January 3, 2008

And Now for Something Completely Different...

By Christopher Barger
Director, GM Global Communications Technology

If you haven’t been able to tell over the last few years, GM is really, really trying to do things differently, and not just in the way we’re designing and engineering our products.

This means telling our story, and spurring conversations both with and among the driving public, in a more honest and open kind of way. Our blogs have always tried to stay faithful to that premise (even if we don’t always have the chance to engage as often as we’d like), and we plan to build on it going forward.

To mark the beginning of GM’s second century, we’re launching a new site today called GMnext. The idea is to engage different people in a global discussion about the future not just of GM, but about the future of personal transportation.

On the site, we’ll tell you about our ideas, our plans and our people that will lead us into our second century and tackle critical issues concerning energy, the environment and globalization. We encourage you to interact with the GMnext web site. Share your own ideas. Offer feedback. Tell us what we’re doing wrong, what we’re doing right and what we can do better. GMnext is about having a global conversation and we’re interested in hearing from all of you – from die-hard gearheads to casual car consumers, from supporters to critics.

In addition to unveiling the new site today, we’re also beginning the conversation and the entire GMnext program by having traditional and social media participate in a 24-hour chat with GM’s leaders and future leaders. It’s just the first of many activities we’ll be holding throughout the year until our centennial celebration in September 2008.

By the way, GMnext is not going to replace FastLane or FYI. Far from it. GMnext is a conversation focused on the next 100 years – the future of transportation and our role in that future. We still want to talk about things happening today as well, and we’ll continue having those discussions here on FastLane and FYI. The way we see it, opening as many windows for dialogue as possible is a good thing, and we’re looking forward to all of them – not just to mark our centennial, but from here on out going forward.

We hope you’ll be along for the ride. Here’s to the next century.

Posted by Editor at 1:51 PM
Comments (26) | TrackBack | Permalink

October 12, 2007

Over on FYI: OnStar's Stolen Vehicle Slowdown

Check out FYI for a post from OnStar's Chet Huber about Stolen Vehicle Slowdown, the latest from OnStar. -Alicia Dorset, blog editor

Posted by Editor at 12:21 PM
Comments (3) | TrackBack | Permalink

October 4, 2007

On FYI: Why Tom Friedman Is Still Wrong

New York Times columnist Tom Friedman is now disillusioned with Toyota, which only last year he suggested should take over GM, and angry with the rest of the auto industry over pending fuel economy legislation. Take a look at our FYI blog post to read our rebuttal, and let us know what you think.

-- Christopher Barger, Director, GM Global Communications Technology

Posted by Editor at 10:28 AM
Comments (70) | TrackBack | Permalink

September 24, 2007

Labor Situation

By Christopher Barger
Director, GM Global Communications Technology

As you are no doubt aware by now, today the United Auto Workers chose to call a national strike against GM. We've seen a number of comments coming in regarding this situation, and we appreciate the interest and opinions that you, our readers, have about this matter. But as I am sure that you can appreciate, these are sensitive times involving sensitive negotiations; a public blog is not the appropriate place for us to be commenting about them, nor do we think it's constructive to entertain a discussion of labor issues here.

This afternoon, we issued a statement regarding the UAW's decision; to this point, that is our only statement on the topic. Any future comments we have will be issued via press statement, and not here on FastLane. Thanks for understanding.

Posted by Editor at 5:55 PM

September 6, 2007

NY Times Wheels Blog: Wrong about Saturn

By Kyle Johnson
Director, Saturn Communications

There was a puzzling post by Jerry Garrett in the New York Times' "Wheels" blog yesterday. We were puzzled mostly because we were surprised to learn that we were dead, according to Jerry -- "killed off" in some sinister, if wholly imagined, plot. He called us "a different kind of car company, indeed."

Okay, Jerry caught us. We are different. We're not the Saturn we used to be. In fact, we are about to launch our fifth all-new product in the last 18 months – and we have expanded our strong customer treatment programs: no haggle/no hassle pricing, 30 day/1,500 mile exchange program, 24/7 live web chat, at home test drives, just to name a few.

Jerry's main concern seems to be our collaborative relationship with Opel , which baffles us, frankly, because there's not a company out there that doesn't borrow freely from itself when it sees opportunities to improve. And we strongly believe that the Saturn-Opel design and development relationship makes sense for both the European and North American markets, and gives both Saturn and Opel the strongest lineup possible. This kind of globalized product development process is working: Astra, Aura, Sky and Vue are all acclaimed, and Saturn sales are up -- even in a rough year in the overall automotive industry. So what's wrong with that?

Isn't being a good car company supposed to be about having great products and having retailers treat customers well? So why does Jerry think that it's bad that we’ve changed our business model so that we’re bringing better products to the market?

We'll continue our collaborative relationship with Opel. But Saturn is, was always, and will remain a North American company. Saturn and Opel will continue to have unique regional vehicles; you're probably not going to see an Outlook in Europe or a Zafira in North America.

We're confident that if Jerry actually had the opportunity to drive a Saturn -- any Saturn -- he'd think differently about us. By our records, Jerry hasn’t tested a Saturn recently. We'd like to remedy that. So Jerry, what kind of Saturn would you like to drive, and where can we drop it off?

Posted by Editor at 10:00 PM
Comments (80) | TrackBack | Permalink

August 9, 2007

A Little Well-Deserved Recognition

By Jim Bunnell
General Manager, Buick-Pontiac-GMC

It’s nice to know that you do good work and have quality products. It’s even nicer when someone else recognizes just how good you really are.

