May the Best Car Win
By Bob Lutz
GM Vice Chairman
As I’ve been saying for some time now, we at General Motors fully believe that we have indeed closed the product gap versus the competition, and we also agree that we haven’t yet effectively gotten that fact across to the American people.
As you may or may not have heard today, I’m pleased to inform you that, with the encouragement of GM Chairman Ed Whitacre and the other Board members, we’ve developed an aggressive new marketing campaign to accomplish just that, and we feel it’s going to be very effective.
Every ad is going to give the consumer a reason to consider our vehicles. We will be highlighting our quality, design, performance, road manners, fuel efficiency, 100,000-mile/5-year warranty, and our new 60-day satisfaction guarantee. We will directly compare our attributes to the competition and “may the best car win.”
In short, we’re going to take away every last excuse not to consider a vehicle from Cadillac, Chevrolet, Buick and GMC. We have confidence in our products. This campaign is designed to encourage the consumer to share in that confidence.
It will make its first appearance this weekend, and I think Ed Whitacre does a terrific job of kicking it off. More details about the campaign will come to light soon, and I plan to take your questions on a web chat on Monday Sept 14 from 3:00-3:45 pm EDT, so please let us know what you think.
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Mr. Lutz,
I made the suggestion for a satisfaction guarantee to Kevin Williams in a Webchat in August. Nice to see that GM is acting on suggestions from the public. Now if only I could get some reimbursement in the form of a new Camaro!
Good luck trying to get GM to admit they are using your idea.
Bob, with your infinte experience with global automotive firms that have tanked…ie.Cunningham, Exide, Chrysler, we can all see that you know exactly what the hell your talking about when it comes to cross ocean business practices and stragedy…….GUTLESS
Somtimes you’ve got to know when to rest on you’r laurals. Take the Chevy S10 for instance, class leading market penatration and customer satisfaction, pushrods, et al. The 355 series trucks were a major improvement ON PAPER! in reality a revamped S10 with eccotech power, would have been more cost effective, and probably would have treated the brand better with consumer satisfaction. The currant Cobalt is quite popular with working class commuters manny of whom, prefer a coupe, the new and improved Cruze has no coupe variant, if it did I beleive it would more than pay for it’s own tooling cost. And the CTS, keep it light and tight, leave room for a Limo to replace the STS, keep the CTS a true sport sedan with international perfomance, and American Cadillac style.
Jason Zebersky
Hi Jas.. GM pick-ups need to have an identity that is they’re own and not tied in to they’re poor subsideraries that they treat like shit anyway if you’ve witnessed the sale of certain unmentionables I hold dear. Remove Isuzu and Opel and they would have a horse cart if they dont break out and re-create something like the C-10 based on a US design on American auspices that they can claim as truly American. Detroit lies in ruin while they export the majority of manafacturing and engineering overseas then expect us to wave flags and buy what is purchasing the dinners that should be enjoyed in Detroit that desparately needs it. I love GM subsideraries as years of frightfull irresponsible joyrides in my Opel Ascona you may remember with me, but I want GM to stand on American feet and make something that will stand out and sing on its own accord. And I dont mean Honda, I’m sick of hearing about them as much as you are. But badging a S10 as an Isuzu Hombre will not help GM’s position here in the compact truck race. P/U’s are an American institution.
Tim,
I’d like to see GM offer to US consumers the Chevrolet Colorado (also called the Tornado in Mexico) they build in Brazil and offer to South Americans and Mexicans. Chevrolet Montana/Tornado
It’s difficult to understand why they don’t think there is a market for a light, sport pickup truck such as this in the U.S.
While I think the 60 day gurantee is a fairly good idea I think a 7 year 100,000 mile bumper to bumper warranty would be a much better idea. That will show the customer that you have faith in your products and so should they. Besides in this day and age you have auto loan as long as seven years now so why not make the warranty last at least as the payments? It worked for Hyundia and look where they are now. I would dare say they have a vehicle coming out that could possible put Cadillac to shame. That was a thing that was throught impossible a few years ago. Now it is your turn to make the impossible come true for GM. There are a lot of people out there that still think GM is not going to survive. Prove them wrong pull out all the stops and do whatever is nessary to get people into your vehicles and keep them there.
Hyundai has some very clever advertising to get attention to their vehicles. Y ou should take a look at them. I know you probley can’t use them word for word due to copywright infringments. But perhaps they will give you some ideas of how to show potential customers that you are serious in your comittment in producing the best built , best performing.best looking and best backed vehicles in the world. A bad reputation is hard if not impossible to overcome so everything you do from now on has got be extra special. Over promising and under delivering is not going to cut it. You can brag about your vehicles as much as you want. But when it comes time to deliver thay had better be all that you say they are and more. If not GM IS TOAST.
You really want to take away every excuse not to try a GM vehicle? Then match Hyundai’s warranty and go it one better-fully transferrable.
5 years bumper to bumper, 10 years powertrain, fully transferrable.
Not only would this get GM new customers but it would also increase resale value.
Forget the 60 day return policy and improve your warranty.
Hyundai’s warranty IS fully transferrable.
Swing and a miss
And while he called this a corporate campaign, nowhere will the words “General Motors” or a GM logo appear in any of the creative. That decision was based on what Mr. Lutz called a large degree of hostility and negative feeling toward GM since the government bailout.
Mr. Lutz,
Very perceptive. Hope you didn’t have to pay any marketing consultants to figure that out for you.
Mr. Whitacre will only appear in spots until Sept. 20; the remaining ads and creative scheduled to run through 2010 will be focused all on product. GM’s choice to use the chairman had created some negative buzz in Detroit circles, a fact Mr. Lutz acknowledged — and beat down.
At least you won’t have to pay some phony actor like that guy you had dressed up as a director in that ill-fated (and horrible) Buick ad of a few weeks ago. I assume Mr. Whitacre is doing this without any extra compensation, right?
100,000-mile/5-year warranty
Is that bumper-to-bumper, or drive train only? It makes a difference ~ a big difference.
Mr. Lutz
I appreciate your efforts to revitalize GM. Perhaps GM’s cars are worthy of review, but I have to tell you (and I would have done so by email if I had your address or face to face if the situation ever presented itself) why I doubt my family will ever purchase a GM car again. (At one time, we were exclusively GM purchasers. Then we bought a Citation. Three Customer Relations Department members in Detroit hung up on us when the car essentially fell apart in our apartment’s parking lot.) Then there’s the lack of manual transmissions. Many Americans would like manuals, but few companies offer them. Honda has always offered them. The Honda Civic I purchased 5 years ago cost the same as the one I purchased 15 years ago. Same model, same price. Brand new. The mileage I get in California is outstanding–about 36-37 mpg. Can GM cars do that? The handling is exquisite, the electronics exacting, in short a high value proposition. The closest GM has come in the past 25 years to providing what I’m interested in buying is the Saturn, and for reasons I don’t understand, your company decided to essentially kill that brand. You may have improved your products, but you’ve still got a major credibility problem. Instead of simply hard selling your cars the way you always do, why don’t you start by coming clean and acknowledge how much GM screwed up. (It may be a while before we forget about the airplane ride to DC.) Just like relationships gone awry have to begin to resolve the differences by acknowledging the problems exist, it would be nice if GM tried that too. It would also be nice if the Chevies didn’t look like the Buicks which didn’t look like the Caddies. There’s a chapter on Alfred P. Sloan in Peter Drucker’s memoirs in which Drucker talks about Ed Cole. I strongly recommend you read it. GM needs another Ed Cole–real innovation and marketing, not just the hard sale.
Many Americans would like manuals, but few companies offer them. Honda has always offered them.
I’ll second that. I’d even consider a Malibu if I could get one with a manual.
Many as in, oh… 10%?
Apple has less than 10% of the computer market and they are doing quite well. 10% of a hundred thousand cars would be 10,000. That’s 10,000 cars that someone else who does offer a manual would have sold. I don’t see how they can ignore that potential.
Wayde Northrop said:
Many Americans would like manuals, but few companies offer them. Honda has always offered them.
I’ll second that. I’d even consider a Malibu if I could get one with a manual.
Wayde,
Agree the Malibu should offer a manual 5 speed with its 4 cyclinder. Now that Chevy has a winning Malibu design, enthusiasts can find ways for the Malibu to achieve the number one sales spot.
Let’s hope they do it. It should boostimage.
We’ve heard before that automatics are 95% of the market. 5% is still 5%, futher, the added enthusiasm itself may generate an overall image boost that yields much more in sales.
1. Malibu should offer a 5 speed manual to target the Accord on image.
2. Malibu offer a spoiler option for the sporty edition.
3. Malibu should offer interior grab handles.
4. Malibu should emulate the 1970-1980s Cutlass Supreme gas-brake pedal distance and feel.
5. Malibu LTZ should offer a wood steering wheel trim option to out-class the Camry.
GM has the better product in the Malibu so its a matter of getting the attention and the focus to make it number one in sales.
colors not offered by Accord and Camry might also help, like mist blue metalic.
This is exactly what GM needs to be doing. Should have been done a long time ago.
Those talking about warranties need to face the reality that people are not going to be pursuaded alone by a 5 year warranty. To this day many Americans staunchly believe Hyundai makes a low quality product in spite of their well publicized warranty coverage. IN addition, dealers sell extended warranties for cheap so anyone truly concerned about GM’s bumper to bumper coverage can easily purchase more at a low price. GM needs to get people in showrooms and in cars- an extended warranty doesn’t accomplish that. While Hyundai is experiencing great sales now that has more to do with their improved lineup and sales gimmicks (free gas, job loss protection) and rebates than the warranty. The warranty has been around for many years and yet Hyundai’s growth has been very slow and steady. There was no rush to Hyundai showrooms after they announced the 10 year powertrain warranty.
and yet Hyundai’s growth has been very slow and steady.
And what is wrong with “slow and steady” growth?
Slow and steady? Hyundai’s warranty saved the company. Period.
It would do the same for GM.
Actually, there was no immediate sales increase after Hyundai increased their warranty. Hyundai’s sales have increased as their products have improved and their lineup has grown. In addition, Hyundai’s warranty is not transferrable and Hyundai does not provide roadside assistance for the duration of the warranty. Suzuki and Mitsubishi also have better than average warranties. VW used to have a 4 year warranty but they scaled it back to the industry standard. It did nothing for their sales.
You have to have the cars to back it up. GM’s new cars are good enough to get people to look at them, and I think people would like to buy American except for past bad experiences with GM products.
That is where the warranty comes in. GM needs it, and it would increase sales greatly, IMO.
“In short, we’re going to take away every last excuse not to consider a vehicle from Cadillac, Chevrolet, Buick and GMC. We have confidence in our products. This campaign is designed to encourage the consumer to share in that confidence.”
V-8 RWD sedan for under $40,000.
HD SFA 4×4 truck.
Manual transmissions in a fullsized truck.
RWD mid-luxury sedans (Buick)
The competition has these, GM does not.
Excuses?
It isn’t an excuse, it is a preference.
No one offers a full size truck with a manual transmission anymore.
HD trucks and yes, Dodge does.
SFA axles too.
For starters, GM needs an overwhelmingly-good warranty, like bumper to bumper, 5yr/100k miles at minimum. You executives have known this for some time, but you still haven’t done it. So much for “leadership.”
GM needs less of the braying by it’s wealthy and out-of-touch executives too. For the last 30 years, you have berated the non-GM consumer for buying a better car. I wouldn’t buy GM on that point alone.
GM now, still, has TOO MANY MODELS. A blind man could see it.Three Buick models, soon to be six. Ten Cadillac models. Nine Chevrolet models. And add to that the trucks and GMC. Four brands for 15% market share? THIS IS INSANE.
And, GM has to be a winner. It has to make money, like Ford, Honda, Toyota, VW, BMW, you name it. GM is not a victim of circumstance in this economy, it’s a victim of terrible leadership.
Now that GM is a beat-dog that’s laughed at, it’s all harder to recover. Payback, for years of arrogance, by incompetent executives and “leaders.”
For starters, GM needs an overwhelmingly-good warranty, like bumper to bumper, 5yr/100k miles at minimum.
Antonio,
The only conceivable reason they could have for not offering “bumper-to-bumper” is that they don’t have confidence in their products, and think it would cost them too much. Apparently, the beancounters won again.
Antonio:
When did GM ever “berate” customers for buying other brands? care to elaborate on that accusation? You seem a little bitter and “out of touch with reality” yourself.
“And, GM has to be a winner. It has to make money, like Ford, Honda, Toyota, VW, BMW, you name it. GM is not a victim of circumstance in this economy, it’s a victim of terrible leadership. ”
Ford and Toytoa are losing money. Toyota just had its worst year ever and will lose money again in 2010. Honda is barely profitable.
GM’s berating the customer, is of course: subtle. “Perception Gap” is the GM code word for it. And then there’s the “Oh, if only the last four decades of car buyers only knew how good we really are.
Sure other companies are posting losses right now in Great Depression #2, that’s not the point. In the U.S. only GM and Chrysler have begged for public money to stay alive (without a plan, no less).
Isn’t that crystal clear to the informed person? It sure is to the people put off by that, to never buy GM and Chrysler again. I don’t buy your uncompetitive product, now you steal my tax money?! Jeez. That isn’t out of touch or bitter, that’s realism. Try it.
sheth writes, “When did GM ever “berate” customers for buying other brands? ”
They do it all the time. “Perception gap” is exactly that… it shifts the blame for GM’s problems from GM to the customers.
And that’s entirely wrong. It’s an “experience gap” and it’s entirely down to GM’s poor historical performance.
Charlie:
Saying that GM’s mentioning of a “perception gap” is akin to blaming customers for not buying “inferior” cars is one of the stupidest things I have ever heard. Do you guys bother to actually read reviews? What GM is saying is consistent with what most in the auto media would say: GM’s products are far better than many people believe and their lineup is comparable to Ford’s and Toyotas with no excuses. It may be hard to grasp if you are fastlane troll who spends days berating GM and reminding anyone who will listen that you wont buy their products but it’s the truth. The “perception gap” is all about the fact that many people wont even consider a GM product because of what they’ve heard or what they may have experienced 10+ years ago with a GM product. That gap is a reality and the suggesting that anyone who doesn’t buy a GM product today is “smart” or well informed is ridiculous. Most of the people who expend a lot of energy bashing GM products haven’t owned one recently and in many cases they haven’t even driven one recently.
sheth jones writes, “Saying that GM’s mentioning of a “perception gap” is akin to blaming customers for not buying “inferior” cars is one of the stupidest things I have ever heard.”
Nope. It’s 100% GM deflecting responsibility for their bad reputation back to the customer. GM’s attitude is that the customer isn’t doing enough to learn about how wonderful GM is. Pure malarkey. The customer has decades of experience with GM and has turned away. That’s GM’s own fault.
“Do you guys bother to actually read reviews? What GM is saying is consistent with what most in the auto media would say: GM’s products are far better than many people believe and their lineup is comparable to Ford’s and Toyotas with no excuses.”
Yes, actually, I do read reviews. So what? GM received laudatory reviews, Car of the Year awards, and so and and so forth, ad nauseum, for decades. All the while, these highly praised cars were not delivering VALUE.
And let’s not get carried away, here. GM isn’t exactly sweeping the reviews. They’re doing better.
Ten years ago, GM was saying the same thing as they are now. “Wait till you see the next models!!” they say.
Well let’s see, ten years ago in 1999, GM released it’s prized-moneymaker full size truck. Without four doors-DUH!. With a shakey frame. With a bad engine knock at startup (GM berated customers for complaining about that, saying “it’s normal” Yeah, right). With styling so similar to the previous truck that it was hard to discern it from the old one, (after Ford and Dodge had the courage to try something different). That’s just one example; there’s many more. (Like intake gaskets!)
It never ends, does it? Today’s perception is based on past performance, past braying by corporate execs, and past disappointments. You make the customer pay for your corporate mistakes, and you lose that customer, permanently, UNLESS you promise to pay for the mistakes: thus the full coverage, long warranty. Hey GM, just muzzle yourself and do it.
GM warranty on new vehicles is better than Honda or Toyota.
GM has a 100,000 mile powertrain warranty that is transferrable.
This is in fact a perception gap since most people don’t seem to know it including those that are posting here. Perception gaps are not the customers, the perception gaps are created by mind tricks used by FOREIGN BRANDS which may use distortions and half truths to make the quick sale. The media also participates in half truths.
Honda and Toyota warranties only go to 60,000 miles on the powertrain. Lexus only goes to 70,000. That’s right, CHEVY with its 100,000 mile powertrain warrant has a better powertrain warranty than LEXUS or ACURA.
The reality is that Honda brands and Toyota brands are not as good as GM brands.
Toyota makes 80% of its profit in the USA, much of it by overcharging for its cars. Over charging may include selling warranty extensions to naive car buyers on certified used cars too.
Honda and Toyota both charge the customer for the extended warranty on certified used cars to make it up to 100K. Do they then try to make phony assertions that the price they charge is residual value? Park and price it on the lot as though it were close in value to a new one when its merely a mind trick. Who falls for that beside the media?
The 09 Accord I test drove was not up to par with a GM car. The Accord was slow compared to a Chevy. The Accord had poor handling. The Accord interor was cheap.
Gee, Toyota started selling its own oil after accusations of oil sludge build-up in its engines. Wonder why?
Driven Chevy Camaro well over 300,000 miles on the original powertrain, didn’t change the oil on time, didn’t change the transmission fluid for 180,000 miles, the original parts last a long long time. Never changed the suspension either. Meet people all the time whose American cars has gone way past the 500K mark.
Looking for a used car on Craigs list is interesting, the foreign cars buyers have to worry about rust rust problems. Not so with GM owners.
We don’t see many foreign brands around, maybe its because the foreign ones rust out . . . . Remember the flap over Toyota Tacama rust on 1995-2000 models!! Toyota extended the rust coverage, but not all the way to the junk yard of course. . . . .
Foreign car owners ask which cars don’t rust. LOL. I thought that was rather odd. American car owners haven’t worried about rust for decades. Ever met anyone with oil sludge problems on their Toyota engine when it stops running? I have.
I wouldn’t want a Honda if you gave it to me, the transmission might fall apart. I’ve heard way too many people saying their Honda/Acura transmissions have had trouble. This is too scary. And I wouldn’t recommend a Honda or waste time blogging in a Honda blog.
A foreign car dealer experience is no picnic. Honda/Acura owners are still signing the petition
by the thousands, unhappy with Honda over their transmission problems:
http://www.petitiononline.com/mod_perl/signed.cgi?acura
At the same time, those who buy a foreign brand should not blame American car companies for their bad choice of a foreign branded model when they were simply misled or brainwashed by a foreign car maker. Blame the foreign car maker, they sold it.
Ever heard the phony Honda commercials on radio that claim Hondas “last forever”? Some of the brand new ones don’t even last a month!!!!!!!!!!!!!!!!!
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GM is not a victim of circumstance in this economy, it’s a victim of terrible leadership.
Now that GM is a beat-dog that’s laughed at, it’s all harder to recover. Payback, for years of arrogance, by incompetent executives and “leaders.”
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GM — are you hearing what your customers are saying?
The culture of failure at GM needs to be changed. You can no longer continue to ignore customer complaints.
It;s time for a change……. bring in some new leaders with new ideas and the drive to fix problems.
Build a Quality product at a Value driven price. From the comments above it looks like there are hard feelings from customers that have purchased poor quality vehicles in the past. No surprise here.
That bad word of mouth about their vehicle has been passed on to friends and family members. This has to change if GM is going to survive.
This is a good idea, but a better one is for GM to make a good product.
I have a 2010 Equinox I purchased about 45 days ago and am having unusual transmission behavior. The dealer acknowledges what I’m feeling, but says it is “normal” and won’t even attempt to fix it. GM’s Executive Office just goes along with what the dealer says and doesn’t care about what I, the paying customer and taxpayer that helped bail them out, say. On the internet it seems the majority of people are NOT having this problem, though I am not along in my complaint. GM doesn’t care and pretends it is “normal”.
