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Old 04-15-2004, 11:48 PM
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Dear GM

Dear GM,

To most people, your products are merely appliances to be used. Simple tools of transport to be scorned at the first hint of trouble. If you’re lucky, you didn’t simply win the reverse auction by dropping an extra thousand dollars to that already steep rebate. Hopefully, the new owner actually appreciates that handsome new design of which you are so proud. But, like an unstable ozone molecule losing it’s proton when jostled, these customers will be easily swayed by next years new “big thing”, or lowest bidder.

Then there are those precious few customers who enthusiastically embrace one of your products. They don’t just drive their Camaro, they spend quality time with it. They don’t just buy a Chevrolet, they recommend it to their friends. They don’t simply perform maintenance on it, they enhance it. These are the kids who tell others in the lunchroom that Ford sucks. These are the guys who make you look good by polishing up that ride and voluntarily placing a bowtie for all to see. These are the fathers who may not even own one of your products but will interrupt their conversation to point out a nicely done specimen. These are the one’s whom you ignore at your own peril.

I’m a financial analyst for a fortune 500 company and I know the conversations that go on when debating proposed future products. There are multiple projects chasing a limited pile of capital so contribution margin and incremental top line revenue become the arbiters of the hopeful. However, financial analysis has not progressed to the point where it can quantify the intangibles yet. And how do you quantify the enormous goodwill generated by those who don’t simply buy one of your cars but make it their hobby?

I was 12 years old when the 82 Camaro Z28 made it’s splashy debut on the boulevards of Grand Rapids Michigan. I can still remember “riding bikes” with my friends after school and seeing some lucky bastard driving his bright red Z right past us. That striking image was only matched by the deep melodic rumble of that small block V8. Heads turned and jaws dropped no slower than if Jessica Simpson had walked by in a bikini. We talked for the next 15 minutes about one day owning a car just like that. This has gotta be worth at least one years worth of commercials.

Sure the import scene is all the rage right now but you guys have THE secret weapon. You possess the kryptonite that can render the major players impotent. The Chevy small block. Those who are caught in the purgatory of 4 cylinder, front wheel drive performance do so because they haven’t sampled the real thing yet. On an emotional level the low frequency aural feast will be the siren song that allures Honda buyers back. On an analytical level the young people of today can’t deny the cost effectiveness and practicality of V8/rear wheel drive performance. They just need this wrapped in a vehicle that is not too large, expensive, or weird looking.

In summary, don’t overlook the intangibles. There’s a group of GM enthusiasts out there who feel a little bit neglected right now and if something isn’t done soon the damage could be irreparable. GM reaps a tremendous amount of goodwill from enthusiasts who drive Camaros, Firebirds, Impala SS’s, Grand Nationals, etc. You won’t see this goodwill offsetting your cost of goods sold or SG&A in that product line P&L. The old cliché of the most effective form of advertising being by word of mouth is true.

That is also the one form of advertising that is not in the hands of the Executive Vice President of Marketing.

Sincerely,
Robert Perez

Last edited by Rob98Z; 04-15-2004 at 11:51 PM.
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Old 04-15-2004, 11:51 PM
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Cool. I like the 3rd Gen references and understand how you felt.

Last edited by IZ28; 04-16-2004 at 08:48 AM.
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Old 04-16-2004, 12:26 AM
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Good letter. I only have a few things to say about it.
#1. Nice reference on the 82 Camaro! I know I still love the design to this very day...even if it is on jackstands waiting for parts.
#2. I share your passion, but also understand that GM is in the market of making money. Most of GM doesnt see it our way. Bottom line is the bottom line. I think that GM is learning from there errors in the past, and are trying as quickly and as best they can to fix them. They are trying to not only please average buyers, but very picky enthusiasts. Just look at the fight over the Z/28-SS.
#3. Its hard to please us enthusists, some more then others. Look at the GTO. 350 tire roasting hp, fantastic handling, sweet and high quality interior and overall build; a coupe that GM can put up against the best in the world and pull similar performance out of for much cheaper, but because it looks like (insert car here), it is bashed by us from end to end.
#4.GM is making a lot of performance cars right now and its really gunna put them back in the minds of peformance minded drivers. It might not be exactly how we want it, but GM is really getting into the performance game in all aspects. Sport compact, Luxury sports car, sports coupe, sports car, and sport trucks. If you really take a look at GM, the offer a wide range of peroformance and exciting cars.