J.D. Power & Associates came out today with their 2007 Vehicle Dependability Study. In it, J.D. Power recognized Buick as building the most dependable vehicles in the automotive industry. They say that we jumped eight points from third last year (153 ppH) to first (145 ppH), tying Lexus for the best score in the industry. (By the way, “ppH” stands for “problems reported per hundred vehicles; this year’s industry average was 216.)

What’s more, our former Century and Regal models were the top-ranked midsize cars for the second year in a row, and the Rainier was in the top 10 for all trucks in the study.

You might think that this post might sound a little like we’re puffing our chests, but hey – when you do something you’re proud of, there’s nothing wrong with telling people, is there? Especially when it’s not just us saying so, it’s J.D. Power.

Given the ill-informed impressions that can persist about American quality and the snark we sometimes see about our brand (even in some comments on this blog!), I think it’s especially important to point out how industry experts see us.

We at Buick appreciate this recognition by J. D. Power for all the work we’ve done to improve quality and reliability. Our whole team sees this as a milestone – but certainly not the end of our efforts. While we’re justifiably proud of how we rated this year, we want to do even better. We have more work to do. Next year, we want to beat Lexus.

I wouldn’t bet against us.

Posted by Editor at 1:49 PM
Comments (74) | TrackBack | Permalink

June 29, 2007

UPDATE: A Grand Opening

Make sure to check out FYI for a post from GM's Beth Lowery on the opening of a new VE85 pump in Washington, D.C. -Alicia Dorset, blog editor

Posted by Editor at 10:01 AM
Comments (16) | TrackBack | Permalink

June 22, 2007

Update: Tiger Woods and Buick

Make sure to take a look at FYI for today's post by Jim Bunnell, General Manager for Buick/Pontiac/GMC. Jim has an update on the rumors regarding Buick ending its contract with Tiger Woods. -Alicia Dorset, blog editor

Posted by Editor at 4:46 PM
Comments (22) | TrackBack | Permalink

June 5, 2007

Charging Ahead on the Volt

By Denise Gray
Director, Hybrid Energy Storage Systems

Today, we awarded two development contracts for battery technology related to the E-Flex electric architecture that will underpin the Chevy Volt. I’d like to give you a little perspective about what today’s announcement really means.

It demonstrates our seriousness to develop automotive technologies that lower oil consumption, lower oil imports and reduce carbon emissions. It shows that we remain strongly committed to bringing the E-Flex system to production. And it shows real progress in developing the batteries that are necessary to make the Volt an affordable reality. Most of all, it is a commitment by the people at GM to contribute in a meaningful way to the improvement of our planet. I can’t tell you how proud we are of what we are trying to achieve.

We looked at 13 different technical proposals to get to these two, and we’re not done looking yet. Yes, we are looking forward to reaping the benefits of our partnerships with Compact Power Inc. and Continental Automotive Systems, but we’re not stopping there. We expect to award more contracts in the future as we continue our internal engineering efforts to move E-Flex and the Volt toward production.

We still have a lot of work to do to get this technology into people’s driveways. I can’t tell you exactly when that will happen, but I can tell you GM is doing everything possible to turn a fantastic concept car into an even better reality. We’ll continue to keep you posted as we do so, and we hope you’ll continue to let us know how you think we are doing.

You can read more about the companies and their work for us in the press release.

Posted by Editor at 9:38 AM
Comments (105) | TrackBack | Permalink

June 1, 2007

UPDATE: Questioning Our Brand Strategy?

Take a look at FYI for a response posted by Christopher Barger regarding a letter to the editor in USA Today yesterday suggesting GM drop some of its brands. -Alicia Dorset, blog editor

Posted by Editor at 4:33 PM
Comments (31) | TrackBack | Permalink

May 16, 2007

Why 500 Hybrid Buses Make a Difference

By Tom Stephens
GM Group Vice President, Global Powertrain and Global Quality

This morning we announced great news in Seattle: King County has ordered up to 500 new GM hybrid-powered city buses over the next five years. With the 214 buses that have already been operating there since 2004, that could give the county a fleet of 714 GM hybrid-articulated buses, the largest in the world.

Compared to conventional diesel buses, we estimate a hybrid bus fleet that big will save more than 1.1 million gallons of fuel each year and prevent more than 11,300 metric tons of CO2 emissions – and that’s just in King County.

We have been building 2-mode hybrid transmissions for transit buses since 2003, and more than 720 GM-hybrid-powered buses are operating in 56 cities in the U.S. and Canada, including 17 at Yosemite National Park. Not only do the GM hybrid-powered buses in King County get 30 percent better fuel economy than conventional buses, but when they are equipped with diesel particulate filters, the buses also emit less nitrogen oxides, carbon monoxide and total hydrocarbons, according to a report by the National Renewable Energy Laboratory. They’re also quieter than regular buses.

The rest of North America will get a chance to experience a new version of the 2-mode hybrid transmission when we begin selling the Chevy Tahoe and GMC Yukon Hybrid SUVs later this year, followed next year by the Cadillac Escalade, Saturn Vue Green Line, Chevy Silverado and GMC Sierra Crew Cabs. The 2-mode hybrid bus transmission technology is the basis of the 2-mode hybrid transmission for passenger vehicles that we co-developed with DaimlerChrysler and BMW Group, and it will help provide a 25 percent improvement in fuel economy, when combined with Active Fuel Management, over our conventional SUVs.

Now, over the years, we at General Motors have taken a lot of heat from environmental activists. But I personally know that we're committed to energy diversity and displacing petroleum. That’s why we’re initially applying our hybrid technology to the highest-volume, highest consumption vehicles, such as buses, trucks and SUVs.

