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OpinionsGM’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 on September 18, 2006 12:00 PM

Comments

Well written and sensible response to a poorly written article. While it would be desirable that GM offers a high mileage cars like Honda and Toyota's hybrids, it is very true that GM has plenty of cars and trucks that easily meet or beat the mileage of the competetion. Myself I would expect something to be better written from a high school student, but that is just my opinion. To claim that four articles is enough to understand what goes on with any company is foolish. It takes actual research. There are plenty of us out in the real world that understand that GM is doing more than putting out trucks and SUVs that guzzle gas. There are plenty of people that need something because of it's capabilities. Even then, a large truck or SUV is more fuel effecient than most everything from other manufacturers. Thanks for pointing it out, now only if the media would take note.

Posted by: Jason Vanover on September 18, 2006 2:45 PM

Very good rebuttal. It's too bad that the majority of the people who read that column will not get to read this. Isn't there someway you could spread this around so the people you lost who read that column can see the facts?

Posted by: Chad C on September 18, 2006 4:10 PM

I wish that GM would have an aggressive marketing campaign to address this issue. I talk to people all the time that think the way this Jackson character thinks. It's getting really old. I've heard these sort of ridiculous comments made about American vehicles for years and years and I will never by anything but an American car. There are those of us out here that are passionate about our vehicles and about GM. We love the history of GM and have supported GM all our lives. One of my favorite websites is:

http://www.friendsofbuick.com

I'm not affiliated with that website and they are not affiliated with GM, except for the fact that they share a common passion for the great vehicles that GM, and in particular, BUICK, has and is still producing to this day. They also cover a topic titled "the perception gap" which is exactly what is going on in the article written by Mr. Jackson. We have to defeat that perception and the kind of vehicles GM is making right now will do that. All you guys that are working for the General, keep up the good work! The beautiful vehicles that are being introduced by all of you are a testament to the fact that GM is the greatest car company in the world. I want the day to come where the drivers of all the foreign makes realize that too!!! BTW, can't wait for the new BUICK ENCLAVE! That is the most beautiful vehicle I've seen in a long time!!

Posted by: Keith on September 18, 2006 10:34 PM

I wish that GM would have an aggressive marketing campaign to address this issue. - Keith

I don't think a marketing campaign will do it. Sure, GM makes the most cars that get average gas mileage. (Thirty miles per gallon is just that, average.) Where are the GM cars that get phenomenal gas mileage, as in high-fifties to low sixties?

They do exist, but aren't available in the US. Bring over the Opel Corsa and Astra along with the diesel engines that get these great numbers, and it will create the same "halo" effect that causes people to forget about Toyota and Honda's gas guzzlers.

Posted by: Paul on September 20, 2006 9:32 AM

Whine, whine... this is all fine if it makes you feel good. As much as I think Mr. Jackson is out of touch most of the time, he's no different than Rush Limbaugh in parrotting what he thinks most of his readers want to hear.

Bottom line though, no matter how much you want to focus on gas mileage as being some indicator of GM's superiority, most of his readers will continue to purchase products from Toyota and Honda, even if they have to pay $10 bucks a month more for gas. Unfortunately they still cost less to own because of their resale value, and lower maintenance costs. When GM can succeed in getting their vehicles on the top of the only list that matters in my book... https://www.alg.com/ then I'll start looking harder at their vehicles again.

Posted by: JimFolsom on December 31, 2006 7:41 PM

Derrick Jackson's article was nothing to write home about. However, it doesn't appear to me that GM has got the message yet either about the importance of improving vehicle fuel economy. It may be true that GM is doing "as much as any other auto maker to reduce oil dependence." The problem is the lack of a national and world energy policy which would require all auto makers to do much more than they are doing. Oil dependence is only part of the problem and in the long run the least of our worries compared to global warming.

GM should recognize the need for a coherent and effective national and world energy policy instead of whining that proposed requirements for better fuel economy "would destroy the SUV market." With that comment, Bob Lutz showed that he is clueless about energy and global warming. Of course the proposal would hurt SUV sales--that's precisely what it's designed to do and what needs to be done. The auto industry is producing and Americans are buying too many gas hogs. If GM doesn't like the fuel economy proposal, it should come up with another equally effective approach.

There is nothing sacrosanct about the right of Americans to drive heavy, elephantine SUVs to the grocery store or PTA meeting or for auto companies to produce them.

