GM Death Watch 88: Almost Doesn't Count

Robert Farago
by Robert Farago
gm death watch 88 almost doesn t count

Motor Trend just reviewed the new Saturn Aura. Reading between the lines, it’s clear that GM’s mission critical mainstream motor is another in a long, not-so-illustrious line of “almost” cars. It’s “no sports sedan” with lots of “corner cutting” powered by a “crude” engine with “some looseness in the drivetrain.” The Aura is a “step in the right direction”– that leaves the badge-engineered Opel at least two steps behind the competition. Anyway, does it even matter? I reckon GM’s car business is beyond repair.

For the first time, the California Motor Car Dealers Association published new car registration data listed by brand. In the second financial quarter, Toyota captured 24.4% of the Golden State’s automotive market. Honda scored second place, at 12.4%. Then it’s Ford at 9.6%; followed by Chevrolet, at 8.2%. If national sales follow California’s lead, GM is toast. There is no way The General can support its vast infrastructure, overhead and labor costs, there’s no way the company can downsize quickly enough, to survive on that kind of market slice.

The automaker’s California conundrum: the resale market. There isn’t one. Hundreds of thousands of California immigrants, first-timer buyers, commuters and elderly consumers swear by used Hondas and Toyotas. Their preference creates a vicious circle: buyers shun new GM products because they can’t unload them. In the mass market, big depreciation is a kind of living death.

Never mind the BS about GM’s products being torpedoed by left-leaning, import-loving— I mean, “foreign-owned automaker”-loving journalists. GM shot itself in both feet and both arms for decades, building rental fleet fodder instead of competitive product. Even if you accept the dubious notion that GM now makes automobiles that match Toyota's and Honda’s (on some levels), even if you swallow the argument that GM is suffering from an indefensible “perception gap,” there’s only way to reverse this death spiral: "must have" products.

Not decent cars. Not reasonably competitive cars. Not cars that only make sense because they’re so damn cheap and no other new car dealer (except Ford) will give me a loan. Not the new Saturn Aura. I’m talking about cars like the Saturn Sky— only with room for four adults and a trunk.

Saturn’s new motto– “Like Always. Like Never Before”– says it all. Here’s a company, indeed an entire corporation that needs to sever its ties to its mediocre, vainglorious past and build spectacular products. It just… can’t… do it. I know; Saturn’s motto supposedly reasserts their user-friendliness. But what does “Like Always” say to people who dismissed Saturn as a boring, out-of-date brand?

By the same token, what does “Like Never Before” say? It’s a po-faced claim that Saturn is better than it was, not better than the rest. It’s that inwards-facing commitment to relative improvement that defines the vast majority of GM’s products and condemns them to also-ran status. Not that GM knows it. The General’s complete obliviousness to the average non-customer’s opinion of their products is one of the most disturbing aspects of GM’s fall from grace. Well that and their failure to acknowledge their competitors’ achievements and beat their best-in-class benchmarks.

Detroit’s unjustifiable arrogance towards the imports in the 70’s is well known. But few people appreciate the fact that this holier-than-thou attitude is still in effect, informing everything the company does– and doesn’t do. I recently received an email from a GM insider containing a memo from Ed Wellburn, GM’s Vice President of Design. After proclaiming “GM’s turnaround plan is truly working as witnessed by our 2nd quarter results”, Wellburn issued a new edict:

“Design Center is host to journalists, ‘celebrities’ and senior management up to and including the Board of Directors. The confidence we have in our products and people should be evident to anyone who drives on the Technical Center site, especially in the vicinity of the Design buildings and adjacent roads.

“As such, I am directing that ONLY GM products be parked on the roads around Design and in the parking area in front of our building. Any employees or suppliers/vendors who are not driving GM products may use the west and north parking lots.

“Effective August 15, 2006, this policy will be in effect. After this date, any non-GM vehicles parked on the roadways or in designated parking areas in front of the Design building will be ticketed. In the case of multiple offenses, the vehicle will be towed at the owner’s expense.”

And there you have it: GM management’s desire to shelter in their own little universe, quarantined from the realities of the outside world. Think about it: Wellburn's directive sends both employees and visitors driving non-GM vehicles to the back lots. It also means that GM-driving designers who enter the building upon which their company’s fate depends only encounter GM products. In short, what you can’t see… can kill you.

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2 of 236 comments
  • Jonny Lieberman Jonny Lieberman on Aug 31, 2006

    Lumbergh: As a liberal arts major (Philosophy AND Religion) I would like to report that I took out student loans to pay for school, worked a bunch and had a bike. OK, well, when I was a Junior I finally got the Old Man's Pontiac Station Wagon with 190,000+ miles on it. And put another 80,000 miles on it before I donated it to charity after a failed engine rebuild. So, stop stereotyping.

  • CSJohnston CSJohnston on Sep 02, 2006

    Jonny, On behalf of BA holders everywhere, thanks for sticking up for us! I have seen plenty of Engineering Faculty where Bimmers, VW's and Audis are well represented (okay, ONE Engineering Faculty parking lot). On the bright side these guys and gals will have the basic knowledge to repair all of the complex electronics and components when they fail out of warranty! Regrettably, my History/Economics degree did not prep me for that... Come on up to Calgary Jonny, maybe we can find you a few cars to drive up here! CJ

  • Alan I think this vehicle is aimed more at the dedicated offroad traveller. It costs around the same a 300 Series, so its quite an investment. It would be a waste to own as a daily driver, unless you want to be seen in a 'wank' vehicle like many Wrangler and Can Hardly Davidson types.The diesel would be the choice for off roading as its quite torquey down low and would return far superior mileage than a petrol vehicle.I would think this is more reliable than the Land Rovers, BMW make good engines.
  • Lorenzo I'll go with Stellantis. Last into the folly, first to bail out. Their European business won't fly with the German market being squeezed on electricity. Anybody can see the loss of Russian natural gas and closing their nuclear plants means high cost electricity. They're now buying electrons from French nuclear plants, as are the British after shutting down their coal industry. As for the American market, the American grid isn't in great shape either, but the US has shale oil and natural gas. Stellantis has profits from ICE Ram trucks and Jeeps, and they won't give that up.
  • Inside Looking Out Chinese will take over EV market and Tesla will become the richest and largest car company in the world. Forget about Japanese.
  • Joe These guys are asking way to much.. 40% raise, Medical for retired workers, 4 day work week. - Go work a regular job like as an accountant, or Insurance agent and see what you get when you retire! Why do I have to put money in a 401K and these guys get a pension and medical for life. Cars are already to expensive! However at the same time GM is bragging that they are going to be making billions on subscription services in the coming years. If we could all stop being so greedy the world would be a better place
  • Tele Vision Let's not forget the massive used ICE car market that will exist - even after mandated EVs for all.