But hybrids are just one part of a more comprehensive strategy to reduce our energy dependence and impact on the environment. We believe that alternative fuels like E85 will have the largest impact on displacing petroleum and reducing CO2 emissions. And the increased electrification of the automobile through plug-in hybrids, electric vehicle range extenders, like the Volt, and hydrogen fuel cells is also part of the long term solution.

This month we became the first automaker to join the United States Climate Action Partnership. And, in March, Chairman Rick Wagoner told Congress that GM is willing to discuss carbon constraints on the U.S. economy as part of a climate change strategy. Even columnist Thomas L. Friedman of The New York Times — our frequent critic — noticed. In his Sunday column (subscription required) calling on Democrats to develop “a serious energy policy to radically reduce our dependence on oil,” he wrote:

“Finally, in a move that also merits praise, General Motors announced that it was joining other major U.S. corporations, like General Electric, and signing on to the United States Climate Action Partnership (U.S.C.A.P.), which calls for a cap-and-trade program to control carbon dioxide emissions. G.M. is the first auto company to do so.”

RELATED
King County photos on Flickr

Posted by Editor at 1:32 PM
Comments (21) | TrackBack | Permalink

March 20, 2007

Energy Security and Climate Change

What We Believe Will Make a Difference

By Beth Lowery
Vice President, GM Environment and Energy

Rollercoaster-like gas prices, regional conflicts and global climate change have put energy security and environmental issues front and center of the national debate. Reducing gasoline consumption as well as our collective impact on the earth's climate should be national priorities. These, too, are our priorities at GM and we recently told Congress what we're doing to lessen our dependence on petroleum and reduce greenhouse gas emissions.

Last week, Rick Wagoner, GM Chairman and CEO, testified before the US House of Representatives Committee on Energy and Commerce. He was not alone. Other key leaders of the world’s larger auto manufacturers and from the UAW also provided testimony ranging from product plans centered on advanced technology, biofuels, and the effectiveness of the three-decade old Corporate Average Fuel Economy Program (CAFE).

The hearing was a good opportunity to dispel a couple long-time myths.

Myth 1: GM really doesn't care about the environment.

This view — a favorite of our skeptics — is simply wrong. Before the Congress, Rick Wagoner repeated our commitment to develop new vehicles, powered by new systems running on alternative fuels as the only way we'll be able to grow our business and meet the world's growing energy demands. Yes, it's a pure business necessity, but, as Rick Wagoner also indicated, we believe that it is the company's obligation to society, too.

The billions of dollars that GM will invest over the next few years is putting our "money where our mouth is." We’re applying a broad range of technologies aimed at improving fuel economy going forward. We’re also big supporters of biofuels as the best near-term opportunity for reducing gasoline consumption, oil imports, and greenhouse gas emissions. To this end, we have more than 2 million FlexFuel vehicles on the road that run on E85 ethanol and are working with various partners to resolve E85 supply and distribution constraints. We’re making a major commitment to electrically driven vehicles, including development of plug-in hybrids, fuel cell vehicles like the Chevy Sequel concept, and range-extended electric vehicles like the Chevy Volt.

Myth 2: The CAFE program works.

This one is also wrong — really wrong.

The original intent of the CAFE program, enacted over 30 years ago, was to reduce U.S. gasoline consumption and oil imports.

However, because the number of vehicles on the road has nearly doubled since then and the total number of vehicle miles traveled has also nearly doubled… U.S. gasoline consumption has increased by 60 percent, and U.S. oil imports have increased by more than 100 percent.

These increases occurred despite the fact that automakers as a whole have increased new vehicle fleet fuel economy for light trucks by 60 percent, and more than doubled it for passenger cars. During this time, GM has improved its fuel economy more than any other major auto manufacturer.

So, how would a 4 percent-per-year increase in CAFE measure up? According to the Administration’s analysis, such an increase would save 8.5 billion gallons of gasoline annually by 2017… less than half of the projected growth in American oil consumption. In other words, even with this proposed CAFE increase, America will still be using — and most likely importing — more oil than ever, as well as producing more CO2 emissions.

On the other hand, if all of the E85 capable vehicles on the road today… along with those that GM, Ford, and DaimlerChrysler have already committed to produce over the next 10 years… were to run on E85, we could displace 22 billion gallons of gasoline annually. And if all manufacturers made the same commitment, we could increase the savings to 37 billion gallons of gasoline annually.

That’s more than quadruple the savings that a 4 percent per year CAFE increase would achieve… and, very importantly, enough to actually reduce America’s oil consumption by more than 10 percent versus today’s levels, and CO2 emissions, as well.

Clearly there are better solutions than CAFE increases. GM believes these solutions are within our grasp and that's where we're investing our time, money and resources — on things that will make a difference. The question is whether people are ready to move away from approaches that haven't delivered results in 30 years. We hope so. Now is the time to seriously look at ways to reduce U.S. gasoline consumption and oil imports and address the critical challenges presented by CO2 emissions and GM plans to play a lead role in putting these solutions in the marketplace.

Posted by Editor at 10:19 AM
Comments (61) | TrackBack | Permalink

March 9, 2007

Changing Perceptions

A Progress Report on GM’s Turnaround

By Steve Harris
Vice President GM Global Communications

A big part of a accomplishing a corporate turnaround is changing people’s perception. It wasn’t long ago when it was tough to find a story about General Motors that didn’t mention the possibility of bankruptcy — a possibility that we were never willing to entertain. Instead, we’ve been working on quality, innovation and design; improving our products and cutting our costs. The signs are visible in our showrooms, in our new concept vehicles and our new fuel efficient vehicles.

