linky

If there’s a face plant a comin’, I don’t

Actually, with regards to Hyundai, their global marketshare in 2006 actually dropped compared to 2005, and their US sales remained flat. Their profits also dropped.

GM (or all domestics) is going to have to have to change their corporate culture from the dealers to the UAW to the top level management. If they can’t or won’t they ware doomed and rightly so. Repeat after me: small cars are not bad, small cars are not bad. Not everyone wants an SUV, not everyone wants an SUV. Maybe if they went under they (UAW, dealers, management) would realize that they have to change. This is not 1978 anymore.

GM is going to have to move beyond marketting to the cowboys and muscle car gearheads. I’m not saying they have to turn their backs on the traditional customers but that GM needs to include new customers. Okay their big vehicles are good but their cars lag behind the competition.

Run around and ask the import drivers why they bought imports. Those are all the topics GM needs to address. Dealer experience, durability, clever and intelligent design, safety, styling, ability to buy something not SUV or truck based… On the topic of styling – TO ME – Detroit seems to like the pumped up (bloated) muscular look (like a boxer). The imports seem to have a lean athleticism – like a mountain climber or a bicycle racer.

The funny thing to me that GM has the import content in Europe that they could sell here and it has taken SO long for them to realize they can sell a wide portfolio of “world” products. I am so glad that Saturn is going to be the “import” division. Shame it took so long. I’d like to see GM combine all of their dealers into a single GM network where all dealers sell ALL GM products. Seems so obvious and would eliminate the need for all the rebadging. Oh – and use Saturn’s one price no haggle pricing.

I really see the need for an electric in GM’s lineup but they will they will have to educate the average American consumer for this product to be understood. Alter their expectations b/c it is not a do-all vehicle. Americans seem to buy their vehicles for what they MIGHT task it with. Not a bad idea but as the cost of fuel rises as China and India b/c big consumers like America, it will become more and more important. Detroit ought to see this coming – everyone else does – and get some product lined up now.

Put an American in a European compact or minicar (I’ve done this many times) and Americans tend to talk about it’s diminutive size and lack of horsepower and a relative spartan styling (if it is a basic city car). However after a while the intelligent design (value) of these cars becomes evident. They are simple to fix, cheap to purchase, cheap to operate (MPG, small tires), and usually clever designs to get the most out of their small size.

As a kid of the 1980’s I saw the imports had really good engines first that would rev unlike the iron Duke GM 4 cylinder. Good weight to power ratios. Fold down rear seats so small sedans could carry longer objects. AM/FM/Cassette. Sunroofs. 5 speed trannies. Rear seat shoulder belts. Better interior lighting (on some). 4 speakers with fader control. Better handling and braking b/c of a leaner car design. More durability. Multi-port injection. Then later as Detroit was forced to change their designs they would attach little emblems on the trunk lid to brag about their high output engines, their fuel injection, etc. etc. To someone who had no experience with imports those might be very impressive features but to an import driver, these domestics were brand new and already out of date. They are still behind the curve. FINALLY a real hybrid on the horizon. FINALLY more gears for the trannies. FINALLY GM is going to move from the 1990s to the new century. I don’t want to pay top price for out of date technology that doesn’t last. However if I could buy a new mid-80’s VW Rabbit at a reduced price (design is paid for several times over) I’d do it b/c the design was good then and now, and they were durable. My ‘84 Rabbit convertible was 10 yrs/190K miles old and we drove it from Naples to Rome, Italy at 160 kph many times. Sold it and it was still going strong. Should have imported it to the states when I came back to the USA.

It makes me wonder if GM is just out of touch, if they don’t have the development budget due to high legacy costs, if they are trying to “put one over on us”, or if they just don’t care. Whatever the case if make me think I don’t want many of their cars.

Got my fingers crossed for something with the Volt technology in it sooner rather than later…

Chris

airglow:

As I explained previously (somewhere up there), a temporary sales gain does not justify squandering a brand's image.

The badge-engineered, TWAT-winning GM minivans were successful– at the beginning. But a minivan from the "Excitement" division? Even the staunchest GM supporter must agree that it was NOT a good idea.

A Jeep that isn't a Jeep? Short term gain, long term pain.

