Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
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Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
AUTOMAKER REACHES TURNING POINT: What will Wagoner do?
BY JEFFREY McCRACKEN
FREE PRESS BUSINESS WRITER
April 8, 2005
Rick Wagoner faces some tough decisions.
Now that General Motors Corp.'s 52-year-old chief executive officer has taken back responsibility of GM North America, everyone from union officials and auto dealers to Wall Street wonders what exactly Wagoner will do to turn around GM's bread-and-butter division, which is losing money.
ASSOCIATED PRESS
GM CEO Rick Wagoner has to fix North American operations.
Wagoner, GM's CEO since 2000, took over as head of GM's North American operations Monday, and insiders say he's already pressing hard for answers.
In a meeting this week with his North American Strategy Board -- a top-level group that includes former North American head Gary Cowger, sales and marketing head Mark LaNeve, North American powertrain chief Thomas Stephens and North American engineering head Edward C. Koerner -- Wagoner was "very aggressive," said a GM official familiar with the meeting, who asked not to be named.
"He made it very clear to everyone the seriousness of the situation in North America," said the official. "A lot of tougher questions were asked."
The levers Wagoner can pull are somewhat limited. He can't, for example, make Toyota Motor Corp. go away or make health care inflation halt. And he can't make GM's all-important, next generation of full-size trucks hit showrooms this weekend. (That will have to wait until 2006.)
GM insiders say Wagoner's focus will be on shaking up the automaker's sales and marketing arm by emphasizing products such as the OnStar communications system more in advertising, making GM's global manufacturing operation act like one business instead of regional fiefdoms and -- to no surprise -- cutting costs.
The one cost GM is most focused on: health care. The automaker spent $5.2 billion in cash on health care last year.
Wall Street financial analysts and auto experts predict a variety of measures Wagoner could take. They include asking the UAW to shift more of the health care burden to workers as much as possible under the current contract, making a sizable cut to GM's $2-a-year dividend to shareholders and possibly closing an assembly plant or two.
That last measure -- closing a plant -- is always very sensitive and only now are people whispering about it. Because plant closings are forbidden under the UAW national agreement, any plant that closes would technically stay open until the contract expires in 2007, but the workers there would be laid off and the plant would sit idle.
Some predict Wagoner will need to soon take drastic steps -- namely a restructuring akin to that taken by Ford Motor Co. in 2002, which claimed 20,000 jobs and several plants.
"By the end of the summer I think he has to announce a Ford-like restructuring where he closes some plants and gets concessions from the UAW within the current agreement. All of Wall Street is looking at GM and figuring out what kind of restructuring is needed, and then they will try to force it on the company," said Sean McAlinden, economist and labor expert at the Center for Automotive Research in Ann Arbor.
GM spokesman Brian Akre said he couldn't comment on whether such a large cut in jobs is needed but added "we've already been pretty aggressive in our cuts on the salaried side."
Akre added that GM's plan in North America "will become clearer over the next few weeks."
Wagoner oversaw GM's North American operation from 1994 to 1998, a period in which the company decided to close plenty of assembly plants -- such as Buick City Assembly in Flint and the North Tarrytown, N.Y., minivan plant -- amid falling market share. GM's share of the world's biggest, most-profitable market, the United States, fell from 34 percent to 30 percent during his tenure.
Today, GM would love dearly to have 30 percent of the U.S. market.
It had 27.3 percent of the market in 2004, down from 28 percent in 2003. So far in 2005, its share is down to a frightening 25.4 percent.
"There's no magic bullet for GM. I am sure they are looking at things that will share the pain among shareholders, white-collar workers, blue-collar workers, and suppliers," said Jack DiFranco, managing director for Stout Risius Ross, a Farmington Hills financial-advisory firm that handles many corporate restructurings.
"GM will survive and go on, but not without some pain. There's always pain in these," said DiFranco.
BY JEFFREY McCRACKEN
FREE PRESS BUSINESS WRITER
April 8, 2005
Rick Wagoner faces some tough decisions.
Now that General Motors Corp.'s 52-year-old chief executive officer has taken back responsibility of GM North America, everyone from union officials and auto dealers to Wall Street wonders what exactly Wagoner will do to turn around GM's bread-and-butter division, which is losing money.
ASSOCIATED PRESS
GM CEO Rick Wagoner has to fix North American operations.
