Jim Dollinger's Plan for a Return to Greatness

[eaton53]

Originally Posted by Buickman

they took one of the best programs GM ever had and completely screwed it up. perfect example of how out of touch executives negatively impact sales with their thoughtless, penny pinching, pencil pushing. really a sore subject for many, many people.

Well, Buickman... it took them how long to come up with the brilliant idea to allow GM points on Saturn? I hollered about this no-brainer for quite awhile before it actually happened.

So, what's your opinion on Saturn pricing? To be frank, it sucks and it's kicking their ass... IMO most people like to deal. If they have to have One Price, put it on the window but let the dealer determine it.

[SierraGS]

Great plan,

The Rendezvous issue is a valid one, this was a good vehicle (not great by any stretch) but good and represented good value for the money provided good MPG and had excellent space utilization considering the time it was designed. A friend of mine owns one and both he and his wife love it, this from owners of more than a few Toyota’s and Subaru’s.

The great MPG, smooth ride, reliability and maneuverability make it a keeper, he plans on driving it into the ground. GM should have kept it around with some minor “freshening” giving Buick dealers a “go to” vehicle to close a sale when a prospective Enclave buyer finds that it will not fit their budget.

This brings up some questions for Jim.

Do you still get many prospective buyers wanting a new Regal or LeSabre with a 3800?

A friend of my dad’s went to a local Buick dealer with checkbook in hand to buy a new LeSabre and of course was told they are out of production at which time he went home disappointed and a little angry at GM for dropping his LeSabre. Before you flame this guys “lack of knowledge” I can tell you from selling cars that it is not unusual, many buyers do not keep up with every change made in lineups and buyers who are very happy with their favorite model just assume since it is a great car to them, the company making it feels the same (not always).

To me GM is making a mistake dropping the 3800 from the Buick line, this is an engine that can compete in today’s high MPG/low cost environment where buyers are looking for the most bang for their buck (in MPG not HP). The 3800 represents a unique offering in the mid-size/large car market and one with a large and loyal following, something that makes car deals and enables you to maintain profits.

As MonaroSS pointed out:
“It would also mean they should hold off on spending money on Corolla. Why? Because a car you make unchanged for six years nearly doubles the profit on fixed costs of a car that you amortise over three years. Even if demand is lower for Corolla than it could be because it is a little outdated, better to sell a well amortised version in a market clamouring for smaller cars than to sell more of a car that is needing to first pay off it’s fixed development costs.”
By the way MonaroSS understands what Kaizen is really about, and I know something about this subject and “Lean Thinking”, our company has run seminars with our customers to train them on the subject, some of whom are the largest in the world and #1 in their industry.

Many will post “how outdated”, “low Tech” etc. etc., but they are missing the point of SELLING cars buyers are willing to BUY and ones that do not meet their expectations of cost/MPG. The 3.6L HF V6 is a great engine and will be the main V6 used in the future, but the future for GM is now and what sells today is low cost/high MPG and the 3800 delivers. The 3800 can still generate RETAIL sales and revenue for GM today, it just needs the chance.

In fact the LaCrosse with the 3800 should continue production if at all possible and it’s replacement named Invicta (if it has not already), but with the Super option list put onto the CXL trim. It should retain the 6-passenger seating option especially on the top level CXL trim since it again is an “exclusive” feature (except Impala) in its segment. Before everyone piles on as what a “bad idea” this is I would like Buickman to give us some feedback I can tell you from personal experience with the Dodge Intrepid that these cars sell since many buyers look at a car the size of the LaCrosse and “expect” it to offer 6-passenger seating (albeit “temporary” seating at best). I have looked at LaCrosse’s with the 6-passenger bench and it is a neat setup with room for storage and best of all (for me) the ability to “stretch out” my legs by moving them side to side without hitting the console. A console (with floor shift) that is becoming obsolete with steering wheel paddle shifters and “hand brakes” moved to the floor or soon electronically controlled. Give me the stretch out room with a well placed folding armrest in place of a console and some storage space under the center cushion.

If the 3800 and LaCrosse go away GM has to bump up the 3500 MPG from 18/29 to 19/30 which GM should be able to so by implementing the XFE mods used on the Cobalt, put this engine into the Malibu LS, 1LT and 2LT retail vehicles with MSRP (2008 numbers) of $21,500 (LS), $22,634 (1LT) and $24,490 (2LT) allowing $1,000 on LS and $800 (LT) models for the 3500 and Hydraulic Power Steering, and ask Buickman if he thinks there would be a market for such Malibu models.

