FUTURE_OF_GM

I agree... I don't think it's so much about selling cars in urban areas as it is about conquering the negative image in the eyes of the urbanites that set the trends. (My education supports this in a big way, it is blatantly obvious to me. maybe not so much to GM)

Burn m*********er, burn...

Nope... Actualy, I'd like to see some of the small players eliminated (Which is what I think the end result would be) But the fact that this is being openly discussed illustrates one reason why Detroit is losing the war. Our companies can't even band together on a marketing venture. Yet, the Japanese companies are smart enough to see the writing on the wall and are already 'discussing' a solution. FWIW, I don't really see a full consolidation happening. But I think the weaker companies will start to fail (namely Suzuki, Isuzu and Mitsubishi) Actually, there aren't 10 companies; most I can come up with is 7 and 3 of those have significant foreign ownership and (albeit, that might change very soon) Best I can figure is that the article is counting some 'captive' units as "manufacturers"

http://www.bloomberg.com/apps/news?pid=206...&refer=asia This shows the level on which the Japanese makers work together (and attack our domestics together) as opposed to being in constant irrelevant competition. (like the big 3) I wonder how this would pan out...

This is where GM's numerous brands could become a HUGE asset. Think of how well Saturn could do with a competitive line of small cars (like I outlined in my plan) Think of how well Saab would connect with some of these people. The answers are so obvious, yet GM is so clueless.

