Dear General Motors, (1 Viewer)

[BR33ZE]

I am your consumer. I have a few simple ideas that cost you almost nothing and will help you sell more cars this year.

1. Improve the car buying experience

a. Start with clearer straight forward pricing. The game of having a vehicle with an MSRP of $35k, but then depending on which dealer you go to you might be able to buy the vehicle anywhere between $25k to $30k depending on your negotiating skills and how far you are willing to drive has to end. It is too much of a hassel.

b. Stop the dealers hard sell tactics on extended warranties, undercarriage rust proofing, seat scotch guarding, etc. Asking if people are interested in extended warranties is fine, but don't try to shove them down peoples throats. When the customer says "Not interested," move along.

c. Stop the dealers from putting those awful looking dealer tags or stickers on the backs of peoples cars. They make your cars look bad.

2. Stop preloading all your highest selling vehicles with OnStar and XM satellite radio. This will immediately lower the cost of these vehicles to the consumer which should help you sell more. Not everyone wants OnStar on their car/truck/ or SUV. It's not a tire. You don't need it on every vehicle. Stop forcing it on every one of your buyers.

3. When you say that the key to the GM turnaround is "Focusing on the Consumer," mean it. And follow through with it. Don't have this be just another ad campaign with no follow through.

 

[QUEZILLA]

I am your consumer. I have a few simple ideas that cost you almost nothing and will help you sell more cars this year.

1. Improve the car buying experience

a. Start with clearer straight forward pricing. The game of having a vehicle with an MSRP of $35k, but then depending on which dealer you go to you might be able to buy the vehicle anywhere between $25k to $30k depending on your negotiating skills and how far you are willing to drive has to end. It is too much of a hassel.

b. Stop the dealers hard sell tactics on extended warranties, undercarriage rust proofing, seat scotch guarding, etc. Asking if people are interested in extended warranties is fine, but don't try to shove them down peoples throats. When the customer says "Not interested," move along.

c. Stop the dealers from putting those awful looking dealer tags or stickers on the backs of peoples cars. They make your cars look bad.

2. Stop preloading all your highest selling vehicles with OnStar and XM satellite radio. This will immediately lower the cost of these vehicles to the consumer which should help you sell more. Not everyone wants OnStar on their car/truck/ or SUV. It's not a tire. You don't need it on every vehicle. Stop forcing it on every one of your buyers.

3. When you say that the key to the GM turnaround is "Focusing on the Consumer," mean it. And follow through with it. Don't have this be just another ad campaign with no follow through.

It took my poor grandfather hours before he could figure out who was talking to him in his new Silverado.

 

[Sinn Fein]

I am your consumer. I have a few simple ideas that cost you almost nothing and will help you sell more cars this year.

1. Improve the car buying experience

a. Start with clearer straight forward pricing. The game of having a vehicle with an MSRP of $35k, but then depending on which dealer you go to you might be able to buy the vehicle anywhere between $25k to $30k depending on your negotiating skills and how far you are willing to drive has to end. It is too much of a hassel.

b. Stop the dealers hard sell tactics on extended warranties, undercarriage rust proofing, seat scotch guarding, etc. Asking if people are interested in extended warranties is fine, but don't try to shove them down peoples throats. When the customer says "Not interested," move along.

c. Stop the dealers from putting those awful looking dealer tags or stickers on the backs of peoples cars. They make your cars look bad.

2. Stop preloading all your highest selling vehicles with OnStar and XM satellite radio. This will immediately lower the cost of these vehicles to the consumer which should help you sell more. Not everyone wants OnStar on their car/truck/ or SUV. It's not a tire. You don't need it on every vehicle. Stop forcing it on every one of your buyers.

3. When you say that the key to the GM turnaround is "Focusing on the Consumer," mean it. And follow through with it. Don't have this be just another ad campaign with no follow through.

1. This is a dealer issue, not a GM issue - Pricing is out of the OEM's hands. They sell the cars to the dealers - who then set their own pricing.(as for c. I think there is a valid class action suit that could stop that - simply sue the dealer for the advertising value it receives from the tags/stickers.) Last two cars I bought I had the dealer remove the sticker before delivery.

2 - I am guessing this is a contractual obligation. Maybe they can get rid of it in bankruptcy - but I would guess they keep this one.

3 - See 1. OEMs have very little control over the consumer buying process - they are limited to the vehicles they design and market, everything else is left to the local dealer.

 

[Ditkaless Wonders]

I dig that dealers will place the free advertising on your vehicle and then try to get you to pay for it by calling that function dealer prep and handeling.

 

[BR33ZE]

I am your consumer. I have a few simple ideas that cost you almost nothing and will help you sell more cars this year.

1. Improve the car buying experience

a. Start with clearer straight forward pricing. The game of having a vehicle with an MSRP of $35k, but then depending on which dealer you go to you might be able to buy the vehicle anywhere between $25k to $30k depending on your negotiating skills and how far you are willing to drive has to end. It is too much of a hassel.

b. Stop the dealers hard sell tactics on extended warranties, undercarriage rust proofing, seat scotch guarding, etc. Asking if people are interested in extended warranties is fine, but don't try to shove them down peoples throats. When the customer says "Not interested," move along.

c. Stop the dealers from putting those awful looking dealer tags or stickers on the backs of peoples cars. They make your cars look bad.

