GM says it 'disappointed' consumers

[AVANTI R5]

DETROIT (Reuters) -- General Motors today unveiled an unusually frank advertisement acknowledging it had "disappointed" and sometimes even "betrayed" American consumers as it lobbies to clinch the federal aid it needs to stay afloat into next monthhe print advertisement marked a sharp break from GM's public stance of just several weeks ago when it sought to justify its bid for a U.S. government on the grounds that the credit crisis had undermined its business in ways executives could never have foreseen.

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


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


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


In the ad, GM admits to other strategic missteps analysts and critics have said hastened its recent decline.
"We have proliferated our brands and dealer network to the point where we lost adequate focus on the core U.S. market," the ad said. "We also biased our product mix toward pick-up trucks and SUVs."


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


"Despite moving quickly to reduce our planned spending by over $20 billion, GM finds itself precariously and frighteningly close to running out of cash," the ad says.
A failure of GM would deepen the current recession and put "millions of job at risk," according to the ad, which also highlights the automaker's pledged restructuring and intention to begin repaying taxpayers in 2011.


GM spokesman Greg Martin said the ad was an attempt by the automaker to present "a pledge directly to the public."
"We believe we need to deliver this commitment unfiltered since quite a bit of media commentary has not kept pace with our actual progress to transform the company," Martin said.


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


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

http://www.autonews.com/apps/pbcs.dl...NA02/312089881

[AVANTI R5]

12345

Dear Mr. Moore:
Let me start by stating upfront that I'm a lifelong Michigander and a contract employee of General Motors. I should also add that, unlike many at GM, I have long been a fan of your work, the work of a man I had considered to be about truth, and truth-telling, even when it hurts, and hurts so bad it's funny in a pathetic sort of way.


On "Larry King Live" last week, you didn't tell the truth, and it left me flabbergasted. In your defense, I think you did it out of ignorance, not malice. But it was an untruth nonetheless, and one that will have very damaging ramifications for Detroit and for the nation.


When is the last time you were in a showroom of new GM products? Or Ford or Chrysler for that matter? I'd guess years, if not decades. And yet, you felt comfortable going on CNN and disparaging the current roster of cars and trucks from GM, calling them "crap," "the wrong vehicles," and implying that they're the same old garbage that no one wants to buy!


It was hugely irresponsible and couldn't have come at a worse time for our home state.


Yes, many of the products of the past were in fact garbage. I was a journalist for AutoWeek magazine through most of the '90s, and I drove every car and truck from every manufacturer on the planet, and the GM products were, with the exception of the Corvette, largely lousy.


However, Mr. Moore, this is 2008. Have you been in a new Chevrolet Malibu? It's better than anything Toyota or Honda has, gets better mileage, won North American Car of the Year, and is built by the UAW in America. Have you seen the Buick Enclave? Gotta be the best-looking crossover on the market, is selling like crazy, even though "no one" wants GM products, and is built by the UAW in Lansing. Have you driven a Cadillac CTS-V? Even the highly discriminating German press says it's the best-performing luxury sports sedan on the global market today. It's built by the UAW in Lansing.



The point is, whether you care to admit it or not, right now GM's product house is IN ORDER. It has the best lineup of cars and trucks, top to bottom, it has ever had. Honest to God. The influential automotive press, across the country and around the world, has realized it, and it is only a matter of time until the public does as well. The newest models had been selling well, and the restructuring already under way had been taking hold, and Wall Street had noticed. The stock price was $43 just a year ago. That's a sure sign that Wall Street approved of the changes in progress.


Then the credit market collapsed, and GM could get no financing to continue business, and most of its customers could get no loans to buy vehicles. And that is where things stand now.



Is the weak balance sheet at GM as compared to Toyota and others the fault of past mismanagement, poor products and legacy burdens, and at least partially self-inflicted? You betcha, as the governor of Alaska might say. Absolutely. The company, with an assist from the federal government (national health care, anyone?), bears some of the blame for putting itself in this precarious position. Is it to blame for the catastrophic events of THIS year? No. Wall Street is, and it's getting $700 billion in handouts, no questions asked. Wall Street executives flew down there in their own jets to get it and no one batted an eye.


Now the auto industry is in D.C., with its collective hand out, asking for a pittance by comparison -- $25 billion, in LOANS, not bailout money -- and getting hammered left and right and criticized on national TV because of it.