Win the cities or lose the war Why GM must take back market share in America's urban centers Dateline: Europe Ceding Urban Areas The domestic automakers - GM in particular - have ceded urban areas focusing their efforts on the suburban and rural marketplace. America's large cities such as Boston, New York, Chicago, San Francisco and Los Angeles are largely responsible for establishing and setting societal trends, what's "hip and cool" in the culture. A demonstrated inability to generate product for and market that product to America's major cities portends significant problems for GM, especially in the medium and long term. An inability to reach these areas prevents GM from reaching the trend setters and policy makers of today and tomorrow. Because of its inability or refusal to market to these communities, GM has assured itself of eventual cultural irrelevance. Remember in the Congressional testimony when Congress-critters were running around saying that Detroit needed to reform itself and build cars that people actually wanted? That was indicative of THIS problem. When Warren Brown researched new car registrations in the District of Columbia, a whopping 23% were domestics. German automakers routinely sell as many cars as the Big Three do in DC. The domestics just aren't relevant in DC and that's where the policy is made. Part of that irrelevancy is a lack of product that is attractive to urbanites (class leading smaller cars) and the other part is a total lack of marketing in these areas. Both of these combine to create the yawning gap between perception and reality about the domestic auto industry. Just to give you an idea of how terribly GM's marketing has been focused: GM recently ran ads in Vanity Fair (the one with Tina Fey on the cover). Between ads of Mercedes, Jaguar, Bentley, Louis Vitton, Chanel, Barney's, Vera Wang and Jimmi Choo was an ad for a Chevy(?!) talking about a deal with a coupon giving you $15 off at a shoe warehouse (???!!!) for test driving a Traverse. Epic Fail. There are maybe two or three brands GM has which fit the profile of a Vanity Fair reader and Chevrolet isn't one of them. Reaching Urban Areas When was the last time you saw a Proctor and Gamble ad and when was the last time you saw a Crest toothpaste ad? Yet, GM insists on cutting ads advertising itself as the brand completely ignoring it's greatest asset - It's actual brands. Reaching urban areas will require GM to refocus its branding emphasis from GM back to its brands and target those brands at specific niches of American society. (This doesn't change the fact I think GM is still over branded and until someone can explain the difference between Pontiac, Saturn, Buick, GMC with regard to the audiences they are supposed to reach I'll continue to think that). 1)Targeted Advertising: The shotgun approach to marketing in urban areas will ensure lots of money is spent and that whatever GM does, its effort will be lost in the surrounding media clutter. Breaking through the media clutter and creating an effective ad campaign which reaches urban consumers will require GM to abandon to abandon its normal marketing approach. Major cities are made up off blocks of consumers which normally break down along specific demographic lines. Advertising targeted towards the GLBT community (which there is none of) would probably not be effective when targeted towards the black community (again where there is little to no specific advertising). The solution is demographic specific advertising. Micro targeting ad campaigns towards specific communities allows for GM to launch national ad campaigns (giving them some efficiency of scale) but allows them to access urban communities where a "message for everyone" would be lost in the clutter. Specific appeals between from a company to a specific group of consumers also helps to create a relationship between a demographic and company, building brand loyalty. Such intangibles, such as brand "likability" are important towards expanding the number of people who are willing to consider purchasing a car from brand "X." For instance - the GLBT community in this country has more disposable income than any other demographic group in the country. Combined with their status as trendsetters (see metrosexual, see yuppie, see hipster, see Madonna) it makes them one of the groups most sought after by advertisers. Furthermore, they are a significant portion of the population in most urban centers - a market GM needs to access. GM spends very little money and zero effort targeting them with advertising. Why? Conservative corporate culture? Run by old men who haven't left Detroit since Carter was president? I don't know and I don't care, but I do know this; GM's refusal to do so, and this is just one instance of such stupidity, is killing the company. It makes GM look backwards, out of step, and about as culturally relevant as Duran Duran (or Pontiac). What makes this all so disappointing is GM has a good story to tell the community about it's efforts to stop corporate discrimination and to become an inclusive company. Did you know GM has one of the largest GLBT employee groups in the world? Did you know that GM has received a perfect score from HRC for its hiring and non-discrimination policies and that GM is held as a model example for how to deal with issues arising from such a diverse workforce? No?! Neither was I until I looked it up. In a completely unscientific survey (conversations I've had) not a person has known and would have given whatever GM product was in consideration greater preference had they known that. Let's take Cadillac's current "Life, LIberty and the Pursuit of" mantra. How much money would it take to adapt that into a passible campaign targeting the GLBT community? How about... "Life, Liberty and the Pursuit of Equality" with an ad talking about the points I mentioned above? It would take half a day with a copy of Photoshop, InDesign and some stock photography to put it together. For Instance - Branding must be improved to target specific demographics. Each brand needs to come up with a demographic of customers that it plans to attract, how it plans to attract it, and with which product it will do this. Saturn, Pontiac, Buick, SAAB and in some cases Cadillac all seem to be chasing after the same consumers. The insanity needs to end now. If the brands can't clearly delineate who they plan to attract with various marketing campaigns and products then the brands should be shuttered in the North American market. I won't get into hypothetical what brand goes where exercises because such discussion will distract from the points I'm trying to make about how GM has failed to successfully create products for and market products to America's major cities. 2) Relevant Product: Marketing will only work when coupled with products that are relevant to the marketplace. This only underlines the importance of several GM product launches including the Cruze, Volt, ATS, 2012 Astra, and 9-1/9-3. GM has to demonstrate it has the capacity to build, not just competent, but class leading small cars. GM compacts are automatically dismissed as rental specials and no amount of marketing will be able to change that until the product shows a demonstrable change in GM's focus from large SUV's and trucks to segments it has long neglected. In turn, GM must realize that a continued focus on SUV's and trucks will condemn the automaker to bit player status in urban markets - and it's continued slide towards culturally irrelevancy. The Cruze, Volt, 2012 Astra, 9-3/9-1 and the Cadillac ATS will be instrumental in demonstrating GM's new found commitment to smaller cars. All of these models will need to be offered with a variety of body styles including sedans, wagons and or hatchbacks, coupes and maybe even convertibles. They will all need multiple variants including luxury and sporting models, hybrids, diesels and even optional electrical drive (beyond the Volt). Realizing the importance of the environment to many living in urban areas, GM should go as far as to take a page out of Ford's book and offer an optional interior with a recyclable interior (Fusion Hybrid). Furthermore each of these cars must have a full slate of options available including Bluetooth, iPod integration, navigation, blind side warning systems etc. 3)Conclusion Failure to make these cars class leading will ensure failure in the marketplace and GM's eventual failure. Failure to market these cars correctly will ensure their failure and GM's eventual failure. This is General Motors last chance to get it right or they will again lose a generation of consumers. Unlike last time it won't be because of crappy product, this time because of irrelevant product. Put your questions and comments below. I'll be slow getting back to them because it's 22:30 in Florence, I'm still jetlagged and I'm going to bed.

BTW Just so everyone knows, LaNeve is now saying that he was misquoted about the Pontiac division being a one model division. He claims that the reporter asked him; "If you could sell one car at Pontiac, what would it be?" To which he replied; "The Firebird or Trans Am because those were my favorite Pontiacs." Then, of course, our BRILLIANT media decided to run with the "variation" of the story that we got. I seriously think GM has no clue about what they're going to do with Pontiac at this point. And I think that is somewhat by design. They need to get 'the big 4' worked out before they can worry about Pontiac and the other 'small' divisions.

And that's one reason my GF is seriously eyeballing the preservation side.

The 360s were SUPPOSED to receive a MAJOR update a couple of years ago... But along came the lambdas to kill that idea.