2. Stop preloading all your highest selling vehicles with OnStar and XM satellite radio. This will immediately lower the cost of these vehicles to the consumer which should help you sell more. Not everyone wants OnStar on their car/truck/ or SUV. It's not a tire. You don't need it on every vehicle. Stop forcing it on every one of your buyers.

3. When you say that the key to the GM turnaround is "Focusing on the Consumer," mean it. And follow through with it. Don't have this be just another ad campaign with no follow through.

1. This is a dealer issue, not a GM issue - Pricing is out of the OEM's hands. They sell the cars to the dealers - who then set their own pricing.(as for c. I think there is a valid class action suit that could stop that - simply sue the dealer for the advertising value it receives from the tags/stickers.) Last two cars I bought I had the dealer remove the sticker before delivery.

2 - I am guessing this is a contractual obligation. Maybe they can get rid of it in bankruptcy - but I would guess they keep this one.

3 - See 1. OEMs have very little control over the consumer buying process - they are limited to the vehicles they design and market, everything else is left to the local dealer.

I don't think this is true, but if it is, then yes, GM is screwed.But again, I don't think it is true.

 

[DaVinci]

Shouldn't you be directing this advice to Obama?

 

[The Noid]

As already mentioned, 1a, b, and c are all dealer specific, not GM specific. I just bought a GM (Buick Enclave) last weekend and to address those 3 things:

a. Some dealers were more willing to sell their stock at lower prices than others. That's just true of any dealer, regardless of automaker.

b. I didn't get a hard sell on any of that. Politely said no and asked for the extended warranty pricing to take with me to consider and compare to other places where you can buy a warranty. They were very accommodating.

c. I requested, and they removed, the dealer decals. My wife has always had dealers do this when she buys a car, without any problem.

As for #2, they have to compete. If other manufactures are including satellite radio, why would they stop? It's not going to impact the price for the car that much on the bottom line and only serve to put it at a competitive disadvantage for people who want it or at least find comfort in knowing they have the option to use those things, should they ever decide, without having to add after market things.

And for #3, it remains to be seen how much they follow-through, but a lot of that perception will be dependent on the dealers. They reflect the most on the manufacturer. So cutting poor-performing dealerships or those with low customer satisfaction results will go a long way in addressing it.

There's a ton of things GM did wrong to get themselves here, but none of things you listed are really in that category. Things like having 4 versions of the same car, across 4 different brands, come to mind.

 

[BR33ZE]

As for #2, they have to compete. If other manufactures are including satellite radio, why would they stop? It's not going to impact the price for the car that much on the bottom line and only serve to put it at a competitive disadvantage for people who want it or at least find comfort in knowing they have the option to use those things, should they ever decide, without having to add after market things.

I'm fine with them putting OnStar and Satellite Radio on some of their vehicles. My question is why on some models do they put it on every vehicle? I could be wrong on this, but adding OnStar to a vehicle adds over $1k in cost of the vehicle. Make some without it for those who don't want it. Not a hard fix here.As for your dealer experience, I'm glad you had a good one. I still have no idea why you have to request that they not add a dealer tag to the back of your car. It looks bad. It looks junky. It makes no sense for them to devalue the cars they sell like this. It seems like a quick logical fix to me that again costs them nothing to put better looking cars on the road.

 

[Leroy Hoard]

There's a ton of things GM did wrong to get themselves here, but none of things you listed are really in that category. Things like having 4 versions of the same car, across 4 different brands, come to mind.

They seem to be condensing their brands, first Olds and now Pontiac will be gone. Chevy cars, Caddy sedans & GMC trucks are all they really need.

 

[The Big Guy]

As for #2, they have to compete. If other manufactures are including satellite radio, why would they stop? It's not going to impact the price for the car that much on the bottom line and only serve to put it at a competitive disadvantage for people who want it or at least find comfort in knowing they have the option to use those things, should they ever decide, without having to add after market things.

I'm fine with them putting OnStar and Satellite Radio on some of their vehicles. My question is why on some models do they put it on every vehicle? I could be wrong on this, but adding OnStar to a vehicle adds over $1k in cost of the vehicle. Make some without it for those who don't want it. Not a hard fix here.As for your dealer experience, I'm glad you had a good one. I still have no idea why you have to request that they not add a dealer tag to the back of your car. It looks bad. It looks junky. It makes no sense for them to devalue the cars they sell like this. It seems like a quick logical fix to me that again costs them nothing to put better looking cars on the road.

I thought that because it becomes a revenue stream for them after the fact. Wouldn't GM get paid a piece of the action for every Satellite and OnStar subscription that is done after the trial period is over? Every other company gets good money for selling services, that is why every electronics store sells their cell depts so hard, it is the biggest profit generator under the roof, they will sell those free phones all day, making coin off of Verizon/Sprint etc.

 

[BR33ZE]

There's a ton of things GM did wrong to get themselves here, but none of things you listed are really in that category. Things like having 4 versions of the same car, across 4 different brands, come to mind.

