GM image upgrade a ray of hope

[Flybrian]

GM image upgrade a ray of hope
March 11, 2007
Link to Original Article @ Detroit Free Press | BY TOM WALSH | FREE PRESS COLUMNIST

When you're on an economic losing streak as ugly as metro Detroit's -- Pfizer closing its Ann Arbor research complex, Chrysler on the auction block, Comerica headquarters moving to Dallas -- you look for an encouraging sign wherever you can.

So it is with a flutter of hope that I bring two seeds of promise regarding the region's biggest corporate citizen, General Motors Corp.:

• A new national poll of 1,000 Americans by Rasmussen Reports shows that 69% think "favorably" of GM, a big jump from only 48% last year.
• And in Fortune magazine's 2007 ranking of America's Most Admired Companies, GM has moved up to No. 5 among vehicle makers, a nice gain from last year's No. 9 rank among the industry cellar dwellers.

OK, so it's not exactly the stuff of a memorable ad campaign -- "We're Number 5! Ain't No Jive! We're Number 5!"

But it is directionally encouraging to see that GM, widely derided as a lost cause and bankruptcy candidate a year ago, has since surpassed Nissan and Volkswagen along with Ford on the admiration meter in the Fortune survey.

The Rasmussen poll might be more promising because the survey sample was made up of everyday folks interviewed March 1-2. These are the kind of car and truck buyers that GM must lure back into Chevrolet, Cadillac, Pontiac, Saturn, Buick and GMC showrooms in order to stabilize its share of U.S. vehicle sales, which has been skidding since the 1970s.

According to the survey by New Jersey-based Rasmussen, 69% of Americans have a favorable view of GM and 22% an unfavorable view. That's much-improved since July, during the height of speculation about a GM-Nissan-Renault alliance that never happened.

In the new survey, 57% of Rasmussen poll respondents rate Ford Motor Co. favorably and 30% unfavorably. The numbers for Chrysler -- 51% favorable, 31% unfavorable -- are similar.

The poll also showed that 84% of Americans believe the U.S. auto industry is important to the overall national economy, with 49% saying it's "very important."

The Rasmussen poll didn't ask about Toyota or other foreign-owned auto companies, but the Fortune most-admired survey did.

Overall, Toyota ranked third in admiration among all companies -- behind only General Electric and Starbucks.

Ironically, in the more narrow industry list -- where only survey responses from companies in the same industry are counted -- Toyota slipped from first place in 2006 to No. 2 this year behind BMW among vehicle makers. Honda was third on that list, followed in order by DaimlerChrysler, GM, Nissan, Ford, Volkswagen, Paccar and Navistar.

GM's improving numbers should be heartening to everyone in Michigan. They show it's possible to survive a near-death experience and go from coma to consciousness.

Full recovery is still a long way away. We need to see profits, lower costs, positive cash flow and residual values that show people really believe GM cars are as durable and high-quality as any competitor's.

Still, that little flutter of hope feels good now.

[Camino LS6]

Can I get an "AMEN"?

[vrazzhledazzle]

Good news.

I expect the trend to continue...can't wait for the Malibu, G8, CTS, etc. to appear in dealer lots - those kinds of cars should push that percentage up, convincing people that think GM makes bad cars realize that they make great cars.

[Mr.Krinkle]

Toyota slipped from first place in 2006 to No. 2 this year behind BMW among vehicle makers. Honda was third on that list, followed in order by DaimlerChrysler, GM, Nissan, Ford, Volkswagen, Paccar and Navistar.

Maybe its just me and im reading this incorrectly, but how can a company fall to number two behind another company among others.

unless there were ties? but I dont think it specifies. Just looking for clarification.

[bowtie_dude]

Maybe its just me and im reading this incorrectly, but how can a company fall to number two behind another company among others.

unless there were ties? but I dont think it specifies. Just looking for clarification.

When it says "fell to No. 2 behind BMW among vehicle makers," its putting the ranking in the context of ONLY automakers and not with every company on the planet.

[Mr.Krinkle]

When it says "fell to No. 2 behind BMW among vehicle makers," its putting the ranking in the context of ONLY automakers and not with every company on the planet.

I get ya. I thought I saw "among other vehicle makers. oh well. sucks for them. One bad thing about being on top of the mountain.

