Jim Dollinger's Plan for a Return to Greatness

[zete]

Buickman, the tone of your suggestions is just right. It's neither defensive nor offensive, simply factual and many of the ideas are ones that could be implemented quickly. I also like how short and sweet each one is, which is great in our sound bite culture.

I will attest to the fact that loyalty to GM does not seem to get any type of benefit. I like the fact one of your points addresses this. GM is effectively saying we'd rather you leave and come back than if you stay. Rather silly.

In fact, the loyalty could be something as simple as providing an extra year or two of warranty -- maybe pushing the bumper-to-bumper to 5 years to match the engine and drivetrain for those GM customers that remain loyal. Some may figure it costs GM money, but when you see GM putting down $1k as conquest cash an extra 2 years of warranty would not cost GM $1k/retained sale -- especially if their cars are now truly well built as they won't be coming in for that service. And the advantage of the extended warranty for loyal GM customers is that it truly costs GM very little. For those cars that have no problems it actually will cost them $0.

I do hope someone at GM listens to your comments as they're phrased much better than I've ever seen before.

[Buickman]

Originally Posted by 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.

no doubt the 3800 is a fine engine, still popular, at least here in mid Michgan. part of the trouble with it is politics. GM wants out of Flint and has demolished virtually all of the Buick complex except for the engine plant. that's got more to do with the end of the 3800 than anything. for sure it is in high demand in the used car market as people here know it will last 200,000 miles easy with proper maintenance. I had a 95 Riviera, drove it to 185,000, gave it my daughter who drove it til 235,000 and sold it for $1500 still running. shame to see it go. no doubt it would still be a great seller.

[Buickman]

Originally Posted by zete

Buickman, the tone of your suggestions is just right. It's neither defensive nor offensive, simply factual and many of the ideas are ones that could be implemented quickly. I also like how short and sweet each one is, which is great in our sound bite culture.

I will attest to the fact that loyalty to GM does not seem to get any type of benefit. I like the fact one of your points addresses this. GM is effectively saying we'd rather you leave and come back than if you stay. Rather silly.

In fact, the loyalty could be something as simple as providing an extra year or two of warranty -- maybe pushing the bumper-to-bumper to 5 years to match the engine and drivetrain for those GM customers that remain loyal. Some may figure it costs GM money, but when you see GM putting down $1k as conquest cash an extra 2 years of warranty would not cost GM $1k/retained sale -- especially if their cars are now truly well built as they won't be coming in for that service. And the advantage of the extended warranty for loyal GM customers is that it truly costs GM very little. For those cars that have no problems it actually will cost them $0.

I do hope someone at GM listens to your comments as they're phrased much better than I've ever seen before.

thanks Zete. I find interacting with members here to be very helpful and informative. the criticism is usually constructive and there are many useful ideas presented. over the past few years, we have gotten to know and understand each other, developed mutual respect iin spite of differing opinions and positions, found some humor, and had fun. reading and posting on this site has become a part of my daily life and I really enjoy the time spent.

going forward, we all know what GM's problems are. now it's time for developing solutions and figuring out how to get them implemented.

you're on to something with the loyal thing, but not sure it can be done through differing warranties. one of the steps is to have a constant $1000 incentive for loyalists. in conjunction, we cannot offer the same thing to those with competitive makes as doing so would negate the benefit to our loyal customers.

[zete]

Originally Posted by Buickman

thanks Zete. I find interacting with members here to be very helpful and informative. the criticism is usually constructive and there are many useful ideas presented. over the past few years, we have gotten to know and understand each other, developed mutual respect iin spite of differing opinions and positions, found some humor, and had fun. reading and posting on this site has become a part of my daily life and I really enjoy the time spent.

going forward, we all know what GM's problems are. now it's time for developing solutions and figuring out how to get them implemented.

you're on to something with the loyal thing, but not sure it can be done through differing warranties. one of the steps is to have a constant $1000 incentive for loyalists. in conjunction, we cannot offer the same thing to those with competitive makes as doing so would negate the benefit to our loyal customers.

Most folks on this site tend to be passionate and do want to help. We all get cranky sometimes . I do think most try to understand we're all different.

I wish there was some way of offering the warranty to loyal customers. I don't see why that couldn't be the loyalty program itself. It doesn't preclude a conquest from converting their $1k or whatever into a few extra years of warranty.

