We’re Not Declaring Victory … But We’re Here to Report Progress
By Susan Docherty
Vice President, US Sales
Today, we reported October sales for the new GM of 177,603 units, up four percent from last October – our first US sales gain in 21 months. Retail sales were up 15 percent for the same period. So, while no one is declaring victory … we are seeing signs of progress.
Our estimated share of the US market for October was 21 percent. That was better than September and significantly better than last October.
With 95 percent of our retail sales for the month attributed to Chevrolet, Buick, GMC and Cadillac, our sales mix is healthier than it was with eight brands. Importantly, our six newest products (Equinox, Camaro, Traverse, LaCrosse, Terrain, and SRX) are off to a great start, showing improvement in traffic and sales compared to the models they replaced. Camaro has outsold the Ford Mustang five months in a row; Equinox and Terrain are gaining share in the crossover segment; LaCrosse is bringing younger buyers to Buick; and SRX had the best month in its history.
We know we have a lot of work to do to earn consumer trust, change perceptions about our company and products, and strengthen relationships. And, while we’re encouraged by consumer acceptance of our new vehicles and our October results, no one is celebrating. We will continue to work hard every day to make our customers our top priority – and that means offering cars and trucks they “gotta have,” and giving them the service they deserve.
Stay tuned, and let us know what you think of our new products.
(Click here for a video in which Susan Docherty explains the sales numbers in more detail.)
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We will continue to work hard every day to make our customers our top priority – and that means offering cars and trucks they “gotta have,” and giving them the service they deserve.
The key part of that statement is “…giving them the service they deserve.”
Over the last three decades, your dealer network and their service departments have contributed as much (perhaps more) to GM’s black eye as the sometime shoddy and ill-conceived products.
Before you convince me to buy a GM product, you need to convince me that you are taking proactive steps to make your dealer networks and service departments toe the line and actually treat customers with respect. Above all else — customers first, and value for dollar. Give the customers more than they have come to expect from GM, and they will come back, even if you don’t yet have a “gotta have” product.
With respect to Camaro outselling mustang over the last five months: Don’t you think that is largely because the new Mustang beat the Camaro to the market, and you are still benefiting from the pent up demand of the “Chevy people” who had to cool their heels waiting while the “Ford people” were already out cruising in their new Mustangs?
AMEN Brother….
I LOVE MY NEW 2010 CADDY SRX!!!!!
Good news!
That means you’ll work hard to offer me a new RWD Buick because that’s what I “gotta have”!
Right?
“We will continue to work hard every day to make our customers our top priority – and that means offering cars and trucks they “gotta have””
Good news!
That means you’ll work hard to offer me a new RWD Buick because that’s what I “gotta have”!
Right?
Congrats, and keep your eye on the ball!
Very Good news. “May the best car win” campaign working. Dearly hope this very trend in sales will continue and GM will be able put back the ‘Mark Of Excellence’ badges on its great products, leaving no doubts in the minds of consumers. Fascinating job done by all of you in the new management. Congratulations…
For the first time in many months, you didn’t report how many hybrids you sold in the sales report text.
How many did you sell? If it’s not inconvenient, it would be nice to have the breakdown between the pickups, SUVs and BAS vehicles.
Progress of a sort, but I can’t but help but note that Ford actually made a profit for the last quarter — GM didn’t.
As far as I know, you’re still in hock to the US Government for billions, and that makes me part owner of the company. When you start paying back the money you owe the government, then we can start crowing about progress.
well im glad everything is looking up……..im on my 3rd sierra with the latest being a 2500 diesel and let me tell you that im GM all the way……..God i love GM.
keep up the good work at recovery
Encouraging news, but the last 9 out of 10 GM TV commercials I’ve seen have still been advertising big macho gas-guzzling trucks with large amounts of horsepower. It seems to me that people who genuinely “need” a big gas-guzzling truck wouldn’t need advertisements to be encouraged to buy them.
Unless GM can figure out how to make money building and selling more efficient vehicles, the present success will be short-lived, and the next gas price spike will cause sales to crater again.
what TV shows are you watching?
Current Gm is running tons of ads touting the fuel efficiency of the Malibu and Equinox. They are also running ads for the Lacrosse, Terrain and SRX. None are gas guzzling trucks. The Chevy ads are so ubiquitous that I don’t know how ANYONE could have missed them over the last month or so. They are everywhere and none of the Howie Long ads talk about the Silverado.
Another fabricated compliant from a well known GM critic.
Keep it rolling. Good to hear!
How about re-inventing the small/mid-size truck. The Colorado/Canyon are about the right size but get terrrible gas mileage. How about dropping the 4cylinder that is in the Equinox in it and making the 4-door with a 5.5 foot bed. Maybe even a small 6 cylinder that gets good gas mileage. Most of us only need to haul a boat or small trailer not weighing anymore the 3-4,000lbs. It can sacifice milage when towing as most of the time we drive them empty. My old Jeep Comanche 4X4 with 190hp got 24mph an it pulled my bass boat just fine getting around 18mpg. My 2001 Tacoma 4-door 4X4 with 210hp engine gets 21 mpg and it to pulls my boat and hunting trailer just fine. I would thiink with the new technology that 26-28mpg in a 4X4 would be feasible, it is not all about horsepower.
The Colorado/Canyon are about the right size but get terrrible gas mileage.
How about a Colorado/Canyon with a 4-cylinder turbo-diesel as an option? I have a GMC Sonoma and a Jetta TDI. Every time I fire up the Sonoma, I wish it had an engine like the Jetta’s.
Now that your keeping Opel, why not use one of their great 4-cylinder diesel engines in the Colorado/Canyon?
Rory makes a good point. Is there any chance of getting a pickup truck like the Colorado or Canyon with a 4-cylinder turbo-diesel? It seems a no-brainer to me.
“Before you convince me to buy a GM product, you need to convince me that you are taking proactive steps to make your dealer networks and service departments toe the line and actually treat customers with respect.”
In most cases it is not a lack of respect from the dealer, 1. They are restricted from what the customer wants done because of factory policy or 2. What the customer expects can be totally unreasonable.
Yes I do work for a dealer and from personal experiance some of the best, most hard working people I know are working in dealerships. Granted there are some bad apples in the bunch but lets be realistic, it does not matter what business you are in there will be bad apples.
Jim,
But GM would likely say, “We have no control over our dealers because of state franchise laws.”
Which is it? 1. Factory policy restricts dealers, or 2. GM has no control because of franchise laws?
And in either case, what can be done about dealers who continually take advantage of consumers and provide poor service?
Good job! Now please end the practice of over pricing your cars and then giving incentives. A great car with a fair price will sell. $30,000 Chevrolet sedans are too much.
Well said John. As I have posted many times before, a family sedan should not cost the average American hal their gross annual income to have a nice car. The only way to do this is to eliminate the UAW. Paying for union wages and union pensions have been on of the many factors that le GM to where it is now. Eliminating the Union, hiring people who want to work for a decent wage and benefit package (not the over inflated one the UAW has now) will allow GM to still make a profit, yet lower the price of their cars so the average Joe out there can afford it.
GM cars are better than the foreign competition. . . .
The Malibu is a better car than the Camry, Accord, and Altima. And the Malibu is better looking, better warranty, better all around. The Malibu is priced right.
The LaCrosse is better all around than the Lexus ES . . . The LaCrosse is priced right. The CTS likewise.
Stop complaining, buy one and you’ll see.
What the liberal media doesn’t like to tell you about Honda and Toyota:
Honda/Acura owners continue to sign this petition against their transmission troubles (read complaints by clicking on signatures (owners give their names and vin numbers):
http://www.petitiononline.com/mod_perl/signed.cgi?acura
Toyota recent steering defect lawsuits consolidated (the wheels fall off while you are driving):
http://www.aboutlawsuits.com/toyota-steering-defect-lawsuits-in-california-5932/
3.8 million toyotas recalled recently for unintended acceleration while you drive:
Toyota owners file class action lawsuit over unintended acceleration:
http://www.leftlanenews.com/toyota-owners-file-class-action-suit-over-uninteded-acceleration.html
Toyota defective gas pedal recall on millions of cars:
http://news.yahoo.com/s/ap/us_toyota_floor_mats
Toyota Prius steering recall can cause you to loose steering control:
http://www.consumeraffairs.com/recalls04/2006/prius.html
Toyota SUV steering recall (2004-2007) can cause you to loose steering control:
http://www.pritzkerlaw.com/toyota-sequoia-tundra-recall/
Toyota sued for faulty steering rods:
“Allegations of faulty steering relay rods — an embarrassment to Toyota in Japan three years ago — have come back to haunt the company in the United States.”
http://www.britannica.com/bps/additionalcontent/18/43886728/Toyota-is-sued-over-faulty-steering-rods
Congrats on the great news! My wife and I are (Impatiently) waiting for our leases to run out so we can put two new GM products in our garage! My 2007 Sierra and her 2007 Rendezvous are great vehicles – but not nearly as exciting as the new GM vehicles I see cruising around everyday!
GM FOREVER!!!