[AxelTheRed]

This is good news for GM, the American auto industry, Metro Detroit and Michigan as a whole.

[Z-06]

Wait a minute;

Toy is one of AMERICA'smost admired company?

Does that make sense?

I can uderstand GE and Star*ucks.

[zhawk]

There were 2 different polls. The one without Toy was the "America's Most Admired Companies" poll.

The other poll included foreign corporations.

This is indeed good news. Not only are people waking up to the improvements and strengths of GM, they seem to be realizing just how imprtant our auto industry is.

[Z-06]

There were 2 different polls. The one without Toy was the "America's Most Admired Companies" poll.

The other poll included foreign corporations.

This is indeed good news. Not only are people waking up to the improvements and strengths of GM, they seem to be realizing just how imprtant our auto industry is.

No, this is what it says

And in Fortune magazine's 2007 ranking of America's Most Admired Companies, GM has moved up to No. 5 among vehicle makers, a nice gain from last year's No. 9 rank among the industry cellar dwellers.

The Rasmussen poll didn't ask about Toyota or other foreign-owned auto companies, but the Fortune most-admired survey did.

Overall, Toyota ranked third in admiration among all companies -- behind only General Electric and Starbucks.

Unless Fortune had two polls, one with and without foreign manufacturers.

Edited March 12, 2007 by smallchevy

[zhawk]

No, this is what it says

And in Fortune magazine's 2007 ranking of America's Most Admired Companies, GM has moved up to No. 5 among vehicle makers, a nice gain from last year's No. 9 rank among the industry cellar dwellers.

The Rasmussen poll didn't ask about Toyota or other foreign-owned auto companies, but the Fortune most-admired survey did.

Overall, Toyota ranked third in admiration among all companies -- behind only General Electric and Starbucks.

Unless Fortune had two polls, one with and without foreign manufacturers.

Sorry, my bad. I was pretty tired when I read it and it looks like I read and interpreted it wrong.

In that case, they must be saying companies that operate within th US. If so, it is misleading.

[Z-06]

Sorry, my bad. I was pretty tired when I read it and it looks like I read and interpreted it wrong.

In that case, they must be saying companies that operate within th US. If so, it is misleading.

Not a problem Sir, I just wanted to make sure that I read correctly too.

[regfootball]

if you would have polled members of the media, you would have gotten toyota #1 with a huge margin because all those 'journalists' would have just cashed their paychecks from the big puffy T.

Edited March 12, 2007 by regfootball

[enzl]

if you would have polled members of the media, you would have gotten toyota #1 with a huge margin because all those 'journalists' would have just cashed their paychecks from the big puffy T.

If you polled the 100,000 employees that will directly or indirectly lose their jobs in the next year or so because of GM (ANd Ford and DCX) Corporate stupidity....

....odds are they wouldn't be ranking GM at the top of any polls either.

[-Camaro-]

Only 1000 people polled? That can't be reliable.. It all depends on who you poll.

[siegen]

Only 1000 people polled? That can't be reliable.. It all depends on who you poll.

That's what I thought, only 1000?

I bet if they polled just Saturn as a brand, you would see the largest increase.

[Mr.Krinkle]

A poll can actually become reliable/valid after 100 responses assuming it is a random sample.

The + or -- margin of error is increased, though. 500 is usually a decent number and would result in a margin of

about five +/-. 1000 is give or take three.

The most relevant part is that it is random. Like, suppose you work at GM or Honda and distributing the question

to your employees, for instance. That would compromise the results.

Edited March 12, 2007 by Mr.Krinkle

[gm4life]

Hey this is at least some good news. It is about time people realize GM makes good products. Oh and the image thing is important.

[97regalGS]

clearly adding those little GM badges to all the cars is working!

[The O.C.]

Only 1000 people polled? That can't be reliable.. It all depends on who you poll.

......and where they live......

GM-loving Michigan?

Import-humping California?

Etc......

[VenSeattle]

If you polled the 100,000 employees that will directly or indirectly lose their jobs in the next year or so because of GM (ANd Ford and DCX) Corporate stupidity....

....odds are they wouldn't be ranking GM at the top of any polls either.

+

......and where they live......

GM-loving Michigan?

Import-humping California?

Etc......

