If You Build It, They Will Come
11/26/07 | 05:36 AM
#1
Thread Starter
Closet American
Joined: July 17, 2005
Posts: 5,848
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From: Vancouver, BC (Hollywood North)
If You Build It, They Will Come
GM spent $150 million on the ad campaign for the new Malibu. Intriguingly, though -- and after all the work that went into the car, all the hype, all the ads (we dig the one with the jogger running into the car, even though it's not a new Malibu), and all the great reviews -- GM only expected to sell 500 of them in November, the car's first full retail month. That's right: GM sent 3,500 of them to dealers. And they only expected 500 of them to get off the lot, down the road burning gas.
Well, as George W. Bush said, GM "misunderestimated." GM's on track to sell nearly the entire allotment, with 3,000 cars looking to be on the move. Lutz said dealers don't have any because they keep selling out of them. The same phenomenon is being reported for the Buick Enclave. which is not only exceeding sales expectations, but swiping the expected younger buyers from the Saturn Outlook. Hey Mr. Lutz: that's because the Enclave looks curvy and cool, and the Saturn, uh, doesn't.
In a Wall Street Journal article about the perception gap between American cars and imports, GM chief Rick Wagoner said "Building a better car and assuming people will buy it doesn't work." To you, Mr. Wagoner, we would like to present the Malibu and Enclave as Exhibits A and B, and retort: wanna bet? If they prove to be as reliable as we know you can make them, then you shouldn't have any problem selling them. Now, get us a Camaro that looks like the concept, a CTS Coupe, a hot Solstice coupe, and a Volt by 2010, and you might be able to shift your concerns to building inventory as opposed to moving it.
Source
Well, as George W. Bush said, GM "misunderestimated." GM's on track to sell nearly the entire allotment, with 3,000 cars looking to be on the move. Lutz said dealers don't have any because they keep selling out of them. The same phenomenon is being reported for the Buick Enclave. which is not only exceeding sales expectations, but swiping the expected younger buyers from the Saturn Outlook. Hey Mr. Lutz: that's because the Enclave looks curvy and cool, and the Saturn, uh, doesn't.
In a Wall Street Journal article about the perception gap between American cars and imports, GM chief Rick Wagoner said "Building a better car and assuming people will buy it doesn't work." To you, Mr. Wagoner, we would like to present the Malibu and Enclave as Exhibits A and B, and retort: wanna bet? If they prove to be as reliable as we know you can make them, then you shouldn't have any problem selling them. Now, get us a Camaro that looks like the concept, a CTS Coupe, a hot Solstice coupe, and a Volt by 2010, and you might be able to shift your concerns to building inventory as opposed to moving it.
Source
11/26/07 | 08:56 AM
#3
I think Wagoner's quip is an interesting insight into Detroits problems, that these MBA's tend to look at the automotive business as selling cars rather than building cars. Thus, they overly focus on the financial and advertising aspects rather than the engineering and manufacturing ones.
This MBA approach all too often reveals itself in the innumerable flashy ad campaigns, rebate bribery, 0% financing come ons and other schlock and haw. The vehicles themselves are looked upon as little more than dressed up commodity items -- toasters on wheels. And if bedazzling and buying customers don't work, then they resort to their other management-worldview chicanery such as reorganizations, firings, mergers, divestitures, leveraged buyouts ... pretty much anything than actually addressing the heart of the problem: better design, engineering and manufacturing.
So rather than engineering and building the best looking, performing and quality products, they slew billions of dollars over to advertising and ruinous financing gimmicks, neglecting and starving the engineering and manufacturing side of the equation.
Should they focus on and do the latter, as they seem to have in the Malibu and Enclave, then the advertising and financial flim-flammery fade in importance. Amazingly, even when they do, they still don't quite seem to "get it," thinking it must be some fluke or something but never quite shedding that MBA money and advertising world-view.