My list wasn't a list of things they did wrong. If it were, we'd be here all day posting things like this:LINK A

LINK B

My list was intended to be a quick way to help them sell cars right now without costing very much to do so.

If you are telling me they can't fix how their dealers sell their cars, then there is a problem with the car buying model. And if now is not the time to fix that problem, then when?

I'm fairly certain that GM can impact how their dealers sell their vehicles right now just based on the fact that they have the power to close dealerships. Sounds like they could motivate some people with that.

Also, if manufacturers have no influence on dealers, why do Lexus, BMW, Jaguar finish at the top of dealer approval ratings?

 

[tdoss]

You want to improve the carbuying experience overall? You want something revolutionary that'll put GM back on the map and cause everyone else to have to rethink their business model?

Do these things:

1. Create cars that people want...I was walking out to my car yesterday and saw a Corvette Stingray sitting in the lot. That car STILL turns heads...after all these years. Remember when cars had style and were works of art? Now they're all gray sihtboxes with plastic all around. Get back to what made American cars so cool to own and are still sought after commodities. You can't convince me that it can't be done and done well and still be affordable like it was back in the day.

2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.

3. Redo all labor agreements...tie it into profits only. You make a decent base salary and as the company becomes successful...so will it's employees...things get tough and the employee's salaries will drop back down to around the base salary. No more agreements years in advance that always go up some ridiculous rate every year. Just tie it directly into the bottomline. I'm sure there's a lot of unemployed workers out there willing to take that deal.

 

[Philo]

How do these suggestions guarantee Obama get's Michigan's electoral votes in 2012?

 

[The Noid]

As for #2, they have to compete. If other manufactures are including satellite radio, why would they stop? It's not going to impact the price for the car that much on the bottom line and only serve to put it at a competitive disadvantage for people who want it or at least find comfort in knowing they have the option to use those things, should they ever decide, without having to add after market things.

I'm fine with them putting OnStar and Satellite Radio on some of their vehicles. My question is why on some models do they put it on every vehicle? I could be wrong on this, but adding OnStar to a vehicle adds over $1k in cost of the vehicle. Make some without it for those who don't want it. Not a hard fix here.As for your dealer experience, I'm glad you had a good one. I still have no idea why you have to request that they not add a dealer tag to the back of your car. It looks bad. It looks junky. It makes no sense for them to devalue the cars they sell like this. It seems like a quick logical fix to me that again costs them nothing to put better looking cars on the road.

There's no downside for the dealer to put it on there. If someone thinks it's junky and asks to have it taken off, it takes a minute. But for the hundreds of others that don't ask to have it taken off, it's free advertising. Same with license plate holders with the dealer's name. Takes a minute to take off, but worth the free advertising. It's not like they are permanently painting a swastika on the car.

 

[Johnnymac]

You want to improve the carbuying experience overall? You want something revolutionary that'll put GM back on the map and cause everyone else to have to rethink their business model?Do these things:1. Create cars that people want...I was walking out to my car yesterday and saw a Corvette Stingray sitting in the lot. That car STILL turns heads...after all these years. Remember when cars had style and were works of art? Now they're all gray sihtboxes with plastic all around. Get back to what made American cars so cool to own and are still sought after commodities. You can't convince me that it can't be done and done well and still be affordable like it was back in the day.2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.3. Redo all labor agreements...tie it into profits only. You make a decent base salary and as the company becomes successful...so will it's employees...things get tough and the employee's salaries will drop back down to around the base salary. No more agreements years in advance that always go up some ridiculous rate every year. Just tie it directly into the bottomline. I'm sure there's a lot of unemployed workers out there willing to take that deal.

 

[BR33ZE]

As for #2, they have to compete. If other manufactures are including satellite radio, why would they stop? It's not going to impact the price for the car that much on the bottom line and only serve to put it at a competitive disadvantage for people who want it or at least find comfort in knowing they have the option to use those things, should they ever decide, without having to add after market things.

I'm fine with them putting OnStar and Satellite Radio on some of their vehicles. My question is why on some models do they put it on every vehicle? I could be wrong on this, but adding OnStar to a vehicle adds over $1k in cost of the vehicle. Make some without it for those who don't want it. Not a hard fix here.As for your dealer experience, I'm glad you had a good one. I still have no idea why you have to request that they not add a dealer tag to the back of your car. It looks bad. It looks junky. It makes no sense for them to devalue the cars they sell like this. It seems like a quick logical fix to me that again costs them nothing to put better looking cars on the road.

There's no downside for the dealer to put it on there. If someone thinks it's junky and asks to have it taken off, it takes a minute. But for the hundreds of others that don't ask to have it taken off, it's free advertising. Same with license plate holders with the dealer's name. Takes a minute to take off, but worth the free advertising. It's not like they are permanently painting a swastika on the car.

The downside is that it makes the vehicle look worse than if were never put on there in the first place.Thousands of other drivers see this on the road every day. Seems like a pretty big downside to people that want to sell these cars (ie. the dealers).

 

[Man in the yellow hat]

You want to improve the carbuying experience overall? You want something revolutionary that'll put GM back on the map and cause everyone else to have to rethink their business model?Do these things:2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.

