrific family car, the Malibu
4) A great roadster, the Solstice
5) A great SUV, the Traverse/Outlook/Enclave
6) An M5 for the price of a 328, the G8
7) A even better sedan, the CTS-V
And on and on and on.
Now you are in charge of marketing.
This may be an even more formidable task because the marketing that has come out of Detroit has not worked for decades. It is seen as vapid, vacant puffery that no one believes. The current campaign is a great example. No one trusts GM. No one believes that you will stand behind the great products you have created merely because your ads say that you will. Act like your most cynical consumer and you will see what it takes to convince them to part with $40,000 for a car sold by a dealer that may not exist next year.
I remember a story once that when the agency presented the “New” Cadillac campaign to you with Led Zeppelin as the sound track, you remarked that you thought they should have used classical instead. The agency said that the audience thought Led Zeppelin was “classical”. Bob you were right, they were wrong. You have excellent instincts. Listen to what you, a no nonsense guy in every sense of the word would do, or ask, when faced with BS ads about a product. The only thing that can save GM now is the truth and that should come from you. The guy that made the cars.
I have restored several cars and I have been in advertising (I own my own agency) and client side for thirty years, much of it automotive (Toyota, Alfa, Maserati, Rolls-Royce, Bentley, Land Rover, Peugeot, BMW Motorcycles). If you ever want to bounce off an idea I would be all too happy to help. Don’t worry this is not a sales call just reaching out to help a fellow car guy if he ever needs someone to talk to about marketing.
Good luck Bob.
You are by far the greatest product guy there is and now you will be the greatest marketing guy too!
2:43 ~ [Comment From Nate ] Does GM have any plans for diesel cars in the US? Or are they banking entirely the Volt and Converj platforms? There appears to be customer demand for diesels as well as the Volt technology. Is there room for low production diesels?
2:44 ~ Bob Lutz: For diesels to meet US emissions (US regulations are six times more severe than European) we’d have to increase the diesel surcharge by another $2500 to $3000. The total would amount to about $6000. For that surcharge of $6K, the customer gets a 20% in mpg, but has the privilege of paying for fuel that is 20 cents per gallon more expensive. Show me where this makes sense. Several Europeans and both Toyota and Honda have canceled their US passenger car diesel plans, as have we.
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Surely you are aware Volkswagen TDI is now so popular there are waiting lists at dealers, and people are even going to the trouble of driving around to several dealers and putting their names on more than one list. VW has also decided to ramp up production of the TDI to meet the demand.
1. What does VW know about diesels that GM doesn’t? Why can they sell a Jetta TDI w/o needing to add a $6,000 surcharge above the price of a gasoline-powered Jetta?
2. With the possible exception of the Camaro, what vehicles does GM make for which you have had to ramp up production to meet demand? I woudl think you would welcome VW’s TDI problem.
1. It would be nice to see the G8 v6 and v8 become the Chevrolet CHEVELLE and CHEVELLE Super Sport respectively. The formerly proposed G8 ST could be brought over as the Chevrolet El Camino.
2. Holden/Chevrolet already has a larger “full-size” version of this platform that carries the Caprice nameplate in Australia and the Middle-East.
The new GM looks like the old GM to me. Where is the American version of the Toyota Prius? Why are you still pushing these gas-guzzling monstrosities instead of smaller more fuel efficient vehicles?
Remember the EV1 that you destroyed? Now is your chance to redeem yourselves in the eyes of global consumers with the best electric cars and plug-in hybrids on the market, not those unsafe cheap SUVs and heavy trucks.
I wan to buy American but I might have to wait until Tesla Motors makes an affordable electric vehicle before GM does.
Thanks!
Sheth, are you completely missing my point to due to ignorance or incompetence?
IF…… and I mean IF….. you read what I said initially, GM is going to make a bona fide flagship, top of the line sedan to REPLACE both the DTS and STS, thus it will be a better higher end car than either of them are now, so you can translate that to be a base price of $60k-ish…… I never once compared the DTS to an LS460. This new flagship will be more expensive than either the DTS or STS – GM intends this car to be their FLAGSHIP (not entry or mid-level). I said this car must be RWD. The reports were saying that GM might make it FWD.
My point is that would be very, very bad for image. At that class and price image is everything.
But I was not talking about any other car in the lineup – just the flagship. You were the one who tried to put words in my mouth by saying I said EVERY Cadillac must be RWD. No, I did not say that, if you re-read my initial post.
I’ve noticed you do that alot with other posters here – conveniently choose to ignore half of what they say just to make it fit your arguement better. Stop doing that. People probably ignore half of what you say already.
JoeD:
The A8 is AWD. Speaking of ignoring what others said I see you conveniently chose to ignore that. The A8 is a respected player in the large luxury car segment and it’s not RWD. Since you advise people to read carefully I suggest you reread what I wrote about AWD. GM is not going to make a large sedan with a powerful V6 engine FWD. It may be on a FWD platform, but the car would be AWD like the A8 or Bentley Flying Spur.
I assure you I’m neither ignorant nor incompetent. I pointed out a FACT about the A8 (and Audis in general) being AWD and you respond with a bunch of insults and indignation. My point was simple, a flagship does NOT have to be RWD. Period.
Audis are great cars, but they aren’t among the traditional “big boys” of luxury – that consists of BMW, Lexus, MB. I don’t know numbers, but I would put good money on the fact an LS460, an S-class, or a 7-Series outsells an A8 easily.
Also, Sheth, you claim the race for big, RWD, 400 hp luxury cars is about to come to an end?
Go tell that to BMW or Mercedes, they’ll just laugh in your face. No matter how many green peace beatniks come out of the woodwork, there will ALWAYS be BMW 7-Series and Mercedes S-class.
I’m just saying that if GM does it right and goes head to head with their best cars, they could change the perception of most people who say GM can’t make a modern luxury sedan.
The G8 has finally been discovered by a broader percentage of the buying public. The owners are ecstatic about them, many calling it the best sedan they’ve ever driven. We consider it too good to waste. So we’re studying the feasibility of bringing it in as a Caprice for both law enforcement and the public.
On the positive side the Camaro is on the way to raising Chevy’s image among the Euro sport buyers. Impala SS might be a stronger name than Caprice.
GM is missing the market share in affordable Luxury Sport category. How is making police cars going to get there? Ok so make the Chevy police car for the entry level. But Buick needs to get the sales away from the luxury sport and Euro sport crowd if it is to have brand credibiltiy. This rising professional buyers isn’t going to buy a police car knock off like a Nascar fan. That’s saying plainly.
Buick must become affordable luxury sport to succeed in the present market place. Not just luxury. Buick must shake the old person’s car image. We hope you are listening.
One hesitation on the G8 is it needs more American parts content and the G8 seats should have traditional levers for reclining, not those uncomfortable knobs. Will there be a Buick Grand National verson, that would add some class? Then we will hear the phrase, we’ll we don’t want to compete with ourselves from the GM brass. GM must compete with the foreign luxury sport brands who are taking your business. So, stop letting them.
GM needs a sharp luxury sport/> Riviera and small sedan to directly compete with the Lexus IS. Buick’s overall image needs to be lifted if it is to lead the car sales. And believe it, Buick will lead the car sales if it follows through on the affordable luxury sport line-up that incorporates the GM technology and image.
We keep hearing this concern from GM that they need to make a profit on small cars. Here’s how: Target the Lexus IS and the small Acura’s with Buick. LUXURY SPORT.
Affordable Luxury + Sport = Luxury Sport = Market Share.
Its so simple to do. Remember when GM led the car market with style and design.
GM should use classic names on its cars to energize its base customer as well as lure new customers. LaCrosse is still not a widely known name unless GM is willing to advertise the name.
GM should focus on the 4 cyclinder sport tuner markets and small fuel efficient 8 cyclinder in order to capture the affordable luxury sport crowd and lure the rising professions to Buick. These engines will help distinguish GM cars as besting foreign competition.
Dear Bob
Continue to improve and upgrade and bring the weight down at an excellerated pace. Make your products the best on the market class for class in every catagory. But unfortuenly that still may not get the customers into your showrooms. So you have do something spectacular like offering them the best products with hte best warranty at the best price. These things may have to be at a wide margin to began with. But once you reestablish yourself as the premere auto maker then you can price accordingly. Renember you have a bad reputation along with bad marketing. Fix those things and they will come.
Bob
Great news about keeping the Pontiac G8 as a Chevrolet Caprice. I’ve owned many GM cars but my last one was 30 years ago. I drive a German sedan today. I had the chance to spend two days in a G8 GT. I have to say it is among the most enjoyable, highest quality, best driving sedans I’ve ever been in, and the value for the money is just outstanding. Make it a Caprice and you might very well get me back. Two suggestions, based upon the only two things keeping me from buying one now:
1) Please lose the “boy racer” snout.
2) Please warm it up inside — I just can’t live with the unremitting blackness of the G8 interior.
Thanks for listening.
Mr. Lutz: With the G6 being phased out by the end of the year, do you intend to change some features and content on the Malibu to compensate for the Pontiac’s 140,000 to 150,000 in sales for the last 2 years?
