Commentary: What Chevrolet Needs to Compete

[nadepalma]

Originally Posted by 2648562

The Malibu name was great 30 some years ago. Now it just makes me want to vomit. I think it's best that Chevy shelve that name when the new Malibu comes around.

Which kinda ties into the "one name around the world" bit that mgescuro was getting at --- I wonder if GM would consider adopting "Epica" as the name for their mid-sizer over the Malibu nameplate? That would create parity (even if we're not selling the same exact vehicle) with the rest of the "mid-sizers" around the world that are sold under the Chevy nameplate.

I don't hate the Malibu name, just thinking out loud here and how strategy might fit into this.

[asim]

I agree, consistancy and a brand look will tie Chevrolet together.

[CobaltSScrazy]

product, product, product, thats what we need! make great products and you could name it anything and it won't matter.

[mgescuro]

Originally Posted by nadepalma

I think that if GM were to "start over" with their nameplates in the US this would make a great deal of sense -- as you point out, a Civic or Corolla are nameplates used in the US as well as in Europe, Asia, etc (even if the vehicles themselves are not based on the same platforms, are different sizes, fill different segments, etc.). I agree with your sentiments and think this would be the very best strategy --- but I don’t know if GM will go this route since there are already recognizable nameplates in the domestic market.

WHo knows what GM has planned for Chevrolet. They seem to have a strategy in the US... and then a strategy for the rest of the world. I just find it a waste of time for a brand that GM stats is going to be one of the global pillars of the company.

You just can't have a that kind of strategy in this competitive industry. Solidifying the nameplates will be the glue that holds everything together.

Originally Posted by nadepalma

I've read that GM’s idea in the European (and world) markets was to use names that were “easy on the tongue” so to speak, cause there isn't any kind of universal language and different forms of pronunciation. So they chose names that more people were able to pronounce (seeing as all of them end in a vowel) in markets like Spain, France, Italy as easily as they could be pronounced in England, Sweden, Germany, etc. There is something to be said about being able to actually pronounce a vehicles’ name and how that relates to marketing and an actual purchase or being turned away from one (I’m sure the psych and marketing majors could better explain it).

From a marketing perspective, you build the name of the product with a catchy name. THe easier it is for people to recognize the name, the better it is for that product, as it has a better chance of catching on.
Malibu ends in a vowel. And it also has that "California" appeal that people around the world seem to like.
Plus Monte Carlo also has an international feel to it as well. It's a well known car in the US. It's a well known casino area in Europe (and Las Vegas).

Ultimately, the naming convention needs to start somewhere. If Chevrolet is to build brand awareness globally, then they need to pick a name and stick with it. If Chevy wants to bring Epica to the US, call it Epica. Don't call it Nova.

I am aware of GM consolidating design and engineering and platform development under the global umbrella.

But I think you're getting a bit confused between the naming convention, the branding scheme, and product localization.
Assuming that GM's Next-gen platforms are as flexible as the platforms from Toyota and Honda, then it would be quite easy to stretch and narrow a platform or shrink and widen a platform to match the needs of a specific locale.
A US Accord is different from a Japanese Accord is different from a European Accord. But they're basically the same car. THe key is, they have the same name. Honda has built brand awareness. Brand recognition. Uses the same/similar platform. But is localized for each area.

I do'nt expect GM to pull it off overnight. It's taken Accord 30 years to get where it is. BUt if GM takes the initial steps toward this, then Chevrolet can start building its presence globally. Because the way I see it right now, there's "Global Chevy" and "American Chevy." It's a waste of time, money, and energy for GM. Consolidation can onlyimprove Chevy's global positioning.

This topic has really taken on an "advanced" viewpoint, where you need a business degree to follow some of the theories. But that's OK. GMI's all about "mature, intelligent discussion."

[mgescuro]

Originally Posted by CobaltSScrazy

product, product, product, thats what we need! make great products and you could name it anything and it won't matter.

It's more than that. GM needs to be cash conscious in its product development.
Also, you need to consider "what is a great product?" A lot of CHevy cars in the US are great for the US, but they leave a lot to be desired in the global scene. What Americans view as acceptable, Europeans view as trash.

How does GM reconcile the product differences? Does GM localize the product? If GM changes teh US Chevy too much, does it risk alienating customers. Etc.
It's actually a pretty complex situation.

Chevrolet needs to be a global brand. It's cars need to look and act global. And the nomenclature will help to do that.

