- Posted on Tuesday, May 2nd, 2006 at 11:06 am
Perception and Reality
Gustav Hoffman
By Gustav Hoffman
Program Manager, Revenue Optimization
GM Business Services IS&S
I have worked for GM for 5-1/2 years. And it never fails – every time I have a conversation with someone –friend, relative, acquaintance or even stranger – they focus on the same things. Why doesn’t GM get that the world is changing? And, why can’t GM make cars Americans want to buy? I gotta tell you, like the character from the movie Network, “I’M MAD AS HELL AND I’M NOT GOING TO TAKE THIS ANYMORE.”
This perception of GM has got to change – it’s not even close to reality.
Why doesn’t GM get that the world is changing?
GM gets it – believe me, we get it. I’ve read about a hundred different versions of how we should save ourselves, but the solutions almost always have no basis in reality. GM is such a huge company, and its own operations affect not only every state in the U.S., but other countries too. We’re talking employees, dealers, suppliers, retirees, customers – this is one complex organism. There’s no one-size-fits-all solution. What’s good for one part of the company may spell huge trouble for another part. It’s hard. But we are doing a lot of things. Some radical, some overdue, some just plain cool.
Why can’t GM make cars Americans want to buy?
When are you going to take a look yourself? On quality, on safety, on design, on fuel efficiency, on selection, on sex appeal … we have been doing what we need to do. What we need to do better is to tell our story. There’s stuff out there right now in the showrooms at GM dealers that will change your perception. For example, our ’06 launch vehicles are earning outstanding reviews (see reviews on the Chevy Tahoe, the Saturn ION Red Line, Pontiac Solstice, and the Chevrolet HHR. In the past month, cars like the HHR, the Pontiac G6 and Buick Lucerne are outselling the competition. The HHR outsold the Honda Element by 2 to 1, it outsold every Nissan sport utility and it outsold the Jeep Commander. The Lucerne, just another one of many examples, outsold other import upper-mid-level models such as Toyota Avalon, Nissan Maxima and Volkswagen Passat. Just do me that one favor, check it out for yourself.
Yeah, we have work to do still, but a lot of work has already been done. It may be hard to believe, given the pack mentality media coverage, but I’m proud of where we’re going.
35 Comments
Joel
I think one thing that could help out is showing concept cars (that probably won’t be made or are really far out 10+ years think Aero from Saab) and future possible cars camero solstice when it came out. I think the future possible cars have to be closer to production when you show them. It just seems to take to long especially since it isn’t known for sure yet whether the camero will be made yet.
But it does look like you are in the right direction. Keep it up.
Mike Driehorst
Yes, GM (and Ford) don’t always get the good media it/they deserve as the last American car companies. Plus, the fact that perceptions are hard to change doesn’t help.
On the issues of safety, fuel efficiency and quality, the perception still is (at least that’s my $0.02) that the Japanese automakers (Honda and Toyota, esp.) still outscore GM and Ford.
When was the last time one heard of a major Japanese auto or truck being recalled?
You don’t hear much of zero interest and other sales incentives from them.
The consumer-focused reviews (like Consumer Reports) consistently have foreign-owned automakers at the top.
Blogs and stories in the car enthusiast media will reach and hopefully prove your point to the “car guys” (and “car gals”).
Just gotta keep plugging away to reach the general car-buying audience.
– Mike
(Note: My wife and I drive an Escort and an Odyssey. That’s primarily because my parents bought Fords, so I’m in the habbit. And, the Odyssey is known for its safety. Our next car? Probably a Honda Accord, unless we can be convinced that a GM would be a better overall buy.)
The TrueTalk Blog
The Long Tail of Reputation
Today, at the GM FYI blog we have Gustav Hoffman with a familiar lament: why doesn’t anyone give GM the respect it deserves today? Here’s why. Reputations have long tails. No, not that kind of long tail. The kind of
Pierre Roberge
It takes a lot of time to change people’s perception and it takes actions not words.
Give it time, GM has been producing sub-par products since the 70s and you expect people to change their mind about GM by reading raving reviews? Come on.
Since the G6, HHR and Lucerne are outselling competition, shouldn’t you be happy??? What are you complaining about????
