Presidential Task Force on Automobiles Falls Into the Perception Gap

GM is so screwed. We are so screwed. On the occasion of Old GM’s judicial death sentence, Steve Rattner offered an instant analysis of what New GM needs to do to survive: eliminate the perception gap. “There’s often a lag between perception and reality,” the head of the Presidential Task Force on Automobiles (PTFOA) told jobbing journos. Automotive News [sub] puts it this way: “General Motors must convince consumers that the quality of its vehicles has improved to stop a decline in U.S. market share and survive after bankruptcy, a senior Obama administration official said. Steve Rattner, the head of the Treasury Department’s auto task force, said the quality of GM vehicles has improved, citing the Chevrolet Malibu as an example. But he added that consumers have to be made aware.”

1. Malibu schmalibu. In general, General Motors’ vehicles are still not as well-built as its class-leading competition. Check any long-term survey of quality, reliability, warranty claims, etc. Consumer Reports reports: “The reliability of many models still falls short.”

2. the “perception gap” is simply GM customers way of saying “we won’t get fooled again.” Do NOT accuse them of being stupid, however obliquely.

3. A comprehensive warranty is the single best way to eliminate this issue. So . . . where is it?

4. It’s not all about quality. Quality—a slippery term even amongst the carnoscenti—is a given in the auto industry these days. What’s needed here is branding. A relentless focus on a given brand’s unique selling point. For example, Audi’s haven’t been reliable since, uh . . . And yet they’re the up and coming luxury brand.

5. Rattner’s repetition of Detroit’s favorite meme is a bad, bad thing. He’s gone native.