Return to Greatness

[Guest buickman]

GENERAL WATCH NEWS

As was well known prior to the Annual Stockholders' Meeting, the call was made for Rick Wagoner to resign, based upon his record. Security at the event refused to allow distribution of the following report to fellow shareholders. At the conclusion, a line formed to receive the material. Here it is for your review. For a transcript of the meeting call 313-556-5000 and ask for shareholder relations. More soon...



GENERAL MOTORS


RETURN to GREATNESS

____________________


FOUR PILLARS
For Market Share
____________________



Customer Long Term Care

Dealer Training

Company Policy

Veteran Involvement



THE PLAN


1st PILLAR - CUSTOMER LONG TERM CARE

Step Six Got GM - Get GM
Step Ten AARP
Step Eleven Brand Merchandise
Step Twelve Auto Shows
Step Fifteen Referral Savings Accounts
Step Nineteen Direct communication


2nd PILLAR DEALER TRAINING

Step Four Destination Detroit
Step Five Home Deliveries
Step Eight Dealer Margin
Step Eighteen Sales Guilds
Step Twenty Regional Sales Training


3rd PILLAR COMPANY POLICY

Step One Elimination of Destination
Step Two Mid Year Price Increases
Step Three Quarterly Incentives
Step Seven Fall Annual Model Introduction
Step Nine Day at the Dealer


4th PILLAR - VETERAN INVOLVEMENT


Step Thirteen Profit Sharing
Step Fourteen Executive Vehicles
Step Sixteen GM Smartcare
Step Seventeen GM Card




www.GeneralWatch.com


: Introduction

This outlines the first twenty ideas for improvement. Many more exist; however, this illustrates the existence of rational, executable ideas. GM management complains of health care costs, retirement expenses and exchange rates while continuing their empty promises of new products, processes and restructuring. We all are aware of the repeated failures in the marketplace. These past decades of decline are attributable to GM’s failures in merchandising rather than these costs, which are, in truth, incidental to the real problem. Sales executives at General Motors don't understand marketing. They don't know how to sell cars. It's all about image and perception. A winning image in the marketplace can overcome product weakness, assuming the product is not glaringly inferior. Given today's relative equality of merchandise, my experience is that the presentation makes the difference.
Since 1997, after watching the missteps of GM management, I began developing a marketing plan specifically for General Motors. It uses proven techniques learned through decades of successful selling and sales management. In addition to retailing well in excess of ten thousand new vehicles, I have also studied the corporation's historical development. I've attended annual meetings since 1982 and hosted luncheon PowerPoint presentations on market share. As the nation's leading Buick salesman six times, and the General Manager of different GM stores, my success has been significant.

This year, for the fifth year in a row, I have been nominated for the Board of Directors. In support of that nomination, I offer a few of the ideas from The Plan – A Return to Greatness. I ask those of you who receive this to please keep the information confidential as to the specifics. Feel free to write and/or talk about The Plan's existence, but keep the details under wraps, as to not enlighten the company's competition.

Any plan is only as good as it's implementation. Having a successful outline is one thing, but if it is not put into effect in a logical sequence, the odds of success greatly diminish. Alfred Sloan, the architect of the modern GM, years ago instituted an idea called the Ten Day Report. The implementation of The Plan builds upon this idea. Once A Return to Greatness is announced, GM releases the first step. Subsequently, we issue another improvement in ten days, continuing a pattern of every ten days with another step. This will create anticipation and the image of leadership. The groups targeted for action will look forward to the next event, and come to understand that there is a purpose and direction emanating from the company. I will assume each of you will visit www.GeneralWatch.com where background information can be found, and a copy of the PowerPoint presentation detailing strategy and structure may be downloaded.


RETURN to GREATNESS


The Improvements

STEP ONE: Elimination of Destination Charges. "The Return" announcement proclaims, “If you want to pay freight, get a foreign car”. This is mindful of Iaccoca's proclamation, “If you can find a better deal, take it.” This worked for Lee, and showed his tenacity. He earned Chrysler respect and admiration by showing true leadership. He had gumption and people like that. It's an attraction. The problem with GM is that we are seen as softies, and losers. Taking a stance, and actually giving customers something easy to understand, and appreciate, will be a tremendous opening salvo. It will set the competition back on their heels, and let people know we are serious. This step begins our weaning process from the devastation of rebates. We can work towards effective net pricing, and earn goodwill in the process.

STEP TWO: Elimination of Mid Year Price Increases. Ten days after the original announcement, we release the next step. The deceptive practice of incremental increases only clouds the purchase process. Customers will perceive us as doing something positive and beneficial, rather than sneaky, and underhanded. We will earn more goodwill without any true expense.

STEP THREE: Quarterly Incentive Changes. No more pressure to buy now, hurry before it ends, only to be followed by another program. This repetitious process, which has been our norm, destroys credibility, and works against us in many ways. How many times has a customer purchased, only to have the rebate etc. increase the very next day? The effect of this goofiness has customers riding around in their new cars and upset that they just missed an opportunity. Let's create some stability, and simplicity, in the marketplace. Give customers’ confidence in their decisions, and provide the right amount of time to make informed choices. Give the customer the opportunity of ordering the vehicle of their liking, without worrying what the deal might be. Also, allow the retail personnel an appropriate amount of time to properly sell, and deliver, the unit. This would be preferable to slam dunking folks who are under the gun to meet a deadline, and who end up less than completely satisfied with their delivery process. Quarterly adjustments only make sense, and give the business a well-needed sense of order.

STEP FOUR: Destination Detroit. This idea brings all future award-winning dealers and salespeople to the Motor City. The benefits are countless. First, we would be more effective in focusing the meetings, and events, on the business at hand. Rather than desert tours and polo matches, we entertain showing Motown's finest offerings. Have the individuals tour Milford Proving Grounds, drive on the test track, witness a crash in order to illustrate safety testing, go through the Styling Studio and expose future designs. Allow them to meet with engineers, and see the inner workings of corporate headquarters. We pamper the spouses with our city's best services. At the conclusion, we send them back home ecstatic about GM, and Detroit. These actions would build goodwill for our city and company, and spread it throughout the country. Meanwhile, our executives can stay at home, which would be very good for their family lives, and our expense column.