In addition the new Ford Fusion has delivered a strong sales performance in June and is the Malibu’s main rival.
One way to counter this is to offer the 3.5L V6 that has had sales success in the G6, delivers 29 MPG and can be offered on the Retail Malibu 1LT at a competitive price to the Fusion SE even after adding the SE’s standard Fog Lights and 6-way power seat. I am well aware many enthusiasts do not like the 3.5L OHV design and consider it archaic, but would counter those views by pointing out.
1. The 2010 model year will start full production in a few weeks and in some cases has already begun, so there is little GM can do to the Malibu for 2010 except move features around the trim levels.
2. The 3.5L V6 has a loyal following of approx. 15 million GM vehicles that have various GM OHV V6 engines in a variety of displacements between two desions (Buick and Chevy) and GM can attract at least 6 million of them to consider a 3.5L V6 Malibu for the 2010 and 2011 model years.
3. GM could sell 36,000 to 60,000 Malibu’s a year with the 3.5L for a total between 2010 and 2011 of 72,000 to 120,000 vehicles, and to be honest think those numbers maybe low given the potential maket especially if GM were to let it out that 2011 was the last year for the 3.5L in the Malibu.
4. The Impala uses this engine and with the G6 going away a large base for the 3.5L production is gone, the Impala will be around for at least 2 more years as will the current generation Malibu, sharing this engine will spread costs and maximize engine plant capacity.
5. It gets 29 MPG and if GM would do a “XFE” update to it, 30-32 MPG maybe possible minimizing any CAFE concerns while selling over 100,000 new Mallibu’s to customers who without it will just hold on to the 5 to 20 year old GM car they are currently happy with.
I have spoken to many owners of GM cars with a version of a OHV V6 and they all loved them and raved about the MPG and said they would like to buy another one, especially in a Malibu and were greatly disappointed when informed that GM did not offer it in the new Malibu. GM has improved upon this engine and the 3.5L is the latest design addressing previous problem areas. The Impala sells well with it, but please consider your loyal GM owners who would like a new Malibu with this engine over the Impala and to date have held of purchasing a new GM car for this reason.
When the Malibu is updated in 2012, GM can then change the engine lineup to an all DI line and copy the upcoming LaCrosse’s 2.4L, 3..0L and 3.6L (maybe in Turbo trim for an AWD SS?). In the mean time it seems to me GM should spend it’s dollars more in marketing fabulous new models like the LaCrosse, Terrain, Equinox and Cruze and make strategic low cost updates to the great current models like the Malibu.
I think the current Malibu is a fine car but will be a “transitional” car and should have a model to satisfy past GM owners until they are ready to make the change to the 2012-2016 Malibu with updated DI engines. Why risk losing them when you can sell them 2 Malibu’s and 2010-2011 one and a 2015-2016 one?
Bob: The Caprice name is a loser for a car like the G8. Who says you have to change the name? Isn’t this the new GM? \
Bob GM needs a diesel. A 3.0L equivalent to BMW/Merc/Volkswagen. Excellent economy and torque. Would love to see a Chevy Caprice 3.0d. Imagine a big car, that can seat 5, carry luggage, ride and handle with the best of them, have the power of a V8 and the economy of a 4. Who needs an SUV with a car like that? Who needs a Hybrid? A bit of tweeking and the Chevy Caprice 3.0d can be the new GM’s first true world car (sorry but the Chevy Cruze is no Mazda 3). Also see if you can work out why an Opel Insignia is so much better than a Daewoo Cruze and apply the “difference” to all new GM cars. That would be great – thanks George.
If Cadillac really is to take on Lexus, BMW, and Mercedes, it needs to go RWD. Audi was successful going with AWD, but their cars are engineered with RWD bias and good weight distribution. I’m not even including Acura in the list because they produce FWD redressed Hondas that do not belong in this category. Puttting the DTS/STS replacement on a FWD platform will ruin the repuation that cadillac has worked so hard to regain. The global reception of the CTS is proof enough that RWD is the right direction. And with a RWD smaller 3-series competitor, Cadillac will once again become the Cadillac of cars.
Audis are based on FWD platforms. A car with FWD as its base is not “RWD biased” nor do such cars have good weight distribution. Audis have transverse engines and lack 50/50 weight distribution and yet Audis sell all over the world.
Hey Bob, can you do something about the Cruze? Its getting tepid reviews everywhere its been sold so far. Please fix the handling, make sure it has a powerful base engine, and for crying out loud, get them to change the freaking name! Bring back Nova, keep Cobalt, anything but Cruze.
And when is Chevy going to get better advertising? I just saw an ad for the new Equinox and it was boring and lame as usual, with the same annoying voice over. I’m grateful that you dumped the ‘American Revolution’ idiocy, but how about bringing back ‘See the USA in your Chevrolet’, and ‘Like a Rock’ for the Silverado. Speaking of the Silverado you should really put the Avalanche front clip on it-the current Silverado is a dog.
You guys are paying for advertising that they obviously put very little effort into. Stop wasting your money!
Also, how about a Compact 4 door RWD Sedan based on the Camaro suspension? I bet a Chevy Chevelle would sell like hotcakes in California, your weakest market.
Sheth,
It’s certainly possible to build a great luxury car on a FWD-based platform. However, I contend that this market is better suited for Buick. Cadillac needs to move upmarket in status and image. You aren’t going to do that sharing FWD platforms with Chevy (epsilon II). It’s done with sharp designs and sporty handling. It’s done by winning over the car rags. It’s done by offering a modest amount of exclusivity.
I thought GM finally understood this with the CTS. They spent an obscene amount of money developing the original sigma platform exclusively for Cadillac — the CTS, STS, and SRX (and V-models). Was the program profitable? I couldn’t tell you. But for the first time in decades Cadillac was a talking point among a stable of floundering GM brands. Doubly so since the release of the new CTS. The rumours of GM nixing the alpha platform in favor of the SWB epsilon for an entry level Cadillac only makes me shake my head in disbelief.
The top luxury brands and vehicles in the world are RWD bias. The buying public might not ever notice the balance and handling, but they’ll surely tell their friends about it. Chasing Audi and Acura for sales volume is a suckers game. That isn’t the demographic Cadillac should be targetting. You build a sustainable luxury brand by building up an image.
Mendo:
I know all about RWD and I understand where you’re coming from. Here’s the bottom line- most flagship sedans are big and heavy and do not quality as sports sedans. RWD is most important on smaller, lighter cars that need ideal weight distribution to acheive stellar handling. The 7 series and S class are not sporty and never will be due to their size. RWD is essential if you want to channel 400+ hp through the the wheels but I don’t think GM has plans for many vehicles with that kind of power going forward. The hp race is likely about to come to an end for numerous reasons. Audi has shown you can easily have 350+ hp in an AWD vehicle and Cadillac would be fine with a 350-400hp turbo V6 under the hood of their flagship. Big mega hp V8s are going to be become increasingly rare and GM has already stopped development of their replacement for the Northstar.
The CTS isn’t going anywhere and its competing in a segment where handling and balanced weight distribution are more critical.
Subject: Your latest Buick advertisement
2:17 [Comment From Mike Ruby ] Bob, will we see in improvment in GM commercials now that you are in charge of them? The new Buick commercial is very embarassing. I’ve had many family members and friends comment on how dumb it is, plus some of the other poorly done commercials on the Traverse and the “Surprised” commercials that played for about a week over Christmas.
2:18 Bob Lutz: Let me put it this way: That Buick commercial tested very well, which is not the same as saying that it’s an effective ad. I think you will very quickly see a drastic change in the tone and content of our advertising. And if you don’t, it will mean that i have failed.
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If you are referring to that Buick ad with the avant-garde, artsy-fartsy director-type guy positioning some other artsy-fartsy types to wave their hands around a Buick, how can that have possibly tested well?
If that “tested well,” you need to hire another marketing consultant to run your testing and focus groups. I can’t believe a Bob Lutz would have signed off on that ad, no matter how well it tested.
Instead, why can’t you use simple, direct ads that:
1. Tell us how well a car is made?
2. Tell us how good a value it is for the money?
3. Tell us how durable and reliable the car is?
4. Tell us how mechanically advanced the car is?
5. Tell us how it is engineered?
6. Tell us the car is made in America by Americans?
Bob:
If you are seriously thinking about bringing back the Pontiac G8 as a Chevrolet, I think you would be making a serious mistake by calling it a Chevrolet Caprice.
1. The Caprice name just doesn’t seem right for the car. The G8 is about youth, power, handling and performance. Caprice may have been a sexy name circa 1966, but today the name alone seems old and dated, let alone the images it evokes of being an American bargain-lux land boat. And what is it with GM and these faux French names (Monte Carlo, DeVille, LeSabre, Riviera, etc)? They all sound tacky.
2. Caprice has a lot of negative connotations that detract from the G8. Caprice isn’t sporty, and evokes image of the 1978 model you kept making for 11 years, and the bulbous land boat that replaced it. To paraphrase Bob Lutz, Caprice is a damaged brand. On the other hand, since Impala and Bel Air were both killed-off in the 1970’s, before the horrible years of GM RWD cars. The Bel Air was also such a low volume model by the 1970’s, I don’t think anybody remembers much about it.