Do you care more about words people are uttering or do you care more about the actions of the people buying the G6 in droves?
Words can only hurt you if you let them do.
I agree it’s nice to be told that you are the best but give it time and if you continue doing your homework well, it will come.
BTW I will buy GM cars when they can compete with the foreigners in terms of reliability so even rave reviews won’t make me buy GM cars. Reviewers only drive the cars for a couple of weeks. When I buy a car, it is for 5+ years.
Hang on!
David Mervenne
In response to Mike Driehorst’s question: 790,000 2004 Toyota Tundra pickups were recalled last year. I think that qualifies as a “major Japanese car or truck”.
PAUL
The reason for the bad reputation is the BIG LIE! In the early 80’s the Asian competition set out to convince the public that their vehicles were better than US made vehicles. As a lifelong motorhead, I have seen nearly every car made in the last 40 years up close and I gotta ya, Asian cars in the 80’s were the worst cars for rust on road in the region where I live than anything else on the road. The engines ran forever, but there was no car left for the engine to propel. Secondly, If fit and finish, neatness, is the definition of quality, then people are really stupid.
Quality is defined as not having a recall on the entire rear suspension because it collapsed from the rust. They didn’t hold well in collision either.
Ron F.
I certainly understand Gustav’s feelings and feel that the message is not hitting the mark. GM’s ads focus on industry leading features like XM. OnStar, Stability control, Fuel Economy leadership,etc. and while I do agree they are very important, I don’t believe most import buyers buy their vehicles because they feel they have better features.
I believe they buy based on their misguided belief in the press and that the imports offer better quality. The sad part is so many of those who buy a bland Camry, are unwilling to educate themselves as to the G6 for instance which has best in class quality, far better looks and is priced $3000 less than the cost of the lower quality Camry. This ignorance is where I believe GM should focus a majority of their advertising.
Instead of telling the matket that the G6, Mailbu, and LaCrosse have nice features, tell consumers that they are the top 3 quality products in the largest car segment and that Toyota, Honda and Nissan are not in the quality picture with GM. Focus on products were GM leads like Full Size Pickups, SUV’s, Luxury cars including the best in class Escalade and put your advertising might behind it and GM will educate and drive a perception change. This is what Toyota has been doing for over a decade and as we know, many consumers believe what they see and read.
The facts are that a metamorphasis has happened at GM over the last year and currently GM prices are virtually best in class in every segment GM competes in and many of the vehicles are better looking and better quality than the Japanese (Toyota and Honda) or the French owned (Nissan).
GM has the largest dealer base in the business so get your dealers to do the same kind of advertising by leveraging your co-op advertising program and the results will change perceptions much quicker than using the current subtle advertising approach.
Prioritize this Quality message with a true sense of urgency that I believe GM has and get aggressive with you rmessage. It will pay off because when a import buyer drives a GM vehicle, they will have to give it serious consideration. They will only dirve GM products if they believe the QUALITY is where hundreds of thousands already know it is.
Edward Hayes
What is a brand?
A brand is something already communicated.
If I said Mercedes then you think luxury.
If I said Nike you think the best sneakers.
I’m looking at your numbers Mr. Hoffman, something I have been doing since before I could remember, watching GM since I was a kid. Waiting for the same thing everyone else is, their turnaround. Here is perception and reality.
Perception-
I’m driving down the street and I am thinking about everyone refering to Buick, Pontiac and GMC as “BPG”. I am thinking it sounds like a gas company - British Petroleum and Gas.
Let me put it another way. Daimler-Chrysler will combine its Mercedes, Dodge and Chrysler retail outlets. Everyone online, the bloggers, floggers, reporters, media and soon ultimately the public will refer to these dealers as Mc.D’s or Mikky D’s.
Now question. Did we help or did we hurt the Mercedes image? Let me answer that for you. You put the Mercedes brand in a blender. You had rib-eye now you have a 50 cent burger from Mikky D’s.
While I was thinking of “British Petroleum and Gas”, I saw a Solstice on the road for the first time. My spirits were immediately uplifted. It is simply the most beautiful car on the road today. But I have mixed feelings.
