GM Ad Czar Bob Lutz Misses the Point. Again. Still.

Robert Farago
by Robert Farago

OK, so GM launches a money-back guarantee for its cars and trucks. A kind of riff on the old “Try it! You’ll like it!” campaign. Except of course, those of us who actually remember the old Alka Seltzer ad (before Kathy Griffin murderized it) will recall that the exhortation to experimentation was ironic. The line—repeated by tens of millions of people ad nauseam—came from the waiter. The waiter, the bad guy of the piece, led the protagonist to try food which later made him want to hug the porcelain god. And that’s the key difference. The Alka ad was selling relief from remorse. The GM ad is selling the customer on the idea that they won’t need relief from buyer’s remorse. The GM ad highlights the possibility of buyer’s remorse, on the second biggest purchase of their customers’ financial lives (after their house). Which makes the nationalized automaker’s buyback campaign as dumb as rocks on toast. The man behind the plan, Maximum Bob Lutz, is completely oblivious to this analysis. In fact . . .

General Motors Co. could extend its offer of a 60-day, money-back guarantee for consumers when the marketing program expires at the end of November, GM Vice Chairman Bob Lutz said today.

“It’s possibly renewable. We’ll see what kind of experience we have,” Lutz said in an interview on CNBC.

Lutz said that GM expects “way under 1 percent,” of consumers who buy new Cadillacs, Chevrolets, GMC or Buick vehicles will return them in the guarantee program.

Now I’m not sure if it’s Lutz or Automotive News [sub] who’ve made a great landing at the wrong airport: judging the program’s success (or lack thereof) based on the lack of returns, rather than increased sales. But point not taken.

Oh wait, Maximum Bob is focused on the bottom line. My bad.

Lutz said GM was pleased with the initial results of the guarantee program.

He said research by GM and outside analysts showed it had increased the pool of consumers who say they would consider buying a GM vehicle even though it had not boosted sales yet.

Limbo, limbo, limbo! How low can you set that bar, Bobby baby? Would you believe . . . lower?

“We never did want to look at this program as immediately driving sales,” Lutz said.

See? Now that’s fucked-up. You create a program using a wrong metric, use the wrong metric to judge it, then suggest that it did well by the correct metric, and then suggest that the right metric is the wrong metric. Automotive News end the piece in a desperate search for perspective, but when you’ve already fallen down the rabbit hole, even ritual appeasement comes hard. So to speak.

GM expects 2009 to end at around 10 million to 10.5 million in total sales with 2010 sales recovering to near 13 million.

In 2008, U.S. total sales were 13.2 million. This year will mark the fourth consecutive one of falling U.S. sales.

Lutz said GM dealers are low on inventory of better-selling vehicles but have “plenty of inventory” of full-sized sports utility vehicles and pickup trucks.

Robert Farago
Robert Farago

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  • Martin Albright Martin Albright on Sep 29, 2009

    Maybe slightly off topic but has anyone considered just how cluelessly insulting the whole "may the best car win" ad campaign really is? They start off with a "survey" where they ask people what they think is the most economical car, the most reliable car, etc. The obvious intent here is to gather the results (in which GM products will undoubtedly not rank in the top) and then do their "reveal" where they show that: Ta-Daaah! GM products are, in fact, the most economical, most reliable, most whatever (based, of course, on highly questionable "statistics.") The obvious intent of the campaign is to validate the notion of the "perception gap" (we really do build great cars but nobody knows it!) Like the "try it, you'll like it!" theme, this one, too, is based on an old TV commercial: The "hidden camera" commercial where the customer in the fancy-schmancy restaurant orders coffee, only to be told by the waiter that he is not drinking brewed coffee, but is in fact drinking "Folgers Instant Coffee Crystals" or some such instant brand. The customer smiles and then remarks at how completely he was fooled. The obvious difference here is that it's not some nameless schmuck in a restaurant who's being "punk'd", it's YOU, the consumer, the person they hope to goad into buying one of their vehicles. IOW, it's basically saying "You're stupid. Now buy one of our cars." I'm not a marketing professional but somehow I don't think insulting your customers is a winning strategy.

  • Martin Albright Martin Albright on Sep 29, 2009

    What happened to the edit function?

  • Funky D The problem is not exclusively the cost of the vehicle. The problem is that there are too few use cases for BEVs that couldn't be done by a plug-in hybrid, with the latter having the ability to do long-range trips without requiring lengthy recharging and being better able to function in really cold climates.In our particular case, a plug-in hybrid would run in all electric mode for the vast majority of the miles we would drive on a regular basis. It would also charge faster and the battery replacement should be less expensive than its BEV counterpart.So the answer for me is a polite, but firm NO.
  • 3SpeedAutomatic 2012 Ford Escape V6 FWD at 147k miles:Just went thru a heavy maintenance cycle: full brake job with rotors and drums, replace top & bottom radiator hoses, radiator flush, transmission flush, replace valve cover gaskets (still leaks oil, but not as bad as before), & fan belt. Also, #4 fuel injector locked up. About $4.5k spread over 19 months. Sole means of transportation, so don't mind spending the money for reliability. Was going to replace prior to the above maintenance cycle, but COVID screwed up the market ( $4k markup over sticker including $400 for nitrogen in the tires), so bit the bullet. Now serious about replacing, but waiting for used and/or new car prices to fall a bit more. Have my eye on a particular SUV. Last I checked, had a $2.5k discount with great interest rate (better than my CU) for financing. Will keep on driving Escape as long as A/C works. 🚗🚗🚗
  • Rna65689660 For such a flat surface, why not get smoke tint, Rtint or Rvynil. Starts at $8. I used to use a company called Lamin-x, but I think they are gone. Has held up great.
  • Cprescott A cheaper golf cart will not make me more inclined to screw up my life. I can go 500 plus miles on a tank of gas with my 2016 ICE car that is paid off. I get two weeks out of a tank that takes from start to finish less than 10 minutes to refill. At no point with golf cart technology as we know it can they match what my ICE vehicle can do. Hell no. Absolutely never.
  • Cprescott People do silly things to their cars.
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