Your irresponsible comments will only fuel the fires of hatred that burn for the Big 3 and for Detroit. And since we all know that politicians don't put cream in their coffee without first consulting the polls, we know how this is going to go down.



America doesn't want to lend money to the auto industry, so Congress won't. And we'll all go down in flames here in Michigan. The UAW you claim to support so strongly will be SOL. Downtown Detroit, which has worked so hard at coming back, will be a literal ghost town, instead of the after-5 p.m. ghost town it largely is now. Restaurants, salons, shops, everything in southeast Michigan will close, and the ripple effect will begin, and spread across America, and it will be horrific. I don't see how to avoid it, if we don't get this bridge loan.



But I know what I'd like to see, and that is for you to go on TV or write a blog or say something somewhere that indicates you've seen GM's new vehicles. Test drive a Cadillac CTS and tell the UAW workers in Lansing what you think of the vehicle they work so hard to build. It may be the last one they get a chance to make.


It's that bad. And for the life of me, I can't figure out why the rest of America is so indifferent to the fate of our home state. Drop dead, they are telling us. Do you have any idea why? This isn't about helping the three CEOs you saw sitting on the witness bench on Capitol Hill; this is about keeping this region -- and ultimately this nation --from economic apocalypse.



I apologize for the long letter. This is fairly important stuff. The city and state I love are on the brink of becoming a wasteland. America can help us, but doesn't want to and doesn't care. Any idea how that feels?


Sincerely,


John


John Cortez is a former reporter for AutoWeek, a sister publication of Automotive News. He now is vice president of executive communications for Hass MS&L Public Relations, which does contract work for General Motors.

[Touge86]

Lets see, overly priced cars, boring body styles, the cobalt, bad gas consumption, close to no resale value and they seem surprised that all of this is happening?

[Mykl]

Originally Posted by Touge86

Lets see, overly priced cars, boring body styles, the cobalt, bad gas consumption, close to no resale value and they seem surprised that all of this is happening?

That was true ten years ago. Not so much now. GM has a good line of quality cars that are attractive to look at, sit in, and get great fuel economy. Problem is... nobody gives a crap. That's what happens when you sell garbage for so long.

If GM sticks around and continues to sell these quality vehicles, and improve upon them, I can easily see myself in one in a few years. The last one I test drove was a Cobalt SS, and I was *very* impressed with the car. I wouldn't think twice about purchasing it over *any* similarly priced imported sport compact.

Hell, I even considered trading my STi in on one. It goes just as fast and I get 100k mile powertrain warranty? Where do I sign up?

[Ghosthound]

didnt dissapoint me. its hard to get dissapointed when you already have such low expectations in a company.

[JuggernautTCW]

whats up with another round of bashing?... the new caddilac line-up is not disappointing (especially CTS) at all. The new Pontiac G8 looks very promising. Cobalt-SS outperforms any other sport compacts in its segment.

Obviously GM has a lot more to improve, especially in their Buick brand IMHO, but I think they have done a wonderful job in the past year or two when compared to what Subaru has done to their lineup - less than inspiring looks and same old engine and drivetrains from the last decade.

I really hope Americans will give GM another chance and put its bad reputation from the 90s behind them. This is like bashing the Chinese for their economy in 2008 when their economy has grown more than we did.

[Not-EWRX]

Originally Posted by JuggernautTCW

whats up with another round of bashing?... the new caddilac line-up is not disappointing (especially CTS) at all. The new Pontiac G8 looks very promising. Cobalt-SS outperforms any other sport compacts in its segment.

Obviously GM has a lot more to improve, especially in their Buick brand IMHO, but I think they have done a wonderful job in the past year or two when compared to what Subaru has done to their lineup - less than inspiring looks and same old engine and drivetrains from the last decade.

I really hope Americans will give GM another chance and put its bad reputation from the 90s behind them. This is like bashing the Chinese for their economy in 2008 when their economy has grown more than we did.

Buick is the HUGE in china. It's like their Rolls Royce.

[JuggernautTCW]

Originally Posted by Not-EWRX

Buick is the HUGE in china. It's like their Rolls Royce.

wait until they get caddilacs over there...

