Reuss: Judge us in mid-2014

[Canuck]

Reuss: Judge us in mid-2014
Automotive News
January 7, 2012
by Mike Colias

If you want a true read on the strength of General Motors in the U.S. market, wait until mid-2014.

That was the message last week from GM North America President Mark Reuss as he fended off questions about GM's 17.9 percent U.S. market share for 2012. That's down from 19.6 percent in 2011 and the first time GM has slipped below 18 percent since before the Great Depression, with the exception of the World War II years.

By mid-2014, GM will have executed the most extensive overhaul of its vehicle lineup in its history -- and maybe in the industry's history, Reuss says. That should help claw back market share that GM ceded in 2012, he implied.

"Our portfolio is the very oldest in the industry right now," Reuss told reporters and analysts after GM released its December sales figures. "If there's a switch that you're going to throw and say 'Judge us,' give us 18 months. And you're going to see the whole portfolio turned."

GM's December sales rose 5 percent, to 245,733 vehicles, trailing the industry's 9 percent growth. GM's sales for the year were up 4 percent, well below the industry's 13 percent gain.

Reuss and other GM executives acknowledged that the aging vehicle lineup -- made worse by product-development and investment delays stemming from GM's 2009 bankruptcy -- has hurt market share. They also cited the rebound of Japanese competitors, which reclaimed share they ceded after the March 2011 earthquake in Japan.

Full article at link.

[Tomko]

Oh my God I've been hearing the 'wait until next year' mantra from GM since the mid-1980s.

Stop the insanity!

[dslay04]

Oh my God I've been hearing the 'wait until next year' mantra from GM since the mid-1980s.

Stop the insanity!

I think its a fair request with so much new product coming in this year.

[GM-10]

I think its a fair request with so much new product coming in this year.

I think the fatigue from GM saying essentially "wait til next year" is a legitimate complaint.

[Dr. Show-Me]

As they ran out of money, GM shut down programs and operations to such an extent that the volt was the only remaining program moving forward. Think of it in terms of a huge train,miles long. When you. Bring it to a stop, just think how long it takes to get it back up to speed. From what I've read, the stoppage costs GM at least 2 years in delays

[Extreme4x4]

I agree. The issue is, none of the competitors are standing still. The comments would be very valid if the auto industry was in a vaccuum, with nobody but GM releasing new products.

Its not, so all of these new products that GM is coming out with, will be countered by new products by other manufacturers. Will they be good products?? No doubt. However to state that they will be the bestest of everyone, because I say so, is being short sighted.

[andretti]

As they ran out of money, GM shut down programs and operations to such an extent that the volt was the only remaining program moving forward. Think of it in terms of a huge train,miles long. When you. Bring it to a stop, just think how long it takes to get it back up to speed. From what I've read, the stoppage costs GM at least 2 years in delays

The bankruptcy is another excuse. To use your analogy, that train has been stopping for the last thirty years or more. Gm's market share erosion graph didn't get any worse with the bankruptcy but it didn't get any better either. GM is on a steady market share loss year after agonizing year with the same mantra from management "just wait 'til next year".

[jzchev28]

I agree. The issue is, none of the competitors are standing still. The comments would be very valid if the auto industry was in a vaccuum, with nobody but GM releasing new products.

Its not, so all of these new products that GM is coming out with, will be countered by new products by other manufacturers. Will they be good products?? No doubt. However to state that they will be the bestest of everyone, because I say so, is being short sighted.

Well I'm hoping they know something you don't know. They've proven with the ATS that they can be back on track. Time, as with anything, will tell.

[emh]

I think its a fair request with so much new product coming in this year.

GM has historically been way overconfident about the impact of upcoming products. So skepticism about "wait until next year" is entirely fair. Whether new products help or not will depend on:

1. Are the upcoming products closer to the ATS formula (benchmark and beat the best) or the Malibu formula (marginally improve on the last iteration but fall further behind the competition)

and

2. Even if the products are good, can GM's marketing convince the buying public the new products really are better than the competition (the jury is still out on this front even on the ATS and it's too early to tell).

[Dr. Show-Me]

The bankruptcy is another excuse. To use your analogy, that train has been stopping for the last thirty years or more. Gm's market share erosion graph didn't get any worse with the bankruptcy but it didn't get any better either. GM is on a steady market share loss year after agonizing year with the same mantra from management "just wait 'til next year".

You call it an excuse. I call it reality. You can't disregard it's importance and magnitude.
Or can you?
Please explain what you think is the result of GM's bankruptcy on GM's many facets.

[andretti]

You call it an excuse. I call it reality. You can't disregard it's importance and magnitude.
Or can you?
Please explain what you think is the result of GM's bankruptcy on GM's many facets.

You are quite correct. I didn't intend to imply I thought the bankruptcy wasn't important, on the contrary it is very important. The BK wasn't the solution for GM's problems nor the cause of their problems. What the bankruptcy did for GM was remove enough debt and legacy costs that GM can now be profitable at a much lower market share number. The problem is that the bankruptcy didn't address the underlying problem of bureaucracy and lethargy which has crept into GM over the years. GM is way too slow and ineffective in responding to markets in a timely fashion. Hence with the current market full of capable competitors GM falls further behind the curve with each passing year. Yes thanks to the favorable gov't help through the bankruptcy GM has gotten some breathing room but they need to change the underlying cause or it will be BK again in a few years. I don't believe GM will be profitable when their market share drops below 16%.

[ausrutherford]

Well I'm hoping they know something you don't know. They've proven with the ATS that they can be back on track. Time, as with anything, will tell.

Problem is...

They have proven to be excellent with the ATS, but mediocre with the new trucks, and downright awful with the Malibu. Mixed bag of success so far. I hope these other products we have not seen are more like the ATS.


Sent from my iPhone using AutoGuide.com App

[bballr4567]

What else new is coming? Tons of new product this year as well. I think by summer we should be seeing HUGE improvements. It would be great if GM stepped out on a ledge with its body styles though.

[andretti]

Problem is...

They have proven to be excellent with the ATS, but mediocre with the new trucks, and downright awful with the Malibu. Mixed bag of success so far. I hope these other products we have not seen are more like the ATS.


Sent from my iPhone using AutoGuide.com App

This may be the first post on GMI that we can ALL agree with. You stated the entire issue perfectly!

[Live001]

Problem is...

They have proven to be excellent with the ATS, but mediocre with the new trucks, and downright awful with the Malibu. Mixed bag of success so far. I hope these other products we have not seen are more like the ATS.


Sent from my iPhone using AutoGuide.com App

What's so mediocre about the trucks? We haven't seen any kind of test drives or reviews to even judge it yet.