FastLane

By Mark LaNeve
GM Vice President, North American Vehicle Sales, Service and Marketing

Here I am, working “virtually” at home, recovering from hip replacement surgery, paying the price for an old football injury. On TV, I’m watching the action in Washington, listening to speeches based on outdated perceptions that persist among some of our most experienced leaders and media pundits. Apparently, many of them haven’t been into a GM showroom lately, talked to our customers, or driven our vehicles. In some ways, GM and I are both paying the price for some old injuries.

But change is upon us, and the news from J.D. Power today tells us that every GM brand scored above industry average in their latest Sales Satisfaction Index (SSI) Study. We continue to improve, and our dealers are providing the best service to customers in the industry — better than the imports, I might add.

Sure, between 2002 – 2006 General Motors reduced its warranty repairs by 40 percent … then reduced repairs again in 2006 and 2007 by about 14 percent, consecutively. We’re on track to do the same thing in 2008. That’s a testament to our quality. But if you asked a lot of folks today, they’d tell you about the problems they had, and won’t forgive, from plus-20 years past on their 1982 Oldsmobile.

Let’s look at today’s reality. In its launch year, the Chevrolet Malibu led the ultra-competitive midsize segment in the 2008 J.D. Power and Associates Initial Quality Study, which is unprecedented in the industry. The Malibu’s performance far exceeded that of both Honda and Toyota in the same segment. Chevrolet, Cadillac, Pontiac and Buick, which represent 82 percent of the cars and trucks we sell ranked above industry average in the 2008 J.D. Power and Associates Initial Quality Study. You might be surprised to find that all of our eight brands in today’s SSI study – Chevrolet, Buick, Pontiac, GMC, Saturn, Hummer, Saab and Cadillac – ranked above industry average. That’s right, not just our luxury brands, but every brand. I’m not surprised because I know that we have the best dealers in the industry. Most importantly, our customers know it too. Think about this for a moment, for all the worry and purchase anxiety that some customers walk into any dealership with, if it was a GM franchise, they walked out more satisfied than most who went into competing dealerships. To me, that proves we offer vehicles of a better value, delivered by salespeople who demonstrate a commitment to a quality sales and service experience.

To all of our GM dealers who contributed to these great results, good job and keep it up. To everyone in the market looking for a great new car or truck, stop in to your nearest GM dealer and test one of our 20 cars that get 30 mpg or more. Try out the segment-leading Chevrolet Malibu, or take your pick from six new hybrids or many other superb products.

To paraphrase a popular lyric today “what don’t kill me will make me stronger,” so heads-up pundits!

I feel a second-half comeback coming on…

As the debate continues in Washington (and online) about whether to support the domestic auto industry with bridge loans, we’re consistently amazed at the extent to which people cling to myths about the “Detroit” industry.  The Detroit Free Press yesterday did an excellent job of shooting down some of the most pervasive myths — about demand for US vehicles, quality, fuel efficiency and more — and we thought you should see it.  We thought that facts might be an interesting addition to the discussion.”  - Christopher Barger, Director Global Communications Technology, General Motors

Dear Mr. Friedman:

On Meet the Press you said, “So, show me a plan…” on why GM should receive government aid to bridge the current global financial crisis. We’ve invited you repeatedly to visit General Motors and see firsthand all we are doing to transform our business and develop new, energy-saving technologies.

We’re disappointed you still haven’t taken us up on our offer. You would be surprised at what you’re missing:

• A leaner company that has reduced its annual structural costs in North American by 23 percent, or $9 billion, since 2005, and are on track to reduce them by about 35 percent, or $14-$15 billion, by 2010. We also negotiated a landmark labor agreement with the UAW last year that will enable us to virtually erase the competitive gap we’ve had with foreign automakers.
• Award-winning products in the Chevy Malibu and Cadillac CTS, (Motor Trend magazine’s 2008 Car of the Year). The Chevy Malibu beats the Toyota Camry in highway mileage, and was recently ranked the highest in initial quality in the midsize car segment by J.D. Power & Associates.