The performance aftermarket is increasing by billions a year, and GM can no longer over look this fact. They have shown commitment to sport compact cars, along with new found lines like the kappa roadsters and the rebirth of the sports coupe.
I hope as much as the next guy here, that all these camaro rumors are true, and that I wont be disappointed or let down when 07 or 08 rolls around.
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Old 04-16-2004, 11:49 AM
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Good letter, but I don't think you understand the import scene at all.

The import scene is all about getting the most power from the smallest so-called high tech engine possible. If it has more than 4 cylinders, doesn't have overhead cams, and doesn't have variable timing or some type of blower (supercharger or turbo) it's not going to cut it. Especially a smallblock V8, regardless as to how much power it puts out and how great it's fuel economy is. It's just that simple.

GM's secret weapon is the new Ecotec 4 they are starting to turn the heat up on. It just got a supercharger in it's Saturn Ion Redline cars, and in a few months, we'll be able to get the blown Ecotec in the Colbalt SS. If you want a RWD import fighter, an Ecotec Pontiac Solstice with a supercharger and the parts log GM seems to be promising is going to be a tough competitor for the import market... especially if these parts are cheaper than what's being offered in Honda & Toyota catalogues!

The import scene isn't about muscle cars. Mustang has made a credible entry in the market because it's Mustang has OHC V8s, and thenew GTO is getting some attention on the drifting circuit (the effect of Pontiac race money) but even those are different scenes.

The import scene started when kids started buying second hand import sedans (very cheap to insure) and alot of aftermarket and factory performance arms took advantage by making a ton of performance parts. That's how the whole thing got started, and it's not going away, so viewing it as a fad is pretty foolish. Chrysler made an investment in this market via Neon SRT-4, and to say it's kicking a** in sales and "Street Rep" would be an understatement. Chrysler is also backing it up with low cost performance add-ons. A winning move.

Gotta take time to look at the whole picture in order to compete here. It's not about throwing a big engine in a car, and going hunting. If that's all it took, Camaro and Firebird would still be around today. The import performance crowd is a totally different performance branch, just like the Drag Strip racers are different from the Track racers. Different group, different purpose.

And, though they are late to the party, GM's back on the job.
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Old 04-16-2004, 06:33 PM
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Hey Rob98Z...

GREAT letter.....and it expresses the passion that we all feel.

I get a few letters very much like yours. Unfortunately, I get some that I simply would not want to pass on to *anyone*......

GuionM is correct in most of what he says about the 4 cylinder market.

That said, you can be assured that your letter is being forwarded and will be part of my "homework" assignment that I asked everyone to get involved in.

(note to the rest of you.....I'm now up to a mind boggling 9 replies......quitcherbitchin and GET CRACKIN!)
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Old 04-16-2004, 06:38 PM
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GuinoM makes a very good point. (he does that a lot! )

The import scene is not a fad.

In 25 years, the young crowd of today will be older...and I suspect some of the imports of today will be the classics of tomorrow.

(think about this...the 1969 Camaro had a so-so resale value in the early 70s......try to buy one today.......it is a true classic and men my age have their pulse quicken at the sight of one......)
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Old 04-16-2004, 07:53 PM
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I agree with the import assessment,but,I feel that someday some of those people will be turned from the darkside.every time I go by a hot import in the mach 1 they just stare.Every time I leave one in the dust you just know that someday, when they can afford it ,some will switch to domestic V8 muscle(unless toyota and nissan do a V8 performance car).
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Old 04-17-2004, 09:11 AM
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IZ28 - The 3rd Gen is still my favorite as far as "Looks" go.

BigAl - I thought GM hit the target spot on with the new GTO. Lots of professionals simply want a domestic alternative to the BMW for sedan performance and don't want a "teenagers" car sitting in their reserved parking spot. No scoops necessary. And weight is a nit that is picked in an otherwise great car. Would I rather have butt kicking 3700 pound sedan or... none at all?

RedPlanet - Thanks!

Guion - I share many of your assessments. Although, because of my job I've moved around alot in the past 5 years and have noticed a growing trend. Former import enthusiasts who switched to F-body's due to the old $/hp equation. The import scene is not a fad but they are not immune to the laws of economics. I see it more as a minor league feeder system where those who decide to take autosports more serious eventually graduating to more practical V8 RWD autos in the future. Overall, the import craze should be a net positive for us. The larger it gets the more who will want to upgrade to a "Real" peformance machine. That's assuming there are viable models that will appeal. As Mach1 stated, the draw of a sweet sounding V8 cannot be denied.
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Old 04-17-2004, 09:42 AM
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Originally posted by Red Planet

The import scene is not a fad.

