A brief but interesting article.

http://money.cnn.com/2008/04/08/news/companies/taylor_gm.fortune/index.htm



I thought they were pretty off base with the comments about the Astra: no one in America cares (and relatively few even know) that Astra is a rebadged Opel; and I've not heard a single complaint about the gauges in any review I've read.

The Saturn problem is unfortunate. I think the general public is having difficulty seeing Saturn as a step above Chevy rather than econo-pods; and they don't think the price is justified. I think GM should play up it's new Euro-heritage, if nothing else to let people know that it's different.

Totally agree, the greatness of Saturn is being wasted. The new Saturn commercial where the guy walks into the Saturn dealer and cant believe its a Saturn dealership is a good start and it gets people thinking, but even so. With Products like the Astra, Sky, Vue, and Aura the have mabey the best lineup in GM's product line! And the Aura, its even better than the new Malibu (IMO), and people dont even have a clue! Gm really needs to step up the Saturn promotion!

 

Totally agree, the greatness of Saturn is being wasted. The new Saturn commercial where the guy walks into the Saturn dealer and cant believe its a Saturn dealership is a good start and it gets people thinking, but even so.

The commercial only serves to inform people that Saturn has an el-cheapo image.

 

The Saturn problem is unfortunate. I think the general public is having difficulty seeing Saturn as a step above Chevy rather than econo-pods; and they don't think the price is justified. I think GM should play up it's new Euro-heritage, if nothing else to let people know that it's different.

Yes indeed, and an understatement as well. More stores doesn't equal more Saturn sales. Nor does more models equate to more Saturn sales.

And apparently, new design doesn't guarantee more Saturn sales. GM has literally, done everything they can for this brand, and it still sits flat.

They only way I see Saturn being saved is by giving it a *HUGE* biofuel based fleet, replete with plugin batteries and solar panels for good measure. For Saturn to be saved - and it does need saving - it needs to be rebranded to be synonymous with green. Saturn = green = the anti-gasoline-car company. Something along those lines. I am clearly not a marketing guru

 

I agree with you 100% Saturn needs to be gm green brand. It would sell a lot better. But then again rick and lutz made wrong choice by making saturn upscale brand with 4 speed trans.

 

Ahh, the blathering of marginal automotive experts at its finest.

So what if the Astra is a rebadged Opel. Everything I have seen about the car is pretty decent. I hope it does well for GM. I cheer for every success they can muster in such a difficult economic period.

Thank Goodness that these aren't the typical rebadged J-Bodies of the past. Can you say Cadillac Cimmaron! Thank God they aren't going back down that road any longer.

To me it is encouraging to see GM use the Global engineering that they have developed over the years to bring some pretty decent vehicles to market here in North America.

Like it or not they compete on the world stage. Once the protectionists get over that point, perhaps they will understand what Rick and the gang are trying to do here.

Yes GM is an American based company. Any success they can bring to the table is to their benefit as well as the US Economy.

 

So what if the Astre is a rebadged Opel. Everything I have seen about the car is pretty decent.

The problem with the Astre wasn't the fact that it was a rebadged Chevrolet, it was that the car was the worst piece of junk to ever leave a Big Three factory.

 

European styling is not the huge selling point that GM thinks it is.

I personally think that Saturn should be GM's "green" brand.

I think they should give the Volt to Saturn,(or at least a variant)
and Saturn should have a very strong presence with hybrids.
They should also offer diesels, and drum up the fuel economy.

I'm not saying that they can't be re-badged Opels, but that in and
of itself will not move sheetmetal off the showroom floor.

This ain't the 80's. The euro-trash slant is way over-rated.

 

Well as i have said it before rick is an idiot and he needs to go. He had 10 years to fix gm and he did not. He sold all of gm assets and he is still losing money. He fired so many employes and he decided to speed up development of gmt 900 and ignore zeta, epII and delta because of that. SO now he is paying for it. He needs to go. Look what ford is doing with smart managers. They did not make f-150 all new. IT is just updated version of old one becuse they are investing all of that money in future small and midsize cars. This is why ford quality is better them gm and this is why ford is smaller and worth more then gm. See what rick did to this company.

 

How many people did Rick fire and use sources to prove it.

The 2009 F150 is new just like the 2004 model was all new. Get a clue.

 

As recently as six months ago, GM's shares were selling for more than $43 per share. Today they are worth less than half that, closing at $21 on Monday. Investors seem to be tiring of GM's stormy weather and looking elsewhere for blue skies.

Plan A: A reporter notices that speculative stock investors are tired of waiting for GM, and have pulled their day trading money, their home equity line of credit money and their "gotta-make-this-quarter's-numbers" mutual fund investments from GM, and the reporter concludes GM is in trouble.

