the air

A little over a week ago, I wrote about the possibility of Toyota overtaking GM as the world’s largest automaker. However, the one question that I did not really explore was “what is wrong with GM?” Furthermore, it is important to understand what differentiates GM from Toyota. Surprisingly, the root of the problem is not quality or workmanship. Rather, the root of the problem seems to lie with the fact of who runs the company. This article talks about a first hand negative experience with GM vehicles. In addition, the writer goes on to talk about the failure of GM to properly recognize mass market demand.

To keep it simple, GM is mostly run by accountants and marketing. They have a great ability to paint flowery images of their lackluster products while doing their best to push volumes out the door to try to earn some meager profit. Antithetically, Toyota is run mostly by engineers, people who are able to recognize the needs of their target consumers and develop products that cater to their exact needs. GM has also banked on producing niche vehicles such as the Hummer and Escalade. Both of which are classified as gas guzzlers and notorious for putting a large dent in their drivers’ wallets. In addition, GM seems to focus on vehicles that seem to be too specialized and not enough that most consumers want.

Look at GM’s introduction of the Pontiac G6. This vehicle was designed to replace the aging and somewhat successful Grand Am.

Thanks to slushy steering, the car meanders all over the road.

Among several other design lapses: a clunky shift-lever whose settings are unlit in the dark, pull-up door locks located in hard-to-reach places, the absence of exterior key locks on doors other than the driver’s. This last omission would be less annoying if the master lock on the driver’s door unlocked the other doors (as it does on comparable imports). But GM does not include that feature.

And let’s not forget the G6’s most prolific event:

This was the car launched with a stunt hailed as one of the greatest product-placement coups ever. In September 2004, GM paid Oprah Winfrey an estimated $8 million to give all 276 souls in her studio audience a new G6. For several raving minutes, Oprah endorsed the product.

The question remains whether or not GM can turn around their failing image and lackluster lineup of vehicles. I think that GM can easily recognize better numbers and better image if they allow those who understand consumers to run the company. The company should not simply be focused on numbers but rather look at what the consumer wants and cater to those wants exactly. GM should spend some more careful time studying the competition and understanding what the competition does highly successfully. I strongly think that if GM’s corporate culture was towards helping the consumer and not about painting nice pictures, GM can see more success. Regardless of what I may think or say, GM definitely is in trouble and should rethink its corporate planning strategies.

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