Too bad you aren’t showing the same effort with the Cruze. It’s amazing that you are going to put the same 1.8L wheezing engine that was panned in the Astra and the current version of the Cruze selling now overseas. The engine stinks. Period.
Not everyone is going to want the 1.4 turbo (not even DI!?). Pathetic.
Look at KIa. The Forte will have 2 powerful engines. If you want the turbo to be your high MPG model, fine. But you should have a Sport version with a stronger engine. You are going backwards from the Cobalt with this car.
And the name? Moronic.
Great News S.D!
Looks like we’re getting a little traction under foot. Now its a matter of gaining momentum and keeping moving forward. One item of concern is that all these vehicles listed are not considered Economy models. The battle is across a broad playing field. Are we gaining ground in the sub-premium and SUV vehicle sales ranks too?
P.S. My son is on leave from the service and is leasing a Cobalt while in town. He likes it. Good fuel economy and he can plug is iPod in and enjoy his mix of tunes. He misses “our” Grand Am a lot. (ours implies – My payments, gas and insurance and his butt in the seat – not exactly 50-50).
Susan – please comment if you can.
The US has discovered vast Natural Gas (shale) Reserves under much of Pennsylvania, New York and ironically Michigan – enough to last 90 years or more. These reserves will be easily tapped and then the gas pumped through the existing NG pipelines throughout the North America. The US Energy Policy sadly lacks any direction in leveraging our own fuel sources and continues to pour billions of dollars in tax subsidies to oil companies which need no financial support, while our company continually gets raked over the coals.
I realize we have invested much into Ethanol based systems, and they look to be economically viable in the near term. GM has their Opel Zafira Compressed Natural Gas (CNG) vehicle in Europe. Why is it not available here? Honda has a CNG vehicle here already – why not import the Opel product or retrofit an existing GM vehicle?
The CNG vehicles emit less CO2, have better distance ratings than the Volt and a home based CNG charging solution can be developed (if not already in existance). Yes – I know that all the NG can be used to power up commercial power generating plants, which in turn will power up Volts – but the Opel is a product we can sell to the masses and not impact the Volt product line.
I’ll keep my “conspiracy theory” comments to myself, but it seems we’re shooting ourselves in the wallet AND foot if we don’t take advantage of our own engineering abilities and localized (ie US) resources – even if it smacks of “not invented here”.
And for the record, I am not a fan of Mr. Pickens – just a concerned American taxpayer and GM employee.
Mike O.,
Were you watching the elections this week.
Did you see Gov. elect Christi’s victory speech?
The politicans who want to regulate CO2 have a limited time in office.
Did you see the subscription rate for far left media taking a dive?
A friend of mine also won his election yesterday.
Write this date down on your desk top: 10/30/09 and watch this Glenn Beck program where global warming theory of CO2 was buried once and for all:
http://www.youtube.com/watch?v=n961a8lSs6Y&feature=player_embedded
A new MIT study has proven CO2 does not harm the earth or cause climate change.
Over 31,000 scientists have signed a petition rejecting global warming theory:
http://www.petitionproject.org/
Gov. Corzine can’t terroize the auto industy any more, he’s out.
The American people like CO2.
CO2 is good for America and for the world.
Americans aren’t going to be bullied.
with a compressor natural gas powered car can be filled at home and the govts both state and federal will get no road taxes and that is why natural gas power cars are not here yet. i have natural gas wells which i am allowed 300,000 cu ft free every year and that would power any natural gas engined car a long way and there would be no taxes paid. once this system where they tax you for the miles driven get going you may see natural gas powered car. i think honda took all those cars back and i wonder if the non payment of road taxes caused this.
see my reply below as i replied to the wrong post,sorry
This is going to make many naysayers quite upset.
Not after they look at incentive levels.
Charlie:
Until you clear out 2009s you will see high incentives. HAve you seen Hyundai’s incentives lately? There is a reason why they are racking up huge increases every month. Nissan isn’t much better.
Sheth,
Nissan is at $2500 or so, up significantly from last year. Hyundai is at $1751, something like $700 LESS than a year ago.
GM, like Nissan, is going in the wrong direction… GM is up $500 over last year.
I don’t see why you’d take the time to argue with me, as I think you’ll find Susan Docherty is on record as saying that GM’s incentives need to be reigned in.
Also, I note that clearing out 2009’s isn’t the only problem… the local Chevy dealer still has a dozen or so 2008s to deal with, mostly Impalas. That’s going to be a challenge as plenty of clean used 2008 Impalas are available at a dramatic discount over new. Come to think of it, I’ll bet Susan Docherty is also concerned about fleet sales.
Don’t believe the reports on incentive levels regarding the foreign competition.
They are probably fake.
Honda dealers run cheap price ads for Accords and Civics all time.
“Accords for the price of Civics” on radio blah, blah . . .they have to give them away.
Are they really reporting their incentive levels truthfully???
highly doubtful.
You don’t make a FWD 2-door coupe, cobalt is almost dead and the cruze does not have any plans for a coupe. I see 5 coupe cobalts for every four door. I understand you sell a lot of rental four doors but come on GM. Pontiac is gone, make some sporty, cool, young, types of cars. The Camaro doesn’t count, you don’t see high schoolers driving Maros, they drive Scions/Civics and you will now have nothing that competes.
Not to mention the Kia Forte Koup.
GM really let the ball drop with this Cruze thing. They just can’t put all out effort into any Compact car they produce. Really sad.
Glad to see General Motors is back in the swing of things, it won’t be long before Japan and the rest of the imports will out of business as more vicrtims of the American Revolution!!!! Always a GM owner, I’ve never owned or driven anything else in my lifetime and the reason being is that GM vehicles will always be the best.
The Industry standard is General Motors. Long live the General.
Be American. Buy American. Buy GM.. it is your patriotic obligation
Dear Mrs. Docherty,
I also regard it as a progress, that GM’s Board decided not to sell Opel/Vauxhall to Magna/Sberbank. This will ensure, that no GM/Opel-Technology will leak to Russia in order to just restore the car-industry there. Everybody keep in mind: That’s Vladimir Putin’s only target. Not a strong Opel. If anybody doesn’t believe it: browse the news, about what’s going on for Renault with its AvtoVaz joint-venture…
Just to remember: As condition for the acknowledgment of the legality of the German Government-funding for a restructuring under Magna, the European Commission reportedly was asking GM to declare officially (in a letter), that the loans would have NOT be granted to Magna ONLY, but also to other bidders. Nobody could seriously expect from GM to submit a declaration, which, to my understanding, clearly would have been a lie. As I heard, this even might have exposed GM to the risk of billion-dollar lawsuits from other investors, such as Fiat or RHJ. That’s something, which German journalists already forgot now, after a couple of days, when expressing their outrage about GM’s decision today. I understand the frustration of Opel-Workers about the long-winded process and the changing news in recent months, but they also should not forget to ask themselves for the responsibility of German politicians on this matter… They just have been worrying about just one single Cent of funding, which possibly could go to the USA. But they didn’t worry about the leakage of money and technology to a country, which shares far less values with Germany than the United States. To me, as a German, that’s embarrassing somehow and hard to comprehend.
Thanks for listening.
We will continue to work hard every day to make our customers our top priority – and that means offering cars and trucks they “gotta have,” and giving them the service they deserve.
Let’s not forget to offer the customers the cars and trucks they really WANTas well, and not just the cars and trucks they “gotta have.”
At Disney World here in Florida, the sign says “where dreams come true.”
You gotta think big to be big. Dream big to grow big.
The American auto industy is the greatest in the world. Let’s keep it that way.
America is the Land of the Free and the Home of the Brave. Let’s keep it that way.
America would buy a Buick Park Avenue Ultra that looks, feels, and performs like a BMW 7 series, and offers a V-8 option.
America would buy a Riviera sedan that takes on the Mercedes CLS 500 and BMW 5 and M3 on style, with a small V-8 option.
Buick is New Class of World Class, this really energizes GM enthusiasts. World class brands like Buick should have a world class line-up of sedans to lead the afforadable luxury sport segment.
These are the cars America wants to buy.
Can we get board approval on that?
Peruse the major restaurant chains and upscale mall parking lots, they are filled with stylish sedans, mostly new ones. This segment buys frequently and trades often.
GM is missing so much sedan business in the luxury and affordable luxury segment, that it cannot be overstated.
21% can become 40%. American want to buy American cars, they are desperately seeking stylish sedans in a popular American style with an affordable luxury brand name like Buick and a luxury brand like Cadillac.
Most Americans are appalled at GM-UAW’s bailout. Most want a US built auto by a US company not controlled or owned by the govt or UAW.
Change the ‘May the best car win’ to
THE BEST CARS WIN!
2 years from now change that to
THE BEST CARS
Hi Susan! I believe GM made the right decision in keeping Opel. If GM can make this U-turn, I’m sure
GM can make Chevrolet a truly global brand by utilizing Opel’s expertise. GM needs German-engineered compact cars like the Chevrolet Viva to compete with Ford. I have no doubt in my mind that Ford is going to gain US market share with its European line-up of Fiesta, Focus, Kuga, C-Max and Transit. You may assemble the cars in Korea, but the design should be German. It’s the only way to make Chevrolet a truly global value brand with mass appeal rather than just a cheap brand.
