GM - Cost Cutting is Done, Focus is Now Back on Design

http://www.msnbc.msn.com/id/16100245/


GM exec says focus is now back on design
Cost cutting done, Wagoner says automaker has to return to product

STERLING HEIGHTS, Mich. - General Motors Corp. is moving past the cost cuts of 2006 to transform itself into a company that puts car and truck design above everything, company officials said Thursday night.

At GM's Heritage Center in suburban Detroit, Chairman and Chief Executive Rick Wagoner said the world's largest automaker is focused on becoming the world leader in design.

"We want you to see first here that we at GM are obsessed about making our cars and trucks leaders in design," he said.

Wagoner also touted the progress of the company's restructuring efforts, which he said have cut $9 billion in annual structural costs while raising quality.

GM has lost $3.03 billion in the first nine months of this year after losing $10.6 billion last year.

Pete Hastings, an auto industry bond analyst with Morgan Keegan & Co. Inc. in Memphis, Tenn., said GM clearly is making progress, especially compared with its poor performance in 2005.

"I think they have done a nice job with the turnaround plan," he said. "They've moved aggressively on it this year. They have justification to make those kinds of claims."

But Hastings said it's too soon to say GM has recovered, with predictions of flat U.S. auto sales next year and looming contract talks with the United Auto Workers union.

"It's premature to claim victory at this point, but they've made some good strides," he said. "Let's see if the economy cooperates in 2007."

Hastings said GM may not have seen the end of its sales slide, and end-of-the-year numbers may be misleading.

"I'm not sure that they're entirely there," he said. "They're helped by some easy comparisons last year in November and December," when sales lagged after inventories had been cleaned out by summertime incentives.

They're designs are starting to look good too. They went from the bottom of the barrel to the top of the domestics. Ford and DC still have a ways to go to match GM's new offerings.

I agree, cars like the Saturn Aura & Buick Lucerne (2 differant makets/buyers) are leaps & bounds ahead of the respective cars they replaced.
Plus you have the turn around of Cadillac; from a disaster to a money making organization.

GM does have a chance

.... Keeping my fingers crossed

GM will make it. I see the promise all around the D. They are hiring engineers and that is always good. Ford looks to be better but they are not nearly as good as GM. Some of the new for designs like the Fairlane looks cool but GM is still heading in the right direction.

Cost Cutting is Done

Read: Commence frivolous spending!

You know they will...

Well if you want alot of discussion on the Big 2.5 and their chances of survival check out teh Deathwatch series on www.thetruthaboutcars.com

I have to agree GM's lineup is looking better. I look forward to the Chevy Camaro in 08/09.

When they interviewed Bob Lutz in one of the shows (the thread is somewhere in this forum)/ he mentioned GM's focus will switch to design and no more cost cutting will take place.

At least they're sticking to their story :)

:applause:

There are hints of proof of this already with some of the newer cars coming out, and lots more of some other concepts that GM has shown.

Crossing fingers that the new Camaro is more than just a cheap car with a big motor... but an actual well-built, high-style, fast car that can compete with even the likes of BMW and Infiniti on all levels - not just on speed and price, but also on quality and fit and finish and durability.

:applause:

There are hints of proof of this already with some of the newer cars coming out, and lots more of some other concepts that GM has shown.

Crossing fingers that the new Camaro is more than just a cheap car with a big motor... but an actual well-built, high-style, fast car that can compete with even the likes of BMW and Infiniti on all levels - not just on speed and price, but also on quality and fit and finish and durability.

Let's not put the car before the horse. If the Camaro is that good it will price itself right out of its target market. If its that good, it will compete with the vette price wise... not gonna happen.

I'm not sure in my mind that the GM designs were the biggest problem. I don't care how good the design is if the execution and build quality is poor then you have gained less than nothing. GM owners have very well reflected their problems with GM in CR. Just look at all the black dots.

Considering the recent history of GM's "announcements", I'm more than just skeptical, I just don't believe. As they say, the proof is in the pudding.