Reality-
Pontiac Solstice and G6 are the best cars out there but so what? The perception is already established. I am reeling that Pontiac sales are down 20% along with GMC and Buick. Like Mercury, they together make the best cars in the world, but perception is everything. Here is the reality, they are the best cars in the world, but from the worst brands in the world.
GM better learn how to build something other than cars, they got the car part right but as far as brand building, your basically worse than school children.
You better read the book, “1001 Ways to Kill a Brand”.
Perscription-
You supposed to be draping the Pontiac brand in the checkered flag pro-racer image not slowing it down and confusing it with Buick.
Buick you supposed to be draping it in luxury. Luxury customers buy on perception, in fact, they demand it. Many auto writers are already resigned to the fact that “BPG” is Buick’s retirement home and for a luxury buyer it’s a slap in the face.
It’s amazing that the same people calling for Buick’s death are calling for the death of its dealers. Like Eagle of the ChryslerJeepEagle fame, or Plymouth of ChryslerPlymouth fame they play russian roulette with Buick’s survival.
They ask me does it matter, BPG is doing fine in Canada. Okay Canada is not where Buick’s image is made, safegaurded or shaped.
Do the new dealerships look good? Of course they do, but the retirement home image is ugly and it’s only going to get worse. Let the reality of the numbers speak for themselves.
The cars are not the problem but Buick and Pontiac’s brand image just arrived at the hospital DOA. You want to resusitate the brand? Hire a Buick Brand Manager and get the Holden Efigy over here and run like the wind. Run away from “BPG” like it’s a plague.
They asked me why not BPG? Well you have your answer. Sales down 20% and pulling GM down with it.
I told you this from the beginning, day 1.
YOU YOKE ‘EM, YOU CHOKE ‘EM.
I can’t say much about GM perception as a whole my perscription is to find where the patien is hemorrhaging and stop the bleeding first.
Edwin
Gustav,
We agree with your frustration. Many criticisms of GM are clearly misinformed and unfair.
The 2007 Escalade achieves an impressive 403 HP with 19 mpg. Its the best in its class, great improvement. Now, here is an honest question from a Genuine GM enthusiast. Why doesn’t GM offer an alternative engine for Escalade with even HIGHER fuel economy as an OPTION to just shut the critics up? You would be right if you said we don’t get the dynamics, we don’t see why GM doesn’t do it. If GM can work a miracle and make a whopping 403 HP at 19 mpg, how difficult can it be to offer an option with 300 HP that gets 24 + MPG. Offer both and let the people decide which option appeals to them. The people would probably choose the higher mileage version with the reasonable horsepower over the maximum power option. The people still see GM won the HP/efficiency war over the foreign competition. Now give the people a choice with more economy and watch them come to your side.
GM needs to rethink the competition equation. Keep offering the miracle horsepower/economy to show competitive technolicial superiority. Can GM offer extraodinary economy with a bit less HP? We’d like know technical answer. GM could sell many more cars and SUVs. Inching up economy hasn’t grabbed the people’s attention like it should. Breaking certain numbers would though, breaking the 30 mpg for a V-8 car would grab their attention. Breaking the 25 mpg mark for an SUV would grab the public attention.
People love GM’s V-8. So why not make a smaller more fuel efficient V-8 option. Let the people show you which one they will buy. If GM can make an Impala SS with an impressive 300 HP and 28 MPG, surely GM can make a yet smaller more fuel efficient V-8 option with 260 HP and 30 + MPG. So why don’t you explain it to us. A V-8 over 30 MPG would be a miracle. So why not do it? We want to understand this.
Explain to us why doesn’t GM try an SUV with some lighter weight materials and balance it with a center of gravity to achieve yet higher economy? Is it roll over safety? Can engineers solve this?
GM has light weight cars that have wonderful balance, the Camaro has a perfect center of gravity and it is light weight and incredibly safe to drive and gets 31 MPG. Why can’t SUV’s use a similar concept. Do they all have to weigh 6000 pounds for the customer to get a tax break? Is that it? Then tell Congress to lower the weight for the tax break to 5000 pounds or less. Speak up.