3. When I hear Bel Air I think of the classic 1957 model and I also think California and sun. Bel Air is still an upscale community so the name still has some panache and the nameplate dovetails with the Malibu. I think Bel Air will evoke positive images given that the 1957 model is a collectors’ classic. And what better name for a car that has gotten such great reviews?
4. I remember how excited I was when the Impala came back just for the name alone and the fond images I had of cars from the 60’s. Plus, the last model was a sharp car, though still handled like a boat. I don’t think “Caprice” gets the juices flowing like Impala does, but just think of the buzz factor with the Bel Air name coming back. (Bob Lutz being head of marketing now should be able to appreciate that.)
Anyway, just some thoughts…….
“Caprice has a lot of negative connotations that detract from the G8″
Danny K.
You’re right, Caprice means nothing and is — as you say — negative. I’d much rather see the G8 continue as a Buick Wildcat or Cutlass. Either would be a solid American name with a positive history.
“And what is it with GM and these faux French names (Monte Carlo, DeVille, LeSabre, Riviera, etc)?”
To which I might add La Crosse and Lucerne. Why would someone want to name an American car after a city in Monaco, the French word for “The Cross,” or a city in Switzerland? (I’ve been to Lucerne — it’s a very nice city, but hardly appropriate for an American car.)
And now we’ve got “Cruze.” Exactly what rprocess does GM use for naming their cars?
You’re right, Caprice means nothing and is — as you say — negative. I’d much rather see the G8 continue as a Buick Wildcat or Cutlass. Either would be a solid American name with a positive history.
Since GM loves market research so much, it shouldn’t be too hard to find a ton of Caprice-haters out there. When you have such a good car, why saddle it with unnecessary baggage like that?
Likewise, with the upcoming Buick Regal. Why saddle what is supposed to be a good car with baggage of tacky cars that didn’t look as good as their Oldsmobile Cutlass sibling or sell as well? A new name might be in order, but they need to get people through the doors and build some volume for those Buick dealers. A Regal will fall flat, but a well-excuted Cutlass will absolutely create a curiosity factor. I would use “This is not your father’s … Cutlass” as the tagline. BELIEVE ME, most people 50 and under thinks REGALS WERE TACKY CARS.
Finally as to the Buick Wildcat: I’ve never driven a G8, but from everything I’ve read the car doesn’t sound like Buick material. Buick is supposed to be about understated elegance and soft, quiet comfort and front wheel drive. GM can’t start muddling and cheapening that brand like it has in the past. The G8 belongs as a Chevrolet.
“Buick is supposed to be about understated elegance and soft, quiet comfort and front wheel drive.”
That may be true, but Buick needs a serious shot in the arm to show people they are not just for the geriatric set.
By the way, have your staff start trolling You Tube. There are lots and lots of old Chrysler and L-M commercials there that are far more interesting to watch than the commercials that run today. There’s someone even serenading a Chrysler New Yorker.
Since you got me on the topic of names, there has got to be a way for you guys to work in a Chevrolet or Buick Cutlass. How can you abandon Cutlass, which was for several years a number one seller? I think a Buick Cutlass is far more powerful as a head turner than the upcoming Buick Regal …….. Regal sounds so formal, so old, so faux ……… and again, think of the buzz this would create. Just the name alone might get people into the showroom to take a look. You sold far more Cutlasses in the 1980’s than you did Regals, even though they were essentially the same car.
I also like the Aurora name, but I realize it doesn’t have a long history. Cutlass I think would be a knockout.
Bob,
In your new role as communications czar at GM, you need to stop making reference to the competition. That is a Marketing 101 no-no – and you see it EVERYWHERE at GM. From dealer emails – ‘test drive the Malibu, it has a better warranty than Camry or Accord”, to magazine ads to TV spots – you guys always give your competition free advertising. And, it makes GM look like the underdog to constantly compare themselves to the top volume brands. Even the new LaCrosse magazine ad – fresh new look, new sheet metal, stand on it’s own attitide – mentions Honda and Toyota. Bad Bad Bad. GM should NEVER mention the competition – NEVER. If you want to be at the top, you need to act like you already are.
GM needs to step out and talk about the product. The artsy fartsy skinny director BS in the Buick Enclave commercial – what is that? The Enclave has plenty of great features to talk about – great styling inside and out, quiet and efficient powertrain, Bose surround sound stereo, HID headlights, etc etc…show me the features that make me WANT to own a Buick. Prove to me that you have the reliability with a 5 yr, 60,000 mile bumper to bumper warranty. Show owners talking about why they are thriiled to own GM – again. And stop Bob – stop right now – stop the constant ‘we’re as good as or better than Toyota or Honda” rhetoric. If the cars are as good as you say that they are, they will sell themselves. The buyers know who they are, you need to build the interest in the brand and in GM. Don’t feel sorry about yourselves, prove why you are better.
George:
I’m not sure what world you live in but Gm is the underdog to many people. They mention their competitors because they are challenging perceptions. You seem to be indicating that only GM does this but that is not true. BMW has a commercial for their free maintenance when they actually show LExus and MB models being passed by a 3 series. Hyundai mentioned numerous competitors when launching the Genesis. Nissan launched the Altima by copying Lexus commercials from the 80s and bragging about how their affordable car was just as refined. Acura has a commercial out now in which it brags about having superior resalve to other import luxury brands and the badges are shown in the commercial. When the Mazda6 was launched all the ads noted how that car exceeded Camry, Altima and Accord in various ways. It’s done all the time.
The Lacrosse print ads do not mention Toyota or Honda- it mentions Lexus and Acura and that is fine. The ad is telling you the Lacrosse offers exclusive content that those Japanese competitors lack in their FWD luxury offerings. Nothing wrong with that in my book. To suggest that you are giving free exposure to Toyota and Honda is a bit silly. Do you think anyone watching a GM commercial is unaware of Toyota and Honda products?
“And stop Bob – stop right now – stop the constant ‘we’re as good as or better than Toyota or Honda” rhetoric. If the cars are as good as you say that they are, they will sell themselves. ”
How can a car sell itself if people aren’t aware of the car? The point of adversiting is to boost awareness of a new product. I totally disagree with your inference that GM should be passive and wait for people to come to dealerships on their own. They have done enough of what you are suggesting and the results are evident. Consumers will not compare your products to the class leaders unless you challenge them to do so.
By the way we just had the coldest June on record in the East, and are in the middle of the coldest July.”
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This is why I LOVE Bob!
I have no doubt that GM will be the company at the forefront of the mileage race for a long time to come!
Bob,
If you want to create a Chevy Caprice, why simply re-badge the Pontiac G8 when Holden already builds a long wheelbase Chevy Caprice for the Mid-East markets? I sat in some of these types of vehicles and they are really nice! Lots of rear leg room and a large trunk – perfect for all the stuff you sometimes need to carry when you have three children. Also consider that the G8’s wheelbase is only 4.3 inches longer than the current Impala.
Also, I hope the New GM realizes the importance of the auto enthusiast, not to mention those who are fans of GM products, and continues to provide the types of cars these customers are most interested in. Mainly, V8 power and RWD!
Glad to hear you are staying Mr. Lutz. Two comments – I own a Pontiac Solstice (my 14th GM vehicle). Why not keep the Solstice and rebrand it as a Chevrolet ? I know it’s a niche car with relatively small sales but it’s a blast to drive and the most striking, unique styling of any GM car.
Second, if GM ever decides to build the Buick Wildcat I’ve seen on GM Insider (I think), I’d buy one in a minute. The new LaCrosse is terrific but the Wildcat would be even better.
Bob,
G8 as Caprice works for me. Better yet take Holden’s Commodore Aportwagon and make it a proper Nomad. The G8 Sport Truck was my favorite after the Solstice Coupe which I just bought. G8 Sport Trck should then become… right, the El Camino. Not too much of a stretch though since I believe all exist right now in Australia. I’ll buy an El Camino. V6 is fine for me. Maybe a turbo….
Welcome back, Bob. I’ve always thought that you and people like you are the key to success in the automotive industry and in the wider world in general. Building automobiles requires the passion of an artisan, the knowledge of a scientist, the patience of Job, and the timing of a Swiss watch (yeah, I put that last one in there just for you! LOL). When you were at Chrysler you made me a Mopar guy. When you moved to GM, I became a GM guy. That’s the effect you have on people. Keep doing what you are doing.
Now as I read through the responses I noticed two gentlemen exchanging a few words. JoeD and Sheth Jones. Let me start by correcting Sheth. The A8 has never had a transverse engine. Most Audis (with the exception of the A3) have longitudinal engines, even though they are, in basic form, FWD. JoeD is somewhat incorrect in saying that nobody builds a FWD luxury flagship. The A8 is available in FWD in non-North American markets. I will agree though that image is everything in that segment. Leather seats? Must-have. V8 engines? Must-have. For 2WD applications, the driven wheels must be aft. The market is even dictating that the transmission have more than 6 gears, when the engineers will tell you that there is nothing to be gained. Whether it matters or not is not the point. For Cadillac to succeed it must first be seen in the eyes of the public to at least match the competition, and then later proven to actually exceed it.