STEP FIVE: Home Deliveries. We announce an effort of working with our dealers to bring to the customer the vehicle of their choice, directly to their place of employment, or residence. Most customers either dread, or dislike, the dealer experience. Offering this free service would further build goodwill, and lead to customer appreciation. I've made an entire career out of this offering. People absolutely love it, and this is responsible for more sales than anything I've ever done is. Once we begin this process, our competition will probably follow, but hey, we'll be seen as the leader for a change.

STEP SIX: Got GM - Get GM. It is a loyalty incentive that anyone can comprehend. If you currently own, or lease, a GM vehicle, you receive $1,000. It is stackable, and compatible, with any offering, transferable to family member at the same address. No goofy rebate if you own a non-GM car. Who thought of that one anyway? Why reward disloyalty, or have to ask customers if they own a competitive product? Let's only give something to those who already support us. If the customer is not eligible, oh well, next time they will be. The program should be renewed annually, and left in force all year.

STEP SEVEN: Annual Model Change. This is big. Sloan came up with this idea for a reason. It evened out the seasonal fluctuations in sales. Whoever got the bright idea to come out with a car whenever it's ready really did not understand the car business. How many of you remember the anticipation of the fall's New Model Introductions? Let's return to the regular release of new products after Labor Day, and return a sense of order to the business. These days we're selling three different model years side by side. That is very confusing and damaging. Some things should never change, and this is one of those things.

STEP EIGHT: Dealer Margin. We will let our retail partners know they have something to gain in our quest to regain share. For each full point of share we regain, we give the dealers another point of margin. They can use this additional margin to do more advertising, or salesperson incentives. They could increase levels of service, carry more inventory, hire additional staff, or retain extra profit. They are the ones with the investment, and best understand their local markets. Let them decide what to do with the money. Maybe multi-line dealers will see the benefit in moving our products, rather than those of the competition.

STEP NINE: Day at the Dealer. Each month, every salary member of VSSM would be required to spend one day in a randomly selected dealership service department, preferably in write up. This activity would build tremendous goodwill, and give our employees valuable insight into the customer's needs and wants. Actually getting to know GM employees would give customers a sense that GM has a face. They would begin to see us as human beings, rather than an impersonal Corporation. The dealers would benefit by having additional support in their service lanes, and be able to offer quicker, more responsive service on those days when executives were there to assist. Customer satisfaction would increase, as would repeat and referral business.

STEP TEN: AARP. This is a fantastic demographic, and another opportunity to simplify incentives. Make it a year-round program. If you belong to AARP, you get $500 off any GM product, buy or lease. Make it compatible with all other offerings, and leave it alone. People ask about it all the time anyway. They feel cheated seeing it after they've already made a deal.

STEP ELEVEN: Brand Merchandise: Include with each delivery a coupon for $50 off, or towards, merchandise from an affinity catalog. For each brand, have a booklet full of things such as shirts, sweaters, gym bags, coats, golf bags, etc. The end result would be people going to nightclubs and health clubs, churches and stores, sporting our logos, and providing us with free advertising. This activity is of a personal nature, and would do wonders toward building strong brand image and awareness.

STEP TWELVE: Auto Shows. Instead of the current practice of giving rebates to certain residents of surrounding counties, let's offer Auto Show tickets to those who test drive our products. This would bring people into the stores, and provide an inexpensive gift that would be remembered as the customers enter, and exit, the shows. We would be the good guys who gave them something concrete as the sponsor of their attendance. The gift could possibly be made to include early entrance, or access on special days.

STEP THIRTEEN: Profit Sharing. At year end, instead of giving our employees a cash award for profit sharing, give them the choice of common stock. Have them become true partners in the company's success. Owning stock would increase the employee perception that they are part of something, and would be more meaningful in the long term than a few dollars easily disposed of.

STEP FOURTEEN: Executive Cars. Quite often, GM executives turn in their factory demos for sale with the odometer just under the next price discount level. This practice is both frustrating and annoying. The inconsiderate action toward fellow employees, and retirees, is inexcusable and unacceptable. GM needs to announce a policy of driving the unit to the next mileage category whenever the driver is within say 250 miles of the next price break. How can the company promote unity when a few individuals think they are being cute? I've seen units turned in three miles short of the next discount, more than once. What does this do for morale?

STEP FIIFTEEN: Referral Savings Account. Similar to the GM Card (another crisis), GM announces a program to accumulate savings of $50 for each referral who buys, or leases, a new vehicle. The referral must be disclosed prior to delivery, and would be similar to what we commonly refer to as a birddog. The account holder could then cash the savings in at the time they take delivery of their own unit.

STEP SIXTEEN: Free GM Smart Care Maintenance Agreement to all GM Retirees. This 36 month/36,000 mile program would offer free recommended maintenance to all GM retirees. The benefit would be great in the number of customers brought in for dealer service. This group of people has tremendous purchasing power, and exerts a large amount of influence over their family members’ buying decisions, often contributing financially to the transaction. Also, increased showroom traffic by our service customers, would lead to increased sales to those individuals, and to others who feel more comfortable buying when there is heightened activity.

STEP SEVENTEEN: GM Card. This was one of the best programs GM ever had. That was until someone decided to take earnings away from eligible GM family members, and thereby alienate thousands of employee cardholders. Many people swore off GM for the move. Some form of retribution needs to be made. Consultations with the legal staff could result in some form of program to attempt to bring those lost, back into the fold.

STEP EIGHTEEN: Sales Guilds. For years GM had brand specific sales guilds. Now, everything is combined into the GM Mark of Excellence. It's a decent enough program, but there would be a greater impact if we returned to the old days of Buick Salesmaster, and the Chevrolet Legion of Leaders. These former groups built a sense of loyalty and awareness for each carline, and gave salespeople their own individual rankings within respectively common professions.

STEP NINETEEN: Direct Factory Communication: Imagine going to your local dealer and ordering a new vehicle. From that point on, you might receive a call from your salesman with an update as to the order status. Usually though, no contact is made until the vehicle arrives. Utilizing the internet, GM could send information directly to the customer, informing them of their order's progress at the various stages, including when the vehicle is scheduled for production, after it is actually built (including the new VIN), and the estimated shipping, and arrival, dates. This increased communication would lead to greater awareness and satisfaction, as well as anticipation.