GM enthusiasts are probably more frustrated than GM execs about these false perceptions. We hear today a bureaucratic response from our heros at GM to some legal challenge over CAFE by 10 States. We see GM letting Big oil execs deflect blame from their price gouging by using the CAFE issue, and no response from GM. We hear GM letting the administration talking CAFE. Why doesn’t GM repcap its accomplishments for the public, saying how much fuel you’ve already saved America with better mileage vehicles. GM really needs to come out swinging on the CAFE thing. Start talking about American jobs and that the Midwest heartland is not going to be steamrolled by big oil, Washington, and Wall Street. Take them to Court, before they keep doing it to GM. We’ve suggested to take on the credit agencies in Court for being anti-competitive, violative of GM’s due process, being an unconstitutional conveyance of authority, having a conflict of interest over McGraw Hill owning S & P and JD POWER, and so on. GM remains silent.
Flex fuel ads are great, but why not show the Impala in them?
GM enthusiasts know the legend from their grandparents about the mysterious carburetor that GM had at Oldmobile that supposedly got something like 60 to 80 mpg. If you haven’t heard, start a blog and we’ll fill you in on the legend.
We also heard the 1970’s legend from our grandparents of cars that could “run on water,” we now see this legend turned into the fuel cell vehicle.
What other surprises doesn GM have in store?
getalifeagain
Finally, someone eloquenutionizes what I have been saying all along.
Rick Lupori
Mr. Hoffman: GM’s perception/reality problem is most commonly found on the dealer lot.
You “Build and Price” the vehicle you want on the GM website and your perception of GM improves because you find THE VEHICLE you want and at a very competitive price. Then you go to “Find a Vehicle” and the reality; there are none within a 500 mile radius of your house.
It is much worse if you actually spend time driving around the lots in a futile search for your vehicle.
At the end of this your perception of GM has gotten much worse because of the real time and frustration you just experienced.
I recently did the web search to locate a Malibu with the 1LT package with the following options:
Luxury and Convenience (PCQ)
Adjust Pedals (JF4)
Side Curtain Airbag (AYO)
Spoiler (T43)
This is a well optioned Malibu with 4-cylinder with Alloy Wheels, heated power seats, Fog Lights, remote start, etc… at a sticker of $20,225 minus the $750 rebate.
There are none in the entire Southern California Area (LA and San Diego).
Having worked at a Dual Domestic (non-GM) and Import (Honda) dealership in the early 90’s, I can tell you this is the car that family car buyers are looking for. We sold more 4-cylinder Accord LX models than any other and most buyers were not even interested in the V6 Accord LX or EX. Selling these cars was easy, just match the buyer to the color they wanted and do the deal. The LX models were optioned well and the buyers got exactly what they expected.
This is the key, GM must build and stock the mid priced vehicles they do offer. Then the buyer expectation (perception) is validated in what they get (reality).
In the Malibu case, the EPA sticker says that the V6 model gets the same mileage but the buyer’s perception is that the 4-cylinder will do better than the V6. GM needs to capture these buyers – 60% of Camry buyers opt for the 4-cylinder and Accord buyers are similar. These are the two best selling cars on the market and they got there by selling well equipped 4-cylinder models.
GM has to get away from this idea that they will sell all of these V6 powered well optioned models to make revenue goals.
I realize that this is what GM wants to do (so do Honda and Toyota). The difference is that Honda and Toyota have figured out that while the “per unit” revenue is lower on mid price 4-cylinders, the volume and market share that comes with it are worth more.
As a test case stock the southern California dealers with 500 to 1,000 Malibu 1LT models optioned as noted above and offer them mostly in White, Sandstone, Silver Green and Sliverstone (it gets hot out here – and except for Silver that was not offered these were the most popular Accord colors).
Advertise these cars at $19,995 and see how fast they sell.
If they don’t sell you can always do the usual and boost rebates or sell them to a rental car company.
I bet your net revenue is higher on the retail sales.
Jon
I know you can only do so much to dealership experience because of franchise laws, but that’s another area that could use some looking into. We got great service from my Chevy dealer (it started to drizzle while my girlfriend and I where out in the lot, our future sales person brought us out an umbrella. Meant a lot to a 22 y.o. couple), I got great service from my Pontiac dealer with my Solstice (#937), but both of them paled compared to the service experience yesterday when I stopped by the local Saturn dealer to compare and contrast with a Sky. The showroom looked the nicest, was offered a snack before I even opened my mouth, and after the salesperson knew I just wanted to compare and contrast with my car… he still offered me something to drink. If I was in the market at the moment, that experience would have been enough to take an Aura over a G6.