Ms Docherty,
How much of the October sales bump do you attribute to sales incentives? According to the Wall Street Journal, “GM on average spent $3,900 to $4,000 per vehicle on sales incentives —among the highest in the industry, said Susan Docherty, who recently took over as GM’s top sales executive.”
How long can you keep spending $4,000 of incentives to push a car or truck off a dealer’s lot? At some point you need to start making a profit so you can pay start paying back your Federal bailout money, don’t you?
Lester:
Comparing absolute incentive figures with no context is pointless. Automakers that sell more trucks (like GM and Ford) end up with higher incentives partially because trucks cost far more than compact and midsize cars. It would be nice if incentives were presented as a percentage of MSRP instead of just dollars. Luxury automakers like Mercedes actually have the highest levels of incentives and that makes sense because their vehicles are very expensive. GM will always have higher incentives on average than Honda or Toyota because truck incentives are larger and GM sells far more trucks than either company, especially Honda. A $4000 incentive on a $40,000 pickup is much different than $4000 back on a Malibu or Cobalt.
Automakers that sell more trucks (like GM and Ford) end up with higher incentives partially because trucks cost far more than compact and midsize cars…
It would be too much to expect them to build vehicles that people would want to buy without incentives, right?
The quality of the vehicle — and offering it a fair price in the beginning — should be all the incentive any buyer needs.
Susan,
I still haven’t seen an official GM response to Car Czar Steven Rattner’s criticism of GM management in his recent Fortune magazine article.
Among other things he said,
“Everyone knew Detroit’s reputation for insular, slow-moving cultures. Even by that low standard, I was shocked by the stunningly poor management that we found, particularly at GM, where we encountered, among other things, perhaps the weakest finance operation any of us had ever seen in a major company.”
“The cultural deficiencies were equally stunning. At GM’s Renaissance Center headquarters, the top brass were sequestered on the uppermost floor, behind locked and guarded glass doors. Executives housed on that floor had elevator cards that allowed them to descend to their private garage without stopping at any of the intervening floors (no mixing with the drones).”
Do you now have one of those special elevator cards in your new position? Will you or GM ever respond to what Rattner said in the Fortune article?
Would not recommend that GM respond to the comments in the Fortune article. Its seems typical of Fortune magazine to run unfair criticisms of the American auto industry. Fewer and fewer people choose to read magazines like Fortune, Money, and Business Week which run such unfair criticisms and unbalanced articles.
Its more important for GM to respond and work with the Wall Street Journal since more people take the it seriously.
Obviously, we believe the criticisms from Fortune are not fair ones from a GM enthusiast view and from a Patriotic American viewpoint, since GM and the American auto industry have carried the U.S. economy through difficult economic times across many decades which has included recessions and wars as well as brought jobs to the world economy. GM accumulated structural debt during economic downturns often placed upon it by a respressive tax code and deduction system that has placed most American compananies in debt incentivizing a system of benefit largess at the expense of long term corporate profits and financial strength.
Following 9/11/01 nearly half of U.S. companies developed junk boind ratings (how quickly the media forgets). A record number of corporate bankruptcies ensued. Through it all, the U.S. auto industry proved one of the more resilient following 9/11/01, able to withstand even the harshest stock market decline and volitility.
The criticisms in Fortune are clearly short sighted and plainly unfair. Fortunes other articles on GM have also missed the mark blaming insignificant models like the Aztec and the Cimeraon, while ignoring important and significant design issues like the once best selling Cutlass Supreme.
Fortune represents a form a journalism that is fading and becoming less relevant in the information age. GM should just move on to more positive and significant territory. The auto industy, whether foreign or domestic, should consider not advertising at all in magazines like Fortune which ingore to complexities and dynamics of a great industry like the auto industry in favor of their biased media utopian agendas.
Mr. Wagoner seemed to foster a climate of cooperation with the UAW that was positive, and over time those strategies of cost reduction would probably have succeeded but for the financial crisis on Wall Street and it impact on economy.
Mr. Wagoner proved to be right about debtor in possession finanancing and he was obviously right for seeking government assistance in an economy where finanancing was in short supply.
Mr. Wagoner probably should not have cancelled Oldsmobile, from a GM enthusiast viewpoint, but should have cancelled Saturn instead and incorporated Saturn into Olds and Chevy. Saturn, a novel idea, seemed to became a drag on investment in GM’s core brands.
GM may have had lmited options during past dilemas when faced with economy uncertainties and structural costs, health care and pension liablity, which were not entirely of its own doing and probably did the best it could at the time to manage those costs.
On the contrary, GM should respond. Unfortunately, in matters such as this — as in politics — silence is confirmation.
After all, Rattner was the ‘Car Czar’ and his article in Fortune does carry some weight.
Here’s a response in the Wall Street Journal April 17, 2009:
“Steven Rattner, the leader of the Obama administration’s auto task force, was one of the executives involved with payments under scrutiny in a probe of an alleged kickback scheme at New York state’s pension fund, according to a person familiar with the matter.
A Securities and Exchange Commission complaint says a “senior executive” of Mr. Rattner’s investment firm met in 2004 with a politically connected consultant about a finder’s fee. Later, the complaint says, the firm received an investment from the state pension fund and paid $1.1 million in fees.”
http://online.wsj.com/article/SB123992516941227309.html
Edwin,
What does that have to do with Rattner’s charges that GM senior management — particularly finance — was less than top-grade, and that the senior leadership isolated themselves on the top floors of the Ren Cen?
There are have been several comments about what we’re doing to improve the dealership experience for customers. On a personal level, I can tell you that I’ve gotten a number of eMails from customers with problems that we’ve been able to resolve through our customer service centers. Helping improve customer service is every GM employee’s job.
There are a number of programs underway, many coming from our Service and Parts Operations team, to improve customer feedback, as well as provide value customers appreciate. They include:
Encouraging dealers to institute a Pit Stop process. The Pit Stop is designed to build a relationship with the dealer’s customers and let them know the dealer cares about them and their ownership experience;
Piloting a customer pay rapid response survey. GM is working with a group of pilot dealers who have agreed to send an electronic survey to all customers who have had customer pay work done at their dealership;
Conducting a mystery shop of Buick, GMC, Chevrolet and Cadillac dealers. GM has contracted with a 3rd party firm to conduct mystery shops of over 1,000 dealers throughout the country;
Offering national promotions with price points. GM has worked with the dealer body to offer four national price point promotions this year;
Training courses and materials have been developed. GM has developed training courses and video pods on customer handling issues to assist dealers on process improvement and how to implement necessary changes.
And let’s not forget the most important motivator to providing superior customer service — repeat business. It’s not about assesing blame, it’s about doing whatever is necessary to meet reasonable customer expectations of our service experience so they come back for more. They should be delighted when they leave the dealer. So we’re making progress, but certainly not near perfection yet.
Conducting a mystery shop of Buick, GMC, Chevrolet and Cadillac dealers. GM has contracted with a 3rd party firm to conduct mystery shops of over 1,000 dealers throughout the country…
Could you elaborate please?
Does this mean a mystery shopper walking into a dealership to rate how the dealer and salesperson treats them? Or, will your third-party contractor be taking GM cars with known malfunctions into service departments to see if they can correctly diagnose the problem, fix it, and charge no more a fair price? Or, are you doing both?
You make this sound like a new program. Does that mean you have not been doing such evaluations in the past? I would think that evaluating your dealers and their service departments is something you should have been doing on a regular basis since the days William C. Durant started the company.
After reading about the upgrade to the Solstice GPX to boost the HP up to 290 and reading comments on the price, I decided to do the upgrade, ordered the part, and had my dealer install. The labor charge was twice that I expected considering what I had heard on GM blogs.
John,
Quick, send one of your secret shoppers to Rick’s dealer and check that out.
Really hope GM is doing something to get the dealers to listen to GM enthusiasts.
I’m getting feedback from those shopping for a new LaCrosse. The dealer didn’t close the sale. They dinked around with the trade-in value and dissuaded the buyer. They could have already sold the new LaCrosse fully loaded.
GM DEALERS wake up –
When an obviously well off young couple, with kids, moves in to town, and they a GM customers, they pulls up in their obviously well cared for fully loaded, every option, chrome wheels and all, Olds Aurora 4.0 and they want to test drive a fully loaded new Buick LaCrosse or a Cadillac STS, wouldn’t you think the GM dealer staff would not try to nickel and dime them with with trade-in estimate delaying the sale for over a $1000 or $2000 trade in value difference, especially when they’ve already been serveral times for OIL CHANGES and regular service?
The dealer doesn’t have a CXS in stock to compare and thats what they really want anyway. They know every option they want right from the build-your-own on the GM website and the dealer staff realize they can make the sale if they do the right things?
So the couple test drove the CXL to see how the car handles. No offer to order the CXS? Only that they will “see” if there is one out there?
You’re not talking about tire kickers, your talking about people who are ready to write the check and just want to be treated fair and not feel they’ve been cheated on their trade. They go the dealer for service, even oil changes, and tune-ups and the same dealer doesn’t go the extra mile to make the sale today?