I am a Jamaican who rarely sees American cars here. We too hold American cars with little regard. As close as the US is to us, we prefer to buy Japanese, European and Korean (in that order). I would love to buy an American car here, but the first problem is the engines are way too big. Our import laws make importing larger-engined cars very expensive. This is why I welcome the likes of the Spark, the Cruze, the LaCrosse, and all the others that are available with sub-3000cc and sub-2000cc engines. Hopefully your local dealers GM-Challenger will brand and market them properly (they have never been convincing with their marketing, I must confess). Another issue for me is that I would love a diesel. Unless I opt for an Opel (we no longer have a local dealer) I have no choice for a GM vehicle.
Bob, WELCOME back, the caddy XLR is being dropped from the line up, here in so cal lexus $100.000 cars are all over the place, why not build a $100.000 caddy sedan rear wheel drive and market to the lexus and bmw croud? GM needs to pull these kool-aid drinkers out of toyota and get them in Detriot iron. thanks
bluebaby
Just read the Wall Street Journal article on the possible return of the Chevrolet Caprice. Excellent idea. I think there are still many consumers who prefer the handling characteristics of a rear-wheel-drive car. In addition, could the new Caprice be a viable replacement for the Impala in NASCAR?
Bob,
You need to do something about all these dealers marking up the price of the Camaro. They are short sighted and are damaging the long term prospects of the car and GM. The Camaro is one of your few cars that will win you conquests from other manufacturer’s due to it’s styling and overall desirability but the high mark-ups are losing you customers and potential future GM owners. This past Saturday a dealer by me had 7 Camaro’s on display (apparently traded with dealers in the midwest that are not part of the new GM) so I stopped in as did about 7 other folks. With the exception of one person everyone walked away laughing when they saw the prices that were being asked. (LS & LT’s were going to 5K over list, SS Auto – 7K over list and the SS-Manual was a whopping 10K over list!) In that hour alone you may have had 2 or 3 new GM owners instead you got none.
While dealers are private entities you should be able to put some preasure on them to eliminate this practice as much as possible. People shouldn’t get so excited about the prospect of buying a Camaro and then have that excitment turn to dissappointment and anger when they see the large markups.
Instead of keeping the G8 as a Chevy and naming it “Caprice,” please consider this: “Bel Air.”
If the current G8 was given small, modest little suggestions of tail-fins…
and allowed to keep all the V6 and V8 goodness…
and was then named Bel Air…
and heck, go ahead and pop on a set of simple, HID single-lamp headlights like the classic ‘57 model…
And if this car then was sold into a marketplace in which the Baby Boomers are retiring and their children are just entering their prime earning years, despite the present-day economic troubles…
It is unlikely Chevy and GM could keep up with the demand from at least two, if not more, generations of fans/consumers. In one move Chevy would outflank the so-called retro engineering of VW’s New Beetle, the new/old Ford T-Bird of several years ago, and the new Mustangs and even the Camaro.
The second coming of the classic, big, American Bel Air would be the big bang that announces GM’s complete recovery to prosperity and global dominance.
Agree that Cadillac should take on BMW and Mercedes and Buick take on Lexus, and Acura, and Infiniti.
Lets advertise, “Buick is unsurpassed in quality by Lexus.” That would help to raise perceptions and the quality reports have shown this. GM execs should say at every opportunity that Buick is generally unsurpassed in quality by its Lexus competition.
Yes, Buick is targeting the Lexus competition.
The Camaro is raising eyebrows among the Eurosport buyer. It has the performance and the looks. Its a strong competitor for the BMW 3 series.
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Improve American parts content numbers especially accross the board. Especially on any potential Chevy Caprice from the G8.
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Solstice becomes Chevy Stinger
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The new Malibu is selling a strong percentage of the higher trim package. This again supports what we’ve been saying that GM should target the rising professionals, affordable luxury sport segment. With the Buick LaCrosse, GM should offer the base ecotec 4. We’d rather have the small V-8 SIDI – AFM than the 3.6 V-6 if we had the choice.
How to GM can best the foreign competion:
Malibu engines should be:
Ecotec 4 standard. 4 cyclinder should always beats Accord fuel economy not necessarily HP).
3.6 LTZ hp= 281+ (Malibu always meet/beat Accord/Acura TL on top line HP).
Allow no verbal advantage on these key points to the Accord or Camry whatsoever. Malibu LTZ
s performance is “unsurpassed” by Accord or Camry and the “standard Malibu is more fuel efficient than either Accord or Camry.” Always respond to any media comparison claims of Malibu vs Accord or Camry. We believe the Malibu is ahead of the competition . . .
Offer a special wood trim option package on Malibu LTZ to beat Avalon.
The Malibu received a positive story from the Washington Post and GM execs had the right responses:
http://www.washingtonpost.com/wp-dyn/content/article/2009/07/07/AR2009070702651.html
LaCrosse engines should be:
*Ecotec 4 optional.
*3.0 SIDI V-6 standard.
*small displacement V-8 SIDI AFM VVT (try 3.6 to 4.9) HP= 310+. DOHC or OHV. Buick V-8 goals: Slightly beat Maxima V-6 on hp. Should offer good economy.
CTS engines should be:
*3.0 V-6 SIDI standard. (Always meet/beat Lexus ES on fuel V-6 economy, not necessarily HP)
*small V-8 SIDI AFM VVT option (try 3.6 to 4.9) DOHC or OHV. HP= 310-330 should slightly beat infiniti G37 V-6. Fuel economy 18 and 26+ (small V-8 goals for CTS: Always slightly ahead of targed foreign competition V-6 on HP, but good on fuel econony.)
GM cars that best foreign competition on top line HP – V-series, Corvette, Camaro SS = 400 hp +.
New STS (larger trunk) top line Cadillac sedan offering
*3.6 V-6 SIDI standard 304 hp.
*small V-8 SIDI AFM VVT option (try 3.6 to 4.9) DOHC or OHV HP= 310-330. Fuel economy 18 and 26+ (small V-8 goals: beat Infiniti M V-8 on hp. beats Maxima V-6 on HP, meets or beats Infiniti G37 sedan on HP
STS-V. Wood trim wood steering wheel on all STS. Offer high priced 6.0L V-8 – 400-500 hp, STS-V goals meet or beat Mercedes and BMW M-5 on top line HP. Do not allow verbal advantage for Mercedes or BMW M-3 or M5 on key data.
Drop DTS and XLR for now and add entry level Cadillac Roadster and focus on beating entry level luxury foreign cars like Lexus IS. BMW 3, and Mercedes C. Consider 4 cyclinder option for Cadillac entry level models to make profits on small cars and to leverage CAFE for GM’s top end offerings.
The engine above options provide GM the ability to target the luxury sport buyer and best the foreign competition on key advertisable metrics either on fuel economy, performance, or the ability to find a nice small V-8 to energize base customers. The above would probably give GM better averages on CAFE since many CTS buyers would opt for the Ecotec. After market kits to give the Ecotec a turbo boost would be an allure for the cross-over tuner enthusiasts.
The LaCrosse and the CTS should offer a wood trim package with wood steering wheel. (Every STS should have the wood steering wheel standard).
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Small cars at Chevy and Buick should offer upgrade packages for nice seating.
GM should offer a luxury sport small car with a 4 cyclinder at Buick and to Cadillac to target the Lexus IS on style.
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The Riviera’s impact should firmly establish Buick as a luxury sport brand to target Lexus.
The Riviera can be a luxury sport sedan to boost sales numbers or the Shanghai Riviera concept.
Buick should debut a racing concept with a small displacement V-8 SIDI that beats any Nissan/Infinit/Acura/Lexus on hp.
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Build GMC Denali XT concept.
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GM and American car makers offer the better value. Foreign competition is overpriced for the car. When our neighbor traded a two year old Mercedes he took a $30K loss on MSRP.
However, the media is once again attempting to create distortions and half truths with this story circulating:
The most overpriced automobiles in America
http://www.msnbc.msn.com/id/22496801
The numbers they use are not based on how much one pays for the new vehicle, but how much discount is given from the MSRP, so called residual values from MSRP instead of calculating the residual value from the selling price, and so on. Media and researchers seem to manipulate data and comparisons in order to whip up distortions and half truths.
GM should challenge these sorts of reports or change the way it offers incentives.
GM offers loyalty cash for trading in a GM vehicle this apparently is not taken into account in GM’s favor in these sorts of calculations. So, perhaps GM should just value the GM trade in at $1000 more instead of giving loyalty cash or a discount. Offering more for trade-in value instead gives the customer a better sense that they are being given a fair deal and may prevent them from going elsewhere to shop.
Ditto to Paul Hardwick’s comments above. Keep the Solstice in one form or another, and consider moving the G8 to Buick–perhaps as the Wildcat.
I agree that the Solstice should go to Chevy as a Stinger. Agree that Buick should be the focus right now. The G8 could go to Buick as a Grand National, but only if it has at least 60% American content. However, an American made Riviera sedan/coupe with a V-8 option is much more important for Buick at this point. It could take cues from the Shanghai Riviera concept.