Wait a minute... You and Enzl need to compare notes and come back and attack this good news with the same Story...Either GM-Loving Michigan likes the domestics, or Unemployed Laid-off Michigan hates the domestics. You can't have it both ways guys.

I'm not surprised Enzl only had negative comments about this somewhat positive article, but you too OC?

It's funny that you both are quick to criticize members for complaining against the biased media... yet you're both one of the firsts to yell 'bias' or 'incorrect reporting' on a positive GM article.

[Oracle of Delphi]

+

Wait a minute... You and Enzl need to compare notes and come back and attack this good news with the same Story...Either GM-Loving Michigan likes the domestics, or Unemployed Laid-off Michigan hates the domestics. You can't have it both ways guys.

Maybe they are both right, those employees that have been laid off from the auto industry, hate domestics now and those that still have jobs, still love them. Just a thought!

[mustang84]

if you would have polled members of the media, you would have gotten toyota #1 with a huge margin because all those 'journalists' would have just cashed their paychecks from the big puffy T.

According to Alitalia's little magazine they have on each flight, Toyota already surpassed GM as the world's largest automaker.

[enzl]

+

Wait a minute... You and Enzl need to compare notes and come back and attack this good news with the same Story...Either GM-Loving Michigan likes the domestics, or Unemployed Laid-off Michigan hates the domestics. You can't have it both ways guys.

I'm not surprised Enzl only had negative comments about this somewhat positive article, but you too OC?

It's funny that you both are quick to criticize members for complaining against the biased media... yet you're both one of the firsts to yell 'bias' or 'incorrect reporting' on a positive GM article.

I can't speak for others, but I can tell you the only thing I complain about is when posters take issue with negative stories about the Detroit 2.5. Where else but a GM board would you find people in disbelief that a company that has:

1. Lost Billions

2. shed tens of thousands of jobs directly,

2.a. 100,000's indirectly,

3. made embarassingly awful products for years,

4. lost $ when the economy has been booming and,

4.a. interests rates historically low AND

5. run to the gov't with hat in hand for help...

etc.

& it gets bad press? Shocking.

It's nice to see positive stuff...I'm not against it. But if we're clinging to some random survey as evidence of something positive, I just can't get excited. I'll beat this dead horse one more time: I'm rooting for GM...I just refuse to apologize for them.

Edited March 17, 2007 by enzl

[4gm]

I don't see the point of this poll. It's completely meaningless. The only "poll" that will matter is the one that shows GM posting month-to-month retail sales increase without the use of heavy incentives or 0% financing promotions.

[Drew Dowdell]

Your so negative! But very true.

GM is trading under 30 a share again. Investors do not appear to be swayed by the poll either.

Someone on here was just bragging as to how much money they made on GM when the stock hit the mid 30's.

I hope they sold.

I hold GM stock long term. I stopped purchasing when the stock was in the mid-30s and just held my positions. I purchased most of my GM stock when it was in the high teens, so I have a lot of wiggle room.

[Mr.Krinkle]

Or the context of the question for the Poll. What people think of GM the company may be far different from what people think of Chevy, Saturn, Buick, Pontiac, Hummer, SAAB, GMC and Cadillac.

Last I looked I could not buy a GM brand vehicle any where. GM - C may be the closest.

Because I have a favorable or indiffernet view of a company does not mean I will purchase their products or services.

Apple Computers gets a vote from me but I will not purchase a Mac.

Nobody gets 50 phone books and starts making calls to conduct a survey. The data is collected from all sorts of places and typically chosen lottery style. The chances of getting a GM or Toyota person are for all intents and purposes equal. You can get a Toyota employee that was dismissed for drinking on the job as equally as

as GM employee that was fired for being late to work. Also why there is a margin of error. Anyone remember the exit polls from the 2000 elections?

Because I have a favorable or indiffernet view of a company does not mean I will purchase their products or services.

Absolutely. People can have a favorable opinion of Toyota because they see they suppoty public broadcasting or GM because they know about Ethanol and the Volt concept.

After it is deemed random the context of the question is far more valuable for contributing to its validity.

[enzl]

I don't see the point of this poll. It's completely meaningless. The only "poll" that will matter is the one that shows GM posting month-to-month retail sales increase without the use of heavy incentives or 0% financing promotions.

That's what I'm talking about!(---although the salesmen always love incentive season...)

Product is King. Perception will follow.