Overcoming GM's Worst Enemy

[ChevroletRevived]

Overcoming GM's Worst Enemy

A ChevroletRevived Rant

With most of GM's new products on par with their competititors, the conclusion seems to be: GM's greatest enemy isn't Toyota's products...it's what Toyota has that GM lacks. And that, my freind, is perception. Perception can make a product good...perception can make a product bad. That's how it works in the mind of the consumer. Perception is key to any corporations success. Good products, good PR...they all contribute to that perception. Perception is one advantage Toyota has at the moment. People perceive Toyotas to be better, more reliable, higher quality and better built. Therefore, they are. I have a freind that I talked to recently; he owns a Scion and a Lexus LS430. I asked him why he bought Toyota made vehicles. His response was ''Because Toyota builds better cars, and have better quality.....and they never ever have recalls''. I quickly explained Toyota's recent 16 model recall, and GM's and Toyota's J.D Power Ratings. Then, I explained OnStar, XM, the good warranties and excellent reliability GM cars have. Well, with his mind already made up that Toyota was the best, I asked him ''When was the last time you owned a GM made vehicle''? He reply? ''In the early 1980's, I had a work van given to me by my job''. That can't happen...GM needs to debunk the public's false view of Toyota. I have proposed a 4-Part Plan, that in due course, can raise and elevate GM's public perception, and make GM a more efficient and competitive company as a whole.


1. Promote

GM's vehicles do very well in J.D Power Surveys. GM vehicle interiors are high quality. Over 1 million E85 capable vehicles are on the road today. Hydrogen buses, hydrogen cars, hybrids...they are all in development, with some already on the road today. GM cars have some of the best MPG figures in the industry, GM cars are also some of the best values in their respective segments. GM has OnStar available and standard in almost every one of their models. GM plants get quality awards. GM has the top plants in North America. GM is the Number 1 automaker in the world, and Number 1 in this country by far. The Solstice has changed perceptions of Pontiac...the HHR and H3 are doing the same. Lutz was right on the money with those models.GM needs to promote these things. I propose an advertising push...one of the biggest in GM history. Keep pushing the HHR's sales success in CA, with fun, hip and colorful ads. We need to get the message out about Value Pricing. The ads need to push value, features, safety, quality and mpg. By showing the cars interiors in side by side comparos, showing the mpg, J.D Power Rankings, autoreviewer comments, ect GM really can change their perception in the American. We need to raise GM's public image and elevate perceptions. Toyota does things like this, GM needs to also.


2. Expose the Lie

Toyota sells big trucks and SUV's. Not every vehicle that they produce gets the best MPG in their class. GM needs to get this out...where is the Camry and Toyota on the J.D Power surveys? Who leads in reliability..quality? GM. But, most people think Toyota does. This needs to change.


3. Pull the Stunts

GM needs more PR stunts like the one they pulled in Chicago...the ''Chicago for Everyone Event''. GM exposed Toyota's weak spot, and used it as an advantage. An event in which Toyota gave $838,000 to the city park fund was turned into a PR disaster! I doubt the people that were turned away will buy ever buy a Toyota. I wouldn't either, if I came across the country, or from aroun the world even to see that park, and I was turned away! ( I know this information for a fact because I have a freind that lives in Chicago above the park in a high-rise building. He could see the red carpet, cars and people down below. He went down there to check it out. He said people were calling Toyota names..the reaction was very negative towards Toyota...it was, however much different for GM ) This was good PR to the people GM reached. Things like this elevate a company and a brand's image. We need more of that. GM has another problem: getting customers in showrooms to actually experience the vehicles and the changes themselves. Some people haven't been in a GM showroom since they bought a low-quality vehicle in the 80's! (I have proof of this) They have bought a Toyota or Honda, and have stuck with them ever since! That is why GM needs to get large amounts of people to see the new 06 models. Things like extra long warranties, ect. We need something like a 24 Hour Test Drive event....only to available to people with a late model Honda or Toyota. Run it for about 1 month, well publicize it, and it will get in lots of people. Or how about a special deal for people who trade in a Toyota or Honda on a new GM sedan? The OnStar Hot Button promotion was good also...GM needs to do something like that again in 06. This is an important aspect of perception....seeing the vehicles, driving them...that all raises the perception in a consumers mind. That's why getting people in to dealers is so important.


4. Focus, Consolidate

GM's message needs to be clear and consistent. GM needs to select a plan, and stick to it. Push Value Pricing. Focus the brands...have vehicles that are in keeping with a divisions goals and marketing message. We can't have overlap in the brands and models. We need to be lean and efficient. For instance, the Impala and Monte Carlo. Both have the same front end design, and are related in many ways. But, they are considered different models. Why is this so? By having both of them use the name Impala, the sales numbers can be greatly increased. Honda and Toyota do this. Why can't GM? GM's share of the mid-size sedan market is bigger then Honda's or Toyota's. But the way we have it, we can't say we have a best seller, or a car that's sales are on par or close to it's competitors. This needs to change.