I do think GM would do well if they just upped their warranty to a full 5 years on all their regular cars and 7 years on Buick and Cadillac. It would go a long way to show people that GM believes in their vehicles. If they truly require little or not repairs for the first 5 years then this should cost GM nothing. GM can even up the prices slightly to ensure they cover the cost of the added warranty, they must have the room especially on a high end car. I do think enticing folks into their entry level vehicles needs a new tactic and since it's the perceived lack of quality that hinders sales, perhaps an extended warranty would help. The partial warranty just looks like GM trusts their drivetrains but not the rest of the car. Perception, again.

Keep up the passion. Hopefully things will work out.

BTW, how you liking your Enclave? I'm loving ours. Goes in this week for its first oil change. Flawless so far.

[Buickman]

Originally Posted by zete

Most folks on this site tend to be passionate and do want to help. We all get cranky sometimes . I do think most try to understand we're all different.

I wish there was some way of offering the warranty to loyal customers. I don't see why that couldn't be the loyalty program itself. It doesn't preclude a conquest from converting their $1k or whatever into a few extra years of warranty.

I do think GM would do well if they just upped their warranty to a full 5 years on all their regular cars and 7 years on Buick and Cadillac. It would go a long way to show people that GM believes in their vehicles. If they truly require little or not repairs for the first 5 years then this should cost GM nothing. GM can even up the prices slightly to ensure they cover the cost of the added warranty, they must have the room especially on a high end car. I do think enticing folks into their entry level vehicles needs a new tactic and since it's the perceived lack of quality that hinders sales, perhaps an extended warranty would help. The partial warranty just looks like GM trusts their drivetrains but not the rest of the car. Perception, again.

Keep up the passion. Hopefully things will work out.

BTW, how you liking your Enclave? I'm loving ours. Goes in this week for its first oil change. Flawless so far.

it's cool 'cept 4 the drive by wire. fix soon. hate the throttle respose.

btw, you have been an inspiration, along w/ fellow members. decided to launch takeover (don't underestimate, big ideas and vast contacts). my psychotherapist says it's not narcissism when you actually can do what you dream. private email list soon. ah nuts, no guts, no glory. serious......

[RB35SLT]

Great stuff, Buickman

[Buickman]

Originally Posted by RB35SLT

Great stuff, Buickman

glad you like it, more glad if GM would try it.

[Lunden]

I respect your loyalty for GM Buickman.

And I do NOT say this out of disrespect...

But I know I can write a much better plan without the sales experience.

For Example...

Why doesn't Chevy have at least one car in the very afforadeable range that a collector in the future would want to have yet today the masses would buy in droves..

Like the VW Bug and Mini of old?

Cheap, reliable, easy to upgrade and worth holding onto....Let's not forget good on gas..

I will say however I think you should keep it up

[SierraGS]

Originally Posted by Buickman

no doubt the 3800 is a fine engine, still popular, at least here in mid Michgan. part of the trouble with it is politics. GM wants out of Flint and has demolished virtually all of the Buick complex except for the engine plant. that's got more to do with the end of the 3800 than anything. for sure it is in high demand in the used car market as people here know it will last 200,000 miles easy with proper maintenance. I had a 95 Riviera, drove it to 185,000, gave it my daughter who drove it til 235,000 and sold it for $1500 still running. shame to see it go. no doubt it would still be a great seller.

The 3800 is popular in SoCal (believe it or not), there are a lot of Hot Rodders out here that know how good the 3800 is and they KNOW cars and what the good engines are and what the junk is. Many of these guys own 3800 powered cars for daily drivers because of it's reliabilty and MPG, and believe me they could be driving any car they wanted.

If the LaCrosse had maintained the Regal's engine line-up or copied the Grand Prix 3800, 3800 SC (260 HP) 5.3L (303 HP) and focused on luxury amenites for the first (2) years it would have sold better and GM would have been able to keep the price down to facilitate Century owners into the LaCrosse. The Century was one of Buick's best sellers and many Century owners felt "left out" when the LaCrosse came out. Buick needed to take a year or two to get Century/Regal owners used to the idea the LaCrosse was replacing both of them, then with the profits from good sales volume GM could have introduced the 3.6L as a replacement for the 3800 SC giving the 3.6L fans a chance to get one in a LaCrosse and building on sales momentum with a "new" engine option with a MCE. GM did not do that so they are left with modest sales which are falling and another missed opportunity and the need to spend more marketing $$$ on the new LaCrosse or Invicta. Most of this money should not be required, but will be due to short sighted planning and an incomplete understanding of the market.

[SierraGS]

Jim, Two questions on the 72 hour sale.