[CobaltSScrazy]

Originally Posted by mgescuro

It's more than that. GM needs to be cash conscious in its product development.
Also, you need to consider "what is a great product?" A lot of CHevy cars in the US are great for the US, but they leave a lot to be desired in the global scene. What Americans view as acceptable, Europeans view as trash.

How does GM reconcile the product differences? Does GM localize the product? If GM changes teh US Chevy too much, does it risk alienating customers. Etc.
It's actually a pretty complex situation.

Chevrolet needs to be a global brand. It's cars need to look and act global. And the nomenclature will help to do that.

-of course they need to be cash conscious, they are borderline bankrupt!

- as you and nadepalma have said, you need to tailor vehicles to their respective markets, absolutely. make "great products" for each market and each market's demands whether it be design, mpg, quality, power, features, and any combination etc.

- as far as changing the us chevy too much, if its a clearly superior product and is intuitive and easy to use with an appealing bold american design language then it can be as revolutionary and changed as need be. if you alienate people who want floaty buick rides in a w-body impala, but win over camcord buyers who purchase the new one at msrp, then you negate your sales loss and increase your income as a result of the higher transaction price.

[mgescuro]

Originally Posted by CobaltSScrazy

- as you and nadepalma have said, you need to tailor vehicles to their respective markets, absolutely. make "great products" for each market and each market's demands whether it be design, mpg, quality, power, features, and any combination etc.

Oh yeah? Tell that to Cadillac.

[CobaltSScrazy]

Originally Posted by mgescuro

Oh yeah? Tell that to Cadillac.

here here, yeah i wish they would listen sometimes but playing into that is economies of scale and standardization of components etc. which as we both know isn't doing the bls or 9-3 ANY favors what so ever from a consumer standpoint but supposed helps GM pricewise.

i know i know, its not an excuse and the customer doesn't care about excuses as toyohondaundai don't offer any, i'm just plainly stating GM's financial reality shackle...unfortunately!!!

[nadepalma]

Originally Posted by mgescuro

WHo knows what GM has planned for Chevrolet. They seem to have a strategy in the US... and then a strategy for the rest of the world. I just find it a waste of time for a brand that GM stats is going to be one of the global pillars of the company.

You just can't have a that kind of strategy in this competitive industry. Solidifying the nameplates will be the glue that holds everything together.

Well we'll have to see what GM decides to do in the long run. Like I was pointing out earlier, I think you're strategy is sound, I just think that it's harder to implement simply b/c of brand/name recognition. And I think that you make a fine point that GM (for the moment) seems to have a two part strategy --- one for the rest of the world and one for the US (and you could include Canada/Mexico in that -- though there are some obvious differences), which seems like what Mazda does with the 6/Atenza, 3/Axela, etc. But I agree, I would love a brand like Malibu (or Epica, or whatever) be sold around the world so that GM can have world wide appeal for a specific name or vehicle. I would love to see this.

Perhaps the Aveo will be THAT first vehicle since the name and the vehicle are going to be sold all over the world as Chevrolets (except for South Korea, Vietnam and Australia...but that's another story). Maybe this will truly be the first contemporary Chevrolet that will be sold around the world in nearly all markets to gain a global reputation? (The Corvette doesn't count since the Vette is really it's own brand in Europe and other countries).

Originally Posted by mgescuro

From a marketing perspective, you build the name of the product with a catchy name. THe easier it is for people to recognize the name, the better it is for that product, as it has a better chance of catching on.

I can certainly agree with this. Does that mean that you feel some of the names they are planning on using for Europe like Epica, Aveo, Captiva, etc. aren't really good enough names? Just curious. I see you point, but I hope that GM is doing their research in selecting names. I think that names need to be catch, no doubt.

But I also think that some pretty uninspiring names have gotten great recognition after years and years of advertising -- names like E350 don't exactly set the heart-a-flutter, but you recognize it as a Benz or the name Camry doens't particularly make you imagine adrenaline action, but you automatically see it as a Toyota. Good marketing probably could take even the most dower (sp?) product and make it recognizable if you have the money for good advertising and the time to create a lasting impression on the public (that last point is key -- the Camry has had years of rock-solid reputation to make it as recognizable as it is).

Originally Posted by mgescuro

Malibu ends in a vowel. And it also has that "California" appeal that people around the world seem to like.
Plus Monte Carlo also has an international feel to it as well. It's a well known car in the US. It's a well known casino area in Europe (and Las Vegas).