On a completely other note, could a new firmware please be released for the radio in Sol/Sky? The speed compensated volume is about useless with the top down. Maybe have one of the buttons right under the display toggle between top down and top up SCV profiles.
Scott
GM’s gotta start getting with the program and stop developing “new” cars on “old” platforms with “old” powertrains. Even the well-received Lucerne has the ancient (but solid) 3800 V6 and a 4spd transmission. Don’t get me wrong, I’m not a DOHC guy, I LOVE pushrod motors and the torque they bring (I own a Grand Prix GXP with the 303HP LS4) but that 3800 hasn’t been kept up-to-date (no VVT) and the 4spd tranny should be a deal killer considering what the competition offers.
Once the more modern engines and 6spd trannies are standard on all GM cars, things will start turning around.
CF
Another response to Mike Driehorst’s comment:
“When was the last time one heard of a major Japanese auto or truck being recalled?”
It was just in Automotive News this week that the new version of the Toyota Avalon is suffering serious quality issues. That’s big news, and it delights me immensely to see some tarnish on their “perceived” superiority.
The problem with GM’s public perception is that most Americans are sheep and just follow the herd. No one takes the time to actually review the facts, compare actual vehicles, shop around, etc. They just buy what their neighbors buy or what’s currently trendy. (Wouldn’t want any independent thought, now would we?)
It’s not just in the automotive industry, either. Ten years ago you couldn’t have sold gauchos to anyone–they were “so 70s.” Guess what’s back in style and selling like mad? Why? Because the fashion companies have created the perception with ads, runway shows, etc. that gauchos look cool (they don’t) and that they’re the “gotta have it” item of this summer.
Unfortunately, people are predictable and tend to resist change. Now that a negative impression has been formed by the general public about GM, it’s going to take some time to change it. The perception wasn’t created in a day, and it certainly won’t be changed in a day, but I think if GM persists, they can succeed.
Stan
Leadership!,Leadership!Leadership…When you think of Green Bay Packers you think Lombardi.When you think of The Steel Curtian you think Chuck Knoll,When you think of Yankees you think Joe Torre.The Boston Red Sox help end there World Series drought threw Leadership.Having Rick and Bob go out to the media and Say hay take alook at what were building today has a infectiousness to it.Management,Workers,Stockholders,Customers respond to it.I would like to see commercials of them talking about GM product.Letpeople really know who you are and tell them why they should consider GM Vechiles.As far as the Media goes with CNN,Fox,CNBC,MSNBC ect today is truly the day of 24 hour news media and just like your in business to sell cars there in business to sell news and alot of it is bad news because it sells.Starting this blog can only help you because it gives GM a voice heck if you really want to GM or a partnership with Ford,DXC could start a Cable Channel were your story is told by you and not by others.Having game shows,news shows,movies,sporting events ectcould go along way in helping the image problem of GM currently.
kurt
Yes, GM and other domestic makers get a bum rap, in part because Auto Enthusasists do not find GM product “exciting” or like the niche European products they fawn over.
But GM deserves a rap for not offering its existing customers the opportunity to feel more akin to the product. The mentality is still mostly “Buy our new product and then GET LOST!”. If the customer have problems or want to upgrade what you own, GM either doesn’t want to listen and/or offers no route other than scrapping the entire car.
GM could carve itself a unique position in the American industry by showning it cares about long term relationships with its customers.
Keep in mind, GM, that __every__ car company shouts “NEW, IMPROVED! product. How about trying something different as well as creating exciting new product?
Jim Dermitt
Maybe you ought to build some motorcycles. You know how to build stuff and you have the tools. I’d buy a GM bike before I’d look at any import. It could be a $100 million a year business. It could expand dealership profits. You got high gas prices and the fun factor. That alone should be good for sales.
Frank
Mr. Hoffman,
First off I agree with you 100%, second, Its time GM puts its money where its mouth is. Start a massive media campaign, give the best cars GM has to offer to people like Howard Stern, Oprah, Bill O Reilly, basically anyone with any influence and let them be GMs mouth piece. Giving positive facts about GM, on a Pro GM blog isnt going help much. We already know you make good cars, its time to let everyone else know.
