GM's turnaround plan - General Forum

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GM's turnaround plan
Tuesday, June 07, 2005 10:12 AM
Rick Wagoner, chief executive of General Motors, is expected to outline a broad plan to reconstruct GM at the company's annual shareholder meeting in Wilmington, Del.
Expected to be included in the plan are four priorities that Wagoner listed in a previously undisclosed note on May 25 to GM managers.

-Step 1 of Wagoner's plan was to "deliver great cars and trucks."
-Step 2 was to "revitalize our sales and marketing strategy."
-Step 3 to "intensify our focus on cost and quality"
-Step 4, to "address the health care burden."

Wagoner also reiterated that GM would boost capital spending this year to $8 billion, from $7 billion last year, most of it for product development. And, he said, resources were being redirected to "the largest, fastest-growing and most profitable" parts of the market big pickups, SUVs, luxury vehicles and crossover vehicles.

Previously, it has been widely reported that as part of GM's restructuring Cadillac and Chevrolet will be the only GM brands to offer a complete lineup of cars and trucks, with GM's other U.S. brands Pontiac, GMC, Buick, Saturn, Hummer and Saab focusing on market niches.



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Re: GM's turnaround plan
Tuesday, June 07, 2005 11:23 AM
Except for #4, those are pretty vague plans.
Delivering "great" vehicles is easy to say, but how exactly does GM plan to do this?

This is not even a real plan. This is some idiot convincing other idiots that he knows what he's doing.



Re: GM's turnaround plan
Tuesday, June 07, 2005 11:48 AM
Quote:


And, he said, resources were being redirected to "the largest, fastest-growing and most profitable" parts of the market big pickups, SUVs, luxury vehicles and crossover vehicles.


Runs out, gets gun, shoots self in head....

STOP MAKING SO MANY SUV'S AND TRUCKS DAMNIT!!!!!





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Re: GM's turnaround plan
Tuesday, June 07, 2005 3:53 PM
ss trailblazer i think is gonna sell


Moms & Dads talk to your kids,before its too late,tell them to say no to aluminum wings.
Re: GM's turnaround plan
Tuesday, June 07, 2005 3:54 PM
sorry forgot to say i think how dodge came out w/ the charger gm should come out w/ the chevelle


Moms & Dads talk to your kids,before its too late,tell them to say no to aluminum wings.
Re: GM's turnaround plan
Tuesday, June 07, 2005 4:00 PM
yea cut off thier workers , great plan



1989 Turbo Trans Am #82, 2007 Cobalt SS G85





Re: GM's turnaround plan
Tuesday, June 07, 2005 4:08 PM
take many econ classes?....douche





Re: GM's turnaround plan
Tuesday, June 07, 2005 4:18 PM
Quote:

sorry forgot to say i think how dodge came out w/ the charger gm should come out w/ the chevelle


aaaaaaaaaaaaaaaaahhhhhhhhhhhhhhhhhhhh NO



maybe not today, maybe not tomorrow....... but some day
Re: GM's turnaround plan
Tuesday, June 07, 2005 4:21 PM
Quote:

sorry forgot to say i think how dodge came out w/ the charger gm should come out w/ the chevelle


aaaaaaaaaaaahhhhhhhhhhhhhhhhhh NO



maybe not today, maybe not tomorrow....... but some day
Re: GM's turnaround plan
Tuesday, June 07, 2005 10:22 PM
What are they going to do with the Einsteins who decided to *effectively* replace the Cavalier with the Aveo as their entry level car?

And the idiots who decided to clutter the Chevrolet lineup with the Korean Optra and Epica are whatever they are called?
Re: GM's turnaround plan
Wednesday, June 08, 2005 10:20 AM
Joe Kidd wrote:

What are they going to do with the Einsteins who decided to *effectively* replace the Cavalier with the Aveo as their entry level car?

And the idiots who decided to clutter the Chevrolet lineup with the Korean Optra and Epica are whatever they are called?


How is this such a bad idea? Cavaliers have nearly 10k is price adjustment, going from base model to loaded out LS Sport. Some people buy BASE cavaliers for their gas mileage, and cheap price, and that's all they care about. Think Aveo here.

Some people like a good reliable small car, decent features, and a little pep. Think Cobalt LS/LT here.