In the end, no amount of advertisement brow-beating and financial bribery will ever supplant product excellence -- excellent cars will pretty much sell themselves and command good profits as a reflection of their innate worth to the consumer.
This MBA approach all too often reveals itself in the innumerable flashy ad campaigns, rebate bribery, 0% financing come ons and other schlock and haw. The vehicles themselves are looked upon as little more than dressed up commodity items -- toasters on wheels. And if bedazzling and buying customers don't work, then they resort to their other management-worldview chicanery such as reorganizations, firings, mergers, divestitures, leveraged buyouts ... pretty much anything than actually addressing the heart of the problem: better design, engineering and manufacturing.
So rather than engineering and building the best looking, performing and quality products, they slew billions of dollars over to advertising and ruinous financing gimmicks, neglecting and starving the engineering and manufacturing side of the equation.
Should they focus on and do the latter, as they seem to have in the Malibu and Enclave, then the advertising and financial flim-flammery fade in importance. Amazingly, even when they do, they still don't quite seem to "get it," thinking it must be some fluke or something but never quite shedding that MBA money and advertising world-view.
In the end, no amount of advertisement brow-beating and financial bribery will ever supplant product excellence -- excellent cars will pretty much sell themselves and command good profits as a reflection of their innate worth to the consumer.
11/26/07 | 02:12 PM
#4
Thread Starter
Closet American
Joined: July 17, 2005
Posts: 5,848
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From: Vancouver, BC (Hollywood North)
I think Wagoner's quip is an interesting insight into Detroits problems, that these MBA's tend to look at the automotive business as selling cars rather than building cars. Thus, they overly focus on the financial and advertising aspects rather than the engineering and manufacturing ones.
This MBA approach all too often reveals itself in the innumerable flashy ad campaigns, rebate bribery, 0% financing come ons and other schlock and haw. The vehicles themselves are looked upon as little more than dressed up commodity items -- toasters on wheels. And if bedazzling and buying customers don't work, then they resort to their other management-worldview chicanery such as reorganizations, firings, mergers, divestitures, leveraged buyouts ... pretty much anything than actually addressing the heart of the problem: better design, engineering and manufacturing.
So rather than engineering and building the best looking, performing and quality products, they slew billions of dollars over to advertising and ruinous financing gimmicks, neglecting and starving the engineering and manufacturing side of the equation.
Should they focus on and do the latter, as they seem to have in the Malibu and Enclave, then the advertising and financial flim-flammery fade in importance. Amazingly, even when they do, they still don't quite seem to "get it," thinking it must be some fluke or something but never quite shedding that MBA money and advertising world-view.
In the end, no amount of advertisement brow-beating and financial bribery will ever supplant product excellence -- excellent cars will pretty much sell themselves and command good profits as a reflection of their innate worth to the consumer.
This MBA approach all too often reveals itself in the innumerable flashy ad campaigns, rebate bribery, 0% financing come ons and other schlock and haw. The vehicles themselves are looked upon as little more than dressed up commodity items -- toasters on wheels. And if bedazzling and buying customers don't work, then they resort to their other management-worldview chicanery such as reorganizations, firings, mergers, divestitures, leveraged buyouts ... pretty much anything than actually addressing the heart of the problem: better design, engineering and manufacturing.
So rather than engineering and building the best looking, performing and quality products, they slew billions of dollars over to advertising and ruinous financing gimmicks, neglecting and starving the engineering and manufacturing side of the equation.
Should they focus on and do the latter, as they seem to have in the Malibu and Enclave, then the advertising and financial flim-flammery fade in importance. Amazingly, even when they do, they still don't quite seem to "get it," thinking it must be some fluke or something but never quite shedding that MBA money and advertising world-view.
In the end, no amount of advertisement brow-beating and financial bribery will ever supplant product excellence -- excellent cars will pretty much sell themselves and command good profits as a reflection of their innate worth to the consumer.