I look forward to utilizing this program to get my money back and buy a foreign brand like I should have in the first place. Too bad, really, because if the transmission worked the vehicle would be perfect for us and I’d look at GM again in the future. Not anymore.
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This is a good idea, but a better one is for GM to make a good product.
I have a 2010 Equinox I purchased about 45 days ago and am having unusual transmission behavior.
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I appreciate your efforts to revitalize GM. Perhaps GM’s cars are worthy of review, but I have to tell you (and I would have done so by email if I had your address or face to face if the situation ever presented itself) why I doubt my family will ever purchase a GM car again. (At one time, we were exclusively GM purchasers. Then we bought a Citation
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Over promising and under delivering is not going to cut it. You can brag about your vehicles as much as you want. But when it comes time to deliver thay had better be all that you say they are and more. If not GM IS TOAST.
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The three comments above say a lot about how current and past customers feel about GM.
Customers that purchase a poor quality vehicle feel cheated.
GM — You need to step it up.
After 30 years of market share declines and going into bankruptcy it is time for a change.
Get rid of the management that could not fix problems for 30 years.
Bring in new blood, new ideas and new energy to fix the problems.
Quality has been an issue for a long long time. It is time to fix it.
Building vehicles that only compete in a market segment is not good enough. Strive for the best. Don’t settle. Your potential customers are comparing vehicles very closely.
Small and mid size vehicles are here to stay.
Where are your small and mid size flex, hybrid or electric vehicles?
The competition is not standing still waiting for you to catch up.
GM can either change it’s culture and regain it’s former glory or it can continue down the same path that led it into bankruptcy. After bankruptcy either a company changes or if it continues to do the things that put it into bankruptcy it will go out of business.
GM it is your choice.
Quality ……. Value …. Energy Efficiency ……Customer Service
Can GM do it? YES
Will GM do It? ???? to be determined
Why yet another gimmick? Hasn’t the car buyer had it with gimmicks? Look at all automotive brands that have strong reputations — they rarely use gimmicks to sell cars. They offer a quality car (which is why Hyundai doesn’t have much of a reputation despite the warranty) with a strong warranty; this translates into high resale value and low TCO. One major reason I don’t own a GM car is the high TCO.
Chris:
“Look at all automotive brands that have strong reputations — they rarely use gimmicks to sell cars. They offer a quality car (which is why Hyundai doesn’t have much of a reputation despite the warranty) with a strong warranty; this translates into high resale value and low TCO. ”
I assume you are talking about Toyota and Honda. They both offer inferior warranties relative to GM. Not sure I follow your logic. If you compare the costs of owning a GM product vs a Toyota/Honda product and include service costs and financing costs I’m pretty sure GM products will hold their own. GM is always offeirng lower financing costs than their Japanese competitors.
As the owner of two GM cars (’02 Pontiac Bonnevile and ‘05 Chevy Impala) is that they are very expensive to maintain. Failed mechanical & electrical componets: wheel bearings, motor mounts, instrument gauges, intake manifold gaskets, power steeering lines, transmission cooler lines, multifuntion switch. All failed at less than 60,000 miles. I’m on my third power steering rack for the Impala with less than 55,000 miles! All servicing done by GM. I think the ‘new’ GM needs to prove that their reliabilty is class leading (10 year, 100,000 miles, no deductible) before I’d ever consider another GM car.
I refuse to believe that your Impala has had 3 steering racks in 50,000 miles while mine has had zero in 211,000 miles.
David:
I notice that everyone who claims to have serious problems with GM always has a GM product that has been a total disaster- and yet they hold on to that vehicle instead of trading it for a “superior” import. Never understood that. I used to have an Alero for 6 years and it had more issues than it should have HOWEVER not ONE issue that was fixed ever returned. I was 100% satisfied with the dealer service I got under warranty which made the experience somewhat bearable. According to the anti GM faithful they experienced repeated component failures on their products. I find it hard to believe.
Ditto
Nearly all of the people who say they’ve had problems with American cars didn’t buy them new and didn’t get the used car from someone they know.
And nearly everytime, its someone who bought a used car somewhere just to get by and then claimed it had problems when the question comes up. If you ask if they bought it new, they say well, no, and then if you ask if they got from someone they know, they also say no.
It goes a type of foreign car guilt syndrome. A phenomenon, where some people feel a need to justify their bad choice to buy a foreign branded model and then attempt to blame it somehow on the American companies. Some simply buy a model because its attractive, right size, and priced right for them.
Maybe they didn’t get a high enough offer for their trade-in and got their feeling hurt at the dealership.
The polls are showing that 72% and recently as high as 81% would consider buying American cars, far greater than those who say they would consider buying would consider buying a foreign brand in the poll. What it may show is that many are more likely get hurt feelings or have high expectations from American brands, since they may feel they are being patriotic when they visit the American brand dealer. Many dont’ know which brands are GM brands.
A certain percentage ask their trusted friends and relatives which brands are American. As incredible as it may sound, a 30 something, college graduate and professional, who owns an Aurora 4.0 and really likes it, wasn’t sure of which brands are GM. She services her Aurora 4.0 at the Cadillac dealer, and knows that Cadillacs are American. She likes the Lincoln and had a vague idea that it was American. She wasn’t sure that Buick was GM at first. She knows Ford, but wouldn’t beable to tell you which cars they make necessarily.
A certain percentage whose family has had mostly foreign models ask GM enthusiasts how they like their American car and which is a good American car to buy since they have no idea and would like to buy American. The Camaro, the G6, and now the Malibu, typically attracts the millenial generation and many of them ask if it is ok to buy one, to which I respond with a resounding yes. A 20 something neighbor once asked me how I liked my Camaro and he ended up buying a Pontiac for the first time and liked it. His family owned foreign cars, but seemed open to his choice. Buick is going to need a model that appeals to the G6 buyer.
I’ve met high a signifcant number of 20 to 40 year olds who aren’t sure GM makes GMC, Buick, Cadillac, and Chevy. The polls show 80% of them may say they want to buy American and I’d say that’s close to being right. Millenial generation know and respond favorably to Mustang, Camaro, “convertable”, Escalade, Firebird, CTS, (You’ll hear various decriptions of them trying to tell you they mean the CTS, like that Cadillac one, the Cadillac on TV, the Cadillac ‘you know’, or that Cadillac that someone they know has). Other vocabulary they seem to like is “muscle car” and “American muscle.” They pick up this much without any help. Its not uncommon to see a high schooler driving a newer Chrysler 300C V-8 hemi, a newer CTS, or a something like an Audi in Florida.
The frustrating thing for GM enthusiasts is that GM takes a passive approach by letting the foreign brands run commericials showing their American facilities while GM rarely shows off its American facilities.
The good thing about GM being in the news is that some of these people are seeing more of GM than they ever knew existed. They say, wow, that’s GM’s headquarters? They didn’t know GM had fantastic facilities. GM is doing its large part to contribute to the landscape of America, and the only time people actually hear about it is when GM is having a problem. Only GM can change this.
Foreign car makers are not shy, but are in very bragadocious. How many times did we see aerial TV commericals of the one Hyundai plant over and over again. How many times have we seen the replay of the Toyota commerical showing its facility in America.
The foreign auto makers want to be American, they see the polls and know that Americans really want American cars. The media knows that Americans want to buy American, that’s why they try to deflect the issue. GM scares the foreign competition and their apologists. That’s why they attack GM with such venom. Its fear of American superiority and technology, pure and simple.
What really would scare the foreign competition is if GM started running Patriotic ads and being proud to be America. American pride in America. . . . by Americans. . . . .
Let’s not have a shortage of American pride from America’s companies, including car companies. The millenial generation expects American patriotism and needs to hear America’s story from America’s companies. One of the more fascinating commercials that I didn’t expect would impact Millenial generations was the Harley Earl commercial. I’ve heard more of them mention the Harley Earl commerical in connection with GM. He may be described as that one in the commerical. . or the guy who appears . . . They seem to think he was a patriotic personality. If they’d put some cars in the commerical with Harley Earl they’d likely remember that too.
I would rather see Ed Whitacre talking about American heritage and American pride in GM, although its a nice thing to have a 60 day satisfaction guarantee, and it will no doubt be appreciated by buyers. American car owners are incredibly proud of GM and want it too succeed. The Malibu and the LaCrosse are showing that GM can lead in the car market. Americans didn’t have to have the government to tell them to buy the LaCrosse or the Malibu or the CTS.
GM has had great ad campaigns before like, “This is who we are and what we are at General Motors.” “Its not just your car, its your Freedom.”
As a GM enthusiast, I was amazed at how fast the LaCrosse sold out in Central Florida, in less than one week. If this is a sign, it is a big sign that GM is going to really do well. After a luncheon, I suggested a friend should see the new Buick, with only one left on the lot, we stopped, and she instantly fell head over heals for the LaCrosse and is planning for her purchase and color. She didn’t even know there was a new Buick.
Time for this story:
In August 2009, I set picture of the 2000 Buick LaCrosse concept sedan next to concept sedans from Lexus and Lincoln at a local country club, there was a nearly universal selection of the 2000 Buick LaCrosse concept sedan. At first they weren’t told the brand names. (They liked the MKR front end but not necessarily the rear). They were ready to place orders once they found out it was a Buick. From the 20 year olds to the 60 year olds at the country club, the 2000 LaCrosse concept was the hands down winner. Some said it reminded them of a Riviera. A crowd started forming around the images layed on the table when “new car” was mentioned. I said are you sure you like this or that . . . would you change it? No one criticized it, or proposed any changes, which surprised me, but there were some criticisms of the Lexus concept sedan. Even after they were told about the Lexus, the crowd still said the Buick was better design, no one changed their mind or wavered. Some noticed the 4 vents denoting that it was a V-8 and discerned it was a Buick which prompted the question when is it coming. I asked if it could be a Riviera sedan and the resonse was yes, it would sell as Riviera sedan.
http://www.supercars.net/cars/270.html
Americans know fuel will fuel the future too. Polls would no doubt show Americans have heard about the oil reserves in Montana, Alaska, the Rockies. Americans already know America has more oil than the middle east. Americans don’t want to buy small cars.
Americans may not know every car model and brand by name but they do know they want to buy American.
These are people who are patriotic and want to buy American, they don’t spend their time keeping track of cars, but they like it when they see it.
“I think the ‘new’ GM needs to prove that their reliabilty is class leading (10 year, 100,000 miles, no deductible) before I’d ever consider another GM car.”
What a comment — How many complaints about Quality and reliability do we hear?
GM needs to put together a WAR ROOM to attack quality issues on new and old vehicles. If an upgraded part can fix a problem that spans 5 model years it needs to be fixed. With data bases today GM should be able to tell which parts are failing and which need to be redesigned.
Bob, Ed, I am done with UAW-GM regardless of your marketing. I supported GM in the past because it was an “American” company while holding my breath at the UAW and questionable value of your autos. My mistake was not realizing that UAW and GM are one and the same. I have been to your plants and know how unproductive and unconcerned about the feasibility of your company the UAW is. Your current UAW-GM business model and ownership structure is unacceptable to me and many other “loyal” GM customers from the past.
Since you have lost much or your core customer base due to the unacceptable influence/ownership of the UAW and govt. in your business, your last gasp now is to try to get foreign/import buyers to convert which has virtually no chance to succeed.
You should have understood why many people were buying your products in the first place and understood that the recent changes in the structure and influence in your company is not acceptable to many of your previous customers.
Vern:
Even after the government loans and bankruptcy GM is selling more vehicles than Toyota and Ford. Where is this massive consumer backlash that you are speaking of? I haven’t seen it at all. Many people who never paid GM much attention seem to be rooting for them after all that has happened.
Vern,
Why do you hate peole who work for a living? You write, “I have been to your plants and know how unproductive and unconcerned about the feasibility of your company the UAW is.” I’ve been there and I was impressed by how much those workers care. A union is a way for workers to organize to counter an imbalance of power. I appreciate that.
Charie,
I work for a living too. Do you mean people who perform physical labor?
There is no debate, the UAW legacy costs killed profitiability on many models.
Vern and Charlie H –
A Union is a way to protect workers from being exploited and is part of the National Labor Relations Act. Unions and organized labor were important in the past, but may not be as critical today.
Management has gotten smarter over the years and recognizes the value of VALUABLE workers yet there continues to be a separation of idealogy and little progress, lots of mistrust and fear and very little or ZERO value. This does not mean there isn’t greed at the top and poor management decisions made, but both sides NEED each other to prosper. Most Blue Collar guys don’t do the critical thinking like the White Collar guys (and gals) do. Conversly, you won’t see Bob Lutz or Fritz dressed in jeans (or shorts) and a sleeveless T-shirt with bandana’s, safety goggles and ear plugs working the line and rallying along the roadside every couple years when contracts expire.
To counter this, make 100% of all States Right to Work which is a Constitutional Right to add balance the NLRA Collective Bargaining tools. Forcing true competition at all levels SHOULD improve everything. If Management “forgets” the little people, they can always go for Collective Bargaining and Unionize again.
The simple fact is that Engineers design it, Management prices, and approves it and the line folks build it. Once the product rolls off the back end of the factory, the Marketing folks sell it. If all goes well, the consumer buys it and EVERYBODY PROFITS. If everybody does a crappy job in the first series of steps, you can forget about that last one – which is making a buck!
Test Drives and Making the Best Car puts all our butts in the hot seat. It has nothing to do with being union or not.
As for Bob and Fritz working the line – maybe wearing a baseball cap and Aviator glasses is more appropriate.
The issue is that the UAW-GM business model is uncompetitive by $1500 or more per auto. So UAW-GM provides the customer with less design, engineering, materials, quality etc. by $1500 per auto. Over time, this translates to losing customers and market share. There is no other way this can manifest itself. It is nice to think that UAW stands for protecting the workers against management and all that. However, anyone that has been in an UAW-GM plants and has anything to do with productivity can see very clearly that the UAW-GM plants are not about productivity and providing competitive products. It’s all about slowing down production, filing ridiculous grievances, 3 people to do one task because of ridiculous work rules, etc. Is UAW-GM telling me that to buy an American made product from them I have to pay for this inefficiency because the union and management have to fight each other and in the end provide an uncompetitive product to the customer. I don’t buy that. And I will not support that by buying an UAW-GM product. The market has already driven the UAW-GM business model (along with Chrysler) to the scrap heap of history where it belongs.
Marketing campaign idea/slogan: “No more apologies. No more excuses. Simply the best cars and trucks money can buy.”
I like it ! —- But it has to be true — not just a slogan.
Ed, Bob, I suggest you go to your owners (UAW and US govt) and inform them that the new GM ownership structure and UAW labor is a big problem with your previous customers and is having a major negative impact on sales. Hiding your corporate logo and name from advertising does not fix the problem or fool your previous customers. The UAW will not allow a GM to operate without it, and I the customer will not allow GM operate with the UAW. In the end, I the customer will win.
Vern:
I’m pretty sure your concerns are pretty rare. Most people in the market for a new car are concerned with price, features and style- not the ownership structure of the company. I guarantee you the average American cannot tell you who owns what % of GM right now. Most don’t care.
…our new 60-day satisfaction guarantee.
OK, what’s going to be in the fine print of the sales contract? How much pressure will your dealers put on customers to change their minds once they decide to return a car? Will GM headquarters or the dealers discipline sales personnel who can’t convince a buyer to not return a car?
Will this be one of those things for which customers have to hire a lawyer if they want to return the car, because of the conditions, wherefores, and what ifs in the contract? “Refund will be granted for up to 60 days except for…See you individual dealer for full details.” Exactly what will be the involvement of the dealers in the return decision?
How did you get your dealers to go along with this? Won’t they have to hold their profit in escrow for at least 60 days in the event the customer does bring the car back?
For the returned cars, are you going to recondition and resell them?
Why do I have the feeling we will be able to trust neither GM nor your dealers (particularly your dealers) during this promotion?
warranty, warranty, warranty.
1) 5/100 bumper to bumper (yes 100k. Our family’s Honda Accord has had literally 0 problems in 5 years/90k miles)
2) 1/12 free schedule maintenance to drive traffic to the dealers to prove to buyers that the days of the “stealership” are long gone (unless they’re not, lol)
GM can’t “marketing” itself out of the so-called perception gap.
You did close the product gap, you built the best car since the E39 M5, the Pontiac G8! You had won! And now it’s gone? Come on GM. You’re biggest mistake was no G8 GT with a Manual Transmission. I’d have bought the first one out. Why only in the $40,000 GXP? That’s to much for most folks. Bring the G8 GT with a 6 speed as ANYTHING. Call it an Oakland for all I care. GM is not closing the gap by dropping the best (reasonably priced) car it has. I know you personally wanted it as an Chevy, but clearly the sanity in the GM leadership rises no higher than you I’m sad to see.
Politics Matt. You can’t promise to be lean and green and then base a brand on performance cars, especially when people are telling your financier that you need to cut more brands, and cut more models. Unfortunately you can’t just transfer those models to another brand either. It doesn’t look right. Of course in reality all the G8 needs to match a fwd sedan is a six-speed auto like the Malibu and Lacrosse. With the new engines from the LaCrosse as well, it actually gets better fuel economy (in fact the Australian 3.0 L version uses 7% less fuel than the V6 Accord—that’s maybe 31–32 mpg hwy when the LaCrosse can only get 27 mpg). That should be no surprise—all GM’s rwd cars (the CTS, STS and Camaro) get better fuel economy, even though most have much more power on tap than the LaCrosse and G8 (it’s the same for every manufacturer that bothers to offer the same engines in both fwd and rwd models).
One thing you can be sure of: Customers bringing in their cars for warranty problems during that 60-day test drive, will no doubt get first-class, priority service — all done with a smile from the dealer’s service department.
That in itself would be a refreshing change.
It really is a bogus excuse as to claiming there would be more sales IF the warranty was extended
Let’s be honest, in most cases a car maybe requires a warranty repair twice.
The facts are there, myself in owning 14 Corvettes, GMC pickup and other GM makes in 45 years of driving exactly 2 of them had to have warranty repairs.
As it is it is not the designs that fail but the lousy quality and lack of respect by dealers who wrench and break more then they fix so you’d rather not want to see any warranty work even needed.
Which would you rather have, a shorter warranty period with good designs or junker non American cars with longer warranty periods but over that time your in the dealer many times more often ?
Fact is no matter what the warranty period is most people do not even keep a car for 6 years and the real truth is people have a total lack of respect for a car to the point they expect the car to inform them when the tire pressure is low, water or fluid levels low or even tell them when it is time to replace the oil.
Even then the fault lies that people today do not even know how to check the tire pressure much less do proper maintenance on their own. Pretty bad when a man today does not even know how to change the sparkplugs but then demands warranty periods that no other types of products give.
Interesting people are not complaining about short warranty period on a $2,400 LCD TV and that is because no TVs today are even from an American company but use their warranty “bait” game on an American nameplate.
The junkyards prove that American car’s are built better, last longer and have a better resale value then non American brands yet we do not hear the same warranty excuse when you buy their products which in many cases have a higher federal recall or repair rate.
GM needs to TEACH people how to maintain their investment in ownership of their cars and FORCE dealers to teach customers what the features and functions do.
As example I was working on a woman’s C6 Corvette, she had zero knowledge of most of the car functions and in fact did not even know the car had such features. She had no idea on how to even open the hood nor how to change the options on if and how auto lock was configured.
The heck with Mr Goodwench, most cases it is the same techs who louse the car up for warranty work and instead do goodwill by training customers to prevent problems that later they dictate should be fixed under warranty as they are the cause of most failures by lack of proper use.
Make dealers once a month have a FREE training day and return knowledge to customers and you will see repairs go down greatly.