Wagoner, GM's CEO since 2000, took over as head of GM's North American operations Monday, and insiders say he's already pressing hard for answers.
In a meeting this week with his North American Strategy Board -- a top-level group that includes former North American head Gary Cowger, sales and marketing head Mark LaNeve, North American powertrain chief Thomas Stephens and North American engineering head Edward C. Koerner -- Wagoner was "very aggressive," said a GM official familiar with the meeting, who asked not to be named.
"He made it very clear to everyone the seriousness of the situation in North America," said the official. "A lot of tougher questions were asked."
The levers Wagoner can pull are somewhat limited. He can't, for example, make Toyota Motor Corp. go away or make health care inflation halt. And he can't make GM's all-important, next generation of full-size trucks hit showrooms this weekend. (That will have to wait until 2006.)
GM insiders say Wagoner's focus will be on shaking up the automaker's sales and marketing arm by emphasizing products such as the OnStar communications system more in advertising, making GM's global manufacturing operation act like one business instead of regional fiefdoms and -- to no surprise -- cutting costs.
The one cost GM is most focused on: health care. The automaker spent $5.2 billion in cash on health care last year.
Wall Street financial analysts and auto experts predict a variety of measures Wagoner could take. They include asking the UAW to shift more of the health care burden to workers as much as possible under the current contract, making a sizable cut to GM's $2-a-year dividend to shareholders and possibly closing an assembly plant or two.
That last measure -- closing a plant -- is always very sensitive and only now are people whispering about it. Because plant closings are forbidden under the UAW national agreement, any plant that closes would technically stay open until the contract expires in 2007, but the workers there would be laid off and the plant would sit idle.
Some predict Wagoner will need to soon take drastic steps -- namely a restructuring akin to that taken by Ford Motor Co. in 2002, which claimed 20,000 jobs and several plants.
"By the end of the summer I think he has to announce a Ford-like restructuring where he closes some plants and gets concessions from the UAW within the current agreement. All of Wall Street is looking at GM and figuring out what kind of restructuring is needed, and then they will try to force it on the company," said Sean McAlinden, economist and labor expert at the Center for Automotive Research in Ann Arbor.
GM spokesman Brian Akre said he couldn't comment on whether such a large cut in jobs is needed but added "we've already been pretty aggressive in our cuts on the salaried side."
Akre added that GM's plan in North America "will become clearer over the next few weeks."
Wagoner oversaw GM's North American operation from 1994 to 1998, a period in which the company decided to close plenty of assembly plants -- such as Buick City Assembly in Flint and the North Tarrytown, N.Y., minivan plant -- amid falling market share. GM's share of the world's biggest, most-profitable market, the United States, fell from 34 percent to 30 percent during his tenure.
Today, GM would love dearly to have 30 percent of the U.S. market.
It had 27.3 percent of the market in 2004, down from 28 percent in 2003. So far in 2005, its share is down to a frightening 25.4 percent.
"There's no magic bullet for GM. I am sure they are looking at things that will share the pain among shareholders, white-collar workers, blue-collar workers, and suppliers," said Jack DiFranco, managing director for Stout Risius Ross, a Farmington Hills financial-advisory firm that handles many corporate restructurings.
"GM will survive and go on, but not without some pain. There's always pain in these," said DiFranco.
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Posts: 13,713
From: The Golden State
Re: Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
I'm concerned about the emphasis on marketing. I know he can't snap his fingers and make cars appear, and I'm not an MBA like I think he is, but by the article, I feel he's missing other opportunities that go beyond promoting OnStar.
1. REALIZE ADVERTIZING AND MARKETING ALONE WON'T CUT IT!
If you are selling the same old things without making any changes, that noose Rick Wagoner stuck his head through will be the last thing he feels. You can't make new vehicles appear any quicker (if you could, it would have happened by now), so the trick is to get the most mileage humanly possible out of existing cars and available resources. The public has been bombarded by bad and dramatic news about GM. The trick now is to bombard back with some even more dramatic impressive news.
2. VALUE PRICING.
What's the average transaction price of their models. Find it, and make that the fixed price. It's likely to undercut the competition... without incentives.
3. ADVERTIZE THAT PRICE. COMPARE WITH THE COMPETITION.
If people look at the sticker on a Grand Prix & Impala, and the 300, the 300 is going to win, no contest. No one's going to factor in discounts when window shopping, and no one wants a salesman all over them telling them about incentives. Cut the price to what you're getting anyway, compare what you get for the price next to competitors, then Impalas and Grand Prixs start looking good again.