These are (2) examples of vehicles GM could offer with little or no cost and enjoy increased sales revenue for RETAIL sales while making loyal Buick buyers (and some new ones – believe it or not) happy.

As a play on the AARP idea, GM should offer members special lease deals with lower fixed prices for maintenance like oil changes and tire rotations as well as “multi-lease” discounts, waiving initiation fees and requiring little or no money down for repeat customers. Many older buyers like to have a new car every 2-3 years so they can travel without worry and as a “treat” to themselves for years of hard work and a “fixed” rate for maintenance correspond to their “fixed” income. And providing dealers with well maintained trades that will command top price as “certified used” cars.

Just a few ideas.

[Buickman]

hi folks. been swamped with 72 Hour Sale. sold 31 so far myself plus two houses this week. was up way too late last night following and responding to this thread. absolutely beat. will read through and reply tomorrow evening. right now have to get some sleep.

goodnight to all.

jd

[SierraGS]

Originally Posted by Buickman

hi folks. been swamped with 72 Hour Sale. sold 31 so far myself plus two houses this week. was up way too late last night following and responding to this thread. absolutely beat. will read through and reply tomorrow evening. right now have to get some sleep.

goodnight to all.

jd

From a fellow GM shareholder, Thank You for your hard work and congratulations on the 31 sales (hope there were no "mini's")

Rest up and look forward to your thoughts.

[Ming]

Originally Posted by Buickman

hi folks. been swamped with 72 Hour Sale. sold 31 so far myself plus two houses this week.

And we're just past hump day!

[BigAls87Z28]

Well, all good ideas, but IMO none will be able to help bring GM back to power.

I first think that dealers as a whole, from sales people to the service center, needs to be revamped. There first needs to be a revamp in sales people and how they get paid. Removing the threat of going to see a car salesman is what is the #1 fear in buying a car.
If someone is on the fence between a Malibu and a Camry, both priced the same, but the Chevy dealer has a straight foward sales team, without worrying about getting hammerd into some crazy deal and being nailed, they will go Malibu.

GM has given dealers the product to sell, yet we see no return. So that means that its on the dealers end that is goofing it up. Its not that GM card doesnt return anything, or lack of knowlage of product, but the fact that GM dealers are dark and dismal places to buy cars.
GM has its problems, but I think that most of its problems revolve around dealers. Make the dealer different, and people will return. No more con-artists, no more sneeky deals, no more high pressure tactics. All must be gone.

[unkillsam]

I am doing my part to help. Thinking about a leftover 08 HHR that's too loaded up for anyone around here to buy it. Use 0% for 72 combined with my GMS.

I will decide in the next 24 hours on weather to pull the trigger or not.

[Buickman]

much to read and many responses due, however this 72 Hour thing is taking it's toll. do appreciate all the input but will have to wait...possibly 'til the weekend as I am thoroughly whipped. want to give this proper thought and be able to offer solid replies. nite.

[lio45]

Originally Posted by 2002 Caddy

Its even more aggravating when you note that this plan has been around for at least 5 years.

IIRC, Buickman was trying to sell the Plan to GM... maybe that's why they decided to pass...? (and try on their own?)

Had they been given "Return to Greatness" on a platter, free to use, they'd probably have applied at least some of these steps. (A few of them are really no-brainers, easy with guaranteed immediate positive results.)

Correct me if I'm wrong...

BTW, congratulations for your excellent ideas... I'm glad to see you gaining momentum. Keep up the good work!

[Buickman]

[quote=sv7887;1436897]

Coupled with GM's improving product, RTG would bring some dynamite results.
...agreed

I think you get it in terms of understanding that axing divisions will NOT return GM to profitability.
...hasn't yet

Hummer is a popular status symbol overseas. Why scrap it?
...to enrich the banksters

How can such a great company keep bringing such inept managers into the fold?
...lack of accountability and who you know

The fact that these guys got caught with their pants down on $138 oil is just beyond me. The writing on the wall in terms of oil has been there for quite a while.
...they didn't

I share your sentiments over the fate of this great and once proud company.
...what can we do about it?

[Buickman]

[quote=Ming;1436902]

I was under the impression that you thought your plan could single-handedly turn around GM regardless of product.
...in retrospect, I was somewhat brash. just came off from having LaNeve go backwards on me and let it affect my attitude and it obviously showed.