And it’s begun to pay off. Yesterday, Rasmussen Reports released a poll indicating that GM is viewed favorably by 69 percent of Americans. Fortune magazine also reported on “America’s Most Admired Companies” and GM moved up significantly in all categories of performance and jumped from ninth to fifth in overall rankings. If this were a political campaign, this shift would be all over the news — it's huge. We still have a long road ahead of us, but we’re gratified to know that we’re gaining ground where it counts. But there’s no time to stop and enjoy it. There’s a lot more work to do.

Posted by Editor at 10:32 AM
Comments (52) | TrackBack | Permalink

March 7, 2007

Chevy Leads the Charge for GM in February

By Ed Peper
Chevrolet General Manager

Wow — what a month and what a great start to 2007! As most of you already know, our February sales results have come in and we surprised a lot of people out there — except ourselves.

The Chevrolet brand was #1 in America for the month — and there’s no question that feels good. The hard work and better planning with our dealers is paying off, starting with our first big promotion of the year with last month’s President’s Day event.

The numbers are all the proof we need — Chevrolet posted total sales of 187,088 deliveries in February 2007, up 5.3% over February 2006. Our retail delivery gains were even stronger, with sales up 10.1% in February 2007 versus last year.

Silverado led the parade of Chevy vehicles that turned in strong performances last month.

• In February 2007, Silverado posted 58,696 total sales, up 26.5% versus last year.
  
  -Last month was Silverado's best total and retail sales for the month of February in five years (since February 2002).
  
  -Silverado retail sales were up 34% last month versus February 2006.
  
  -Since the start of the launch of our all-new truck, Silverado total sales are up 26,035 deliveries (October 2006 to Feb. 2007 vs. prior year).
  
  -Silverado outsold Ford F-Series in February 2007.
  
  
• The Avalanche continued its growth streak by posting a 109.7% retail sales increase. This was the seventh month in a row that Avalanche has posted a year-over-year retail sales increase.
  
• Impala continued to rock by turning in a 65.1% retail sales increase. This was the 11th month in a row that Impala has posted a year-over-year retail sales increase.
  
• Suburban posted a year-over-year retail sales increase of 29.3%.
  
• HHR posted a year-over-year retail sales increase of 21.2%.
  
• Aveo posted a year-over-year retail sales increase of 17.2%.
  
• Colorado posted a year-over-year retail sales increase of 12.5%.
  
• TrailBlazer posted a year-over-year retail sales increase of 8.9%.

This type of improvement sends some clear messages — that introducing new and exciting products, then marketing and selling them in a well-planned manner results in success. Even those products that are further into their lifecycle continue to show improvements — a testament to both the lasting design and capability of the product and to our field teams who market, sell and service them.

Chevy led the charge this month for GM — but these things are happening across the company. The momentum is there, and we fully intend to build on it and continue to improve.

Posted by Editor at 3:47 PM
Comments (35) | TrackBack | Permalink

February 23, 2007

Why There's No GM Comment About Chrysler

By Steve Harris
Vice President, GM Global Communications

I know from your comments that a lot of you would like to hear our side of what's going on behind all the media reports suggesting there could be a link-up of GM and the Chrysler Division of DCX.

The announcement by Daimler-Chrysler on February 14 that "all options are on the table" regarding the future of the Chrysler Division certainly set off a firestorm of stories, studies and speculation by media, analysts and bloggers.

Commenting on hot news events and speculating about the future is the lifeblood of most blogs. In this case, GM has good reasons for declining to comment or speculate on any discussions we might be having with DCX about Chrysler.

The reason is simple: GM and other car makers frequently discuss issues of mutual interest. In most cases, these discussions don't lead anywhere. So as a matter of policy, the company doesn't confirm or comment publicly on these types of discussions unless and until it's determined that disclosure is appropriate.

I love a good online discussion as much as anyone. But, as a spokesman for GM, I must do what is best for the company. And in this case, it means continuing to decline comment on this issue.

Posted by Editor at 3:12 PM
Comments (47) | TrackBack | Permalink

February 2, 2007

GM Warranty Gets Better

By Brian McVeigh
General Manager, Fleet and Commercial Operations

I’m out in Las Vegas at the annual conference of the National Automobile Dealers Association — some of the most important people in our business. It’s always great to be with our dealer partners, because they aren’t shy about sharing their opinions with auto manufacturers. Plus they get direct input from car buyers. Today, General Motors North American President, Troy Clarke, was able to deliver some great news to them that will help improve car buyers’ opinions of GM vehicles.

We announced that beginning March 5, GM will offer its limited powertrain warranty and 24-hour roadside assistance for 100,000 miles or five years (whichever comes first) on all 2002-2006 Certified Used Vehicles from Chevrolet, GMC, Pontiac, Buick and Oldsmobile. This warranty is fully transferable, has no deductible and covers over 900 powertrain-related components. It also includes a limited bumper-to-bumper warranty for 3-months or 3,000 miles (whichever comes first).

Those of you who have been following GM’s recent warranty enhancements will notice that the Certified vehicle warranty Troy announced today has many features in common with the new vehicle warranty we announced last year. That’s right... the industry’s top-selling certified used vehicle program now includes many of the same features as GM’s exceptional new vehicle coverage.