Keep up the good work,
-Frank
Jim Dermitt
Giving positive facts about GM, on a Pro GM blog isnt going help much. It can’t hurt.
Launch a satellite and offer GM radio. You guys are up in Detroit Rock City. Hire some unknown DJ’s and rock and roll.
Edwin
GM should promote its powertrain advantages more forcefully. Doesn’t GM have the highest mpg on a V-6 and V-8? Why not advertise that? Some auto media critics are just wrong headed. They often create false perception. Auto media misleads with jingoisms like “aging” and “high feature,” often enough to make the intelligent reader look elsewhere for information.
GM powertrains are the best. GM has better technology and more reliability than the foreign competition. From more continuously variable valve timing to more trusted transmissions, GM beats the foreign competition. GM uses DOHC engines where the foreign competition uses SOHC. The 3800 V-6 is very high feature, more advanced, more realiable, and more desirable than the foreign competition once the driver experiences it. And unlike much of the foreign competition’s V-6 engines, GM’s 3800 uses a high feature steel timing chain. GM cars start flawlessly for hundreds of thousands of miles.
GM’s OEM parts are impressive, GM enthusiasts see the durability go well over 250,000 miles.
There is one thing about an ‘aging’ or used GM car which the auto media doesn’t quite get. The aging used GM car often runs better than the ‘new’ Japanese car. Buyers of GM certified used would much rather have a GM without much warranty, than a brand new car from the foreign competition.
The auto media have historically failed to mention that the foreign competition often uses the same powertrains in their high volume run of the mill mediocre cars as they do their so called entry level luxury cars. The media failed by and large to report that the Asian vehicles had to revise horsepower downward for 2006:
http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20060313/AUTO01/603130350
GM brand critics often get it wrong. Pontiac is the Nissan/Infiniti beater. Buick is the Lexus beater. Cadillac is the world standard. These are different customer bases.
The Lexus customer is the bargain hunter. The Buick customer is looking for quality and luxury.
Buick can sport performance, just like Pontiac. Buick is luxury sport, Pontiac is pure satisfaction. (when is our Pontiac flag ship coming?)
The Lucerne should have a Tachometer and an Oil Pressure gauge, it needs some boy toys. Analogue gauges would be fine. The Lucerne should offer night vision. The Lucerne should be the sedan of Sedans. People are talking about those air conditioned seats at luncheons. So and so’s STS has air conditioned seats, that’s what the Lucerne has.
GM vehicles get higher mileage, often they are best in their class. GM vehicles have higher horsepower.
Owners of the foreign branded competition have reported serious problems which the media has under-reported.
GM can and should counter bias with alternatives like Hollywood, new media, and promoting technology. Grass roots efforts like mall appearances of GM product in higher income areas should be more pronounced. Cadillac, for example, needs much stronger presence in Montomery County, Maryland (Bethesda, North Bethesda, and Chevy Chase) which is one of the highest income counties in the nation. At the Montgomery Mall, Cadillac is under-represented during promotions. The Cadillacs at the dealer are walled in by foreign branded competition.
The media hasn’t reported how many gallons of fuel GM has saved with higher mileage vehicles. GM should promote the positives and forcefully respond to the negative propaganda from the adversaries. Don’t allow false perceptions to form from rhetoric by GM adversaries.
The media likes to sell news, give them something to sell. Give them some red meat, set the stage for a change, don’t be on the receiveing end all the time.
Jason Zebersky
Give enthusiast magazines manual transmision cars (where available) for road tests especialy low priced ones like HHR.
Build cars with manual trasmitions so that car enthusiasts will buy them and tell their friends.
Concentrate on things like class leading fuel economy, performance or if the technology exists both, leave fit and finish to Auidi, Damler and Nissan build exighting cars that squeek and rattle and turn a profit.
Carl Johnson
Yes, it’s a proven fact that GM and the other domestics are making a product that equals and sometimes exceeds what Toyota and Lexus are making. J.D. Power, Ward’s and the Harbour Report bear these facts out. However, we are fighting a huge perception “desease” in America today. There seems to be a cocky, cynical and whiny attitude spreading in America that: “I can’t help it if I happen to live in a country that can’t get anything right”. This cynical and self-indulgent opinion seems to be stated not only in relation to domestic automobiles, but to ANY form of American manufacturing. Several media sources fuel this opinion, especially Consumers Report.