[AVANTI R5]

^^
It's sorta funny,We want their small miser cars and they want our Big soft/floaty guzzlers

[SubaruFan]

Originally Posted by AVANTI R5

^^
It's sorta funny,We want their small miser cars and they want our Big soft/floaty guzzlers

Actually the Caddie was a flop in Europe - two reasons too damn big - and milege that even made SUV's look Green. I haven't laughed so hard in my life when I stumbled onto a Caddie dealer in old town San Sebastian. The dealer only had enough floor space for two cars. That and if you bought one - there wasn't hardly a parking spot in the entire city you could fit it.

[Hites]

Originally Posted by AVANTI R5

^^
It's sorta funny,We want their small miser cars and they want our Big soft/floaty guzzlers

we want their death bubbles?

[AVOID92x]

Originally Posted by JuggernautTCW

wait until they get caddilacs over there...

wait until they hit 100K miles and begin to FAIL.

[Mykl]

Originally Posted by AVOID92x

wait until they hit 100K miles and begin to FAIL.

It's funny to see a new Honda owner say that. I've heard plenty of lovely things about the most recent batch of Civics. Apparently you guys aren't even forced to wait 100k miles before stuff starts to fail. Good on you.

[SCRAPPYDO]

Originally Posted by JuggernautTCW

whats up with another round of bashing?... the new caddilac line-up is not disappointing (especially CTS) at all. The new Pontiac G8 looks very promising. Cobalt-SS outperforms any other sport compacts in its segment.

Obviously GM has a lot more to improve, especially in their Buick brand IMHO, but I think they have done a wonderful job in the past year or two when compared to what Subaru has done to their lineup - less than inspiring looks and same old engine and drivetrains from the last decade.

I really hope Americans will give GM another chance and put its bad reputation from the 90s behind them. This is like bashing the Chinese for their economy in 2008 when their economy has grown more than we did.

Nope, sorry, three to five good vehicles do not earn my respect. They milked the SUV profit cow for 20 freaking years and did nothing to diversify. Do not ask me for a break or a loan now that its too late. Its called personal responsibility. I do not owe GM, Ford or Chrysler CRAP...

You mentioned the Malibu, Cobalt SS and CTS. I will see you those and raise you the

Base model Cobalt
Aveo
HHR
Impala

All ugly, all old looking from day one.

You want to talk trucks, okay, the trailblazer and equinox are but ugly, and look like they were built in the 90's.

...if GM, Ford, and Chrylser want my business, they have to earn it. Not just today, but for 20 years to come. They have to prove to me they have a vision of producing the best cars in the world, not just the most profitable. They spat on the US customer for darn near 20 years and now they expect us to say , "All is forgiven, here is my money". Nope. I want then to fell the pain of their own actions and reel in it. Agonize over what the greed did to them. Then after years of improvements, I may consider one of their products.

[Mykl]

Originally Posted by SCRAPPYDO

Nope, sorry, three to five good vehicles do not earn my respect. They milked the SUV profit cow for 20 freaking years and did nothing to diversify. Do not ask me for a break or a loan now that its too late. Its called personal responsibility. I do not owe GM, Ford or Chrysler CRAP...

You mentioned the Malibu, Cobalt SS and CTS. I will see you those and raise you the

Base model Cobalt
Aveo
HHR
Impala

All ugly, all old looking from day one.

You want to talk trucks, okay, the trailblazer and equinox are but ugly, and look like they were built in the 90's.

...if GM, Ford, and Chrylser want my business, they have to earn it. Not just today, but for 20 years to come. They have to prove to me they have a vision of producing the best cars in the world, not just the most profitable. They spat on the US customer for darn near 20 years and now they expect us to say , "All is forgiven, here is my money". Nope. I want then to fell the pain of their own actions and reel in it. Agonize over what the greed did to them. Then after years of improvements, I may consider one of their products.

That's the core issue with GM and the domestic manufacturers. Generally speaking, they put the cart before the horse. What I mean is this... if you buy a Civic or Corolla and you have a good ownership experience what are you inclined to do later on when you have more money and can afford something nicer? Go to a Honda/Acura or Toyota/Lexus dealership. GM/Cadillac or Ford/Lincoln are unknown quantities at that point, but you know you'll have a good experience if you go with what you know.

When the domestic companies figure this out, they'll be far better for it. Because their up-model cars are all very good and very nice. It's just that they're lacking in the small car department. The base Caliber, Focus, Aveo, and Cobalt are all pretty "meh." Nobody *wants* to own those cars.