This is a great, great idea. I think some folks are actually getting close to this already in that you can assemble your car online, but I'm not sure what actually happens when you're ready to purchase. This makes a lot of sense, and there is a whole generation of new car buyers coming up that would prefer this interaction compared to face to face. Heck, maybe they could buy a car from their iPhone app?

 

[BR33ZE]

You want to improve the carbuying experience overall? You want something revolutionary that'll put GM back on the map and cause everyone else to have to rethink their business model?Do these things:2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.

This is a great, great idea. I think some folks are actually getting close to this already in that you can assemble your car online, but I'm not sure what actually happens when you're ready to purchase. This makes a lot of sense, and there is a whole generation of new car buyers coming up that would prefer this interaction compared to face to face. Heck, maybe they could buy a car from their iPhone app?

I love this idea as well. Why is it so hard to implement?ETA: It is an opportunity to take the lead on something instead of continually following what the other manufacturers do.Hey, were selling cars online now. It starts today. One fixed price... shop us at GMreinvention.com.

 

[tdoss]

You want to improve the carbuying experience overall? You want something revolutionary that'll put GM back on the map and cause everyone else to have to rethink their business model?Do these things:2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.

This is a great, great idea. I think some folks are actually getting close to this already in that you can assemble your car online, but I'm not sure what actually happens when you're ready to purchase. This makes a lot of sense, and there is a whole generation of new car buyers coming up that would prefer this interaction compared to face to face. Heck, maybe they could buy a car from their iPhone app?

You assemble it online and then you put in your zip and see if the car is at a lot near you...where you go and get promptly screwed royally.Eliminate that option...let me buy primarily online. They can still ship their cars to all the lots...and I can pick it up at the nearest lot...or pay to have it shipped to me.Put all the financing online...hell, if I can get a home loan quote online in a matter of minutes, you can't tell me that I can't get a car loan.It's just so obviously foul...the whole process. I'm actually surprised that it's been allowed to go on this long...legally, that is...

 

[TheFanatic]

There's a ton of things GM did wrong to get themselves here, but none of things you listed are really in that category. Things like having 4 versions of the same car, across 4 different brands, come to mind.

They seem to be condensing their brands, first Olds and now Pontiac will be gone. Chevy cars, Caddy sedans & GMC trucks are all they really need.

This is a great point. Stick to a few brands and within those brands make rock solid cars. And on that point, spend some money on R&D. The big three got complacent in the late 80's through early 90's. Ford and Chevy did not update the Explorer and Blazer, respectively, for years beyond when both of those vehicles needed to be upgraded. Why? Because the idiot consumer kept buying them. They got comfy. They got soft. All the while the Japanese were making better and better rides. Spending millions on R&D. And there they are with cutting edge stuff and the Big 3 hemorrhage cash to try to catch up.The bankruptcies of GM and Chrysler will allow them to trim that crap away and come out leaner and meaner. Spend on R&D. Don't let the oil companies dictate what MPG is OK. 50 MPG should be common place right now not the anomaly.

 

[Sinn Fein]

2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.

There is one (well several) pitfall(s) with this approach - people will not buy without being able to drive it, sit in it, kick the tires so to speak.Franchise laws prohibit the dealers from selling direct to the consumers.The Dealership network serves a vital role in the sales process from facilitating the deal, to showing/stocking the inventory, to servicing the vehicle.Having said that, I suggested in another thread that if I was a new car manufacturer (or new to the American market) and I had a primarily entry level car - I would absolutely approach it like this. I would set up regional caravans that would travel to college campuses and provide test drives and the ability to see a model up close. I would set up a contract with a national garage chain to handle warranty and other basic mechanical work. Then I would sell only on-line. Have an east coast and west coast storage lot and deliver directly to the door. I would be able to undersell comparably optioned cars by cutting most of the middleman costs. Most marketing would be viral and directed on-line towards my target audience - college kids looking for a first, inexpensive car.

 

[tdoss]

2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.

There is one (well several) pitfall(s) with this approach - people will not buy without being able to drive it, sit in it, kick the tires so to speak.Franchise laws prohibit the dealers from selling direct to the consumers.The Dealership network serves a vital role in the sales process from facilitating the deal, to showing/stocking the inventory, to servicing the vehicle.Having said that, I suggested in another thread that if I was a new car manufacturer (or new to the American market) and I had a primarily entry level car - I would absolutely approach it like this. I would set up regional caravans that would travel to college campuses and provide test drives and the ability to see a model up close. I would set up a contract with a national garage chain to handle warranty and other basic mechanical work. Then I would sell only on-line. Have an east coast and west coast storage lot and deliver directly to the door. I would be able to undersell comparably optioned cars by cutting most of the middleman costs. Most marketing would be viral and directed on-line towards my target audience - college kids looking for a first, inexpensive car.

If you're looking to buy...you can go test drive at a local lot. No problem. Then walk out.Go home and buy online. I just bought a car and I was WISHING I could purchase my ride online.

 

[The Noid]

There's a ton of things GM did wrong to get themselves here, but none of things you listed are really in that category. Things like having 4 versions of the same car, across 4 different brands, come to mind.

