GM headed backwards?

[OrangeFury]

Originally Posted by FenwickHockey65

Pfft. Everyone's using incentives. Plus average transaction prices are up across the board. It's definitely not something you want to rely on, but not uncommon to use.

And Liddell left because he wanted to be CEO and wasn't given the position.

Exactly, they all use incetives. And from the numbers I have seen, GM isn't even the worst offender. They aren't good for the brand or for resale value, but this is the game they all must play to move metal.

[kr juice 1]

Originally Posted by OrangeFury

Exactly, they all use incetives. And from the numbers I have seen, GM isn't even the worst offender. They aren't good for the brand or for resale value, but this is the game they all must play to move metal.

the moving metal mentality is everything that is wrong with gm(and all car companies). value needs to be built, gross profit must be held. the car business right now is just not doing that in general.

[BackinBlackSS/RS]

Originally Posted by coolman

I'll turn around in my seat then I should be fine.

Dude, you are a genius!!

[Cam2011]

Originally Posted by POWERFREAK

i would agree....BUT..."Smale's hand-picked North America president Ron Zarella championed the launch of the Pontiac Aztek, a dismal-selling SUV whose laughable styling brought it to a quick end."

Oh maybe we are looking forward to a 2015 Chevy Camaro Aztek edition (with tent included)?

[CloudXTC]

Originally Posted by Scott@Bjorn3D

Does it really matter, the world comes to an end next year.

lol

[Mr. Wyndham]

Originally Posted by Number 3

Ok, I'll give you my opinion based on the leadership messages I've head (that I can share) and some clarifications to the article.

Here is the article with my comments in BOLD:

Last fall, the road ahead looked smooth for General Motors.

Just over a year since it sank into government-run bankruptcy, a leaner, meaner automaker relisted its shares on major world stock exchanges, bursting back onto the investment scene with the world’s largest initial public offering.

Nothing has changed since then, just some people. Remember how 6 months or so ago it seemed Marketing had a new head every 6 weeks? That has settled down and you now see (at least I do) a cleaner, clearer picture of GM and it's core brands.

But just four months later some industry observers are expressing concern that the company's new driver, CEO Daniel Akerson, is unfamiliar with the car market terrain and could steer GM into a ditch.

Critics contend Akerson, a former telecommunications executive, is surrounding himself with agreeable subordinates from similar backgrounds, focusing too much on cost-cutting and relying heavily on incentives, such as rebates, to artificially inflate sales at the expense of profits and brand image.

He is surrounding himself with people that don't say, "it can't be done". He wants people to tell him, "here is what we have to do in order to be successfull", even if that is monumental, that's what he exects to hear. From his experience in telecom? Maybe. But he is now driving higher performance with higher expectations.

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Adding to the concern: The sudden departure this month of GM’s finance chief Chris Liddell after barely a year on the job. Liddell shepherded GM through its record $23 billion IPO last November, and his departure renewed concerns about GM’s stability and performance that many analysts had credited the automaker with having put behind it in recent months. The company has had four chief executives in the past two years.

As I heard it, Chris Liddell was supposed to get the CEO job. He didn't, Ackerson did and is staying. Would you stay if you were passed over for CEO and could go elsewhere and land that job? Yeah, you would too.

“I’ve seen this movie before, and it doesn’t end well,” longtime Detroit adman Peter Delorenzo said his blog, autoextremist.com.

Ummmmm, Peter, I read your stuff. Sometimes..............sometimes you are right. But I'm glad you've seen this before. Must mean this is one of those times.

Things have certainly looked upbeat for GM of late.

In the opening months of 2011 sales of GM’s cars and trucks have surged, as the company grabbed market share from its rivals, according to sales data from J.D. Power and Associates. That would appear to bode well for the company’s future, and with it, the potential for U.S. taxpayers to recover the remainder of their investment in the company.


So not quite buying it.

Thanks for the input, 3.

The way I see it -- Market Share shouldn't be the top concern. Building the best cars and trucks should be...and it seems to be. Every single release since...oh about ~07-08 has been a homerun, smash hit! Heck -- the Cruze is hundreds of units a month away from outselling the longtime compact champion, the civic.

That said -- there are still plenty skeptical and willing to dislike/overlook GM cars and trucks for no real good reason...as this article illustrates. How do you drive those people into dealers get them into one of your cars to change their minds? Be cheaper than the other guy! That's the only language some of these A-B car buyers understand...

I'd like to see incentives pulled back a little....but then I'm not an industry expert. And they are profitable...big time. So what's the issue?

[Alain]

looks like GM is screwed, again !!

[The_Blur]

GM builds the world's best cars at great prices. I don't see the problem.

[BackinBlackSS/RS]

Originally Posted by The_Blur

GM builds the world's best cars at great prices. I don't see the problem.