Patient and methodical, Wagoner spent years laying the groundwork for 2007's historic agreement on health and labor costs with the United Auto Workers. He makes a virtue of never coming to a snap decision or acting reflexively just to be seen doing something. Now, though, he seems to be taking an equally long view towards GM's financial recovery.

Lately, the party line at GM has been to look past the current difficulties to what it believes will be the halcyon days of 2010 and 2011. That's when the full effect of the UAW contract kicks in; Chevrolet's plug-in hybrid, Volt, hits the road (hopefully lifting GM's technology image); and demographic and sales trends give a boost to auto sales as younger drivers reach the market and people who put off getting a new car or truck return to dealerships.

Plan B: Ignore the investment "advisors" who scream for a half hour every day on CNN, invest in product for the long term rather than trying to rig the books to make the numbers look good for this quarter, cut costs dramatically and increase RETAIL sales in a down market.

 

Plan A: A reporter notices that speculative stock investors are tired of waiting for GM, and have pulled their day trading money, their home equity line of credit money and their "gotta-make-this-quarter's-numbers" mutual fund investments from GM, and the reporter concludes GM is in trouble...

Plan B: Ignore the investment "advisors" who scream for a half hour every day on CNN, invest in product for the long term rather than trying to rig the books to make the numbers look good for this quarter, cut costs dramatically and increase RETAIL sales in a down market.

I can see your point to some degree, HoosierRon, but I think that indeed looking long-term paints a cloudy future for GM. Even the invest-and-hold types aren't snapping at GM stock despite its historically low share price. I have to think that that reflects at least some people thinking about the company as a prospect and not being able to justify it based on some pretty turbulent times that still lie ahead.

Wagoner obviously cannot control a lot of forces affecting the corporation. However, even he concedes that despite major improvement in its core NA operations, the division is still more than a billion from profitability. Again, that in part reflects outside forces, but nonetheless, he's done a lot, and still the red ink flows. Constantly looking to the future for alleged relief just isn't going to cut it. I'm sure he has a plan to get there, but GM's called the future card one too many times with a lot of people.

When Wagoner took office, and at a time when the company was making in the $2 billion - $4 billion range, he mentioned that GM's profits in the 2007-2008 timeframe would make profits then pale by comparison. That obviously has not happened. And it's why I don't find his prophetic statements particularly inspiring.

I'd love to see GM succeed, but I'm just not as convinced as others that it's just bound to happen.

 

Saturn sales will improve, we just have to be patient. It has only been a year since the Aura came out, and they are just getting on to the used car lots where most people buy their first car. GM just needs the balls to continue on this path. Knee-jerk reactions are what got them in trouble in the past.

 

Why is that for the last ten years people have been saying it takes time, it takes time. Well guess what it took time for gm to lose 10% of market share during those 10 years and lose billions of dollars. Sure why dont we give it some more time and see when gm will be out of buisness.

 

What a hatchet job.

 

The reviews that I have read about the Astra rave about everything the Astra brings to the table. There are a few things they knock, but there isn't a car out there that is great in all areas in the automotive press. The Astra is a car I would consider but there are two things I would be hesitant about if I was seriously considering one, the size and the 4 cyclinder engine are my concerns of note.

I have a large chocolate labrador retriever. I take in the car fairly frequently as I do various things. If a cars cargo area isn't big enough for a long haul with the dog than its not going to be something of interest for me. The second issue is the fact that it has a 4 cyclinder engine. 4 cyclinders are lacking in power to V6's in general. I won't consider a turbo for the car because the run hotter and rev higher therefore they are not as reliable over the long haul. I want at least the 3.5 liter V6 that you can get in the Impala and other vehicles. Another good powerplant for it would be the DOHC 3.6 liter V6 that you find in the Malibu, Impala, SRX V6 and other GM cars. The Vue is something I might consider when I'm in the market for a car next time also. I am looking mostly at the GMC Acadia or maybe a well equiped Saturn Outlook if it has some features on it worthy of considering. I know the Outlook is a stripped version of the Enclave and the Acadia.

 

THe problem is that GM has been unable to properly market Saturn as a "european alternative" brand.
People are still going to see it as some tarted up Chevy. And that is detrimental to Saturn's image.
It also doesn't help that Aura is really nothing more than a tarted up Chevy in the first place.

GM's marketing and positioning problems still persist.

And there is nothing wrong with rebadging the Opel Astra into the Saturn Astra. The problem begins if Opel starts being sold in the US again... or if Saturn enters the European market.

 

THe problem is that GM has been unable to properly market Saturn as a "european alternative" brand.
People are still going to see it as some tarted up Chevy. And that is detrimental to Saturn's image.
It also doesn't help that Aura is really nothing more than a tarted up Chevy in the first place.