--------------------------------------------------------------------------In closing, there is alot of other things that need to be done. There is the very sensitive issues of the UAW, closing plants, laying of workers, ect. Those things can and need to be done. Those things will all contribute to a healthier, leaner and more efficient company. The subjects I have touched on however, mainly are dealing with perception issues. The reason why I have chosen this subject is because with Perception as a handicap, GM can't really experience the renaissance in sales it is looking for. The products can be as good or better then another's, but if the public perception is turned against them, they won't get the recognition, nor the sales that they are looking for.

[plane]

GM needs a class leading vehicle in a major market segment.
The Malibu is a great effort, but falls short in looks due to bean-counter flat-sides.
The Cobalt is a great small car, but in the land of $2.50 a gallon gas, needs to get 8-10 more miles per gallon to trump rivals.
Where's the high efficiency diesel in a mid-size vehicle comparable to the Prius? Where are the GM hybrids?
Why are we still using 4 speed transmissions when competitors have 5 and 6?
Add those accomplishments to those you've listed and GM is nearly unstoppable.

GM - Just do it!

[IAMCANADIAN]

Idea 1 has been used, so has Idea 2, but could be used a bit more throughly. Idea 3 sounds good, trade your non-GM vehicle for a GM and get $3000 cash back and include how good GM quality is etc. Idea 4 has been used a bit, but could be used more.

[IAMCANADIAN]

Originally Posted by plane

GM needs a class leading vehicle in a major market segment.
The Malibu is a great effort, but falls short in looks due to bean-counter flat-sides.
The Cobalt is a great small car, but in the land of $2.50 a gallon gas, need to get 8-10 more miles per gallon to trump rivals.
Where's the high efficiency diesel in a mid-size vehicle comparable to the Prius? Where are the GM hybrids?
Why are we still using 4 speed transmissions when competitors have 5 and 6?
Add those accomplishments to those you've listed and GM is nearly unstoppable.

GM - Just do it!

The Malibu, now beacuse of the SS, makes it competitive. The Cobalt has a 2.2L engine, that's pretty big and will suck more fuel than a smaller displacement engine, but the gas mileage is good enough. GM can advertise the fact that they do hybrids, not necessarily in cars, but buses and even full size pickup trucks and how they plan on improving the systeme etc. Most people don't care about the 4-speed auto, but GM should make it more clear that the 6-speed auto is coming in 2006 and 2007.

[ChevroletRevived]

Originally Posted by plane

GM needs a class leading vehicle in a major market segment.
The Malibu is a great effort, but falls short in looks due to bean-counter flat-sides.
The Cobalt is a great small car, but in the land of $2.50 a gallon gas, need to get 8-10 more miles per gallon to trump rivals.
Where's the high efficiency diesel in a mid-size vehicle comparable to the Prius? Where are the GM hybrids?
Why are we still using 4 speed transmissions when competitors have 5 and 6?
Add those accomplishments to those you've listed and GM is nearly unstoppable.

GM - Just do it!

Yes, yes. I can completely agree with you. But, even with a great car, the perception issue is a very important thing. Good, even great class leading cars won't do good if the public's view on them is dismal. Thank you everyone for liking my ideas....I encourage you to say what you think and your opinion.

[jzchev28]

I've been reading this site for many months now, and this is my first post
anyways enough of an intoduction. I agree with your plan there revived, people just have this grand disillusion that Toilet-a is on some high pedestal that no auto maker can touch. We all know that gm is building high quality, fuel efficient, and powerfull cars and trucks....but too many americans dont seem to realize this. GM needs more and better advertising pushing this. They've got a hell of a lot worth bragging about. Get people in the cars to check them out and drive them....they will see. someone email this thread to the CEO of GM thanks

[kmacleod]

Yesterday My Wife and I went to the local Chevy/Pontiac/Buick/GMC dealer
(oil change for her car) and went for a spin in a G6 GT.

Needless to say my wife was smitten with it (The panaramic sunroof is a must according to her).

This is coming from a former Honda Accord owner...........

This car will be on her short list........................


Ken

[dindak]

I agree with all this completely.

GM also needs to get better product out there. Good products aren't enough to win Toyota buyers back. Outstanding product is what GM needs. The HHR is close, Solstice hits the mark. More please!

[member12]

GMs problem is not only bean counter decisions, but cheap materials and parts. GM cars will go a long way, but they will have tons of little problems with things that shouldn't break.

GM issues way more recalls that pretty much anyone else.
GM still fairs poorly in consumer surveys.
GM skimps out by fitting cars with cheap tires, wheels, and interiors
GM suppliers make unreliable parts.