4. ELIMINATE VARIETY.
It cost money to make a variety of equptment levels. Set one single suspension level for each division. The Bonneville I drove should have never left the factory. Yet, the single suspension of the GXP across the board will no doubt save sone pennies. Each model should have a single alumunum wheel and tire size. It makes the car look better, adds value, eliminates the waste of various sizes and hubcaps(!), and again, saves some money. If anyone wants to upsize, sell it separately as a dealer option that brings a higher price.
5. MANDATE NO DICKER PRICES:
I know there's legal agreements involved, but if you can do it with Saturn, you can do it with other dealers. If they want to continue to hold their franchises, then they will adopt a no haggle pricing strategy. The biggest turn off in buying a new car stated over and over again is the experience of haggling and being on guard against the dealer taking advantage of the buyer. Not only will this generate great press... and alot of it, this will also attract people who simply don't want to come in and buy a car, straightforwardly. Saturn was supposed to spread to other GM dealers anyway. I think 15 years is long enough.
6. CREATE SPECIAL EDITIONS.
General Motors Performance Division has been around for 2 or 3 years, yet outside the Cadillac Vs and the Z06, what have they done? The immediate way to recast existing cars is to inject excitement via special limited edition performance models, something GM isn't doing. Buick needs a boost? Take a LeCrosse, paint it black, add Pontiac's GTP suspension, and the supercharged V6 give it a code name, instant halo car and a better image for Buick, without months or years of footdraging. All the work's been done already. Impala SS recast the Caprice, Grand National recast the Regal. It works. It takes only a few months to create. Who knows, like the GN & the Impy SS, you may create a new following.
7. DO WHATEVER YOU ARE ABLE TO DO TO GENERATE ENTHUSIASM & EXCITEMENT.
There is no reason an El Camino can't land on our shores 5 minutes after the 25% truck tarriffs are lifted, or that old CV6 Monaros with GTO drivetrains can't end up in Chevy showrooms as a limited edition Chevy. It would take about 10 minutes to decide and probally a month or 2 to implement the cutting of base trim Pontiacs & Buicks that overlap with each other or with Chevrolet. That will make Buick a near luxury car and Pontiac an excitement division almost overnight, and will mean it! Advertize these things with the public.
Throwing alot of OnStar commercials, or pushing daytime running lights aren't going to lessen my desire for a Toyota Camary, let alone a 300C or Charger R/T. What it will do is make GM seem even more like a WalMart... buying a car simply because of it's utility, not because I actually like the thing. Hate to say it, but car buying is an emotional experience more than a cerebrial one, otherwise everyone would be driving used (less depreciation).
The public needs something that's going to make them forget that within the past month it seems like GM can't make money, has a fleet of cars everyone's been seeing for years, and can't develop new cars on time.
1. REALIZE ADVERTIZING AND MARKETING ALONE WON'T CUT IT!
If you are selling the same old things without making any changes, that noose Rick Wagoner stuck his head through will be the last thing he feels. You can't make new vehicles appear any quicker (if you could, it would have happened by now), so the trick is to get the most mileage humanly possible out of existing cars and available resources. The public has been bombarded by bad and dramatic news about GM. The trick now is to bombard back with some even more dramatic impressive news.
2. VALUE PRICING.
What's the average transaction price of their models. Find it, and make that the fixed price. It's likely to undercut the competition... without incentives.
3. ADVERTIZE THAT PRICE. COMPARE WITH THE COMPETITION.
If people look at the sticker on a Grand Prix & Impala, and the 300, the 300 is going to win, no contest. No one's going to factor in discounts when window shopping, and no one wants a salesman all over them telling them about incentives. Cut the price to what you're getting anyway, compare what you get for the price next to competitors, then Impalas and Grand Prixs start looking good again.
4. ELIMINATE VARIETY.
It cost money to make a variety of equptment levels. Set one single suspension level for each division. The Bonneville I drove should have never left the factory. Yet, the single suspension of the GXP across the board will no doubt save sone pennies. Each model should have a single alumunum wheel and tire size. It makes the car look better, adds value, eliminates the waste of various sizes and hubcaps(!), and again, saves some money. If anyone wants to upsize, sell it separately as a dealer option that brings a higher price.
