Quote:
Originally Posted by Ming
I had the same reaction to this as I do to most of your posts, Jim.
You are clearly well informed on the art of selling cars. And I think most, probably all of your points are worth implementing. The GM card I can vouch for being broken, and for me it's because of the puny redemption limits on smaller, less profit-packed, fuel efficient cars.
But I think what you illustrate here is the difference between a saavy GM Salesman and Company Loyalist, and a GM Product Fan like me.
In other words, I don't see much of a focus on product in your list, aside from the annual updates. And I guess I'd expect a list like this from you to be much different from the list of "how to fix GM" that, say, an Engineer who is passionate about cars and winning the technology battle (but who knows nothing of how to sell new cars to people who don't particularly need them) might write.
From what I'm reading, you'd be fine with GM selling old 200 horsepower 3800 Buicks ad infinitum if they'd just add some Planned Obsolescence in to each model year. Forget what the competition is doing. Beat the customer into submission with an array of sales tactics. Play on brand loyalty. Dazzle them with the Wookie in the corner. Get them in that car today, whatever it takes.
But there's a reason that the Prius is a household name, and it wasn't just an array of sales tactics from Toyota that made it happen.
Product matters too. I think you know this, but it is hard to find mention of product, or what kind of product can save GM, in your list here, or your posts in the past. It's a subject you seem to stealthily avoid -- possibly because you don't have an opinion one way or the other - or you prefer to leave the product engineering and design up to other people?
I often wonder, are you really a fan of GM product, or would you be happy selling anything GM, as long as it will turn a buck? I'm not being critical of you personally here, I'm just curious. I'm sure someone like me would get a lot of raised eyebrows and disapproving stares if I went into a dealership lined with SUVs and told the salesmen that I thought the way for GM to save itself was to master the art of selling smaller, more fuel efficient sedans, hatches and wagons that would put Toyota and Honda to shame. After all, the dealerships and salesmen love selling those profit-packed SUVs and large cars with the bloated MSRP's just as much as GM does.
All that said, it is refreshing in a way to see how someone with a focus on sales would attack GM's decline, here on a GM fansite that is product-centric. I just cannot agree fully with the approach, because I see nothing in this article that makes the points about fuel-inefficient products that I did not too long after you proposed your list in the Winter of 2005/6. See here: "GM in America is a Truck and SUV Company" - Shaking the Gas Guzzler Image Note the date I wrote it, and the price of gasoline back then. Was I psychic? No, but I saw GM sinking deeper and deeper into an addiction to the "Devil's Candy" (as one poster put it here) of Truck and SUV profits.
I also have worked with Japanese automotive workers in the past, and I know their PASSION for engineering cars - yes, even 4-cylinder cars - and a sense of competition that the Ron Zarella 3-brands of toothpaste style of marketing could never have hoped to match. As my co-worker once put it, "GM is a Marketing Company, Honda is an Engineering Company".
You can only polish a turd (or a lineup of turds) so much, and putting the 3400 in the Torrent, calling it "Pontiac's Commitment to Total Performance" --- now that was an example of some spin that only a salesman could love. And the buying public, lead by critical reviews, saw through it.
But in truth, a fresh approach like yours from the sales side, combined with my product wake-up calls to GM...well, we could have made a fine team. (ha ha  ) Of course, I'm just an armchair product quarterback, and don't even work for GM or the automotive industry for that matter...
Now I'm thinking that it's possibly too little, too late, and am guessing that is one reason you are showing us the plan you once kept secret. You either want to show us ho you tried to change the tide, or you are hoping in a last act of desperation to save GM from itself.
Good luck. |
I agree that superior product makes for a self seller, like the original Buick Valve in Head engine. Billy always liked a product that sold itself, whether a fine cigar, ellliptical spring carriage, Buick engine, or Frigidaire. we must remember this whole thing starts when somebody sells something. now I don't claim to possess any engineering skills but I am sure our people do, as do our stylists. what I do know is how to treat people, all the people, and create a team atmosphere in which we all pull together to make this happen, built upon trust.
as to style, let's keep in mind that the American public buys cars kind of like they vote for elected officials. they weigh the issues very carefully, then go in and vote for the best looking candidate. I mentioned this years ago on Autoline Detroit with John McElroy and in fact showed Roger Adams in the styling studio how to make an upcoming model more toothy in front and of substance in the fascia. he didn't listen and ironically Chrysler shortly thereafter came out with the 300. it wowed the country until the mechanics/quality came to light. we need to start with great appearance in and out and back it up with consistent reliability.
an interesting email came in to GeneralWatch the other day which I'd like to share regarding the "stuff" we have on the street today...
"Everybody seems determined to get a 6+speed automatic, but they all run the same rpm down the highway as the existing 4-speed automatics in OD. How's that possible? All of the top OD ratios are in the .65-.70 range, as they've always been. Hence, no fuel economy advantage. Only advantage is in performance with the deeper low gear.
"I rented a Malibu LTZ a few months ago, with the 3.6L High-Feature V-6 and the 6-speed automatic. Unfortunately, unless you get the direct injection 3.6L V-6, it gets worse fuel economy than the Buick 3800 it replaces (generally). Nor does it match the Chrysler 3.5L V-6 in economy, either, with similar power ratings (and a whole lot LESS high-tech stuff in the motor!).
"Incognito fuel economy champions are the Impala SS V-8s. I've rented a few of them that, if you run them at posted speed limits with the cruise (approx 65mph), they'll get 30-31mpg on the trip computer's Average Fuel Economy readings. Similar Pontiac Grand Prix GXPs don't quite do the same, though. With the V-8, it'll stay in 4cyl mode longer than the 3.9L V-6 will stay in 3cyl mode when you head up hills or over Interstate overpasses. Plus the 3.5L VVT V-6 in the normal Impalas and the Buick 3800 V-6.
"In reality, GM has had more high fuel economy vehicles over the past 10 years than any other car maker--period. Cars that'll get at least 28mpg on the highway without giving up size or comfort, either. Unfortunately, they haven't done a good enough job of communicating that fact."
point in fact...we've got great product which is competitive, trouble is that our message and potential brand reputation gets left behind by the worst marketing in the industry.
we can easily fix this, reduce marketing costs substantially by letting Associated Press/Reuters do our merchandising for us through news releases, increase sales, market share, restore health to the dealer body, strengthen the supplier base, encourage employees/retirees to once again actually believe in GM, and earn a substantial return for our shareholders (after of course we repair the financial mess we are in and drastically reduce the debt burden).
sounds good?
oh btw, I certainly don't have all the answers. in fact much of RTG has come from listening to "car guys" around the US for the last couple decades (that includes this forum particularly, I'm not here only to rant against Rick, but to learn). there's lots more to be discovered, many more ideas out there. if anything, I'll take credit for summarizing/organizing and for contributing my passion for this company.