CrabAppleLane Blog
Corporate Weblogs - Revisited
One of the weblogs I mentioned about a year ago has spawned another weblog (See today�s BOTD). I still think it can be a great and super cheap tool for companies to get their message out to the general public, to counter misquotes or inaccurate percept…
Tom
Good comments, GM is certainly doing a lot of good things lately.
However, I hope that GM remembers that this “crisis” is not going away anytime soon. Remember, you have at least 35% of Americans (and much more if you look at people under 40!) who think your product is not very good, and that number continues to increase slowly. Plainly, you are losing marketshare. This has not turned around yet.
To gain marketshare, you need to have the best products, best value, best pricing, best reliability, best quality, best mileage, best fit-and-finish, best performance, and best product/marketing strategy for this year, next year, the year after that, and the year after that, and the year after that, and the year after that..……
There is no one-time fix. You can’t have great 2007 SUV’s and think that you are “past” this crisis. You can’t get the Delphi situation settled and then go back to “the way things were.” You can’t settle the UAW contract in 2007 and then “go back to normal.” The battle GM faces against Toyota, Honda, and Nissan (and others) will continue for decades.
The products you introduce have got to be world-class, every year, every time. That’s the only way GM is going to make it – and it’s a long haul. It’s a marathon that needs to be run like a sprint, every year.
You have a lot of people rooting for you. Good luck. Go GM!
Paul
Fuel efficiency? When will you get it through your heads that 34mpg IS NOT GOOD FUEL ECONOMY. It’s a little above average. It’s a C+.
Your only hybrids are massive trucks and SUVs. Where’s your flagship fuel economy vehicle, like the Prius? Is it the Aveo? A subcompact that only gets 34mpg? Please. Not too long ago you could find a subcompact that got over 50mpg. And that’s without any fancy hybrid technology.
You can whine and complain that Toyota still makes big, inefficient trucks. But they’re also making Priuses and hybrid Camries and Highlanders. Honda’s got a Civic that get 50 miles per gallon whether you’re in the city or on the highway. Why can’t the Ion do that at any price?
Want to change the perception that GM is the place for big, wasteful cars? Push for higher CAFE standards that include trucks. Invoke the spirit of JFK and say you’re “throwing your hat over the wall.” Then, and this is the important part, DELIVER ON IT.
You can’t change a perception based on deeds with a message based on words.
Paul
Frank: If O’Reilly starts shilling for GM, I’ll never consider a GM car in my life, even if it ran on pollution and emitted pure joy.
Frank
Haha I guess you wont be springing for a Sean Hannity Pontiac either
PAUL M
I would like the same FAT pencil that is used to calculate the MPG on these “beloved” Civics!! I have never seen any proof that any vehicle has gotten 50 mpg unless it was moped.
SteveG
No matter how good you think you’re doing you obviously should be doing better. market share is slipping isn’t it?
You need to shoot for world class, not just OK.
The Cobalt is NOT world class.
The Malibu and G6 are NOT world class.
The HHR is successful so you’ll probably let it rot for years without fixing its shortcomings such as the window switches on the middle console instead of the window where it belongs. The side armrests are hard cheap plastic and the door lock sticks out of a unfinished hole in the door!
The Cobalt’s interior silver trim is starting to rub off on many of the cars. It looks cheap, and feels cheap. and is cheap. The console is hidden under the armrest and there is no elbow room.
Where are the 6 speed automatics? Only in one model of the Aura is not good enough.
How can the Lucerne come out with an old tech pushrod V6 and 4 speed automatic and not the DOHC V6 and 6 speed automatic? You dont set the bar, you dont even reach the bar. Its getting stale and quite frankly a little pathetic.
You have tilt and telescope steering and adjustable pedals on the Malibu but not the Impala, Lucerne, Cobalt, etc? Why?
Tilt and telescope steering should be standard on ALL your vehicles. The Mazda 3 has it, does the Cobalt?
