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Friday, November 25, 2005

GM Again

I am going to forego the continuation of the last post to bring more timely information about GM to the forefront.

I think it is well known that GM sells to fleet buyers. In a magazine I was perusing in the late 1980's, it was stated that this certain fleet buyer was getting 250,000 miles from their six cylinder Impalas. This is quite ironic considering the fact that GM was making "junk" at that time.

But I would like to address another issue. It is a fact that bean counting is an important factor in any business, especially public ones. But it doesn't forgive management for not giving every last resource to the products they make. When making automobiles engineering and manufacturing must take precedence. Everything matters when making these pieces of machinery that are no less than 10,000 pieces.

I think it would be unforgiveable for the engineers to hand out their plans for an auto over to manufacturing, only to have the designs compromised. And this would not be manufacturings fault. It is upper managements fault, for all decisions come from above.

Am I saying GM does this? NO, not anymore. But I think the complacency of management of the past in this corporation did. GM is now feeling the hangover from this and not many car consumers are giving GM THE CHANCE TO PROVE THEY ARE COMPETITIVE AND ARE MAKING FINE AUTOMOBILES TODAY AND NOW!

It is inevitable that GM would give large discounts again in the face of losing market share. It may cost now, but each one percent of automotive market share is equal to two billion dollars. This is something that this car company just cannot give up, even if it means much lower profit margins. It's called buying time. GM's products are equal or ahead of all, but as I said, it's hard to live down a bad reputation, and extremely hard to rebuild a good one.

How does a company try to win back a customer or win a new customer? Any way it can! First build the best possible product. GM is. Let customers know. GM is doing so. If all else fails, the first measure of getting people back in the showroom (and keeping market share) in a short period of time, is through the pocket book! Then when the automotive customer sees that GM's devotion to manufacturing an outstanding vehicle is there, then and only then will the automotive consumer return sans rebates and special offers.

There are very few American product manufacturers left. Automobiles is the "last vestage of hope" for the U.S. Yes, look at the competition, but do not forget GM, and you will not be dissappointed.

That is all.

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