In 25 years, the young crowd of today will be older...and I suspect some of the imports of today will be the classics of tomorrow.

(think about this...the 1969 Camaro had a so-so resale value in the early 70s......try to buy one today.......it is a true classic and men my age have their pulse quicken at the sight of one......)
I cannot agree more...

A tuned, sophisticated 4 cylinder is the in thing. It does not matter that about 90% of the VTEC Civics, Accords and Celica GTSs I pull up next to I can annihilate. It does not matter that I can pull a high 13 second 1/4 mile with a SBC designed in 92, and still knock down almost 30 MPG on my way to the best damn car show around (F body Gathering 2004, anyone??).

What matters to these kids is that the Civic can be bought cheap, it can be modded cheap, it has an aura of sophistication, tends to be fairly reliable, and has that techno aura to it. These are kids that may very well grow up into a RWD V8 performance car if they REALLY want to go fast...but this is not a fad. The reality of FWD 4 cylinder performance is here to stay...

25 years from now 45 year old guys will look at that 2000 Civic Si at a car show and say "now that's a classic." It has not happened yet because Japanese performance cars are not old enough yet. And the ones that are had little impact. '80s MR2 anyone? How about the overweight rust bucket Supra Turbo? Yeah, right...

But '99-'00 Civic Si's, WRXs, EVOs, turbo DSMs changed all that. One reason they are not considered classics yet is because to go along with the whole techno theme, this group always wants the newest and the greatest. The loyalty has not been established yet...

But those 45 year olds, they will remember someday thumping to Jay Z in their Civic Si back in the day, thinking they were the greatest...much the way I did in my Z28 just a few years ago at college. The difference is, at that point they will covet these cars. No one denies a '97 Z28 performs better than a '67 Z28...but any person I know knows what they'd rather have...at some point, it won't be about the newest and greatest, but about what had an impact on THEM.

These people will grow, and buy into something else. I hope blown Cobalts and Saturns will bring them into GM, and GTOs and 5th gens will KEEP THEM HERE. That's what GM needs right now...a properly done Cobalt is actually more important to GMs future than a 5th gen at this point...

Blasphemy? Maybe. But the next time you see that kid in the hopped up Civic, consider what GM gives him for options. About the same they give us, right now at least. And you know what? His portion of the market is more crucial...GM already has a lot of us....
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Old 04-17-2004, 09:42 AM
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Originally posted by Red Planet

The import scene is not a fad.

In 25 years, the young crowd of today will be older...and I suspect some of the imports of today will be the classics of tomorrow.

(think about this...the 1969 Camaro had a so-so resale value in the early 70s......try to buy one today.......it is a true classic and men my age have their pulse quicken at the sight of one......)
I cannot agree more...

A tuned, sophisticated 4 cylinder is the in thing. It does not matter that about 90% of the VTEC Civics, Accords and Celica GTSs I pull up next to I can annihilate. It does not matter that I can pull a high 13 second 1/4 mile with a SBC designed in 92, and still knock down almost 30 MPG on my way to the best damn car show around (F body Gathering 2004, anyone??).

What matters to these kids is that the Civic can be bought cheap, it can be modded cheap, it has an aura of sophistication, tends to be fairly reliable, and has that techno aura to it. These are kids that may very well grow up into a RWD V8 performance car if they REALLY want to go fast...but this is not a fad. The reality of FWD 4 cylinder performance is here to stay...

25 years from now 45 year old guys will look at that 2000 Civic Si at a car show and say "now that's a classic." It has not happened yet because Japanese performance cars are not old enough yet. And the ones that are had little impact. '80s MR2 anyone? How about the overweight rust bucket Supra Turbo? Yeah, right...

But '99-'00 Civic Si's, WRXs, EVOs, turbo DSMs changed all that. One reason they are not considered classics yet is because to go along with the whole techno theme, this group always wants the newest and the greatest. The loyalty has not been established yet...

But those 45 year olds, they will remember someday thumping to Jay Z in their Civic Si back in the day, thinking they were the greatest...much the way I did in my Z28 just a few years ago at college. The difference is, at that point they will covet these cars. No one denies a '97 Z28 performs better than a '67 Z28...but any person I know knows what they'd rather have...at some point, it won't be about the newest and greatest, but about what had an impact on THEM.