Buick Riviera.
3.0 SIDI V-6 standard
small V-8 SIDI VVT option.
Wood Trim standard. Wood Steering wheel standard.
Sun Roof Standard.
Heated and cooled seats not necessary.
I hope none of this name-game stuff going on here is taken seriously by the GM staff.
The name matters little compared to what the product is, especially for people who are not all ga-ga over these ancient model names from Chevrolet and Buick.
If you build more of the right stuff, the name isn’t the difference between success and failure.
If you build the wrong stuff, the best name in the world won’t matter.
I still think Pontiac could have been saved. The whole brand could have been positioned as a BMW fighter at a Pontiac price. I am not saying that Pontiac could compete against BMW as a luxury car, but as a performance car I think we could have given them a good run for their money. Pontiac could have: kept the Solstice and G8, brought the Holden Caprice over as a Bonneville, done a Firebird off the Camaro platform, create a jaw-dropping, GTO, and then replace the G6 with a line of small, RWD cars.
Well, I guess we will never know what could have been.
Agree, that’s why the Buick Riviera has taken on greater importance in the line-up.
Without a GTO, Buick could offer the G-8 GT as a Grand National. But the American parts content has got go up to at least 60% for it to be credible.
Perhaps one day Pontiac’s best models like the GTO could return.
Rick Wagoner should have kept Oldsmobile and cancelled Buick and Pontiac at the time if brands had to be cancelled. That would have better positioned GM at the time. Oldsmobile embodied affordable luxury sport and GM had built the brand to a point where it was ready to go full bore.
But it looks the we car enthusiasts are stuck with Buick, the Camaro, the CTS, and the Malibu for now. We’ll have to forsake our hopes for a new Firebird, GTO, Aurora, and Cutlass Supreme, and all the rest. So we’d better make the best of it and get them to build some great cars.
If they make a great Riviera, maybe we can emerge victorious after all.
>> Rick Wagoner should have kept Oldsmobile and canceled Buick and Pontiac at the time if brands had to be cancelled. That would have better positioned GM at the time. Oldsmobile embodied affordable luxury sport and GM had built the brand to a point where it was ready to go full bore. <<
You are right Edwin. When I think Oldsmobile, I think of only good, positive things. When I think Buick, I think mostly of nothing, not anything positive or negative, not anything of passion, just nothing.
“Why not keep the Solstice and rebrand it as a Chevrolet ?”
Excellent question from Paul Hardwick. I absolutely agree. Whereas the Solstice showed relatively modest sales in comparison to other GM cars, it, after all, could serve as an additional “image-builder” for the Chevrolet brand, which doesn’t offer any similar model yet. The G8’s afterlife as Chevy Caprice already may bring former Pontiac customers into Chevy-dealer’s showrooms and a Chevrolet version of the Solstice may do the same.
One annotation regarding the Caprice. To my personal taste the Caprice, obviously planned for the US, rather should look like the Chevrolet Lumina, on sale in Middle East. IMHO, the front fascia as shown now at Automobilemag doesn’t look as sporty as it maybe should. See: http://www.automobilemag.com/features/news/0807_bob_lutz_pontiac_g8_chevy_caprice/index.html
In contrast, the Lumina’s front fascia (very similar to its original, the Holden Commodore) fits better to the character of this vehicle, which is supposed to keep the G8’s genes.
Your best customers are GMfamily. My family has bought dozens of GM cars…be happy to supply details…And you talk about a great program for FAMILY members to buy cars at PEP price. But there is NO WAY for a family member to get the car info. My daughter has tried for two days, no success. I phoned the car purchase 235-4646 office, and explained to the lady that the FAMILY member in a different state doesn’t have a password, so unable to view cars. Using my computor, I tried to use the Email key at the top of the car detail sheet, but only the “rules” were Emailed. No car info. The “help” lady had no help.
Maybe this is “old GM “. Great ideas, but no way to make the sale. Karl.
Regarding the comment on putting the fuel filler on the driver’s side of the car. My 2008 CTS has it on the passenger side, as did most of the foreign cars that I have owned. When I pull up to the pump this allows me to open the driver’s door to exit the car without having to worry about the door hitting the concrete island surrounding the fuel pump.
Please keep the fuel filler on the passenger’s side of the car.
Would like to see the G8 saved as some other model, it really is too good to waste.
Please keep up the good work in overall design. The interiors on GM cars used to be crap but I love the interior of my 2008 CTS. Likewise with the other newly introduced GM cars (Malibu, LaCrosse, Camaro, 2010 SRX, etc).
So happy to see you’re back Mr. Lutz as you have been a tremedously positive force within GM since you showed up. Finally real cars being produced rather than the generic transportation appliances that GM made for far too long.
I wish I could send an Email to Bob Lutz. The GM “communication” is always ONE WAY. That’s broadcasting, not communicating. Ever hear of TWO-WAY communication? That means that every so often, you have to stop broadcasting, and LISTEN to your customers. Hope the NEW GM Company wil be open to listening. Karl
Karl:
Where I’m from blogs in which GM people respond and live chats with GM execs counts as two way communication. Not sure how you define “two way” but it must be differently from the rest of us. How much two way communicationis going on at Ford or Toyota by comparison?
Thanks to Bob Lutz, America still has hope for great cars.
I recommend GM keep the Great American Pontiac brand and sell the G8 through Buick/GMC dealers just at the Maxima is a single brand sold by Nissan dealers and Avalon is a single brand sold by Toyota dealers. Would be a great way to keep Pontiac alive until better days, then rebuild the division one vehicle at a time. The same should be done for Oldsmobile. Sell a single vehicle with the Oldsmobile name to keep Americas oldest brand alive, then rebuild the division when better days arrive. Just my two cents! Thanks for listening….
Seems to me GM is afraid of competing with lexus in the way of adding a large sedan to compete with lexus and bmw, since your already stopping producyion of the XLR wy not compete in this market here in so cal were all you see is big $100.000 lexus machines, dammit GM can do it.
bluebaby
Bluebaby:
Only one Lexus costs more than $100k and that is the low volume LS600h. I doubt you see lots of those models around since Lexus barely sells any. Even the normal LS460 isn’t selling well anymore.
Bob, Calling customers or potential customers names like ‘lemming’ or saying they lack any sense of boldness is one surefire way to ensure they don’t darken the doorstep of any GM dealers.
What is wrong with you?
I agree with what he said. If you are unwilling to think idependently and simply buy what everyone else buys or let Consumer Reports pick your cars you probably drive a Toyota or Honda. Bob didn’t insult anyone, he just spoke the truth. As you can see by the comments on Fastlane, many Honda/Toyota fans refuse to engage in any objective comparison of GM products to Japanese brand products. Notice how most of the people who swear GM can’t compete don’t actually test drive any of GM’s current products.
Sheth jones,
At times you sound a bit like a GM lemming.
Merlin:
If I was a lemming I wouldn’t engage in independent thought and would likely be repeating some of the ideas embraced by those who swear Toyota and Honda can do know wrond. Lutz is right, people who don’t bother to do research before buying a car are the ones who head down to a Toyota or Honda dealer and buy something without even verifying if it’s the best product available.
Independent skeptic,
There are definitely customers that are doing something that in many ways meets this definition of “lemming”.
“doomed conformist: a member of a large group of people who blindly follow one another on a course of action that will lead to destruction for all of them”
http://encarta.msn.com/dictionary_1861696135/lemming.html
People who buy a Toyota Camry over a Chevrolet Malibu for the simple reason that they simply MUST have the Toyota badge on their car even if it’s an inferior product are, putting it quite simply, lemmings. There’s no other way to describe them.
To Bob Lutz.
The solstice should be rebranded as the Chevy Chaparral. Jim Hall would be proud.
” whether you are a lemming-like follower of current trends”.
Bob, maybe it’s the succession of GM crap boxes that I’ve dealt with over the course of my life, From the piece of crap Monza that caused my AAA membership to be cancelled back in the 70’s and my Father’s 75 Corvette, to the rental G6 that made me late for an important meeting because of a flaky tire pressure sensor that sent me in search of a gas station (only to discover all of the tires were fine.) To many Americans, GM is the American Yugo. You’ve destroyed the brand,
You also seem to be totally clueless about branding. If you are going to have a performance rear wheel drive, it has to be an Impala, not a Caprice. That front end is fine for the Malibu, but maybe you could utilize the Camaro front and rear ends with quad lights on the front.
Another issue you have is that you’re inept at public relations. Insulting potential customers is not going to get GM back off the ground. You were part of the problems at GM and need to leave so that the company can move forward.
So if I understand you correctly you believe GM has poor quality because of your experiences with their vehicles in the 1970s? You also believe that a tire pressure monitor that actually warns you of low tire pressure is a sign of poor quality. Interesting. TPM systems set off warnings once pressure goes below a certain threshold- that doesn’t mean your tire is on the verge of going flat and it doesn’t mean you have to pull over right away. Its a warning telling you to inflate your tire in the near future. That’s not a quality issue and it shows how far you are reaching to find fault. BAck in the day quality problems were things like bad engines and transmissions. Now we have people swearing off GM products because they feel the TPM system is malfunctioning.
