G.M. to Make a 60-Day Money-Back Offer
G.M. to Make a 60-Day Money-Back Offer
Looks like this is how Whitacre plans to win back that market share we were discussing in the other thread....
Link
DETROIT — In an all-out effort to restore confidence in its products, General Motors will offer a 60-day, money-back guarantee on all its vehicles beginning on Monday, according to people involved in the company’s plans.
As part of its marketing campaign, G.M.’s new chairman, Edward E. Whitacre Jr., will be featured as the company’s spokesman in a new television commercial designed to lure consumers back to the company’s showrooms.
The commercials, which feature the slogan “May the Best Car Win,” will make their debut on national television on Sunday. Mr. Whitacre, the former chairman of AT&T, will make a direct appeal to consumers to try G.M. vehicles — and return them after 60 days for a full refund if they aren’t satisfied.
“We’re putting our money where our mouth is,” Mr. Whitacre says in the commercial, according to people who have seen the campaign.
The “Satisfaction Guaranteed” program is thought to be the first time that a major automaker has offered a full refund on a vehicle after it has been sold. The program will cover all of G.M.’s core American brands — Cadillac, Buick, Chevrolet and GMC — and run through November.
The money-back program was conceived by G.M. executives and its board as a dramatic way to promote the quality of the company’s product line after its emergence from bankruptcy in July.
There is no mention in the ad campaign of the $50 billion in taxpayers’ dollars that provided G.M.’s financial bailout this year, or the fact that the federal government owns 60 percent of the company.
Instead, the campaign and money-back promotion is an attempt to focus attention on G.M.’s cars and trucks.
Mr. Whitacre, 67, has said that G.M. must halt its slide in market share in the United States. The company, which once held a 50 percent share of the market in the 1960s, has a 19 percent share so far this year.
The use of Mr. Whitacre as a spokesman is reminiscent of Lee Iacocca’s ads in the 1980s as chairman of Chrysler, when he coined the slogan “If You Can Find a Better Car — Buy It.”
Those ads helped Chrysler rebound after the company needed federal loan-guarantees to stave off bankruptcy.
Other automotive executives have appeared in ads with less success. In 2006, Chrysler failed to jump-start sales with advertisements featuring DaimlerChrysler’s chief executive, Dieter Zetsche.
G.M. declined to comment today in the upcoming advertising campaign or the money-back promotion. The automaker’s board officially approved the campaign this week.
As part of its marketing campaign, G.M.’s new chairman, Edward E. Whitacre Jr., will be featured as the company’s spokesman in a new television commercial designed to lure consumers back to the company’s showrooms.
The commercials, which feature the slogan “May the Best Car Win,” will make their debut on national television on Sunday. Mr. Whitacre, the former chairman of AT&T, will make a direct appeal to consumers to try G.M. vehicles — and return them after 60 days for a full refund if they aren’t satisfied.
“We’re putting our money where our mouth is,” Mr. Whitacre says in the commercial, according to people who have seen the campaign.
The “Satisfaction Guaranteed” program is thought to be the first time that a major automaker has offered a full refund on a vehicle after it has been sold. The program will cover all of G.M.’s core American brands — Cadillac, Buick, Chevrolet and GMC — and run through November.
The money-back program was conceived by G.M. executives and its board as a dramatic way to promote the quality of the company’s product line after its emergence from bankruptcy in July.
There is no mention in the ad campaign of the $50 billion in taxpayers’ dollars that provided G.M.’s financial bailout this year, or the fact that the federal government owns 60 percent of the company.
Instead, the campaign and money-back promotion is an attempt to focus attention on G.M.’s cars and trucks.
Mr. Whitacre, 67, has said that G.M. must halt its slide in market share in the United States. The company, which once held a 50 percent share of the market in the 1960s, has a 19 percent share so far this year.
The use of Mr. Whitacre as a spokesman is reminiscent of Lee Iacocca’s ads in the 1980s as chairman of Chrysler, when he coined the slogan “If You Can Find a Better Car — Buy It.”
Those ads helped Chrysler rebound after the company needed federal loan-guarantees to stave off bankruptcy.
Other automotive executives have appeared in ads with less success. In 2006, Chrysler failed to jump-start sales with advertisements featuring DaimlerChrysler’s chief executive, Dieter Zetsche.
G.M. declined to comment today in the upcoming advertising campaign or the money-back promotion. The automaker’s board officially approved the campaign this week.
Wow, that's quite a campaign. Hopefully they advertise the heck out of this, and hopefully hopefully hopefully it ends up doing very well.
I wonder what sort of stipulations will be associated with returning a car for a refund. Probably only able to have so many miles on it, no damage, etc...
I wonder what sort of stipulations will be associated with returning a car for a refund. Probably only able to have so many miles on it, no damage, etc...
