Saving General Motors

[jason4225]

Here is an interesting article with a few highlights. There is much more at the link below.

Saving General Motors
Jerry Flint
Forbes.com

The crisis at General Motors is not of its making. The economy is weak, gasoline prices are at record levels and the U.S. auto industry is in a big slump. Much of the blame lies elsewhere, but the auto giant is in peril....

...That aside, what should GM managers do now?

For starters, it needs to launch a serious campaign to convince the U.S. government and public that the domestic industry is at risk and that it needs a "vacation," from any new regulations, including safety requirements.

As for product, GM needs to move fast to take 500 pounds of weight off its big pickup trucks and sport utility vehicles. This would make it possible to run those vehicles on six-cylinder motors, not V-8s.

GM needs an all-out effort to create and build a "B-sized" small car in North America. Ford Motor is doing it. Where is the GM small car? In the latest Consumer Reports magazine test of small cars, the Chevrolet Aveo (the small car GM sources from Korea) was the lightest one tested, with the smallest engine, and yet it had the poorest fuel economy. GM needs to come up with a different plan for a small car.

GM desperately needs a new small pickup truck.

GM must push money into Cadillac. That division's upcoming rear drive sedan, which targets the Mercedes E Class and BMW 5 Series, is crucial.

more at link:
http://www.forbes.com/2008/06/23/gm-...rtner=yahootix

[Uzzy]

Originally Posted by jason4225/Forbes.com

The crisis at General Motors is not of its making. The economy is weak, gasoline prices are at record levels and the U.S. auto industry is in a big slump. Much of the blame lies elsewhere, but the auto giant is in peril....

Much, but not all. GM can't blame everyone else, and I don't think that they are trying to. Everyone else is blaming only them, of course.

Originally Posted by jason4225/Forbes.com

...That aside, what should GM managers do now?

The same thing they do everynight, Pinky...try to take over the world!

Originally Posted by jason4225/Forbes.com

For starters, it needs to launch a serious campaign to convince the U.S. government and public that the domestic industry is at risk and that it needs a "vacation," from any new regulations, including safety requirements.

Well if they could kill CAFE, that would help but it shouldn't keep them from giving the fuel economy of their fleet the boost it needs. Also, many safety requirements are borderless now. With trying to streamline your products and make world cars, you have to be concerned about safety gear the world over. Putting it on all models is often cheaper than making special parts for certain markets. But GM doesn't have a lot of world cars right. That is another thing that they need to do for a turn around, however.

Originally Posted by jason4225/Forbes.com

As for product, GM needs to move fast to take 500 pounds of weight off its big pickup trucks and sport utility vehicles. This would make it possible to run those vehicles on six-cylinder motors, not V-8s.

Not just their trucks, most of their cars are too porky. This comes back to safety gear, but why are they heavier than their competitors?

Originally Posted by jason4225/Forbes.com

GM needs an all-out effort to create and build a "B-sized" small car in North America. Ford Motor is doing it. Where is the GM small car? In the latest Consumer Reports magazine test of small cars, the Chevrolet Aveo (the small car GM sources from Korea) was the lightest one tested, with the smallest engine, and yet it had the poorest fuel economy. GM needs to come up with a different plan for a small car.

This is why I don't like it much when "outsiders" write automotive articles, especially critcising ones, or trying to lend advice. GM is working hard on a B-segment car. The Aveo is getting an overhaul soon. The Opel Corsa could be wearing Saturn badges shortly and the Chevy Beat is being spotted already, so hopefully it's coming down the pipe fast. They do need these cars NOW! But it's not like they're not doing anything to get them. They did take to long to get started, perhaps.

[Buickman]

Return to Greatness.

[joemac]

Originally Posted by Buickman

Return to Greatness.

[paul38469]

I think that is the most positive article Flint has ever written on GM.

[guitarlix]

A lot of GM's current problems stem from severe mismanagement of its brands.

GM needs some drastic restructuring before it can be profitable and competitive. It's current model of operation with umpteen brands is simply NOT going to work.