I'm not sure in my mind that the GM designs were the biggest problem. I don't care how good the design is if the execution and build quality is poor then you have gained less than nothing. GM owners have very well reflected their problems with GM in CR. Just look at all the black dots.

You are right... cuz even production car abortions like the Aztek looked pretty damn decent when they were still concepts. GM's biggest problem has always been execution - and letting the bean counters penny-pinch their cars to death... I just take it that this announcement means that management won't let that happen now.

We can only hope.

GM ***** up bad. For decades they had the crown and pissed it away. I mean I even had a Chevy (87 Sprint Turbo, What an Awesome Car)With so many colobarations all over the world the perfect platform was at their disposal. For gods sake they used to have a share in Subaru and couldnt even get that right. What do they do they release? The Sabb 9-2x. Remeber the 9-2x ads?I sure as hell dont but I bet they showed the 9-2 driving on a cloud or something stupid about Sabb designing planes.

All GM has to do is bring over cars like they already have in Europe and Australia. I mean Holden alone has pretty impressive cars. Big Body RWD V8 is what GM should stick to.

I mean Holden alone has pretty impressive cars. Big Body RWD V8 is what GM should stick to.

the raging success of the most recent incarnation of the GTO springs immediately to mind .....

I'll never understand people, especially the new crop of "car enthusiasts."

Guess what? Your market share in the new car market is just about zero. You're not buying new cars, so why should they make what you think they should make? And guess what? Once you do get the buying power to become part of their target demographic, you'll probably want something more along the lines of this:

http://teachmefinance.com/Statistics/Fuel_Mileage/2006/2006%20PONTIAC%20GRAND%20PRIX%204-DOOR%20SEDAN.JPG

I'll never understand people, especially the new crop of "car enthusiasts."

Guess what? Your market share in the new car market is just about zero. You're not buying new cars, so why should they make what you think they should make? And guess what? Once you do get the buying power to become part of their target demographic, you'll probably want something more along the lines of this:


Nobody wanted a Grand Prix... they settled for it b/c it was cheap and had a ton of incentives on it.

Nobody wanted a Grand Prix... they settled for it b/c it was cheap and had a ton of incentives on it.

+1
:lol: I've never heard anyone say they wanted a Grand Prix. Ever! People I know that have them, tell me how they stole it from the dealership.

I've met one, she FREAKS if she goes over 3k on an oil change, doesn't drive over 10 mph on "bumpy roads" (things I take a speed - which is posted 45 mph) and leaves the paper floor mats in that she gets with the oil change for months at a time. I think she's going to cry when she figures out how little resale value her car has, despite all her best efforts.

I'm not sure in my mind that the GM designs were the biggest problem. I don't care how good the design is if the execution and build quality is poor then you have gained less than nothing. GM owners have very well reflected their problems with GM in CR. Just look at all the black dots.

"Build quality" IS a design problem. You can design a car, the parts fabrication process and the build process so that the parts are produced and assemble with self-adjusting, tight tolerances, or you can design the car and build process so that machine operator and assembler skill is the largest factor in hitting allowable tolerances. GM has traditionally chosen the latter. The Japanese choose the first (and yet they learned how from an American).

All GM has to do is bring over cars like they already have in Europe and Australia. I mean Holden alone has pretty impressive cars. Big Body RWD V8 is what GM should stick to.

Pssst...GTO :)

I've met one, she FREAKS if she goes over 3k on an oil change, doesn't drive over 10 mph on "bumpy roads" (things I take a speed - which is posted 45 mph) and leaves the paper floor mats in that she gets with the oil change for months at a time. I think she's going to cry when she figures out how little resale value her car has, despite all her best efforts.

lol yeah... Or replacing every part out of the car like engine or Tranny, To only find out that your $10,000 your car is only worth $2,800

The Sabb 9-2x. Remeber the 9-2x ads?I sure as hell dont but I bet they showed the 9-2 driving on a cloud or something stupid about Sabb designing planes.

