DBeaSSt

GM Admits it screwed up

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http://www.reuters.com/article/domesticNew...=22&sp=true

GM says it "disappointed" and "betrayed" consumers

Mon Dec 8, 2008 8:40am EST

DETROIT (Reuters) - General Motors Corp on Monday unveiled an unusually frank advertisement acknowledging it had "disappointed" and sometimes even "betrayed" American consumers as it lobbies to clinch the federal aid it needs to stay afloat into next month.

The print advertisement marked a sharp break from GM's public stance of just several weeks ago when it sought to justify its bid for a U.S. government on the grounds that the credit crisis had undermined its business in ways executives could never have foreseen.

It also came as Chief Executive Rick Wagoner, who has led the automaker since 2000, faces new pressure to step aside as GM seeks up to $18 billion in federal funding.

"While we're still the U.S. sales leader, we acknowledge we have disappointed you," the ad said. "At times we violated your trust by letting our quality fall below industry standards and our designs became lackluster."

The unsigned open letter, entitled "GM's Commitment to the American People" ran in the trade journal Automotive News, which is widely read by industry executives, lobbyists and other insiders.

In the ad, GM admits to other strategic missteps analysts and critics have said hastened its recent decline.

"We have proliferated our brands and dealer network to the point where we lost adequate focus on the core U.S. market," the ad said. "We also biased our product mix toward pick-up trucks and SUVs."

But GM also says in the ad that it was hit by forces beyond its control as it tried to complete a restructuring earlier this year.

"Despite moving quickly to reduce our planned spending by over $20 billion, GM finds itself precariously and frighteningly close to running out of cash," the ad says.

A failure of GM would deepen the current recession and put "millions of job at risk," according to the ad, which also highlights the automaker's pledged restructuring and intention to begin repaying taxpayers in 2011.

GM spokesman Greg Martin said the ad was an attempt by the automaker to present "a pledge directly to the public."

"We believe we need to deliver this commitment unfiltered since quite a bit of media commentary has not kept pace with our actual progress to transform the company," Martin said.

Senate Banking Committee Chairman Christopher Dodd, a Democrat from Connecticut who is central to the effort to craft an auto bailout bill, on Sunday said GM should replace Wagoner.

GM says Wagoner has the support of the company's board.

(Reporting by Kevin Krolicki, editing by Dave Zimmerman)

Has anyone seen this ad?

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Just like a baby crying in order to get his/her lollipop back... I'm moved... :rolleyes:

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Toyota probably would have done the same! lol!

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Why doesn't GM just create a warranty better than Hyundai? That helped them. Then the Koreans can quit bragging about 'best warranty'.

Well, with the way people drive their cars today...I'm thinking that might not be the best idea...

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Wonderful news, I guess.. :rolleyes:

That just give more people reasons to call GM cars crappy (even the new ones..)

Oh well......

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Sounds like this might have been line item "A" of the stipulation list to get the loan??

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I just hope they mean it and it isn't just fluff. If they make it through this they need to kick it into high gear. Not only do their products need to be great through the entire lineup, but the whole company needs restructuring. Flexible production facilities, consolidated model lineup, removed legacy costs where possible, more accountability at the top level, new business mission and goals, a change in management style, empower the employees more, and give the engineers and designers more room to work.

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I agree with siegan, and hopefully they mean it. This could just be another song and dance routine by the GM PR department. To me, GM's press releases have lost credibility, let's see the actions to back up their words. They have to prove they have changed, not just issue a letter or statement.

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Wonderful news, I guess.. :rolleyes:

That just give more people reasons to call GM cars crappy (even the new ones..)

Oh well......

there isn't some kind of anti vendetta thing going on when it comes to GM. it's simply admitting responsibility and claiming the flag to move forward. people out in the country who have dealt with gM know they generally make reliable vehicles, otherwise they'd be in a much worse position. GM has a good loyalty rate, if not for the fact that the cars run well this would not happen.

by admitting quality has had hiccups [read the line it says this in other words] and that design has been a big drawback, then they are taking responsiblity, and by doing this could incur good will. plus if they're willing to acknowledge a problem, that means hopefully showing they understand the depth of thier situation and how to get out of it.

i do believe it's fair for people to judge GM to not be the best automaker out there. i also beleive it's fair for GM to admit they should have always been the best, and have not been.