They seem to be condensing their brands, first Olds and now Pontiac will be gone. Chevy cars, Caddy sedans & GMC trucks are all they really need.

This is a great point. Stick to a few brands and within those brands make rock solid cars. And on that point, spend some money on R&D. The big three got complacent in the late 80's through early 90's. Ford and Chevy did not update the Explorer and Blazer, respectively, for years beyond when both of those vehicles needed to be upgraded. Why? Because the idiot consumer kept buying them. They got comfy. They got soft. All the while the Japanese were making better and better rides. Spending millions on R&D. And there they are with cutting edge stuff and the Big 3 hemorrhage cash to try to catch up.The bankruptcies of GM and Chrysler will allow them to trim that crap away and come out leaner and meaner. Spend on R&D. Don't let the oil companies dictate what MPG is OK. 50 MPG should be common place right now not the anomaly.

The best was when Plymouth and Dodge didn't even bother to change the names when they were selling the exact same cars (Neon, for example.)

 

[BR33ZE]

Put all the financing online...hell, if I can get a home loan quote online in a matter of minutes, you can't tell me that I can't get a car loan.

This is a great idea too. And jogs my memory of the last car I bought from a dealer.I picked out the vehicle on the way home from work on a Thursday. Agreed to a price with the sales guy. I gave him my information so he could get the financing work done the next day and I would pick up the vehicle on Saturday.I leave the dealership on Thursday and the last thing I say to the sales guy, "Give me a call tomorrow with my financing rate."Friday around 4:30 I get a call from the sales guy, "Hey, we got you a good rate. It's 5.95%. When are you coming by tomorrow to get the vehicle?"I then say, "well, I'm pretty sure that rate is high and its so late on Friday I doubt I can get my own financing in time to come in tomorrow."Salesguy, "Well, that is a good rate and really if you do a little better than that through your bank it won't change your payment much."Me, "Let me call my bank."Salesguy, "Ok, but let me know what they can do. I want to get you in this vehicle tomorrow."In the next 10 minutes, I call the two banks I do business with. One says, they can get me the loan at 4.9% and the other is 5.0%.Me, "Hey saleguy, I just called my banks, they can do better. I'll get a check from them on Monday and pick up the vehcile then."Salesguy, "Really? What rate did you get?'Me, "4.9%"Salesguy, "Hold on."about 20 seconds later, "Oh, we can get you that rate now.":finger:

 

[sartre]

2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.

This isn't revolutionary. I did this in 1997 when I bought my first car (a Saturn). I had to wait ~4 weeks and then pick it up at the nearest dealership, but otherwise the experience I remember is almost exactly the one you describe.

 

[Sinn Fein]

2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.

There is one (well several) pitfall(s) with this approach - people will not buy without being able to drive it, sit in it, kick the tires so to speak.Franchise laws prohibit the dealers from selling direct to the consumers.

The Dealership network serves a vital role in the sales process from facilitating the deal, to showing/stocking the inventory, to servicing the vehicle.

Having said that, I suggested in another thread that if I was a new car manufacturer (or new to the American market) and I had a primarily entry level car - I would absolutely approach it like this. I would set up regional caravans that would travel to college campuses and provide test drives and the ability to see a model up close. I would set up a contract with a national garage chain to handle warranty and other basic mechanical work. Then I would sell only on-line. Have an east coast and west coast storage lot and deliver directly to the door. I would be able to undersell comparably optioned cars by cutting most of the middleman costs. Most marketing would be viral and directed on-line towards my target audience - college kids looking for a first, inexpensive car.

If you're looking to buy...you can go test drive at a local lot. No problem. Then walk out.

Go home and buy online. I just bought a car and I was WISHING I could purchase my ride online.

Short-sighted - how long do you think dealers are going to stay in business as a test-drive lot?If you want the best deal, least hassle at the dealership - find the car you want, options, color, etc. know the price you will pay (understand that the dealer is in business to make a profit) - and go find the fleet sales manager.

They are typically compensated based on volume of cars moved, not commissioned based directly on the sales price.

 

[tdoss]

2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.

There is one (well several) pitfall(s) with this approach - people will not buy without being able to drive it, sit in it, kick the tires so to speak.Franchise laws prohibit the dealers from selling direct to the consumers.

The Dealership network serves a vital role in the sales process from facilitating the deal, to showing/stocking the inventory, to servicing the vehicle.

Having said that, I suggested in another thread that if I was a new car manufacturer (or new to the American market) and I had a primarily entry level car - I would absolutely approach it like this. I would set up regional caravans that would travel to college campuses and provide test drives and the ability to see a model up close. I would set up a contract with a national garage chain to handle warranty and other basic mechanical work. Then I would sell only on-line. Have an east coast and west coast storage lot and deliver directly to the door. I would be able to undersell comparably optioned cars by cutting most of the middleman costs. Most marketing would be viral and directed on-line towards my target audience - college kids looking for a first, inexpensive car.

If you're looking to buy...you can go test drive at a local lot. No problem. Then walk out.

Go home and buy online. I just bought a car and I was WISHING I could purchase my ride online.