STEP TWENTY: Reinstatement of GM Regional Sales Training Classes. Years ago, GM offered professional sales development classes at the Regional Training Centers. As one who attended these seminars, I can attest to the benefit of the experience. I learned many things that still contribute to my success, even to this very day. Who better than GM to train salespeople as to the proper way to present our products, and follow up with our customers? The manufacturer knows more about the product than anyone, and should be able to give competitive information beneficial to those who need it in today's hotly contested environment. I believe this is far superior to our current system of computer testing in order to fulfill merit award requirements. I'd say roughly half of the time today, savvy salesperson’s subcontract out their testing on the computer to those adept at answering multiple choice, and working online. This process sidesteps the purpose of giving our salespeople the information, which improves their competitive performance.

These twenty illustrations from The Plan are an indication of the kinds of marketing that will lead to a rebound in GM's sales. As you can see, there would be hardly any expense involved, and in fact, many of the ideas would actually serve to reduce costs. GM needs to get off of the fire sale, deal of the day, mentality. The full page, distress ads currently being run only harm image, and create a sense of desperation. GM needs to let it go, and save the dough. We spend tens of millions of dollars unnecessarily, including huge amounts for useless spokesmen, who bring nothing to the table. Additional steps in The Plan include things like further doing away with rebates. If there is a problem with day’s supply, don't increase the rebate. Instead, add a point, or two, to the residual value and have the image of a good car with a great lease, as opposed to a slow mover with a big rebate. GM needs to wake up and realize, as the book says, "Your Marketing Sucks". GM worries about health care costs and pension benefits, yet wastes untold millions in the name of marketing. To quote my friend Jerry Flint, senior automotive writer at Forbes magazine, "It's not that the leaders of GM are bad people, they're not. They just don't understand the American car business". He further states, "This business really isn't all that difficult, all it takes is a good car, and someone to sell it". This excerpt from The Plan – A Return to Greatness shows that this someone does exist. Articles about my achievements and ideas have been showcased in major publications such as The Detroit News and Automotive News. However, there is nothing better than a first hand look at specific examples and detailed explanations.

GeneralWatch News

Market Capitalization

May 2000 $66 Billion
May 2001 $48 Billion
May 2004 $25 Billion
May 2005 $15 Billion


Under the leadership of G. Richard Wagoner (Executive Vice President and President North American Operations 1994, President and Chief Operating Officer 1998, Chief Executive Officer 2000, and Chairman 2003) General Motors has closed, sold, or spun off:

Oldsmobile Hughes
Delphi Detroit Diesel
Defense Electronics Light Armored Vehicles
American Axle Electromotive
EDS and more!

In replacement we have:

Saab Disastrous Marketing
Daewoo Record Recalls
Shanghai (may work) Huge Long Term Debt
No Innovative Buicks Diminished Profits
FIAT FIASCO JUNK BONDS

In Japan, they fall on their sword for any of these failures individually. When added together, the real question appears. Who is RESPONSIBLE? Hardly anyone questions the BOARD, even with over 75% of the company’s value GONE in five years. The answer is The Plan, which calls for virtually no investment, and will, in fact, serve to significantly reduce expenses. The specific steps are based upon decades of successful experience as America’s top Buick salesman (six times). Here are sample responses from dealers, Wall Street analysts, marketing research companies, GM employees and retirees, and the media:

“I can’t thank you enough for sending The Plan. It is clear and logical. Implementation would be relatively easy and I have little doubt—based on our customer surveys—that such a program would be effective.” Art Spinella, CNWMR

“Frankly, your twenty points could not have made any more sense.” Gitas Jamekis, John Crane Inc.

“Wow, Jim, this is amazing. Some of these ideas might just work, by God. And Mark LaNeve dismissed this? I have looked at the website, and there is a ton of interesting stuff in there.” Dan Neil, Los Angeles Times

“Everything makes perfect sense in its appropriateness and simplicity.” Ed Garsten, Detroit News

“So, the legend grows.” Ed Lapham, Automotive News

“I think you hit the nail on the head.” Ed Wright, GM Plant Manager, retired.

“It is a blessing to hear your thoughts about GM. Being a Nissan dealer, I have watched the company do a 180 turnaround because of vision and dynamic leadership.” Ben Keras

“You remind me a little of the legendary Ed Cole.” Robert Harless, Preferred Media

“First of all, let me say that I think you’re doing everyone a great service.” Jason Stoddard, Centric

“Jim, just read your plan to return GM to Greatness. It all makes sense but how do we get the brass at GM to pay attention?” David Bruckman, Clay Matthews Auto Group

“Rick ran GMNAO directly for four years and indirectly for two more: what you see at GMNAO today is a direct result of his strategy and actions.” Gary Lapidus, Goldman Sachs

“I will gladly put your name on my proxy.” GMAC Branch Manager

“I think it is the best thing to have happen to GM.” Anonymous, Bellagio Resort

“Buickman – Who knows more about selling cars than just about anybody.” Jerry Flint, Forbes Magazine


James M. Dollinger
Founder GeneralWatch Shareholder Newsletter
Chairman
Dollinger & Company, Inc.
416 South State Road
Davison, Michigan 48423
(586) 914-BUICK (2842)
[email protected]





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[Croc]

Why did you post all of this? I thought you wanted money for it? What happened, no one came to your seminars? Seriously...I just don't understand.

[Guest buickman]

This isn't about money now. Initially all I asked for was compensation if it worked. Now it's about saving GM from the throws of bankruptcy and stopping Wagoner from destroying what's left. Hundreds of thousands of lives are dependent upon GM and it's survival, let alone resurgence. Time to go public. Edited December 6, 2005 by buickman

[caddycruiser]

WOW. If that were the way GM ran, step by step, I think they'd be in a much better situation today. As is, if that could be implemented, step by step, but as quickly as possible, it would also help to get them out of the black hole they're in now. Buickman needs to replace Wagoneer and do it NOW...seriously! What needs to be done to get these changes in place and you in a position where you can take charge over the morons set to dig the company an even deeper grave? Edited December 6, 2005 by caddycruiser

[Croc]

But GM isn't at a bankruptcy risk. For a company to file for bankruptcy, they must first qualify for it. GM does not, and that is something any intelligent being knows who does more than listen to the talking heads on TV. :rolleyes:

[Croc]

WOW.  If that were the way GM ran, step by step, I think they'd be in a much better situation today.  As is, if that could be implemented, step by step, but as quickly as possible, it would also help to get them out of the black hole they're in now.

