"Perhaps a smack in the head was what GM needed,"

[Ming]

RUNNING ON FUMES
By JENNIFER GOULD KEIL
March 20, 2005
www.nypost.com

Detroit heads to Manhattan this week on a tank that is running low on gas.

The New York International Auto Show gets under way just as General Motors announced a brutal 37 percent profit decline for the fourth quarter. Based on sluggish sales estimates and production cutbacks, things don't look much better for the start of 2005

"Detroit is under siege," said Dan Gorrell, an automotive expert at research and consulting firm Strategic Vision. "The competitive environment is brutal — with the Japanese, Koreans and now even the Chinese coming to the U.S. market."

Detroit is even being attacked on its home turf, as Toyota, Nissan and Honda come up with their own versions of the full-size pickup truck, Gorrell said.

As Asian rivals test out new categories and debut in novative designs, GM and Ford have been slower to shift gears. Toyota has revamped its RAV4 four times in the past decade, while Ford has yet to redesign its similar small SUV, the Ford Escape, which it introduced five years ago.

Ford's biggest problem is a lack of imagination, said Art Spinella, president of auto research group CNW Marketing Research. "Ford's products aren't exciting enough," he said. "They lack adventure in their designs, and the two biggest forces driving consumers to buy are design and incentive."

On a more positive note, AutoWeek Editor Dutch Mandel believes that if Detroit automakers interpret the bad news as a wake-up call, there's still time to get back on track.

"Perhaps a smack in the head was what GM needed," Mandel said. "I have confidence in the intelligence of the people in Detroit to be able to fix what's wrong."

Full Article Here: http://www.nypost.com/business/41412.htm

[goblue]

GM needs a Cadillac style renessaince in all of its brands, and frankly Ford needs the same. It's possible. It takes a commitment to not releasing a new vehicle unless its best in class. Thats why Lacrosse and G6 aren't getting it done. It's also why Lucerne will get hurt as well. It's why the CSVs should have gotten a hiatus. Best in class releases also stop the rebates if priced right, and reverse the stereotypes. Unfortunately GM needs money to do it. Retirees, and especially the UAW need to help, now.

Increasing marketshare and resale takes three things: Fresh styling, appropriate pricing, and best in class. 3800 and 4T65E don't cut it.

This is why, even if the CSVs sell - and make a little money, the damage to GM is much greater - makes GM look second class to release a vehicle that is so average to below average against the current competition.

[ByTheLake]

I agree with goblue. GM must never release a product unless it is best in its class. No compromises. Period. That means engines & transmissions, too.

If GM still has excuses as to why feels it needs to use antique engines & transmissions, solid rear axles where the competition has independent rear suspension, unimaginative styling, etc, then it may as well tell its shareholders that it is dedicated to mediocrity.

God, please ... no more 'stop-gap' vehicles like LaCrosse and the CSVs ... heck, if Kia can get a new generation Sedona minivan ready for this fall, on a new platform w/independent rear suspension, why the heck is GM still using an ancient platform? It kills me that GM cars stick around for 8 (or more) years. That has to change, too.

GM has had a "smack in the head" every decade of my life and it hasn't sunk in yet. Time for wholesale leadership change. We need GM leadership that inspires tireless innovation, that is constantly visible publicly as corporate cheerleaders, not just once a quarter when the numbers come out. No more finance guys ... we need product people at the top that drive cars, not get driven in a limo to work every day. How can you lead a top auto company when you don't even drive a car?

[AndrewGS]

Originally Posted by Ming

Toyota has revamped its RAV4 four times in the past decade, while Ford has yet to redesign its similar small SUV, the Ford Escape, which it introduced five years ago.

Blatantly untrue.

[Snafu_SS]

i totally agree with the rebirth of gm. it needs to occur across all brands.

Theres light starting to appear at the end of the tunnel when you read an article on the new cobalt or G6. But then you hear about slow sales of new cars and the use of tranny's and motors that are good, but not good enough compared to what the others are using, and the light just gets further and further away.

what im hoping is that this is the first step in the process. gm has a long hard road ahead, and maybe their taking it one small step at a time. redesigning the impala,freshening the monte, all this might have been done to tryin establish a foot hold to keep gm's head somewhat above water while they try to develop all new platforms or find new solutions to old problems...basically they've got a lot of cars and trucks to work on and its gonna take a lot of money and time, which are two of the things gm is nearly out of.

[Snafu_SS]

oh the rav4, that piece of plastic with pencil thin control arms and wheels that are cambered to prevent it from rolling over and has no rear bumper?? maybe ford hasnt redesigned the escape because its good enough to keep goin? isnt one fo the best selling small suvs, and doesnt it have a hybrid drivetrain comin which i dont think yota has in its rav 4. dont tryin fix what aint broken!!