And then there's the tuner market, they bought their cavalier with full intentions of making it turn harder, stop faster, and drive faster. Do I really have to tell you Cobalt SS is the choice here?

And for the people complaining about GM concentrating on their trucks/SUV's...it makes sense. Invoice on an optioned out cobalt I'm gonna guess to be 16ish. They sell it for 19,500. 3500 profit

They have a nice Silverado LT, invoice is around 25k, they sell it for 30-31k. 5-6k profit. Oh, and don't forget silverado/sierra combined is best selling vehicles on the road RIGHT NOW. Despite gas prices, trucks are still sellin more then ANY car on the road.

Some say well yes because of fleet. Regardless of reason...TRUCKS ARE SELLING! I know they give bulk purchase pricing to those fleet guys, but come on, they don't give them away, they're still making money.

They make good cars, a lot of the new platforms are solid cars. Cobalt is worlds better then the cav, although not market dominant. The Chevy Malibu is an AWESOME car. Honestly, if they made one stickshift, I'd own one over my vert any day. Malibu took top ratings in many auto magazines, and it shows by being in the top 10 sales list.

GM is making progress, but you can't turn a company around overnight.




Re: GM's turnaround plan
Thursday, June 09, 2005 8:10 PM
Here is a letter in todays' USA TODAY paper editiorials Gm crisis in quality I am amazed by the ignorance of the US car manufactures regarding their decreased sales plight.(Troubled GM plans major tuneup,Money monday).They just don't get it.The fundamental problem for general motors -and all US carmakers- is the perception that its vehicles are inferior to japanese cars in terms of reliability and quality,which in most cases is true.To GM: It really doesn't matter how much price incentive you give us,the average consumer won't buy products that won't last,and yours don't.IF you want to increase your market share,build quality that are worth our dollars.We'll return in flocks.Until then,quit fooling yourselves(and your shareholders) that your problems lies in being more competitive and cutting workers benefits.You've lost market share because consumers are not buying your product,period.Give us a reason. I could not agree more with this letter, come ON gm get for real cut the crap with 2nd an 3rd rate minvans,make one and with all the goods,lose isuzu ascender copycat ,rainier what a waste of time.That's just a short list but gm does need to incorporate the same qualtiy it would in a corvette as a small inexpensive compact car regardless to make a difference we the consumer can afford and it will FREAKING LAST PROBLEM FREE.




Re: GM's turnaround plan
Friday, June 10, 2005 3:39 AM
Cobalt SS is not a solution for the tuner market, not for the price and performance compared to other cars in its range. I think the SCION and SRT4 win out in a big way, Cobalt is just too pricey for what you are getting IMO. What ever happened to the 6 speed supposed to be in the SS? Where is the 2.4 liter ecotec?? Where is the GM supercharger for ecotec and what about different stages like Mopar? GM is doing jack S@#% for the tuner market, I honestly don't think they give a damn.
Am I the only one frustrated about no GM S/C for the eco?



Re: GM's turnaround plan
Friday, June 10, 2005 5:38 AM
BlackEco wrote:

Cobalt SS is not a solution for the tuner market, not for the price and performance compared to other cars in its range. I think the SCION and SRT4 win out in a big way, Cobalt is just too pricey for what you are getting IMO. What ever happened to the 6 speed supposed to be in the SS? Where is the 2.4 liter ecotec?? Where is the GM supercharger for ecotec and what about different stages like Mopar? GM is doing jack S@#% for the tuner market, I honestly don't think they give a damn.
Am I the only one frustrated about no GM S/C for the eco?


The Cobalt SS is a VERY even matchup for the SRT, speed isn't the only thing, but that's another debate. There's a couple SRT owners that bought SS's, and like the SS better. Hmm....to me, that just says its a good competitor, not market dominating, but it is competitive.

As for the Scion, the Scion IS cheaper, but the Scion doesn't compare in performance since it's still n/a. When they release the S/C version of the Scion we'll readdress this issue.

The 2.4L ecotec? still in design, It comes out later this year, and it seems as if there will be some different version of the SS coming out with the 2.4L in it. Think 2006 models.