Do “how to” via your BLOGs or websites which will be repaid by more loyal long term customers.
Put the user manual on a DVD included with car sale and also be read on your websites.
Your manuals are lousy, hard to find what your looking for and is written like someone from the IRS, is not personal and boring so people not reading them.
Hey Bob Lutz try reading the 3 book service manual, then fire those who write them.
As to this 60 day return policy you can sure bet many people will do this with the intent of beating the car to death and returning it.
I sure hope someone in GM understands those buying a Camaro, Corvette or Caddie will abuse the car for 59 days and then return it so there better be some strong rules to this else someone else will be buying used cars from GM that have low mileage but was flogged to death by the first owner as cyberspace already has content of guys just itching to abuse a Camaro or CTS-V with no intent of keeping the car.
But it’s not just the products that have to be better. GM could make cars much, much better than competitors, but if it’s customers still have to suffer through the dealer “experience”, GM will not earn conquest sales.
Frankly, GM could get away with building “just as good as” cars, if the dealer experience were to be vastly improved. Every car manufacturer has to repair cars under warranty, it’s just that some do a much better job of satisfying their customers. The warranty and maintenance experience at GM dealers falls far short of the industry standard IMO. Anytime I have interacted with a GM dealership, whether it be sales, service or maintenance I always leave feeling soiled and dirty. It’s never once been a pleasant experience, ever. Compared to my experiences with two local Toyota dealers and the local Ford dealer it’s like night and day.
The dealer experience was one of the major reasons that Toyota made me a conquest sale, and then a repeat buyer.
To sum up, GM can make it’s cars the best in class, give a clear brand mission to every division, market the heck out of every product, but if customers still get treated with the “four-square” treatment at GM dealers, there will never be any repeat conquest sales.
Frankly, GM could get away with building “just as good as” cars, if the dealer experience were to be vastly improved.
Spot on Monty.
~ A company making just an average car could succeed by having an outstanding dealer network.
~ A company building very good, or even superior cars, could still fail if their dealer network was subpar.
Guess which category I think GM is closer to? The best thing that Chairman Whitacre could do in his new folksy ads is to tell me that GM will demand their dealers get their act together, and then back up that statement with action.
Instead of saying, “If you’re not happy with the car, bring it back.” also add, “If your dealer disappoints you, bring the car back, no questions asked.” (And then keep a database on those dealers so you can purge them from your network.)
Of course, if you could build great cars, and also have a great dealer network, you would really hit a home run.
“To sum up, GM can make it’s cars the best in class, give a clear brand mission to every division, market the heck out of every product, but if customers still get treated with the “four-square” treatment at GM dealers, there will never be any repeat conquest sales.”
There is no evidence that Toyota dealers are superior. This falsehood is repeated on here often but surveys do not support this notion at all. The import dealers I have visited have not impressed me in terms of treatment, honesty or knowledge of products. In fact, they seem to think they are doing you a favor by allowing you in their dealership because their products are so great. Furthermore, GM is keeping its most successful dealers and that should mean lower quality dealers will be out of the picture going forward. Aside from the luxury brands, Asian import dealers are no better or worse than GM dealers on average.
Wow, you ‘new GM’ bean counters have completely lost your minds. I read an article about this in USA today. If you cannot get people to buy your cars hear, wait till all your cars in china stop selling as well. You are pathetic. You cant even get your American customers to buy your old people cars. A 60-day guarantee will not get people to buy your vehicles. It just makes you look bad. And I saw you sold Opel to mangna. You guys just keep making bad decisions. You are driving GM into the ground. I guess that was your plan all along, wasn’t it. And, even your “new Caddy is a BIG FAILURE”. I laughed when I seen that one. “it aint no Lexus” said the guy who wrote the article. If you cant make a good car now, what will happen in the future? You burned too many bridges to go back. So, your going to be up a creek without a paddle. If only you would listen to your American customers to keep Pontiac, you would not have so many problems. If you keep Pontiac, all your problems would be forever solved.
Vern:
I’m pretty sure your concerns are pretty rare. Most people in the market for a new car are concerned with price, features and style- not the ownership structure of the company. I guarantee you the average American cannot tell you who owns what % of GM right now. Most don’t care.
————————————————-
I disagree completely. Remember what happened to Citgo? There was a significant boycott when the general public understood that it was owned by Venezuala and Mr. Chavez lost favor with the U.S. public. GM’s current ownership structure is equally offensive to the “buy American” consumer like myself.
Also, many GM customers bought from GM because it was an “American” company. That means they were certainly interested in it’s ownership structure. Most of the public knows GM was “bailed out” and don’t like it. Many, especially those who bought from GM before because it was “American” know that it is now majority owned by the govt and the UAW and will avoid it. I have talked to many people who say this. And of course I will inform others as needed.
GM itself admits that it has a bad name and will purposely avoid using the parent name in advertising. I would guess they will even remove the GM logo from the dealerships soon. When the name of your company if offensive to your customers (due to the bailout, previous quality problems and current ownership structure), you have a big problem that I don’t believe any sales gimmick will fix.
Vern:
If you don’t expose yourself to different people with different views its easy to think “most people” agree with you. The sales figures speak for themselves. GM’s sales have not dropped off since they took taxpayer money. Their sales decline is slightly worse than the overall market so far this year. That is likely attributed to the fact that they aren’t leasing and the general uncertainty about the company until July 2009. There was not a massive defection from GM and many models such as the Camaro and Traverse are very hot right now. This massive movement away from GM is only in the minds of people who are philosophically opposed to the bailout. I take it your opposition is why you are here posting negative things about the company. I can tell you that its not a major issue for most car buyers, or people in general.
My last two new autos were GM and they are my last. Instead of GM I bought a Honda this year. UAW-GM is a uncompetitive company that can only exist today because of confiscation of GM bondholder and shareholder property plus massive never to paid back equity injection by the US government. It does not deserves consideration from the consumer. the UAW-GM business model should be sent to the scrap heap of history.
To quote Vern: ‘GM is a uncompetitive company that can only exist today because of confiscation of GM bondholder and shareholder property plus massive never to paid back equity injection by the US government.’
I sense a bitter tone in Vern’s message that is common to many folks. This state of thinking makes it difficult to make rational observations. I root for GM for many reasons, not excluding the fact that GM’s success will return the bail out favor to the federal budget. I am completely satisfied with my new GM vehicle, and wouldn’t consider a foriegn equivalent as being of equal or better value, given where the profits go.
Dear Mr. Lutz,
there also need to be PR- and advertising efforts over here in Europe. Since it’s introduction in May, I couldn’t see a single ad about the critical all-new Chevy Cruze on German TV. Although its sales have been exceeding expectations so far and Chevrolet Germany is not far behind Honda in terms of market-share, according to the latest sales-charts by the Kraftfahrtbundesamt, the situation could be much better in my opinion. My proposal: Offer the same Chevy-lineup for Western-Europe, as you are doing for Middle East! Keep in mind, that Opel can’t fully contribute to GM’s business in Europe anymore, when the deal with Magna is finalized. What’s going on with the Cadillac Europe-Website? It’s already down since months… Thanks for your attention.
It’s very hard not to see either the 60 day return policy as a gimmick or the “May the Best Car Win” site as something other than fine print.
Does the 60 day return policy mean that you have faith that 99% of your cars will be satisfactory for 60 days? Is that supposed to impress me?
I vivisted the Best Car site and, if you use broad questions (best car, best fuel economy, etc,) the answers could be almost any car company. Are you planning to do a reveal later and show us how, through narrow interpretation of the questions, that GM “wins” in every category? This isn’t anything new for GM. And nobody believes it.
You’ve been telling us, for example, that GM leads in fuel economy. Really? Where’s your Prius? Claiming to lead in fuel economy when you don’t have your own 50mpg car is just a way of telling us you enjoy stretching the truth to make GM look good. Rather than improving your image, it just erodes your credibility.
GM, you have a serious problem. And you have got to stop thinking that it’s some sort of “perception gap” that you can ad-spend your way out of. You can’t. You have to deliver cars that still satisfy after 10 years, not 60 days. You don’t have a “perception gap,” you have an “experience gap.” Every time I turn the key in one of my 10 year old vehicles from the competition, I experience satisfaction. Not enough of your customers have that same experience.
If you want my business, you must back the car as though you believe I’ll be happy with it 10 years down the road. You must back the car as though you believe it will satisfy me 10 years down the road.
Or, you have to wait 10 years until CR says, “just as good.”
I worked really hard for my money. I’m not going to waste it.
Charlie:
The Prius is one car. Saying Toyota leads in fuel economy because of one car is foolish. GM tells you they have the most efficient vehicles in a competitive set when that is the case. The Prius is great but that doesn’t mean the Camry is more efficient than the Malibu (its not), the RX350 is more efficient than the SRX (its not), the Tundra is more efficient than the Silverado( its not), the RAV4 is more efficient than the Equinox (its not), etc. You are really going over the top with your GM hatred. The EPA ratings speak for themselves and in many cases GM beats Toyota: period. Toyota uses the Prius as a halo car to avoid the fact that many of its other offerings are NOT best in class in mileage.
“Every time I turn the key in one of my 10 year old vehicles from the competition, I experience satisfaction. Not enough of your customers have that same experience.”
Gm outsells the competition. Not sure that your rant about GM not knowing how to please customers holds water when looking at the sales charts. There are TONS of GM vehicles on the road that are more than 10 years old. In my city I commonly see Lesabres, Bonnevilles, Aleros, Grand Prix, Park Avenues, etc. Many of these cars are well over a decade old and many others are approaching that figure. How do you know specifically that GM vehicles don’t last? How are you an expert on GM durability if you drive imports? I would love to read an explanation for that one. The fact that you don’t even own any GM vehicles makes me question your authority on their quality.
Sheth,
If GM wants us to think they lead in fuel economy, then they must LEAD. At the moment, they are FOLLOWING the Prius.
It’s as simple as that.
“Gm outsells the competition.”
GM’s market share has been in steady decline. Marketshare isn’t lost overnight because there’s some fear of the unkown (as bad as my X-mobile is, those Y-mobiles… I just don’t know). This is because others, particularly certain imports, are better at satisfying the customers, in spite of the immense domestic preference that existed in the ’70’s. Each of those customers won away from Detroit was won over by a superior experience, not by some “perception gap.” More are won over than won back… it’s like the waves eating away at the shoreline.
“How are you an expert on GM durability if you drive imports?”
Google up desrosiers and vehicle longevity. There are other sources, too, but that one actually addresses the way I keep cars… forever.
Where is Toyota’s pickup and SUV that get the same mileage as their four-cylinder Camry? Where’s the Corolla that gets 37mpg? Where’s the Camry that gets 33mpg? – At the Chevrolet Dealer and they are called “Silverado”, “Tahoe”, “Cobalt”, and “Malibu”.
One vehicle that gets good fuel economy under ideal conditions does not equal “leadership” in fuel economy.
Saw my first “May the best car win” commercial this morning. Why doesn’t the 60-day trial period apply to Pontiac. I know you plan to stop making them, but as far as I know, you haven’t done so yet, have you?
Over that last several years, the Pontiac Vibe (despite its dumb name) was one of the better cars you’ve produced. Are you really going to do away with the Vibe and not make a Chevy model?
GM has the best quality and the best warranty and has had this for some time.
Brand Mystique – Stylish Image – Quality Perception – Value
The 2010 LaCrosse sold-out in about a week without any cash for clunkers program, without rebates, return policies, etc. The design is a winning design.
Come, let us reason together. GM has great design concepts on the books like the 2000 LaCrosse concept which should be the successor to the Aurora 4.0. The 2000 LaCrosse concept should be the Riviera sedan with a small V-8 option. When things are so obvious . . . GM should be reeling in the Olds and Pontiac customers to Buick if it hopes to lead a car comeback.
http://www.supercars.net/cars/270.html
Buick needs MORE STYLISH CARS. This is GM”s chance to put together a real car line-up for Buick.
GM’s designers are obviously creating beautiful concepts. The question for top management is why hasn’t this 2000 LaCrosse concept been implemented? Stop making excuses. The 2000 LaCrosse concept could be built similar to the 99 Aurora body. Instead, the lackluster Lucerne design was forced on GM car buyers (headlights too big- tail lights too small). LaSabre, Park Avenue, Aurora, Bonneville customers are NOT inspired to trade for the Lucerne.
Maybe it was attempt by GM’s top managment to get by and ignore the designers, but the Lucerne design has NOT produced the sales that the enthusiast favorite 2000 LaCrosse concept obviously would. It doesn’t have to cost too much either. Make a beautiful car and offer a sun roof, a wood steering wheel, and a small V-8 option.
If quiet glass, violins in the commercials, and the heated and cooled seats can sell the lackluster Lucerne body style, then just imagine how much more GM could have sold a beautifil design like 2000 LaCrose concept with an ad budget. Oldsmoble had no marketing budget.
Let’s reverse some of these wrong decisions and build the 2000 LaCrosse concept NOW as the Riviera sedan and a new flagship for Buick. This would so energize the GM base. A small V-8 option is all we ask. 5.3 or 4.0 is fine. Just think a supercharged 4.0 or 5.3 for Buick could take on a Mercedes in adds. The base engine for the car could be the 3.0. Priced right, a Riviera sedan would sell in large numbers. The Riviera name would establish Buick as a world luxury brand.
The Regal/Cutlass customers are still waiting for GM to wake up. Accord, Altima customers would like an American alternative to choose.
GM should be addressing these customers by:
building a sporty Regal “sedan” from shanghai Riviera concept. It could have a Grand National edition.
The more good looking Buicks there are driving around, the more the brand mystique will grow.
It looks like the customers are losing the argument with top management to have the G8 GT become the Buick Grand National so I won’t keep harping on it, just to say I share these enthusiasts energy for the market, and it would be icing on the cake for the performance image for Buick.
A full line of beautiful Buicks, from 4 cycliner cars to luxury sport with small V-8 option will win the customers for Buick and GM. Unit the GM base Pontiac and Olds into Buick with great style and attractive powertrains. The GM Ultra V-8 program is very exciting. We believe GM can make a fuel efficient V-8, that can also dub for performance in the market place. In order to be the dominant player, GM should keep in mind that the top line of the brand creates the excitment for the overall brand.
*The Malibu should have grab handles, perforated leather, 4 cyclinder with 5 speed manual option and spoiler. These add-ons would help the Malibu step closer to ousting the Accord and Altima. The Malibu is a sharp car, give the sporty edge with a spoiler and a 5 speed manual. Get the attention of the 20 somethings with the Malibu.
*The Malibu could offer a wood steering trim look option to lure Toyota buyers.
Let’s have some common sense.
Lexus of Orlando ran the following commerical for the Lexus IS:
Affordable luxury for $319 per month.
I appreciate your enthusiasm for Buick, but Buick will never sell well in America. A Buck will never be a Pontiac, no matter how nice you make it look. Because Buick is made for OLD PEOPLE. That concept car you showed, it has got to be the ugliest looking Buick I have seen since GM decided on an update for the Lacrosse in 2008. Americans don’t want the gigantic land yachts that Buick is making. They offer no class and sell to only the older generations. Pontiac offers performance engines, comfortable interiors, performance suspension, and sporty looking cars. Buick offers old looking leather interiors that have too much space inside(not to mention that the battery is behind the back seat half the time), a very mild under performing engine choice, and an extremely ugly body style. When Oldsmobile was killed off, even their cars were better looking than a Buick. Oldsmobile made style and class. It was ousted by the people at GM that thought Oldsmobile would never make a good car again. But, look at the Oldsmobile market today GM. I think you will be surprised at how many people want an Oldsmobile. You screwed up big time on that one.
Buick will NEVER be a Pontiac. If you plan to keep the 1.4 million Pontiac drivers at GM’s doorstep, you better consider keeping Pontiac. No matter how you dress the Buick brand up, it will always be just a Buick. and a BUICK IS AN OLD MANS CAR! If you all want style, class performance, a good body style, and luxury then look to Pontiac. It is the ONLY car brand that offers them. And yet, you seem to think Buick will sell for a long time in the newer generations. But the truth is, once the older generation dies in about a year, Buick will die with them.
And as for Edvin and Edward, your ideas are terrible no matter how you look at them. the Buick Rivera was, and still is, a huge failure. Just as Buick will be soon. The concepts you speak of will never become a reality not only because they are ugly, but also because they are a Buick. If you keep speaking of luxury, class, styling, and performance then your speaking of a Pontiac, not a Buick. People in America do not want giant ugly cars they cannot use. Pontiac is, and always will be, GM’s performance brand. And sure, the Grand National may have been nice in the 1980’s, but this is the future, and we know GM wont listen to that request. (let alone any requests at all)
And as for Felix: “The bottom line is this. You have got to offer in your vehicle everything the compertition offers. But you have to do it better. better quality, better performance ,better styling ,better ride, better handling,better gas milage,better warranty and all of this at a better price.” -Sounds like a Pontiac, dosn’t it? This is what makes the Pontiac so great. Not only because of its history, but because of the cars and what is being offered. So, instead of buying a rebadged Buick enclave (Chevrolet equinox) or a rebadged Lacrosse(Chevrolet Malibu), why not buy a Pontiac? It has all of those great things wrapped into one amazing car. So, thank you for pointing that out to the GM execs.
GM is not focused on the future, they are focused on now. If they focused on the future, people would start buying there other brands(’four core brands’) Instead of shoving old people cars down your customers’ throat, give them what they want: Pontiac. Not only will it make you billions, but it will please your customers,and they will start to buy your cars again. Its simple, if you keep Pontiac you sell and make money. You kill Pontiac, you lose everything including your jobs.
We can do it with Buick, if that is what GM has decided. I believe GM can be so successful that it could restore the whole the market lead in cars (and have so much business it could even re-introduce the Olds and Pontiac in a future scenario).
I’m an eternal optimist.
I’ve said, Pontiac + Buick = Oldsmobile
But realistically, in the near term the goal can still be accomplished,
where Pontiac + Oldmobile = Buick,
if GM let’s enthusiasts show them the way.
With
——————————————————————————-
Brand Mystique – Stylish Image – Quality Perception – Value
——————————————————————————-
Buick can become affordable luxury sport segment for all ages.
Really, Buick has emerged as an American World Brand.
Millenial generation are very excited about American cars, GM, and about America. They want to know more.
The new Malibu and new LaCrosse have intergenerational design appeal. A Malibu with grab handles, a manual 5 speed and a spoiler, 5 spike wheels, would be the right move for sport edition. The 2010 LaCrosse with a mesh grille look, a burnished look, or a black grille look could provide sport option packages and broaden appeal.
A name like Buick Grand National has great weight with the right style. It could be a G8 GT, but it can also be a Regal sedan and coupe based on the Shanghai Riviera concept design.
With an exciting Regal sedan style taken from the Shanhai Riviera concept front, GM can create Buick that can undercut Lexus IS. No doubt about it. It would take some image promotion themes. Later editions could include a coupe. Can a Regal like this command the sales of the 80s Cutlass Supreme popularity, I believe it can if done right and were it to get the exposure.
RIVIERA Sedan = WORLD CLASS
The 2000 LaCrosse concept is a stunning design for a Riviera sedan and should be the successor to the Aurora prgram with a small V-8 option. There are a multitude of Park Avenue, Aurora, and Bonneville customers out there who would buy a sharp Riviera sedan and who really want to buy a flagship American sedan. The Riviera name is well known and adored by Americans, it can certainly bring brand mystique and luxury and technological prowess to Buick as a world class brand. The Riviera name is world class, GM has to realize this. About the only tweaking of the design I might suggest would be to level the window line while keeping a window dip, have strong side treatment like the 99 Aurora, and offer a small V-8 option.