That's the root cause. But management is instead focusing repeatedly on band aid fixes. Ultimately, just like I predicted over 2 years ago, they will be forced to look at how many brands they have. Now they're considering GMC....which is a good move. But they have at least 3 excess brands left over. People trying to pick Saturn over Buick or Pontiac are INSANE.

Product alone does not sell. Toyota and Honda have become very strong BRANDS in this country with very positive and strong brand equity......something the domestics totally lack at this point.

While the domestics are busy fixing their product issues from years of neglect, they're totally ignoring the brand equity side of things. You can't sell something without people wanting to buy it, and product alone won't do that. It's the same reason why Hyundai is struggling with such good product.

You can't develop a strong brand image by juggling these many brands. As far as which brand stays, even developing AWARENESS of the Saturn brand would take millions and would be a HUGE waste of resources and money. That needs to be the first brand that needs to go after GMC. Nobody in America cares a crap about German products. People who think that way are TOTALLY missing the point. Renaming Saturn to Opel would help a tiny bit but again, wouldn't really get you anywhere. Buick and Pontiac are FAR stronger brands and throwing those off away in place of Saturn would be a disastrous move.

Ultimately, blaming the American public or trying to redirect your sense of frustration at Asian companies is stupid and pointless. They're not the cause for what's happening now. Years of mismanagement is what has brought the domestics this far. Just because you brought out a few good products a year ago, don't expect the public to come rushing and buying. There are other products that are equally good on the market with far stronger brand recognition.

GM needs to eject a few brands to allow it to focus all its efforts on building brand equity while bringing product up to the level of competition as well. (actually, product HAS to exceed the competition every time) That is the only way back. Otherwise, the slide WILL continue.

[guitarlix]

Originally Posted by Uzzy

Well if they could kill CAFE, that would help but it shouldn't keep them from giving the fuel economy of their fleet the boost it needs.

THANK GOODNESS for CAFE. It it weren't for CAFE, the domestics would probably be dead and floating in the water by now.

[paul8488]

Originally Posted by jason4225

In the latest Consumer Reports magazine test of small cars, the Chevrolet Aveo (the small car GM sources from Korea) was the lightest one tested, with the smallest engine, and yet it had the poorest fuel economy.

This is horribly frustrating. How can GM manage this? The lightest car is the least fuel efficient of its peers. Did they just start making cars yesterday? Why can't they put a proper engine in their subcompact car? It's silly that they will soon have 4 similar Lambdas but not one proper subcompact in North America.

[osv_alero]

For once, maybe he is on to something. GM, Ford and Chrysler do not have the cash or government assistance that the Japanese makes do. They need government help our we might just loose them.

What about a petition started right here on GMInsidenews that pushes for government help of Americas most vital industry. The help should be in technology advancement and import tariffs.

[CobaltSScrazy]

I have to love the "Saving General Motors" thread with the Toyota/Scion advertisement above my quick reply, how ironic...

I like the idea of keeping the brands that they have and going with sales channels ...somewhat.

Chevrolet

Cadillac

GMC-Buick-Pontiac

Saturn-Saab

Hummer

period, thats the way it should be otherwise keep saturn separate and SAAB can just do what they're currently doing...paring up with subaru dealerships and kias and hyundais.

CobaltSS

[FierySolstice]

Originally Posted by jason4225

Here is an interesting article with a few highlights. There is much more at the link below.

Saving General Motors
Jerry Flint
Forbes.com

The crisis at General Motors is not of its making. The economy is weak, gasoline prices are at record levels and the U.S. auto industry is in a big slump. Much of the blame lies elsewhere, but the auto giant is in peril....

...That aside, what should GM managers do now?

For starters, it needs to launch a serious campaign to convince the U.S. government and public that the domestic industry is at risk and that it needs a "vacation," from any new regulations, including safety requirements.

As for product, GM needs to move fast to take 500 pounds of weight off its big pickup trucks and sport utility vehicles. This would make it possible to run those vehicles on six-cylinder motors, not V-8s.