The science of global warming is becoming clear. The problem is more of an educational and political one needed to achieve cooperation in implementing measures required to to deal with it before it's too late.

Ralph Deeds
Birmingham, MI
(GM retiree)

Posted by: Ralph Deeds on January 5, 2007 5:56 PM

If you would market ANYTHING equal to the EV veshicles produced for CA in the 90's (ie Rav EV) People would buy them in droves. I don't care what it looks like. Just get it out there. WAKE the Blank UP!

Posted by: Brown on January 8, 2007 11:34 AM

It really saddens me that GM works so hard to improve and market their cars, only to have their Dealers run off their customers. I know that most Dealers try to get you to buy dealer addons, so they can charge more. My wife and I have always bought GM products. My last four cars have been Saturns, but after my latest experience in trying to buy a new Saturn and Saturns inability to control there Dealers, or at least treat customers with respect, and not lying to them. I promise that I will never buy another GM car of any kind. I am sorry that it had to come to this because I don't like buying foreign products. But as long as GM cannot control their Dealerships, not that other Dealerships are any better, at least I expect to be ripped off at other Dealers. You would think customer loyalty would count for something. But being lied to by the Dealership and then the Saturn Corporate Office. I just don't see how I can ever buy or recommend to anyone your Products.

Totally Distress in Arlington, Tx.

Posted by: David R. Lomonaco on January 13, 2007 5:06 PM

While GM had done a good job of developing cars that get over 30 miles per gallon, there is something that I have been wondering about. While the Chevo Aveo sells well and comes with a lot of standard features, why does it only have a 4 speed automatic transmission?

Other companies offer at least a 5 speed front-wheel drive automatic and as I imagine in the U.S. there will be a lot of Aveos sold with automatics, its fuel economy would be even better with a 5 speed automatic. Getting 28 mpg in the city is decent for the 4 speed auto but it should be getting better then that and a 5 speed auto would definitly help and put it on a par technology wise with its competitors. Could someone please post a response if they are aware of any plans GM has to offer a 5 or 6 speed auto for the Aveo in the future.

Posted by: PGiomi on February 4, 2007 5:43 PM

GM needs to be aware of global warming? What do you think they make E-85 vehicles for? And besides that point, we do NOT need a GLOBAL policy. It is ridiculous to think that it's our job to save the world yet when we go into Iraq to save innocent lives you whine and moan. But a double standard is a double standard so I guess you don't care. And in regards to global warming, only 17% of researchers believe that global warming is caused by man. But I guess liberals only need 17% of the truth to get their agenda across anyway. And look at who's sales go up as the "global warming" scare continues to rise. Do you think it's really a coincident that Toyota and Honda continue to gain market share as they continue to scare us of global warming? Or is it possible that the enormous amount of lobbyists that Toyota has intertwined with our government may have something to do with this "epidemic." That and don't you remember the 70s? What about global cooling? Or what proof do you have that it's not just a phase that the earth is in? They keep claiming that 200 hundred years ago the temp was this or that yet there is NO WAY to prove that! I'm not saying that we shouldn't have more fuel efficient vehicles. I'm simply stating, let the MARKET decide what it wants, not the government deciding for the people. If we want more fuel efficient vehicles then we'll get them. It's called supply and demand. Didn't they teach you anything in high school?

Posted by: Jeremy on March 1, 2007 3:00 PM

While we should applaud GM for providing us these vehicles, it is really a moot point as there is a huge scarcity of ethanol fuel stations in the US. 86% of the US ethanol stations are in the corn-belt/Midwest. 23/50 states have 8 or less ethanol stations, and that includes the majority of the most populated US cities.

Distribution is a problem, and unless that is tied with compatible vehicles, there really is no point.
I comment regularly on the business/investor side of alternative energy on Energy Spin: Alternative Energy Blog for Investors-Served Daily