5. MANDATE NO DICKER PRICES:
I know there's legal agreements involved, but if you can do it with Saturn, you can do it with other dealers. If they want to continue to hold their franchises, then they will adopt a no haggle pricing strategy. The biggest turn off in buying a new car stated over and over again is the experience of haggling and being on guard against the dealer taking advantage of the buyer. Not only will this generate great press... and alot of it, this will also attract people who simply don't want to come in and buy a car, straightforwardly. Saturn was supposed to spread to other GM dealers anyway. I think 15 years is long enough.
6. CREATE SPECIAL EDITIONS.
General Motors Performance Division has been around for 2 or 3 years, yet outside the Cadillac Vs and the Z06, what have they done? The immediate way to recast existing cars is to inject excitement via special limited edition performance models, something GM isn't doing. Buick needs a boost? Take a LeCrosse, paint it black, add Pontiac's GTP suspension, and the supercharged V6 give it a code name, instant halo car and a better image for Buick, without months or years of footdraging. All the work's been done already. Impala SS recast the Caprice, Grand National recast the Regal. It works. It takes only a few months to create. Who knows, like the GN & the Impy SS, you may create a new following.
7. DO WHATEVER YOU ARE ABLE TO DO TO GENERATE ENTHUSIASM & EXCITEMENT.
There is no reason an El Camino can't land on our shores 5 minutes after the 25% truck tarriffs are lifted, or that old CV6 Monaros with GTO drivetrains can't end up in Chevy showrooms as a limited edition Chevy. It would take about 10 minutes to decide and probally a month or 2 to implement the cutting of base trim Pontiacs & Buicks that overlap with each other or with Chevrolet. That will make Buick a near luxury car and Pontiac an excitement division almost overnight, and will mean it! Advertize these things with the public.
Throwing alot of OnStar commercials, or pushing daytime running lights aren't going to lessen my desire for a Toyota Camary, let alone a 300C or Charger R/T. What it will do is make GM seem even more like a WalMart... buying a car simply because of it's utility, not because I actually like the thing. Hate to say it, but car buying is an emotional experience more than a cerebrial one, otherwise everyone would be driving used (less depreciation).
The public needs something that's going to make them forget that within the past month it seems like GM can't make money, has a fleet of cars everyone's been seeing for years, and can't develop new cars on time.
Last edited by guionM; Apr 8, 2005 at 07:13 PM.
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Joined: Jun 2000
Posts: 2,413
From: Marlton NJ
Re: Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
A FREAKING MEN
Originally Posted by guionM
I'm concerned about the emphasis on marketing. I know he can't snap his fingers and make cars appear, and I'm not an MBA like I think he is, but by the article, I feel he's missing other opportunities that go beyond promoting OnStar.
1. REALIZE ADVERTIZING AND MARKETING ALONE WON'T CUT IT!
If you are selling the same old things without making any changes, that noose Rick Wagoner stuck his head through will be the last thing he feels. You can't make new vehicles appear any quicker (if you could, it would have happened by now), so the trick is to get the most mileage humanly possible out of existing cars and available resources. The public has been bombarded by bad and dramatic news about GM. The trick now is to bombard back with some even more dramatic impressive news.
2. VALUE PRICING.
What's the average transaction price of their models. Find it, and make that the fixed price. It's likely to undercut the competition... without incentives.
3. ADVERTIZE THAT PRICE. COMPARE WITH THE COMPETITION.
If people look at the sticker on a Grand Prix & Impala, and the 300, the 300 is going to win, no contest. No one's going to factor in discounts when window shopping, and no one wants a salesman all over them telling them about incentives. Cut the price to what you're getting anyway, compare what you get for the price next to competitors, then Impalas and Grand Prixs start looking good again.
4. ELIMINATE VARIETY.
It cost money to make a variety of equptment levels. Set one single suspension level for each division. The Bonneville I drove should have never left the factory. Yet, the single suspension of the GXP across the board will no doubt save sone pennies. Each model should have a single alumunum wheel and tire size. It makes the car look better, adds value, eliminates the waste of various sizes and hubcaps(!), and again, saves some money. If anyone wants to upsize, sell it separately as a dealer option that brings a higher price.
