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5/12/2005

GM’s Game Plan – Bob Lutz Reveals All . . . Well, Not Exactly.

Filed under: — GM Guy @ 3:15 pm

In his latest post at the GM blog, Fastlane, Vice Chairman Bob Lutz gives us as much information as possible in a frank look at the General’s upcoming game plan for getting out of its current troubles.

A good and fair question. Let’s start by saying there’s no magic bullet for our issues, at least none that we’ve uncovered. The truth is we’ve spelled out in several forums and in several media interviews what we intend to do to address the challenges we face. What we won’t tell you is exactly how we intend to do those things.

I can tell you this: First and foremost, our recovery is riding squarely on the back of our new product programs. There has never been a turnaround in this industry that didn’t happen because of hot-selling cars and trucks.

Fair enough. At least it’s clear that they understand that no amount of corporate money jockeying or aquisitions or sell-offs is going to fix GM. It’s all about the product! And we mean ALL about the product: the actual physical entitiy itself, the dealership experience, the warranty experience and the long-term service. But first, they do have to get the vehicles right.

My wife and I just “bought” an ‘05 Envoy, 2WD short wheelbase with the straight 6. Interesting SUV, great motor. We were able to buy instead of lease due to heavy incentives and a great interest rate from our federal credit union (cheaper payment than using the free GM money due to the additional $3K in rebate). Being able to get a total of eight grand off the MSRP on a vehicle that was manufactured less than three weeks before its purchase indicates that GM knows they are not pricing vehicles correctly. I hope that they figure this out fast, and fix it. What a marketing coup they would have if the Envoy would have stickered closer to what we actually paid for it!

Also great would be a no-haggle pricing policy for all GM brands, like now exists with Saturn. They almost lost the Envoy sale to a Chrysler Pacifica due to our LA CarMax dealer and its no-haggle policy. Most people just hate that part of car buying, and if you didn’t feel like you were getting hosed everytime you bought or leased a vehicle, I’m betting folks would be willing to do it more often. I know that we would.

BTG Motoring, for all your car, truck or SUV parts and accessories

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