I don't see how you can say that the Sonata's done a "face plant." Sales remain strong. And while you're free to criticize Hyundai for putting cars into rental fleets, the percentage of their products in fleets is still a LOT smaller than GM's current 25%. [NB: Eye-balling the "look" of most rental car lots is not the most scientific of methods for estimating rental fleet content.]

More to the point, Hyundai sales remained level in '06. GM's tanked by 8%. Hyundai is profitable. GM is so far from profit in the U.S. it's CEO won't even predict when it MIGHT generate positive cash flow. Hyundai's debt is under control. GM is mortgaged up to the eyeballs.

If there's a face plant a comin', I don't think it will be Hyundai's.  

Robert Farago: January 12th, 2007 at 1:52 pm z31: False option set. Toyota, Honda, Nissan, Hyundai, etc. all invest in their future AND make a profit.

Hey Bob, It appears the the Sonata has replaced the Taurus as the Rental Car of choice in the US. When is the Hyundai death watch series going to start?

I just love it when a car that is universally liked by the Auto Press and Enthusiasts does a face plant!! Hyundai Sonata, the new Taurus!! Hyundai has taken up the slack for both the Taurus and GM's reduced fleet sales from the looks of most rental car lots!! I equally love it when a car the Auto Press and Enthusiasts hate is a smash hit. Jeep Compass anyone? How do all you Compass haters like your crow cooked. I've always preferred Avians at least medium-well to avoid Salmonella. 

I.E., there is no NEED for a Buickman “salesman”.

“Salesmen” do only one thing according to my philosophy, and that is “take”.

Here are some responses by industry veterans after reading “Return to Greatness” Keep in mind only the first twenty steps were released. Other aspects remain confidential.

“I can’t thank you enough for sending The Plan. It is clear and logical. Implementation would be relatively easy and I have little doubt, based on our customer surveys, that such a program would be effective.” Art Spinella, CNWMR

“Frankly, your twenty points could not have made any more sense.” Gitas Jamekis, John Crane Inc.

“Wow, Jim, this is amazing. Some of these ideas might just work, by God. And Mark LaNeve dismissed this? I have looked at the website, and there is a ton of interesting stuff in there.” Dan Neil, Los Angeles Times

“Everything makes perfect sense in its appropriateness and simplicity.” Ed Garsten, Detroit News

“So, the legend grows.” Ed Lapham, Automotive News

“I think you hit the nail on the head.” Ed Wright, GM Plant Manager, retired.

“It is a blessing to hear your thoughts about GM. Being a Nissan dealer, I have watched the company do a 180 turnaround because of vision and dynamic leadership.” Ben Keras

“You remind me a little of the legendary Ed Cole.” Robert Harless, Preferred Media

“First of all, let me say that I think you’re doing everyone a great service.” Jason Stoddard, Centric

“Jim, just read your plan to return GM to Greatness. It all makes sense but how do we get the brass at GM to pay attention?” David Bruckman, Clay Matthews Auto Group

“”I will gladly put your name on my proxy.” GMAC Branch Manager

“I think it is the best thing to have happen to GM.” Anonymous, Bellagio Resort

“Buickman – Who knows more about selling cars than just about anybody.” Jerry Flint, Forbes Magazine

rtz:

While I have no doubt that GM will eventually have a "proper" hybrid engine, GM was "pretending" to AutoWeek that it already had one.

That ain't right.

“An available hybrid powertrain looms as the main news for 2008. The result of a GM-DaimlerChrysler-BMW collaboration, this “two-mode” system is said to use twin electric motors and a 300-volt battery pack to assist a 5.3 V8 with GM’s Active Fuel Management. It allows low-speed driving on either power source, and promises better overall fuel economy than conventional powertrains. Rival Dodge’s midsize Durango SUV is expected to offer a similar hybrid setup during the ‘07 or ‘08 model years.”

“Further out, General Motors says it may offer a 330-hp diesel V8 for its largest SUVs by model-year 2010. The company is cagey about details for now, but says this new diesel will be a 32-valve dual-overhead-cam design–and clean enough for sale in all 50 states. GM projects a Yukon so equipped would get around 28 mpg in city driving vs. 21 for a comparable gas-engine model.”

http://consumerguideauto.howstuffworks.com/2007-chevrolet-tahoe.htm

Buickman has been thoroughly refuted on other sites (www.cheersandgears.com) by industry insiders who do NOT work for GM. So when someone claims that he is not legitimate, maybe it is because they have read his posts, and the posts of those who have refuted him, and therefore are informed of the validity of his writings.