Are you getting buyers who do not qualify for the 0% but still buy?

How do you feel about the extension?

[zete]

Originally Posted by Buickman

it's cool 'cept 4 the drive by wire. fix soon. hate the throttle respose.

btw, you have been an inspiration, along w/ fellow members. decided to launch takeover (don't underestimate, big ideas and vast contacts). my psychotherapist says it's not narcissism when you actually can do what you dream. private email list soon. ah nuts, no guts, no glory. serious......

I don't have a problem with the drive-by-wire. The throttle response is a bit odd at times, but it's obviously trying to save fuel. Overall, it's a gem of a vehicle. It still garners stares. Unfortunately there are three of them on my street now! One identical to mine in colour and everything and another one nearly identical, except in white. I think there are at least 6 in my small neighbourhood. I was alone a few months ago but now they're everywhere. Sigh.

Dreaming is always a good thing to do. Shoot for the stars, worst case you'll hit the moon. It's something I tell everyone I've ever mentored as well as to my kids: Dream big. Too many dream small and wonder why they feel like they've not accomplished much.

[Buickman]

Originally Posted by SierraGS

Jim, Two questions on the 72 hour sale.

Are you getting buyers who do not qualify for the 0% but still buy?

How do you feel about the extension?

so far I haven't run into anyone who couldn't qualify but it does happen.

as to the extension, I knew it would happen as they couldn't resist enticing dealers to stay open over the Fourth. of course, I never would have had the sale in the first place. we spent tens of millions to lose money and further damage our brands. I've preaching against this form of marketing for many years and to get rid of Wagoner as the one responsible for allowing it to continue.

[yoblues]

Originally Posted by Lunden

I respect your loyalty for GM Buickman.

And I do NOT say this out of disrespect...

But I know I can write a much better plan without the sales experience.

For Example...

Why doesn't Chevy have at least one car in the very afforadeable range that a collector in the future would want to have yet today the masses would buy in droves..

Like the VW Bug and Mini of old?

Cheap, reliable, easy to upgrade and worth holding onto....Let's not forget good on gas..

I will say however I think you should keep it up

I believe Chevy did have such an idea. It was called the Chevy Nomad concept. They decided not to build it..............

[SierraGS]

Originally Posted by yoblues

I believe Chevy did have such an idea. It was called the Chevy Nomad concept. They decided not to build it..............

I agree, with the need for "must have" high MPG vehicles why is the Alpha program not running full tilt?

The Alpha platform would be the basis for cars like the Nomad and exciting sport coupe/sedans in the 3-Series mold with small I-4 engines as base powertrains and their lighter weight over the Zeta even offer small (4.3L) V8 power with 30 MPG ratings.

The best part is these cars WOULD NOT NEED INCENTIVES to sell them!!!

[2002 Caddy]

I thought of another idea (are we up to 22 or 23)

GM cars have a bit of an issue with resale value... which unfortunately the RenCen hasn't figured out impacts new car value.

So here is my idea and it comes from a personal pet peeve... Ever try to direct hook up an MP3 Player to a 2002 STS with the Bose Radio? It's pretty much impossible... Why does GM make it so?

What If GM offered "upgrades" to existing models...

What if I could take my Seville into a dealer and have them upgrade the radio so that it has an MP3 jack. Or upgrade the radio to a NAV system, or Upgrade to XM, or upgrade the suspension system to Magna ride...

What if they sold DIY "kits" over the parts counter?

You get the customer
1) Back into the dealer for something good not something broken
2) Feeling good about his/her car as it now has a new feature they want
3) You're making money selling parts
4) Older cars become more desirable, resale goes up... Which makes the newer tin worth more.

In years gone by GM used to do this "quietly". They had retrofit key-less entry systems for Allante's and they had Twilight sentinels kits for GN Regals and Cutlasses. And lets not forget the 350 HO third gen Camaro engine swap, or the "Hot Cam" and LT4 upgrade kits for 4th Gen Camaros. Sadly recently this has reversed to a point where the General now refuses to upgrade cars at any price... Onstar anyone

And hand in hand with this GM needs to do a better job of engaging the aftermarket. GM techs regularly turn over the source code and definition files to the PCM's of the Corvette and Trucks to third party tuners... GM should also do this for the High end luxury cars and the econoboxes too... Help the tuners build the ultimate CTS/STS/DTS etc. Or even better offer tuner packages though the dealers like Toyota does with TRD (which I like to pronounce TuRD).

Just a thought...