Saturn is expected to have a similar program for its Certified vehicles later this year. Cadillac, Saab and Hummer will continue to operate their existing Certified vehicle warranty programs, all of which feature a 6-year/100,000-mile bumper-to-bumper limited warranty effective from the vehicle’s in-service date.

Our customers expect quality. We hear you, and we’re delivering it. A quick look at a number of important measures — including initial quality, customer satisfaction, manufacturing quality and long-term vehicle quality — shows that GM has continued to improve over the past several years. The reliability-related awards we have been winning regularly are further proof of that.

The people of GM have great confidence in the quality of our vehicles. Extending the warranty coverage on our Certified Used Vehicles is just another statement of that confidence. And it’s another way for GM to deliver the best value to consumers throughout their vehicle ownership experience. Once you’ve tried one, you’ll see what I mean.

Take a look at this site to learn more about GM’s Certified Used Vehicles, locate the nearest GM Certified dealer or search our inventory of over 60,000 Certified vehicles.

Posted by Editor at 5:04 PM
Comments (35) | TrackBack | Permalink

January 31, 2007

Take an inside look at Chevy’s Super Bowl College Ad Challenge

By Ed Peper
General Manager, Chevrolet

You can now go behind the scenes of the "Chevy Super Bowl College Ad Challenge," in which more than 820 college teams registered for the opportunity to have their ad concept made into one of Chevrolet's 2007 Super Bowl commercials. Check out the five finalists on webisodes as they travel from their hometowns to Detroit to make "the pitch."

The webisodes will show the students driving the Chevy vehicles featured in their ads (the Aveo, Cobalt, Equinox, and HHR), refining their presentations with advertising professionals and presenting their ad concepts to Chevy executives.

The Chevy Super Bowl Ad Challenge then goes "primetime" on CBS's annual "Super Bowl's Greatest Commercials 2007" special, which airs on Friday, Feb. 2 (9 p.m. ET). The winning team will be revealed during the special, and viewers will be able to see more behind-the-scenes footage of the competition.

Go to CBS.com/chevy to view the five finalist webisodes, and tune in to watch the winning team’s ad along with 90 million viewers during Super Bowl XLI!

Posted by Editor at 1:08 PM
Comments (7) | TrackBack | Permalink

January 29, 2007

What’s Next: www.igotshotgun.com

By Steve Harris
GM VP, Global Communications

For nearly a century, GM has played a big role in the lives of millions worldwide by providing personal transportation. We’ve also played a significant role in sponsoring some of the biggest sports, entertainment and pop-culture events in the world. Most people have only experienced these events through the media, and only a select few have ever been “backstage.”

So today, we’re launching a new consumer-driven web experience called igotshotgun. It takes people behind the scenes for an inside look at cars, culture and entertainment through the eyes of everyday consumers and a few special celebrity guests.

The site is being launched to extend the tremendous reach and access of GM’s sponsorships. It will include a mix of professionally-produced video content and first-hand perspectives from real people picked to join us on the scene. We’re setting out to give people the memorable experience of “riding shotgun” with GM as a video blogger and commentator at these events.

You can apply for a chance to participate as a crew member by submitting your own video showing us how you'd ride shotgun on the pop culture scene.

The call for crew members is currently underway at www.igotshotgun.com. Look for coverage from Super Bowl week in Miami and the Grammy Awards in February. As you check out igotshotgun content, you may be surprised that GM is producing this, and that’s exactly the point.

I look forward to hearing your feedback.

Take a look at this video from Alison Speranza as she chats with the band Radiant, just before a performance in Times Square.

Posted by Editor at 5:59 PM
Comments (19) | TrackBack | Permalink

December 22, 2006

Season’s Rantings

By Bob Lutz
GM Vice Chairman

Hello, everyone. The original purpose of the post was to send the warmest of season’s greetings to all of you, and wish you a happy and healthy 2007. But, as usual, there’s more on my mind than that.

So while the holiday greetings from us to you are first and foremost and sincere, I also feel the need to comment on recent talk centering on possible revisions to the government’s Corporate Average Fuel Economy (CAFE) standards. There is now a team of "independent CEOs", most of them in the transportation business, that has recommended a 4% per year increase in the standard.

My feelings on CAFE are well-known; I’m the guy on record who compared forcing automakers to sell smaller cars to improve fuel economy with fighting the nation’s obesity problem by forcing clothing manufacturers to sell garments in only small sizes.

So it’s no surprise to most that I fail to see the wisdom, or the fairness, in this particular recommendation. For one thing, it puts us, the domestic manufacturers, at odds with the desires of most of our customers, namely larger vehicles that we wouldn’t be able to supply in the numbers needed.

That effectively hands the truck and SUV market over to the imports, particularly the Japanese, who have earned years of accumulated credits from their fleets of formerly very small cars. They can afford to go bigger, which they’re doing now by the way, and they’d be able to move up and fill the segments we’d be forced to vacate.

There is no technological bag of tricks that enables much better fuel economy than we have today. We already have maximum aerodynamics, active fuel management, six-speed transmissions, electric power steering, direct injection, and hundreds of dollars (per vehicle) of other technology that saves a tenth of a mile per gallon here, two-tenths there. Despite what alarmists may think, we don’t have any magic 100-mpg carburetor that we’re holding back because we’re in bed with the oil companies.

We are working daily toward real alternative fuel solutions to reduce our dependence on petroleum, using the most advanced technologies available, and some that haven’t even been invented yet. Stay tuned for the North American International Auto Show in Detroit in January to hear more of what we’ve been up to in this area.