For the record Insideline.com maintains a fleet of long term test cars and 2 out of the last 3 to be towed were Japanese. Their 370Z just had its shifter get stuck in place leaving the car immobile. You can fool some people with the mythology about Japanese quality being far superior- but not me.
Let me get this straight. You are using two cars that are more than 30 years old to justify your insistance that GM cars are rife with problems? And FYI, all cars that have government mandated tire pressure sensing systems (every manufacturer is forced to use them) have problems with “flaky” sensors. It’s an inexact and unproven technology foisted on Americans by politicians in an effort to protect a small number of people who seem to have lost their ability to operate a tire gauge and air compressor over the last 100 years.
Mr. Lutz, now that you have taken back your seat, I would like you to right what fritz has wronged: please bring back Pontiac. Instead of killing the company that brought GM so much fame and fourtune, restructure it as well. Dont kill the whole company just because Fritz said so. Instead, cut a few model production lines in the Pontiac line up. just please dont let Pontiac die. If you let Pontiac die like Fritz had planned to, GM will lose millions in customers and support. Please see this from the “peoples” point of view. Please save Pontiac Mr. Lutz!!
Let me get this straight. You are using two cars that are more than 30 years old to justify your insistance that GM cars are rife with problems? And FYI, all cars that have government mandated tire pressure sensing systems (every manufacturer is forced to use them) have problems with “flaky” sensors. It’s an inexact and unproven technology foisted on Americans by politicians in an effort to protect a small number of people who seem to have lost their ability to operate a tire gauge and air compressor over the last 100 years.
I think killing off the Pontiac brand was a big mistake. Pontiacs are selling better then the Buicks. I agree with rebadging the G8 as it is a great car. But I think it would be better off rebadged as a Buick Grand National. Thats my two cents.
To the Blogmeister: Your heading at the top says “78 comments,” but right now, I can see nothing earlier than 14 July. How do we view earlier comments?
Blue Flame:
This is fixed now. Sorry for the inconvenience. It was a glitch that sprang up when we added the threaded comments earlier this week. Thanks for the heads up!
Will Stewart
Blog Editor
Bob,
Dont let Fritz kill the G8 as a Chevrolet.
It seems he thinks he can justify killing a good product just because he is “not a fan of re-badging”.
No other car in GM’s line-up would offer what the Chevy Caprice can offer – It would be the only affordable 4 door RWD sedan…It would be the Camaro for customers who need a 4 door sedan.
It would be a unique entry in GM’s portfolio and hence by definition is NOT rebadging!!
No other car has inspired such a big response in blogs after your comments were publicized several days ago.. make it happen.. they will buy this one if it makes it into the Chevy showrooms!!
Lutz said: “So we’re studying the feasibility of bringing it in as a Caprice for both law enforcement and the public.”
Mr Lutz,
With all due respect, both you and I know that “Caprice” is not a proper name for a police interceptor*. The G8 would no doubt make a fine police car, but please don’t brand it as a “Caprice.”
Take the name “Wildcat” from Buick, or “Cutlass” from Oldsmobile. Either would be a good name for a police car, or just brand the police version with a separate name. Perhaps the Chevrolet Raptor after the F-22.. (After all, Lee Iaccoca did pretty well naming the Mustang after the P-51 back in the 1960’s.)
—————————————————————
* I just looked up ‘caprice’ in the dictionary. It’s not a good name for a car – especially a police car. Here’s what it means:
1. An impulsive change of mind.
2. An inclination to change one’s mind impulsively.
3. A sudden, unpredictable action, change, or series of actions or changes: A hailstorm in July is a caprice of nature.
I think you need to keep the G8 as a Chevrolet. I think that you should kill off the current Impala. It was a good car but too far down the product cycle to be competitive with anything anymore. The Monte Carlo was a great car ( I have a 2000 SS Model), bring it back. The hybrid needs to be reborn in the Malibu even if it doesn’t sell well, the image that GM is providing a hybrid in its bread and butter family sedan is a must. You need a better subcompact. The Aveo is a POS. It needs to be of higher quality and better driving. Think Honda Fit. I am not an import fan at all, but that appears to be the benchmark in that segment. A small sporty car like a Miata equivalent or a Tiburon equivalent would be great too. The best way to get the people into GM products is inexpensive cars that the youth want to drive. They are the future. You could use the new Cruse platform for a Tiburon competitor. But make it better. Buick needs a Lucerne replacement and quick. A Buick convertible is definitely a good idea. It makes people think youth!. The new SRX sounds like it should’ve been a buick. The SRX should’ve gone after the BMW x3 or x5 as its closest competitor. The DTS/STS should be RWD with an AWD option. A new Mini Van should also be on the radar. HOnda and Toyota now own this segment. Take it back for the first time ever. THe Lambda platform would be perfect for it. Also a Mazda 5 type small minivan equivalent vehicle would be great as well. The cruze platform could probably be used, or even a wagon version of the car. Mazda sells tons of their Mazda 3 wagons. Those are all I have for now for ideas.
The G8 should come to Chevy as the Chevelle, not Caprice, IMO.
The next version can be smaller and lighter and share a smaller and lighter Camaro’s suspension.
Bob,
Glad to see you are sticking around for awhile!!
Some of my suggestions for the “new” GM:
Please take care of the Corvette.
Offering the G8 as a Caprice would be a solid idea.
Take a look at turbo-diesels. The cost of diesel fuel has again become competitive. some refiners are adding diesel refining capacity. This could be a quick cost effective answer to meeting cafe requirements.
GM’s expertise in the technology area is outstanding – stability control systems – ride control systems – navigation (On-Star) etc. these need to be utilized more and promoted.
We need the Cadillac CTS Coupe (and perhaps a convertible) ASAP.
And lastly…Olds used to have a tag line “let us build one for you”. Why not setup a program for Cadillac to let customers “design” their car and deliver it at a GM facility. “Just in time” manufacturing should allow this on a expeditious delivery basis and I’d bet their would be a ton of folks who would respond with orders.
Lastly, we have a new 09 CTS that we love and hope that GM recovers as the “premier” auto manufacturer.
Ray Weiss
“Offering the G8 as a Caprice would be a solid idea.”
Ray Weiss,
The G8 as a Caprice is not a solid idea. The G8 as a Chevrolet? Yes. Calling it a Caprice? No.
Doesn’t anyone at GM HQ have a dictionary? If you do, dust it off and look up the word ‘caprice’ and then tell us if you really want to use that name again for a car. How on earth did you ever decide in 1965 to use the word ‘caprice’ for the name of a car in the first place?
Please don’t use it again.
I am not sure what’s the problem with the name “Caprice”. Well, there might be better choices, however there’s also a Chevy Caprice already in the Middle East and a Holden Caprice in Australia. Nevertheless people are buying these vehicles there, since it’s simply a great car, which Holden designed.
Gereon,
“Caprice” is a nice enough sounding word, but when you know what it means in English, it’s not an appropriate name for a car. Caprice has the meaning of impulsive, unpredictable, moody, fickle, flighty. Somewhat the same as the German “Laune” or “launisch”.
Dieter, thanks for your response. However, I am well aware, what the translation of “Caprice” into German means. Nevertheless this name obviously does not seem to hurt sales in the before mentioned countries. In the meanwhile I’d have preferred “Chevy Commodore”. This would have underlined, that it is an all-new product to Chevrolet and at the same time it had expressed some respect for Holden’s development team.
But after the sad news from the weekend, I fear, we don’t have to think about this anymore. But I still hope after all these protests GM may rethink its plans.
Mr. Lutz, what about a poll, similar as made regarding the Groove / Trax / Beat – concepts…?
I have seen mention of a plan to revive the Caprice nameplate for the Pontiac G8.
I also have seen mention of a desire to make Buick attractive to younger buyers.
I realize nameplate image doesn’t have the emphasis it used to, but I don’t know if that is by design or neglect. It is certainly part of the reason that having multiple similar cars has become a liability rather than an asset. Still, it might be worth paying attention to.
I recall the Caprice as a rather soft, fat, car — definitely not a performance car. Not even a fun car. I don’t see that as a good image match for the G8.
How ’bout reviving the Buick Riviera nameplate and sticking the G8 there? Another possibility might be the Buick Wildcat.
I recall the Caprice as a rather soft, fat, car — definitely not a performance car. Not even a fun car. I don’t see that as a good image match for the G8.
Ned Schrems,
You’re right. The original Caprice was for Chevy people who wanted to pretend they were driving Buicks. There is nothing great enough about the Caprice legacy to bring back that name and stick it on a G8.
The G8 by all accounts is a great car, thank goodness it won’t be rebranded as a frowzy Caprice.
Mr. Lutz,
PROFIT ON SMALL CARS
What we hear from GM execs and engineers are questions about how they can make a profit on small cars? Well, the answer is right here and its simple: Target the Lexus IS which is a small 4 cyclinder car and the small Acura. Buick and Cadillac can charge more. Lexus and Acura let their small car profits trickle down to the Corolla and the Civic. GM can do better than the Lexus IS and Acura at Buick and leverage the profit. The Chevy Cruze is a nice looking car so it should do well against the Civic. Lexus way overcharges for the IS and it sells for them. Acura also overcharges for its small cars.