[GrandNationalGNX]

Im depressed, Detroit cant do this, japan is doing this, the koreans are doing this?!!3##W$#@ CANT GM JUST SAY OK TIME TO GO KICK SOME ASS! AND JUST GO DO IT!

[AndrewGS]

Originally Posted by GrandNationalGNX

Im depressed, Detroit cant do this, japan is doing this, the koreans are doing this?!!3##W$#@ CANT GM JUST SAY OK TIME TO GO KICK SOME ASS! AND JUST GO DO IT!

No.

[mjd1001]

Since all of us are using the latest problems at GM coming to light to express our dissatisfaction with GM, I'll say that I still am a fan of GM Cars, but I do have 3 problems when considering a GM car now:

1. I like the idea of supporting American workers and American jobs, I just DON'T like the idea of supporting the UAW.

2. GM's cars seem to be behind in technology, even when a new car is launched. Nothign now is driving me crazy more than still having to wait for the 6 speed automatic in GM's new cars. It should have been here 2 years ago.

3. Resale values (and total cost of ownership). You can buy a GM car with the huge rebates and all, but 4 yeard down the road when you trade it in, you are STILL thousands of dollars behind the person who bought the comparable Honda.

[uujjj]

The only thing I fear is a knee-jerk reaction of cutting quality and R&D.

[AndrewGS]

Originally Posted by mjd1001

Since all of us are using the latest problems at GM coming to light to express our dissatisfaction with GM, I'll say that I still am a fan of GM Cars, but I do have 3 problems when considering a GM car now:

1. I like the idea of supporting American workers and American jobs, I just DON'T like the idea of supporting the UAW.

2. GM's cars seem to be behind in technology, even when a new car is launched. Nothign now is driving me crazy more than still having to wait for the 6 speed automatic in GM's new cars. It should have been here 2 years ago.

3. Resale values (and total cost of ownership). You can buy a GM car with the huge rebates and all, but 4 yeard down the road when you trade it in, you are STILL thousands of dollars behind the person who bought the comparable Honda.

Well, if you're in the small-car market there's some light. The Toyota Corolla is built by NUMMI, which is part GM and employs non-UAW Americans, and it still holds it value pretty darn well.

Otherwise, buy used. Used GM cars are a great buy, and are pretty easy to service or have serviced. At least then there will be an excuse for older technology.

[mrfunji]

goblue and ByTheLake are exactly right. GM's biggest problem to generating sales momentum is it's image. Customer's don't give respect to the General like they do to it's rivals. I'm sure if Toyota released a G6 clone, it would sell far better than GM's version just because "it's a Toyota".

Focusing on making all new vehicles best in class is really the only way to change this. Drill it through the customers head's that a GM vehicle is the best vehicle money can buy for what they want, and I'll bet most will buy one.

Although I think the number of models needs to go down in order for this to happen. 1 new car needs to replace 2/3 old ones (i.e. LaCrosse, Lucerne, G8).

I'll be happy in the future when American's buy cars becuase "it's GM." The days of "Baseball, Hot Dogs, Apple Pie and Chevrolet" need to return.

[ImajV]

Right now, they need to focus on getting fuel economy and interoris of next gen GMT900s right. next gen CTS must be on par with 3 series performance. And dual-mode hybrids need to be brought onto the market ASAP. Put the Graphyte into production!!

[Kar Krazie]

Why are we falling so far behind. Before you know it Kia and Hyundai are going to start to sell more than GM. We can beat these auto makers easy. Why doesn't GM put huge V-8's in their SUV's like the one in the Trailblazer SS? They need to get off their butts and get to work!

[72lemanscvbl]

Toyota is not taking market shares with SS packages and Halo vehicles. SS packages, SSR, low volume GTO, while all neat, have got to be selling more than a few thousand a year to really add anything to the bottom line. Its gotta be a product people want to begin with, for an SS to really make an impact. Even Solstice/Sky are not big volume cars. The smart thing about a 300 is that it offers a cool car that will fit the need of the average car buyer (ie: 4 doors and roomy). 1/2 their sales (i believe I've read) are Hemi.

PT Cruiser....4 doors. Honda makes a pickup...4 doors. What if Honda started with a Pickup Convertible...what would be the point. You have the right idea with the G6, but what the heck with the marketing. I don't think anyone knows what it is. Does the Toyota buyer even look at a G6 because they can't figure out what its supposed to be, performance/sport, or good value or what?

Determine what kind of car you want to make GM. Camry is a basic, safe, reliable car with good resale. Do you think Camry sales would shift 50% to a 300 hp version of the car? NO. How many people are really gonna buy an SS Malibu? Stop with the small niche crap.