In the meantime, and I’ve said it before, the most effective way to drive market behavior is through the market mechanism; we saw the quick move to smaller vehicles when gas hit $3-plus recently. While I'm not advocating higher fuel prices, we have to face it: The reason Europeans drive very small cars is that gasoline costs so much more. That’s what the market demands there, and that’s what we provide.

Higher gas prices have done dramatically more to reshape consumer buying trends than any regulation. As long as it's around $2/gallon here, people will exercise their freedom to buy the vehicle they want, V8 engine and all. Forcing us to alter the fleets to hit some theoretical average won’t change what consumers want, or what they’ll buy.

The real way to save fuel is the widespread adoption of bio-fuels, produced domestically, like E-85 ethanol (GM is the world's largest producer of cars and trucks capable of running on domestically produced bio-fuels) and the pursuit of the electrification of the automobile, as announced by Rick Wagoner in L.A. recently, such as in plug-in hybrids, fuel cell electric cars and other electrical technologies. The Japanese government is spending huge amounts on advanced battery research. It would be nice if our government would do the same.

Posted by Editor at 4:24 PM
Comments (146) | TrackBack | Permalink

More on Buick in China

By Steve Shannon
General Manager, Buick

It’s great to read all your comments about Buick and its rich heritage for styling and innovation. It’s funny, I was writing about just one aspect of Buick’s business — China — and it appears that many are not that familiar with what is going on in the U.S.

Since 2004, we have been steadily rebuilding the Buick brand, brick by brick, with vastly improved products that signal a renewal of Buick in the U.S.

Last month, Buick introduced the most significant product in recent memory — the 2008 Enclave luxury crossover SUV. The Enclave is Buick’s first luxury crossover and it is the perfect vehicle for the times. It has all the versatility, functionality, and roominess of a sport utility and the ride dynamics of a high-end luxury car. Then we add what I call the ‘Buickness’. The Enclave is library quiet, has a level of interior comfort and craftsmanship not witnessed in the segment, offers luxury-like features like a rear back-up camera and HID headlights that turn with the wheel, and technologies that are relevant and easy to use such as OnStar and XM Radio. This is all shrink-wrapped in a gorgeous exterior that’s romantic and timeless. We hear you on styling! Check out the Enclave!

The Lucerne has also been a key to this renaissance of Buick we are enjoying now. The Lucerne is selling strongly, and its beautiful lines are attracting some interesting tuners and customizers, like this one from Rick Bottom. We had eleven different tuners go at the Lucerne at the annual SEMA Show in Las Vegas and the results were nothing short of amazing. Even for me.

We know we cannot let up, and we won’t. It is good to know that there are others out there who understand and appreciate what Buick stands for. Thanks for your comments. Please keep them coming.

Posted by Editor at 3:45 PM
Comments (25) | TrackBack | Permalink

December 21, 2006

MARK PHELAN: Electric car killer?

Take a look at FYI for an article by Mark Phelan, Detroit Free Press automotive critic, on GM and the EV1, and introduction by GM's Brian Akre.

-Alicia Dorset

Posted by Editor at 9:09 AM
Comments (12) | TrackBack | Permalink

December 11, 2006

Buick Is Popular in China?

By Steve Shannon
General Manager, Buick

Have you been to Shanghai lately? It’s a young, vibrant, dynamic and technologically advanced city. And, believe it or not, it’s also a city where Buick is a very popular brand.

Few of us think of Buicks being sold anywhere but in the U.S, because Buick is seen as a distinctly American brand. However, Buick is one of the best selling auto brands in Shanghai and in China as a whole.

But that shouldn’t be surprising. After all, Buicks have been on the streets of Shanghai since about 1912. And one story suggests the Chinese were interested in Buick as early as 1906. A Motor Age article that year reports that two men attempting to set a transcontinental speed record in a Buick Model F were doing so in the interests of Yuan Shai Kai, viceroy of a Chinese province, who was interested in introducing the vehicle into China “if they come up to expectations.”

To respond to growing demand for its products, Buick opened a sales office in Shanghai in 1929, and a 1930 Buick advertisement claimed that “one out of every six cars [in China] is a Buick,” and that “Buick owners are mostly the leading men in China.” It has been confirmed that Pu Yi, China’s last emperor, owned at least one Buick in the 1920s.

In addition to Pu Yi, at least two other major Chinese political figures were identified with Buicks in the early 20th century: Sun Yatsen, first provisional leader of the Chinese Republic, was photographed in a Buick in Shanghai in 1912; and Zhou En-Lai, a popular president of more recent times, kept a 1941 Buick at his home at Shanghai.

The relationship between Buick and China goes far beyond sales figures and dignitaries though. GM and Shanghai Automotive Industry Corporation (SAIC) signed a joint venture agreement on March 25, 1997, in China’s Great Hall of the People. A plant was built, and the first Chinese Buick was driven off the assembly line on Dec. 17, 1998.

A 2001 survey found that Buick had a brand familiarity rating of more than 85 percent in China. Perhaps that’s why a recent article pointed out that Buick has been Shanghai GM's passenger car leader since the first Regal came off the Shanghai GM line.

So, yes, the young and hip in Shanghai have made Buick popular there, and sales are strong throughout China. We at Buick are really proud of that.

Posted by Editor at 2:12 PM
Comments (37) | TrackBack | Permalink

December 7, 2006

Whither the Minivan?

By Bob Lutz
GM Vice Chairman

Lots of minivan talk going on… let me just make one thing clear: Nobody said GM is getting out of the minivan business forever. We simply pulled a minivan option out of the running for one of our architectures. We reserve the right to initiate whatever future product programs we feel the market desires, up to and including new generations of minivans if we deem them necessary and desirable.