It's time like this that I want to become militant.

+1 The LX cars were awesome. And I hope the follow ups will be just as good. I think some people on here hate on the LX cars because *GASP* black people buy them... See, that's the problem with american cars. When they ARE well done, they attract a following that forms an emotional attachment. Then these ASSETS are spun by the haters and media as 'bad image' Examples: "rednecks buy Pontiacs" (No doubt because of the very loyal muscle car crowd) "Cadillacs are bling-bling and ghetto" (because of the hip hop following) "Hummers are driven by pricks that are compensating" (Because of the off road loyalists that choose the brand) "Buicks are driven by old people" (Because of their WEALTHY, LOYAL customer base) However, since 1) japanese appliances don't really form an emotional, loyal following and 2) mostly yuppie white people (read, the haters -- the people who control image) buy the asian brands. Nothing is ever said about them. The one exception might be the Prius, which is getting it's due now because of it's relatively passionate following from the 'hollier than thou' crowd. It's bullsh*t.

+1 And, given that the G6 has been losely compared to the Jetta (in scope) it might just be where they are going.

What makes a Lexus "better" than a Cadillac or a BMW "better" than a Pontiac? The image the car conveys, that's what. So GM should sell to the bottom of the market and the tip top? that's GREAT business sense. Okay... So, you'r speaking for everyone who buys luxury automobiles that are based on plebian models? With this mindset, you might as well be. It's not about "better" it's about choice and taste. What you don't get is that the real world is too stupid to know who makes what, much less that a Chevrolet IS a Pontiac (unless it's blatantly rebadged) The current image problem is due to sh*tty products, not the fact that those products are based on the same corporate underpinning as other GM vehicles. Disagree? Then why does GMC do so well then? No one is asking them to. their asking them to dedicate a few highly focused niche models to Pontiac (2 out of 3 of these models have already been developed)

1) The saturns would be more of a premium offering (i.e. more pure Opel) 2) Some people (a lot of people) won't consider a Chevrolet, but they will consider a Saturn.

You make Saturn and Pontiac "cult" divisions. You build a LIFESTYLE around them and recruit (conquest) the most loyal customers in the market. Then you wait a few years (because it'll take a while) and watch the sales grow. Then you can market them better when you have the money. LIFESTYLE = 1) unparalleled customer service. 2) an aftermarket of endless "expression" items. 3) events and 'rituals' to promote a feeling of family. 4) on going communication with the 'client' that bought your car. 5) become active in something greater (support a cause) There are TONS of things GM could do (relatively cheaply) to promote this kind of thing. They need to take this OPPORTUNITY to re-engineer their brands from the ground up and really develop loyalty. Especially with the new niche brands. The brands are a valuable resource, if only GM knew how to use them appropriately. A good example of this is Mini. I have a friend that is an avid Mini person. The company mails her things all of the time, there is tons of aftermarket and she feels like she is a part of something bigger (i.e. a family) That is the only way GM will be able to save them if they turn them into niche players. And, let's face it, if they become niche players they're extraneous anyway. So what do we have to lose. Let the big 4 (Chevrolet, Buick, GMC, Cadillac) go after share. Saturn and Pontiac (and Saab maybe) can go after hearts.

Oh really? Last time I checked, Toyota wasn't exactly "cleaning their clock" here where GM has 8 divisions. Besides; Toyota has 3 STRONG divisions and a bunch of buyers that buy on name alone. If GM thinks it can structure itself like Toyota and succeed, then we're in for one helluva show. Different companies, different cultures, different perceptions and different outcomes.

I meant it as a joke or sarcasm. It was taken as an insult. Maybe I shouldn't have pushed the issue but Croc and I have had words before, so I guess it just pissed me off. It just irks me that some people on this site get their panties in a tangle over the stupidist things. Like it or not, California does have a "reputation" and it's not a good one. But the same can be said for almost anything. The south and the appalachians have a "reputation" that the majority subscribes to... Detroit has a "reputation" that the majority subsribes to... Races/ethnicities have "reputations" that the majority subscribes to. Like it or not (i.e. Doesn't matter if it's true of not) this is reality. The fact that certain members feel it their duty to reprimand people like some sort of forum PC nannie makes them out to be "irksome" and arrogant. It's fake and shallow.