And Ford of North America STILL doesn't get it...while Ford in Europe clearly does. Hence Ford of North America's year-over-year sales losses, declining market share and a sea of red ink. Meanwhile, Ford in the UK is the number one selling brand.
Go figure.
11/26/07 | 07:31 PM
#5
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Joined: October 27, 2007
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Does anyone really believe this?
GM only expected to sell 500 of them in November, the car's first full retail month. That's right: GM sent 3,500 of them to dealers. And they only expected 500 of them to get off the lot, down the road burning gas.
11/26/07 | 08:33 PM
#6
Team Mustang Source
Joined: January 29, 2004
Posts: 2,357
Likes: 1
Exactly.
500 cars sold in a month works out to about 6,000 cars for the year while 3000 cars sold in a month equals 36,000 cars per year. Put plainly, Toyota sells twice as many Camry's on average in a day as GM supposedly planned to move in the Malibu's first full month on the market. From a Ford perspective the Mustang sold more units for every two days in the month of November than GM supposedly expected to sell, again, during the entire month. To put the Cherry on top....Ford's Fusion moved 4000 units and change during it's first full month on sale (sales for Fusion's corporate twin, the Milan, were 1400 units and change) while the Ford Edge managed 5,500 units and change during that models first full month on the market. In contrast GM has thus far sent 3,500 Malibu's to dealerships and they appear likely to have about 500 of those left over.
Could we possibly find something more ridiculous than this to congratulate GM on? At this rate first month sales expectations for the Camaro will be five, maybe six units total. What I've seen thus far tells me that exactly what I expected is coming to pass....the new Malibu is falling flat on its face.
500 cars sold in a month works out to about 6,000 cars for the year while 3000 cars sold in a month equals 36,000 cars per year. Put plainly, Toyota sells twice as many Camry's on average in a day as GM supposedly planned to move in the Malibu's first full month on the market. From a Ford perspective the Mustang sold more units for every two days in the month of November than GM supposedly expected to sell, again, during the entire month. To put the Cherry on top....Ford's Fusion moved 4000 units and change during it's first full month on sale (sales for Fusion's corporate twin, the Milan, were 1400 units and change) while the Ford Edge managed 5,500 units and change during that models first full month on the market. In contrast GM has thus far sent 3,500 Malibu's to dealerships and they appear likely to have about 500 of those left over.
Could we possibly find something more ridiculous than this to congratulate GM on? At this rate first month sales expectations for the Camaro will be five, maybe six units total. What I've seen thus far tells me that exactly what I expected is coming to pass....the new Malibu is falling flat on its face.
11/26/07 | 09:35 PM
#7
Thread Starter
Closet American
Joined: July 17, 2005
Posts: 5,848
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From: Vancouver, BC (Hollywood North)
11/26/07 | 09:42 PM
#8
Team Mustang Source
Joined: January 29, 2004
Posts: 2,357
Likes: 1
Thus far you've posted a link to an article which claims the Malibu is a sales success for moving ~3000 units in it's first month, a number lower than that of either the Fusion or Edge, and you're the one posting the LOL smiley? Posting something which actually supports your theory that this somehow makes the Malibu a success, impossible as that may be, might go some way toward helping your argument.
11/26/07 | 09:59 PM
#9
Thread Starter
Closet American
Joined: July 17, 2005
Posts: 5,848
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From: Vancouver, BC (Hollywood North)
GM's strategy here is clear. Can you not see it? Intentionally shorting the product in the beginning enables them to test the waters while simultaneously boost demand for a vehicle that the critics are already heaping with high praise.
It all starts with product. When you neglect your core business, you fail, pure and simple. GM is focussed on its core business, and despite your protestations about cost overruns and creative accounting on their part, they had to start somewhere...and they were smart enough to start with product.
Ford's North American lineup, comparatively speaking, looks pretty sad. Ford looks like they're just sitting on their hands, waiting for divine intervention, while GM gets off its a$$ and actually takes action.