This is true too. But I almost wonder if the Malibu name would work in Europe. I seem to remember "Malibu" being a trim package on a Fiat or Peugot or something from years and years ago. I might be wrong, but I seem to recall that. Malibu might work around the world -- if folks don't instantly remember the RWD vehicle that was so popular here in the States years and years ago. Monte Carlo may NOT work, however. I know that the name is great, but Lancia had a sports-car (the Monte Carlo/037) that was sold in Europe, it wouldn't catch. But that's just my thoughts on that.

Originally Posted by mgescuro

Ultimately, the naming convention needs to start somewhere. If Chevrolet is to build brand awareness globally, then they need to pick a name and stick with it. If Chevy wants to bring Epica to the US, call it Epica. Don't call it Nova.

I agree with you -- stick to a name and nurture it, don't go back to the well. But I also think that product determines a lot of that nurturing -- the Cavalier was widely recognized by the public -- but the image wasn't always good. So they ditched it. Probably a good move. Point is that nameplates need to be nurtured through a product that does well with the public. If you deliver a half-baked product, you're gonna get a name that slowly become tarnished.

Originally Posted by mgescuro

But I think you're getting a bit confused between the naming convention, the branding scheme, and product localization.
Assuming that GM's Next-gen platforms are as flexible as the platforms from Toyota and Honda, then it would be quite easy to stretch and narrow a platform or shrink and widen a platform to match the needs of a specific locale.
A US Accord is different from a Japanese Accord is different from a European Accord. But they're basically the same car. THe key is, they have the same name. Honda has built brand awareness. Brand recognition. Uses the same/similar platform. But is localized for each area.

I don't think I'm really confused on this point as much a I perhaps didn't make my point clearer than it should have been (sorry-I tend to get long winded). I agree with exactly what you're saying. I don't know what I said in my last post to take away from this point. In the example of the Accord -- they're all different (ours is longer/wider -- theirs is shorter/narrower, but all share similar, if not identical, underpinnings) but share a common name. Same goes for the Civic -- similar platform (if not exactly the same), different look, diferent body styles, dimensions, but same name. You could say the same for the Corolla as well.

Again, I agree. The point that I was making (where is maybe I started to confuse things) is that -- for example -- if GM decided to rename the next Malibu as the Epica (just the name, not the actual product) they could sell it here in the States with the same name/different car, even as they sell the GMDAT sourced vehicle around the rest of the world with the same name. I say this b/c other companies do the same thing -- like you say, the Euro Accord shares a little with ours -- but they look nothing alike and yet share the same name and fill similar roles. So GM could possibly do what others have done -- and that is reuse the same name around the world, but possibly have two different variants -- the US variant and the one around the rest of the world. So you'd still have commonality in the name/segment in which it serves, but you'd get slightly different styling (but with the same "Chevy Face" or "family recognition) and a size more inline with what is acceptable in local markets. This is just an example though -- obviously the best idea would be to sell the exact same product, with the same name, etc. But that rarely works out. I say that b/c our tastes here son't always align with tastes around the world -- just as the Civic, Accord, Corolla, etc are smaller than their US counterparts.

Originally Posted by mgescuro

I do'nt expect GM to pull it off overnight. It's taken Accord 30 years to get where it is. BUt if GM takes the initial steps toward this, then Chevrolet can start building its presence globally. Because the way I see it right now, there's "Global Chevy" and "American Chevy." It's a waste of time, money, and energy for GM. Consolidation can onlyimprove Chevy's global positioning.

Again, i agree with you, I just hope that the folks at the RenCen feel the same way. I think that there will obviously be differences between the US and the international markets -- I don't think we'll have to worry about the Colorado, Silverado, or Express Van making inroads around the world. There will obviously be products that are solely for the North American market. But I also think that where there is a way to get commonality, it should be pursued. But how will this play out? Will the Malibu supercede the Epica in the market when the platforms are consolidated finally at the end of the decade? (We all know that Ep. II will most likely replace the V250/Epica/Toaca's platform in South Korea and be produced there, so it's very possible the the next Malibu will share much will the next Epica). Will the Optra name win out over the Cobalt name for international markets? etc. How will it affect some markets like Canada where the Epica and Optra are actually sold right alongside the Malibu and the Cobalt (I still don't understand that, I really don't). These are some real questions if this is what they are thinking moving ahead.

Originally Posted by mgescuro

This topic has really taken on an "advanced" viewpoint, where you need a business degree to follow some of the theories. But that's OK. GMI's all about "mature, intelligent discussion."

hahaha, we do seem to have gotten to that level, haven't we? That's okay, I rather enjoy it. At least there are some of us on GMI who may delve a bit deeper into this and try to figure out what the General is up to. I only hope they are reading this and taking note!