5. MANDATE NO DICKER PRICES:
I know there's legal agreements involved, but if you can do it with Saturn, you can do it with other dealers. If they want to continue to hold their franchises, then they will adopt a no haggle pricing strategy. The biggest turn off in buying a new car stated over and over again is the experience of haggling and being on guard against the dealer taking advantage of the buyer. Not only will this generate great press... and alot of it, this will also attract people who simply don't want to come in and buy a car, straightforwardly. Saturn was supposed to spread to other GM dealers anyway. I think 15 years is long enough.
6. CREATE SPECIAL EDITIONS.
General Motors Performance Division has been around for 2 or 3 years, yet outside the Cadillac Vs and the Z06, what have they done? The immediate way to recast existing cars is to inject excitement via special limited edition performance models, something GM isn't doing. Buick needs a boost? Take a LeCrosse, paint it black, add Pontiac's GTP suspension, and the supercharged V6 give it a code name, instant halo car and a better image for Buick, without months or years of footdraging. All the work's been done already. Impala SS recast the Caprice, Grand National recast the Regal. It works. It takes only a few months to create. Who knows, like the GN & the Impy SS, you may create a new following.
7. DO WHATEVER YOU ARE ABLE TO DO TO GENERATE ENTHUSIASM & EXCITEMENT.
There is no reason an El Camino can't land on our shores 5 minutes after the 25% truck tarriffs are lifted, or that old CV6 Monaros with GTO drivetrains can't end up in Chevy showrooms as a limited edition Chevy. It would take about 10 minutes to decide and probally a month or 2 to implement the cutting of base trim Pontiacs & Buicks that overlap with each other or with Chevrolet. That will make Buick a near luxury car and Pontiac an excitement division almost overnight, and will mean it! Advertize these things with the public.
Throwing alot of OnStar commercials, or pushing daytime running lights aren't going to lessen my desire for a Toyota Camary, let alone a 300C or Charger R/T. What it will do is make GM seem even more like a WalMart... buying a car simply because of it's utility, not because I actually like the thing. Hate to say it, but car buying is an emotional experience more than a cerebrial one, otherwise everyone would be driving used (less depreciation).
The public needs something that's going to make them forget that within the past month it seems like GM can't make money, has a fleet of cars everyone's been seeing for years, and can't develop new cars on time.
1. REALIZE ADVERTIZING AND MARKETING ALONE WON'T CUT IT!
If you are selling the same old things without making any changes, that noose Rick Wagoner stuck his head through will be the last thing he feels. You can't make new vehicles appear any quicker (if you could, it would have happened by now), so the trick is to get the most mileage humanly possible out of existing cars and available resources. The public has been bombarded by bad and dramatic news about GM. The trick now is to bombard back with some even more dramatic impressive news.
2. VALUE PRICING.
What's the average transaction price of their models. Find it, and make that the fixed price. It's likely to undercut the competition... without incentives.
3. ADVERTIZE THAT PRICE. COMPARE WITH THE COMPETITION.
If people look at the sticker on a Grand Prix & Impala, and the 300, the 300 is going to win, no contest. No one's going to factor in discounts when window shopping, and no one wants a salesman all over them telling them about incentives. Cut the price to what you're getting anyway, compare what you get for the price next to competitors, then Impalas and Grand Prixs start looking good again.
4. ELIMINATE VARIETY.
It cost money to make a variety of equptment levels. Set one single suspension level for each division. The Bonneville I drove should have never left the factory. Yet, the single suspension of the GXP across the board will no doubt save sone pennies. Each model should have a single alumunum wheel and tire size. It makes the car look better, adds value, eliminates the waste of various sizes and hubcaps(!), and again, saves some money. If anyone wants to upsize, sell it separately as a dealer option that brings a higher price.
5. MANDATE NO DICKER PRICES:
I know there's legal agreements involved, but if you can do it with Saturn, you can do it with other dealers. If they want to continue to hold their franchises, then they will adopt a no haggle pricing strategy. The biggest turn off in buying a new car stated over and over again is the experience of haggling and being on guard against the dealer taking advantage of the buyer. Not only will this generate great press... and alot of it, this will also attract people who simply don't want to come in and buy a car, straightforwardly. Saturn was supposed to spread to other GM dealers anyway. I think 15 years is long enough.
