GM Memo: "Young people increasingly excluding us from consideration"

[Perian]

Link: http://www.detnews.com/apps/pbcs.dll...612230378/1148




GM memo outlines comeback challenges:
Frank report identifies inflexibility, shifting demographics as threats to giant automaker.

Bill Vlasic / The Detroit News

Where General Motors Corp. once boasted of its size and strength in the U.S. market, GM has now turned an increasingly critical eye on the weaknesses that threaten its fledgling turnaround.

In an internal planning document obtained by The Detroit News, GM's global research unit takes an unusually candid and harsh look at the automaker's declining position and vulnerabilities in its home market.

The confidential study prepared for GM's top management describes the company as "big but outdated," and warns that "our advantages of size and economies of scale are eroding." It also declares that "lack of flexibility is GM's chief disadvantage."

And the document -- created by GM's influential Global Market and Industry Analysis division and marked confidential -- confirms what industry observers have said is the automaker's central challenge in trying to halt a decades-long slide in the U.S. market share.

"The biggest challenge GM faces is that more and more people, especially the young, are excluding us from their consideration list," the study said.

Full article at link.

[Perian]

Originally Posted by Perian

"The biggest challenge GM faces is that more and more people, especially the young, are excluding us from their consideration list," the study said.

Amen.

This is the only reason Saturn/Hummer still exist.

Saturn/Hummer are just about GM's only hope to pull in non-consids into the fold.

They give GM something they have been missing: Time to reshape the other divisional product lines.

.

[Ramair-WS6]

There is nothing really new here. I believe Wagonner and Lutz pretty much have known this for a couple of years.

I know alot of people here like taking about the new GMT900's, Camaro, Kappa twins, and for good reason. I wonder thought if people realize that Epsilon II is going to be the platform that is going to make or break GM's turnaround. EPII is going to have to be the proverbial "homerun" if GM is going to survive,

[clenfers]

What would happen if GM would just cut out the middle man. Start their own dealerships and pass a large part of the savings on to consumers. Say a new Z28 that a MODERN dealer charges high markups and gets dealer kickbacks and keeps dealer cash - that car might be sold to the dealer for 16k then they get us for 24k. Imagine a GM factory dealership where the outlet support was added to the price and you could get the Z28 for 19K direct from GM, the thousands of dollars the public wastes on dealers could help kids get affordable cars and some people would then spend the savings on moving to upscale models. America could take back alot of its market share across the board if this was done with all models.

The Battan Death March guys could put that in their U-238 pipe and smoke it.

[GMsElite]

The General isnt as incompetant as I thought. Theyre really trying to turn things now. If they do loose the #1 spot in the coming years, I do believe they will regain it because theyre now taking things seriously.

[Tomko]

Well that memorandum reads like it could have been written by Robert Farago.

[Tomko]

Originally Posted by clenfers

What would happen if GM would just cut out the middle man. Start their own dealerships and pass a large part of the savings on to consumers. Say a new Z28 that a MODERN dealer charges high markups and gets dealer kickbacks and keeps dealer cash - that car might be sold to the dealer for 16k then they get us for 24k. Imagine a GM factory dealership where the outlet support was added to the price and you could get the Z28 for 19K direct from GM, the thousands of dollars the public wastes on dealers could help kids get affordable cars and some people would then spend the savings on moving to upscale models. America could take back alot of its market share across the board if this was done with all models.

This is an interesting proposition, but my first thought goes to service. If GM cuts out the dealers, who will invest the money in equipment, training and skilled resources to service our now factory direct vehicles?

[espo19047]

Originally Posted by Tomko

This is an interesting proposition, but my first thought goes to service. If GM cuts out the dealers, who will invest the money in equipment, training and skilled resources to service our now factory direct vehicles?

I agree with you. Some people write first think second.

Originally Posted by Tomko

Originally Posted by clenfers
Say a new Z28 that a MODERN dealer charges high markups and gets dealer kickbacks and keeps dealer cash - that car might be sold to the dealer for 16k then they get us for 24k. Imagine a GM factory dealership where the outlet support was added to the price and you could get the Z28 for 19K direct from GM, the thousands of dollars the public wastes on dealers could help kids get affordable cars and some people would then spend the savings on moving to upscale models. America could take back alot of its market share across the board if this was done with all models.

How terribly misinformed can you be? Do you really think there will be a $9000. mark up?

[mucker15]

Originally Posted by Ramair-WS6

There is nothing really new here. I believe Wagonner and Lutz pretty much have known this for a couple of years.

I know alot of people here like taking about the new GMT900's, Camaro, Kappa twins, and for good reason. I wonder thought if people realize that Epsilon II is going to be the platform that is going to make or break GM's turnaround. EPII is going to have to be the proverbial "homerun" if GM is going to survive,

I agree they really need a high value mass produced class leading car. Is the next Malibu EP 2? It looks good to me so far. They need to make the car better than the imports and more affordable. The 900s will continue to do great, the Kappa cars and the Camaro will bring excitment and much needed show room traffic, but the Malibu will be the key.

[clenfers]

You would be surprised how much money the dealership makes as a whole after all is said and done. Plus if you would READ before posting you would have seen that I added in for GM factory dealership support training/equipment.

However I have to wonder if you guys work for stealerships yourselves due to your statements!

[Joe in T.O.]

GM shouldn't have to give away cars to get market share. Americans and Canadians alike should boycott Japanese and Korean cars altogether. Only then will we see a better economy.

[Havasavana]

Originally Posted by clenfers

What would happen if GM would just cut out the middle man. Start their own dealerships and pass a large part of the savings on to consumers. Say a new Z28 that a MODERN dealer charges high markups and gets dealer kickbacks and keeps dealer cash - that car might be sold to the dealer for 16k then they get us for 24k. Imagine a GM factory dealership where the outlet support was added to the price and you could get the Z28 for 19K direct from GM, the thousands of dollars the public wastes on dealers could help kids get affordable cars and some people would then spend the savings on moving to upscale models. America could take back alot of its market share across the board if this was done with all models.

The Battan Death March guys could put that in their U-238 pipe and smoke it.

I'd be interested in your detailed estimate of how the money that you think is going to the dealer, in general, is distributed. That is, how much goes to pay local taxes, electricity, building maintenance, local advertising, pay/commission to the people who do the selling, paperwork internal to the dealership, vehicle prep, dealer tech (warranty and other repair), and finally, profit to the owner of the dealership and how much of that would have to be paid to an non-owner who managed the place if GM owned it. Then how much could be taken off the price of a vehicle if your plan were adopted.

[Psionic Wibbly]

Originally Posted by Tomko

Well that memorandum reads like it could have been written by Robert Farago.

unfortunately it is written by GM themselves

[Psionic Wibbly]

Originally Posted by Joe in T.O.

GM shouldn't have to give away cars to get market share. Americans and Canadians alike should boycott Japanese and Korean cars altogether. Only then will we see a better economy.

what are your feelings about boycotting mexican cars? or for that matter canadian cars? german?

[mucker15]

Originally Posted by clenfers

You would be surprised how much money the dealership makes as a whole after all is said and done. Plus if you would READ before posting you would have seen that I added in for GM factory dealership support training/equipment.

However I have to wonder if you guys work for stealerships yourselves due to your statements!

Some do.....