The last Riviera wasn’t quite there on design, its too fluffy too many ovals, but it was still as ‘nice’ car. The 99 Aurora is the right direction, it was earning a design repution in important markets for GM, and the program should not have been cancelled (the 2001 Aurora redesign should have been the Intrigue). Buick should embody the Aurora program in the Riviera as a sedan with 67 window dip and beautiful headlights and tail light designs from the 2000 LaCrosse concept. The design is stunning.
GM should have both designs – the Shanghai Riviera as a Regal sedan AND the 2000 LaCrosse concept as the Riviera sedan with small V-8 option.
Performance editions like the Grand National would please the Pontiac customers.
A Buick Skylark or Skyhawk done right can attract the G6 customer.
A Buick Wild Cat like the Solstice would please the Pontiac customer.
Smaller Buicks with Grilles taken more from winners like the 77 Cutlass Supremes and 76-77 Grand Prix as well as the 80s Cutlass Supremes/Regal are another suggestion.
These is way for Buick to lead a car revival.
GM enthusiasts were right that the NAIS auto show should be high profile with star power and that was working before the recession. The NAIAS auto show should still be a high profile star power event.
You’ve been telling us, for example, that GM leads in fuel economy. Really? Where’s your Prius?
And may I ask, “Where’s your car like Volkswagen’s Jetta TDI?”
Last weekend — over Labor Day — I went on a 420 mile road trip, using 8.1 gallons of diesel fuel. (That’s 51.9 mpg) Where’s your car that can do that?
That diesel issue really isn’t GM’s issue – it’s more an issue of the EPA. Considering VW sells less than 400,000 units they don’t have to worry that in a year that their diesel will be illegal to sell in the US. GM on the other hand, being a volume car company, can’t sell vehicles that don’t meet the standards. They can be made to meet the standards at a premium of about $5000/vehicle which blows the diesel math equation/business case right out of the water.
How are you going to screen out the knuckleheads* who are planning to drive a Camaro for 59 days, and then turn it in and get their money back?
Even considering the 59 days interest you will earn from their initial purchase price, that will still be a pretty inexpensive rental fee for those drivers for almost two months use of a Camaro.
For those that do that at one dealer, how will you stop them from going to the next city over and doing the same thing?
____________
* And believe me, there are those who plan to do exactly that.
I think some people are hugely confused about what Hyundai’s warranty covers. It’s not “bumper to bumper” for 10/100,000 – that portion of it only covers internal components of the engine and transmission – parts that even the worst car company can make last 100,000 miles. And only for the first owner – so it’s of no value when you go to sell the car.
Their warrany only covers most parts for 3/36 and only covers air conditiong parts for ONE YEAR.
I believe Hyundai’s standard warranty is 5 years/60k miles. Better than average, but not 10 years as the misinformed on this site are suggesting. No automaker is ever going to offer a 10 year full warranty.
This is a step in the right direction to win over new customers, but, if you want my business back, you will need to give me a 5 year warranty that covers the parts made by your suppliers. Everyone knows GM builds the best powertrains but what about the power window motor, power door lock, climate control unit, wheel bearing, etc. Give me a respectable warranty for the parts you don’t build and I will come back.
Bob:
Have you even considered a dealer extended warranty? My brother got a 2 or 3 year extension for a very reasonable price on his Mazda. They are NOT expensive at all. If you really have serious doubts about a GM car not lasting 5 years why not just get the extended warranty? Also, Buicks and Cadillacs are covered for 4 years, not 3 like Chevy, GMC and most non luxury brands.
Archie Pflueger said:
You’ve been telling us, for example, that GM leads in fuel economy. Really? Where’s your Prius?
And may I ask, “Where’s your car like Volkswagen’s Jetta TDI?”
Last weekend — over Labor Day — I went on a 420 mile road trip, using 8.1 gallons of diesel fuel. (That’s 51.9 mpg) Where’s your car that can do that?
Archie, to correct your numbers,
The Jetta TDI diesel is rated at 41 mpg EPA highway and it costs $5,000 more than the basic Jetta that is rated at 30 mpg EPA highway. Even the Rabbit is rated at just 30 mpg EPA highway mileage. Most of VW sales come from the gas engines in the US, not diesel. And if everyone drove around in clean diesel the price of diesel fuel would probably jump way up so it would still not necessarily be more economical than gasoline.
The Cobalt is rated at 35 mpg EPA highway which beats Volkswagens rating on gas engines. The Malibu rated at 33 mpg EPA highway also beats Volkwagen.
Chevy is actually the leader in fuel economy. The Chevy Cruze is an attractive Amerisport design and will probably lure plenty of Volkswagen Eurosport customers.
The Chevy Cruze may offer a clean diesel, but the price for the consumer for diesel engines is still higher. Chevy probably should go ahead and offer a clean diesel option in the Cruze, just to play the same game Volkswagen is playing.
The Prius is not really a practical car, its too small and its sales are falling. Small cars are not what people really want to buy anyway. The Prius had a 48% sales loss in 08, the worst performance of any car in sales. the Prius sales were down 61% through April of 2009. These hybrids are subsidized and are not really profitable either. They amount to advertising gimmicks.
GM has superior technology. The Chevy Volt is rated at 230 mpg.
Archie, to correct your numbers, The Jetta TDI diesel is rated at 41 mpg EPA highway and it costs $5,000 more than the basic Jetta that is rated at 30 mpg EPA highway.
Edwin,
My Jetta did not cost $5,000 more than it would have with a gasoline engine. I bought it new and paid $1,500 more for the TDI option.
And last weekend, I did go 420 miles on 8.1 gallons of diesel. I’ve talked to several TDI owners whose real-world experience has proven better than the EPA numbers.
Archie,
What year is your Jetta TDI? If it’s pre-2007, that explains the high MPG and lower initial cost of your TDI. Starting in 2007 filters were required on the exhaust to reduce particulate emissions. Those filters hurt fuel economy and increase price. It also required more refining of the diesel fuel, which is why the price is now more inline with gasoline rather than cheaper like is usually was before. Now in 2010 the emissions regs are getting even tougher, which will further hurt FE and increase price.
Before these regulations I agree that diesel was a great alternative, however, I’m not sold yet once the new vehicles that meet the tough emissions standards take place. I think you’ll see the FE of the Jetta TDI decrease and the cost increase once VW markets the 2011 TDI. Maybe not, but I’m not holding my breath.
Tim,
It’s a 2005, and I understand the differences between then and now. Perhaps that’s why I’ve recently had offers from people wanting to buy it for almost as much as I paid for it new in 2005. TDIs from that era command a premium and don’t stay on the market long.
Anyway, the point is: Why has GM never been as innovative with diesels as the Europeans? I know a big part of the problem is the EPA, but GM has lobbyists working for them that could surely ask Congress to put pressure on the EPA to be more realistic about diesels.
Just saw yesterday that the CAFE standard will be 35.5 mpg in 2016. Guess what? My Jetta already meets that standard.
Archie,
I can understand people’s want for a pre-2007 TDI. And yes, GM does have lobbyists working for them that can ask to have the diesel regs more realisitc, but it’s just that…asking. Considering the fact that the diesel regs are supposed to get tougher in 2010 makes me think they aren’t about to back off of on it. The EPA doesn’t want to be seen as making cars more pollutant.
I don’t doubt that your Jetta meets the 35.5 MPG, but it’s also polluting about 10 times more than a 2010 diesel is allowed to. Whether you and I agree with the EPA or not, that’s the way it is unfortunately.
Archie,
The MSRP is $5,000 more for the Jetta TDI diesel, and how do you know you couldn’t have gotten the gas version for $5,000 less than the bottom line TDI if you tried?
Nevertheless, it would be a good idea for GM to offer a TDI diesel on select models as a promotional idea. It has brought VW notoriety, but the fact of the extra cost is there.
I would suggest that GM offer the TDI diesel on a 4 cyclinder Colorado pick-up and the Chevy Cruze.
Agree, that alternatives can be good image promos to boost the overall sales of a brand.
But clearly, GM has the better fuel economy and technology.
Edwin writes, “The Prius is not really a practical car, its too small and its sales are falling.”
What’s your source for any of this? The last two months, Prius sales were over 18K units/month. The new Prius is a hit. As for impractical and too small… ask someone who owns one. People stuff all kinds of things into it (useful hatchback bodystyle) and I’m 6′4″ and find both the front and back seats to be comfortable.
Charlie:
Prius sales just rebounded when the new model came out. Before June they were down big time over last year. Cash for clunkers aided sales last month. If gas prices don’t stay high expect sales to begin falling again soon.
Agree Seth,
The Prius is a dud. People don’t really want small cars. The gov’t had to buy the sales for them with cash for clunkers. We only put up with the program because it helped out our friends in the American auto companies and gave some temporary relief to the economy.
We’re about tired of the foreign car lobby. They’ve been sneakin’ around with their little media helper weasels imagining the People won’t get wise to them.
Superman has x-ray vision so to speak, and sees right through anti-American gamers.
The American auto industry can lead a recovery, the government knows it too. About the only sensible thing the government has done since December of 08 is help the American auto industy – something President Bush ought to have done a lot sooner, even right after 9-11-01.
The Prius is simply an advertising gimmick, another mind trick, albeit a gov’t subsidized one.
The only reason the cash for clunkers program got through and got extended is that GM enthusiasts, enough patriotic Americans made it clear to Congress not to get in the way, we persuaded the opposition. Of course, the gov’t has no business telling people what to buy and there probably won’t be another cash for clunkers, people are tired of the nanny state.
The government caused the health care inflation and market distortions and cannot even pass the ‘competition across state lines’ provision (but the door is supposed to be open to good ideas? oops). We’d be better off to “kick the can down the road” if competition across state lines is not the leading piece of legislation to deliver American companies from health care inflation. The gov’t exempted heath insurance companies from ant-trust laws during the New Deal. The government messed up the system of ownership and tax incentives regarding CT scan and MRI machines somewhere along the lines, shifting high cost leases to hospitals, financially strapping American businesses. The govt’ can’t manage or write a cash for clunkers program that was supposed to boost AMERICAN INDUSTRY, so how it could it manage a public option? Medicare is $35 Trillion underfunded . . .
Saving GM, so that GM can save America is more like it.
The American people are probably going to have to lead, since the government puppetiers are at it again.
Health insurance competition across state lines and CT/MRI ownership incentive and lease reform is the first step to relieve American companies of the runaway health care cost inflation.
The gov’t high tax rates on America’s companies nickle and dime them with deductions that drive them into debt during recessions. Cut corporate tax rates drastically, eliminate deductions, pay more wages, and profit sharing with less benefit largess, and that will begin to restore the savings and full time job growth to the economy.
Excessive gov’t spending and taxation is a dumb idea, about as dumb as pushing small cars.
Renting Prius is about like driving a golf cart on vacation.
Fuel will fuel the future, experts know it. America has a great abundance of oil, more than the middle east. Trillions of barrels and lots of safe environmentally friendly technology to recover it cost effectively in the new century. The new century has just begun.
Americans will probably need to FIRE their government again or as many times as it takes. Next time the People should have more job applicants to choose from. The current Congress hasn’t learned to live within the Bill of Rights yet, that civics lesson is probably coming for them. They should not think they can continue to run a nanny state, or that the Bill of Rights will not catch up to their assault on American free enterprise.
The latest data show the globe is cooling if anything, not warming. CO2 has no significant impact whatever on climate. If methane isn’t impacting the climate, CO2 certainly isn’t, since methane absorbs 20 times the heat of CO2. Eviro-lies, distortions, and half truths are not science.
Alternatives are ok though, sure why not have a few batteries, hydrogen cells, and electrics around, if it helps the American car companies make a profit.
In Hurricanes, Floridians like to have their back-up generators as an alternative, but a nation certainly should not expect to rely soley on alternatives.
The Hydrogen cell vehicle and the Volt show what we’ve always known, that American technology is superior.
Edwin writes, “The Prius is a dud. People don’t really want small cars. The gov’t had to buy the sales for them with cash for clunkers.”
If people don’t want small cars, why didn’t they use their clunker money for something they wanted? Clunker money moved a lot of small cars. As for being a dud, there are only two models of GM vehicle that outsell the Prius. Only one model of GM vehicle outsells the Prius at retail. That’s some dud.
Edwin,
I know many many people with VW TDIs that get well over 45 MPG which is higher then the EPA rating on them. These are the pre 2008 versions. The new ones get less but I have no doubt that VW has under rated their MPG ratings slightly. I wouldn’t be surprised to see a new VW TDI get 45 MPG. Still a lot better then 35 MPG that GM has. And since diesel in my area is about 5 cents higher then gas it is still a win. Cobalt should have had a diesel and the Cruze needs one. End of story. The cost myth isn’t as big a deal. Of course GM doesn’t own any decent diesel technology that I know of that meets EPA regs at least for small cars. But even $2K to $3K more in price would be worth it to me for the gain in economy and power.
I’m ok with it, if GM wants to make the product. It might be good for image. It would probably have to be ranked among the other image boosting products, offerings, and priorities. Perhaps a TDI diesel could be offered on the Colorado Z71 and the Cruze for image. Most of us do get significantly better mileage than the EPA ratings on gas engines as well.
However, given the commerical demand for diesel, the price might rise if more cars used it.
David your correct. Your also required to do everything according to the maintenance schedule (An expensive maintenance schedule) prescribed by Hyundai at a Hyundai Dealer or they will void your warranty. I have a friend who is a tech at a Hyundai Dealer in Canada and informed me of such. Such is the Hyundai smoke and mirrors 10/100. Its all in the details most people don’t know about.
“Your also required to do everything according to the maintenance schedule…”
Sounds like a mighty fine idea for the owner of any car who wants to keep it in tip-top shape.
“In short, we’re going to take away every last excuse not to consider a vehicle from Cadillac, Chevrolet, Buick and GMC.”
————————————————–
Bob, my excuse is that you are owned by the US govt and a union. When are you going to take away that excuse. And for every one of your new adds I see, I will make a point of telling someone why to avoid GM.
Vern, I understand your frustration with GM being owned by the US Govt.
As a concerned GM employee, may I suggest that you consider this position: the fastest way for GM to pay back its loans and become a publicly traded company with stock holders again is by selling lots of cars, trucks, crossovers.
Thanks for thinking about it a moment.
What kind of a person would deliberately sabotage an investment they were forced to make?
If you do the math, it is virtually impossible for the GM share price to ever reach such value that either the bond holders or US govt “get their money back”. My point is that keeping UAW-GM alive keeps a business model operating that has proven to be uncompetitive. This is never a good idea. UAW-GM should have been wound down and liquidated. I would love to buy an American manufactured auto from a company based in America with a modern effective business model. This means that it would not be owned by or controlled by a union or government.
The bottom line is this. You have got to offer in your vehice everything the compertition offer. But you have to do it better,better quality, better performance ,better styling ,better ride, better handling,better gas milage,better warranty and all of this at a better price. Sounds expensive. It will be in the short run. But we are talking about long term survival. You must remember GM has been off the radar for many buyers for nealy thirty years. During that time you have established yourself a very negative reputation. Some of it not deserved some it was. But never the less the reputation is there and it will be hard to shake. That is why you have to work extra hard to reestablish yourself as a major player in the auto industry. Every thing the compertition do you have do much better. Being almost as good is no longer going to cut it. Being just as good is not going to cut it. Being just a little better is not going to cut it. You have got to be way above and beyond every thing they do and have to do this at a better price. Expensive? Yes but we are talking reestablishment here. A prime example is the new Malibu. It is a great car but look where it is on the sales chart. You can no longer just make your vehicles tempting you have to make them impossable to pass up.
To me there is a limited amount of ads that should be made about GM. What I mean by this is that you are a car company. You sell cars and not the company behind them per say. I recently saw the new Cadillac “re-ignition” ad and it was artfully done. That is the kind of ad that sells cars because in the case of Cadillac, it makes them look desirable.
On the other hand I did see the “Let the best car win” ad and like a lot of Americans I was doing something else while watching TV in the background. I had no idea what the ad was about until halfway through. The ad itself is really well done. I actually liked it a lot. But it also had the same elements GM has put in a lot of their ads lately:
” We’re a good company, we want you to trust us, and we have a new way for you to try us with less risk”.
A select few ads like this are fine. But you need to think about moving beyond the apologetic reinvention ads and dive into hardcore car and truck specific ads. Ford is doing a great job of this already. The Taurus ads are fantastic. Its a family car yet they make it look like an upscale European touring saloon. They have nothing to apologize for. The ads sell the cars and the cars sell themselves.
If you really and truly believe that your vehicles are worthy contenders with the best of the best, then the message should not need to be spoken. The product will do the work for you. Make ads about the cars. The rest will take care of itself.
Edvard:
what you are proposing is exactly what they will be doing. I’m not sure what you are critcizing exactly. Lutz has already said this promo is ONLY about the new guarantee, it’s not going to be permanent. They will focus on brands, not GM as a whole. Lutz has also made it very clear ads will focus on attributes of the cars and direct comparisons with import rivals. What is not to like about that strategy? The 60 day guarantee should be a GM ad because its cheaper to tell people about this with one ad for four brands than it is to create four separate ads. What they are doing makes sense in terms of launching the idea of the 60 day guarantee.
Well if they are- then good. But what I’m getting at is that it seems that over the past 4-5 years, the most prominent ads from GM have all been about how they are reinventing themselves, making the vast improvements, want us to trust them, want us to know that they have the best cars, and so on. I think the public has only much willingness to stomach these apologetic ads before they start to question the motives. Thus perhaps I’m making a more generalized statement that might very well be reinforcing to what their future plans are. So it doesn’t hurt to say it again: Make the ads about the product.
What GM needs are more of the Caddy like adds (CTS add specifically). And then have all their promotions on there.
Another huge thing in my opinion is the 0% interest financing. I wish GM had it on all their cars (maybe they do??).
The whole trick is getting people to be excited about GM’s new products and giving them a low risk way to try them.
For instance my local Buick dealer is talking about extended demos on the new LaCrosse to give people a few hours in one. That with 0% interest financing is a huge incentive to go check one out.
Bring back Pontiac and just import all holden cars. No Solstice, no Vibe, no Torrent. Just the cars Holden currently has.
/rant
Mr. Lutz,
Will you be racing Wes Siler and his Mercedes C63? I want to see the CTS-V blow the doors off of the Mercedes. Please don’t back out, after all, you did issue the challenge.
Jalopnik readers want to know.
Could you please comment on the situation where everyone’s pay was fully restored that previously took a pay cut, but you continue to lay off people. How in the institution of economics is this a logical move?
I have friends that were laid off from GM today. Designers. Designers that you hired before they graduated college kind of good. They’ll of course move on to your competitors, so they’ll be fine, but…
Wouldn’t it make sense for everyone to cut back a bit for the greater good?
Kristina,
Think about it for a second. If there isn’t work for a person, there is no reason to keep them on the books, regardless of how much (or little) they are paid. If you have 2 people doing a job, and both took a 10% pay cut, you are still paying more money than if just one person did the job at 100% pay. With only 4 brands, there is less design work to go around, therefore there is less need for designers at GM.
I think it’s somewhat encouraging that GM is making these efforts. Though I agree with those who would prefer a better warranty. This isn’t really about gimmicks so much as about inspiring confidence. It’s about people knowing that they can depend on their Chevy to get them where they want to go no matter what. The knowledge that if you buy a Cadillac, Chevy, Buick or GMC it’s going to start the moment you turn the key or push the button. The only exception would be if the battery has died.
I keep reading in various financial articles about consumer confidence. That’s what GM is dealing with. Right now many people are unsure of GM vehicles. Education about GM quality through actual owner experiences may help in this regard. I see one rather misinformed person who claims GM vehicles have a high cost of ownership. Not true. It’s actually about on par with other manufacturers. I personally own a 2006 Chevy HHR with the 2.4L engine. I love it. It gets great fuel mileage, has never failed to start and in 3 years and 56,000 miles the only problem was that the thermostat went out. One $20 part and 20 minutes spent replacing it in three years. Not to shabby.