The dealer should give them the trade-in value they want today for their car and sell them the new car they want to buy or offer to order it right now. Get it for them as soon as we can. Say we’ll take care of you Mr. and Mrs. America, don’t worry about a thing. It’ll be just right for you. You ask them how much they think is a fair trade-in value and negotiate with honest value. You don’t take out some black or blue book and start to haggle over their excellent GM vehicle that they like by insulting them.
They’re on the dealers doorstep because they got the cash and they want a new car.
When your’re a GM dealer and you don’t have a new CXS in stock with a sunroof in white diamond in Florida, and the customer wants one, you say lets sit down and order it we’ll have if for you in a couple of weeks. You do whatever you have to do to make it happen that day when you know they really like the style.
If they want a V-8, and the model doesn’t come in a Super yet, you tell them when or if it comes out you’ll give them full trade in value if they trade up for the latest new car within a couple of years. You keep them in a new GM car and they’ll keep coming back.
When a nonsmoking GM customer that takes excellent care of their cars drives up in a popular style luxury GM car Buick, Olds, Cadillac, Pontiac, to your dealership and wants a new GM car and you don’t snap to – what is wrong with that Dealership sales and management staff?
If I were a GM exec and I learned about this happening, I would be there and fix the problem at that dealership.
On the other, I received feed back a man who who bought a 2008 CTS and was extemely pleased because the dealer they do busines with gave them full trade-in value to trade up to a 2009 DTS fully loaded.
Every Buick dealer in extended Jacksonville, Orlando, and Tampa metropolitan area ought to have at least one CXS LaCrosse on hand in a popular color.
Why is this not the case?
Every Buick dealer in extended Jacksonville, Orlando, and Tampa metropolitan area ought to have at least one CXS LaCrosse on hand in a popular color.
And the dealers in Tampa and Orlando should definitely offer their Buicks with the Geritol dispenser option built into the dashboard. Wouldn’t want any Buick owners to be late for an ‘early bird special.’
Norman,
Buick appears to be changing direction with the new LaCrosse and the Enclave which are appealing to rising professionals.
Enthusiasts are looking for Buick to become the affordable luxury sport version of BMW.
Buick LaCrosse as the New Class of World Class is a new beginning for Buick.
This is direction we’d like GM to go with Buick.
Enthusiasts are looking for Buick to become the affordable luxury sport version of BMW.
Right Edwin,
And what enthusiasts would those be? What enthusiasts want a sports sedan named “Regal?” Regal is a name for an old person’s car.
Thanks everyone for your comments. I wanted to take some time to respond to a few.
Marty — thanks for your comment on dealer service. While I agree with you that we still have a ways to go in this area, I think there are many GM dealers who really are getting it right, like Doug Whitehead, a Chevy dealer in Truth or Consequences, New Mexico (http://www.facesofgm.com/?p=458). As John McDonald noted above, GM is working closely with its dealers to improve our ownership experience. Although I cannot promise that we’ll be perfect every time going forward, I will commit to you that we will work hard to serve our customers better every day.
Melih — we think the “May the Best Car Win” campaign is striking a chord with customers; giving them confidence to consider a Chevy, Buick, GMC or Cadillac. Results so far have been encouraging…in fact, we’ve decided to extend our 60 Day Money Back Guarantee through January 4, 2010.
Beaugrand — in October we held our annual “Truck Month” promotion and put quite a bit of emphasis behind it. However, we do advertise all of our products across a wide spectrum of mediums, to a very diverse audience. We understand the need to bring fuel efficient cars and crossovers to market, and are already having some successes — the Chevy Equinox (32 mpg/600 mile range) has doubled its market share in a year and the Chevy HHR (32 mpg/512 mile range) saw a 27 percent increase in October. In the future, you’ll see more…stay tuned!
Susan Docherty
Vice President, U.S. Sales
General Motors
>> in October we held our annual “Truck Month” promotion and put quite a bit of emphasis behind it.
Truck month? Why then didn’t I see any promotions or ads for the Chevy Colorado or GMC Canyon?
Susan, “Stay tuned, and let us know what you think of our new products.”
LaCrosse: rear window too small – does not fill mirror (maybe it’s large butr angle is so flat…)trunk is way too small for vehicle class, non-competitive hp in AWD version (comparted to Lincoln, Audi)
Camaro – looks great except can’t hang arm out window while driving (maybe that’s why a/c is standard) and what’s up with all teh Camaros being traded in on something else in my neck of the woods. At least a half-dozen available used.
How can the Camaro be a muscle car if you can’t roll the window down, and lean your elbow on the window frame while cruising Main Street? That is definitely a drawback of those gun slit windows.
It’s obvious the Camaro designers don’t understand small town cruising.
Regarding the Camaro, this is one reason for GM to offer a range of products and not assume that one or two particular cars will fill the demand for coupes or that one or two particular cars with fill the demand for sedans in luxury and affordable luxury segments. Buick has high potential and deserves a full car line -up along with the 2010 LaCrosse.
A Riviera offering a small V-8 option that is a both a sedan and a coupe targeting BMW M3 and 5 series, and Mercedes CLS 500 on style would not compete with a Cadillac design that is bold and edgy that offers a sedan and coupe. Rather Buick Riviera would complement and improve the sales of both brands.
A Park Avenue Ultra offering a small V-8 option to target the BMW 7 series on looks and style would be a best seller.
A case for the Enclave and Acadia makes an even stronger case for Buick luxury affordable sedans since sedans and coupes are even more distinct than SUVs and trucks and offer more styling differences. Furthermore, in the luxury and affordable luxury sedan segments buyers are style conscious and trade more often than a typical SUV buyer.
There is a case for stylish cars in the line-up and GM enthusiasts hope that message resonates. Just look at the ocean of buyers for stylish cars at the upscale malls and nicer chain restaurants. These are frequent car buyers. The parking lots are filled with latest stylish sedans from luxury and affordable luxury brands. A high percentage are fully loaded versions. GM is missing too much of this car business to be concerned about whether one Buick would compete with a Cadillac or not. The answer is easy, the people will buy them all if you have a nice selection of cars with available engine choices for economy, “prestige,” or performance.
Not a day goes by, even in this economy, when you can’t find brand new luxury and affordable luxury cars parked at malls, popular restaurants, night clubs, professional offices, and so on.
GM should not think that the V-8 buyer is merely a muscle car buyer. There are also the V-8 prestige customers and V-8 luxury performance customers that really would like to have an American car. They’ve gone out and bought a BMW or a Mercedes ( or even a Lexus GS – eeek), because they were tired of waiting for Lincoln, Buick, and Cadillac to put their nice engines in the stylish cars.
Styish car + Nice V-8 engines = Market share.
Mercedes and BMW are attracting many of the V-8 performance and V-8 prestige engine buyers because GM and Ford are mostly offering V-8 options lately just in muscle car models and trucks.
There is too much business out there in V-8 luxury performance and V-8 prestige that Cadillac and Buick (and Lincoln) are missing.
And the Chrysler 300 C, with its like it or not style boldness, is long overdue for a stying update.
American stylers should try exciting their luxury customers and inspiring them to trade. These are the market leaders and these buying customers are sitting on the sidelines waiting for GM and Ford to make something that wakes them up.
Well how about the MKS, it has those high doors and small trunk opening, along with those huge tires, and doesn’t offer a V-8 option. MKZ nice, but the Mercury Milan looks better and it doesn’t say Lincoln. The Mercury Milan V-6 doesn’t offer a steel timing chain like the 4 cyclinder does (the American car buyer knows these little details that matter – their friend tell them about it). The old style town car and Grand Marquis have the engines that the customers want to put in the newly styled cars. The Ford Taurus has luxury look and price with a Taurus nameplate? Why wasn’t it named a Crown Victoria? So the customer says better wait a till next model cycle.
Lincoln sales would be much higher if it offered its updated styles in its popular engines. Whats an Ecoboost? The customer wants the 4.6 V-8, they don’t care about a boosted V-6. The MKZ and MKS should offer the V-8 prestige and performance option. American buyers don’t want to have to look to BMW and Mercedes or Lexus/ Infininti for styling options or V-8 engine choices.
Lincoln says but we have a V-6 that gets this much horsepower . . blah, blah, blah . . .
That’s not to say they are not excellent cars, because they are. The Fusion and Milan 2.5L are fantastic products. Its all the details like let’s have more American parts content.
That’s right, the new Camaro is not made for cruising.
Remember Harrison Ford’s character Bob Falfa cruising in a ‘55 Chevy in the movie American Graffiti?
Now try and imagine a new version of American Graffiti with a similar character cruising in a 2010 Camaro. Doesn’t work, does it?
One of my prime frustrations comes from GM renaming small cars…Just when a customer base has a common understanding of what a product is the name of it changes…Here is why I press the point.
The Accord name has been around since 1978–it has not been changed–same for Civic and Corolla who have been around even longer…to me it is much easier to understand a different version of a nameplate rather than bring on “another” new name that’s difficult to remember…
Another thought especially for Chevrolet—when you transition from Cavalier to Cobalt to Cruze you’re in essentially in the same market just spread years apart….wouldn’t you agree that Civic and Corolla have done the same thing, but kept that recognizable name?