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"While we're still the U.S. sales leader, we acknowledge we have disappointed you,"quote

Almost speechless at reading that. No wonder GM is in trouble.

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More than anyone it is the GM's lawyers who should be fired. From holding out performance models, to finding anything which can be legacy issue to this brilliant idea :rolleyes: things just get better from GM.

What were these guys thinking?

I never asked this to you ZL-1, but what do you think of this entire bailout fiasco? If you feel you would like to not to display your viewpoint PM me. I am curious to hear POV of a non American consultant.

Edited by smallchevy
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Notice that this is the 2nd or 3rd time GM has had to apologize for manager problems and lackluster products that are pre-Wagoner?

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Lets hope this sets a precedent. Maybe Nissan will make an apology for assaulting our eyes with the new Cube.

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Frankly there is some truth in that. I do find it sad and will keep standing by GM, we need to make buying American cool again.

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I never asked this to you ZL-1, but what do you think of this entire bailout fiasco? If you feel you would like to not to display your viewpoint PM me. I am curious to hear POV of a non American consultant.

Former consultant, now working for a mining company. :AH-HA_wink:

And I have no problem saying what I think on a public forum.

I am against it in principle (I don't like the idea of poorly managed companies getting taxpayer's hard earned money) and I'd be a really pissed off American taxpayer right now, but I understand that it is happening because of the sheer political weight these 3 companies have and because many suppliers will implode with a collapse of the Detroit 3. So let's hope they make good use of that money.

Edited by ZL-1
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This is not a bad move.

Before you get any credibility you have to acknowledge your problems and past failures.

Then you are given a chance to prove you have corrected your problems and errors.

Kind of the show me status and prove ypur worth to consumer.

If you move ahead as if nothing happened people will still question that you have learned nothing.

GM needs to prove they are going to do buisness in a new way and fix the slow moving conservitive ways they have been acting.

They now need to direct and confront their errored ways and make sure people take note. Let them see how your building cars and don't just meet their expectations but exceed them.

GM has a lot to learn from Hyundia and turning around a company. Great prices on very good cars is the key. Value at a lower price is what scares Toyota and Honda.

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Now when are GM fans going to quit blaming Toytoa for GM's (now admitted) mistakes?

Edited by Satty
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Notice that this is the 2nd or 3rd time GM has had to apologize for manager problems and lackluster products that are pre-Wagoner?

Yes, it's kind of Sad. Wagoner's been in for 8 years, so I think it also covers the G5, G6, Lacrosse(styling), Lurcerne(styling), DTS, Colorado, Canyon, Vibe, Torrent, Ion, etc... There have been plenty of great vehicles with Awful styling over the last eight years.

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Yes, it's kind of Sad. Wagoner's been in for 8 years, so I think it also covers the G5, G6, Lacrosse(styling), Lurcerne(styling), DTS, Colorado, Canyon, Vibe, Torrent, Ion, etc... There have been plenty of great vehicles with Awful styling over the last eight years.

it's sad and amazing and at once laughable that thier problems could be summed up so equivocally and concisely, but there it is. fundamentally none of these were bad vehicles, but they had terrible styling, inside and out, poor attention to the function of styling inside and out through the use of good quality materials on the interior and forward thinking designs on the outside.

great vehicles with awful styling.

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Who's blaming Toyota? They make a quality product and simply took advantage of opportunities along the way. The blame falls squarely on the shoulders of the UAW. The mistakes GM made were centered on not having the balls to be willing to let the company go down 20 years ago when there WAS a GM to fight for. They should have killed the UAW years ago or gone down fighting. Instead they took the approach of sleeping with the enemy while the house burned down. Now it's a former shadow of itself with a mere fraction of its market share being crushed by debt and obligations so enormous there's really no legitimate chance of survival. And now the ultimate humiliation to be begging to taxpayers for cash to survive a few months more. Oh what a wonderful thing the union has wrought.

Now when are GM fans going to quit blaming Toytoa for GM's (now admitted) mistakes?
Edited by ellives
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Have you never read C&G? Everyone here blames Toyota.

this despite the fact that everytime GM issues one of these apologies, a consensus seems to build that this is right thing to do and GM's marketing is addressing failures. then within a month everything goes back, "GM has never done a bad thing ever. it's the media. it's all one big black hole conspiracy. everyone's out to get GM. they are this decade's AREA 51. i mean could anyone fathom having more important things to do than bring down GM. impossible [spanish accent]!~!!"

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