Anything that has to do with the car moving won't break. Its the little things GM needs to keep an eye on, and the more crap you add to a car, the more that will break.

If we added up all the major engine, transmission, and brake recalls, GM might have the least amount of recalls out of the largest 4 automakers. Tailgate straps and electric power steering- that kind of thing can easily be avoided because those are bean counter- caused problems.

That and the GM 800 trucks were no where near as reliable as the C/K series trucks. New designs are really troublesome for GM (and Ford)- and that is something the need to work on.

People need to feel like the made the right choice the entire time they own the car. That means expensive looking styling in and out, Better quality control, and watching over suppliers to make sure they are giving you the best. Gm needs to put more effort into trouble free motoring. Every time something improves, they add another feature to a car that gives them trouble. These things must be designed to last longer.

The quickest way to fix perception is to offer much longer warranties than the competition. I don't know why GM doesn't want to stand by their products more than 3/36K. If they are really good, this shouldn't cost GM any money. Its time to step up.

Someone please tell me what happened in Chicago?

[Whirling_Dervish]

To paraphrase: Its the product stupid.

GM historically does not anticipate well where the market is going. They are constantly out of step in terms of product.

Simple logic: With oil being a finite resource and consumption growing expodentially from India, and Chinese demand soon to rival and surpass our own, what will that do to oil prices? And how will that effect what we need to offer? The obvious answer is smaller more efficient vehicles. And how long did it take them to respond? They lagged the competition.

On interior quality, how long did it take for GM to decide to give a better interior? Why did it take Lutz to reign in the accountants? Why was appeal not considered part of the valuation justification for product? Why were customer desires ignored so long causing them to go import shopping? Now GM is imitating Lexus with Buick, imitating the MK IV Jetta with the Cobalt.....where was the incentive to lead in the first place instead of playing "catch-up"?

Technology: WTF do they invest less in product development than Toyota? Why did they shy from pursuing hybrid technology when they arguably had the lead in technology from the EV1? Now Toyota and Honda are kicking their asses on technology and perception. Why linger with archaic 4 speed autos when the industry as a whole, even the Koreans, are offering 5 speeds standard? Now the trend is becoming 6, soon to be 8, and GM is still stuck on 4 with limited offerings of 5.

WTH makes them think a different car requires only a new grill and lighting to seperate it from another, inspite of brand history, image, and lineage?

Sorry but GM's problems are legion and all born of its culture. GM will never truly lead again, or be more innovative than anyone else, or even stand out from the crowd until the culture changes. Through sheer stupidity they've set up the foreign competition to dominate this market for the next 10 years.

[camaro_freak]

breathe whirling breathe!

excellent comments though... right on target

[Silverado14]

As for the Cobalt needing better MPG.....I have a base 2005 Cobalt and I am getting over 37.5 MPG in 50/50 (city/highway) driving!...and it has good power to boot! Will be taking a 1000 mile plus trip later this year and fully expect to get over 40 MPG.

[ponchoman49]

I can tell you there is nothing harder to break than a Toyota lover. I see them all the time." My Toyota is sooooo reliable and betterthan your american junk"! I can tell them till i'm blue in the face about the numerous Toyota recalls or GM's standing in JD power studies. The big 3 really screwed up and screwed up hard in the 70's, 80's and even some 90's with so many junk cars and vehicles. Whocan ever forget GM's 5.7 diesel or Caddys 8-6-4? Or how about Chryslers damaging Ultra Drive electronic tranny from 89-99 that was a guarenteed failure item or Fords head gasket popin 3.8's or huge number of tranny failures in the 92-00 Minivans/Taurus etc. When one asks a person about any Toyota or Honda of this same period they only negative thing I hear is that they rusted out but the darn thing would never die. The big 2 1/2 have quite a task on there hands to shake this perception!

[ChevyITguy]

Sadly, perception is reality...

General Motors needs to hammer home the quality story... If you look at a GM vehicle and a Toyota head to head the GM product is generally equal to or better than the Toyota.

GM is already building a compelling story for the performance minded with the success of the Corvettes, Cadillacs and GTOs in racing... Now we need a compelling head-to-head with the PERCEIVED quality leaders...

It's not a question of GM not being able to do it, it's a question of GM doing it right...

[Rayzilla]

Originally Posted by member12

GM skimps out by fitting cars with cheap tires, wheels, and interiors

Did you know that GM is the only manufacturer in the world who tells the tire manufacturers how to make the tires for their cars rather than building the car then asking the tire manufacturer which tires will work good on their car?

Check out tires on a new GM car, you will see a "TPC" code (Tire Performance Criteria). GM is the company who invented this and the only one who uses it. That is why Firestone Wilderness AT's on GM trucks weren't blowing out and causing accidents while the same-named tires on Ford Exploders were!

This isn't the cheap way out in my opinion. Interiors...they've needed help but are getting better...