6. CREATE SPECIAL EDITIONS.
General Motors Performance Division has been around for 2 or 3 years, yet outside the Cadillac Vs and the Z06, what have they done? The immediate way to recast existing cars is to inject excitement via special limited edition performance models, something GM isn't doing. Buick needs a boost? Take a LeCrosse, paint it black, add Pontiac's GTP suspension, and the supercharged V6 give it a code name, instant halo car and a better image for Buick, without months or years of footdraging. All the work's been done already. Impala SS recast the Caprice, Grand National recast the Regal. It works. It takes only a few months to create. Who knows, like the GN & the Impy SS, you may create a new following.
7. DO WHATEVER YOU ARE ABLE TO DO TO GENERATE ENTHUSIASM & EXCITEMENT.
There is no reason an El Camino can't land on our shores 5 minutes after the 25% truck tarriffs are lifted, or that old CV6 Monaros with GTO drivetrains can't end up in Chevy showrooms as a limited edition Chevy. It would take about 10 minutes to decide and probally a month or 2 to implement the cutting of base trim Pontiacs & Buicks that overlap with each other or with Chevrolet. That will make Buick a near luxury car and Pontiac an excitement division almost overnight, and will mean it! Advertize these things with the public.
Throwing alot of OnStar commercials, or pushing daytime running lights aren't going to lessen my desire for a Toyota Camary, let alone a 300C or Charger R/T. What it will do is make GM seem even more like a WalMart... buying a car simply because of it's utility, not because I actually like the thing. Hate to say it, but car buying is an emotional experience more than a cerebrial one, otherwise everyone would be driving used (less depreciation).
The public needs something that's going to make them forget that within the past month it seems like GM can't make money, has a fleet of cars everyone's been seeing for years, and can't develop new cars on time.
Disciple
Joined: Nov 2000
Posts: 1,479
Re: Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
Nice ideas, Guy.
Too bad they will mostly fall on deaf ears.
GM needs less talk and more action.
Is telling us that stabilitrack will be standard on all GM vehicles ...by 2010 ....a good way to sell cars....today? And didn't they learn with ABS that the market wasn't ready to pay a premium for standard safety features?
Too bad they will mostly fall on deaf ears.
GM needs less talk and more action.
Is telling us that stabilitrack will be standard on all GM vehicles ...by 2010 ....a good way to sell cars....today? And didn't they learn with ABS that the market wasn't ready to pay a premium for standard safety features?
Last edited by poSSum; Apr 8, 2005 at 08:31 PM.
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Joined: Feb 2000
Posts: 2,026
From: Japan
Re: Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
No haggle pricing across the board would be a nice start. It might even be a way out of their incentive problem and get them back on track on pricing.
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Joined: Dec 2002
Posts: 681
Re: Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
Originally Posted by guionM
4. ELIMINATE VARIETY.
It cost money to make a variety of equptment levels. Set one single suspension level for each division. The Bonneville I drove should have never left the factory. Yet, the single suspension of the GXP across the board will no doubt save sone pennies. Each model should have a single alumunum wheel and tire size. It makes the car look better, adds value, eliminates the waste of various sizes and hubcaps(!), and again, saves some money. If anyone wants to upsize, sell it separately as a dealer option that brings a higher price.
6. CREATE SPECIAL EDITIONS.
General Motors Performance Division has been around for 2 or 3 years, yet outside the Cadillac Vs and the Z06, what have they done? The immediate way to recast existing cars is to inject excitement via special limited edition performance models, something GM isn't doing. Buick needs a boost? Take a LeCrosse, paint it black, add Pontiac's GTP suspension, and the supercharged V6 give it a code name, instant halo car and a better image for Buick, without months or years of footdraging. All the work's been done already. Impala SS recast the Caprice, Grand National recast the Regal. It works. It takes only a few months to create. Who knows, like the GN & the Impy SS, you may create a new following.
Registered User
Joined: Jun 2001
Posts: 545
From: Tampa
Re: Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
unions in this country need to be abolished. they are a bloodsucking parasite on american business and industry in the 21st century. granted there was a time when they were essential for protection of workers rights, but those days are long gone. the costs businesses have to pay for shoddy union labor does not equal out to the price the public will pay for a similar product made by better made non-union goods and services. outsourcing anyone?
loot at eastern airlines and pan am. a huge part of those companies going belly-up was greedy union labor that refused to make concessions. result? company goes out of business and everyone loses their jobs because of greedy unions.
same culture at GM unions....unions want more & more & more and to hell with the overall health of the company, long term security, and keeping jobs in america.
unions need to go NOW.
loot at eastern airlines and pan am. a huge part of those companies going belly-up was greedy union labor that refused to make concessions. result? company goes out of business and everyone loses their jobs because of greedy unions.
same culture at GM unions....unions want more & more & more and to hell with the overall health of the company, long term security, and keeping jobs in america.
unions need to go NOW.