Improve residuals and increasing sales
TRADE IN VALUE PROMISE
The way for GM to improve residual values is to have a trade-in value promise campaign rather than high rebate incentives. High rebates may seem to lure them, but the effect is illustrated below.
Buyers are more willing to trade when they the dealer offers what they perceive as a good value for their trade-in. A trade-in value promise campaign would keep the customers from shopping elsewhere. This may be one reason GM is hearing complaints about dealers, customers are feeling shorted on trade-in value and aren’t necessarily focusing on or appreciating GM’s more generous incentive offers.
ILLUSTRATION
Customer who wants to buy American but is run off:
Customer X goes to GM dealer and receives an offer of 3,000 for their trade-in and the dealer tries to sell new GM car for a good value with 3,500 in rebates and incentives. Dealer tells customer to sell their car out right would be better for them, or when customer tries to justify their trade-in value some dealers will say “come back when you are serious.” Customer feels insulted and feels their car is really worth $5,000 and goes home. Customer thinks GM dealer is greedy and doesn’t care about them. Customer wanted to buy American but feels let down.
GM dealer offers:
3,000 trade in
3,500 incentive (or more)
=$6,500 discount.
Result: Customer feels insulted and does not buy GM. Feels their car is worth 5,000 if they could sell it, so they wait to make a decision.
Customer X then goes to a foreign brand dealer and receives an immediate offer of $5,500 for their trade and the dealer tells them they can drive a new car home today. Does that sound interesting? Customer feels better since the competitor thinks their car is worth $5,500. Customer asks about rebates and incentives. Dealer says their cars have higher value and they don’t have incentive right now, but they’ll give them a $1000 discount today. Customer agrees and ends up with a foreign brand without a new GM car.
Foreign car dealer offer
5,500 trade-in
1,000 incentive
=$6,500 same disount with better impact on residual value.
Customer has been misled and now believes foreign cars are ‘worth more.’ Media and new foreign car owner go around making erroneous claims that foreign brands ‘hold their value’. GM loses market share and image.
Notice that both GM and the foreign brand really offered the same price for the new car but the foreign brand did it in such a way as to preserve its residual value at sale and at the same time took the business from GM. GM may have even offered the better value overall.
Residuals for the new cars were figured from MSRP minus dealer incentives do not necessarily count what was traded. GM should offer a trade-in value promise offering customers a better trade-in value but fewer incentives. The result would be happier customers who felt they had received a fair price for their trade-in instead of wholesale book value.
Does anyone disagree with my analysis? Is this what has happened?
Dear Edwin, I totally agree with you. The higher trade in works well. Years ago I traded in a car on a used minivan and was blown away by the amount of the trade in. Even though I totally understood that I wasn’t getting a discount I still felt good about getting so much for my trade. Maybe instead of rebates on selected models GM should offer their own cash for clunkers program. If more cars were taken off the used car market in a GM cash for clunkers program, the price of used cars would go up. In any case Edwin you are a genius.
Sincerely, Ray Burns
Malcolm: You said: “The best way to get the people into GM products is inexpensive cars that the youth want to drive. They are the future.” This statement is dead on, but there is one brand name missing from that line: Pontiac. Pontiac is the ONLY brand that is geared toward people from ages 16-50. Pontiac makes the cars people WANT to drive, not the stuff that you are suggesting such as: “A Buick convertible is definitely a good idea. It makes people think youth!. ” WRONG! Who in there right mind would drive a Buick?!! Buick is an old mans car, and it should have been killed years before Oldsmobile was. Younger people want affordable, fast, and fun to drive cars. The youth want Pontiac’s. And, THE G8 SHOULD NOT, WILL NOT, AND CANNOT BE RE-BADGED AS A CHEVROLET!!! instead of making another re-badge, just keep it in the Pontiac line. PLEASE SAVE THE PONTIAC LINE BOB LUTZ!!!! you can cut all the model lines except the G8 and the G6. This way, you dont have to kill the brand, you are just producing small numbers until times in the economy get better. Please Mr. Lutz, save Pontiac!!
Hello Mr. Lutz: I read today that you are about to improve the GM ads. Here is an idea for a GM Trailblazer ad. Show the vehicle out in rough-looking country with someone who has some credibility. For instance, I am the founder of the 1200-mile Pacific Northwest National Scenic Trail. I would be happy to help you with Trailblazer ads. Happy trails, Ron Strickland ronstrickland dot com
Did anybody read the latest APEAL study from JD Power yet? According to this, the G8 was among the most desired vehicles in its class. One more hint, that it may turn out to be a smart move to transfer it to Chevrolet. Also impressing: The strong improvements for Buick and Cadillac.
http://www.jdpower.com/autos/ratings/performance-and-design-ratings-by-brand
Thanks for posting that blog Gereon.
Of course we already knew the G8 was a very good car. Somewhat surprising to me in those ratings is that Cadillac rated so high on style. In my opinion, the newest Cadillacs have a somewhat cartoonish, or video-game look to them. Of course appreciating style is highly personal, but I consider the current Cadillac look to be only a fad that most appeals to shallow people, and one that will quickly become dated.
Unfortunately, what is fashionable and what is good classic design is not always the same.
i like GM still
Ihave sweared that I would n’t buy a GM after I bought my 4th GM car, I bought a Pontiac Pheonix in 1980.
The car had major braking problem. almost killed myself twice with the car. Iwas told by the GM representative that the probvlem was behind the wheel. The car was corroded throuhg after 1 1/2 year. I was told that was because I was not tacking care of my car. Gm has ignored is customer base for to long.. GM”s arrogance to there customer has just cut up with them.
I feel as much pitty as they had for me when I ended up with multiple problem from a card that was not ready just to go against small car market competition in the early 80.
Bob,
Welcome back. Isn’t it time we bring back the GM “Mark of Excellence” that I recall from my youth when GM was king? It was on the vehicle key GM logo and other places. Our products are finally back. We already spend the money for a GM logo on each vehicle – why not put back the words as GM is back. Make sure we stand behind it!
Thanks & Best Wishes
Dear Mr. Lutz, I think the Pontiac G-6 with the six speed automatic and 4 cylinder should be carried on either in the Buick line or Cadillac line because it’s a great car and gets great fuel economy. My wife and daughter both have Pontiac G-6’s and we love these cars. There is not a foreign that beats its fuel economy and value in that class.
Sincerely, Ray Burns
Bob, It’s great to see you staying involved at GM – I read your book years ago and enjoyed your speech at the last “Aviators Awards”. My brother and I founded our company twenty one years ago when I was nineteen and today it is one of the leading manufacturers of high-performance EFI auto and truck products. While we have had great success which has allowed us to both also fly many hours as private pilots in order to grow our business interests, one thing I learned long ago was to listen to experience. At 77 its great to see that management has embraced your vast experience and understanding that product must be exciting as well as sensable in todays market just as it was in the fifties and sixties. While there is alot more competition out there than the big three faced decades ago – it is critical that GM maximize its strengths in each catagory in order to win over todays youth. With the recent CTS you have given even made guys my age strongly consider it when looking at something like an M5, something that I would never of thought from Cadilac 5-yrs back.
While I hate to see such a great car as the G8 go away, bringing it back as the Caprice would have been a bad move as the name brings with it the thought of AARP members driving to the market rather than the excitement that the car represents. With a new face and a name like Chevy SS the car could have found a strong following, however I’m sure there were many other variables to consider.
Just as we pilots love to fly – consumers will always buy a vehicle that gets there blood flowing – especially if it can be sensable as well. Like you did with the Malibu, CTS and Camaro – keep up the great work Bob and find some young talent that understands the basics of great design and excitement like yourself to ensure the “New GM” has a long and prosperous life.
Brian Murphy
“However, I am well aware, what the translation of “Caprice” into German means.”
I am sure you do.
“Nevertheless this name obviously does not seem to hurt sales in the before mentioned countries.”
While you and I know what ‘caprice’ means, both in German and English, obviously many people — including GM HQ — do not.
“In the meanwhile I’d have preferred “Chevy Commodore”. This would have underlined, that it is an all-new product to Chevrolet and at the same time it had expressed some respect for Holden’s development team.”
I concur. Although I would have preferred taking the name ‘Wildcat’ from Buick or ‘Cutlass’ from Oldsmobile to Commodore. The name Chevrolet Cutlass even has alliteration in its favor.
Dear Mr Lutz, If I could make a commercial for GM it would go like this:
General Motors building the cars people want to drive. The ad would show clips of people in China, Russia, Europe and the USA in there GM cars. The ad would give some statistics on sales in other countries. How many people know that GM sells more Buicks in China than the US?
Sincerely, Ray Burns
“While I hate to see such a great car as the G8 go away, bringing it back as the Caprice would have been a bad move as the name brings with it the thought of AARP members driving to the market rather than the excitement that the car represents.”
Roger that Brian. GM has enough image problems with their Buick brands without naming something after the dowdy Caprice of the 60s and 70s.