GM's marketing and positioning problems still persist.

And there is nothing wrong with rebadging the Opel Astra into the Saturn Astra. The problem begins if Opel starts being sold in the US again... or if Saturn enters the European market.

Exactly! And do you think the UK auto mags rag on Vauxhaul for being a rebadged Opel? No. So what's the problem? And I've driven the new Astra, it is awesome! It's not perfect yet, it's got some packaging issues, but considering the circumstances right now, that's understandable, but will hopefully be rectified soon. It's a really great car and I don't understand the "severe" comment about the gauges, I liked them. :yup:

 

Oh, and the author's claim that the Astra's European lineage is its Achilles’ heel comes across to me as gobbledegook.

 

GM's new product is turning heads (Malibu, CTS, G8, Enclave/Acadia), but to many brands will be its death. Saturn has been a plague from inception. Ask any GM dealer what it has done for them and they will tell you it has robbed from there exisiting GM franchises not from the imports, Ford or Chrysler. If GM is to survive they need to kill off or sell Saturn and maybe consider the same for Hummer and Saab. (Both Saab and Hummer, I do like, but have to admit they have not helped).

 

darn, here I thought I was his worst nightmare....

 

That actually made me chuckle, Buickman.

 

GM needs more interior shots of sarturn in its commercials.. not just cars driving the road..
Technology and nav screens should be emphasized

 

The gist of the article is correct even if the details aren't. GM structured as it is basically doesn't stand a chance of recovery.

 

GM just needs to spend ridiculous amounts of money on advertising...that's the cold hard truth, and they're not doing enough right now. Also, there are too few dealerships.

 

And there is nothing wrong with rebadging the Opel Astra into the Saturn Astra. The problem begins if Opel starts being sold in the US again... or if Saturn enters the European market.

Actually the Astra is an OLD car. It maybe new in the US, but it has been available for several years in Australia and Europe.

 

I think Saturn will improve once it gets second generation vehicles. Instead of re done Chevys and such. More Opel sourced. And don't compare yourself to Honda, Toyota. Target VW in the commercials. People might scoff at the idea at first, but if Saturn has the goods people will still do the comparison and be surprised.

 

One week ago I turned my lease Cadillac 06 SRX 3.6, 5-sp auto for a 08 Saturn VUE XE, 4 cyl, 4 speed auto. I expected a dog. I am pleasantly surprised how peppy the 4 cyl is and well mated the 4 speed auto is to that multivalve, variable valve 4 cyl. And how comfortable the base VUE is. The dealer told me that they are selling one VUE a day, their most popular vehicle at a Chevrolet, Ponitac, Buick, Saturn mega dealer! My gas mileage has improved 21% over the lighter SRX!

 

Maybe they should call them Oldsmobiles....

 

Saturn's revival starts with the GM card. I have almost $7,000 on mine and I can't use it to buy a Saturn. I also have a flex card but those earnings build up much, much slower and they may even be less for Saturn than the core old school GM brands. Let me have $2-3,000 in redemptions to go with other respectable incentives and I will be in line waiting.

I have owned two Saturns in the past, 2000 SL2 & 2002 L300. They were great cars and came with Saturn's second to none service. The design was somewhat bland on the old Saturns although that is certainly not the case anymore.

You start out with GM card redemptions for loyal GM customers and the next thing you know your neighbor is cruisin down to the Saturn dealership to turn in his pos mitsu, etc.

I also think it was a mistake to bunch up Saab and Hummer with Cadillac. At least one of them, probably Saab, would have made a great dance partner for Saturn and Saturn could have taught Saab a Bible's worth on Service and Customer Satisfaction.

Saturn also needs to be a "Big Ticket" sponsor of something like American Idol --Ford; Golf--Buick, NCAA -- Pontiac. I don't know, survivor is getting old in the tooth. Maybe they should be CSI new sponsor but that would bump Hummer. How about desparate househo's? NFL team? Also Saturn has had trouble with one of their hybrids, but once they are back on track, they need to put the word on the street. I doubt people even know they have hybrids.

 

Saturn's revival starts with the GM card. I have almost $7,000 on mine and I can't use it to buy a Saturn. I also have a flex card but those earnings build up much, much slower and they may even be less for Saturn than the core old school GM brands. Let me have $2-3,000 in redemptions to go with other respectable incentives and I will be in line waiting.

Your wish is their command. Voila...
http://saturnfans.com/company/saturn-accept-gm-card-points

 

Yes Saturn could and should talk up their European pedigree.