Short-sighted - how long do you think dealers are going to stay in business as a test-drive lot?If you want the best deal, least hassle at the dealership - find the car you want, options, color, etc. know the price you will pay (understand that the dealer is in business to make a profit) - and go find the fleet sales manager.

They are typically compensated based on volume of cars moved, not commissioned based directly on the sales price.

The car lot will still be in business for those who can't get financing easily and for those still afraid of the internet and doing business over it.There will always be dealerships...I'm just saying kill off 50% of them and we'll still have a dozen per city.

 

[MrPhoenix]

2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.

This isn't revolutionary. I did this in 1997 when I bought my first car (a Saturn). I had to wait ~4 weeks and then pick it up at the nearest dealership, but otherwise the experience I remember is almost exactly the one you describe.

Maybe Penske can bring this experience back.

 

[bueno]

You want to improve the carbuying experience overall? You want something revolutionary that'll put GM back on the map and cause everyone else to have to rethink their business model?

Do these things:

1. Create cars that people want...I was walking out to my car yesterday and saw a Corvette Stingray sitting in the lot. That car STILL turns heads...after all these years. Remember when cars had style and were works of art? Now they're all gray sihtboxes with plastic all around. Get back to what made American cars so cool to own and are still sought after commodities. You can't convince me that it can't be done and done well and still be affordable like it was back in the day.

2. Here's the real revolution...once you've created cars that people want...give the people the ability to purchase their cars directly...online. In today's day and age...I should be able to go onto any car manufacturer's site and choose what car I want...with what options...just point and click and wham...they'll make it and ship it out to me. Consider it the Dell model of car manufacturing. You can still make your line and supply the car lots (although I see them going the way of the dodo bird if my way flies)...but allow people to buy directly with no hassle...no nonsense...no incredible markups with lying, thieving salesmen to deal with. Let the people buy the cars direct at a significant discount...maybe not as much as a dealer but still...something so low that it's still world's better than going into a dealership and haggling those bastards for hours just to get screwed in the end anyway.

3. Redo all labor agreements...tie it into profits only. You make a decent base salary and as the company becomes successful...so will it's employees...things get tough and the employee's salaries will drop back down to around the base salary. No more agreements years in advance that always go up some ridiculous rate every year. Just tie it directly into the bottomline. I'm sure there's a lot of unemployed workers out there willing to take that deal.

As to your point #2, http://www.usautosales.com/ The largest GM dealer in the world is located in the tiny town of Kellogg, Idaho. They have been doing exactly what you advocate for decades now.

 

[DA RAIDERS]

make a good product.

fire all main, bottom line, decision makers over the last 15 years. this is what should happen in the real world, or at least at my job. the fact that the people responsible for losing 85K A MINUTE are still employed is criminal.

 

[The Big Guy]

Put all the financing online...hell, if I can get a home loan quote online in a matter of minutes, you can't tell me that I can't get a car loan.

This is a great idea too. And jogs my memory of the last car I bought from a dealer.I picked out the vehicle on the way home from work on a Thursday. Agreed to a price with the sales guy. I gave him my information so he could get the financing work done the next day and I would pick up the vehicle on Saturday.I leave the dealership on Thursday and the last thing I say to the sales guy, "Give me a call tomorrow with my financing rate."Friday around 4:30 I get a call from the sales guy, "Hey, we got you a good rate. It's 5.95%. When are you coming by tomorrow to get the vehicle?"I then say, "well, I'm pretty sure that rate is high and its so late on Friday I doubt I can get my own financing in time to come in tomorrow."Salesguy, "Well, that is a good rate and really if you do a little better than that through your bank it won't change your payment much."Me, "Let me call my bank."Salesguy, "Ok, but let me know what they can do. I want to get you in this vehicle tomorrow."In the next 10 minutes, I call the two banks I do business with. One says, they can get me the loan at 4.9% and the other is 5.0%.Me, "Hey saleguy, I just called my banks, they can do better. I'll get a check from them on Monday and pick up the vehcile then."Salesguy, "Really? What rate did you get?'Me, "4.9%"Salesguy, "Hold on."about 20 seconds later, "Oh, we can get you that rate now.":finger:

Again, you are taking a profit center away from the dealer, they get paid to originate loans, so which loan company are they going to go with, the one that gets you the best rate, or the one that pays them the most money? This is exactly why the financial mtg crisis became what it is, when people choose compensation over the best product.

 

[SaintsInDome2006]

General Motors recalled another 3.36 million vehicles worldwide Monday for a problem the company has linked to eight crashes and six injuries. That brings the total number of cars recalled by the company this year to more than 20 million.The new recall affects cars from model years 2000 through 2014. The ignition switch can move out of the run position, turning off power steering and power braking while the car is being driven. Extra weight on the key chain can jostle the ignition when the vehicle strikes something in the road like a pothole.

Some model years of the Chevrolet Impala, Cadillac Deville and DTS, as well as the Buick Lacrosse, Lucerne and Regal are included in this recall.

Monday's announcement comes after a review of ignition switch issues in the wake 2.6 million recalled Chevrolet Cobalts and other small cars for a similar problem. At least 13 deaths have been blamed for the earlier ignition switch problem.

It took the company more than a decade to recall those cars, and the automaker is currently under investigation and facing several lawsuits over the delay.