Buickman needs to replace Wagoneer and do it NOW...seriously!

[post="53385"]<{POST_SNAPBACK}>[/post]

Ahhh...he's got you fooled! Wanna know why it sounds so good? Because it focuses on marketing the vehicles as if customer satisfaction is the ONLY priority and does not take into account manufacturing processes. It looks great on paper but like communism is very flawed on a very fundamental level.

[Guest buickman]

The flaw is believing you can cut your way to prosperity. GM has been doing it for decades to no avail. As Keith Crain, editor of Automotive News, said, "If GM sold another million cars a year, these problems would all go away". Return to Greatness WILL sell those million cars. GM has tried everything else they could think of. Buick Advertising went up 70% the first 6 months, introducing LaCrosse and "Dream Up". Then what? We change to Martha Stewart and "Beyond Precision". In the past few years there has been no consistency, only goofy, inept marketing from executives with nothing but egotism. Want results, listen to someone who knows what to do. Edited December 6, 2005 by buickman

[caddycruiser]

The flaw is believing you can cut your way to prosperity. GM has been doing it for decades to no avail. As Keith Crain, editor of Automotive News, said, "If GM sold another million cars a year, these problems would all go away". Return to Greatness WILL sell those million cars.

GM has tried everything else they could think of. Buick Advertising went up 70% the first 6 months, introducing LaCrosse and "Dream Up". Then what? We change to Martha Stewart and "Beyond Precision". In the past few years there has been no consistency, only goofy, inept marketing from executives with nothing but egotism. Want results, listen to someone who knows what to do.

[post="53395"]<{POST_SNAPBACK}>[/post]

EXACTLY. Nothing ever seems to be trully successful at GM, and a large part of that is they NEVER find the right chord and stick with it. I remember an article from the past that, talking about the engineering specifically, said something to the extent of "They have some of the greatest minds, technologies, and tools in the business. Problem is, they never have the correct leadership or decision making to determine WHAT it is they REALLY want to do."

That applies here too. They (whoever "they" is...and I'd REALLY like to know), make lots and lots and lots of hits, which end up being pennies thrown down an empty well--seem good at first, but if they had just sat down and trully came up with a proper plan, it probably would have succeeded much more. Think of the Lucerne commercial focused ONLY on the heated washer fluid; the still horrible electric steering in the Equinox, Malibu, G6, etc.; the constant changes in pricing and rebates, that are not only confusing, but led to most vehicles being MASSIVELY overpriced in the past several years, etc., etc.

There's a lot of great minds, for certain, they just need set DIRECTION and planning. Something they've clearly never had at all, or at least in full.

[Croc]

Again, this Return to Greatness only addresses marketing of GM as a company. Marketing marketing marketing. There is more than just marketing to GM. GM manufactures. GM has labor relations. GM has advertising and marketing. GM has to worry about exchange rates. It is extremely silly to look at GM's problems as solely an issue of marketing. That is why no one takes this plan seriously, not GM, not GM's shareholders, and not the insiders on this board.

[Cadillacfan]

The flaw is that you don't talk about GM's need to produce outstanding vehicles. If they make attractive, high quality vehicles, GM wouldn't have to worry about handing out cash to people and clever marketing schemes. People would buy GM because they liked what they saw. When GM has a really high selling volume vehicle that everyone has to buy, then they can impliment all these dealer programs. Not before. It would be a waste of time. A lot of Toyota dealers are notorious for being picky and downright rude to their potential customers and yet people buy their cars because they have the preception of having higher quality. GM is ranking higher then ever in quality and reliability surveys , but that's not going to help them get conquest sales back from toyota. People have already bought the idea that if it's foreign, it's surperior. They need to focus on making great looking vehicles. Styling is key. Unique product is key. Edited December 6, 2005 by Cadillacfan85

[Guest buickman]

If you don't have marketing and leadership, there is no need to manufacture, hence Wagoner and the knife. You're wrong about support. There are now thousands who have come forward. Apparently you didn't read the few quotes at the end of the original post. Waterfalls begin as raindrops and this has become a river. John McElroy of www.autolinedetroit.com said his broadcast of my interview (show 922 in archives) was by far the most responded to show he has ever done in 20 years. From Wall Street to LA, they are behind Return to Greatness. Only anti attitudes come from the Ren Cen and skepticism from Wagoner cronies who cruise forums. Edited December 6, 2005 by buickman

[razoredge]

But there is more to it than styling as well. Many of these ideas would go a long way at the car searching level and I dont feel they should be ignored. Some dealers already do some of it. So if this was implemented at dealerships ? What would be wrong with it ? Damn I hope I dont have to break this thing down. Jeeze how many posts have we read with negitive views of the rebates ? Now red tag sales = no profits. What about how it seems that darn saturins claim to fame is the dealerships and no haggle, ect ? GM needs fixing in any areas. Dealerships and purchasing experience is one of them. Wait.......I have a better idea.......wait........dont go anywhere.......

[Croc]

If you don't have marketing and leadership, there is no need to manufacture, hence Wagoner and the knife. You're wrong about support. There are now thousands who have come forward. Apparently you didn't read the few quotes at the end of the original post. Waterfalls begin as raindrops and this has become a river.
John McElroy of www.autolinedetroit.com said his broadcast of my interview (show 922 in archives) was by far the most responded to show he has ever done in 20 years. From Wall Street to LA, they are behind Return to Greatness. Only anti attitudes come from the Ren Cen and skepticism from Wagoner cronies who cruise forums.

[post="53416"]<{POST_SNAPBACK}>[/post]

Yes, I read the quotes. No, I am not wrong about support. These ideas help marketing, not the structural problems within GM that prevent them from PRODUCING world-class cars.

You have had your Return To Greatness sliced and diced by people on this site who actually work in the industry and are involved with the MANUFACTURING.

You seem to have things backwards...marketing isn't the raison d'etre of a company, the product is.

Stop capitalizing on people's fears of bankruptcy. It isn't gonna happen.

[91z4me]

Jim, you know my stance on your proposal but I don't know if I have expresed my disdain for you polluting other websites with spam such as this. A better way to get your message across would be to post a link to YOUR site with YOUR opinions on how to better GM and post that an UPDATE has been made. To copy the whole shabang to this site you are simply filling the forum with crap that doesn't need to be here.

