Comments

After the sales end, the only advantage that GM has over others is OnStar. Once other manufacturers successfully offer similar services...GM will be history.

Joel

Posted by Joel Heffner at July 14, 2005 12:08 PM

I wouldn't count them out yet. There are significant issues that GM has to deal with, but they might do it. Your blurb suggests that they have completely ignored hybrids, truth is (according to a Wired article) GM thinks that hydrogen fuel cells are the answer (hybrids don't solve our fossil fuel problems) and are developing them for production.

Also, since this blog is home to lots of China news, GM IS HUGE THERE and while their health care costs, etc may sink them in the US, they could end up being the #1 car seller in the worlds largest car market.

Posted by kurt wendelken at July 14, 2005 12:53 PM

Yes, but hybrid technology is available now and growing in consumer acceptance. Hydrogen fuel cells won't be available for some time. Even when they are available, there is currently no fuel distribution system in place to handle them. That will take a long time to implement as well.

It seems GM is passing up a good product available now in hopes that a better product will be available in the next few decades. That's like sticking with rocks as weapons after swords have been invented because you're pretty sure you'll develop guns in 50 years. In the meantime, the competition has run you over.

Posted by Darrin Dickey at July 14, 2005 1:43 PM

You could at least spell "Just Deserts" correctly. Don't rely on spell check.

Posted by Marshall Smith at July 15, 2005 10:48 AM

Toyota is in the car business.

GM is in the commodity business.

Therein lies the difference.

Posted by hugh macleod at July 17, 2005 7:20 AM

hugh succinctly captures the difference between toyota and GM above.

GM excutes woefully on new technology initiatives, and justifies their "correct approach" (SUVs are great, hybrids are unimportant) while careening into oblivion.

Meanwhile real car companies were busy developing alternates, 5 years ago.

I doubt the Chinese will allow GM
to dominate the auto market there. More likely
the Chinese will develop their own brands,
after they learn to build cars for US and Japanese companies.

Hydrogen technology will take years...
that's just not a viable option. and doesn't help, if they even get enough time to finish developing.

what's interesting, is our quarter by quarter short term results based modus operandi on Wall Street collides with China's and India's government-supported long term vision. both are exceedingly patient, vigilant, extrememly hardworking and we (THE US company) can't see value long term investments any more....
that is, the short term balance sheet can't justify the investment.

here we go 12 weeks and breath, China is prepared to go years...
are we.....

Posted by kurt at July 18, 2005 11:28 AM

Saw it coming with the gas co mergers during the Clinton era, The tax break for suv purchase! increase demand! and the control of supply getting more and more centralized. The Gas Trust? The Best thing GM Can do is look at becoming a Hybred conversion company for all the folks that are stuck in quickly depreciating small home size cars. Saw a sign the other day $9000 off Msrp. Theres a sucker born every minute with a hundred dollar fill up even a sucker wakes up eventually.

Posted by Gary Fox at July 18, 2005 1:38 PM

Hugh;

I couldn't agree more. However isn't part of the commodity business speculation of factors like Gas prices.

PS Love your work. How to be creative keeps me grounded in many ways. Thanks

Posted by Gary Fox at July 18, 2005 1:43 PM

our comment on GM is quite on target. While GM stuggles to find the right buying stimulus by giving us all employee discounts ( sure they are), they have failed miserably to infuse the design excitement they have created in Cadillac into their other tired Chevy, Pontiac and Buick Brands.

GM is a corporation in need of total rebranding and repositioning at both the coprporate and divisional level. Ask a 20-something year old what Buick, Chevy, or Pontiac means to them.

Posted by Tom Feeheley at July 19, 2005 1:46 PM

(Full Disclosure: My parents both retired from GM)

While GM is definitely lacking in the Hybrid category, I have been very pleased with some of their new offerings. The new Chevy Uplander is a fusion of the SUV and the Mini-van while still maintaining decent gas mileage. I am averaging 19 MPG (a good mix of both highway & city driving) in my 7 seater that has a real center aisle (around 22" wide), and stadium style seating (each row is 2"-3" higher than the previous). It is also wider than a traditional van, thus it corners almost as well as my wife's Eagle Talon. Add in the DVD player, and we have a definite winner in my book!

In this vehicle, GM put experience design into good use.

I realize that 1 vehicle (still in the SUV mold) does not a revolution make, but when looking at the different van options out there, this one was head-and-shoulders above the competition.

Best of all, my 29-year-old wife enjoys driving a "van" for the first time ever (she always hated driving our last van) because it does not look like a van.

Check it out http://www.chevrolet.com/uplander/

On the fuel front, I appreciate what GM is trying to do (and Hyundai who just dropped several million dollars on developing a hydrogen distibution system), and I challenge the readers here to look at the Hydrogen cell as the innovation of the future and the hybrid as the innovation that is here and now.

Long term, I think we really need to move to something that is not dependent on other regions (China, the Middle East, etc.) I just hope that GMs gamble pays off for all of us.

Posted by Tony Brinson at July 25, 2005 5:18 PM

The reality is that any migration to a new 'ultimate' technology is a roll out process. (For example ISDN >> Optical) Hybrids are happening and they are happening right now. Honda and Toyota seem to lead here, but I think its far more than just a 'product' issue, but a market issue.

How many women buy GM? Look at all of the responses to this post - looks like all men (assumptive by first name.) GM could take a big lesson from either BP or maybe even Kaiser Permanente as far as makeovers go and learning to 'reach out'. I know BP still sells gas BUT every time I have to choose who's side I am on when it comes to purchasing my gas if there is a BP - they have my business. Why? Because they speak to me.

a stinky brand will take some time to be seen with brand new eyes. Reinvention is a process - (even for Madonna) but it can be done.

Posted by hollyjoell at July 27, 2005 5:01 PM