Related: Barra set to testify again on GM recall

Monday's recall pertains to a different ignition switch and requires a different solution, GM spokesman Alan Adler said.

Owners of cars included in the Cobalt recall must get the ignition switch replaced, but those affected by Monday's recall don't have to. Instead, GM dealerships will add an insert to the key that closes the slot and leaves only a small hole where a key ring can be attached.

Two families, one fight against GM
Dealerships are expected to start fixing owners' keys in the next few weeks. Until then, owners are urged to remove any additional weight from their key chains.

GM engineer Ray DeGiorgio was involved with the design of both ignition switches, according to Adler. DeGiorgio was placed on paid leave at the start of the Cobalt investigation and is no longer with the company.

The automaker also issued five smaller recalls Monday, affecting about 194,000 vehicles worldwide. More than half of those are Cadillac ATS and CTS cars with a problem that could prevent the driver from shifting gears. The company said it is unaware of any related crashes or injuries.

GM (GM) said it expects to take a charge of about $700 million for recalls this quarter, on top of the $1.3 billion in recall-related charges that it's already announced this year.

http://money.cnn.com/2014/06/16/news/companies/gm-recall-injuries/index.html

General Motors has recalled nearly 13.8 million vehicles in the U.S. this year. That's a lot, obviously. For example, it blows past GM's previous annual recall record of 10.75 million vehicles, set in 2004. And it means GM is responsible for more than half of the total number of vehicles recalled in the U.S. so far this year.

But if you're looking for one statistic that really drives home just how cataclysmic the whole episode has been for GM, it's this one: In just this year alone, GM has recalled more vehicles in the U.S. than it sold between 2009 and 2013. And it's only May.

In an emailed statement to The Huffington Post, a GM representative wrote that the company's recalls have gone beyond that which has been required by the National Highway Traffic Safety Administration (NHTSA).

"Some of these recalls address issues that have been under NHTSA investigation," the representative wrote. "Others are an aggressive response to issues rather than watching for a defect trend to develop."

"Our goal is to give customers peace of mind that the GM vehicle they are driving is safe and to inconvenience them as little as possible when repairs are necessary."

GM's troubles began earlier this year when it recalled 2.6 million vehicles for an ignition switch problem that has since been linked to at least 13 deaths. An independent report, which GM challenged, estimated the deaths could be in the hundreds.

The company, which was fined $35 million by federal safety regulators last week for taking years to act on the recall, is in the midst of evaluating the safety of millions more of its vehicles.

http://www.huffingtonpost.com/2014/05/21/gm-recall-more-than-sold_n_5367478.html

 

[Kal El]

That's why Ford is better.

 

[FlapJacks]

http://www.reuters.com/article/2014/07/04/us-gm-recall-ignition-idUSKBN0F82F420140704

Reuters) - General Motors car owners have been complaining to dealers about defective ignition switches since 1997, years before the automaker launched the Chevrolet Cobalt and other small cars with faulty switches linked to at least 13 deaths.GM this week expanded its recall of cars with switch issues by more than 8 million, but it did not indicate when it first learned of problems in cars including the 1997 Chevrolet Malibu and the 2000 Chevrolet Impala. A Reuters review of a consumer complaints database maintained by U.S. safety regulators showed that GM dealers were told of switch-related defects almost as soon as the Malibu was put on the market, and that many could not fix the defects.

at what point do we look upon this as negligent homicide?

 

[SaintsInDome2006]

http://www.reuters.com/article/2014/07/04/us-gm-recall-ignition-idUSKBN0F82F420140704

Reuters) - General Motors car owners have been complaining to dealers about defective ignition switches since 1997, years before the automaker launched the Chevrolet Cobalt and other small cars with faulty switches linked to at least 13 deaths.GM this week expanded its recall of cars with switch issues by more than 8 million, but it did not indicate when it first learned of problems in cars including the 1997 Chevrolet Malibu and the 2000 Chevrolet Impala. A Reuters review of a consumer complaints database maintained by U.S. safety regulators showed that GM dealers were told of switch-related defects almost as soon as the Malibu was put on the market, and that many could not fix the defects.

at what point do we look upon this as negligent homicide?

But GM did not recall the 1997 Malibu and 2000 Impala for switch-related issues until Monday, when 8.23 million GM vehicles were called back for "unintended ignition key rotation," which can turn the engine off while a vehicle is moving, cutting off power to steering, brakes and air bags.

Owners of 2000 Impalas reported dozens of cases of engine stalling, which can be caused by a number of issues.

One owner in early 2011 wrote about the car "stalling at freeway speed and loosing the power steering and power brakes," noting that the local dealership "says to change the ignition switch sometimes helps."

Another Impala owner in mid-2005 said the "engine shuts down for no apparent reason -- almost like someone turned the ignition switch off." Another Impala owner in fall 2003 wrote the car "just shuts down as if the ignition was turned off."

That's awful.