We also, incidentally, can tell the difference between the validity of an opinion by a disgruntled Buick salesman in Flint and the research of a major financial organization based in the nation’s financial capital, with access to sources not only within the auto industry, but also the major financial houses of New York.

Johson: For some, the only thing they consider “legitimate” is their own narrow-minded opinion.

No, it’s because we understand the difference between legitimate reporting based on research and the hyperventilating of a conspiracy theorist who blames everyone short of Britney Spears for GM’s present predicament, and offers his silly “Return to Greatness” plan as the cure for all that ails GM.

Incidentally, his plan consists of better marketing and allowing the dealers to charge more for their products to improve their margins (and, undoubtedly, pay their sales reps more).

Nothing about better quality, or more up-to-date drivetrains or consolidating divisions.

Heck, he still gets his panties in a twist over the decision to eliminate Oldsmobile, attributing that to part of the big, dark conspiracy to dismantle GM.

If Mr. Lutz had offered up the “Return to Greatness” as GM’s savior, you’d tear it to shreds.

Mr. Farago: As for the other prognostications, the situation is obviously fluid.

In other words, he didn’t know what he was talking about, and he made a bunch of wild, conspiracy-theory predictions that did not pan out, but we’ll cut him some slack.

Mr. Farago: But the general trend has been both predicted and chronicled: downwards trend in market share, ongoing cash burn, sales of assets, obfuscation, disinformation and, most importantly of all, a complete lack of accountability.

Please…I expect better of you.

I could say that the sun will continue to rise in the east and set in the west, it will rain some time this month in Pennsylvania, and some bonehead will cut me off on the way to work this week, and I’ll be just as much of a prognosticator as Buickman.

As for the other prognostications, the situation is obviously fluid. But the general trend has been both predicted and chronicled: downwards trend in market share, ongoing cash burn, sales of assets, obfuscation, disinformation and, most importantly of all, a complete lack of accountability.

The sky hasn’t fallen, yet. Then again, Martha Mitchell wasn’t ‘right’ until after Watergate broke. Someone’s crystal ball will turn out to be clear and someone else’s fuzzy. Buickman is no Nostradamus.

Martha was the wife of John Mitchell, Attourney General during the Nixon Adminstration. Martha was famous for her late night phone calls to the press, when she made all kinds of wild accusations about wrong-doing in the White House.

The press thought her delusional. She wasn’t. (“The Martha Mitchell effect” is now used by psychiatrists for misdiagnosed delusions).

Buickman is much the same: a man dismissed as a total crank who’s view of GM’s inner sanctum is hard to believe, but entirely credible. (And much further “out there” than mine.)

[This from Wikipaedia: Nixon was later to tell interviewer David Frost (in September of 1977 on Frost On America) “If it hadn't been for Martha Mitchell, there'd have been no Watergate.”]

My take on Jim: http://www.thetruthaboutcars.com/?p=497

A legitimate news source (reference) is different than the legitimacy of opinion or editorial. I can link all day to people’s opinions that corroborate my own (as could anyone), and some of them will be well-founded and well-articulated. But that does not mean they are ‘factual’. They are giving their opinion based on how they interpret the facts, and that’s okay.

TTAC is clear about what is an editorial, and pledges to be truthful and unbiased in reporting. That’s why we’re here. If RF wants to interpret the data his way, he has every right to comment and editorialize. And so do we.

Please do, I’d like to see it.

Nonetheless, the commentary is biased, the agenda is transparent, and the tone is markedly bitter.

I’d prefer a more legitimate source for my facts.

Fact is, he dealt with a lot of GM people for years, and his posts could have simply been brushed off, were it not for quite a bit of truth contained in them.

Whatever opinion people may hold of him is largely irrelevant, considering many of the things he says are true. And I doubt that a mere “Buick dealer” would know the things he does about GM.

The Buickman never worked for GM. He was/is a *salesperson* at a Buick dealership.
Accurate? Maybe. Credible? Meh. Unbiased? Not in the least.

There’s no “I’m right” in it, just the facts as someone else presented them. Just thought it would be a useful contribution to the discussions here

Buickman actually worked for GM before. Who’s to say in Bloomberg is any more accurate in this case than Buickman? We don’t know for sure, but many of the things Buickman says are backed up by factual data, and a lot of his postings are in line with RW.