Very high depreciation on many GM autos are a big contributor to the high cost of ownership. Low resale value directly reflects consumer perception of an auto.
And the gap widens, between entry level Blue Collar Chevrolet and Doctor-priced Buick as a stepping stone to the stratospheric Accountants-only Cadillacs. A gap BIG enough to drive a , hmmm, let me see – PONTIAC through. Yeah, that’s the ticket. Make Edmunds list of top 10 sedans for 2009 and promptly shoot self in foot. All you had to do was follow through with DI V6 and 6-speed.
Even the worst lemon I ever owned ( a new Corvette) worked ok for the first 60 days. A 60 day guarantee is worthless. I wouldn’t trust them to honor the guarantee anyway. The 5 year/100k mile warranty is also meaningless because gm has always reneged. Their credibility for dealing fairly and their reputation for building quality is down the sewer and now they are grabbing at straws to sell their substandard junk.
They must really be hurting. Shutting down Pontiac and Olds was like a wino selling his blood. I hate to see them go completely belly up because of what they once were.
I dont know why I am posting because you seem hostile and unwilling to hear reason, but here it goes:
What proof do you have that GM doesn’t honor warranties? Many make these accusations without detailing how they can back them up. This 60 day guarantee isn’t about long term reliability, its about getting to know a car and its faults. In 60 days you can assess ergonomics, build quality, engine performance, quietness, etc. To suggest that 60 days isn’t long enough to discover problems is absurd. BTW, you should note none of GM’s competitors offer such a guarantee although you and others here spend a lot of time telling the world how their products far exceed anything GM offers. Its kind of like the folks complaining about GM’s warranty even though it exceeds what the Japanese offer. What sense does that make? When it comes to money back guarantees your choices are GM or NOTHING. You decide which is the better option.
As I said, I was happy with my vette the first 60 days of ownership. It was later that I discovered it was a lemon ( and believe me, I’m being very kind by just calling it a lemon ). Yes, gm has reneged on warranties in the past. I didn’t list them because it would sound like a rant. If you think I sound hostile at simply mentioning the problems, you would freak out if I described them in detail. Like you, I used to defend gm and I was one of their most loyal customers. The last 3 cars & pickups I bought from them were so crappy I started buying from their competition who is light years ahead on quality and service.
Sheth,
What you seem to be miss understanding is that people hear warranty and they think it means that if anything goes wrong it will be fixed to like new. Such an expectation is certainly understandable with the way warranties seems to be marketed. People don’t see Advertisements on TV that say “5 year/100K power-train warranty” with a bunch of sub text that tells everything not covered (or everything covered).
To me power-train is anything that connects to the wheels (brakes, shocks, ball joints, axles, transmission, engine, exhaust, fuel systems, etc…) but GM doesn’t define things the same way.
When I hear bumper to bumper warranty I expect to walk into the dealer with a problem that has developed and hand them the keys and walk out with a car that is fixed to like new condition for the duration of that warranty.
Not have some dealer tell me sorry that part is a wear item and not covered under warranty (such as shocks and ball joints etc…). Or if it is an engine problem like a faulty water separator in a diesel that wipes out injectors. Them to say “GM’s water separator failed and ruined these other parts we’ll fix them”. Unfortunately in the past these types of things boil down to arguments between customers and dealers (who claim its not their fault the customer had water in the fuel).
I don’t care if other car companies don’t offer this. We’re discussing GM and what GM potential customers expect. As a GM customer if they say bumper to bumper I expect anything that goes bad to be fixed. It of course would be in GM’s best interest to make a car that can live up to this expectation even if it costs me more. Not to mention other companies do offer warranties that people seem satisfied with.
Oh, my mistake. I thought such things as camshafts and piston rods would be covered by warranty. I find ironic you called me unreasonable and yet asked me for proof gm reneged on warranties. Ok, I’ll send tape recordings of my discussions with service managers and copies of letters I wrote regional managers. I’ll even send copies of replies the regional managers never sent me. How’s that for being reasonable?
Do you really think you are going to convince me that my lemons were great cars and gm provided wonderful service? Why do you think gm went through bankruptcy and needed the government to bail them out?
In America, people understand clearly what a wear item is. It makes no sense for someone to allege otherwise. Wear items have a limited coverage.
GM warranties are the best in world. Major foreign car makers haven’t matched GM powertrain warranty. Most owners will never need to use their GM warranty from our experience, oberservation, from what we’ve read, or heard from others we know, and when they do use it, we’ve noticed that GM honors their warranties and takes care of the customers.
GM reports lower warranty claims, that’s was a reason cited that they chose off the 100,000 mile powertrain warranty. GM’s warranty commercial said, “Because we can.”
Clearly, when a large mass market company like GM which offers a variety of products to a wide demographic and has low warranty claims and offers a 100,000 mile warranty, that shows openly that they are a success. They should receive praise.
We’ve heard of issues from people who own almost every brand of car. But comparing what we’ve heard about American brands like GM and Ford, what we’ve observed, read, and researched, we would still choose or recommend brands from these companies over a foreign company brand. Chrysler’s premium products and those who own a new Chrysler seem to have a good repution among those we know, and with nothing negatirve to report.
When I read a biased review of an American product, its negative bias is obvious to the informed.
We choose GM dealers for routine service for their high ability and reputation. Of course, some GM dealers may be better than others.
GM, from our expience, encounters, observations has the highest integrity of any major company. I highly recommend GM products openly and honestly. This is our experience from across several cities and states and from many dealers.
For that matter, would say good things about Ford as a major company overall, especilly Ford’s premiums products. Ford Motor Company has the highest integrity among major companies as well. The newest Ford products are among the best in the world. The new entry level Ford products are among the best in their class.
Took delivery August 15, 2009 for a 2010 Camaro SS. Sales Manager refuses to send back or resell the gray ground effects that do not match my Black car. They have not been installed and still in the box at the dealer. Am so disgusted with Chevy Sales that I no longer want the car. Any chance to retroactive for return ot the car cost?
G.M. has never made a high quality hatchback to compete with the likes of the VW Golf or Mazda 3.
I’ve made the switch to other car makers because of this. I’ve bought a Mazda and a VW.
Still waiting for a Golf beater from G.M.
I know the Opal (Saturn) Astra was close but unfortunately, underpowered and without a diesel option.
Now, of course, Saturn has been sold.
Anything coming in the fuel efficient hatchback category? Diesel?
I’d love to go back to G.M.
Thanks,
Charles
15:03 ~ [Comment From jean halliday ] Can you please tell us the brand positionings for Chevy, Buick, GMC and Cadillac……ie what makes a GMC a GMC?
15:04 ~Bob Lutz: GMC is Professional Grade, and we will in the future be increasing design and functional differences between GMC and Chevrolet.
________________________
Please define exactly what “professional grade” means to you and the other executives at GM HQ.
To me it should mean the truck that carpenters, ranchers, plumbers, contractors, etc. would chose because of it’s durability, and because it has higher quality components that are less likely to fail when the going gets tough. The truck to use when getting a job done right and on time is at stake.
But few working class professionals I see are driving GMC trucks ~ most are driving Fords, and Chevies, and a few MOPAR Rams.
GMC seems to be more for the carriage or estate set ~ the people who drive Buicks and Caddies but wouldn’t want to be seen driving a Chevy truck.
So which is right when you say “professional grade” ~ the truck for professional working people, or the truck for the gentry who need something that signifies their social class is a notch higher?
I sure hope “they” correct me if I’m wrong. To GM, GMC’s target is Acura, Lexus, Mercedes-Benz. Certainly a HHR is no match for a MDX. Paying $51,000 for a gussied up Tahoe (Yukon) certainly defines a different profession than you or I are thinking of. Bet they can’t wait to get that Denali concept on the road at Corvette pricing. Oh, wait, a product from down-under, it’ll never see the light of day – or our shores.
Paying $51,000 for a gussied up Tahoe (Yukon) certainly defines a different profession than you or I are thinking of.
Good one Chief. Perhaps you’re right and “professional grade” refers to the oldest profession, and not to hard-working, professional trade people who need a reliable, durable truck they can depend on as a tool of their trade.
GMC trucks v. Chevy trucks?
All part of GM’s insidious plan to perpetuate and profit from the odious concept of class distinction.
No different than Nissan and Infiniti trucks or Toyota and Lexus trucks. Of course when you talk trucks you have to put anything from Toyota or Nissan in “-” because they really don’t make trucks. They make “trucks”.
Like most people I take a lot of pride in my car. When it breaks I’m not happy and if it breaks too often I’m encouraged to look for another one most likely from a different manufacturer. My last three cars however all had one problem in common. all were different makes, yet they all had an expensive repair to make around the four year mark. Most people would trade it in at that point but I keep my cars considerably longer and I don’t think it’s unreasonable to expect the air conditioner to last the life of the car. If that’s not possible as seems to be the case why isn’t it a simple fix? More than once I’ve had one part replaced only to have another go bad a couple of months later putting the repair cost close to two thousand dollars or more. ripping out the dash just to replace the evaporator, (the most expensive fix), every four years seems crazy. This is not acceptable. I’m watching the car market with interest to see which way I will go the next time I decide to buy a new car. Currently I’m living with the broken ac unit rather than pay the nearly 2k the dealer quoted me. I’m sure I could find a cheaper repair but I’ve been down that road with equally exasperating results. I’ve decided to go with a power inverter and a self contained portable ac unit for my truck. I don’t think I could do the same if it were a car. My question is why can’t the ac unit be designed like this since they seem to be so unreliable?
I really want to see GM succeed. The only thing I can say, is you really do need to reconsider your ad agencies if the current ad with Ed Whittaker is what they came up with. I realize you needed to get information out there, however, you can do this in a more dynamic way than a Chairman of the Board reading the teleprompter. Think Fed Ex for example… the p-ho-nix (phoenix) commercial was priceless… I laughed so hard I almost cried. The fact that I still remember the commercial says something, doesn’t it? This commerical reminds me of the old Lee Iacocca commercials, and where is Chrysler now? The 30 day guarantee reminds me of the Oldsmobile Edge, and where is Oldsmobile now? Think outside the box! Think abstract… think eye catching… think of new ad agencies!
Hello Bob keep up the great work! we are all behind you 100%.
Okay, I should make clear that when I say Equinox beats Ford’s fuel efficiency, I’m talking highway fuel efficiency — Equinox gets 32 mpg highway, the Ford Escape Hybrid 31. That said, I think that the Equinox is just flat out a better vehicle than the Escape for many reasons, highway fuel efficiency being just one of them. We’ve got no fear at all about consumers making a direct comparison — in fact, we welcome it. That’s the whole point. So in the words of a couple of advertising campaigns: go drive one… then drive an Equinox, and may the best car win. I’m quite confident that people will pick the Equinox more often than not.
I think that the Equinox is just flat out a better vehicle than the Escape…
With all due respect, you had better think that, or you have no business even putting it in show rooms. But, I’m sure Ford thinks that of the Escape too.
I think you have to admit that there have been times in GM’s past when they’ve put cars in showrooms that they knew — deep in their heart of hearts — were inferior to the competition. That legacy is your real enemy.
This program is pure genius and I applaud GM for sticking it in the face of those unAmerican idiots who sell out their Country by buying Garbage foriegn products. “May the Best Car Win” will not only show those import owners how much of an embarrassment they are, but will teach them that they have been ignorant idiots all along and should be dumpiong their POS for a GM product before it’s too late.
Everyone would rather drive a GM vehicle that will last hundreds of thousands of miles with narry a wimper while their POS import will be in the scrapyard by the time the warranty expires, whether it be from massive engine failure, transmission failure, frame failure or any of the other major problems that plague those japanese and European pieces of garbage.
And for those ignorant scumbags who want to believe that vehicles built by foriegn automakers here in the states are worthu of purchase and bring American jobs, let me tell you how wrong you are and how stupid you are. Get a clue. Buying an import built here still contributes to foriegn economies and does nothing to help America. Nothing. These people who work for foriegn plants are traitors to America, commiting vial acts of treason by making a living at the cost of American.
Any American who works for foriegn companies needs to be kicked out of this Country as they DO NOT belong here! Any American who works for a foriegn company deserves to lose their job. Maybe it will teach them a valuable lesson in treason and traitorism.
This is GM Country, Everyone would rather support GM than any other automaker on the planet. It’s just not cool to drive anything else.
Be American. Buy American. buy GM.
It is your patriotic duty as Americans.
Mr. Lutz,
I left the car business after 17 years as a Buick GMC Pontiac salesperson in December 2008. I currently owner of three Buick’s and one GMC, mostly classics. I stopped by my old dealership a couple of weeks ago and finally got a look at the new 2010 Buick LaCrosse with the 3.0 V6 at $33,170. I hope the car is successful but these are my initial impressions.
1) What the heck were the designers thinking when they went back to trunk lid hinge arms that recede into the trunk? The trunk is not that big to begin with and they take up a lot of valuable room. Heck, my ‘99 Buick Regal has external truck lid hinges with gas shocks and don’t get in the way of anything.
2) Fuel mileage with a direct injected gas engine in a smaller displacement is no better than what I actually get with my 3.8 V6 in my ‘99 Regal. I would have expected more.
3) Styling is important but visibility out the rear window in the LaCrosse is nothing to write home about and actually limiting. Your going to get even more complaints on that from older customers.
4) Pricing is steep. Compared to a comparable Ford Taurus Hybrid, I’m afraid the LaCrosse would lose out if I had to buy a new car today. I have never owned anything other than a GM vehicle and to this point, a fierce advocate for GM products.
I still won’t buy an import, however now that the taxpayers own GM and in view of managements missteps in years past by not standing up to the UAW, poor product quality, design and marketing, even I would have to be considered a conquest sale in today’s market.
Mr. Lutz,
I just had the opportunity of sitting in a few more new GM vehicles at the local dealership. The vehicles I sat in were: Enclave, Acadia, G8, CTS-V, CTS, STS and the new SRX.
The biggest disappointment was in the Enclave. The Enclave is a great looking car inside and out but.. The seats were less then impressive especially compared to GMC Accadia which has very plush soft seats compared to the Enclave. What bugs me as a Buick driver is that the Buicks of the past had very nice seats in them. I actually feel as though an Enclave would be a step down in comfort from my 20 year old Buick in terms of seating comfort.
Is there a way GM could make the Accadia seats an option in the Enclave?
That would round out the Buick luxury package.
I also sat in the G8 GT and was also disappointed. The rear seats are more comfortable then the front seats in the G8. It’s a shame that they aren’t a bit softer. If the G8 had better seats and better designed cup holder I’d probably seriously consider one for my next car.
The CTS-V amazed me. The color scheme and aesthetics of the seats are incredible. I don’t think I’d ever buy one as a daily driver but as a performance car it was quite impressive. I wish GM offered a scaled back version of the CTS-V with similar interior perhaps a bit more cushy sport seats and an AWD Turbo engine in the 400 HP range.
The overall wow factor on the CTS-V was enough to make me think twice about buying a regular CTS. Its to bad those options aren’t available in the regular CTS.
The STS is a great car but really needs a younger interior and a bit younger exterior. If I was buying a car this week I would be deciding between an STS, CTS and a LaCrosse or Regal. The STS is probably my favorite choice in terms of luxury the seats are nice and there is plenty of leg room (I can’t say that as easily about the CTS). The downside with the STS is that it is rather old person looking to me. The additional room inside makes it appealing compared to the CTS but the styling kills any serious thought about buying. I’ll have to wait and see if the new LaCrosse is what I’m looking for.
The most impressive was the SRX. The SRX looks nothing like any GM I have ever been in. Nearly every detail is spot on. I was very impressed with the look of it inside and outside. The only real complaints were the Navigation system interface felt hard to use though I didn’t really play around with it to much. The only other issue I could think of was fuel mileage hopefully the turbo 2.8 fixes that.
One feature I really liked on the SRX is the round LCD screen on the dash. I wish the CTS were offered with this and perhaps one where the analog clock is (I have no interest in analog clocks).
Hopefully GM will offer the SRX as a Buick as well.
I’m looking forward to seeing the first of the LaCrosse’s that should be at my local dealer this week or next week.
I hope GM has some exciting plans for CTS, and STS updates and the rest of the lineup.
What do I think of the new campaign? I think that it is a GREAT idea. Yamaha, through its golf car division, launched its ‘May The Best Car Win’ campaign back in December of 2008 and continue to use it today. Prior to launching the Campaign we acquired the URL ‘maythe best car win.com’ and ‘maythebestcarwin.net’.
I would have thaought that if GM had done any research at all, you would have realized this and attempted another approach. To me launching a campaign like May The Best Car Win without having the corresponding URL is an incredible blunder by your Marketing Department.
To me launching a campaign like May The Best Car Win without having the corresponding URL is an incredible blunder by your Marketing Department.
Aw c’mon Kevin, do you have to rub it in like that?
GOOD NEWS
GM announced it may increase production of four models. LaCrosse, Equinox, SRX, and Camaro which are exceeding expectations. Adding jobs and production will get the public attention.
http://www.reuters.com/article/GCA-Autos/idUSTRE58F3X620090916
These vehicles are selling without cash for clunkers.
It proves that GM is missing business on retail turnover of popular selling models. It supports the proposition that people would buy more often if GM had the inspiring designs. Some would add another car if offered that beautiful design.
Slower turning inventory also may sell better when it is complemented by higher turning inventory. The way to improve profits is to maintain retail turnover.
The 2010 LaCrosse may just turn the tide for GM. It appears that the new LaCrosse marks a turning point for GM in this economy. The new LaCrosse and the Malibu are already boosting GM’s image. Keep the great cars coming.
Stunning designs will turn the tide for GM.
We heard the term manufacturabilty. Lackluster designs that are manufacturable will not produce turnover. High impact products like the 2010 LaCrosse create energy and exitement.
There are still many Park Avenue Aurora, and Bonneville customers who would buy new cars now if GM had a model that inspired them. A design with the flair of the 99 Aurora and a name like Riviera sedan would really energize GM’s base to buy. This segment can lead a recovery in the economy too. These buyers are more recession proof and GM is missing too much executive car business in the affordable luxury sport segment. A focused model that has high profile exposure like a Riviera sedan would wake them up. the Lucerne has dissappointed many of these buyers on exterior styling, even though the Lucerne is well made and has nice features and nice interior and has sold fairly well. Many many Park Avenue, Bonneville, and Aurora customers want nice looking car and they aren’t going to buy the Lucerne. the want a flagship Riviera sedan with a small V-8 (4.0 or 5.3) option with a base 3.0 that has the potential to take Avalon and ES350 buyers and undercut many Lexus GS sales for GM.
GM should annouce that it is so pleased with the Malibu that it is adding a 5 speed manual to the mix with a spoiler option. That would draw lots of attention to Chevy. GM could use this to make the news.
Also, there seems to be a significant number of people who would like GM to offer a TDI diesel in products like the Cruze and the Colorado Z71. It comes from VW owners. My VW friends have suggested that GM should offer this too. This type of announcement would excite the market. It would help GM’s image among these buyers, even though it may be a small segment, it would probably enhance overall image. The Chevy Cruze may attract some VW buyers.
The most important goal GM should have is creating great new cars that inspire people to buy them. Let’s offer the popular engines as an option in the best sellers to make them number one sellers. People really want to buy American as the polls show and Buick can lead a car revolution for GM.
Consider how much more energy excitement and sales Buick would be experiencing if it already had some of the new models GM enthusiasts have suggested.
The Ford Fusion SE is the Best Car in the Mid-Size segment and why it is selling as well as it is while maintaining low inventory levels and greatly increasing Ford’s marketshare in this lucrative car market segment.
The question is will GM repond and match the standard Fog Lights and 6-way power seat of the Fusion SE and offer the 3.5 V6 as a retail option on the 1LT model for 2010?