In fact, 13 of our last 15 new product launches in the U.S. were cars or crossovers, and 18 of our next 19 new products will be, as well. Mr. Friedman, we also think you’ll be particularly interested in the huge progress we are making to develop a broad range of advanced propulsion technologies.

• For 2009, GM will offer 20 models in the U.S. that get 30 miles per gallon or better on the highway –twice our nearest competitor.
• We now sell six hybrid vehicles, with three more on the way by the middle of next year.
• We have more than three million flex-fuel vehicles on the road in the U.S., which are capable of running on bio-fuels like ethanol and we are committed to making 50 percent of our annual production flex-fuel capable by 2012.
• We’ve established the world’s largest fuel-cell test fleet by placing more than 100 Chevy Equinox Fuel Cell vehicles in the hands of U.S. drivers.
• And perhaps most important, we’re running all-out to get the Chevy Volt extended range electric vehicle to market as soon as possible. When running off its battery, the Volt will be able to drive up to 40 miles–more than the average daily commute for over three-quarters of Americans–without using a drop of gas.

Mr. Friedman, what exposes us to failure now is not our product lineup, or our business plan, or our long-term strategy. What exposes us to failure now is the global financial crisis. Please know that you have an open invitation to come and visit GM. We’ll be happy to brief you and we’ll even show you the cool stuff. Please give us a call. We’re looking forward to your visit.

Sincerely,

Steven J. Harris
GM Vice President, Global Communications

Editor’s Note: New York Times columnist Thomas L. Friedman has written frequently about the US auto industry and appears regularly on NBC’s Meet the Press.

Former House Majority Leader Richard Gephardt has weighed in on Friedman’s latest column Check out his reponse here.

By Jocelyn K. Allen
Director of Public Affairs and Corporate Communications, OnStar

As we gear up for America’s busiest travel week of the year, OnStar will be making a significant safety announcement tomorrow: the 100,000th automatic crash response. OnStar President Chet Huber will be hosting an online press conference about the announcement, and will be joined by families whose lives have been saved by OnStar’s automatic crash response, as well as by first responders and medical professionals who have been on the scene of these crashes.

Please visit onstar.com Tuesday, Nov. 18, after 6 p.m. Eastern to hear the press conference.

Today, Peter D. Hart Research Associates released a poll taken this week to gauge public opinion about federal assistance to U.S. automakers. The results show that a majority of Americans – 55 percent - believe that the U.S. government should aid the automakers, while only 30 percent oppose such assistance. The poll also reveals that when respondents learned some basic facts about the role that the automakers play in the U.S. economy, 76 percent of respondents predicted that the collapse of the auto industry would be “extremely likely” or “very likely” to trigger an economic depression.

While we find these numbers sobering, we are heartened to see that Americans understand the impact and importance of our industry. We also understand that people expect us to be accountable for the assistance we receive. With 84 percent of respondents saying that the collapse of the domestic auto industry would harm the U.S. economy, we know that this issue is a very important one for the American public right now. Please feel free to share these results with anyone you know who would like to gain a better understanding of the current crisis. - Christopher Barger, Director, Global Communications Technology

You see a lot of discussion in the news – and even in the comments of this and other blogs – about the state of the domestic auto industry and what the current economy means for the industry’s future. Some of you have even expressed the belief that this is something GM and the US industry brought on ourselves, and that the domestic industry should be allowed to fail. “So what if Detroit goes down,” the thinking seems to go. “It doesn’t affect me.” However, the reality may very well be that it does affect you.

The Center for Automotive Research has just released a study that examines the potential ramifications of two scenarios involving significant downsizing of the Big Three, and what such a development could mean to the larger economy. We didn’t write or fund this report… but we thought that you should see it, because it might make you think of things you hadn’t before. - Christopher Barger, Director, Global Communications Technology

By Gary L. Cowger
Group Vice President, Global Manufacturing and Labor Relations

Solar power. Landfill gas. Jatropha plants for biodiesel fuel.