Could be a good move, a very good move. Nothing says "we're still here..." like a confident "forget what you've heard (or think you've heard) about GM, try out our cars and see for yourselves...." approach and if he comes genuinely personable that could score GM some goodwill in a frosty consumer mindset.
This of course without actually seeing the ads..... but it seems like a relatively good idea that could work unless of course you really wanted a Pontiac, Saturn, Saab or Hummer....
This of course without actually seeing the ads..... but it seems like a relatively good idea that could work unless of course you really wanted a Pontiac, Saturn, Saab or Hummer....
Haven't other automakers done this before (I'm thinking maybe Hyundai and Saturn, though I'm not entirely sure)? I think in those cases you would just get credit towards another vehicle though, not a refund. Like Koz2 says, there must be some industrial strength conditions to go along with this deal to minimize abuse.
Good idea? I think so. But I think the execution is a little early.
GM has a lot of great new models...as well as models that are very much "old GM." Those old models need specific buyers--not ones that will hold a Cobalt against a Civic, or Rabbit, or an Impala up against a new Taurus, or a Colorado up to a Tacoma.
GM has a lot of great new models...as well as models that are very much "old GM." Those old models need specific buyers--not ones that will hold a Cobalt against a Civic, or Rabbit, or an Impala up against a new Taurus, or a Colorado up to a Tacoma.
Here is a link to the offer. It's official and it looks like GM may really be taking off the gloves this time. Lutz versus everyone else at Laguna Seca!!!
http://money.cnn.com/2009/09/10/auto...ex.htm?cnn=yes
http://money.cnn.com/2009/09/10/auto...ex.htm?cnn=yes
NEW YORK (CNNMoney.com) -- Buy a new General Motors car. Don't like it? Return it and get your money back.
General Motors, in a bid to appeal to consumers upset about decades of poor quality and the carmaker's government bailout, is launching an unusual program: money-back guarantees.
Between Sept. 14 and Nov. 30, buyers will be able to return Buick, Cadillac, Chevrolet or GMC products within 60 days if they don't like them, the automaker announced Thursday.
Such programs are commonplace in other businesses, but not for cars.
For one thing, cars cost, on average, about $25,000 and they lose a lot of value as soon as they leave a dealer lot.
So a money back guarantee will mean thousands of dollars in losses for each returned car -- a risk against which GM has purchased insurance.
GM isn't too worried. Based on its experience with a similar program involving GM's British Vauxhall brand, GM expects few returns, marketing head Bob Lutz said in a conference call today.
The plan will capitalize on the improvements in GM's products over the last several years, Lutz said. The guarantee will be in place at least through the end of November.
"I think we can now say our current lineup can bear comparison with any other volume automakers' products anywhere in the world," Lutz said.
The new guarantee will be part of a major new marketing push by GM, he said. GM will spend many times what it has in the last few years to market its cars.
"Three years ago, four years ago, five years ago, this would have been a huge risk," Lutz said.
Over that time, GM's products have improved to the point that the company now feels it can safely make this offer. GM does have insurance against any potential losses it may take on the program but Lutz said he felt confident that few customers would return their cars.
"Consumers watching this ad campaign will be intrigued because of GM's bold statement of confidence in its vehicles," said Jeremy Anwyl, CEO of Edmunds.com in a statement. "The risk that GM has in buyers returning its vehicles will be very minimal."
Edmunds.com recently tested a Buick LaCrosse in a comparison test against a Lexus ES350, a pairing that will be featured in GM's ad campaign touting this program. Edmunds found the Buick to be superior to the Lexus.
To take advantage of the program, customers would have to be current on auto payments and the car will have to have been driven less than 4,000 miles. GM will refund the full purchase price of the car.
Buyers will be able to return their cars after 31 days, but not after more than 60 days of ownership.
Advertising push: As part of the plan, GM will release advertisements featuring comparisons between various GM products and Japanese or German competitors.
For instance, Lutz said, one ad will feature the 2010 Chevrolet Equinox compared to the Honda CR-V, pointing out the Equinox's better highway fuel economy and other features.
The ads will also feature GM's 5-year, 100,000 mile powertrain warranties.
GM's new chairman of the board and former AT&T CEO Ed Whitacre will star in a series of ads that will introduce the new program. Lutz called Whitacre, with his soft Texas drawl, white hair and slight limp, "right out of central casting" as someone who will earn America's trust.
In the ads, Whitacre will confess to having had doubts about GM when he was asked, by the government, to head the carmaker's new board of directors as it came out of bankruptcy. He will go on to say "I liked what I found, and I think you will, too."
Whitacre will then describe GM's new guarantee and invite car shoppers to "put us up against anyone."
The campaign will also feature some "viral" video advertisements, including one in which 77-year-old Lutz, in an on-line video, will challenge anyone to race him, driving a Cadillac CTS-V high-performance sedan, at the Laguna Seca Raceway. Challengers would be allowed to drive any unmodified production sedan in a bid to challenge GM's claim that the CTS-V is the fastest production sedan in the world.