That’s really the key to everything, of course: the market. And we think the case for another new entry at this point in a market that is trending away from minivans just doesn't make a lot of sense.

Look, the minivan was a great idea, and a fine product. It pulled Chrysler out of the frying pan during some desperate times. But obviously in recent years a stigma has attached itself to the minivan and won’t let go. Same thing happened to station wagons in this country before the minivan came along.

And beyond that stigma, the minivan is hurt by the many other choices available to customers. SUVs have been conquesting minivan sales for years, and now crossovers will take even more.

Our new crossover utilities — the GMC Acadia, Saturn Outlook and Buick Enclave — should not be compared to minivans; they are a totally different animal. But do we expect them to take sales from minivans? Absolutely. Just like we expect them to take sales from traditional SUVs.

These vehicles can carry eight people comfortably, have plenty of hauling space, and have a fuel-efficient 275-hp V6. And they have better road manners and vehicle dynamics than any minivan I’ve ever driven. Not that I’m comparing. But if I were, I know what would win!

These three crossovers will do nicely in the market for us, I believe, and, for now, we don’t see the need to offer minivans any longer, for many reasons. Do you?

Posted by Lutz at 4:13 PM
Comments (123) | TrackBack | Permalink

October 2, 2006

The Hannity Debate

Editor's note: A recent GM promotion on Sean Hannity's radio program generated quite a bit of interest in the Internet community. While there has been an overwhelming positive response to this promotion, a few others have raised a concern. This is the response we posted on the web site that first raised the issue:

Okay, you have our attention!

Since the posting on your site about the Sean Hannity show, we have received hundreds of emails, phone calls, etc., with your opinions.

To clarify, we didn't hire Mr. Hannity as a spokesperson and he is not receiving compensation from GM for thispromotion. What we are doing is running a promotion on his show where Mr. Hannity is featuring three of
our newest products every week and listeners can register to win their choice of the three vehicles.

As the head of Sales and Marketing for GM, my job is not to create political controversy but preferably to create interest in our world-class lineup of vehicles. Looks like we are doing a bit of both with this promotion.

GM is the biggest advertiser in America and to tell our story we advertise across a tremendously wide array of media trying to connect with all Americans irrespective of ethnic, religious or political affiliations. We just want folks to experience our products.

We want to reach you on the shows you listen to. Below is my email address. Please let me know the shows where you would like to hear or see our advertising — perhaps even a similar promotion to the one
currently being run on Hannity. We may already be on many of the programs that you enjoy. If not, we will sure look at them. Also, if you are interested in hearing more about any of our new products or our business turnaround, we will be happy to address that as well.

I appreciate your views and I welcome your suggestions.

Mark LaNeve
GM Vice President Sales and Marketing
Phone number: (313) 665-1357
email address: laneve@gm.com

Posted by Editor at 3:01 PM
Comments (69) | TrackBack | Permalink

September 18, 2006

GM’s Doing as Much as Any Automaker to Reduce Oil Dependence

(Editor’s note: Journalist Derrick Jackson of The Boston Globe recently attacked Detroit’s automakers in his syndicated column. Below is our response. We submitted this to the Globe, but the newspaper declined to run it, citing its policy of not accepting op/eds that respond to Globe columns. The Globe did run a much shorter version of this response in their letters to the editor column Saturday (Sept. 16). We asked that they include this blog’s address at the end of the letter, so their readers could see the full text. They declined. The Miami Herald also ran the Jackson column, and also declined to run our response. Fortunately, our blogs give us a chance to give you the full story, from our point of view, and expand the debate beyond the Globe’s op/ed page. Let us know what you think.)

By Steven J. Harris
Vice President, Global Communications

If Derrick Jackson truly believes that you can learn “everything you need to know about American automakers” by reading four newspaper clippings, perhaps he should consider another line of work. That kind of half-baked research leads to half-baked columns, like the one The Boston Globe published Sept. 2.

General Motors is working hard to build a stronger America that’s less dependent on oil, and we’re making significant progress. What we don’t appreciate is the kind of cynical propaganda that Mr. Jackson has engaged in recently, which seeks to portray Detroit automakers as buffoons and our Japanese competitors as flawless. It’s almost as if he wants the U.S. auto industry to fail. Why?

We agree with him that this nation needs to reduce its dependence on oil. GM is doing as much or more than any automaker to address this issue, from making our gasoline engines more fuel-efficient with new technologies, to producing cars and trucks that can run on ethanol-based fuel, to investing heavily in hybrid and fuel-cell powertrains.

GM also is well-positioned for the shift to more fuel-efficient cars and crossover vehicles. In fact, GM offers more vehicles that are EPA-rated at 30 mpg or better on the highway than any other automaker. More than Toyota, Honda or Nissan.

So far this year, Americans have bought more than 865,000 of our 30-mpg-or-better cars. Our new full-size SUVs that Mr. Jackson disparages also are selling well, in part because they have better EPA highway-mileage estimates than any of the competing SUVs offered by Toyota, Nissan, Mercedes-Benz, Lexus and Ford.