[WRXBob]

Originally Posted by JuggernautTCW

whats up with another round of bashing?... the new caddilac line-up is not disappointing (especially CTS) at all. The new Pontiac G8 looks very promising. Cobalt-SS outperforms any other sport compacts in its segment.

Obviously GM has a lot more to improve, especially in their Buick brand IMHO, but I think they have done a wonderful job in the past year or two when compared to what Subaru has done to their lineup - less than inspiring looks and same old engine and drivetrains from the last decade.

I really hope Americans will give GM another chance and put its bad reputation from the 90s behind them. This is like bashing the Chinese for their economy in 2008 when their economy has grown more than we did.

^^^ Praising/thinking like this is the biggest problem to GM. To beat the competition, you have to be better, not also ran. It is funny that you mentioned the 90s. In the 90 GM tout their quality problem were in the 80s !! Last week I went to LA auto show, tried the Cadilac CTS, close the door and interior parts rattled; the door handle is made of 2 halve of plastics that flexed in my hand. The Colbalt ss interior is supper cheap feel. G8 interior is also low rent. Lately GM did a good job tunning sport car on the Ring, now fix the remaining parts of the car !!

[Touge86]

i ll agree that I like the g8 (commodore) the cts v and umm thats about it for now. i would drive those though. but like 2 or 3% of their cars are cool. the rest are not.

also the g8 is Australian regardless if gm owns them or not pontiac did not come up with that car.

[dc5guru]

It will take time/years to prove themselves again to the people. Either way, its too late for GM. The bailout saved them for the meantime. However, GM will still file for bankruptcy. Its a just a matter of time.

[jigga]

still my opinion that they stretch themselves and their designs too thin, and that is what people are beginning to see yet again..Steering wheel designs from an Escalade showing up on a Cobalt, odds and ends that are just too familiar from car to car, and just make the cars wreak of cost-cutting and being cheap. I think this is more what people are associating with lackluster quality, rather than the actual quality of the cars they are putting out.

I'm not against sharing platforms, but they make it too obvious, and that's my only beef with them, and I perceive it as lackluster quality and effort and almost sheer laziness from the company in general(even though they may be put together really well). If they want to share platforms, make the car something completely different in character/purpose where even a complete automotive dunce won't look at the two cars and be able to tell that they share most of their parts, even though they have different badges in front.

This likely comes down to the fact that GM just seem to have 'brands'... Those brands however don't really have their own personalities..Their brands should be distinct to the point that they do not have a leg to whine to management for their own version of the SAME car.

I like to think that the automotive consumer these days isn't so stupid that they can't see through it from a mile away.

Perhaps that is because they are sharing the same cars with different badges in front again..

One more example..

Everyone loves the Corvette..

However, would we love it the same way if there was a Pontiac version, Buick version, GMC version, Saturn version,Hummer version, [insert other GM brand here] of the same corvette with a different badge in front but pretty much the same silhouette? I don't think so...

Another example... I don't think in this universe we would see Mini's version of the BMW M3.. In GM's universe however, anything is possible if the dealer cry enough for one!

Again, make each brand so distinct that they stand on their own (even though owned by GM.

I guess the problem with General Motors at the end of the day is that they are just too general...

[CryderSpeed]

The big 3 can't go bankrupt fast enough. It's their only hope.

[Hondaslayer]

Don't care, too little too late.

[whoosh]

so how much of the bailout money did they use for this advertising?

[Ghosthound]

at the recent auto show in sacramento, GM had the largest display since they had cars from every "brand". Needless to say, it felt like you walked into the same exhibit in each of GMs rooms. Not only that, the fit and finish of the cars is lackluster. Even compared to toyota, mazda, VW, the quality of the fit and finish were years apart. as someone else mentioned, they used the same steering wheels, gauge clusters, door handles, you name it, on pretty much all of their cars. Plus now all gm cars have a small GM badge on regardless of the brand.

The only american cars there that i was impressed with were the Ford Flex, F150, and Corvette Zr1.

[Blitzkrieg]

Chevy has only one good thing going for it, The cruze. The interior looks great in the pictures, and the exterior is striking and fits into the company image (malibu). If chevy has brains they'll drop in the de-tuned 2.0 litter of the SS, the same in the upcoming saab. Make it an inexpensive model and then push the 260hp SS into the market after sales start to fall off. The base 2.0 litter turbo will sell like the European FORD st and then they can keep the SS even more hard core than the current model like the FORD RS.

BlitZ