[Guest buickman]

Cheers and Gears "Fresh Ideas for a Better GM". I am not playing to anyone's fears. I only want to sell another million cars per year. If leading the US six times doesn't qualify me as knowledgeable, what would? Furthermore, I'd like to know why in the world GM refuses to at least try Return to Greatness. There is no cost, and WHAT IF IT WORKS?????

[Croc]

Cheers and Gears "Fresh Ideas for a Better GM". I am not playing to anyone's fears. I only want to sell another million cars per year. If leading the US six times doesn't qualify me as knowledgeable, what would? Furthermore, I'd like to know why in the world GM refuses to at least try Return to Greatness. There is no cost, and WHAT IF IT WORKS?????

[post="53467"]<{POST_SNAPBACK}>[/post]

Because it doesn't address the fundamental structural costs of the company. GM needs to get lean, not increase their marketing budget. Edited December 6, 2005 by Croc

[Guest buickman]

I beg to differ. GM has been getting "lean" for years. You can't grow by cutting constantly, soon you hit vital organs and die. Return doesn't increase the marketing budget, it would reduce it by hundreds of millions. That my friend is getting lean the right way. No point mentioning that I don't understand manufacturing. I DO understand how to sell cars, and that is what is needed most, and soon. Edited December 6, 2005 by buickman

[Guest buickman]

I beg to differ. GM has been getting "lean" for years. You can't grow by cutting constantly, soon you hit vital organs and die.

Return doesn't increase the marketing budget, it would reduce it by hundreds of millions. That my friend is getting lean the right way.

No point mentioning that I don't understand manufacturing. I DO understand how to sell cars, and that is what is needed most, and soon.

[post="53484"]<{POST_SNAPBACK}>[/post]

[Cadillacfan]

GM hasn't been getting lean with it's brands. It cut most of it's subidiaries off but the brands need serious trimming. Oldsmobile, although many don't agree was acutally a good step. GM couldn't fix it so they needed to cut it. GM has hinted the same for Pontiac and Buick. If they can't fix them, they're better off not wasting anyone's time. Though, I'd prefer that it not come to that. We don't each brand to get the same vehicle. Each brand should have unique product. No overlaping. Marketing is the least of the problems in GM. The main problem is no sense of direction. No leadership. Edited December 6, 2005 by Cadillacfan85

[razoredge]

croc ? what the heck are you going off about ? at the current state of the rate GM has maybe 3 years of capitol. Your being a little tunnel visioned too dont ya think. Bankrupcy/bankrupcy not, GM is not selling enough cars. Its becoming more obvious all the time that "the product" is highly subject to opinion. Its not the only problem. Nor are the workers the only problem. Nor is Wagoner the only problem.

[razoredge]

Olds was a quarter million sales

[Satty]

The F-bodies were like 150,000 sales, we definately need those back, they'll solve all of GM's problems.

[Croc]

razoredge, you are right. those are all problems. but the marketing ISN'T one of the big problems! GM's manufacturing costs are the biggest problems because those costs are so exorbitant that they hinder GM's ability to make nice vehicles. Why do you think GM has to cut costs and cheap out on interior parts? GM might have three years of capital, but that assumes they make NO money in the next three years. Not gonna happen. Right now, GM needs more solid vehicles like the Buick Lucerne. From what we have heard, GM is getting them. I'm not calling for Wagoner's head yet, but I might change my mind upon seeing and judging the new vehicles. GM needs homeruns with the Lambdas, and from what we have heard they are excellent. Excellent vehicles sell themselves without fancy-shmancy (and expensive) marketing ruses. Because that is what they ultimately are, ruses to trick the customer into buying an inferior product.

[balthazar]

There is no cost, and WHAT IF IT WORKS?????
Because it doesn't address the fundamental structural costs of the company. GM needs to get lean, not increase their marketing budget.
Return doesn't increase the marketing budget, it would reduce it by hundreds of millions.
but the marketing ISN'T one of the big problems!

So Croc- it's your contention that marketing ISN'T a problem?? I have never once read on these boards in the like 4 years I've been here that GM marketing is A-OK and Right on Track.

Regardless of the number or scope of other problems areas, if these proposals save money and [/b]sell[/b] cars, (the former easily demonstratable, the latter proven in actuality), why would anyone who has good intentions towards General Motors oppose these steps... and why specifically?

Saying ' there's other problems' ignores the question.

[caddycruiser]

razoredge, you are right.  those are all problems.  but the marketing ISN'T one of the big problems!

GM's manufacturing costs are the biggest problems because those costs are so exorbitant that they hinder GM's ability to make nice vehicles.  Why do you think GM has to cut costs and cheap out on interior parts?

GM might have three years of capital, but that assumes they make NO money in the next three years.  Not gonna happen.

Right now, GM needs more solid vehicles like the Buick Lucerne.  From what we have heard, GM is getting them.  I'm not calling for Wagoner's head yet, but I might change my mind upon seeing and judging the new vehicles.  GM needs homeruns with the Lambdas, and from what we have heard they are excellent.

Excellent vehicles sell themselves without fancy-shmancy (and expensive) marketing ruses.  Because that is what they ultimately are, ruses to trick the customer into buying an inferior product.

[post="53503"]<{POST_SNAPBACK}>[/post]

That's OH SO true. Not to bring up the most used example again, but the current Chrysler 300 was and still is so over the top for the price, that they could get away with NEVER marketing it, and still sell everything they make.

Year after year after year, GM STILL can't make a single vehicle for the masses that has more than 2 people waiting in line--the Solstice being one lonely example. Yet, they still seem intent on dumbing everything down. We have the Lucerne which is great from a general engineering and quality aspect, but has such boringly bland and dull front styling and the old 3.8L under the hood, it makes you go "What?!" Then there's the Impala which, it seems, the goal was to make it a LOT better, but still keep the rental/fleet overall ambiance. Moving on, it now also seems someone is intent on dumbing down even GMC of all brands, which has always stood out for having some of the best GM looks and character, by making everything new look like "the blob from Buick past". It just goes on and on.

Yet, as always, year after year, we hear the same story and the same rumors "Just wait, you'll be amazed". Yeah, right...exactly the feeling I got when the turds also known as the Lacrosse, G6, CSV's, etc., plopped out of GM's ass and onto the streets....