Here are some other pertinent facts that Mr. Jackson chose to ignore:

• Last year’s top-selling subcompact was the fuel-stingy Chevy Aveo, and an all-new ’07 Aveo sedan has just debuted. Honda and Nissan just recently entered this growing segment, and Toyota just re-entered it after pulling its previous entry out of the U.S. market due to poor sales.
• The recently introduced Saturn Vue Green Line hybrid offers the best highway fuel economy of any SUV (EPA rated at 32 mpg) at a price significantly less than its hybrid competitors. The Vue is one of a dozen hybrid vehicles that GM will launch in the next few years.
• GM has put 478 GM-powered hybrid public transit buses on the streets of 39 cities in the United States and Canada over the past few years. They’re saving thousands of gallons of fuel every week.
• GM recently announced a new V-8 turbo-diesel engine that will improve engine fuel efficiency by 25 percent for our future light duty trucks sold in North America.
• GM is investing heavily in the one technology that promises to end our dependence on oil forever: fuel cells. We’ve made incredible progress in driving down the cost of this technology to make it practical. We just announced plans to build and deploy a demonstration fleet of more than 100 Chevrolet Equinox fuel cell vehicles starting in fall 2007.
• GM has put more than 2 million vehicles on the road that are capable of running on E85, and is working with distributors and government to increase the number of service stations that offer this ethanol-based alternative fuel.
• Toyota’s growth in the United States over the past decade has come primarily from expanding its vehicle lineup into the pickup and SUV segments that Mr. Jackson finds so offensive. In many of those segments, Toyota’s offerings get worse mileage than GM’s. Toyota also is building a new plant in Texas to build more full-size pickups, not more hybrids.
• The new Chevy Camaro will join the Ford Mustang and Dodge Challenger in the well-established performance car segment. As much as Mr. Jackson may find no appeal in a stylish, high-performance coupe, millions of Americans do and have passionately urged GM to bring back the Camaro. We would be foolish not to meet that demand. By the way, Honda and Toyota apparently agree: Both Japanese automakers reportedly are working on their own high-performance sports cars for the U.S. market.
• Mercedes-Benz, Toyota, Lexus, Nissan and Land Rover also offer full-size or large luxury SUVs. They do so because there’s significant demand and these are some of the most profitable vehicles in the U.S. market. For those with large families and a boat or trailer to tow, the Chevy Suburban is practical option. You can’t tow a boat or haul a family of six with its camping gear in a Toyota Prius.

Ultimately, consumers decide what they will buy based on their own calculation of their needs, desires and budgets.

For those who want fuel-efficient small cars, GM offers them. For those who have a need for a full-size SUV and want the one that has the best fuel economy and can run on E85, we offer those. For those looking for a hybrid, we’ve got those, too.

If all Mr. Jackson is seeing from Detroit are “metallic mastodons,” perhaps he ought to get out of his office and visit a GM dealership. Or at least read more than four articles. He might find it enlightening.

Posted by Editor at 12:21 PM
Comments (66) | TrackBack | Permalink

July 28, 2006

Turnaround Momentum Drives GM in the Right Direction

Editor's note: While FastLane is typically dedicated to discussion about GM products and services, Chairman and CEO Rick Wagoner has chosen to use this forum to update you on GM's turnaround progress.

By Rick Wagoner
Chairman and CEO

As I commented to financial journalists earlier this week, conventional wisdom holds that you can’t turn a ship as big as GM around quickly. We aim to prove that conventional wisdom wrong.

Our second quarter earnings report pleasantly surprised a lot of folks who are following GM’s turnaround progress in North America. Even some of our harshest critics were impressed.

Putting the financial mumbo-jumbo aside, what the numbers show is that our turnaround plan for North America is well on track and building momentum.

Lots more hard work and several big challenges remain in front of us, but I’m pleased with how much already has been accomplished in the past year. I’m very appreciative of GM’s employees, unions, dealers, suppliers and stockholders’ willingness to pitch in and help get the business back on track. It’s just starting to pay off.

You may have seen some headlines that said GM reported a net loss of $3.2 billion for the second quarter. That’s true. We booked several “special items,” which included a one-time $3.7 billion charge related to our successful hourly employee attrition program. A total of 34,400 employees took advantage of the buyouts, which are intended to help them make the transition to another line of work or early retirement.

Beyond cutting costs, we need to keep up our recent momentum in growing revenue with exciting cars and trucks. Based on the new vehicles in our “product pipeline,” there are plenty of reasons to be optimistic on that front as well.

Although it hasn’t been fully recognized yet in the business media, there are strong signs that GM’s already well on the way toward a product-led resurgence.

Dig into our most recent sales results, and you’ll see that in June our retail sales and market share were the strongest they’ve been all year. Our newly launched vehicles are selling very well, led by our new full-size SUVs, the Chevy Impala and HHR and Pontiac G6. The hot Pontiac Solstice and Saturn Sky roadsters are essentially sold out for this year.

The Saturn Aura midsize sedan and Saturn Outlook and GMC Acadia crossovers, our new full-size Chevy Silverado and GMC Sierra pickups, as well as the Saturn Vue Green Line — the nation’s most affordable hybrid SUV — will all debut through the second half of this year, and help build upon this recent growth.

Sometimes lost in all the attention paid to GM’s challenges in North America is the remarkable progress we’re making in the major growth markets elsewhere in the world. Our sales in Europe are strong and earnings there continue to rise. Our region that includes Latin America, Africa and the Mideast also has grown significantly; its earnings more than quadrupled in the second quarter versus a year ago. And in the Asia Pacific region, we continue to lead in the world’s fastest-growing market, China, and to rapidly expand sales at GM Daewoo in Korea.

We recognize that our most recent financial and sales numbers, while promising, aren’t enough to declare our turnaround a success quite yet. But we know what has to be done to get our North American business back on a solid footing, and we’re doing it.

Posted by Editor at 12:46 PM
Comments (113) |