It all starts with product. When you neglect your core business, you fail, pure and simple. GM is focussed on its core business, and despite your protestations about cost overruns and creative accounting on their part, they had to start somewhere...and they were smart enough to start with product.
Ford's North American lineup, comparatively speaking, looks pretty sad. Ford looks like they're just sitting on their hands, waiting for divine intervention, while GM gets off its a$$ and actually takes action.
11/26/07 | 09:59 PM
#10
I lust for a M24
Joined: November 6, 2004
Posts: 7,045
Likes: 4
From: Football HOF, Canton OH
Even if they do want to make it stand out, then someone in the marketing department needs to be kicked in the jimmy for designing a matching Aveo. It would be stupid to design an Aveo w/ 4 round taillights, flip up headlights, and a sleek overall appearance w/ a checkered flag emblem because that would degrade the brand image of the Corvette. So why do it for the new 'Can't ignore' Malibu? Morons. The Malibu will fail, not because of a poor product or poor advertising, but because of poor brand management.
11/26/07 | 10:14 PM
#12
I lust for a M24
Joined: November 6, 2004
Posts: 7,045
Likes: 4
From: Football HOF, Canton OH
BTW - like the new avatar - rumor is that no 24 this year due to the writer's strike... have you heard anything about S7?
11/26/07 | 10:34 PM
#13
Thread Starter
Closet American
Joined: July 17, 2005
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From: Vancouver, BC (Hollywood North)
We'll see.
They put the seventh season on indefinite hold. As of right now, season seven will not start in January. If the strike is resolved in the next two weeks (they're back at the bargaining table today), then they'll probably come back to finish season seven, and simply delay the start date.
11/26/07 | 10:50 PM
#14
TMS Post # 1,000,000
Serbian Steamer
Serbian Steamer
Joined: January 30, 2004
Posts: 12,637
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From: Wisconsin / Serbia
GM's strategy here is clear. Can you not see it? Intentionally shorting the product in the beginning enables them to test the waters while simultaneously boost demand for a vehicle that the critics are already heaping with high praise.
It all starts with product. When you neglect your core business, you fail, pure and simple. GM is focussed on its core business, and despite your protestations about cost overruns and creative accounting on their part, they had to start somewhere...and they were smart enough to start with product.
Ford's North American lineup, comparatively speaking, looks pretty sad. Ford looks like they're just sitting on their hands, waiting for divine intervention, while GM gets off its a$$ and actually takes action.
It all starts with product. When you neglect your core business, you fail, pure and simple. GM is focussed on its core business, and despite your protestations about cost overruns and creative accounting on their part, they had to start somewhere...and they were smart enough to start with product.
Ford's North American lineup, comparatively speaking, looks pretty sad. Ford looks like they're just sitting on their hands, waiting for divine intervention, while GM gets off its a$$ and actually takes action.
For second part, about N. America's Ford, I can't agree. I lived in Europe for almost 15 years and I would always chose N. American Ford than European Ford. Sure, Europe have nice Fords like Focus, Mondeo and I really like their Ranger, but I like bigger vehicles and Ford F-Series line of vehicles is great. Same with Expedition and Navigator. Our Fusion is a lot better. Ka, Fiesta, C-Max are pretty boring. S-Max and Galaxy are ok, but I would always go with Edge and Flex instead.
11/26/07 | 10:59 PM
#15
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11/26/07 | 11:13 PM
#17
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Closet American
Joined: July 17, 2005
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From: Vancouver, BC (Hollywood North)
For second part, about N. America's Ford, I can't agree. I lived in Europe for almost 15 years and I would always chose N. American Ford than European Ford. Sure, Europe have nice Fords like Focus, Mondeo and I really like their Ranger, but I like bigger vehicles and Ford F-Series line of vehicles is great. Same with Expedition and Navigator. Our Fusion is a lot better. Ka, Fiesta, C-Max are pretty boring. S-Max and Galaxy are ok, but I would always go with Edge and Flex instead.