BUT, beyond all of this, at the end of the day, they STILL need a completely gutted and rejuvenated basic business and customer service strategy to make any headyway, anywhere. Get the great cars out, and at the same time, get your asses together and make sure the people you want buying them are treated properly and WANT to keep coming back--not disgusting them. Edited December 6, 2005 by caddycruiser

[91z4me]

I beg to differ. GM has been getting "lean" for years. You can't grow by cutting constantly, soon you hit vital organs and die.

Return doesn't increase the marketing budget, it would reduce it by hundreds of millions. That my friend is getting lean the right way.

No point mentioning that I don't understand manufacturing. I DO understand how to sell cars, and that is what is needed most, and soon.

[post="53484"]<{POST_SNAPBACK}>[/post]

Your right you can't grow by cutting BUT you can become profitable at a lower sales level, something GM needs to have done years ago. Now they see that 30% marketshare is impossible to achieve in today's market. NO auto company will ever achieve 30% US marketshare EVER again. PERIOD if you think one will you are SADLY mistaken.

GM is changing its cost/manufacturing structure to improve profiablility at its current and project sales volume. That is JOB 1. Jim do you realize that Porche was the most profitable automaker for YEARS because it understood its role in the market and was so because it had a profitable manufacturing structure.

Same with Nissan. They became VERY profitable for a VERY good reason. Nissan and Goshen made plans to re-design its whole lineup and based most of its lineup on 1 chassis and share its engines extensively throughout the lineup. There is most likely not 1 engine/chassis component/electrical component that is not shared between at least 2 models.

Your plan may not cost anything more than what GM is spending on advertising right now but I am sure it would cost in restructuring its dealer opterations and integrations. Also you, of all people, should realize that GM as a whole has NO power over its dealers. Dealers are separate franchises and are NOT controlled by GM. GM has only the power to sell at specific prices to dealers, control allottments, set suggested retail prices, AND suggest marketing strategies.

So you, just like your Darth Vadar Mr. Wagner, can admit that you don't understand manufacturing or design. So I guess you would do EXACTLY what he did, you would bring in experts in the fields that you don't understand.

I have asked several times for you to leave out Rick from your 'discussions' as it proves that your motivation AND understanding are both flawed. You loose more of my and I am sure other's respect for you when you trash someone who is doing good, maybe not what you invision but good none the less.

[caddycruiser]

Your right you can't grow by cutting BUT you can become profitable at a lower sales level, something GM needs to have done years ago.  Now they see that 30% marketshare is impossible to achieve in today's market.  NO auto company will ever achieve 30% US marketshare EVER again.  PERIOD if you think one will you are SADLY mistaken.

GM is changing its cost/manufacturing structure to improve profiablility at its current and project sales volume.  That is JOB 1.  Jim do you realize that Porche was the most profitable automaker for YEARS because it understood its role in the market and was so because it had a profitable manufacturing structure.

Same with Nissan.  They became VERY profitable for a VERY good reason.  Nissan and Goshen made plans to re-design its whole lineup and based most of its lineup on 1 chassis and share its engines extensively throughout the lineup.  There is most likely not 1 engine/chassis component/electrical component that is not shared between at least 2 models.

Your plan may not cost anything more than what GM is spending on advertising right now but I am sure it would cost in restructuring its dealer opterations and integrations.  Also you, of all people, should realize that GM as a whole has NO power over its dealers.  Dealers are separate franchises and are NOT controlled by GM.  GM has only the power to sell at specific prices to dealers, control allottments, set suggested retail prices, AND suggest marketing strategies.

So you, just like your Darth Vadar Mr. Wagner, can admit that you don't understand manufacturing or design.  So I guess you would do EXACTLY what he did, you would bring in experts in the fields that you don't understand.

I have asked several times for you to leave out Rick from your 'discussions' as it proves that your motivation AND understanding are both flawed.  You loose more of my and I am sure other's respect for you when you trash someone who is doing good, maybe not what you invision but good none the less.

[post="53529"]<{POST_SNAPBACK}>[/post]

I'm sorry, but at this point, this late in the game, it's time to cut the old crapola and start pointing fingers DIRECTLY where they need to be pointed. There comes a time and a day where, if you're not getting done what needs to be done or even providing a CLEAR and COMPLETE strategy of how you're going to start to get the corporation out of the black hole, it's time for some fresh blood to take over.

It's that simple. Wagoneer is NO Deitsche or Ghosn, that's for damn sure. Edited December 6, 2005 by caddycruiser

[tmp]

The one point that I VIOLENTLY disagree with is the return to the September introductions for all cars. That's great if you are certain that every new car is ready for prime-time, but if it's not, what do you do? Release it knowing that it has problems? Wait another year to let the fixed one out? PR nightmare either way. No car company can afford to do that these days, not even the Japanese.

[Croc]

So Croc- it's your contention that marketing ISN'T a problem?? I have never once read on these boards in the like 4 years I've been here that GM marketing is A-OK and Right on Track.

Regardless of the number or scope of other problems areas, if these proposals save money and [/b]sell[/b] cars, (the former easily demonstratable, the latter proven in actuality), why would anyone who has good intentions towards General Motors oppose these steps... and why specifically?

Saying ' there's other problems' ignores the question.

[post="53520"]<{POST_SNAPBACK}>[/post]

No, I quite clearly said that marketing isn't one of the BIG problems. GM has a lot of crap it needs to deal with, but some of the crap is more important than others. Marketing is not essential, but manufacturing is. Let's get the CORE of GM right then address the superficial i.e. marketing. FWIW, GM marketing has never been that great, even in its glory days.

As for caddycruiser, what products are you bitter about? Last time I checked, the 2006 vehicles were the last ones to have Zarella influence. That means 2007 is when the Wagoner/Lutz team get judged. Are you not a fan at all of the GMT-900s? Those are some pretty sweet vehicles. Or did Wagoner f@ck those up too?

Wagoner did what a good leader does: bring in outside help to mitigate his own shortcomings. That's where Lutz came in. I am not willing to judge Wagoner for things he hasn't had total responsibility for.

[Croc]

Here is a closeup on the wood in the new Escalade for those who want to castrate Wagoner:

[Teh Ricer Civic!]