The point is that name recognition takes time…as GM scales back to the four pirmary divisions each division now has an opportunity to make a bigger individual impression….what we name our cars and trucks is more important than ever…
Maybe GM (and Ford and Chrysler as well but not so much) incorrectly think that you and I the consumer will NOT connect the Cruze to the Cavalier, to the Nova (Toyota version) to the Nova (Detroit version) to the Chevy II to the Corvair. Good product or not, every time the top floor of the RenCenter gets embarrased by a car they change its name. However the down side of continuing names, as evidenced by the infamous Accord is that when introduced the Accord was smaller than the current version Civic and now is as large as a Malibu. At least the Malibu is (to me) still considered an intermediate class vehicle and never did represent a compact, nor full-size.
The Altima and Malibu are now bigger, too. “Midsize” seems to be growing and the Accord remains a midsize car by growing, too.
For those customers who think the Accord or whatever has grown beyond their needs, Honda offers the Fit and the Civic.
And a lawnmower.
And darn good lawnmowers they are. They also make mighty fine snow blowers, and portable generators.
If GM ever wants to use some of their excess manufacturing capacity and those idled UAW car builders, I’d recommend they look into the lawn mower and snow blower business. That is if the UAW would allow their workers to assemble lawnmowers.
When the name recognition brings bad comments it is time to change the name. (that been the message in the past) When you can’t compete change the name.
The concept of improving the vehicle instead of changing the name would be nice.
One of my prime frustrations comes from GM renaming small cars…Just when a customer base has a common understanding of what a product is the name of it changes…
That is frustrating, isn’t it? And what is perhaps worse, GM remains closed mouth about why they think a name change is a good idea.
For example, what could have motivated GM to pick the name Cruze? What could their focus groups and marketing gurus have told them that would make them think that was a good name.
In the old days, such as when Ford named one their cars the Edsel, that was understandable — though horribly misguided — since Edsel Ford was the son of company founder Henry Ford. But what rationale could GM have had for picking Cruze?
Its good to see better sales numbers. Congratulations. I was wondering if you have any sales figures by region. The only reason I ask is that to date, I have not seen a single Lacrosse out here in Northern California, and I tend to pay close attention to the cars on the road. How is it selling in prime upper end markets? Is it making inroads on Lexus?
Anyhow, while I do like the “may the best car win”, I think its time to perhaps start rolling out more model and brand specific ads. If you look at lexus, Acura, BMW, and even Ford commercials, they are confident, capable, forward looking ads. If sales are going up, perhaps its an indication that the public is aware of GM’s transformation. I would personally like to see more creative, in-depth ads that are all about the product. Personally, I don’t care for the ads with the guy sporting a flat top. These ads are kind of silly. They seem somewhat desperate. Then again, that’s just me.
I look forward to your latest developments.
Ms. Docherty,
You all have a monumental task turning the Good Ship GM around, and it appears that the incremental changes have been largely successful. The December 2009 issue of “Winding Road” compared the LaCrosse with the Audi A4, Acura TSX and Mercedes Benz C300. They didn’t pick a winner, but three things stand out: First, the comparison would have been unthinkable even one year ago. (I look forward to the day that this is not a shocking event, when GM cars are naturally part of any international comparo).
Second, the Buick was very much praised for its balanced handling / ride and its beauty. It appeared to largely beat out the Benz and Acura overall, but the authors couldn’t help but prefer the sporting handling of the Audi. Still, when cruising came the mind, they liked the Buick best. Nevertheless, the LaCrosse’s larger size and weight put it in a somewhat different class than the others (price under 35K was the common thread). My point is that the upcoming Regal will more closely match these cars in a host of ways, and needn’t be priced below the LaCrosse.
And that’s my third point: Make the Regal for drivers, give it a Nurburgring pedigree and you can price it nearly the same as the LaCrosse. As I’ve said in other posts: No more base Buicks, no more cheap Cadillacs.
Second CTS,
All that means is that I’ll never be able to afford a Buick or a Cadillac. All of us out here aren’t as wealthy as you appear to be. If GM can do nothing other than pander to the wealthy, then I will go with Ford or Hyundai.
Robert,
To me, one of GM’s long-standing problems has been the down-marketing of its premium brands. Making Buicks and Cadillacs for everyman, including stripped models just to ‘move the iron’ has proven detrimental in the long-run. Premium includes a higher price.
There’s a bit of economic theory about luxury goods that goes against the normal notion that a lower price will increase sales. With luxury goods, a higher price actually keeps sales up because of the prestige of paying the higher price. It’s why Mercedes Benz always suffers when it rolls out the low-end stuff. Jaguar did it to themselves with the X.
GM’s been cheapening its premium brands for so long that it’s hard to imagine that Buicks and Cadillacs will be out of many fans’ price bracket going forward. But that’s exactly what should happen. They should be exclusive, loaded, top-end brands competing head-to-head with Audi, Acura, Infiniti and BMW. Buicks and Cadillacs cannot be lower than that class; they cannot be tarted up Chevrolets. Let Chevy go against, Toyota, Volkswagen and Honda. If that’s what you can afford, then how about a nice Camaro?
I’m anxiously awaiting the small Alpha Cadillac. I know you can’t comment on future products, but is it a go, and when?
Ms. Docherty ~
Now that you’re in charge of marketing, I suggest you kill the TV ad where Howie Long is mocking Honda for making lawnmowers. It’s unbecoming.
At least Honda is using their engineering skill and manufacturing capacity to make something people want to buy, plus their lawnmowers are pretty good. They also make good snowblowers and outboard motors.
I bet your stockholders (which now includes me and about 295 million other Americans) wouldn’t mind it if you used your manufacturing capacity to make something useful that people would want to buy. I bet your furloughed workers would also appreciate the chance to get back to work.
What’s wrong with diversifying and making lawn mowers, snowblowers, outboard motors, lawn tractors, etc? If you made good ones, people would buy them. What Buick owner wouldn’t want (and be proud of) a “Made in America” Buick lawnmower?
I remember when GM made appliances such as “Frigidaire” refrigerators. A few years ago, GM was marketing hand tools that were obviously OEMed by some mfg in Taiwan. GM is in no position to be taking cheap shots at the competition.
Where are GM’s small and mid size hybrid vehicles?
The competition has quite a few with more coming.
Better get on board with real hybrid technology soon.
If Mercedes can do it in the S400 for no increase in base price then the payback equation goes away. Something to think about……..
11/8/09 In todays New York TImes – Automobile section – A Hybrid stakes out high ground in the Behind the wheel column some interesting comments were made.
“For every smartly realized hybrid like the Toyota Prius or Ford Fusion, there has been one whose combination of price, economy and practicality doesn’t quite add up”
“nothing deserved more eye rolling than “mild hybrids” like the now defunct Chevrolet Malibu Hybrid, whose on-the-cheap hybrid system also produced insignificant mileage gains. These neither-nor hybrids have been spurned by savy consumers who seemed to send a clear message: if your not bringing big mileage to the party, don’t bother coming at all.”
Mercedes has done something new. Its 144 volt lithium battery is barely larger than a regular 12 volt car battery. It fits under the hood so it does not take up cabin space or trunk space.
It also has done something new. PRICE —- the S400 costs $3650 less than the S500 model.
All the competition to GM is moving fast on REAL HYBRID technology. IS GM up to the challenge?
So far GM’s efforts have been uninspiring.
Clean diesels are better alternative than hybrids:
http://www.popularmechanics.com/automotive/new_cars/4237945.html
The Chevy Volt is far superior to a hybrid. . . 230 mpg.
Edwin,
Please, don’t drink that 230 mpg Kool-Aid. The Volt will NOT go 230 miles on one gallon of fuel*, no matter how GM tries to spin it.
What the Volt will do is go about 40 miles on a fully-charged battery, at which point the range extender engine will start and supply electricity for the electric motors. Once the ICE is running, it will probably get in the range of 40-50 mpg.
Being able to go “up to 40 miles” on the battery, and then get 40-50 mpg when the internal combustion engine is supplying power does not equal 230 mpg.
______________________________
* “mpg” means miles PER gallon. When you get your Volt, try this: Put one gallon of fuel in the tank and leave your home with a fully-charged battery. You will not be able to go 230 miles. The distance you will be able to travel before the car comes to a stop will more likely be about 80-90 miles. That’s certainly good, but it’s not 230 miles per gallon.
You are absolutely correct. GM’s credibility is going to take a major nose dive when people buy a Volt with the expectation of being able to travel 230 miles on a full battery charge and one gallon of gas. It is very deceitful of GM to make such a ridiculous claim.
The Chevy Volt is expected to be rated at 230 mpg city by the EPA, in the same way the Prius is rated at 46 mpg city.
Yes, the Chevy Volt is far superior to the Prius in terms of mpg. That truly frightens apologists for the foreign competition.