As to the Fusion, yeah, it's done reasonably well, but it's not exactly reinventing the segment when compared to Camry and Accord, either. The Fusion to me represents more of a short term fix than any kind of real long term investment; always Ford's strategy, seemingly. The Taurus - while a competent vehicle - is something of a white elephant and has been a sales disaster.
In many respects, Ford of North America is first and foremost a truck company. That's where most of their R&D and investment has gone over the past decade-and-a-half, and it shows. Mustang aside, they don't really seem to "get" cars at all anymore.
But despite our individual preferences, the numbers tell the real story. As I mentioned above, year-over-year sales losses, declining market share and a sea of red ink can no longer be ignored, not while Ford in the UK is the number one selling brand; not while more people in North America clearly prefer import designs/engineering/philosophy when it comes to their choice in passenger cars.
Right now, GM is "getting it done," while Mulally seems to have succumbed to the corporate rot and analysis-paralysis that continues to grip the Blue Oval here in North America.
11/26/07 | 11:24 PM
#18
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That's what I thought.
The Malibu is insipid, and really nothing special. I don't see GMs recent marketing effort as a 'success'. It will be interesting to see how their smoke and mirror attempt at raising interest in the car pays off.
The Malibu is insipid, and really nothing special. I don't see GMs recent marketing effort as a 'success'. It will be interesting to see how their smoke and mirror attempt at raising interest in the car pays off.
11/27/07 | 12:32 AM
#19
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Closet American
Joined: July 17, 2005
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From: Vancouver, BC (Hollywood North)
Finally...a 'Bold Move'
More kudos for Chevy's new Malibu.
Now that's a bold move.
This is a bold move by a company that is taking increasingly confident steps. Midsize sedans, where the Malibu will compete, is the biggest, toughest mainstream segment in the auto industry, and most of it is owned by midsize toughs Toyota, Honda and Nissan.
The new Malibu seems well armed for the battles ahead. Before you slide behind the wheel, walk around the new car a couple of times, recalling the old Malibu's Croatian styling, skinny tires and floppy hubcaps.
This is now a 3,600-pound sedan with better stance, style and proportion than the Camry or Accord. The sides are sleek and chiseled, the windows are curved a bit rakishly and the front is graced with Chevy's strong new split grille. It even has a rounded pancake hood that must fit right to look good – and does.
It's no BMW. But the Malibu has nicely weighted, responsive steering and good brakes. The engine is so stout that it will spin the tires in first gear and tug lightly at the steering wheel with torque steer under hard acceleration.
What impresses me most about this car is it seems to have leapfrogged a couple of generations of car evolution to land where it is today. It kind of went from zero to hero in 12 months.
The new Malibu seems well armed for the battles ahead. Before you slide behind the wheel, walk around the new car a couple of times, recalling the old Malibu's Croatian styling, skinny tires and floppy hubcaps.
This is now a 3,600-pound sedan with better stance, style and proportion than the Camry or Accord. The sides are sleek and chiseled, the windows are curved a bit rakishly and the front is graced with Chevy's strong new split grille. It even has a rounded pancake hood that must fit right to look good – and does.
It's no BMW. But the Malibu has nicely weighted, responsive steering and good brakes. The engine is so stout that it will spin the tires in first gear and tug lightly at the steering wheel with torque steer under hard acceleration.
What impresses me most about this car is it seems to have leapfrogged a couple of generations of car evolution to land where it is today. It kind of went from zero to hero in 12 months.
11/27/07 | 12:39 AM
#20
Thread Starter
Closet American
Joined: July 17, 2005
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From: Vancouver, BC (Hollywood North)
And Again...
Value, comfort, safety, fuel economy and great looks. The Malibu did its homework, and I now confer the advanced degree of M.A.: masterful automobile.
There are literally DOZENS of positive reviews like this across the media.
There are literally DOZENS of positive reviews like this across the media.