GM says won't spend to regain No.1 carmaker rank-paper

[doh]

http://www.reuters.com/article/marke...0080112?rpc=44

GM would not "spend one dollar in order to be number one," global product chief Bob Lutz told industry newspaper Automobilwoche in an interview due to be published on Monday.

"Good product quality, the company's image and the profit for shareholders are more important goals than the top position in volume."

Toyota said on Thursday global vehicle sales rose 6 percent to 9.37 million units in 2007, almost certainly nudging out GM, which has not yet published full year figures but has been the biggest automaker in the world for decades.

Lutz added that he did not intend to retire until the market launch of the Chevrolet Volt plug-in hybrid in 2011 is underway.

[CobaltSScrazy]

so Volt is his crowning achievement...I like, as long as we don't falter after 2 product generations.

I'm glad he's focused not on volume per say, but on Product quality first, Corporate Image second, and third profit for shareholders____and thats the order I believe it should be. If product is great, and people have a positive image of GM again, then you most certainly will generate huge profits.

CobaltSScrazy

[Joevette]

its not like being #1 did them any good for the past 30 years

[alveress]

Originally Posted by Joevette

its not like being #1 did them any good for the past 30 years

Exactly my thoughts. This is a much better strategy then in times past for GM. I mean look at BMW, they don't need the volumn, to be profitable and well respected, and they are doing wonderful.

[jkennedy293]

I think the media has put too much emphasis on the whole volume thing. Until Toyota started getting close, they never mentioned a word about it.

[zete]

Actually, being #2 has huge advantages. Think of it this way. When the Volt comes out the media will be able to say:

GM did it without the vast monetary resources of Toyota which makes you wonder why Toyota wasn't able to bring us the Volt sooner, seeing as how they were the leader in hybrids for so long and had the cash to spend on the project. Instead, GM used its limited resources to usher in a new type of car.

You know it'll happen. Toyota has simply set themselves up for it to happen. When you're #1 and have buckets of cash and aren't leading the way the knives come out.

[t-rex]

I'm firmly in the Biggest Is Never The Best camp...

The most respected cars on Earth come from smaller manufacturers. I'd rather see GM producing quality cars with high accolades.

Soichiro Honda-san himself once quipped, and I paraphrase, Your best-selling car will never be your best car, and your best car will never be your best seller.

[FenwickHockey65]

What's more, being #1 makes companies cocky and arrogant. Take GM for example. My dad's told me countless stories where the engineers at Norwood would just tell them to hammer a part into the Camaros if it didn't fit correctly. Luckily, GM's improved drastically.
Now we see toyota doing the same exact thing, with cracking tailgates and faulty camshafts.

[AMERICA 123]

Originally Posted by Joevette

its not like being #1 did them any good for the past 30 years

Exactly .

Funny thing is they'll probably get it back pretty quickly - and thats not just on how well they will do - but also on where Toyotas going to take themselves . The Japanese market is not where you want 25% of your sales base to be - which is also only part of the story as well .

I think GM will be back on top and pulling away in 5 years or less .

Could even happen next year .

[The Law]

Gm needs to market each brand differently to effectively take back market shares.
2 euro, 2 American,Asian brands; Saturn & Saab are the 2 Euro.Chevy& Caddy American,and Pontiac & Buick Asian.Then once the ground work is set for those they can adapt to changes within the markets.

[FenwickHockey65]

First off, that will never work. Pontiac and Buick have been American for so long that it's ingrained in people's minds that they're American cars, no matter where their cars are sourced from.
Second, can you honestly imagine a Buick looking somewhat similar to anything out of toyota's toilet of a design department?
Finally, that's the worst advice I've ever heard. No offense or anything.

[HoosierRon]

Originally Posted by The Law

Gm needs to market each brand differently to effectively take back market shares.
2 euro, 2 American,Asian brands; Saturn & Saab are the 2 Euro.Chevy& Caddy American,and Pontiac & Buick Asian.Then once the ground work is set for those they can adapt to changes within the markets.

GM needs to market Pontiac as an Asian brand? Asian companies don't even market their brands as Asian brands.

[Butz]

Originally Posted by The Law

Gm needs to market each brand differently to effectively take back market shares.
2 euro, 2 American,Asian brands; Saturn & Saab are the 2 Euro.Chevy& Caddy American,and Pontiac & Buick Asian.Then once the ground work is set for those they can adapt to changes within the markets.

What are you talking about. Buick and Pontiac as Asian brands

Toyota waves the American flag why can't Pontiac?

[Xenon]

Originally Posted by Butz

What are you talking about. Buick and Pontiac as Asian brands

Toyota waves the American flag why can't Pontiac?

He meant as in main competitor, not literally go Asian, lol.

[Butz]

Originally Posted by Xenon

He meant as in main competitor, not literally go Asian, lol.

So if he is saying Pontiac should compete with Toyota, Nissan, Honda, Hyundai, etc.. Who will Chevrolet be competing with? Ford, Dodge? It's not like they have market share that can be taken away from them