.

this made me lol :lol:

I'll stick with quality. Can't shine a turd in my book.

Pssst...GTO :)


True but the Holden just looks meaner.

the raging success of the most recent incarnation of the GTO springs immediately to mind .....


Its all in the marketing. GM seriously has the worst and when I mean worst I mean "The Worst" marketing department ever created. These guys could make Playboy Magazine unnapelaing. If I recall corectly the new GTO ads were bad . I think they were the ones where the GTO would be in a cloud of smoke and they had some stupid phrase like "Smoking is Bad for your Health". Wow that looked really cool

I'll never understand people, especially the new crop of "car enthusiasts."

Guess what? Your market share in the new car market is just about zero. You're not buying new cars, so why should they make what you think they should make? And guess what? Once you do get the buying power to become part of their target demographic, you'll probably want something more along the lines of this:

Our market share might be small, but our influence isn't. Guess who all my friends come and talk to when they want a new car? I'm sure other people experience the same. Just because people end up buying a family sedan doesn't mean they don't know what a decent car is.

Its all in the marketing. GM seriously has the worst and when I mean worst I mean "The Worst" marketing department ever created. These guys could make Playboy Magazine unnapelaing. If I recall corectly the new GTO ads were bad . I think they were the ones where the GTO would be in a cloud of smoke and they had some stupid phrase like "Smoking is Bad for your Health". Wow that looked really cool
It's all budgeting the same people that created those bad GTO spots also brought Cadillac back from the dead. What is the difference they had good product, designs and budgets at Caddy. Do you think Pontiac has the same resources? People blame "Marketing" for when things don't go well. What will bring GM back to life is not "marketing" it's having things to market that will.

The GTO rocked but it looked like a 2 door early 90s Taurus SHO. The marketing department did something different with the GTO the raced it, hell they even drifted with it. Pontiac was one of the first US car makers in drifting. Sorry if the weak print adds you didn't like they were trying to dump marketing into wining the Rolex 24, they try pulling the enthusiast in that way rather than the typical print and TV adds. I thought the GTO was great thing not a sexy looking car but sexy performance so lets go race it to show how great it is rather than the typical pics in mags.

The worst marketing would not be GM it would be Ford hands down. They are so plain they are milk and white bread.

It's all budgeting the same people that created those bad GTO spots also brought Cadillac back from the dead. What is the difference they had good product, designs and budgets at Caddy. Do you think Pontiac has the same resources? People blame "Marketing" for when things don't go well. What will bring GM back to life is not "marketing" it's having things to market that will.

The GTO rocked but it looked like a 2 door early 90s Taurus SHO. The marketing department did something different with the GTO the raced it, hell they even drifted with it. Pontiac was one of the first US car makers in drifting. Sorry if the weak print adds you didn't like they were trying to dump marketing into wining the Rolex 24, they try pulling the enthusiast in that way rather than the typical print and TV adds. I thought the GTO was great thing not a sexy looking car but sexy performance so lets go race it to show how great it is rather than the typical pics in mags.

The worst marketing would not be GM it would be Ford hands down. They are so plain they are milk and white bread.

Yes Ford is boring. they should just have billboards that say.
http://img466.imageshack.us/img466/6285/forddj0.jpg

True GM raced it and it actually did very well but GM was trying to attract a specific buyer with that car, The Old Man who wants a Corvette but cant get one. I worked at RK Sport for a while (MFG and distributes parts for GM vehicles) so I know what kind of customer the GTO had he was usually in his early 40's. Kinda nostalgic. Personally I liked the car it drove great and had awesome power.
Cadillac on the other hand had a great car or should I say SUV. However the Escalade's success was no thanks to their marketing. In fact it was the DUB Magazine, Hip Hop Stars, Athletes that marketed the car. Good looking luxurious truck. GMwas proabably going after the Preppie crowd (no offence if there are any here) but just got lucky call it a case of dumb luck!