Mr Lutz;
I understand you are now in charge of ‘Customers’. I am sure you are very aware of just how many thousands of customers GM has alienated over the past couple of decades, I being one of them. I really was a huge proponent of GM for years, until GM alienated me in 2001. I have a suggestion for you to ‘recapture’ those ‘Customers’. Those customers lost by defective products and lack of honored warranties. My suggestion is HUGE…and will have a POSITIVE impact on GM by:
1. Be a complete contradiction of the ways of the old GM (making peoples heads turn immediately)
2. Show, not say, that Customers are truely #1 with the New GM…show, show, show.
3. Regain the thousands of customers GM alienated over the decades…asap…and make them consider GM for their next automobile purchase…along with all their family, friends and whomever’s
4. Instantly establish ‘good will’ for alienated customers…a ‘HUGE’ “We are SORRY”!
5. A great ‘tax deduction’
6. Get potentially dangerous, defective vehicles off the roads…making many State Highway Departments very happy
7. Be Fabulous free advertising…nothing better than positive free publicity (and believe me, the press will be all over this)
8. Give GM a year or two to get some of their newer models on the market for these new potential buyers
9. Give those customers time to save for a new vehicle purchase…which most likely would be another GM
10. Make the Administration happy…because GM would be ‘SHOWING’ new accountability standards.
11. Show the World just exactly how a Major Icon is really supposed to be.
12. Show the World that GM cannot only eat away the American Taxpayers Dollars, but, that GM can also eat some ‘Humble Pie”.
Given a little more time, I could come up with even more positives…however, my idea to ‘re-claim’ these ‘lost’ customers is to ‘Donate/Gift’ these alienated customers a newer vehicle of the ones you are liquidating…assuming they are not also defective.
And, please, please, please, DO NOT make your customers your independent Research and Development again (like the Dexcool crap and lower intake gaskets…of which I was blessed with two vehicles that used it…one for my 16 year old daughter…for which the extended warranty was not honored…so much for ‘Reliable Chevrolet’). I really resent that. That should be already included in the price of the vehicle.
Another suggestion that I have is:
Have your Marketing staff visit some of your dealerships all across the country. Make them go incognito (jeans, shorts etc.). Have them act like 8th graders. No notice to the dealers you are even conducting this little exercise. Let them document for you of the service of the sales people and service staff. I think you will get a much clearer picture of what the dealers are really doing…not just a reflection of some numbers…anyone can manipulate them…ever hear of ‘creative accounting’?…Oh, yeah, you’re General Motors…the whole world just found out you are experts in that category.
If you need some help, just let me know…will be more than happy to help…’cause I really hate to see GM completely crash and burn…if nothing else, but for the economy itself.
Good afternoon Bob.
Once again I will say retiring Pontiac is the biggest mistake GM can make. Pontiac needs to be retained and the G8 kept under its nameplate. This great car should not be rebaged as a Buick or Chevrolet. It is a Pontiac and only a Pontiac. You were responsible for bringing this car to the U.S. market and you need to do everything you can to save it. Then change the name back to Grand Prix , a respected name that everyone knows.
The new Buick Enclave and LaCrosse are very nice vehicles. I am a 39 year old man who is considering these when i purchase my next vehicle. The execution on the vehicles are great, but the marketing is horrible. The ads with the director in a photo shoot is annoying. Buick must be elegant, these ads are not that. Associate the brand with other well crafted items. Show the vehicle and when you do show other items either people wearing them or in the background be sure to pick items of quality. If you show the same attention to detail in the ads as you do in the vehicles, creating an upscale, elegant but not pretentious image, I think the new Buicks can recover the brands image and sell well with people of my age and younger. Believe me the last thing I want to see myself ever driving is a Lexus, which for some reason the people of the baby boom generation love, and it to me is a symbol “oh well it is good enough”. Keep coming out with great designs and great quality!!
“The ads with the director in a photo shoot are annoying.”
Roger that Scott.
There is nothing about that ad that tells me why I should buy a Buick. In fact, my negativity towards that ad was so high, that I have to question the judgment of any company that would continue to employ an advertising/marketing company that even pitched an ad like that.
Bob Lutz even said that ad tested well. All I can say is that if that ad tested well, someone at the polling/focus group company was cooking the books.
I agree. That ad had me scratching my head too. I mean, really, what does it have to do with the price of eggs in China? I think GM needs to go a little ‘retro’ … ‘Like a Rock’…
Looks like GM is being run by a bunch of old ‘grampas’.
Keeiping their current pace their new slogan song should be : “I want you to want me…”! ’cause they are going to be begging for customers!
Mr Lutz
I vividly remember your keynote to the ANA a couple of years ago, so its great to see you with your “marketing” hat on and taking it to the incumbant agencies for being part of the problem.
How about choosing some smaller shops and outsource the production and distribution. P&G and Pfizer are going down this road -winning flexability and savings–Peter Bates (who does’nt work in an agency!)
Since you are marketing now, perhaps if you’d dropped the H2 and made Hummer H3 part of GMC, and with alittle publicity the H3 would survive under GMC with a 3.6 and offered an oilburner. It just looks like a winner especially with the H3T. I’m sure you don’t have a say so, but why are you trying to dump Opel/Vauxhall. The Insignia as well as the new Astra are winners if you’d only sell/ build them here or in Mexico.
1. It would be nice to see the G8 v6 and v8 become the Chevrolet CHEVELLE and CHEVELLE Super Sport respectively. The formerly proposed G8 ST could be brought over as the Chevrolet El Camino.
2. Holden/Chevrolet already has a larger “full-size” version of this platform that carries the Caprice nameplate in Australia and the Middle-East.
Pontiac G8 = Buick Wildcat
I am a long time enthusiast and auto sales/marketing/eComm exec.
I own a 2008 G8 GT and love it! World class RWD driving dynamics, comfortable and fast. It has a great future at GM.
Branding is a no-brainer — it should be the Buick G8. You have established G8 as the nameplate brand and it has very specific meaning. It is not a name anchored to Pontiac like Grand Prix. Change the grille and continously improve it as suggested in the notes above. It can absolutely compete with foreign competition — it is great — don’t worry about infusing too much Buickness — in fact look at the Buick G series vehicles as no nonsense world class performance, with full elegance not required — you can build from there.
I read in the Oct 12, 2009 edition of Fortune magazine that Ron Bloom wants “GM to make great cars, not just okay cars” and that “the current lineup is not all great cars.” However, by killing off the Pontiac G8GT/GXP the company has cut one of their best made cars and easily one of the most fun to drive. How about keeping the great cars already in production and cutting out carbon copies (Chevy/GMC). I know it is too late to change GM’s landscape from Chevrolet 1, Chevrolet 2 (GMC), Cadillac, & Buick but please find a way to bring back the G8GT/GXP. It was a wonderful premise that delivered.
And if you think gas guzzling, RWD, V8 powered vehicles are a niche, wait until the dust has settled on battery powered clown cars.
Bob,
Congratulations on your “SORRY ABOUT THE APPLECART” campaign for the new, Cadillac CTS Sports Wagon. What a witty way to remind us that Cadillac has been upsetting the applecart with its exciting innovations for over a century! Soon, I will enjoy your applecart-wrecking-innovation for myself since I’m planning a trip to Chicago to purchase a new CTS Sports Wagon. This will be the fifth Cadillac I have bought in the past four years. Currently, I own a 2008 Cadillac CTS which I am convinced is the greatest car ever been built. I also own a 2005 CTS and my comedy-entertainment company uses a Cadillac DTS limousine to transport celebrity performers.
It is common knowledge that the best salesman is a satisfied customer and, I couldn’t be a more satisfied customer of Cadillac. In 1984 when I began in the comedy business I always told a prospective landlord that it was my intention to build the “Cadillac” of comedy clubs. In those days the word “Cadillac” was the ultimate superlative. There was no higher praise than to be viewed as the “Cadillac” of a particular industry. I believe we are returning to days when “Cadillac” means “highest quality possible.”
In an effort to accelerate this revival I want to lend my twenty-five years of experience in the entertainment industry to Cadillac’s assent in the marketplace. More specifically, it is my hope to produce a television show entitled “Cadillacs of Comedy” which will present the highest-quality, standup comedy while at the same time extolling the highest-quality automobiles now being produced by Cadillac.
When asked by “Time Magazine” what GM needed to do to improve its image, some of Americas top, advertising executives stressed the need to “sell cars, not the company.” More specifically, these experts advised GM to promote the cars with the most cachet. “Push Cadillac,” exclaimed Crispin Porter and Bogusky’s Chuck Porter. Pushing Cadillac with comedy is precisely what I hope to do not only with the television show but also through related publicity.
You are absolutely right in your impatience with ads “that namby-pamby around” about the virtues of Cadillac. With regard to the CTS-V, why not “just say it’s the world’s fastest four-door production sedan” when that fact is obvious to the most casual observer? And, on a more general level, why not admit that Cadillacs are the best cars on the road today?
“Cadillacs of Comedy” is an unabashed tribute to Cadillac Motor Company. Please consider joining this endeavor by hosting the show.
Mark Anderson