Registered User
Joined: Oct 1999
Posts: 370
From: Honolulu, Hi USA
Re: Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
GM has gotten too big and compartmentalized. They need less commitees, more car guys. Bring out product lines that your specific target audience wants, not needs to be convinced we need. They dropped the ball on the LE market. The Caprice owned that segment. Cancellation of a RWD sedan, with no replacement was typical of GM think tank inefficiency. Cancellation of a branded model line like the F body without a viable replacement left a void in the lineup and got guys like me to jump ship to DCX. Marketing aside, products sell. I am still waiting for this "American Revolution." Aside from the Corvette, CTS, STS, there is no enthusiast car within the reach of the majority of the population. Will I buy a Corvette, yes. Will it be within the next year, no. Will I always be a GM man, yes. Do I own a single GM product, No! I currently own one DCX product, one Toyota, and have on order another DCX product, and plan on replacing the Toyota with another DCX product. RWD V-8 affordable performance sells! How many fwd cars do BMW produce. Aren't they the ultimate driving machines. M cars do not sit on the lots that need rebates to move them. V series car prolly will. Not too mention V series cars are at or near BMW prices without the reputation. Push, then pull. GM needs to return to it's rightful place as THE brand to buy. My parents bought Chevys, moved up to Oldsmobile, and Buicks, and even bought one Caddy. It wasn't possible to buy another brand. GM does not have that type of following anymore. Poor quality control, terrible reliability ratings has spoiled a lot of GM faithful. Sorry for the rant.
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Joined: Mar 2005
Posts: 47
Re: Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
Originally Posted by rlchv70
Sounds good, except these 2 are contradicting.
I agreed almost wholeheartedly with GuionM's points, except the one about eliminating variety.
I was at a Chevy dealer yesterday having some hail damage estimated and took a look at 3 SSR's on the lot. THEY STICKERED OVER 50K!!!!!!! I don't care how much they get discounted, when you see that, the immediate response is that I can get serious Euro sport machines for that kind of money. This is in vette territory. I didn't hang around long enough for the salesman to tell me how much he really wanted for it - Opportunity lost!
But that not the point of my post. The problem was they all looked alike. You have a choice of black or silver or "paint bucket poured over it red or yellow" (I know, five choices are offered, but not seen on lots). Why aren't more color choices offered. Its a 50K car, for cripes sake. I know, the beancounters want to save a nickel.
My point is, this is one area where the domestics actually have an advantage over the imports. It is next to impossible to order an import - takes forever. In this day of computer guided builds and inventories, why can't I tailor my car to my preferences, including color and accessories. I used to be able to do it, but that has been taken away. The domestics should emphasize this customization potential, not remove it. The pennies that this would cost, could pay off big. If need be, do it like MB and BMW. Make the buyer pay a premium for the privilige. Example in point: BMW charges $2000 to have your 3 series painted in a "non-standard" color and it takes months to get, but the faithful swoon over this. The beauty is that you can only order colors that the factory in question is putting on other models, so for $2000, BMW expends $0 plus a little bit of paperwork (which could be automated), and they don't even have to reload a paintgun.
Why hasn't GM seen this opportunity?
I hope this post wasn't too rambling.
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Re: Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
Originally Posted by dfmoeller
I agreed almost wholeheartedly with GuionM's points, except the one about eliminating variety.
My point is, this is one area where the domestics actually have an advantage over the imports. It is next to impossible to order an import - takes forever. In this day of computer guided builds and inventories, why can't I tailor my car to my preferences, including color and accessories. I used to be able to do it, but that has been taken away. The domestics should emphasize this customization potential, not remove it. The pennies that this would cost, could pay off big. If need be, do it like MB and BMW. Make the buyer pay a premium for the privilige. Example in point: BMW charges $2000 to have your 3 series painted in a "non-standard" color and it takes months to get, but the faithful swoon over this. The beauty is that you can only order colors that the factory in question is putting on other models, so for $2000, BMW expends $0 plus a little bit of paperwork (which could be automated), and they don't even have to reload a paintgun.
Why hasn't GM seen this opportunity?
I hope this post wasn't too rambling.