GM needs an all-out effort to create and build a "B-sized" small car in North America. Ford Motor is doing it. Where is the GM small car? In the latest Consumer Reports magazine test of small cars, the Chevrolet Aveo (the small car GM sources from Korea) was the lightest one tested, with the smallest engine, and yet it had the poorest fuel economy. GM needs to come up with a different plan for a small car.

GM desperately needs a new small pickup truck.

GM must push money into Cadillac. That division's upcoming rear drive sedan, which targets the Mercedes E Class and BMW 5 Series, is crucial.

I agree with most of this, but why do they need a new small pickup? Does anyone really drive them anymore? You never hear of the Ranger/B-series truck or of the Dakota. I say cut them.

As for Cadillac, the CTS targets the E Class and 5 Series! They need a 3 series/C Class fighter and an S Class/7 Series fighter. Cadillac doesn't even have the basics, how are they going to keep up with the niche vehicles?

[CobaltSScrazy]

Originally Posted by FierySolstice

I agree with most of this, but why do they need a new small pickup? Does anyone really drive them anymore? You never hear of the Ranger/B-series truck or of the Dakota. I say cut them.

As for Cadillac, the CTS targets the E Class and 5 Series! They need a 3 series/C Class fighter and an S Class/7 Series fighter. Cadillac doesn't even have the basics, how are they going to keep up with the niche vehicles?

Seriously, I can't stand it when people try and compare CTS to the 3/C. Its really just irritating. It's priced that way, but thats because Cadillac is slowly building back its brand equity. They're going to have to sell at a lower price until brand equity is built back up (in like 10 years if they continuously keep working on improving the brand and its products, DEALERSHIPS, and marketing.)

CobaltSS

[MonaroSS]

Originally Posted by osv_alero

For once, maybe he is on to something. GM, Ford and Chrysler do not have the cash or government assistance that the Japanese makes do. They need government help our we might just loose them.

What about a petition started right here on GMInsidenews that pushes for government help of Americas most vital industry. The help should be in technology advancement and import tariffs.

One simple way that the US Federal Government could help US carmakers and also lower fuel consumption is to subsidize Aluminum introduction and recycling for US made vehicle components. This would only be for US assembled vehicles (other than for engines and gearboxes which already use Aluminum).

In other words, the reason GM etc don't use Aluminum body panels and suspension components and seat frames etc is because of cost compared to steel. But once the US has built up a fleet of Aluminum cars that begin to be recycled by Federal mandate for further US auto manufacturing use in ten years or so to provide cheaper Aluminum, then the subsidy can begin to come off and the US vehicle fleet will be much lighter and thus more fuel efficient.

This is one way to spend taxpayer’s dollars where they actually get to benefit from Aluminum building up in the national fleet. Because Federal law can mandate it be recycled for continuous future use in US autos then you pay for it once and then benefit from it forever and a day.

And as GM makes some of the heaviest vehicles it would benefit most from such a scheme.

[mpsrent]

Originally Posted by guitarlix

THANK GOODNESS for CAFE. It it weren't for CAFE, the domestics would probably be dead and floating in the water by now.

No kidding!! Without CAFE, the domestics would still be building cars and trucks that only got 10 mpg. Just imagine the recovery process they would be in as they tried to adopt to today's fuel prices.

[CADILLACSIXTEEN]

Originally Posted by jason4225

GM must push money into Cadillac. That division's upcoming rear drive sedan, which targets the Mercedes E Class and BMW 5 Series, is crucial.

Why is this such a hard concept?
The CTS is already out.... How do people not see that it competes with the E and 5? because of price? So what? It just proves GM can build it for less than overpriced BMW and Mercedes...
The "upcoming rear drive sedan" will compete with the 7-series and S-Class....
And the sedan after that will compete with the 3-series....

Here's proof... if the CTS competed with the 3-Series then the CTS-V would have 400hp to match the M3... but it doesnt... it has 550hp to annihilate the 5-Series