Have you ever taken a personality test? You're probably an introvert and that isn't a bad thing, despite the common image. I actually score as an introvert. I enjoy being by myself, I'm very independent and I too am socially awkward. Believe it or not, I'm EXTREMELY shy until I get to know someone. Like, shy to the point that I won't even make eye contact unless that person speaks to me first. (Hard to believe from my alter ego here, I know) A lot of people think I'm arrogant or an asshole, but although I do feel that I don't really 'need' people, I just really have bad anxiety about meeting people. The reason I'm telling you all of this is because your use of the word "inept" leads me to believe that it is something you don't like or don't value about yourself. But you should embrace it, because it's what makes you happy. Anxiety. (I do this as well, except it's usually over a big test or something of that nature)

All of this whining over me saying "Naturally, it's in California." And yes... As I said, you "took the bait" and we're made an example of. The reason I decided to make an example of you is because you called me out. If you don't want to get punched in the face, don't talk sh*t. You could've let it go, but you didn't. Had I said something degrading or offensive, then more power to you and I probably would've eventually apologized or rationalized. But that wasn't the case. I said nothing derogatory at all. In fact, what I said was OPEN TO INTERPRETATION. Just because you interpreted it a certain way doesn't mean that it was meant that way. I think it's funny how you always claim to be so non-judgmental, yet you're THE FIRST one to jump to conclusions and b*tch when someone 'offends' you. I also think it's funny and ironic that the post I quoted pretty much proves the point it makes. Besides, we all know it was Brian and his actions that started the "exodus". :twocents:

POST OF THE YEAR!!!!! I get so tired of GM trying to 'make up their own segments' If you're going to try and conquest import buyers, then give them something SIMILAR (READ: something that actually competes with) their import. Nothing like confusing the buyer even more....

*fixed No, they're not just as good. I prefer a Pontiac, therefore the Chevrolet's are not 'just as good' Do you ever get tired of typing this same recycled bs? Because I know I certainly get tired of reading it. NO ONE here is asking GM to do that. And to my knowledge, NO ONE ever has.

+1 The line topper should be the Astra with a whole portfolio below that. (Just like in my to GM plan ) Just bring the Opels over and sell them as Saturns. Do we really want Buick selling B-segment junk? +1 And what these people don't realize is that Saturn doesn't have the luxury of having a dealer on every corner either. RE: The GM doublespeak.... What else is new?

LaNeve is referring to the appeal of the Saturn division, not profitability. GM needs at least 6 divisions and they can all co-exist at 19% (which, BTW, GM's current share is 22%) ESPECIALLY if Pontiac is reduced to a "niche player" It's all about focus

+1 again... I think Turbo should be hired by GM. It's kind of ironic that buyacargetacheck accuses us of living in the past, when in reality it is he that is stuck in the past and clouding his vision for the potential of Pontiac. Just IMO.

*Off the top of my head* Here at the APT: Messing with and maintaining my plants. You could say I've brought the outdoors in with me as I have usually 25-30 plants in the apartment at all times. (They range in size from about 6 inches tall to about 11 feet tall) Playing with our dogs or taking them to play with other dogs. They really are our kids and they're spoiled accordingly. (Since I'll by choice, never have kids, I kind of get that connection from them. And as an added bonus, they're smart enough to know not to sh*t themselves) Cleaning. I'm a fanatical neat freak and since our apartment is historic and we love to 'entertain' I take pride in keeping it extremely clean (Seriously, I have hobby brushes to touch up the paint 'on the corners' once a week) Hanging out at the bar I work at. The neighborhood is very close nit and it serves as a sort of 'community center'. Photography. Charlotte was virtually bankrupted by the death of the textile industry in the 70s and 80s. And even though they almost seem to enjoy demolishing historic or old buildings for the sake of progress, the 'downtown area' surrounding center city (uptown -- where all the banks are headquartered) still contains TONS of old structures and cool industrial stuff. So I've attempted to become a sort of amateur photographer. I'm not that good, but I have landed some cool shots. Car shows. This area is NASCAR country and not surprisingly, there is a HUGE classic car culture here. I can usually hit at least one show each day of the week in the summer (If I wanted to) At home: (Where I grew up) Working on my cars (this is where my fanatical side comes out at home) and being out in nature. I'm outside as much as possible when the weather is nice. Either working on my cars, working in the yard, exploring the mountains or going to car shows. Anything, so long as I don't have to sit indoors. Having heavy metal listening sessions/movie sessions. A friend and I actually plan times to just goof off and listen to new metal, watch new movies and discuss them. It's hella fun. Camping and scenic rides. When I was younger, my family traveled a lot on weekends and holidays. Conventions, camping trips, day trips to explore the scenery. Always fun. Hanging out with family and friends. Cook outs, parties, bon fires, you name it.