[nadepalma]

Originally Posted by mgescuro

It's more than that. GM needs to be cash conscious in its product development.
Also, you need to consider "what is a great product?" A lot of CHevy cars in the US are great for the US, but they leave a lot to be desired in the global scene. What Americans view as acceptable, Europeans view as trash.

How does GM reconcile the product differences? Does GM localize the product? If GM changes teh US Chevy too much, does it risk alienating customers. Etc.
It's actually a pretty complex situation.

Chevrolet needs to be a global brand. It's cars need to look and act global. And the nomenclature will help to do that.

This is true as well and you're right it's very complex and not as cut and dry as it sounds. Global tastes run the gambit -- from styling to use of materials to handling and emissions, every place has it's own criteria.

But an equal point maybe that GM needs to raise the bar all over the world to create that consistency. Yes, it's true that names/nomenclature/style/etc matter -- but if GM starts to pay enough attention to the product details, etc. they may just raise the bar enough so that their products can be competitive around the world.

I think that we are starting to see that last point emerge -- it's going to take some time, but I definitely think that it is achievable.

If you look to VW or other Euro companies for an example, their products are accepted around the world -- but each is "tuned" to its target auidence. Americans prefer softer suspensions (that's what they tell us) so they fix that, we like leather in our luxury cars and it comes standard on US models, etc.

So GM could do this -- raise the bar so it's a good product around the world, but make each one have certain details that are specific to the target market.

[Bravada]

The last post by Nadepalma is spot-on! As concerns some other issues raised here:

1. Malibu, Monte Carlo and other names like that have been used on a number of trim levels or even models over the years. Only places like Basildon (Essex) are spared this grace. Nobody remembers Peugeot 405 Malibu (if there was ever one), Husky, St. Tropez and a million billion other "special editions". The problem would be only if somebody still held the right to the name, I believe that since Lancia ditched the Monte Carlo two decades ago, they have little claim to it.

2. The whole thing is to use consistent names throughout the world. See "Hyundai Sonata" - at first it was merely and also-ran most people wouldn't even notice, and now it's one of the stronger worldwide nameplates.

3. The "Epica", "Optra", "Captiva" etc. names are absolutely terrible, manufactured names, devoid of any charm and anchoring. Even "Tosca", "Verona", "Lacetti" or "Win(d)storm" would have been more meaningful and emotion-evoking.

4. What Chevrolet needs to compete worldwide is to add the "American heritage" and charm to its no-nonsense inexpensive offerings. Otherwise, what else does it have against the likes of Hyundai and Kia? I believe there should be a reasonable infusion of "American styling" and, of course, "heritage names". The Malibu might not have tailfins or a V8, but it can still be put side-by-side with its 60s and 70s namesakes and claim to be a descendant of their heritage. And that's what makes the difference. (in case you don't get my point, put Epica next to the 1964 Malibu and try this)

5. Contrary to Nova, some Chevrolet names like Impala (one of the ebst car names EVER), Monte Carlo, Malibu have really great international appeal. Even some defunct/wasted names are really "moving" - Astro, Corsica, Beretta or even Vega.

[KingElvis]

Originally Posted by GeryRx7

I am all for global names as long as they do their homework. Remember the Nova was called the Chevrolet Chevy in Mexico due to the word Nova meaning "doesn't go" in Spanish. Makes you wanna run right out and buy one now doesn't it.

That story is apocryphal. For one thing, the car was always called "Chevy" Nova was just a trim package. No one has ever shown evidence that sales suffered in Latin America or even that GM changed the name based on that.

Nova means Nova in Spanish. Would you refuse to buy a dining room set called "Notables." After all it implies no...table?

The Nova story? It's just an urban myth.

Having said that, however, I would say that the idea of "standardizing" Chevy is bound to fail. Honda makes one Accord for the US and another one for Europe. Also, even given the "Nova" myth, the Buick Lacrosse is a good example of the pitfalls of dictating names from on high (Detroit) to the rest of the world.

[maxaccel]

Originally Posted by megan

What about an AWD El Camino based on the Ute and Crewman that Holden offers. Or maybe based on the new RWD Impala. An AWD HHR and Maxx also woud be good. Kappa Nomad is a great idea also.

EXACTLY,why dont GM uses one drivetrain /suspensions for all the different cars ie why does Caddy and Holden/GTO have different suspensions when they are both GM,sure would save MILLIONS of R&D $$ imho.
Im pretty sure that average Caddy driver doesnt even know whats underneath their car anyway!
to quote mr Rolls Royce:
pick the best design and use that,if it doesnt exist create it.