Look at the numbers for the Fusion SE and Malibu 1LT that many people buy.
2010 Fusion I4 w/6A plus Sync Pkg $22,690 vs 2010 Malibu 1LT I-4 w/6A plus 6-way Pwr Seat Conv Pkg $23,960 (a difference of $1,270),
And the Malibu does not have:
Fog Lights
Fold Down Front Passenger Seat
Rear Seat Center Arm rest or center head rest.
What is worse when you can add a V6 to the Fusion for about the same price.
2010 Fusion SE V6 w/6A plus Sync Pkg $24,305 vs 2010 Malibu 1LT I-4 w/6A plus 6-way Pwr Seat Conv Pkg $23,960 (a difference of $345)
And the Malibu does not have:
V6 Engine
Fog Lights
Fold Down Front Passenger Seat
Rear Seat Center Arm rest or center head rest.
I can buy a 2010 Fusion with a V6 engine about the same price as a 2010 Malibu with a 4-cylinder – might be why Fusion sales are rising.
GM can create a Malibu 1LT with 3.5L V6, Fog Lights and 6-way Power Seat at a price of $24,640 (with good margins since price is based on retail priced V6, Fog Lights and 6-way Seat) to match the Fusion SE V6.
So Malibu 1LT V6 = $24,640
and Fusion SE V6 = $24,305 (a difference of $335)
If GM approx. cost of options is used:
So Malibu 1LT V6 = $24,395 (roughly) (a difference of $95)
and Fusion SE V6 = $24,305
The 2010 Malibu 1LT must must match the Fog Lights and standard 6-way power seat of the Fusion SE package for $22,750 and add the 3.5L V6 as a retail option for between $24,395 and $24,975 to compete and improve sales.
What is there to lose?
It will cost nothing to do since the 3.5 V6 has been a fleet option for the new Mailbu since introduction and has a 29 MPG rating vs the 30 MPG of the 2.4L I-4 with the 4-speed. The same logic applies to the Fog Lights and 6-way power seat; they just have to be made standard on the 1LT trim. Why not let the retail market tell GM if a 1LT trim with 3.5L V6, Fog Lights and 6-way power seat will sell?
If GM is ever going to regain market share and boost Malibu sales to the 25,000+ a month level the car is capable of it must make MAJOR changes to the Mailbu.
Sierra,
Nice idea to compare, but I don’t think the buyers of the Malibu and the Fusion are going to base their decision solely on price.
Both are very good looking cars. The Ford has some nice features. I think the buyers would more base their decision on how they like the styling, comfort, and feel much more than a slight price difference.
Fusion may get undecided buyers from Honda, while Malibu may get undecided buyers from Camry.
The Malibu has great styling, comfort, and feel. These strong points are key selling features. The Malibu has very strong rear profile which may give it an edge, while both cars have great overall styling.
The Fusion has great styling, some advantages on trunk space. So its practical.
It might come down to which one the customer liked on looks. The Malibu has strong quality and has a high American content.
new Taurus has great styling, very comfortable, feels great, and has lots of trunk space and interior room. the 2010 LaCrosse is a beautiful design, very comfortable, and its really selling.
One advantage for GM is the Bose stereo name, while Ford is using Sony. Bose is probably better on name than Sony.
Edwin, Based on my experience selling new cars to customers in the mid-size family sedan market, I would disagree with the idea that these buyers pick cars by styling over content. I have had to deal with customers with printed lists of cars and exactly what each car had and what they did not, the ones with missing features were the first to be crossed off of the list and that is why the Malibu is the worst selling of the major midsize cars (Accord, Altima, Camry and Fusion).
The Malibu’s main competitor is the Ford Fusion and the fact that it cannot compete with the Fusion SE on price and features is unacceptable, especially in light of the fact it is easily corrected.
I recently spent 2 weeks driving my Dad’s Impala with 3500 V6 and experienced plenty of power and 24-26 MPG in mostly urban driving and was very happy with the power/MPG of the 3500 and found it much better than what I experienced in a 2009 Malibu with 2.4L and 4-speed and that was on the mostly flat roads of SoCal not the quite hilly terrain of the Northeast where the 3500 V6 shines with good low end torque and high MPG for the power delivered. The 3500 V6 is quite popular with the 6-10 million owners of midsize GM cars powered by variations of it and is desired by the loyal GM owners in the Northeast, a group GM has seemed to have turned it’s back on despite their long an loyal support. GM has to create a Malibu model that appeals to these potential buyers – as they say “you have to dance with who brung ya”.
I also found the 6-way power seat in the Impala superior to the 4-way one in the Malibu which after only 15 miles on the Freeway had my legs cramping and wanting out of the car.
The lack of Fog Lights on my Dad’s Impala has him hating the car more every day since the 1998 Malibu LS I sold him had them as standard equipment and much like remote entry, express up/down power windows and other features you may of thought of at first to be “more than needed” or “something I will only use occasionally” becoming a feature you will have on every vehicle you purchase in the future. The Mailbu I drove also did not have Fog Lights and neither the Impala or Malibu’s lights were adequate on backroads – with or without Fog.
The lack of Fog Lights on the Malibu have already knocked it off of my Dad’s buying list when the lease expires on the Impala soon and put the Fusion SE at the pinnacle since all he has to do it find one in the color he wants and not worry about what it does not have on it, will have to pay less for it and gets desirable features (future “must haves”?) like a fold down rear seat arm rest and fold down front passenger seat. Bear in mind he has the max benefit on his GM card but no amount of money is worth buying a product that is missing a feature you “must have” and he knows this first hand since that is how he ended up with the Impala.
Pity, the Impala is a very nice car and the Malibu even better but neither is in the same league as the Ford Fusion. The Fusion is superior to the Accord, Altima and Camry since it offers the Fog Lights they do not at similar price points and gets comparable or better (in “S” trim) than even the Malibu. Honda, Nissan and Toyota can afford to not give buyers features like Fog Lights on lower levels due to their high quality/value image, although Toyota does offer them on the very competitve Camry SE trim level and maybe why the Camry is the best selling midsize car.
Small details like Fog Lights on the right trim level have placed the Ford Fusion at the top of sales of Domestic brand mid-size cars and the Toyota Camry at the top of both Import and overall sales (maybe Chevy should offer a Malibu SE since it seems that trim designation gets it right).
GM must decide if it is willing to make the necessary changes required on the Malibu options list to compete or follow – there is no redesign required, just a no cost shuffling of equipment with a direct mail campaign to existing GM midsize owners to get them into the dealer and take delivery of the Malibu they have been waiting for.
Sierra,
We see feedback in these blogs that customers are frustrated with car sales people/dealers who don’t hear the customers wants and needs.
Some people may be concerned about a 4 way or 6 way power seat, so its nice to hear the comparision, but probably many more are simply concerned with the overall comfort of the seat.
The Malibu and the Fusion are both comfortable. The Malibu seems to have a higher level of comfort and economy which may justify the price. The Malibu seems to target more the Camry customers who may be motivated by chevy quality, style, comfort, and econonomy, while the Fusion seems to target more the Accord customers who may be motivated by Ford perforance, durabiltiy, style, and practicality.
Are customers growing tired of the Accord-Camry’s cookie cut image?
Ceterus paribus, people pick the style they like, and if its American and they like the style, and people are aware of the choice, the polls indicate they are more open to considering the American model. This is where both the Fusion and the Malibu stand to gain.
The Malibu might consider a 5 speed manual as an image enhancer.
Statisically, it would probably be a much larger boost for the Malibu if the Fusion became a national best seller or vice versa, and detracted attention from the Accord and Camry for a change.
Edwin, Did you read my post at all?
First off, I would use the information of what customers were asking for in their next new car and if we did not have it and lost the sale (which usually happened) and if possible order new inventory that had the requested features and turned future lost sales into profitable sales for us since none of our competitors would order what the customer wanted (even though they specifically asked for it), so we made a higher profit margin on our sales since having the right product eliminated our need to cut price to sell cars. Our customers were very happy with our dealership as was confirmed in our solid CSI and SSI numbers.
Some bad CSI numbers can be traced to customers realizing the “great deal” they got on a car was nulified by the fact they did not get features other cars had, so the customer feels “taken” and reacts with a very poor CSI score and make sure all of their friends know that a certain company intentionally leaves features off to boost their bottom line with no real compassion for customers. They also always seem to have more problems with their cars and give equally poor SSI scores for warranty work. GM’s “savings ” of not offering Fog Lights, 6-way power seat and affordable V6 on the Malibu 1LT will cost them multiple times what they think they a “making”, and would explain why the Malibu and sufffers “perception problems” and sells poorly in SoCal. The Malibu will never come close to selling at the top of the midsize market as long as this “sticking it to the customer” attitude remains (I have heard this from potential GM customers who took time to look at a Malibu). SoCal buyers expect Ford and GM to “give” them something to earn their business – and is why Ford’s new 2010 Fusion enjoys a visable sales advantage on the roads over the 2008, 2009 and 2010 Malibu, Ford gets it and sells cars in California to “Conquest Buyers” while GM refuses to budge and loses sales to Ford.
The Malibu 4-way seats are not comfortable, not at all and need the tilting lower cushion to make up for some of it, the Malibu also lacks a rear seat center armrest, center rear passenger head rest and the front passenger seat does not fold flat like the Fusion so how is the Malibu more comfortable or better?
I doubt there is much difference in the MPG between the I-4 powered Fusion and Malibu since the Fusion S has a higher MPG rating and the Fusion SE is only slightly lower so the real world number is most likely between the two and very close to the Malibu, so the Malibu does not clearly offer better economy. The only Malibu that would have a chance is the 3500 V6 version which GM choses not to offer since it has a higher MPG rating than the Fusion 3.0L and most owners of GM’s 3.5L V6 exceed the rated MPG so GM once again throws away an oppurtunity to make market share gains with midsize V6 buyers.
Customers are not tired of the Accord-Camry styling as the sales figures illustrate and IMO the latest versions are attractive and “push” design further from the “safe” center and the stylish 2010 Accord Coupe has no GM competitor.
Ford will gain market share from Accord-Camry owners due to it’s competitive styling with superior value of price/features that today’s buyers want and there is no difference in Accord-Camry owners preference between Ford and Chevy, in fact I see far more ex-Toyota owners driving Fords than Chevies – at least in SoCal.
The manual transmission is not an image enhancer in the midsize market and will continue to slip in popularity in the U.S. as more drivers unwisely choose to “multitask” while driving.
The Fusion will see a boost in image with strong sales due to it’s inherent compelling value that cannot be ignored, the Malibu on the other hand becomes more forgettable every day, even with more advertising.
Interesting that the Malibu in the “May the Best Car Win” web ads has FOG LIGHTS on it, the irony being that the hands down worst Malibu is the LTZ when compared against any rival and is the only Malibu that has Fog Lights, funny how a $125 set of Fog Lights costs nearly $5,000 – wonder why they don’t sell?
Is GM trying to pull a fast one on customers and get them all excited with the Malibu LTZ then find that the one they can afford looks nothing like it and is missing quite a few features? They are not fooling SoCal buyers, they are only giving Ford more customers.
SoCal buyers demand the best price/performance/feature combination on the market (I know I have sold cars to them, adjusted to their needs and been successful), the Ford Fusion has what it takes and GM’s offering does not.
Hello GM community
Fresh evidence in the world of Quality and attention to detail. A friend and I made our way to the local pub for wings last night. Beautiful evening with lots of sunlight.
Pulled into a tidy parking space in my wife’s 2008 Honda Fit(gunmetal silver)–left the 2008 Accord at home–, right next to a brand new Chevy Cobalt(silver).
I’m assuming the Cobalt was new–at least a 2008– as it had rental car stickers all over the bumper. I suggested we take a walk around each vehicle for a quick visual inspection.
Now right off, I could only wish that Ed Whitacre had been there for the walk around and ensuing discussion. The first most most obvious, in fact glaring difference was fit – no pun intended– and finish. This was most evident in the way the headlights related to each vehicle’s hood, fenders, and wrap around bumpers.
I can’t help but say the Honda’a execution of this *very* up front part of the vehicle is almost completely flawless. The designers also paid attention to how the design might impact the factory worker’s ability to get it right, in the the little time allotted for assembly.
Again, if one examines the Fit, this attention to detail is pretty well repeated throughout the exterior details(God is in the detail). A quick look around the interior shows the same attention.
If only I could repeat the same report for the Cobalt!? But I can’t in good conscience.
Whoever designed the front bumper as an example, did not consider ease of assembly, with a design that is more forgiving in terms of getting it all *right*, to produce an end product that’s either equal or superior.(ie;May the Best car win!)
The Cobalt headlight needs to be placed–by the assembly line worker– so precisely, in order to look *right*, and if its even a few sixteenths of an inch–three millimeters– out, then it starts to look shabby.
In fact if you stood over the head light, peering down, one could see a big empty space, possibly down to the ground?
One other stark difference is the quality of materials used in producing each car’s logo.
Honda doesn’t seem to differentiate the quality of it’s *H* Honda Fit logo, to that of the *Accord*, and right up into it’s *Acura* automobiles.They’re all the same material and quality.(Excellent)
Not so for the Cobalt, General Motors’ flagship small vehicle. As of yesterday, remember there’s now a million of them *speaking loudly* on behalf of so called GM(Chevrolet) quality.
The Cobalt Chevy logo quality, is inferior to that of it’s more expensive cousins, *Tahoe*, *Silverado* and *Impala*.
Quality has to start from the ground up, and remain constant.
Now here’s an example of how quality translates into success worldwide. In 1991, I leased a brand new Sea green Toyota Tercel, after four happy years with my 1987 Toyota Tercel.
It quickly became apparent to me, that the all roundy looking 1991 subcompact, was in fact the proving ground for all the new Lexus models, appearing in showrooms about a year later. This car was *the* most base model available, but the fit and finish of it’s body panels were as flawless as that of my wife’s 2008 Honda Fit!? So that’s almost twenty years of Toyota–and lot’s of other manufacturers– paying attention to these seemingly small details. It doesn’t happen overnight, and I question how General Motors can claim that it somehow has reached this pinnacle, in the few short months out of bankruptcy.
I’m not at all suggesting that General Motors doesn’t now understand, and execute this type of quality in the majority of it’s vehicles, but to see the poor quality evidence for myself in the form of a late model Cobalt–one *million* and counting– was more than a bit shocking, and something Ed Withacre et al ought to be concerned about. I was under the impression that GM was further along in it’s entire line when it comes to quality. One need not go back ten plus years to find poor quality.
On a slightly different note, I wouldn’t describe myself as a GM basher…Fastlane troll, as some contributors might suggest. I’d like to see General Motors succeed again in the
United States and abroad. General Motors likes to describe itself as a Global player, which in fact it is, but it ought to be mindful that at times it promotes it’s vehicles to Americans, with cars that Americans will buy. As a Canadian, my local Provincial government and Federal government(my tax dollars amortized over twenty or so years) have paid dearly to help float General Motors to it’s current position.
I understand that GM is an American company, but being a little more inclusive in it’s promotional campaigns, might not be a bad idea.
A few people have suggested in this forum that General Motors ought to completely distance itself from it’s logo–the Blue Square. Bad idea and the opposite is true.
I say that if you took ten neatly stacked piles of bricks(all identical), and placed a car logo in front of each one, some piles would look more appealing than others.
I think ironically though, the pile with the *GM* logo, would command a lot of respect, right up there with the *three pointed star*of mercedes, the racing flag of BMW,
and that of the more affordable Toyota, Honda, Ford and Subaru.
The old saying goes that *you ought to be proud and willing to place your name on your product of excellence*.
At the very least General Motors should consider placing the GM *Blue Square*, dead center on the *Bowtie*, if it won’t in fact place the * Blue Square GM * on the grill outright. I opened my local newspaper to see the all new Traverse, but sadly had a tough time seeing beyond the logo, which appears tired, in need of outright replacement or modification.
So with respect, let’s hear a little more feedback from the *suits* on some of this info,
and also what other contributors have to say.
Thanks
Chas
Chas,
Not really sure where you are coming from.
GM brands and logos are all world class. The latest Chevy golden bow tie is a fanastic logo. On the GM cars w’ve owned, as well as the entire line-up, we’ve always appreciated the logos and imagery of all of GM brands. The GM customers view the GM logo as a mark of excellence.
The Honda Fit? What fit and finish are you speaking of, the Honda Fit isn’t much more than a tinker toy, not to mention its shrunken minvan design look isn’t really attractive. So its hardly a way to make a comparison.
As an illustration, a tuna can may have an element of quality to it, for example, but that wouldn’t imply that it was a good vehicle design.
GM is right to focus on its individual brand advertising for the present, rather than the blue square logo, since its plan of a stock offering is next year.
Its Time to take off the gloves with your Marketing. You have to put it right in Toyota and Honda’s face because we can not loose this time. I seen a car hauler full of new Camero’s going down the Highway. We needed a sign on the Rear loaded Camero that Said ” Toyoto and Honda You cant toutch this!! Same thing with the Cadillac CTS’s … against BMW and Mercedes. The new Buick la cross against the accords and camary’s. Anywhere our vehicles are in public let it be known that they are better. Hire MC Hammer to use his phrase in marketing ” you cant touch this Honda and Toyota! Dont lay back bobbing and weaving … you got to go right at them. Think your going to offend sombody… I doubt it and so what if you do. Being nice to the competition helped put us in bankruptcy, Bob go right at them !!!!!!!
Bob I know that you know this but let me reiterate this point. The name of the game is perception, perception,perception. This is the game that we have to win at. This is sad but I bet that you could tell toyota and honda that you would give them $4000.00 dollars for every emblem that they can manufacture. Their cost to manufacture emblems would probably be about 29 cents each. They could close all their U.S. factories and go home making the same amount of money producing emblems with 10 employees. We could take these Emblems and put them on our vehicles and the media and 50 % of the public would rave at how great these vehicles are. Here is the point. Our vehicles would win every time if we had the emblem. The question is How do we beat the Emblem?
Joe,
I’d like to beg to differ on the premise that Toyota and Honda build a superior product. I myself am a lifelong Toyota owner. Yes- pretty much every one of them has run for 100’s of thousands of miles without a hitch. If you were to ask me in say- 1996-1998 who builds the best cars, it would be easy to make the choice. Now those choices, at least for me are becoming a tad cloudy.
For example, a lot of the newer Toyotas are having some serious rust issues. My Wife’s 02′ prius had an alarming amount of rust underneath it when we inherited it a year ago. I spent several days sanding and painting it. The same with a lot of their new tacomas and some of their SUVs. Lastly, I’m a fairly perceptible person. If you flip the hood of an 80’s or 90’s Toyota or Honda, the level of attention to detail even in spots that nobody sees is astonishing. Now when I look I’m seeing some corners being cut- should I dare say 1990’s GM type corner cutting?
So no- I’m not saying that Toyota or Honda builds bad cars. If given the choice I’d still probably put some consideration towards them. But the truth is that today I would actually think about it because I am starting to see some clear improvements with the GM line and honestly, a few desirable products to boot. There would have been no contest a few years ago. The fact that I feel this way to me indicates improvement.
Right on Edvard,
We hear a lot about rust issues from foreign competition. Toyota had a recall for rust on its pick-ups. I’ve heard foreign car owners complaining of rust too.
This is a sign that they are passing off lower quality steel to an unwitting American public. Yet consumer quality raters have failed to inform the public about this. More proof that foreign brands like Toyota are overcharging their customers for a substandard product.
http://www.thetruthaboutcars.com/in-toyota-we-rust/
This rust issue on foreign models is really amazing, since GM and Ford owners have taken rust-free vehicles for granted for decades now.
Residual value of your Toyota is more like Residual Rust. When we wrote the that foreign automakers over charge for their cars, we meant it. The foreign brands are substandard.
