Friday, August 21, 2009

Government Motors - What Did You Expect?

A fairly scathing review of the "new team" at GM. Business Briefing - GM: Still Making the Same Mistakes (Of course the new team contains a lot of the old players.)

The Volt is the poster child for what they did wrong. They brought a beautiful, sporty concept car to the shows, then plan to introduce a plebeian econbox. And charge 40 grand (or more) for the thing. Yeah, that will work.
Now why would GM give the public the Volt's maximum range? That's only going to set the public up for disappointment, because some buyers, through their own driving habits, will likely not get that promised 40 miles before the generator kicks in. They'll complain about it, too. GM should have said that the Volt will get a minimum of 30 miles on the battery pack, which would still be the industry's best. That way, people who got more mileage than that would brag to all of their friends -- and anyone who stopped them on the street to ask about the Volt -- that they were "getting far better than the 30 miles promised."
First, their misunderstanding of how auctions work (eBay or in person, auctions can work for or against you, whether you are buying or selling). And yes, they are selling vehicles on eBay.

Then they have their (many fewer) dealerships and sales-force.
As for the salespeople, does GM think they are going to take hours and hours to sell customers on the features and benefits of a vehicle, then be totally cut out of the potential to make a living because, instead of returning to the dealership, the buyer tries to get a super deal at eBay?
Yeah, that will work in the long run.

Lastly they don't seem to know how to generate interest around a car's introduction.
in the 1980s the Chevrolet Lumina minivan was called the "most introduced" vehicle in America. GM started using photos of that unique minivan almost four years before actually having them available to sell. Again, by the time it came out it was old news, not something new and exciting.
That isn't the first time they did this.

But then the guy they have in charge of marketing is the same guy who has been in charge for a long while. Why they expected him to do anything different is a mystery.

And I still won't buy a Government Motors vehicle.

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