Not exactly words one would expect to be part of the culture at an auto company, particularly General Motors.

But they are and I am proud to admit they form the basis for some far-reaching environmental initiatives.

As the person responsible for GM’s 185 manufacturing sites around the world, I have a vested interest in ensuring that our people not only produce the best vehicles, but that they do so in an environmentally responsible manner.

In fact, we measure ourselves on our environmental impact right down to the operators on the plant floor who assemble our final product. The environmental metric, along with our safety and quality metrics, is reinforced with every employee, in every plant, in every language around the world today.

And, as a result, our facilities, where appropriate, have adopted conservation initiatives that have reduced our global manufacturing energy demands by nearly 20 percent in the last five years.

That means our energy reduction efforts to date can be equated to the energy required to heat and power 700,000 homes. And from a financial standpoint, that means we have contributed almost a half billion dollars to the bottom line.

How we are accomplishing this requires a little explanation because we have found there is no single solution to reducing energy consumption and improving the environment.

These initiatives include using solar power and landfill gas to power plants or surrounding communities; finding ways to re-use scrap and waste that would otherwise be landfilled; and planting trees – or other essential plants – around our facilities or in threatened forests.

Recently, I was able to get up close and personal with one of these initiatives by helping workers plant trees and other vegetation outside our new assembly plant in Talegaon, India.

These plantings are not only essential to the ecosystem outside the plant, but one plant in particular – called jatropha – will serve double duty. Its seeds will be harvested and pressed to extract an oil that will be used to power diesel engines.

Elsewhere, our initiatives are benefiting our employees, facilities and communities.

Here are some other examples:

• We are generating solar power and sending it into the grid through the world’s largest rooftop solar power structure at our Zaragoza, Spain, assembly plant. We also have solar installations at two facilities in the U.S. and plans to bring a third one on line.
• A few weeks ago, I announced that 43 of our facilities are now landfill free, meaning that all waste from these facilities will be recycled, reused or converted to energy. We expect half our operations to be landfill free in the next two years.
• Our Lansing Delta Township facility in Michigan is a model of integrating a manufacturing plant into the surrounding environment. In fact, this facility is Gold LEED certified, the only automotive manufacturing facility in the world with that designation.
• We have designated more than 870 acres in North America as habitat enhancement and restoration projects to provide food, water and homes for wildlife.
• GM has helped establish a 30,000-acre Brazilian Atlantic Rainforest Project. To date, 316,805 trees have been planted on approximately 438 acres of existing rainforest.

All of these efforts are having a tangible effect on our business and the environment.

Going forward, these initiatives equal the reduction of almost 4.5 million metric tons of CO2 a year. This is the equivalent to the CO2 which is released by producing energy for nearly 400,000 houses a year.

Of course, I know we can do better and our employees, suppliers and other partners are working hard to build on these successes.

And their efforts fit perfectly with what we are doing to reinvent GM and the automobile for the next century. We have every intention to be around for another hundred years. And we have every intention to be a leader in design, fuel economy, performance and environmental sustainability.

In today’s installment of our “The Case for GM” video series, Chairman and CEO Rick Wagoner explains the importance that Congress provide loans to automakers in order to meet more-stringent fuel economy mandates. Please let us know your thoughts and keep checking in as we continue to respond to your comments. For a transcript of today’s video, click here. - Christopher Barger, Director, Global Communications Technology

To kick off our “The Case for GM” video series, GM Chairman and CEO Rick Wagoner discusses some of our specific challenges and some of the reasons he’s optimistic about what’s happening at GM. We’ve had a lot of insightful comments from readers already; please keep them coming and watch for responses from executives and other members of our team. - Christopher Barger, Director, Global Communications Technology

We’ve seen some comments on appearances by GM CEO Rick Wagoner and Vice Chairman Bob Lutz the Charlie Rose’s PBS interview program earlier this week.

In case you missed the shows, here’s a chance to download Rick’s and Bob’s interviews. Take a look to get a very interesting perspective and to hear a frank, open dialogue about GM and its place in the global automotive marketplace.