Many of these foreign cars don’t get the mpg they are supposed to either. My Firebird V-8 gets much better mileage than what I’m hearing from those who own Nissan G35s.
There is so much unchallenged fakery by the foreign competition and the pro-import media. The Pontiac challenge broadcast was especially amazing with certified drivers. The foreign models test times were signifantly less than what the pro-import media reported. The media failed to report or mention the foreign car rust problem, bloggers are the ones informing the public.
Steve Britton,
The name of the game is “experience, experience, experience.” Too many people have had the experience that GM cars are not as good. You can not win these people over with ads. You must offer them something concrete that fully assures them GM cars offer a decade of trouble-free service.
Oh, sure, sometimes a Toyota or Honda turns out to be less than perfectly satisfactory. GM has a much better shot at winning those dissatisfied owners back. Do you suppose that’s a large number of owners? And GM must battle Hyundai, Ford, etc, for those conquests. Do you think that will be easy?
Charlie H.,
Experience shows that new GM car owners are very satisified owners. GM vehicles, Cadillac, Buick, GMC, and Chevy have the best overall warranty coverage on new vehicles, 100,000 mile powertrain – much better than Toyota or Honda at 60,000 and Acura or Lexus at 70,000.
Experience shows most who complain about a car are talking about some old used car that they bought from someone they didn’t know just to get by, and not about a recent purchase of a new vehicle.
Many, many, many experience serious problems with their foreign brands. Foreign brands experience hundreds of thousands and millions of recalls.
The polls are showing that 72-82% would consider an American brand, while a much lower percentage say the same about a foreign brand. Many may not be informed about American brands enough to know which one they are supposed to choose in their market segment. Brand awareness and model awareness is an important issue. .
Perception and awareness are important marketing issues.
What this may show is that American car buyers and owners may actually expect more from their experience since they believe they are being a Patriotic American. They may as a result get their feelings hurt easier too.
GM makes many vehicles which are best in class and many may still be unware of the choice. Many still have not become aware of the newest GM cars such as the 2009 Malibu and the 2010 LaCrosse. The Acadia and the Enclave are still ‘new’ products that are gaining exposure.
GM products, particularly the Malibu, Camaro, Corvette, Acadia, Denali, the new Buicks, Cadillacs are world class products that are arguably among the best, if the not the best individual vehicles of their type in the world.
Dear Mr. Lutz,
Very simply – are you nuts. The best cars have already won. GM has lost. You really believe that we the consumers are imbeciles? Is there any modicum of intelligence at GM.
The reality is that GM cannot build the best cars. Honda, Toyota and now Hyundai build the best cars. Honda and Toyota – because of their reputation need not offer long warranties since their cars last. Hyundai did not have such a reputation so they offered a long bumper-to-bumper warranty and are no a solid player.
Blaming it on pension and health care costs is disingenuous. the cars a re junk at any cost. That is the problem. Unless you look in the mirror and repeat that to yourself, nothing will change. Not even the government can help you.
It is evident in the kind of people who lead your firm. Finance people, marketeers, salespeople. Not a single engineer has led your firm. Now you have an exec as chairman who leveraged a taxpayer subsidized monopoly (Bell companies) and claims he built a busi ness. Most of us could do it.
Sorry to rain on your glorious parade. But it is raining.
Good luck
Joe,
GM has built and continues to build the best cars inspite of the pension, heath care, etc. That is what you are missing.
GM had more of top 10 driver cars in the latest car magazine issue (R&T/MT) than any other car maker, including the Camaro, the Corvette, the CTS. (The Mustang, the BMW, Mazda, and the Porshe were also listed). GM and Ford regularly win awards for best in class vehicles. Wow, the media even gets it lately. Don’t see any Honda or Toyota products on the top 10 driver car list.
The CTS-V beat the BMW M5. Didn’t see any Honda or Toyota products winning or even competing there either.
Chevy wins most of the races too by the way, not Toyota, not Honda.
The Malibu has better fuel economy at 32 mpg than the Accord or Camry.
The Malibu has a better warranty, 100,000 mile powertrain, than Accord or Camry at 60,000.
The Malibu looks better than Accord or Camry too.
I can see why you are worried. I wouldn’t waste my time in a Honda or Toyota blog. Honda transmissions are too scary. I wouldn’t keep a Honda if you gave me one.
Wake up GM ….just saying it is so … will not make it so.
Customers will decide when GM makes the best cars.
That will be when market share begins to grow.
Hyundai’s / Kia’s market share is growing….GM market share is shrinking……
Quality and Value…. Quality and Value….
Build Quality vehicles at a Value driven price and consumers will notice.
Bob
You desperately need to promote GM’s brands as unique and desirable..
you use the same visual style for GMC, Chev and Buick – this is a terrible strategy
Bob
GM needs to educate the American Public about the costs and future implications of our never ending magnificent trade defecit. Manufacturing is essential for prosperity. Countries that make machines can tell countries that dont what to do. That was the lesson of Mexico and China in the 19th century. If Americans dont want to buy or favor foreign products than they are voting with their dollars to have foreign masters. If our trading partners stop manipulating the dollar for their own benefit the dollar will plunge and so will the American standard orf living. Americans need to understand that eventually all this buying of foreign products will have negative economic consequences. Giving away 50% of our auto market is not cost free. This space is too small to go into depth but I am sure GM has economists who coyuld help you communicate the ultimate consequences of endless trade defecits and de-industrialization to the American people. No other country in the world would have de-constructed its industrial base like the U.S. did.
By the way I am still angry over GMs foolish treatment of Pontiac. I also think that
GM is so rattled by its near death experience that it is now Obamas lap dog. The fact that that publc opinion was against the bailouts show how ignorant the general public is about the need to retain and industrial infrastructure and how the public has no conception of how our gigantic trade defecits are hollowing out our economic muscle. Americans think all these foreign productrs are a free lunch, but they are not. I hope GM, Ford and Chrysler dont end up like Zenith, RCA and Magnavox. I am sick of Americans always being losers in their own market. Always retreating.
In S Korea if you bought a foreign car you were audited by their IRS. Now thats a country that is serious about having a trade surplus.
In S Korea if you bought a foreign car you were audited by their IRS.
There you go Jim. That’ll do the trick. Let’s get Obama to send the IRS after everyone who buys a Mercedes, BMW, Lexus, Toyota, or Honda.
Not only would it deter people from buying foreign cars, think of all the new IRS agents the government would have to hire.
Does Bob have a responce to this?
Bob, you’re working hard, but I think the corporate mentality is sabotaging efforts to improve!
http://www.thetruthaboutcars.com/inside-gm-mystery-of-crap-interiors-solved/
I really hope all the GM execs and the new chairmen get a real look at the product, and not dolled-up versions. Because it’s the real product that will a create customer base, not dolled up versions.
Comparing, it seems pretty hard to deny that GM vehicles have the best in class interiors.
In fact, GM vehicles often have interiors in moderate priced segments that are competitive with a higher priced segments from the foreign brands. The latest GTO and the new Camaro have interiors competitive with the much higher priced foreign luxury models.
SierraGS said,
Did you read my post?
Yea, did you read my respone? If car sales people and dealers knew the car market as well as you imply, they wouldn’t be needing advice on how to improve sales. But obviously they do, since they are missing too many sales.
GM dealers are SOLD-OUT of cars that people want like the Buick LaCrosse, Chevy Equinox. The U.S. is supposed to be in a recession and the new LaCrosse sold-out so fast they still don’t have enough on the lots after three weeks. The Equinox is sold out too as I heard at the country club this morning. Didn’t need a computer print-out to see how fast the 2010 LaCrosse flew off the lots and most people still haven’t seen it and aren’t aware of it.
We read that people buy a great than expected percentage of the high option packages on the Malibu. The buying customers do have the money and they will spend it.
Although unscientific, a random sample of upper branded chain restaurant parking lots in Orlando show more patrons driving Malibus than the Altimas, Accords, Camry. A trend?
The Malibu and the Fusion appear to have a styling edge over the Camry and Accord. So the sales difference at this point appears more likely an awareness issue. Adding a 5 speed manual to the Malibu could improve image.
The Accord isn’t really so stylish. Its selling more than likely because of brand awareness or some who may be insecure about trying a different brand. Whereas, cars like the Lexus IS would more likely be selling on account of individual style, the consumer is compelled to try it as an entry level luxury item on account of the good looks and model appeal.
Agree, some options are more important than others, however, the buying public seems to want all the important options and the WILL PAY for them. At the mid-size level and above, $1,000 in price is not necessarily a factor when the consumer likes the particular style of car. Options like a fold down back seat or overall seat comfort could help to sway the buying decision among undecideds.
We hear aggregate sales estimates for the American car market. However, there is still much room for sales growth and retail turn over that are not a part of these estimates. For example, many Park Avenue, Bonneville, and Aurora owners (including some LaSabre), are looking for a styling sedan and don’t see one from the American car makers that suits them. These buyers are dissappointed by the Lucerne and refuse to buy it. They would rather hold on to their Park Avenue and Aurora until GM delivers on style.
Use the ladies at the Bridge Club example: These buyers would like a car as nice as the one they already own Park Avenues, Auroras, Bonnevilles (or even LaSabres). So far the Lucerne has not really attracted them on style. As members of the Bridge Club meet and socialize, they may notice that one or more partners have a “new car” preferably American because they want to support America, and they want and can easilty afford a new car. One member bought a new Lucerne and likes it. So the hold-outs with the Park Avenues and Auroras finally consider a Lucerne based on word of mouth, but they are still not very pleased about the style and still may delay a purchase. The Buick LaSabre owner is unahappy with the Lucerne trunk size and decides to keep the LaSabre and maybe will consider new Ford Taurus since they would like to buy American. GM has given them no inspiration to trade in their vehicle class.
Imagine the response from auto planners and dealers? They might say these are excuses. Well, they are not excuses, they are real reasons GM is missing sales in affordable luxury.
And what about Luxury? Lincoln offers no small V-8 in its new styles. One has to shop for the good and popular V-8 engines among the slow sellers or older styles at Lincoln. Even seasoned buyers like new attractive styling. So how about the MKS. Ever see how small the trunk opening is. How are parents and grand parents supposed to put a stroller in the little trunk opening? Will the golf clubs fit through the little opening in the Lincoln MKS trunk? And the doors on the Lincoln MKS appear too tall, while the more stylish doors appear on the 2010 Taurus with a bigger trunk opening. But this customer really would like a luxury name plate.
How about a nice DTS? Well its nice, but some of these owners would respond that its too boxy, they want a car with curves like Park Avenue and Aurora. The Aurora owner might like to try an STS, but the Park Avenue owner is still without a choice if they want a stylish curved design. They really don’t want a foreign model so they just wait.
Waiting and waiting when GM could have already sold them two model cycles already by making that beautiful Riviera / Aurora / Park Avenue design.
The response from car execs might sound something like well the customer doesn’t understand our business which requires, “manfacturabiltiy” or we wouldn’t want to “compete with ourselves” or some other such non-sense. And then there’s the board wouldn’t “approve” the good looking design that would have boosted the brand mystique and sold more units. Or “Mr. Wagoner said, “those were what we thought were good products” ho hum, ho hum.
So the former 3.5 V-6 on 2000-2003 Intrigue with high oil consumption and a flat torque curve was supposed to win over the faithful? Wrong answer. We know which engines we want. The Intrigue 3.5 buyers who bought were only swayed by looks, not out of love for the engine, so many just waited and waited or bought another American car if they could find one.
Then comes Merchandising. How can a retailer expect to sell when the lots are empty with no new LaCrosses on the lot.
What’s more, Buick has no V-8 offered in a 2010 model. The V-8 flagship buyers have to shop for their favorite engines like the Northstar V-8 and the 5.3L V-8 among the lack luster slow selling styles that they have asked GM to change . . but they are quiet and comfortable and have a nice ride . . . .
GM execs might say well, our V-6 can make about as much HP as a V-8. So what!!! +/- 2 mpg is not the issue for these luxury buyers, they WANT the world class V-8 engine feel and drive. A V-6 doesn’t get it for them, some of them are bored to tears by a V-6. Just imagine how many MORE Park Avenues Buick would have sold with a 5.3L V-8 option. Count the dollars and cents.
The car sales people have been saying the same thing . . . . V-6, V-6, V-6. Even Ford is trying to say it in their commericals V-6, and we have an SHO. Its still not going to get the turn that the V-8 will draw, no matter what kind of rain dance the car maker does.
Likewise, there are some buyers who are excited about a performance 4 cyclinder image in certain models. These buyers are also not so interested in a V-6. A V-6 is like the monkey in the middle.
How about, let’s take the popular engines and offer them in the beautful designs and also market them. Maybe we can get board approval on that.
First the topic at hand is the Malibu 1LT not any other car, please provide solid evidence (sales) to back up your viewpoint on the Malibu 1LT vs. it’s competition – you are obviously out of touch with this market segment. Not one point is based on actual sales, only projected opinion based upon feedback outside of the core customer base, country club members don’t buy mainstream family cars like the Malibu 1LT.
You sound alot like the management of the American brand I use to sell and proved wrong dozens of times – they never listened and only gave “hollow” reasons for not changing their ways and ran the company into the ground by refusing to change their models to suit actual market demands.
The Camry XLE top trim level is a low volume seller for Toyota and catering only to the “high end” of volume market will utimately result in failure, Toyota did not make the Camry the midsize class best seller with XLE sales, they did it with the LE which is over 50% of sales, as did Honda with the Accord LX. Both the Camry and Accord are high volume (high profit) sellers with high resale values and the Fusion is fast becoming a “must have” car in the segment. Toyota, Nissan, Honda and Ford all found success with their version of the Malibu 1LT, and is why GM must focus on those models and make the Malibu 1LT a better value by exceeding the content of the Camry LE, Accord LX and match the Ford Fusion SE.
The Malibus you see at the chain restaurants are no doubt rentals as they are the about only Malibus that I see in SoCal (and there are very few of them), which is alarming for a mainstream market midsize car in a large market like SoCal. There is one Malibu in our company parking lot after 2 years on the market and it is owned by a woman whose brother got her a “great deal” as a GM employee, by comparision there are 20 comparable year Camrys, over a dozen Accords and Altimas along with at least 10 Fusions and Sonatas. So it continues, the only way GM can sell the Malibu is to give “great deals” on them – not the way to build a car’s value in the market or awareness as the “best car in the segment”.
And that it is the “trend” for the new Malibu, the same one the previous Malibu experienced, it will be a “fleet queen”.
How is a 5-speed going to “improve image” and please justify the cost added to the Malibu with solid sales numbers, manual transmissions are not even that popular on Accords anymore and the 3.5L V6 offered on the 2000-2003 Intrigue was a DOHC V6 “Short Star” version of the Northstar V8, not the OHV 3500 version that helps the Impala outsell the Malibu and is desired by nearly 10 million current GM owners.
Accord, Altima, Camry, Impala and Fusion all outsold your “stylish” Malibu last month despite the Malibu having the highest rebates, “give away” pricing and guarantee of satisfaction or return to GM. The mid-size market is dominated by value first, safety second, reliability third, economy of operation fourth, and style fifth (at best), and that is based on the actual sales figures for the last 15 years and actually selling real cars to real customers for real money, not my opinion based on my friends who are not likely to actually buy the vehicle in question.
The Ford Fusion SE is creating a “sales buzz” for Ford because it is the “best car in the segment” and the fact that there was a 20 day supply of Fusions (15,900) opposed to 52 days of Malibus (34,700) on Sept 1, 2009 and why the Malibu’s poor value has it fifth in sales results behind the Camry 264,357; Accord 221,369; Altima 154,662; Fusion 134,600; Malibu 118,995. If the Malibu is such a great car why is it selling at 45% of the Camry and 54% of the Accord and has been outsold by the Fusion by 15,605 units? Watch the Fusion sales in the coming months and see how it closes the gap between itself and the Camry/Accord, Ford is making the right moves and will benefit with higher sales and better resale values because it offers the compelling combination of value (price-feature content)/safety/reliability/economy of operation that mid-size buyers actually look for.
$1,000 “not important” to the mid-size family car buyer – tell me you are kidding.
You seriously need to talk to some middle income families and see how important $1,000 is to them, that is whether a child attends college this year, and other major life decisions actual families make every day. Spend some time talking to people at grocery/retail stores and parents dropping off or picking children up from school about what they want in a mid-size car, you will find what is really important to them and what will get them to write a check for a down payment on a Malibu. I have talked to these people (in SoCal and one Eastern market), see the increased use of Fog Lights in night drivng in these markets and know what they want in a new Malibu, GM has not listened and does not offer the Malibu they want.
GM has nothing to lose offering Fog Lights, 6-way power seat as standard equipment and offering the 3500 V6 as an option on the Malibu 1LT trim.
It will increase sales without added costs of redesign and the price of the features can be added to the price of the Malibu 1LT and improve it’s competitiveness in the lucrative mid-size market.
Headline reads: “We already have an American SUV, now we want to add an American car:”
Headline reads: “Financing is not a problem. We have a 3 car garage, what do we park next to the Acadia / Escalade.”
People on our block still have a good economy. Do you need some business?
Can you help us GM board? Can we get it approved? or Do we have to wait for the Initial Public Stock Offering and the 2010 elections to have freedom again, so you don’t have to be afraid of the Car Czar?
The overall comfort of the Malibu seat is wonderful. Actually, the 4-way, 6-way option doesn’t really seem noticable. However, basic options like grab handles are more noticable to this vehicle class of consumer and the Accord offers them. A manual 5 speed in the base model might also boost the Malibu with a spoiler option.
The Buick LaCrosse offers the 3.0 as a base engine and probably should offer a 4 cyclinder too.
Then Buick should have a flagship sedan a step-up with a base 3.0 and a small V-8, (4.0 to 5.3). The 3.6 V-6 is not really inspiring. The CTS customer might prefer a 3.0 with a manual option and a 5.3L V-8 option. The ATS could have a cyclinder. Then the STS-V should have offered the 6.0 LS V-8 to go against the M5. This approach would probably yield more sales, a greater fuel economy average, and provided better choices to performance oriented customers.
Mercedes/ BMW buyers would probably much prefer that the STS-V to offer the LS V-8 than a supercharged 4.6.
GM should invest in the Ultra V-8 program with cyclinder deactivation and use it on a 4.0 V-8 for the luxury cars and inspire the luxury buyer. This would be much preferred to any larger V-6.
The mid-size Malibu buyer looks for features like grab handles, comfortable seats, fog lamps, sun roof where applicable, sport wheels, spoiler option.
The LaCrosse is great car. But don’t forget, flagship Buick / Olds / Pontiac buyers too want something classic like a sharp Riviera sedan with a small V-8 option. There are buyers who want a sporty sedan like the G8 in a Buick, or CTS or an ATS. These buyers can afford it and want luxury sport in a higher brand name like Buick and Cadillac, rather than Impala SS.
True story: High schooler text messages dad to look at a nice used car photo on the internet. Dad calls back and says, let’s look at a brand new car for you today.
Do these buyers have to look at Mercedes C class, Volkwagen Jetta, BMW 3 series, and Lexus IS?
Maybe Cadillac and Buick can ante up, a CTS, a LaCrosse sport edition?
Does the 40 y/o wife with a big check book have to keep holding on to her Park Avenue / Aurora / Bonneville or is GM going to ante up with a Riviera sedan and a Cadillac update?
It’s been over two weeks now since the 60-day return policy started. Can you give us an update on how it’s progressing?
How many have signed up? Has anybody yet returned a car saying it wasn’t for them?
From Henry Campbell Black, author of Black’s Law Dictionary and renowned authority on the U.S. Consitution:
Handbook of American Constitutional Law – 1895 West Publishing
Congress has NO authority to pass sumptuary laws which purport to tell Americans what they can and cannot buy, whether for vehicles or for health insurance.