Cheers,
Francesco DeParis

Posted by: Francesco DeParis on April 13, 2007 11:08 AM

Alright, this is getting ridiculous. Personally, I have a chevy, and have gone through another gm car, and I will never buy another gm car again. NO ONE is doing close to their best. Lets be honest, it about the money, which is precisely why we are now seeing any effort. I must admit, as an investor in ethanol, the excuse of an attempt that the gov. is entertaining is very deceptive and even more limiting than the automakers products. Look at mpg in Europe...BY AMERICAN CARS. Sure you make many cars over a certain mpg compared to other, but how many more models in total do you make than them....forgot that. And Jeremy, if GM sales are doing so hot, how come we're displacing so many jobs to mexico...yeah that should be great for the American economy, even the car market...THEY"RE NOT WINNGING THE SUPPLY AND DEMAND BATTLE and it's coming at the cost of lower employment, dollars to pesos (inflation), and does not have a good effect on the overall economy. Sure it's not a huge effect, but it used to be a positive, not a negative. By the way, they didn't teach me that in high school, I could have told you in junior high. Opec has also just stated that it will need to invest $500 billion by 2020 to keep up with demand; don't think we won't be helping to pay that either. The cause of global warming is not clear, indeed, but the large majority of evidence suggests that there is a clear relation to the increase in rate of GW and the increasing ammounts of energy (pretty much carbons) we consume. It's a lot like religion, some choose to belive because of a relatively small ammount of indications, while others will not believe because they don't know the whole truth yet. But you can be certain that by the time you do know for sure, it will be too late. On the other hand, politicians and oil companies are making progress very hard,see the previous post. There is also nothing that says efficient cars have to look stupid either, in fact why not make them look cooler than the guzzlers? THEY DON'T WANT TO. And what about an e85 camaro, it won't be there. E85 has a significantly higher octane rating than even premium gas and would yield even more hp at smaller mpg if the car was made for E85 (compression ratios,piston strokes, etc.), that would be a huge step for alt. fuels, the nation, and the economy. V-8 turbo diesel engines for light trucks...Good for you but where are they? Besides, six cylinders could and would be more efficient and suitable. This is your future?...in turn my future, no thanks, besides oil is oil (diesel or not), what about biofuels, they have the power, I have the research, would you like it? Don't try to give me the whole compatibility with biodiesel, your cars have plenty of trouble staying with one fuel. As GM's Mr. Lutz all but said, they don't want to hurt suv sales. And all of you who say that people will buy what they want, or what they need are also missing it. While mom's drive to the store in their suburban (lets say the 2002 one to rep. the inferiority of the advancements made in mpg in 5 years)many struggle to even pay for gas, nevermind a vacation. What you WANT to buy affects the cost of THE VAST MAJORITY OF THINGS THAT OTHERS NEED, forget about a new car too. The SUVs in america are not what anyone needs. Sure you might need to haul around a few kids, but you don't need the extra ton. Just because you can afford it and waste the extra on gas doesn't mean that it doesn't get into others' pocketbooks. Americans seem buy in favor of looks, not function. My girlfriend and her family will not buy anything but an SUV. She refused to look at any cars when she got her first vehicle and came up with all these reasons (I need the space, cars make me claustrophobic...) why she needed an SUV...she lived alone and never used the room. Now that the newer jettas came out, she would get it (the new reasoning due to "it's cute.") Thats probably enough to chew, if you want more e-mail me. Bottom line: American buyers and automakers are just as addicted to SUVs as we are to oil, and, like oil, we need to accomodate sooner than later. Look,my point is not stop making SUVs, thats lame and just not realistic. Rather, it's offering the choice of driving one at a 20mpg range or 30mpg range. Your right, GM has done lots of research and made good progress, but why would they spend all that money, come up with lots of tech., but still make gars with a substantially less mpg rating in one country and not the other? So keep decieving and suddenly sending thousands of your hardest workers home not being able to pay rent or put a hot meal on the table (seen it with my own eyes, don't try it). You've lost my business, now for sure, and are losing a bunch more daily. Everything you do is in the interest of higher profit, somewhat understandible; but then you lie about it and decieve your very own buyers and communities, dispicable

Posted by: Jon Cortellacci on June 6, 2007 10:12 PM

I was recently in the Market for A Denali for my business and a Cadillac for my wife. I changed my mind when I saw that blowhard, druggie. Rush Limbaugh promoting GMC.. The last thing I would do would help finance such a loud mouth liar. I have since purchased a Lexus and A Toyoto Highlander to fill my needs. Thanks for the wake up call

Posted by: Al Nelson on August 4, 2007 2:22 PM

I for one do not believe that GM is doing anything to reduce dependence on petroleum. It seems to me that cars have been getting 20 to 30 mpg for ever! We need 40 to 50 mpg now! i know it's do-able and GM should take a BIG risk and just give people what they want. All this screwing around, or perceived screwing around, is absolutely hurting GM's rep.

Posted by: Peter Mars on January 23, 2008 11:59 PM

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