Chevy has beaten the competition so badly that foreign branded apologists are grabbing for straws. It shows that the eco-critics seeming faux affection for hybrids was all a diversion – a side show gimmick – used to justify their bad choice to buy a foreign brand.
Ahh, but don’t expect to see the eco-types to repent, or become all tearie eyed true believing flag waving Patriots all at once.
The Chevy Volt is wonderful: Its exposes the whole eco-emotionalism thing for what it really is.
Just watch them squirm. Those who want to buy an inferior foreign brand . . well, that’s their choice. Just don’t blame American automakers for it.
GM is and has always been the superior choice. That hasn’t changed. American quality is the best in the world along with American technology.
Even CNN is dumbfounded to admit the Chevy Volt gets 230 mpg when compared with the Prius:
When gasoline is providing the power, the Volt might get as much as 50 mpg. But that mpg figure would not take into account that the car has already gone 40 miles with no gas at all.
So let’s say the car is driven 50 miles in a day. For the first 40 miles, no gas is used and during the last 10 miles, 0.2 gallons are used. That’s the equivalent of 250 miles per gallon. But, if the driver continues on to 80 miles, total fuel economy would drop to about 100 mpg. And if the driver goes 300 miles, the fuel economy would be just 62.5 mpg.
http://money.cnn.com/2009/08/11/autos/volt_mpg/index.htm
Maybe CNN’s confessions about the Volt will trickle down to their tabloid magazines like Fortune, Time, and Money or even to their liberal following. Just don’t count on it.
Has CNN run even one story reporting the Honda market share decline since July 2009 while the market share of GM and Ford increased since July 2009? Note the Wall Street Journal graph linked which clearly shows Honda experienced a significant market share decline from August througth the end of Octotober 2009:
http://online.wsj.com/mdc/public/page/2_3022-autosales.html
Now read the CNN report on Honda which fails to mention one word about the Honda market share decline which occurred from August through October 2009, while it reports without question a Honda sales increase forecast:
http://money.cnn.com/2009/10/27/news/international/honda_earnings.reut/index.htm
CNN devoted an extensive segment recently to interviewing a Consumer Reports (R) representative.
. . . . One day, maybe the all encompassing, know it all, CNN network, will actually invoke real journalism and ask Consumer Reports (R) to reveal and even publish their actual response rate to their so called surveys (an audit!!), instead of mentioning total subscribers to their magazine.
By the way, has anyone known anyone who has filled out a CR survey after they bought a car? Or is it an illusion and a mystery? If so let’s hear about in detail. When was it mailed? What were the actual questions? Has a single network or news organization ever interviewed anyone who filled out CR survey to document it? If so, lets that network or news organzation respond right here and now and source their information. Do a Lexis-Nexis search. Anyone ever seen a single news report to date documenting it? Do American car buyers even subscribe to CR in significant numbers? What is the actual response rate to CR “reader based” surveys? Any audits? . . . . .
A primary place global warming promo seeks its last refuge, during these times of its collapse, is within the studios of CNN-Time Warner media.
Why would America get news or even tune it to a – feel sorry for the bad guy, war promo network – that runs unbalanced tabloid stories attacking American companies? Is there such a network?
Try googling: CNN U.S. “War Council” . Guess which networks use the term War Council most often, the liberal ones, and CNN is among them.
CNN U.S. “War council” returns 139,000 results, while the same with Fox News U.S. “War council” returns just 18,900 results. CNN apparently likes the term “War Council” about 635 % more than Fox News.
http://www.google.com/search?hl=en&q=CNN+U.S.+%22war+council%22&aq=f&oq=&aqi=
http://www.google.com/search?hl=en&q=Fox+News+U.S.+%22war+council%22&btnG=Search&aq=f&oq=&aqi=
In between their unbalanced attacks on one or more American auto companies on TV or in one of their magazines, CNN seems to scurry to their ’situation room’ to sway American sympathy for continued global war or an occasional promo for climate change . . . . as their ratings continue to drop. (Lou Dobbs excepted)
Even CNN is dumbfounded to admit the Chevy Volt gets 230 mpg when compared with the Prius:
They should be dumbfounded. There is no way a Volt will go 230 miles on the energy in one gallon of fuel.
Don’t you get it? MPG means miles per gallon. In other words, the distance you can expect to go on one gallon of fuel.
Put a gallon of fuel in the tank, and believe me, you will not go 230 miles. There are approx 115,000 Btu in one gallon of gasoline. It will take far more energy than 115K Btu to push a Volt 230 miles.
GM needs to stop this 230 mpg charade ~ all they are doing is misleading people, deliberately I suspect.
Just supply us with the energy the Volt will consume moving a certain distance. GM can do it in Btu, kWh, Joules, or electron volts (eV) for all I care, just as long as they are consistent.
Right now they are conflating electrical energy (kWh) with a unit of volume (gallons of fuel) and that “230″ number is meaningless. Suggestion: Convert the energy in the liquid fuel used to kWh, add that to the electricity used in kWh, and then tell us the Volt’s efficiency in terms of miles per kWh. Anyone that’s interested can then convert that to an mpg equivalent.
Here’s a handy Website for determining fuel economy in terms of miles/kWh: Miles per kWh converted to MPG
edwin,
Am I to understand that you are getting 230mpg in your Chevy Volt? Or that anyone is getting 230mpg in a Chevy Volt?
A car on the road is better than two cars promised for tomorrow.
Susan Docherty,
You are no longer the GMC honcho, but would you please be so kind as to point me in the direction of where I could find the official GM definition of “professional grade” as applied to GMC?
Your company keeps using that tag line in your ads, but I’d like to know in what context you mean that.
Is it more than a marketing gimmick — are GMC trucks actually intended for professional trade workers such as plumbers, contractors, ranchers, etc. And if so, what special qualifications do they have? More robust and durable parts? Better quality assurance during assembly? I’d like to know.
Les,
Better quality assurance for ALL GM cars would be an outstanding marketing point.
Susan,
Why not some ads featuring the quality assurance inspectors at GM assembly plants? I’d feel much better about buying a GM car if I knew they went through a robust inspection before being sent to the dealers. I’d like to hear some real-world anecdotes from car inspectors of cars that didn’t pass, and had to be sent back to be reworked?
How about a big sign in the window of each car after it passes its quality assurance inspection saying, “Inspected and passed by Kyle Johnson*, UAW Member Card No. 1234567.” Then if we have problems, we would know who let that car slip through.
______
* Made up name and card number.
Indeed, your idea of GM identifying the quality control inspector for each car has merit. When one is about to spend $30, 40, 50, or more thousands on a car, it would certainly be reassuring to know that GM had made quality control a top priority and was willing to hold someone responsible.
I’m sure that identifying the quality control inspectors would also make them much more assertive about rejecting cars that didn’t pass muster. Having one’s name attached to a product can be a powerful motivator.
GM needs to sell — Quality and Value
Build a Quality car at a Value driven price.
Below average Consumer Reports ratings on vehicles is not acceptable.
Customers feel cheated when they find out they bought a poor quality vehicle.
My question on CNG vehicles and our reserves of natural gas found under NY, Penn and Mich was ignored as was my concern over the possible true price per gallon of gasoline.
Perhaps the latest set of Clunkers data deserves a response. The Civic was VERY popular in the Cash For Clunkers program as was the Corolla.
We got our be-hinds kicked – this is becoming very demoralizing.
Quote “We know we have a lot of work to do to earn consumer trust, change perceptions about our company and products, and strengthen relationships.”
After Corvair, Vega, Chevette, Corvette, etc it will require more work than you realize. During the time GM’s quality was at its all-time lowest, I remember a TV ad where a GM QC tech was bragging that he had rejected a fully assembled engine because of an imperfect paint job. (Unlike me, most people do not prevent an engine from being covered with crud 6 months after they buy the car and they would never notice a flaw in the paint.) For over 30 years GM has been claiming quality was its top priority and, as a result, its credibility has gone down the tubes. Now it will have to actually “deliver.”
I’ve been flamed for dwelling on the past. Well, only a fool continues to buy from a company that has given him nothing but grief. Why should I risk another round of aggrevation when I’ve had pleasant experiences from the competition? Believe me, I used to be GM the way other people are Baptist or Catholic and I used to rabidly defend GM the way some people on this blog do. I made excuses and cursed the competition until I had one-too-many rapings from GM. The same thing will happen to the people on this blog who flame me someday if GM doesn’t get its act together.
(I’m sure this will be ignored) I HAVE driven new GM products and I have not been impressed with the performance or handling. I will reconsider GM if it proves it is serious about quality and establishes a reputation of honoring its warranty.
I’m sure this post will be discounted as being negative but the purpose was to get GM to realize how it alienated its most loyal customers and how it can recover them. Just telling it like it is. I refuse to buy an import and my dad would roll over in his grave if I bought a Ford so I REALLY do want to return to GM.
RD,
Good for you for bringing this forward. I hope GM and Susan Docherty listens.
As Bill Gates once famously said, “Your most unhappy customers are your greatest source of learning.”
As Bill Gates once famously said, “Your most unhappy customers are your greatest source of learning.”
Great Comment —– I wonder if anyone listens to the complaints.
The consumer reports quality ratings need to be listened to.