The six speed in the SS....I don't ever recall hearing this rumor...however, I wouldn't consider it unlikely it might be mated to the 2.4L. But since early talks said the 2.4L would be auto only, which has since changed, leads me to believe we'll be lucky just to get a 5 speed. I've heard rumor from places outside of GM that the 6 speed comes next year. Hard telling, but you really don't need 6 gears to go fast

Mopar Stage 1,2,3...dude, the SRT is on its 3RD!! year, and the stage 3 kit just came out did it not? Either way, it took mopar a little while to release these. SS's are still REALLY hard to get ahold of.

All in all, PATIENCE, good things come to those who wait (note:I have no argument for the GM S/C, lol However your wait won't be much longer since the part numbers are out)



Re: GM's turnaround plan
Friday, June 10, 2005 11:48 AM
Quote:

The Cobalt SS is a VERY even matchup for the SRT, speed isn't the only thing, but that's another debate.

Then you say
Quote:

As for the Scion, the Scion IS cheaper, but the Scion doesn't compare in performance since it's still n/a.


Like you said, performance is not everything. People go and buy Scions because of their build quality, resale and potential.
On that note, what does SS have it beat over the tC or SRT? Because SS is not better over tC when it comes to materials used and build quality and SS is does not win the SRT in overall performance (straitline nor handling)
So what does the SS offers now? They should have the base MSRP at 18,995 not $21,995. Then it the SS would have value.

You know something Mopar did it right, instead of investing resources on drag races in which a 1-3% will take notice. Mopar invested it on the SRT itself in which in return you get "out of the box performance." GM on the other hand, relys on on the consumer to buy expensive products on top of a above average purchase car price to make it fast. While Mopar already has the car going fast out of the dealer.
GM, while very nice for giving the options to make the Cobalt fast. But when you start adding up the parts, then you start to put your econobox in sport car territory in total price and once again you will find better for the money and best of all, for the money you will find RWD and AWD cars.





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Re: GM's turnaround plan
Friday, June 10, 2005 12:01 PM
Back on topic
Did you guys hear on the 25K more jobs that will be lost in the coming years?



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Re: GM's turnaround plan
Friday, June 10, 2005 12:35 PM
DropTopPaul wrote:

SS's are still REALLY hard to get ahold of


DTP, there are 3 at the dealer right by my house hehe. Sadly, all with the price tag of 23K











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Re: GM's turnaround plan
Friday, June 10, 2005 4:19 PM
you live in COLUMBUS...slightly bigger then mansfield, however, there is one for sale in mansfield...arrival blue as well



Re: GM's turnaround plan
Friday, June 10, 2005 7:35 PM
The Cobalt will fail because it doesn't offer the lastest and greatest. It is something we should have had a long time ago.

Suspension from the 80's
High price
Looks a little weird
Limited slip not standard
Not easily modifiable, stuck with weak supercharger.

The SRT on the other hand has more horsepower for the same price and modding it would be as easy as changing the turbo.


Only considering the actually buyers in this price range that are looking for something sporty think about it.

There are two at the local car dealer. No limited slip. 23K. No incentives. Drove and not impressed with the accerlation. I would rather get a used Camaro or wait for Solstice for that price!!!


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Re: GM's turnaround plan
Friday, June 10, 2005 8:28 PM
All I have to say for a loaded SS while the big wupitee 205hp or what ever,for 23k give me a break.Me and my wife bought a new 04 accord last yr a loaded ex with the 4cyl for eco reasons but has alloys roof etc,out the door price tax and all 20,855.00!!!!! TEN times better car and far more reliable,better resale,only has 140hp ,but u can still buy a lded ex coupe with a v6 for 23k or so,ummmm.Goes to show u gm needs to re think its pricing to be a little more inline with REALITY.



Re: GM's turnaround plan
Sunday, June 12, 2005 10:05 AM
there having this meeting right up the street from my house.....wonder if ill be able to listen in




Re: GM's turnaround plan
Sunday, June 12, 2005 11:38 AM
personally, i've test driven both the SRT-4 and the Cobalt SS, and i'll be honest with you

i was very impressed with the SS. outer styling is sharp, interior is amazing, sound system was great, and i don't know what you guys want out of a car, but i thought that 205 horsepower at the wheel is pretty damn good.

now when i test drove the SRT-4, i was not impressed. the seats were uncomfortable, the interior wasn't as nice as the SS, and to be honest, i was not that impressed with the performance. i now think of the SRT-4 as just a neon with a little bit bigger spoiler and a few extra horsepower. sorry to all the people that like the SRT-4, but i'll take a Cobalt SS any day.

now i agree with what DTP said. you can't turn around a car company in a day. GM i think realizes their problems, and is trying to address them as best they can in the time given to them.

this is a billion dollar company, not some locally owned dealer. one guy can't just snap his fingers and change prices. you guys should take that into consideration before saying crap about GM. i know they have problems. i know their prices aren't what most people want, but they're trying.