These people will grow, and buy into something else. I hope blown Cobalts and Saturns will bring them into GM, and GTOs and 5th gens will KEEP THEM HERE. That's what GM needs right now...a properly done Cobalt is actually more important to GMs future than a 5th gen at this point...

Blasphemy? Maybe. But the next time you see that kid in the hopped up Civic, consider what GM gives him for options. About the same they give us, right now at least. And you know what? His portion of the market is more crucial...GM already has a lot of us....
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Old 04-17-2004, 11:44 AM
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R98Z

I do think the import thing will go away, to an extent. I think as they grow up they will move on to musclecars. It's really starter thing to most of them. I know of a few that were all into the import thing only a few years ago who are now into muscle and could care less about imports. I also know a few of them that admitted that they wanted to start with a pretty slow car first and then move onto musclecars a few years later when they felt that they could handle it.
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Old 04-17-2004, 01:31 PM
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Originally posted by guionM
Chrysler made an investment in this market via Neon SRT-4, and to say it's kicking a** in sales and "Street Rep" would be an understatement. Chrysler is also backing it up with low cost performance add-ons. A winning move.
Between the current oversupply situation and the price increase, the SRT-4 is looking like a spent force. Small local dealers have 3 or so apiece, and they aren't moving. The addition of a "Quaife" LSD doesn't justify the $1,000 bump in MSRP, nor does the 15hp bump that was mostly accomplished on paper. (Last year's car was seriously underated, the current car is less so.)

In essence, the SRT-4 is a $21K Neon. Is one SRT-4 worth 2.3 normal Neons?
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Old 04-17-2004, 01:46 PM
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ahh. the SRT-4 is selling like hot cakes. I think its the best thing any of the big 3 have done for the import market ever. The SRT4 is very underated, even still. There are kids on the SRT4 forums putting 240 to the wheels on a stock SRT4. This car is not to be played with. This is your modern day muscle car. This is really the first time in american you can buy high powerd, 13 sec stock car for 20k. The WRX is still more expensive, and still slower.
Im glad GM is getting into it now, just wish it was turbocharged. Which leads me to my mini-rant.

Why didnt GM turbocharge the 2.0 ecotec? We see turbocharged ecotecs running down the track, setting speed records, and being the building block for the next wave of GM's powerful engines. The ecotec is building up a lot of street cred, I just wish that GM dropped the supercharger, and took the turbocharged 2.2 from the Saab 9-3 and dropped that into the Cobalt and Ion. Turbo's is what these kids want. I talked to a lot of my friends, and they all say a turbo would have been better. Walking around the import booths at NYIAS around the WRX and Evo talking to them, and they all love turbocharged power. Turbochargers is like the big block or hemi for the comapct generation. Supercharger was nice, and it makes power, but drop some more coin and make a turbocharged engine. There are tuners that are making 240whp with a low boost 2.2 ecotec, and we all know GM has many juiced up ecotecs. Why not just cary what you learned from racing, and put it into the cars?
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Old 04-17-2004, 06:17 PM
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Originally posted by Red Planet
GuinoM makes a very good point. (he does that a lot! )

The import scene is not a fad.

In 25 years, the young crowd of today will be older...and I suspect some of the imports of today will be the classics of tomorrow.

(think about this...the 1969 Camaro had a so-so resale value in the early 70s......try to buy one today.......it is a true classic and men my age have their pulse quicken at the sight of one......)
Not to mention that the guy who's buying a Colbalt SS and packing on performance goodies next year at age 23 or so will be the same guy picking up a new high powered Camaro at age 35 or so.

I bought a 2 year old police Mustang back in 87 and over the time I had it, I added many items & had a great experience with that car. So much so that I bought a Thunderbird SC later on. I didn't have as much time to dabble with aftermarket add-ons as I did when I was younger, but I still (at the time) liked the brand and wanted performance. the Bird was a complete package.

Even though people my age today dabble with FWD cars, they will move up to other cars from the same brand if they have great experiences and memories with those 1st new cars.

In short, today's buyers of cheap FWD "tuner" Chevrolet Colbalts and Pontiac Solsitces are tomorrow's buyers of those 5th gen Camaro SSs or Z28s, and Pontiac GTOs!

BTW: Thanks for the complement FBF. Now, please don't let them put autolights on the next "Chevy sports coupe"....... pretty please???
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Old 04-17-2004, 07:10 PM
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We just announced a Supercharger kit for the Ecotech engine...at the International Auto Salon in LA about two weeks ago........
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