Yep, at this time I don't see a problem. They are making great cars. They just need to make sure they strive to improve all the time. Don't stand still. Keep the company hungry always looking for ways to be better. I almost got the feeling reading that, that they would relish in the demise of GM.

[Mr. Wyndham]

Originally Posted by BackinBlackSS/RS

Yep, at this time I don't see a problem. They are making great cars. They just need to make sure they strive to improve all the time. Don't stand still. Keep the company hungry always looking for ways to be better. I almost got the feeling reading that, that they would relish in the demise of GM.

Some people would. How sad is that?

[coolman]

They are building good cars and trucks right now ,but I do believe that they need to cut back on large incentives to sell cars. After all, if you sell twice as many cars as the other guy but you only make half as much per car ,then in the end you will have a harder time surviving. The big winner is the company that can sell the volume with the higher profit. I'm in business also and I can tell you, If I had my choice between less sales with a higher profit margin or volume with less margin, it would be the less is more every time. But like I said, having both is really what we all try to reach.
The only way well be able to gage if GM is truly back is to see them sell many cars with repeat customers without the large incentives. That way it will be pretty easy to say their cars are selling because they're great cars and not because their the cheapest deal.

[GoldBowtie]

Originally Posted by Number 3

Ok, I'll give you my opinion based on the leadership messages I've head (that I can share) and some clarifications to the article.

Here is the article with my comments in BOLD:

Last fall, the road ahead looked smooth for General Motors.

Just over a year since it sank into government-run bankruptcy, a leaner, meaner automaker relisted its shares on major world stock exchanges, bursting back onto the investment scene with the world’s largest initial public offering.

Nothing has changed since then, just some people. Remember how 6 months or so ago it seemed Marketing had a new head every 6 weeks? That has settled down and you now see (at least I do) a cleaner, clearer picture of GM and it's core brands.

But just four months later some industry observers are expressing concern that the company's new driver, CEO Daniel Akerson, is unfamiliar with the car market terrain and could steer GM into a ditch.

Critics contend Akerson, a former telecommunications executive, is surrounding himself with agreeable subordinates from similar backgrounds, focusing too much on cost-cutting and relying heavily on incentives, such as rebates, to artificially inflate sales at the expense of profits and brand image.

He is surrounding himself with people that don't say, "it can't be done". He wants people to tell him, "here is what we have to do in order to be successfull", even if that is monumental, that's what he exects to hear. From his experience in telecom? Maybe. But he is now driving higher performance with higher expectations.

Loading stock quotes…
Index Last Change
GM 31.16 +0.42
+1.37%
Quotes delayed 15+ min.
Stock search
Adding to the concern: The sudden departure this month of GM’s finance chief Chris Liddell after barely a year on the job. Liddell shepherded GM through its record $23 billion IPO last November, and his departure renewed concerns about GM’s stability and performance that many analysts had credited the automaker with having put behind it in recent months. The company has had four chief executives in the past two years.

As I heard it, Chris Liddell was supposed to get the CEO job. He didn't, Ackerson did and is staying. Would you stay if you were passed over for CEO and could go elsewhere and land that job? Yeah, you would too.

“I’ve seen this movie before, and it doesn’t end well,” longtime Detroit adman Peter Delorenzo said his blog, autoextremist.com.

Ummmmm, Peter, I read your stuff. Sometimes..............sometimes you are right. But I'm glad you've seen this before. Must mean this is one of those times.

Things have certainly looked upbeat for GM of late.

In the opening months of 2011 sales of GM’s cars and trucks have surged, as the company grabbed market share from its rivals, according to sales data from J.D. Power and Associates. That would appear to bode well for the company’s future, and with it, the potential for U.S. taxpayers to recover the remainder of their investment in the company.


So not quite buying it.

I sure hope you're right, 3. We're counting on you current (GM) guys to keep the product flame going. I just wish I would read less of Lt. Dan's quotes ---- he's starting to remind me of Roger Smith I like the style that doesn't keep telling me what he's gonna do ---- he just does it!

[WhiteCrane]

Those incentives are necessary to sell their cars. People are AFRAID of buying American cars now-a-days thanks to the absolute trash (uncompetitive, but reliable) GM and Ford were selling in the 90's.

They HAVE a great product now. They need to offer it at a competitive price or they will fail again.

[DGthe3]

Going to drive used car prices down eh? Aren't a lot of people complaining that used car prices are too high anyway? I see this as a sign that the industry may be hitting a tipping point, where the price of used cars has gotten so high that it makes more sense to simply buy new. I would expect GM to try and take advantage of such a situation ... if they can do so profitably.

Also, I would think that incentives are a lot more affordable for GM than they were a few years ago. The cost of labour has gone down substantially while the value of their product has gone up. So its not as bad as it once was. It also depends on what they're spending money on.