But in the absence of product discussion I read that product was not as important, and read into it something that wasn't there.
...you're so right about product. the first twenty steps deal with planting flowers and sprucing up the place through marketing. you're talking about planting trees, vitally important for the long run and takes time.

Now if they'll only let me redeem the $3K or so I've accumulated on my GM card
...another example of the disastrous marketing which has turned customers against us. you're loyal enough to stay in the game, many less so simply changed brands.

[Buickman]

[quote=member12;1436919]I think it's mostly a good plan.

I hope that you keep pushing it quietly, people will eventually listen.
...duly noted sir.

[Buickman]

Originally Posted by windvale

The Buickman obviously has a passion, instinct - and dare I say perhaps a genius for his job - selling cars. Problem is, most big US companies don't seem to reward passion...they reward blandness and careerism. It's what's made GM the company it is today.

The companies that do reward passion (Apple computers, etc.) are growing. GM is a corporate glacier retreating to a new ice age.

Sorry Jim, but the Rick looks down his well honed corporate nose at someone like you and see's something between an uncircumcised Philistine and a Neantherthal...

his vision isn't all that, apparently neither is his perception.

difference between GM and a dairy farm?
...cream rising to the top.

[Buickman]

[quote=56 Starchief;1436933]

I know people think PR is BS, but PR done right is very effective at bringing a well-run company's story to the people
...right on the money and an underlying precept of RTG and critical to profitable implementation. let Reuters and Associated press carry our releases and spread the message at no cost to us. if we do productive and effective things without spending money, we have to be more profitable. simple math.

However, as many have alluded to, you need to really tone down your tune and just cut to the facts. I stopped taking you seriously years ago because of your undertones of arrogance, when you really deserve credit for a logical marketing plan.
...based on the number of similar comments, guess my approach wasn't the best.

I just believe this company can't be run by financiers anymore.
...you'd think that financiers would have had us in better financial position.

You just can't cut yourself to profitability - and that, compounded with bad strategic decisions, brand mismanagement, and bad business transactions have been his major, major flaw that would not have been revealed leading a much more fundamentally strong GM.
...one of the most profound statements in this thread.

[Buickman]

Originally Posted by dav305z

I think this is the first time I've seen your plan in its entirety. Some of it is a bit Detroit-centric (I don't think many spouses will be excited to be pampered in Detroit), but overall, it's a solid plan. It aggravates me that GM hasn't already implemented many of these steps on their own without being told.

You'd probably have more success with GM and LaNeve and such by playing politics and even eating humble pie. First, I would make clear to them and everyone else that your plan addresses the sales/service side. It's not a complete "return to greatness." This isn't a put-down. I agree with you that the dealership experience is critical, and that GM is woefully behind. GM certainly needs someone to focus on the service aspect. Just amke sure you sell it as such. I'd imagine when someone like LaNeve or Wagoner hears you say you have a simple 20 step plan to save the ompany, they're automatically put-off. After all, they have been trying to save the company full-time for 15 years, and know that it is a very complex, difficult issue. In other words, you're probably insulting them.

The only other question I'd have is how you would go about implementing some of these steps. Whenever I complain to corporate about a GM dealer or service experience (and it has been more than once), they reply that they have limited control over what the dealers actually do. So GM can go and design a terrific RWD sports sedan, and price it just right, and then the local Pontiac dealer can raise that price $10k with impunity. How could you twist dealers arms to make the encessary changes in the way they sell cars?

...that in and of itself shows the trouble, our image and that of Detroit. let's bring them here and show them what we're made of. take the winners, our strongest horses and let them drive aroung the tracks at Milford, look at the works in progress at the styling studios, show them the corporate headquarters show they get to know us. shoe the spouses the Fox Theatre, Comerica Park, Ford Field, and The Joe. pamper them in our finest spas. let's get the message out there by word of mouth that Motown is Downtown.

...not a "simple twenty point plan" only released first twenty steps, there's plenty more where these came from. some are very powerful indeed
...didn't burn a bridge with those guys, I blew it up.

...RTG is implemented in a scripted series of steps much like how Bill Walsh scripted the first twenty plays of each football game. then he made adjustments. getting the dealers to once again trust GM is crucial to our success. basically tough we have to step away from the retail process and let the dealers sell the cars. the market will determine their longevity. we need to focus on having a positive relationship and a helping attitude. the dealers are our strength, they need our support, and will join in once they see that we really haved changed. RTG is sound and they are logical businesspeople. see no conflict or trouble here.