During the conference call, a blogger from the Web-site Jalopnik.com accepted the challenge, offering to race Lutz in a high-performance Mercedes-Benz model.
"That's great,' said Lutz, "And if you beat me by a second on the lap time, we'll just advertise the price difference."
General Motors, in a bid to appeal to consumers upset about decades of poor quality and the carmaker's government bailout, is launching an unusual program: money-back guarantees.
Between Sept. 14 and Nov. 30, buyers will be able to return Buick, Cadillac, Chevrolet or GMC products within 60 days if they don't like them, the automaker announced Thursday.
Such programs are commonplace in other businesses, but not for cars.
For one thing, cars cost, on average, about $25,000 and they lose a lot of value as soon as they leave a dealer lot.
So a money back guarantee will mean thousands of dollars in losses for each returned car -- a risk against which GM has purchased insurance.
GM isn't too worried. Based on its experience with a similar program involving GM's British Vauxhall brand, GM expects few returns, marketing head Bob Lutz said in a conference call today.
The plan will capitalize on the improvements in GM's products over the last several years, Lutz said. The guarantee will be in place at least through the end of November.
"I think we can now say our current lineup can bear comparison with any other volume automakers' products anywhere in the world," Lutz said.
The new guarantee will be part of a major new marketing push by GM, he said. GM will spend many times what it has in the last few years to market its cars.
"Three years ago, four years ago, five years ago, this would have been a huge risk," Lutz said.
Over that time, GM's products have improved to the point that the company now feels it can safely make this offer. GM does have insurance against any potential losses it may take on the program but Lutz said he felt confident that few customers would return their cars.
"Consumers watching this ad campaign will be intrigued because of GM's bold statement of confidence in its vehicles," said Jeremy Anwyl, CEO of Edmunds.com in a statement. "The risk that GM has in buyers returning its vehicles will be very minimal."
Edmunds.com recently tested a Buick LaCrosse in a comparison test against a Lexus ES350, a pairing that will be featured in GM's ad campaign touting this program. Edmunds found the Buick to be superior to the Lexus.
To take advantage of the program, customers would have to be current on auto payments and the car will have to have been driven less than 4,000 miles. GM will refund the full purchase price of the car.
Buyers will be able to return their cars after 31 days, but not after more than 60 days of ownership.
Advertising push: As part of the plan, GM will release advertisements featuring comparisons between various GM products and Japanese or German competitors.
For instance, Lutz said, one ad will feature the 2010 Chevrolet Equinox compared to the Honda CR-V, pointing out the Equinox's better highway fuel economy and other features.
The ads will also feature GM's 5-year, 100,000 mile powertrain warranties.
GM's new chairman of the board and former AT&T CEO Ed Whitacre will star in a series of ads that will introduce the new program. Lutz called Whitacre, with his soft Texas drawl, white hair and slight limp, "right out of central casting" as someone who will earn America's trust.
In the ads, Whitacre will confess to having had doubts about GM when he was asked, by the government, to head the carmaker's new board of directors as it came out of bankruptcy. He will go on to say "I liked what I found, and I think you will, too."
Whitacre will then describe GM's new guarantee and invite car shoppers to "put us up against anyone."
The campaign will also feature some "viral" video advertisements, including one in which 77-year-old Lutz, in an on-line video, will challenge anyone to race him, driving a Cadillac CTS-V high-performance sedan, at the Laguna Seca Raceway. Challengers would be allowed to drive any unmodified production sedan in a bid to challenge GM's claim that the CTS-V is the fastest production sedan in the world.
During the conference call, a blogger from the Web-site Jalopnik.com accepted the challenge, offering to race Lutz in a high-performance Mercedes-Benz model.
"That's great,' said Lutz, "And if you beat me by a second on the lap time, we'll just advertise the price difference."
Haven't other automakers done this before (I'm thinking maybe Hyundai and Saturn, though I'm not entirely sure)? I think in those cases you would just get credit towards another vehicle though, not a refund. Like Koz2 says, there must be some industrial strength conditions to go along with this deal to minimize abuse.
77-year-old Lutz ... will challenge anyone to race him, driving a Cadillac CTS-V high-performance sedan, at the Laguna Seca Raceway ... in a bid to challenge GM's claim that the CTS-V is the fastest production sedan in the world.

"That's great,' said Lutz, "And if you beat me by a second on the lap time, we'll just advertise the price difference."
For the first time in a long time, I'm proud of GM marketing.
It's not about brand. It's not about feelings. It's about pounding the competition into the ground. And that means direct comparisons and ballsy offers.
That's what it's always been about. And that's what we've forgotten for far, far too long.
It's not about brand. It's not about feelings. It's about pounding the competition into the ground. And that means direct comparisons and ballsy offers.
That's what it's always been about. And that's what we've forgotten for far, far too long.