Ooo much nicer. id need to se the whole thing though/

[caddycruiser]

I really like the 900's, but was still speaking about a few "specifics" that make you wonder. i.e., the "Buick blob" look they gave the GMC, making what was once the most distinctive and classy the LEAST distinctive and fat looking; the lack of any improvement to the pathetic 3rd row; the typical "GM powertrain delay" on the 6-spd., etc. Nice, but there's still "buts". That, by far, is what baffles me above all. Decades after decades after decades and they STILL have yet to do a single vehicle that had EVERYHING right and ready from day one. Oh, and I still think the Lucerne is too frumpy...extremely nice, but frumpy...if that makes sense. It could definately use a tablespoon more "bold" in the recipe. AND, if I might add, even though we've only seen camo'd versions, the Lambdas are now worrying me too. The Acadia seems to continue the new GMC "big blob" look, and the Saturn looks to have about as boring and plain a profile as possible on such a vehicle. My last hope is the Enclave, which I'm praying for GM's sake is at last a design without excuses, or bizarre/plain detailing. A lot of this is styling, which can be subjective, but still very interesting points to say the least.

[Flybrian]

AND, if I might add, even though we've only seen camo'd versions, the Lambdas are now worrying me too.  The Acadia seems to continue the new GMC "big blob" look, and the Saturn looks to have about as boring and plain a profile as possible on such a vehicle.  My last hope is the Enclave, which I'm praying for GM's sake is at last a design without excuses, or bizarre/plain detailing.

[post="53579"]<{POST_SNAPBACK}>[/post]

You have to admit, most of that 'worrying' is purely psychological as we've seen little evidence as to what those vehicles actually look like.

[turbo200]

You have to admit, most of that 'worrying' is purely psychological as we've seen little evidence as to what those vehicles actually look like.

[post="53582"]<{POST_SNAPBACK}>[/post]

The evidence is in the products that have come before it. Are you fully satisfied with the Impala, Lacrosse, Lucerne, G6, Malibu?

For someone who has thier eyes open to the world, and is open-minded, then you will see that there are still many sacrifices in those vehicles, that ultimately make them lame ducks. Maybe it's psychological, but it's the old saying, fool me once shame on you, fool me twice shame on me. GM has fooled us too many times into thinking they were going to produce a car that could compete on the world level, no excuses.

[Croc]

I'm just curious as to how many of you have seen the Lucerne in person? It really looks great in person.

[91z4me]

You know it seems that a lot of people dumping on Rick Wagner and his performance don't really have their own arguments against him. Rather they recycle Jim's as their own. Also who would everyone suggest replacing Rick with? I don't think Lutz wants that much on his plate right now he is just in for the short term to ensure that the product channels are clear of iceburgs that can sink a program in its tracks, and to ensure that platforms are truely shared.

[Guest buickman]

I assure you marketing is the biggest problem at GM by far. Red Toe Tag is an insult. The commercials are about as stupid as anyone could come up with. GMS to everyone was a disaster, alienating dealers, costing business for many, many months following, damaging brands, and wasting hundreds of millions on advertising to erode image. I could go on for days with other examples... Wagoner is responsible for the loss of ten points of market share since becoming head of NA and over $50 Billion in shareholder value since becoming CEO. You think I have a personal vendetta? Look at the record. $4 Billion WASTED on Fiat. The man should go to prison! Look at the stock trail on that one. 32,000,000 shares of GM common to Fiat worth $4 Billion, written off. Fiat sells to Merrill Lynch for $1 Billion, whose chairman O'Neal sits on the GM board. Talk about Worldcom or Enron! Agian, I could go on for some time about corruption at GM... Tens of thousands now lose their jobs and many more are at risk. Communities suffer, pensioners wonder. I say throw the bum out as fast as possible. Institute marketing that works, sell some cars, make profit, increase shareholder value, and pay off some of the massive long term debt. Leave Wagoner in charge and kiss General Motors goodbye!

[Croc]

Oh please. Marketing isn't anywhere near the top of GM's biggest problems. The product is. No amount of excellent marketing would ever get me in a Pontiac showroom to look at a G6, Grand Prix or SV6. The products aren't just subpar, but handily outclassed by almost anything else in their respective segments. That's got to be fixed before the marketing blitzes can begin. And to fix that, GM needs to get its structural costs in check so that development can get more money that is currently being spent on treating union workers better than foreign dignitaries.

[Satty]

Car salesmen are the scum of the earth, why the hell would any company want to listen to the ideas a salesman has about improving the company? Especially when things like bad UAW contracts and retiree payouts and flat out sub-par cars aren't taken into acocunt. Can we PLEASE get Evok in here to rip this guys schtick to shreds again, I really like reading that. Effective marketing ony helps if it is for something people want to buy. Spending hundreds of millions of dollars on marketing wont do a goddamn thing if the cars being marketed aren't very good. You could have the most well laid out ad campaign, the most charming, convincing salesmen and all the crap you suggest, but it doesn't mean a thing if there is a better car for sale at the same price next door. Right now people are cheap and GM cars are, for the most part, not as good as the competitions, so incentives are the only way to move them to non-GM die-hards.

[Guest buickman]

Perception is reality and GM doesn't have it. Red Tag = Red Ink.

[Satty]

Perception is reality and GM doesn't have it. Red Tag = Red Ink.

[post="53631"]<{POST_SNAPBACK}>[/post]

So more ads are the answer? What is the content of these advertisments? Or are you just hoping to wear people down, get them tired of hearing it so they give in and buy a GM? The "Annoy them Into Cooperation" method sometimes gets women into bed, but it doesn't get someone to buy a car.

[balthazar]

I would have to consider myself 'out of the Buickman loop' in that I have not followed the details in... detail, but I have yet to read much more here in response other than personal differences with no specific point-by-point objections. If it can be shown that the proposal would indeed reduce marketing costs (and frankly, the millions stuffed into Tiger's and Martha's pockets has accomplished nothing), what is the specific reason to not try it? Anyone? Is there a better plan to address marketing on the table? No one is saying this is the 'be all, end all' solution, but if it fixes one problem area, that's one less problem area... get me?

[Satty]

No one is saying this is the 'be all, end all' solution, but if it fixes one problem area, that's one less problem area... get me?

[post="53637"]<{POST_SNAPBACK}>[/post]

Buickman is saying that. I wouldn't say Tiger was a really bad move, maybe keeping him so long wasn't a good move, but Martha was pretty bad. That money could have been spent on advertising that had more broad of an appeal, or on making cars worth advertising.