Sumptuary Laws (laws made to restrain luxury or extavagance, laws that purport to tell Americans what they can and cannot buy) are unconsitutional.
Page 568 Chapter 18 section 215:
“Sumptuary laws are not only utterly foreign to the spirit of our institutions, but are inconsistent with the guarantees of personal liberty and the right of property . . . . .”
Further, in the summer of 1787 the Consitutional Convention clearly voted to deny Congress the power to pass sumptuary laws. George Mason’s sumptuary proposal was soundly defeated.
Congress has NO authority to tell Americans what kind of cars they can buy or the right to mandate that Americans buy health insurance.
nobody will return their GM vehicle under this program. Their vehicles are that perfect and so flawless that people who try them are immediately sold on GM vehicles forever. Everyone would rather drive a GM vheicle than some import piece of crap that suffers the same massive engine failure, transmission failure or electronics nightmare before giving up the ghost and being retired to the scrapyard once the warranty expires.
Keep wearing your “30″ buttons people, because by the start of 2010, GM will regain the 30 percent share they’ve been deserving of all along. Soon it will be “40″, “50″ and even 60 percent as more and more people get behind the wheel of the greatest vehilces in the world built by the most respected, most valued automaker in the world.
General Motors is the Standard for quality, reliability and dependibility, something no other automaker can make claims to. Most of them will be out of business before long, all victims of the American Revolution.
Be American. Buy American. Buy GM. It is your patriotic obligation
Buy anything but GM or Chrysler. Buying from a company where an union and govt confiscated the property of private owners is not American or patriotic. Buying American made products from an American company not owned by the govt or owned/controlled by an union as I would like to do is for some reason not allowed in America.
American manufacturing companies have been victimized by U.S. recessions caused by Wall Street and Congress. Its about time Congress paid for the damage it has done to the American economy.
We’re glad the gov’t paid GM and the workers. The Gov’t iscompensating American companies for damage the government caused.
When somebody does damage to your property with a recession and a 10 year war, they should compensate you for it.
The American auto industry was doing great in the 1990s and so was the stock market.
The taxpayers elected poor management, so they its alright if have to pay for their mistakes.
WOW what comments……….
Gee I wonder why Ford did not file for bankruptcy? Could it of been good management and better products?
Blaming others for GM’s failure is pretty sad. If you had built the best quality vehicles that the public wanted you would not have been in bankruptcy.
I wonder why Hundai / Kia are gaining market share and GM is loosing it?
It all goes back to Quality and Value…….
Quit making excuses and start building the best…… if you build the best you will not need any excuses.
Bubba,
Did you just pop forward to the present on a time machine from 1953?
I see why you are worried. America was prosperous in the 1950s under Eisenhower with no wars, low taxes, and plenty of jobs for Americans.
Our generation would like to try that out too.
We may have to FIRE the government a couple more times to get there though.
GM does not need a marketing campaign to tell consumers it has great cars.
GM needs to make great cars and the public will find them.
Toyota and Lexus have taken market share by building the best quality and value.
GM needs to do the same. When GM builds the best it’s reputation and market share will grow.
Dear Mr. Lutz,
I was just reading, that Mr. Penske reportedly cancelled his plans to taking over Saturn. What about this proposal? Why not replacing Saturn by Opel on the North American market, instead of just winding down Saturn? To my understanding the main problem of Opel is its costly over-capacities, which IMHO could significantly shrink, if Opel would be well introduced / marketed to America. With its current line-up (saw the new Astra at the IAA) this brand easily should achieve similar or better sales figures than Volkswagen, resulting in clearly fewer layoffs than intended by Magna. So I’d see a chance for support from the new German government, even if Opel would be supposed to remain within GM to 100%. Even newspapers like the Financial Times Deutschland question in the meanwhile, whether it may be avoidable on the long run, that GM- or Opel-Technology could be passed uncontrollable to Russian manufacturers. After that, what I heard and read over here in recent times, I urgently would recommend not to sell Opel to Magna. Thanks for your attention.
Thursday October 1rst
Good afternoon everyone;
I read in this morning’s paper with interest, that Roger Penske, walks from Saturn. This is not at all surprising, considering the unimaginable capital and partnership required to run an organization, the likes of Saturn. This deal seemed doomed from the outset.
Perhaps General Motors will now examine it’s options to perhaps maintain Saturn in another–GM– form. Saturn still has many attractive assets, including a loyal customer base, a relatively new dealer network, and cars that are seen as fuel efficient and competitively priced.(all designed in the fabled Europe)
This seemingly sad chapter for Saturn, need not be the end of the line, but rather an opportunity(read; pilot project), to get the General Motors logo onto an entire line of vehicle. And what better vehicle, with an already square logo(read; design work complete). The *Blue Square* would fit neatly on this grill and trunk lid.
As a loyal Honda customer,—my extended family(four units) has owned or leased nineteen Hondas, five Toyotas, and six Acuras since 1985, that’s a lot of loyal $–the only way I can see participating in the GM experiment, is by perhaps being offered a vehicle not laden with so much baggage. In an earlier post, I tried to convey my reaction to seeing the new Traverse in my local paper, and not seeing past the logo. That’s pretty disheartening to the many GM employees who worked long hours to get the Traverse launched.
I’m also reading of consumer confidence being a little more sluggish than previously
thought, so it’s not as if GM’s mini resurgence will continue indefinitely, and it’s about having a strong company that attracts back an old customer from years gone by. In my case, to even consider visiting a GM showroom comes down to one obstacle,a simple logo. That may seem shallow to many,but that’s the reality of brand. Given that, buying Honda was based on track record and reliability. General Motors needs something dramatic to overcome the reluctance of the very car buyer it wants to attract.
On Buick competing with Lexus, at this late stage?, it will not work. While GM brought mediocre Buick product and design to the market since 1990, Lexus worked a continuum of excellence and developed a track record. Lexus does not have substandard product sitting in driveways as reminders to the past. That illustrates the main point of all of these older vehicles, speaking on behalf of their respective brands at GM. *Cash for Clunkers* will get some of it off the street, but not in time for GM to wipe clean it’s past mistakes. It’s a leap of faith on GM’s part to say that now Buick will take on Lexus in this category. Acura is barely able to make this claim and who could dispute Acura’s track record. It’s unlikely that Lexus buyers will see the comparison. Sorry.
General Motors sends a lot of mixed messages, with numerous spokespeople showing
the internal excitement important to the new GM. In one post, Chris Preuss suggests that GM has pretty much lost a generation of customers, and would focus on young people for the emerging market. That’s an odd thing to say from the head of communications and further suggests a generation of drivers have been written off.
That might be considered pessimistic and not supportive to the new GM reality, but hard to avoid when a driver has at least twenty years of cars left to purchase or lease.
GM Admen–and women– are busy working within the confines of what GM has set out, which is really just tweaking a formula that is multi decades old. I’m convinced GM has a big marketing problem, that dwarfs that of other carmakers. General Motors also grapples with an identity problem, also one not faced by other carmakers.
Something big, has to take place in order to break this impasse to the future.
Many good things are obviously happening,R&D, new model rollouts..etc., and especially the *conversation* aspect, but preaching only to the converted will alienate the market $, needed to post healthy financial results for the future of General Motors.
Again, I’d consider participating in this reinvention, as buying local touches every other aspect my life, but so far I remain skeptical.
Thanks
Chas
Chas,
Since Lexus has about 3 tenths of 1 percent of the market share in Europe, you may consider it a failure on the world stage in spite of its high profile efforts and liberal media establishment sympathy. The Prius is also fading despite its free-ride from the elitist media.
GM has built and continues to build the best in spite of the global economic problems. GM has the best warranty and the best quality. This continuum is not new either. In 2003, Cadillac demonstrated superiority over Lexus in two of three quality surveys (from J.D. Power, AutoPacific, and Strategic Vision):
http://www.usatoday.com/money/2003-06-04-autoquality.htm
Buick has always been a leader in quality. Buick is just getting started in the new century of luxury styling.
Your post shows you are trying to learn more about GM though. That’s good. I don’t waste my time in Honda blogs. Fortunately, the polls show a much smaller percent of the population would consider a foreign brand going forward.
It seems many would like to blame their mistake of buying a foreign brand on the American car makers. The foreign car guilt is understandable, since its the elitist media which opiates people to these mistakes. Since American car makers make the best vehicles in the world, like the Ford Taurus, the Lincoln, the Malibu, LaCrosse, CTS, and more, there is no need to cling to the insecurity of of a foreign brand.
The Malibu has better fuel economy at 32 mpg and a betteer warranty at 100,000 miles powertrain than the Accord or Camry.
The 2010 LaCrosse is a new direction for Buick in styling which is proving to be a great success. Its a winner that is turning the tide for GM.
I was just reading the auto section of the Sunday paper and came across the review of the Camaro.
While the Camaro has been highly touted and has some nice features is it the best in class?
Does it compare to favorably to the best or is it an also ran. GM needs to begin to increase market share. It can not do that by building vehicles that compete but still fall short.
The auto review said “While the Camaro offers a comfortable ride and decent handling, other modern sports coupes, like the Nissan 370Z, have raised the handling bar higher than the Camaro can clear.”
All new vehicles from GM need to compete on design, interior, safety, fuel economy, handling, value and performance if you want to stop the market share slide. Good enough is not good enough.
You need to build the best.
Lead, follow or get out of the way.
GM almost got out of the way by going bankrupt.
Lead by producing the best in class vehicles and gaining market share instead of loosing it each year. Compare your vehicle to the top 3 best in class. If you can’t compete go back and fix it.
If the Camaro does not pick up market share from it top 5 competitors in class then ask why and fix it.
Except that almost no one buys the Nissan 370Z !!!!!!!!!!!!!!!!!!!!
The Camaro is the market leader. Everyone is talking about the Camaro, and no one except the media are talking about the 370Z.
Ever wonder what the auto media writers do in their spare time?
Japan’s automakers know a threat when they see one, and based on their words, it sure isn’t in Michigan. Motown is fleeting image in the Japanese carmakers’ rearview mirrors, which they’re now nervously checking for a budding South Korean juggernaut. Honda CEO Takanobu Ito minced no words when he told the Associated Press, “Hyundai is awesome. They are undoubtedly a threat because their products are cheap, and the quality is improving.” The numbers seem to bear that out, as Hyundai and its corporate sibling, Kia, continue to show substantial sales chart improvements in key markets like the Europe and the US, where it continues to show strong growth while many other automakers look at double-digit shortfalls year-over-year. Nissan’s Shiro Nakamura echoes Honda’s Ito when it comes to identifying Japan’s new boogeyman, “Hyundai is the biggest threat for the Japanese automakers. They have the technology, but they seem to have cheaper labour.”
Hyundai, once basically a joke (we all remember such legendary products as the Excel, pictured above), is catching the Japanese by beating them at their own game — offering a mix of value and quality that’s hard for shoppers to ignore. Japan knows it needs to defend itself, too. After all, once upon a time, they were what Hyundai is now. In the grand scheme of things, it wasn’t too long ago that one could chuckle at Honda’s initial foray into the States. We know how that turned out. Now you have to wonder how long it’ll be until we see quotes from Hyundai’s leadership talking about the Chinese the way Nissan and Japan talk about Hyundai.
Source The Canadian Press
http://www.google.com/hostednews/canadianpress/article/ALeqM5i58mj-Aug_CvYXhA7ibvx5a8gYvQ
Bob Lutz — your heart is in the right place but you are a day late and a dollar short.
The superior products at GM and Ford really have the foreign compeititon worried. They know they may not beable to retain their guilt ridden customer base with better choices out their like the LaCrosse, the Malibu, and the Taurus.
Hyundai is a get-by day to day car, with the Accord and Camry not far behind.
Yet, the Malibu, LaCrosse, and Taurus are serious luxury entrants into the car market. What scares the elite media and the foreign competitiors is that the American public will discover the American branded models.
edwin: “guilt-ridden customer base.”
You’re pretty darned funny, there, edwin. When you decide to abandon humor and go for accuracy, you could try, “satisfied customer base,” instead. I feel no guilt and, partly on the strength of savings in vehicle expense, I just bought a small boat for the first time in my life. Do you think I’m going to buy a car that might cost me more in the long run? Think again.
It’s true that the LaCrosse and the Equinox seem to be effective competitors but, the long-term value and customer satisfaction problems that plague GM aren’t going to be addressed just by new and attractive models. In fact, there’s nothing in recent announcements that suggest GM is really on a campaign to win customers back from Toyota or Honda. They appear to be pitching to the base and the effort is to stem market share erosion, not win customers back.
Nor must GM worry only about Toyota and Honda; Hyundai’s emerging reputation for value (people I never would have dreamed would buy a Korean car have bought one or more Hyundais) is sure to sharpen the competition in a range of markets.
The clear product advantages that GM currently has in, to use two examples, the LaCrosse and Equinox, are of limited value in reclaiming customers from Toyota and Honda.
While the LaCrosse seems to be a winner on content-for-price, new vehicles for the Koreans are competing keenly here. A customer who is willing to abandon Lexus (which has nameplate advantage, now) to go with a “value-luxury” vehicle, can just as easily switch to a Korean nameplate). I don’t think Buick is yet worth the Lexus nameplate, so the status-oriented buyer won’t switch.
While the Equinox does win in EPA fuel economy comparisons (and let’s assume it wasn’t designed specifically to test well), it isn’t competing in a market where fuel economy is a principal consideration… people who are very concerned about fuel economy buy a smaller vehicle. They’re buying Corolla-sized vehicles, smaller vehicles or a Prius. And before you go on about the Cobalt XFE winning in fuel economy, real-world results put the Corolla within a hair’s breadth of the Cobalt XFE. Moreover, the XFE is stick-only and the Corolla automatic gets far better real-world fuel economy than the Cobalt auto (source: fueleconomy.gov – ‘09 models examined).
Memo to GM: The XFE program had to be fairly exonomical; why can’t you apply the lessons learned across the board? In your advertising you claim the fuel economy high ground, it seems to me, on the strength of very narrow wins. This erodes your credibility. Let’s see imrpovements on a broad front and get a lineup that handily defeats the competition.
For too long GM has ignored criticism and continued to loose market share each year.
You need to learn from the criticism and not be defensive.
When GM’s market share is growing again then you will be able to say you got it right.
Until then go back to the drawing board and continue to fix whatever complaints come your way.
Ignoring or brushing off complaints is what drove GM down the slow road to bankruptcy.
Do not make excuses.
There is a reason why Hyundai’s market share is increasing and GM’s is decreasing.
There is a reason why Toyota and Lexus have their reputation for quality and GM does not.
The first step to recovery is to admit you have a problem.
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.
Fuel Economy Leaders: 2010 Model Year
Where are the GM vehicles?
Where are the GM vehicles??
Where are the GM vehicles???
2010 Fuel Economy
Information Now Available
Fuel Economy Leaders
Lowest Models Overall
Highest Models within Class
Lowest Models within Class
Rank Manufacturer/Model MPG
city/highway
1 Toyota Prius (hybrid) 51/48
2 Ford Fusion Hybrid FWD
Mercury Milan Hybrid FWD 41/36
3 Honda Civic Hybrid 40/45
4 Honda Insight (hybrid) 40/43
5 Lexus HS250h (hybrid) 35/34
6 Nissan Altima Hybrid 35/33
7 Ford Escape Hybrid FWD
Mazda Tribute Hybrid 2WD
Mercury Mariner Hybrid FWD 34/31
8 Smart fortwo Cabriolet (automatic)
Smart fortwo Coupe (automatic) 33/41
9 Toyota Camry Hybrid 33/34
10 Lexus RX450h (hybrid, 2WD) 32/28
I was out car shiopping today and decided go to my local Chevrolet dealership Bergey’s in Colmar, PA. I arrived in the showroom at 1:30 in the afternoon, no salesperson offered a welcome or to help me. I went about my business take a a look at the new Camaro in the showroom, the only one at the dealership. I interrupted a salesperson to ask for a Camaro brochure; was informed they didnt have any and walked away. I chased this salesperson down to ask him to take the Camaro for a test drive. The response I got was no one starts the engine or test drives the camaro until it is purchased by you. I was shocked, a new car model and not able to test drive it. I am a 43 old professional who pursued the reasoning of such a comment. The Sales person, could have been a Sales Manager( don’t know his namebecause he never introduced himself)< he proceeded to tell me how GM was doing things great by controlling demand which allowed more internet sales and the ability to charge customers the sticker price and people are buying the cars without driving it. I left in disgusted, this is how our tax dollars are being spent, rip off the tax payers and gin up the sale price of GM cars. Most disappointing. This ocurred today October 22,2009.
GM needs a “secret Shopper ” program where a factory rep goes in to a dealer each year to “buy” a vehicle. GM needs to see if the customer is treated fairly and rate the dealer. A poor dealer experience reflects on GM. No upsales, no bait and switch, no cheating on trade in value, no charging a higher interest rate than the customer qualifies for, no selling unneeded items, no no no no.
Quality and Values sell.
Walmart has been growing for 20 years. GM’s market share has been declining for 20 years.
No one ever feels cheated when they leave Walmart. Quality and Value sell.
Quality and Value is what GM needs to sell.
“may the best car win” or perhaps in the Traverse case, may the worst car lose. Imagine my surprise when I checked out the Traverse on JDPower.com where it’s rated 2.5 (below average) in initial quality. Thought GM was finally getting it right. I used to be a true blue Chevy guy. This is the last straw. You can fool some of the people…. Sincerely disappointed.
GM -are you listening? —– your customer is trying to tell you something
Quality and Value sell — sounds like a customer that bought a vehicle with a poor quality rating feels cheated……..
When you shop at Walmart you never leave feeling cheated…….
Maybe GM can learn something from Walmarts marketing plan…..
GM needs to offer a quality product at a value driven price.
this has been a debate that has been brewing for years. how about an injection of simple truths.first,lets clear the air,anything made by man is subject to fail. doesnt matter who what where or how its made. that being said,here’s some disappointing news.statistically speaking,most import brands are superior to their american counterparts. there,i said it. i have grown up in what i call the transistional years(1969-1990).i have been able to experience first hand an assortment of cars both foreign and domestic.our u.s. industry has done great things,but instead of correcting things gone wrong,we have fallen back on lackluster warranties and generally unconcerned gm folk. we have an occidental culture,while our japenese counterparts,blessed with an oriental culture,strives to fix, improve and put back resources to improve rather than take them out for bouts of excessive spending, and any mention of the union leaches would be another subject altogether. the current crop of cars from gm is adequate,but not golden.finally, a review of consumer reports should shed some light on our current quality standings vs everyone else.p.s-enough with the silly howie/chevrolet commericals.maybe you can try them in a few years when there is greater parity between gm and the competition,and perhaps after you lose the title of ‘government motors’
May the Best Car Win
The 2010 Ford Fusion was named Motor Trend magazine’s car of the year.
It beat out the Toyota Prius, BMW 7-Series, Chevrolet Camaro and others.
I took this challenge to compare a Traverse to its competition. Are you kidding me? This thing is supposed to lead the way to GM’s future? The quality of plastics inside of it wouldn’t pass muster in a 10 year old Hyundai. It drove like a 9000 lb lead weight. WORSE, it was priced in the mid 30’s with almost no options. While GM loves to preach change, I see anything but.
This will probably go down as one of the worst marketing campaigns ever. Because anyone who actually does the comparisons (i.e. isn’t in a GM showroom buying because they get an employee discount) will find a lot to like in the competitor cars.
GM — before asking your customers to compare vehicles — you need to compare them yourself and make sure that they stand out in a positive way. Interior quality has been a customer complaint for years.
Listen to your customers — take their comments seriously and try to fix the problems.
Below average quality ratings hurt market share……. a few vehicles with good quality ratings will not make up for the bad word of mouth from the poor quality vehicles.