Heavy Lifting - thoughts and web finds by an economist
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Monday, March 28, 2005
From an article in Advertising Age:
"Marketing can't change the fact that GM mostly builds cars people don't want," said Bob Kraus, consultant with IPR Corp., a Maynard, Mass., market-research provider.Amen, brother.
General Moters cars have historically been crap - even Caddilacs have had their problems. Now GM has SAAB and Hummer, and still their image isn't much better. I am a Ford/VW/Benz fan, but of the American producers it seems that Ford has the better vehicles, Chrysler/Dodge has the more interesting designs, and GM is bringing up the rear. Although GM is the biggest car manufacturer, as my brother over at Turn the Screw would attest, the customer is not always right. The Chevy Cavalier is a garbage vehicle, but then it only costs $10-$12,000. Okay, a new car can be purchased and driven for that amount of money, and I suppose it is under warranty. A Hyundai can also be purchased for $10,000 or a KIA for $8,000 and you know you are getting what you pay for.
GM is in trouble precisely because it is too large. Consolidating Pontiac or Buick is not the answer. Rather, GM should spin the brands off on their own and see if the resultant company can make a go of it without the GM albatross around their neck.
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