Ken,
And both MicroSoft and GM have had their share of unhappy customers. However, based on what I’ve seen, it seems MicroSoft listens and learns from them better than GM.
Well at the least, progress is good. Thanks for the news!
Where are the small and mid sized flex fuel vehicles from GM ?
All new gasoline vehicles should be flex. Give consumers a choice at the pump.
Reduce our nations dependence on OPEC and foreign oil.
Energy Security is National Security
Energy production is national security.
Susan,
You mentioned gotta have it – well here’s mine: A CTS or Alpha with the 3.6L DI engine, AWD and a 6 speed manual transmission. Mr Nesbitt responded on another site that this combination is not popular – well I guess BMW, Audi, and Mercedes don’t know what they are doing because they all offer that combination – but not Cadillac. Even Subaru offers AWD with a manual – maybe thats what makes them popular in snow country? I’m not sure what your source of data is, but I’m telling you right now that there are many enthusiasts that live in the snowbelt that desire the roadhandling of AWD and much prefer to shift gears for themselves. Please don’t force me to make a decision to change to a German marque – if Cadillac wants to play in the big leagues you need to step up and offer the goods. And if you do decide to offer my powertrain of choice, please try to show some restraint on future Cadillac front end designs – I’d bet you’d save money with a smaller front grille too. The CTS is nice, but way overdone with that cheese grater grille that could shred Wisconsin. Classy luxury shouldn’t be over the top bordering on gawdy. The SRX is much nicer out front.
Thanks for listening, but actions speak much louder. I’m ready to buy if Cadillac is willing to build.
…and a 6 speed manual transmission.
Lori,
You’re a woman after my heart. Manual transmissions are for thinking people — action oriented people who are used to making decisions for themselves, instead of letting a machine do it.
Automatic transmissions are for people who want to drive around with their brains on auto-pilot. It’s obvious that GM sees the bulk of their market as non-thinking people. Too bad.
“Automatic transmissions are for people who want to drive around with their brains on auto-pilot. ”
I am sorry, Doug, but in my opinion that’s just a biased allegation. Driving a car with automatic transmission is much more convenient at daily commuting, especially, when there’s stop-and-go-traffic over longer distances, as I am encountering every morning. If you are keen on hitting the clutch-pedal every few seconds – so go for it. To me and many others, preferring automatics, that’s just bothersome. Nothing else. Furthermore, it’s a matter of fact, that automatic transmissions allow a more dosed application of power to the wheels under winter-specific driving conditions. Furthermore automatics can simply be maneuvered faster, than those vehicles equipped with manuals. To my knowledge, even over here in Germany, every Police-Car has an automatic just for this reason. Finally those transmissions prove to be more reliable according to my observations. Last, but not least, I am knowing more people, who are considering an automatic for their next car, than switching from an automatic to a manual. Just ask yourself why. By the way, I am very well used to driving cars with manuals (e.g. at my company) as well, so be assured, that I am knowing what I am talking about and could do the comparison. Even fuel-efficiency isn’t a true reason anymore to prefer a manual transmission.
GM isn’t making anything like the Grand Am anymore. It had the right blend of performance, style, class, size, amenities, price, etc. I’m not sure which division of GM could even market something like the Grand Am. Chevy has been labeled as incapable of producing anything except huge pickups and cheap muscle cars because of its history of wretched small cars. Buick is meant for the Geritol crowd. Caddies are perceived as pretentious barges. It seems the “perception lags reality” rules of marketing are going to be tough to overcome. A personal luxury car reminiscent of the Grand Am might help.
THANK YOU!!!! it seems that someone in this whole place has their head on strait! Chad, the Grand Am was deisigned for performance and class but at a much cheaper price than most of the compitition. Since the Grand Am series was discontinued in 2005, nothing GM has offered comes close. The Grand Am is a middle class designed car that actually has a feel of a world class car like the Trans Am. It was not as fast as most would have liked it to be, but it was sure a great value for American families. Not only that, but if you want to get into some serious street racing, the Grand Am was a perfect car for it. The only major problem with it was the airbags that went bad because of a bad GM deisign with the floorboards. (they put the airbag controller right underneith the carpet padding under the passanger seat which made it go bad after 2 months after installment.) But with GM not producing Pontiac anymore, they won’t see another dime from another Pontiac driver. (that is, unless they listen to the billions of Americans that own them in every way shape and form. but we all know that Susan, Lutz, and Fritz won’t ever listen to Americans. They need to be fired soon or GM is going to go down the tubes in a few years.)
GM rates below average in consumer reports quality ratings. (this has to improve if you want to win back customers)
Ms. Docherty,
“We know we have a lot of work to do to earn consumer trust, change perceptions about our company and products, and strengthen relationships … We will continue to work hard every day to make our customers our top priority – and that means offering cars and trucks they “gotta have,” and giving them the service they deserve.”
Perception: GM will build what it wants, regardless of public opinion.
What’s in a name; especially if that name is LeSabre?
Gotta have, as long as it is FWD, right?
Gotta have a Professional Grade HD truck with a 23 year-old out-dated front suspension, right?
I’m pro GM, but this isn’t Jone’s Town and I’m not drinking the Kool-Aid.
Congratulations! An outstanding decision, which doubtlessly will strengthen Buick’s position on the American market:
http://media.gm.com/content/media/us/en/news/news_detail.html/content/Pages/news/us/en/2009/Nov/1112_Buick_Regal
My recommendations: Offer the complete range of technical features, already available for the Insignia, such as the so-called “Opel Eye”, for the 2011 Buick Regal as well. This will make it even harder for Buick’s rivals to compete against a vehicle, which anyway defines a new benchmark in Europe already. Then, please think about the Insignia Sports Tourer as the 2011 Buick Regal Station Wagon and the all-new Astra as a premium compact, in order to get an adequate entry-level model for Buick. Then the brand’s revival will be on a very promising path. Best regards from Germany.
The Regal’s development is rooted in Germany, where the globally led engineering team created the award-winning Opel Insignia – the 2009 European Car of the Year.
That begs the question of why not just sell it in the U.S. as an Opel Insignia?
Take advantage of the fact that Opel is part of GM. Don’t just tell people the Buick is based on the Opel, but sell it as an Opel. Let people know it is a German-designed car. Let them know it is GM’s Euro-car, so those who buy it can have the same status as those who buy other Euro-cars such as Daimler and BMW.
Market Opel’s precision German engineering, old-world craftsmanship, and suspension and brakes that are equally at home at 160 mph on a German Autobahn, or driving through the twisting, narrow streets of some quaint Bavarian village.
Market it right, and an Opel will fulfill more people’s socioeconomic fantasies than a Buick.
Bert, a time ago I also was thinking about the idea to selling Opel’s in the US, replacing the axed Saturn-Brand. However, that’s a difficult decision. Be aware of the costs, a proper introduction and marketing-campaign for the Opel-Brand would cause and keep in mind, that even Europe’s largest brand (by far), Volkswagen, hardly was on par in monthly sales with Pontiac alone in recent times. Not a single German manufacturer is close to the market-share, GM, Ford, Toyota or Honda are holding in the US! Would it be worth the efforts? Today I’d say “no”. Anyway it soon will be common knowledge, that the 2011 Regal is nothing else, but the strongest product from Rüsselsheim in recent decades.
Spot on. I’m still a bit too young for a Buick to be appealing but I would buy an Opel.
Buick is an American world brand now. It would be far better just rename Opel and Holden models as as either Buick and Chevy.
A car named “Regal” is a “sports sedan?”
Why on earth would they use the name “Regal” for a sports sedan? Nothing sporty at all about the name “Regal.” A better name for a sports sedan would have been Buick Wildcat.
Who is running the show at GM anyway? If they can’t do any better than “Regal” as a name for a sports sedan, we should demand they give our billions of dollars back.
I agree. “Regal’ is not the name for the sports sedan that is supposed to change Buick’s stodgy image. Regal is a an old person’s name.
Buick itself has a great image. Its not the age of the person who drives it, its the particular style.
the ad campaign, “this is not your father’s Oldsmobile” is way off. Young people LIKE their father’s Oldsmobile. The Olds 442.
Lots of old people are driving Toyotas and Hondas which have no appeal whatsoever.
Regal has a sport image as well. The Regal Grand National was pure sport, also the Regal Gran Sport.
Some sports are for the “Regal” . . LaCrosse, Polo, etc.
Young professionals are flocking to the new Buick LaCrosse. The sales are amazing. The loaded LaCrosse CXS models are flying off the lots. The dealers can’t get them fast enough. The LaCrosse is just a better car than the Lexus ES or Acura TL. Lexus is panicking and running give away promotions.
And the LaCrosse is better looking than the Lexus ES or Acura TL
The Olds 442.
The Oldsmobile 4-4-2* with a Hurst shifter — a real muscle car. That was indeed in GM’s glory days. Even police departments used the 4-4-2 as a police interceptor.
___________________
* Four-barrel carb ~ four-speed manual transmission ~ twin exhaust pipes.
Regal has a sport image as well.
