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Old 11-08-2009, 02:51 PM   #134 (permalink)
SierraGS
4.6 Liter Northstar V8
 
Join Date: Feb 2007
Location: SoCal
Drives: '04 Sierra '02 Regal GS "05 PT Cruiser
Posts: 1,593
Re: GM Oct. Sales up 4%, Gains Market Share

Quote:
Originally Posted by cdp326 View Post
Also it appears you may be mixing the groups of new buyers and groups of past GM buyers together a bit in that last bit - it sounds like you are also trying to appeal to more than just the current GM buyers with the way its worded. Stick to proposing the 3500 Malibu for loyal buyers but the I4 will continue to be the volume appeal. From what I've gathered on this forum the GM OHV V6s aren't long for the midsize market so why direct more new buyers to them when you're also arguing GM is abandoning them now?
My thinking is that most current GM mid-size owners have an OHV V6 in them and that they are happy with them, so why not give them something that they are comfortable with in the Malibu, this eliminates one very large factor when trying to sell a car, and once they drive a new Malibu they will be very attracted to it - attracted enough to actually buy one.

The fact is that GM can directly market a Malibu 3500 V6 to 3,000,000 to 10,000,000 GM midsize customers at low cost/risk with a very large payoff in increased sales.

For very little risk GM can put the CURRENT Malibu at the top of the midsize sales charts, taking it from fifth place to an easy second and possibly first place making the Malibu the best selling car in the U.S.

Why should GM not do this and what is your plan to get the 2010 Malibu to the top of the sales charts?

Quote:
Originally Posted by cdp326 View Post
I'm not missing it at all. But you are criticizing others for supporting "GM following along with others" when you also try to propose a GM equivalent to the Fusion SE V6, basically following that model. You argue the Fusion has seen a surge in sales, but remember this is due to the extensive facelift, a huge marketing campaign and a large amount of incentives to push out the stock of the older models. Marketing for the Malibu mostly fell off and GM's efforts are currently focused on the Equinox/Terrain, LaCrosse, etc.

I think in time we will see the Malibu pattern its lineup after the new Equinox, which is both a good idea and will work very well IMHO.
The Equinox model will work but why are you waiting?

GM needs to take action now, not "wait till the next generation Malibu".
When is that going to stop?

The 2010 Fusion SE is selling very well due to it's compelling value and a review of dealer inventory levels show that most Fusion sales in 2009 are 2010 models with lower incentives than the current Malibu.

Matching the Fusion SE is not "following" it, GM offered a competitively price/content 2004 - 2007 Malibu 1LT and 2LT, trouble was the package it was wrapped in. If the 2004 - 2007 Malibu looked like the current one with the price/content of the 2004-2007 one, it would have sold much better. GM has gone backwards with the current Malibu and can easily correct the lack of a low price V6 model with Fog Lights and 6-way power seat that is a better value than competitors, the time for action is right now and with what GM has to work with.

Quote:
Originally Posted by cdp326 View Post
While I don't think a 3500 Malibu is a half-bad idea and I am impressed with the amount of thinking you've put into it, I don't think you're going to see substantial gains just from that. There are many other variables - news of GM bankruptcy/loans, owners that may not be satisfied with their OHV V6, owners that are unhappy with the discontinuation of Pontiac, owners that seek out the specific model name (Century, Grand Prix, etc), the Impala price overlap, and so on.
With the discontinuation of Pontiac much of it is in the initial stage where many say they won't buy another GM product. Years down the line, after the initial reaction, they may. I think the same will go for people looking for an OHV V6/general inexpensive V6 option.
I don't buy the loss of sales due to "news of GM bankruptcy/loans" and doesn't GM's increase in marketshare for October prove that?

Owners who do not like their OHV V6 have the 2.4L and 3.6L to choose from, which makes a direct market approach to them less risky, but since many do like their OHV V6 not having the 3500 V6 option increases the risk substantially and should be avioded. The 3500 V6 has not hurt Impala sales and the Impala regularly outsells the Malibu, proving that the 3500 V6 in a car is not a bad idea, so adding it to the Malibu can only improve sales.

Doing nothing with the 2010 Malibu is not an option - something has to be tried, so why not turn to your own loyal customer base and show that you are aware that they exist and are sincerely trying to offer them a product that they will be interested in?

GM needs to focus on selling as many 2010 - 2011 Malibus that it can and without jacking up rebates or spending millions in advertisements, and it can with a well executed low cost direct marketing approach to current owners and is a lot better than GM's decision to actively alienate 3 to 10 million current GM midsize owners who love the OHV V6 in their car and want another one in a new Malibu.

Quote:
Originally Posted by cdp326 View Post
Cue the free oil change coupons!
Correction - Cue the $1,000 to $3,000 rebates.
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