Get rid of the 5 cylinder engines in the Colorado/Canyon. Does anyone want a 5 cylinder? Sales stink on these models-the ride is not world class and the interior stinks. GM should be the leader in light trucks, not dragging the rear.
You have 12 V6 engines and only 1 or 2 are world class. Dump the ones that arent and build more of the ones that are and put them in everything.
The RAV4 has a world class engine, the Equinox/Torrent has a Chinese built pushrod POS!
Talk is cheap, show us you will only produce the best and people will believe you.
The Aura has a dumbed down front end from the concept car. The wheels are ugly. Everyone is telling you this, but will it be changed? of course not, GM doesnt listen to the people.
Why is the parking brake on the floor in so many of your vehicles? It belongs on the console like the competition.
Why havent you increased your warranties? People are afraid to buy your cars because of the mediocrity you produced even 3 years ago that started to fall apart right after the 3 yr warranty. INCREASE your warranties!
GM needs a new slogan-Only The Best!
Only the best parts, only the best designs, only the best vehicles.
Prove to us that you know what you’re doing. So far we havent been seeing it.
Jim Dermitt
World class is 40 grand and up. The Corvette is world class. I’m not world class yet. Talk isn’t cheap when you have world class demands on your time. It’s not like you are going to get a hand crafted car for 17K. You get a grocery getter for that kind of money.
V@z!R
Hey PAUL M !!
You ain’t ever driven a Honda City, Tata Indica or Maruti 800. These vehicles are real, they’re on the roads in India & they give 50mpg and more. And they’re not all that small (save the last one) that an American (6ft+) wouldn’t fit into.
There are several others and not just in India - you need to drive ‘em and you won’t be calling them mopeds. GM can make ‘em if they want to.
asiangmfan
GM’s V6 pushrod family not just get negative perception but it’s really true that it needs an improvement. None of those pushrod engines from 3.4L to 3.9L can beat the 3.5L OHC of Nissan, Honda, and Toyota. GM’s V6 pushrod engine is also perceived as an old-fashioned, and lags behind the efficiency of Japanese’s 3.5L OHC engine.
Joel
Wow… just saw a picture of the new colbalt… er.. G5 over at autoblog.com. I’m severely disapointed. I thought badge engineering was done here. Why would somebody want the G5 that doesn’t already want a cobalt? What’s the value statement? Sheesh I thought you guys found out for the past 15 years this isn’t working so well!!
Louise Vandyke
I live in New Zealand and a week ago read a whole page newspaper article about General Motors. It was all bad: declining marketshare, ongoing troubles with product and pensions, bankruptcy was all but assured. It certainly came as a shock, especially as we had been at the annual V8 Supercar race the weekend before. There, the GM cars and their fans outnumbered anybody else.
New Zealanders don’t have a problem with GM product, but our media is just the same, they love doom and gloom. I started reading this site just to see if it was really all true.
I have been in sales and marketing and my family owned a dealership (Chrysler and later Mitsubishi). I agree with the writer who suggested using some powerful media personalities. After all Kate Moss changed the fortunes of Burberry almost overnight, and George Clooney could sell me almost anything !
Why not produce a range of ‘nostalgia’ T-shirts. Ask everyone on your payroll, including your retirees to buy one for themselves and a friend or family member. This puts a few million mobile billboards out there, plus you can make a profit on them. You even have the anniversary of the Empire State building to celebrate this year.
On the subject of retirees, wouldn’t they make the best ambassadors?. Why not have a volunteering scheme helping out at dealerships. Making people feel welcome and engaging with them so they don’t just walk off the yard. They could do customer telephone follow up (seems to be lacking from some of the comments I have read), explain finance options, and even provide some supervised child minding. Even if they just hang around looking at the cars to make the place look busy - lots of people don’t like to walk into an empty showroom.
Nobody seems to be complaining about your prices, just the price of gasoline. Maybe instead of rebates you could offer the same dollar amount but in vouchers for gasoline. Car repayments, like mortgages are just fixed budget items - but knowing I don’t have to choose between filling my car up and buying that new dress - that’s priceless!
Good luck GM!
ricky stafford
what were the top selling trucks in october 2007 also is gm going to discontue the midsize canyon and colorado trucks
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