Sorry, but Regal is an old-person’s name. Can’t understand why GM picked that name — it only reinforces the perception of Buick as a car for the “early-bird special” crowd.
Its really exciting to see a new Regal finally on the way. I’m much more of an optimist on Buick. It really can be done with Buick if they keep listening to enthusiasts. It appears you all are going to be surprised at the success.
Just get those LaCrosses on the road and Buick will keep rising in awareness.
Regal has great potential and strong appeal for the Cutlass enthusiasts out there who’ve been hoping GM will come to their rescue. Regal hasn’t been thought of as an ‘old persons car’, thats just a ridiculous attempt to distract the discussion, even though the last style wasn’t what we wanted to see Buick do. Regal carried a higher price tag and more options than the Cutlass.
Civic is a boring name, so is Accord and Camry. Civic like in civic center? Accord like a ‘treaty?” The styles of the Accord is enough to put you to sleep, a Honda Accord is about as old looking as it gets. Honda appears to be the first of the Asian brands to be heading for a collapse.
I see why some are auto media might be worried that Buick will take the market by surprise. Just think, establishment auto media elites will have to go through 12 step rehab and honda withdrawl for weeks.
The Regal has the potential to lure the tuner crowd to Buick if they do a Regal Grand National like we’ve encouraged GM to do. The Regal Grand National could have the 3.0L DI V-6.
Buick’s new styling is very encouraging, it looks like they are listening.
I favored doing the car comeback with Oldsmoble leading the charge, but it can be done with Buick and the Regal is just the car to kindle the enthusiasm. Its really exciting to see a new Regal in the works.
The Regal Grand National is revered to this day by all ages groups. Regal has high name recognition with a quality reputation.
GM classic names are important in the market place and energize base customers to lead the market trends.
Regal has a premium luxury sport image. A Regal should focus on a performance edition with a black grille look like the Grand National as well as a luxury sport edition. It should command a lots of attention and sales. The design they are showing appears very encouraging.
The new Regal appears to have great styling, though the grille design might take a page from the 2010 Mercury Milan update with the solid bar going across. The rear angle and profile look fantastic in photos. We’ll have to see what it looks like in person.
Have an increasing feel that Buick will lead a car comeback for GM. Especially encouraged by the 2010 LaCrosse. The car is a head turner. Recently saw a young couple driving their new 2010 LaCrosse CXS through an upscale neighborhood, and sure enough it was turning heads among the luxury car owners. The simple reason is that new LaCrosse is convincing and looks so much better than the Lexus, Acura, and Infiniti counter part.
If Buick takes it up one level they could easily smash the foreign luxury competition with a full size sedan with the LaCrosse styling targeting the BMW 7 series on looks. And it wouldn’t take away from Cadillac with its bold and edgy looks. GM is missing so much sedan business that when it finally gets the great looking cars to market, its going to be surprised at the market share gains.
Riviera is a great name, it would be fantastic as a sedan to lure the Oldsmobile Aurora customer to Buick.
Wild Cat would be a great name for a Buick Roadster like the Solstice.
“They should be dumbfounded. There is no way a Volt will go 230 miles on the energy in one gallon of fuel.”
Doug, anyway calculating in mpg is a totally inappropriate way to express the efficiency of any EV. It’s like calculating the consumption of coal, once applicable for the “Big Boy” or “Challenger”, for a Dash 9 or AC 6000 locomotive. The EPA simply has to find a new adequate method. Period.
Agree. Period.
Apparently there is a way the Volt can get 230 mpg. Its so fun to see/hear the eco-types squirming and grabbing for straws.
Edwin,
There is no way the Volt will go 230 miles on one gallon of fuel. When you get your Volt, I’ll make you a bet:
Put one gallon of fuel in the tank and leave your house with a fully-charged battery. Then tell me how far you’ve gone before the car rolls to a stop. I’m betting it will be something like 90-95 miles. If you can go 230 miles before it stops, I’ll owe you a beer.
Remember, mpg means miles PER gallon. Actually, mpg has no meaning when trying to combine energy used that comes from two sources — one liquid and one electrical.
To be fair, GM needs to tells us distance as a function of energy consumption in one, straight-forward unit. They can use any of the commonly accepted units of energy: Btus, joules, or kWh, but there is nothing to be accomplished by mixing a unit of volume with units of energy.
GM has a good thing in the Volt. My advice is not to corrupt it with the 230 mpg flim-flam. It’s not becoming for such a big corporation.
Actually there is a way it gets 230 mpg city mileage. It follows the formula for commuting patterns the same as the Prius, except the Volt beats the Prius.
One one gallon of gas commuting around town, the Volt gets 230 mpg city.
I would consider buying a Sierra but there is no way I would buy a GM car. The German cars are fun to drive because of the way they handle and perform. They remain classy looking for several years after they are purchased. GM cars just don’t “get it”. Your best chance of selling a car to me is to import Opels.
I am glad to see that GM is gaining profits again. I currently am working with student engineers at Penn State in EcoCAR: The NeXt Challenge. We have to redesign a GM Donated Vehicle and even though GM’s profits have been down, support has never faltered. We are always generous of what they have done for us. If you want to learn more, check out http://www.ecocarhcallenge.org or visit greengarageblog.org.
Stay Green.
Good news for GM. They need every bit of this kind of improvement in sales. I guess my question is why aren’t they concentrating on more alternative fuel vehicles. that is what consumer interest is leading toward. Also you all had a great thing with your electric car. why did you pull the plug on that?
” I guess my question is why aren’t they concentrating on more alternative fuel vehicles. that is what consumer interest is leading toward. Also you all had a great thing with your electric car. why did you pull the plug on that?”
Where are the small and mid size flex vehicles from GM?
Where are the small and mid size hybrid vehicles from GM?
Sounds like the customers are ahead of the designers.
GM — are you listening ?
Friday — New York Times — Business Section 11/13/09 — “GM Struggles to shed a legendary bureaucracy” —- WOW — no wonder GM struggles compared to its competition.
GM needs to downsize it’s management to reflect the downsized company……. Reduce those layers of management and cut out the many committees. Seal up the private elevator……listen to your customers
GM has been loosing market share for decades….. What you did in the past did not work…..
It is time to change……….
Get lean and responsive………
The old methods led to bankruptcy …….. Now lets see if you can get those quality ratings up to average from below average.
The competition is moving fast……. are you up to the challenge?
You still read the New York Times?
Try writing to Congress and tell them to repeal all their anti-business regulations.
Not much progress here…….
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.
Ford Fusion won. That’s progress.
The Chevy Volt beats the Prius. That’s Victory.
It would be better for the federal government to take regulations off the auto companies and eliminate or cut corporate income tax rates in the U.S.
And . . cut or eliminate capital gains taxes so people will spend their money on new cars like they did in the late 1990s when the stock market did so well, the auto companies made money, and the federal budget was balanced.
if GM wants to sell more cars and trucks they should press the federal govt to allow the interest payments to be tax deductible from your federal taxes like it used to be.
Really excited about the LaCrosse.
They appear to be selling at a very high rate. Dealers in Jacksonville, Tampa, Orlando area are running out of the LaCrosse again. People are purchasing as many fully loaded models as GM puts on the lots.
This goes to what we’ve been telling our friends at GM: Style, Style, Style, cars, cars, cars.
The new LaCrosse is selling without incentives.
Let’s offer the popular engines in the popular cars.
Will there be a new LaCrosse Super 5.3 at the auto show?
Now, who at GM can doubt GM enthusiasts?
If GM makes a full size Buick with the LaCrosse styling to target the BMW 7 series on style, it would sell beyond belief.
BEYOND BELIEF
The question is how fast can GM get it to market. . . . . . .
But won’t it compete with the Cadillac XTS?
NO it won’t take away from Cadillac. GM is missing SO much stylish sedan business already and GM cars need the diversity of design and Buick should offer a small V-8.
Buick can become the new BMW on style.
Expand car models at Buick and Cadillac and GM will WIN.
We can just imagine what sales meeting are like at Corporate when they see the LaCrosse CXS are selling out!!!!!!!
I have a 2008 CTS and just purchased ‘10 SRX. Love both and anxious to see the CTS Coupe, or maybe a Buick Coupe. I plan to replace teh CTS with a coupe and chort of the CTS or Buick, GM doesn’t offer me anything.
My only disappointment with SRX was lack of exterior color selection – is it me, or what’s happened to GM and exterior colors – very few and pretty bland, nothing memorable. I’d like to see something beyond grey, dark grey, black, navy blue and white!
Patrick-
A car company ought to be willing to paint one of their cars whatever color the customer orders. If body shops can mix custom colors, surely a GM assembly plant could do that.
It just shows they aren’t willing to provide the service it takes to close a sale.
Toyota launched its Prius Plug-in Hybrid lease program. Toyota will be building and deploying 600 plug-in Prius’s for testing primarily in Japan, United States and Europe
November 2009 Sales data
GM down -1.8%
Toyota up +2.8%
Ford up +0.1%
Nissan Up +20.8%
Hyundai up +45.9%
Kia up +18.3%
Do you see a pattern here?
Where are GM’s small and mid size flex, hybrid or high mileage vehicles?