 

[Slapdash]

http://www.reuters.com/article/2014/07/04/us-gm-recall-ignition-idUSKBN0F82F420140704

Reuters) - General Motors car owners have been complaining to dealers about defective ignition switches since 1997, years before the automaker launched the Chevrolet Cobalt and other small cars with faulty switches linked to at least 13 deaths.GM this week expanded its recall of cars with switch issues by more than 8 million, but it did not indicate when it first learned of problems in cars including the 1997 Chevrolet Malibu and the 2000 Chevrolet Impala. A Reuters review of a consumer complaints database maintained by U.S. safety regulators showed that GM dealers were told of switch-related defects almost as soon as the Malibu was put on the market, and that many could not fix the defects.

at what point do we look upon this as negligent homicide?

Not soon enough. People should be in jail for this ####.

 

[Mario Kart]

I have an 07 Cobalt. Its been the best car I have ever had, no engine issues or nothing. Normal tires, brakes and oil for the most part. I'm going to finally call on Monday to see about getting ALL of the recalls done on the car. I haven't had it to a dealer since '10' and that was because I was rear ended and needed a lot of work. I have to drive the car into the ground because of the crash and this recall stuff, my trade in value is all but gone, imo.

I'm not in the mood to buy new car or anything but is there anything GM is offering owners of these cars as an incentive to bring the car in and/or purchasing a new/used car? I kind of feel like they should bend over a little bit to get these cars off the road and keep their owners in a GM brand vehicle. As of right now, in a few years, I'd be looking Honda Civics or something in that general area (maybe hybrid at that time as well).

Just priced out a:

new Cruze diesel ~$20,000 (yikes)

Cruze eco seems to be the better deal at $17,000 (both prices after trade in)

 

[DocHolliday]

I have an 07 Cobalt. Its been the best car I have ever had, no engine issues or nothing. Normal tires, brakes and oil for the most part. I'm going to finally call on Monday to see about getting ALL of the recalls done on the car. I haven't had it to a dealer since '10' and that was because I was rear ended and needed a lot of work. I have to drive the car into the ground because of the crash and this recall stuff, my trade in value is all but gone, imo.

I'm not in the mood to buy new car or anything but is there anything GM is offering owners of these cars as an incentive to bring the car in and/or purchasing a new/used car? I kind of feel like they should bend over a little bit to get these cars off the road and keep their owners in a GM brand vehicle. As of right now, in a few years, I'd be looking Honda Civics or something in that general area (maybe hybrid at that time as well).

Just priced out a:

new Cruze diesel ~$20,000 (yikes)

Cruze eco seems to be the better deal at $17,000 (both prices after trade in)

Not sure why anyone would buy a GM product these days. There are so many better vehicle vehicle manufacturers.

 

[Kal El]

What did the Ford vehicle say to the GM vehicle?

I don't recall.

 

[SaintsInDome2006]

It's time to return GM to the private sector. This government run car company is starting to look like Trabants or bad Peugots.

 

[Dan Lambskin]

http://www.usatoday.com/story/money...eneral-motors-tarp-bailout-exit-sale/3925515/It's time to return GM to the private sector. This government run car company is starting to look like Trabants or bad Peugots.

http://www.usatoday.com/story/money/cars/2013/12/09/government-treasury-gm-general-motors-tarp-bailout-exit-sale/3925515/

 

[SaintsInDome2006]

It's time to return GM to the private sector. This government run car company is starting to look like Trabants or bad Peugots.

http://www.usatoday.com/story/money/cars/2013/12/09/government-treasury-gm-general-motors-tarp-bailout-exit-sale/3925515/

Well I do tend to get my news from here, I blame Tim.

 

[belljr]

GM owner here

 

[Mario Kart]

My 07 Cobalt, I just called about the recalls, will take one to three months to get completed. They have to order the parts for my car and then get the stuff going. Really? 1-3 months for something that sounds kind of important. Wow.

 

[Amused to Death]

My 07 Cobalt, I just called about the recalls, will take one to three months to get completed. They have to order the parts for my car and then get the stuff going. Really? 1-3 months for something that sounds kind of important. Wow.

From my personal experience, I think dealers hate recalls. I had a recall on a Ford several years ago and had a long lead time for an appointment. I called with a different issue and got right in. As I was dropping it off, I mentioned the recall and wanted that done at the same time. Their attitude totally sucked after that and jacked the estimate up on my initial issue. I told them to do nothing but the recall and not the initial problem. Took that to a private mechanic for 1/3 their quote.

 

[Mario Kart]

My 07 Cobalt, I just called about the recalls, will take one to three months to get completed. They have to order the parts for my car and then get the stuff going. Really? 1-3 months for something that sounds kind of important. Wow.

From my personal experience, I think dealers hate recalls. I had a recall on a Ford several years ago and had a long lead time for an appointment. I called with a different issue and got right in. As I was dropping it off, I mentioned the recall and wanted that done at the same time. Their attitude totally sucked after that and jacked the estimate up on my initial issue. I told them to do nothing but the recall and not the initial problem. Took that to a private mechanic for 1/3 their quote.

They're biting the hand that feeds them. I called a reputable dealer in the area as well, not some small time dealer. I wouldn't say he was rude on the phone but he wasn't peaches and cream either. Just surprised that GM gets all this news coverage and it still takes 1-3 months to complete? Wow.

Guess I could try another dealer. Maybe they would be quicker or something.