[Guest buickman]

Look at Nissan and Toyota ads. They promote image and lifestyle, features and benefits. GM pushes price and payment. There's your difference. My top three choices to replace Wagoner: 1. Carlos Ghosn 2. Tom Lasorda 3. Bob Lutz

[Satty]

Nissan ads tell me that I can get an Altima for $175month with $1500 down or that I can get a Titan for $275/month. Toyota has a reputation for building good cars. Gm needs to build a similar reputation by actually building good cars.

[Croc]

Look at Nissan and Toyota ads. They promote image and lifestyle, features and benefits. GM pushes price and payment. There's your difference.
My top three choices to replace Wagoner:
1. Carlos Ghosn
2. Tom Lasorda
3. Bob Lutz

[post="53641"]<{POST_SNAPBACK}>[/post]

...I have to compliment you on one thing: you are good at making soundbytes on the fly. That's why you are a good car salesman. Unfortunately, your blanket statements regarding Toyota, Nissan and GM ads is laughably false. THEY ALL PROMOTE EACH OF THOSE!

Bob Lutz as a Wagoner replacement? He'd drain GM financially. In two, maybe three years. See, there is a nice thing about having Lutz where he is and Wagoner where he is. Wagoner is in charge of running the company. Lutz is in charge of the product being designed. You put Lutz in charge of the company, and he will have a hard time saying "no" to budget overruns for the sake of better product. The two of them are very complimentary. They provide a sense of checks and balances. The bean-counters don't have too much power, yet neither do the designers and artists. You need that, though I am sure you will now try and tell me that companies don't need to be run, they just need a great 30-second spot that captures the lifestyles and passions of the consumers. :rolleyes:

[Guest buickman]

Don't confuse dealer, or dealer association, ads for those bought and paid for by the manufacturer. GM should let the franchisees pay for pushing price and instead focus on stabilitrack or Onstar, yet realize heated washer fluid isn't going to do much for southerners. We wasted millions on Dream Up, then changed to Beyond Precision, what an inconsistent bunch of nonsense, exactly what ruined Olds. Please understand I fully am aware that the product is central to our long term success. My point is that by changing the marketing we can make an immediate impact and save money in the process.

[Croc]

Don't worry, I wasn't confused.

[Guest buickman]

Why is GM's CEO Still Employed? Commentary by Terry Keenan for FOX Fan Central FNC Terry Keenan With 30,000 pink slips out there and counting, no doubt the crisis at GM has already become one of the top business stories of 2005. But absent from most of the coverage is any discussion of the mother of all pink slips for GM CEO Richard "Rick" Wagoner. In fact, it is most curious that given the level of carnage in rank-and-file positions, the endless sea of red ink, and the shareholder activism of the post-Enron era, that virtually no one has called for Mr. Wagoner's head, even as the bad news mounts day after day. In fact, the 52-year-old Wagoner seems exceedingly confident in his employment prospects. Just last week, he told reporters he has given "no thought" to the possibility of stepping down — this as GM stock continues to trade at levels not seen since 1992. That year should have special meaning to Wagoner and his fellow executives at Renaissance Center, for that was the year that GM’s outside directors finally ousted the former management in a successful attempt to avert bankruptcy. Luckily for Wagoner, his board doesn't seem nearly as impatient. And one look at the current board members explains why. It is littered with executives who fared no better than Wagoner in turning around their sick companies: former Compaq chief Eckhard Pfeiffer (remember him?), former Kodak CEO George Fisher and Percy Barnevik, the man who almost pushed Europe's ABB into the ground. Yet this is the "brain trust" Wagoner is relying on to help him with what is arguably the most difficult turnaround job in decades. What ever happened to the era of better corporate governance and accountability? To be sure, Wagoner was given a near-Herculean task to begin with when he took over the reigns at GM in 2000. Still, at virtually every turn it seems this GM management team made the wrong one — even on those rare occasions when the company was holding most of the chips — as was the case with the magnificently bungled auction of its coveted GM Hughes division. But it wasn't just the Hughes debacle, Wagoner also oversaw GM's disastrous investments in Fuji and Fiat, costing billions of dollars and the automaker's relentless reliance on SUV sales. One person surely trying to make sense of it all is billionaire investor Kirk Kerkorian. With 9.9 percent of GM's stock, he and his investment vehicle Tricinda have been curiously quiet of late. Don't expect that to last much longer. In the past, Kerkorian has been known to demand board representation in companies where he has a sizeable stake, and GM will not likely prove to be the exception. A board seat or two for Mr. Kerkorian and his cronies would surely be Rick Wagoner's worst nightmare. But perhaps a major shake-up of the board and the executive suite is the only medicine that can stop the bleeding at what was once the world's greatest manufacturer. -------------------------------------------------------------------------------- Terry Keenan is the anchor of Cashin’ In and an FNC business correspondent

[91z4me]

Look at Nissan and Toyota ads. They promote image and lifestyle, features and benefits. GM pushes price and payment. There's your difference.
My top three choices to replace Wagoner:
1. Carlos Ghosn
2. Tom Lasorda
3. Bob Lutz

[post="53641"]<{POST_SNAPBACK}>[/post]

Wait a moment lets decipher this to see if Jim has any idea what these people would do to GM, or if they would even take the job.

Ghosn, running Nissan right now and did a great job bringing it back from the brink. Pushed through 1 VERY flexible platform and took platform and parts sharing to new levels, VERY good at that. He also revamped Nissan/Infiniti's marketing to co-inside with what was in the show room. BUT there are serious questions if he can keep this going for very long, if at all. On the plus side he understand's product and that it is key. He may not be willing to take on GM as much as it has against it. Until he proves he can take a company all the way into the black for a long period of time he wouldn't get my vote.

Tom Lasorda, the baseball manager??? Are you just joking right now. Where are his degrees showing he understands enough about business to lead a multi national conglomeration the size of GM? What is his real world business experience? I guess you are going to play but he has worked with unions in the past card, right? UAW vs MLB player's union are 2 totally different animals.

Lutz while I think he could do the job lets face the facts: he is an older guy and won't be around forever we need someone to stick with it and be there for the company (think Bill Ford), he was brought in for short term and I think that is where he wants to stay (he wants to just work on product it is what he loves let him do it), and finally who is to say he could turn around GM? I know Bob has worked for almost every auto company under the sun and he has done a good or great job at each one but come on has he turned around a boat half as big as GM?

Keep them coming, Jim.