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Re: GM's turnaround plan
Monday, June 13, 2005 12:24 AM
One way to look at it is:


Think of a big company as you would the economy. The economy is a freightliner. It can't turn around on a dime, actually the economy takes as long as 4-5 years to turn around. That's why when a president gets blamed for the crappy economy, its usually false blame because it was the president before made the changes that we're reaping from today. That's just the nature of business.

That said, I think GM is taking a step in the right direction. Bringing back the chevelle would be a good idea, if it lives up to the name ( the GTO was a good idea, and a great performing car, but limited production means limited sales ). Chrysler stepped ahead of GM on this when they brought the hemi's back. Actually, they did it quite a few years back when the came out with a new 300m, which sold well against Lincoln's and Cadillac's. It was a wise decision and GM should've noticed that, and started looking into bringing back something retro. But everyone who was into cars knew and remembered the Hemi nametag, before the silly commercials. Most muscle cars of the day feared the utterance of the word. The people who lived those days at our age are now the target market for vehicles. That was the best decision a domestic car company has made in the past decade. I just wish they had kept the 318 .

The 'econo-tuner' is still a risky area, because the target market isn't looking for that in a car. They want something off the line with raw naturally aspirated horsepower. Most car companies see the tuner market as kids ( not saying we or you are all kids, but the tuner market is a younger crowd in general ) who want them to make a car, that they couldn't afford. Chrysler and GM are slowly dipping their feet into the pool, Crysler is just doing it a little faster with more risk. The SRT-4 was and still is a big risk by Chrysler. The numbers they were hoping for in sales are not there. I personally hope they give it more time, but it will not surprise me if they do not.

Even if the Cobalt doesn't end up being what GM hopes it can be and what we all want it to be, the next gen of the car or replacement of it may be a little closer to the times.


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knowah
1996 Pontiac Sunfire 2.4L GT
Re: GM's turnaround plan
Monday, June 13, 2005 8:17 PM
While I see ur point clearly gm has too many products that are spread across various brand names overall.They are trying to take steps in the right direction and yes it does take time.But what I can not understand is having duplicate versions like the vans,suvs that's just stupid to have like 4 minivans what a waste and the avalanche ugly and useless.They should loose the lines that do not sell enuff to justify the overall cost.With isuzu dragging in sales why keep it alive umm,let's just copy a gm model with the isuzu name and minor cosmetics changes what a waste yet again.Chevelle retro would b sweet or camaro but ,there again the market for camaro was sucking wind and that's why they dropped it,that's why they are so apprehensive about reviving a rwd v8 muscle car.



Re: GM's turnaround plan
Tuesday, June 14, 2005 4:59 AM
I definetly understand what you mean. That's one thing I've never understood about car companies. I mean, look at the sunfire/cavalier, pickup trucks, camara/firebird, toyota/lexus, besides styling option, they're practically the same care. It seems like a waste of money, though they may have their reasons. Chrysler was guilty of it, but they released a slew of cars ( totally different ) that could've all been one or the other plymouth, chrysler or dodge, but they released cars under all 3.

It seems the different company sections are for quality and pizazz, which is a good business choice. The general public wouldn't take on a Cadillac XLR as well ( in how 'nice' the car is, luxurious ) if it were called the Pontiac Sunfire 4th gen ( not comparing prices, more or less the pontiac and cadillac nametags ). I don't know why it is, but its marketing at its best.

The plymouth PT Cruiser ( they do exist ) was consider a neat concept but cheaply built and horrible interrior. Then Plymouth went out of business or whatever. The Chrysler PT Cruiser is the exact same car built at the exact same factory with wood trim and Chrysler on it, and it's considered a much more luxurious vehicle. Its as much the general public's fault as it is GM's. We expect it as so, so they make it that way.




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knowah
1996 Pontiac Sunfire 2.4L GT
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