How about a commerical where one Saturn is talking to the other in German about how cheap gas is over here (with American English subtitles). Then the other Saturn talks back in the Queens English and says "Your in America now!...Drive and handle like your German bloodlines but for Gods sake speak like a Yank". and the first Saturn responds back "Ja".

Or you could have yet another talking Saturn going back to the continent to trace its roots. It would involve stops at a European design studio (showing off awards in the background) and a trip to the nubring? race track for extensive testing and maybe production facilities (I don't know if that is a plus or minus). Then meeting relatives Opel, Vauxhall and Saab. And finally, at the end, the Saturn meets his baby sister, Corsa ... coming Fall 09, etc.

 

GM could certainly do what it did in the past, blowing up incentives, increasing fleet, reducing r&d spend, and other countless, damaging techniques to the company that would make it appear to be profitable, right now, and shut most of you up that are calling for Rick to be gone or Lutz to be fired. Instead, unlike other, lesser GM CEO's in the past, Rick's taking the long term view of the situation, investing in the future, following a strategy of increasing resale and other critical measures, and making sure that with these newest products, the negative perception changes at GM. These policies are hard to stick to, because it is always hard to swim against the current, in this case, a toilet bowl current. If GM did not change, they would have already fallen victim to bankruptcy or would have taken a delayed spiral down to the bottom if they had followed in the footsteps of the narrow-minded day trader point of view, like so many here carry. In a few years, when the economy improves, raw materials prices return to a normal range, and people are tired of being in the same beater (replacement demand), you'll see a much healthier GM that's ready to take advantage of the rewards of that economy. It will be a GM that has turned around public (mis)conception, one that has inspiring, brand-new products, has reduced the crippling legacy costs, and has a union agreement which allows them to have nearly the same labor costs as its rivals. It's a GM that is admittedly hard to see. However, with all of the solid progress in the last 3-4 years (how many of you couldn't see owning a new GM previously to 2004?), we have quite a bit of hope.

 

your narrative neglects the FACT that the man is responsible for over $50 BILLION in lost shareholder value.



"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well armed lamb contesting the vote."
- Benjamin Franklin, 1759

 

The fundamental problem with Rick Wagoner is that he puts the car before the market, rather than the market before the car. You have to define your consumer and then develop products for them or you are gambling that you can magically generate a consumer with your amazing products.

The other problem we are seeing is a fundamental failure to control engineering and manufacturing costs. Why is the G6, Malibu, Aura all on different development cycle when they are the same product? Why does Cadillac have a RWD platform that can't be utilized anywhere else in this massive company? GM has a huge opportunity to control cost and quality, they are astoundingly bloated and inefficient right now that it blows my mind they aren't bankrupt by now. They are heading into a recession without executing a proper downsizing and I think they will end up suffering the most.

 

BORG that is my biggest criticism of GM is their bloated white colar staff. I go through the balance sheets and income statements of all the auto companies and compare them to years prior. Well GM is spending 8 billion a year on R&D. Almost double what Honda spends. And Honda is in a lot of businesses besides cars.

Then there is the problems that face almost all US corporations, never ending IT departments, marketing departments, accounting departments, finance guys, human resources, endless layers of managers who fly around and have meetings, and on and on. Even as a corporation is losing money and laying off workers, these departments always seem to actually grow, and are full of highly paid people.

 

BORG that is my biggest criticism of GM is their bloated white colar staff. I go through the balance sheets and income statements of all the auto companies and compare them to years prior. Well GM is spending 8 billion a year on R&D. Almost double what Honda spends. And Honda is in a lot of businesses besides cars.

Then there is the problems that face almost all US corporations, never ending IT departments, marketing departments, accounting departments, finance guys, human resources, endless layers of managers who fly around and have meetings, and on and on. Even as a corporation is losing money and laying off workers, these departments always seem to actually grow, and are full of highly paid people.

so far from the truth its sickening. Consolidation has been the name of the game the past decade, be it geographical or staff numbers. Harnessing global resources, having engineering 'tests' 'read' in India among other things. Consolidating engineering in Warren and Powertrain in Pontiac and eliminating most satellite sites has occurred. GM is lean, white collar workers have had stagnating wages for 5+ years now, in some cases pay cuts, all while having to PAY MORE for their healthcare. Seriously, you don't know what you're talking about.

Any sheets you've looked through are obviously dated.

Furthermore, its amazing GM is investing MORE in R&D and should have been all along. Maybe we'd have a Aston Martin Cadillac right now or a Sclass Cadillac...or a 3 series Cadillac. They need to continue to invest more in product development now than ever before, and they are doing that.

Some people on GMI just disgust me with their lack of knowledge and passing it off as fact. I'll be the first one to admit when I don't know something, but usually I'll ask a ? instead of posting a lame comment.

CobaltSS