My point is, this is one area where the domestics actually have an advantage over the imports. It is next to impossible to order an import - takes forever. In this day of computer guided builds and inventories, why can't I tailor my car to my preferences, including color and accessories. I used to be able to do it, but that has been taken away. The domestics should emphasize this customization potential, not remove it. The pennies that this would cost, could pay off big. If need be, do it like MB and BMW. Make the buyer pay a premium for the privilige. Example in point: BMW charges $2000 to have your 3 series painted in a "non-standard" color and it takes months to get, but the faithful swoon over this. The beauty is that you can only order colors that the factory in question is putting on other models, so for $2000, BMW expends $0 plus a little bit of paperwork (which could be automated), and they don't even have to reload a paintgun.
Why hasn't GM seen this opportunity?
I hope this post wasn't too rambling.
While I dont expect many Domestic RWD V8 guys to be cross shopping a fwd 4cyl $18,000-$30,000 Mini Cooper , I think everyone with a love for cars should at least check out Mini's website @ www.miniusa.com and see how a car website should be done. I really wish GM would allow their cars to be customized and allow the customer to see how their car would look with each mod they want right on the website like Mini already does. Even though it takes between about two-three months to get your custom ordered Mini , Mini offers a full online tracking system so you can monitor your car through eveyr step from the paint shop, to assembly, to it being loaded on the cargo ship, and etc.
I had dreams of a Mini-like website and customization for the 5th Gen Camaro, but I doubt GM would ever do it.
Last edited by johnsocal; Apr 9, 2005 at 04:35 PM.
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Re: Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
If they decide to close a plant, anyone know which one would be the first to go? My uncle works in a GM plant and that is not the best news in the world.
More attention to marketing is a good and bad thing in my mind. It's good in the fact that I don't see many quality GM advertisements, although the commercial for the Solstice and the G6 coupe was pretty good. It's bad in the fact that the first rule in marketing is that no matter how well you market crap, it still won't sell becuase it's crap. GM has way too much offered in that category, and that should be the first place they cut, as we all know but they seem to ignore.
Why the hell is that?
More attention to marketing is a good and bad thing in my mind. It's good in the fact that I don't see many quality GM advertisements, although the commercial for the Solstice and the G6 coupe was pretty good. It's bad in the fact that the first rule in marketing is that no matter how well you market crap, it still won't sell becuase it's crap. GM has way too much offered in that category, and that should be the first place they cut, as we all know but they seem to ignore.
Why the hell is that?
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Joined: Mar 2005
Posts: 47
Re: Great article- "AUTOMAKER REACHES TURNING POINT: What will Wagoner do? "
Originally Posted by johnsocal
While I dont expect many Domestic RWD V8 guys to be cross shopping a fwd 4cyl $18,000-$30,000 Mini Cooper , I think everyone with a love for cars should at least check out Mini's website @ www.miniusa.com and see how a car website should be done. I really wish GM would allow their cars to be customized and allow the customer to see how their car would look with each mod they want right on the website like Mini already does. Even though it takes between about two-three months to get your custom ordered Mini , Mini offers a full online tracking system so you can monitor your car through eveyr step from the paint shop, to assembly, to it being loaded on the cargo ship, and etc.
I had dreams of a Mini-like website and customization for the 5th Gen Camaro, but I doubt GM would ever do it.
I had dreams of a Mini-like website and customization for the 5th Gen Camaro, but I doubt GM would ever do it.
This is the BMW process I alluded to earlier. Overall, we've taken a huge step backwards. In the 50s, 60s, 70s, and 80s, the manufacturers gave us huge choices. 30 standard colors per platform was not unusual with non-standard colors (GM's color pallete was rumored to be thousands of colors) costing less than 100 bucks. The option/accessory list was 3 or 4 pages long. And this was in the days before computerization/automation.
Contrast this with the current situation of 5 or 6 colors and 7 or 8 option packages today. The crazy part is the imports, at least the germans, seem to have it figured out. If I want to pay for it, MB will upholster my car in whatever material/color I want with whatever material I want for trim. Not cheap, but available. And I pay through the nose for the individuality. This doesn't cost money, it makes money. And one more time, the mass market Japanese offerings can't do it easily. These morons are throwing away a built in advantage. The domestics could offer delivery in 6-8 weeks or even less with adequate deposits.
I've said enough on this topic. Hopefully somebody is listening; somewhere.