General Motors: Sales, Marketing, and Financial News

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Old 06-01-2006, 08:38 AM
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https://acurazine.com/forums/automotive-news-6/gm-offers-pay-part-gasoline-bill-california-florida-consumers-339869/
Old 06-01-2006, 10:33 AM
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not a repost...diff article
Old 06-01-2006, 11:32 AM
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Originally Posted by kansaiwalker1

"To say GM is like a crack dealer trying to get people to buy gas guzzlers is just patently ridiculous," GM spokesman Brian Akre said. "We sell a full range of vehicles, just like Toyota and just like the other large auto companies."
Uh, I know some crack dealers that sell bitches and hoes too...having a full line of "products" doesn't negate the fact that he's a crack dealer.
Old 06-01-2006, 12:27 PM
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Originally Posted by kansaiwalker1
....Influential New York Times columnist Tom Friedman -- author of the best-selling book "The World is Flat" -- took on GM in a sharply worded column Wednesday.

"Is there a company more dangerous to America's future than General Motors? Surely, the sooner this company gets taken over by Toyota, the better this country will be," Friedman wrote, comparing GM to "a crack dealer looking to keep his addicts on a tight leash" by offering the fuel program.

GM Vice Chairman Bob Lutz, who oversees the automaker's product development, said in an e-mail that Friedman "is so 'over the top' that it borders on psychosis."

Lutz said his hope "is that the majority of Americans, not being extreme liberals, and harboring a deep-seated distrust toward the media, will see his piece for what it is: the product of an unusual, but not altogether well, mind."
Old 06-16-2006, 10:27 PM
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UAW says more than 33,000 GM, Delphi workers take buyouts - - Reuters / June 16, 2006 - 7:00 am - - Source: Autonews.com

LAS VEGAS -- More than 33,000 factory workers at General Motors and former subsidiary Delphi Corp. have accepted buyout offers, exceeding early expectations, the United Auto Workers union said.

At a news conference on Thursday, June 15, to mark the end of a four-day union conference, UAW President Ron Gettelfinger said 25,000 GM and 8,500 Delphi workers had taken the early retirement incentives.

"I think it's going pretty well," Gettelfinger said. "I think it's a little better than we initially expected."

The number of blue-collar workers who accept the early retirement incentives has been closely watched as an indicator of the success of GM's turnaround efforts.

GM has offered a sweeping package of buyouts ranging from $70,000 to $140,000 to more than 125,000 unionized factory workers in a bid to reduce costly benefits for an aging work force.

The offer is on the table for consideration by workers until next week.

GM has not offered an official update of the number of its workers who have taken the offer, but company and union officials said in late May that the total had topped 20,000 then and was expected to reach 30,000 by the deadline.

Representatives of GM and Delphi were not immediately available for comment.

Reacting to a continued slide in its share of the U.S. market, GM has announced plans to shut 12 plants and cut some 30,000 jobs.

Gettelfinger, re-elected to a second four-year term this week as head of the UAW, said it was "critical" to resolve an impasse with Delphi over the efforts by the parts supplier to emerge from bankruptcy with a sharply reduced payroll.

But Gettelfinger declined to comment on expectations that the union was getting closer to a negotiated settlement with Delphi that would avoid a potentially devastating work stoppage for GM, the parts supplier's largest customer.

"I wouldn't make that statement," he said. "And I would have no further comment."

UAW READIES FOR CONTRACT TALKS

In the mostly closely watched decision of the UAW convention, Gettelfinger said he had appointed veteran union leader Cal Rapson to head negotiations with GM and Delphi heading into a crucial round of contract talks next year with all of the U.S. automakers.

Rapson has long experience with GM, going back to his hiring at a Chevrolet engine plant in 1965. He was involved in 1990 and 1993 contract talks with GM as an administrative aide.

Bob King, the UAW's most senior vice president, was given responsibility for negotiating with Ford Motor Co. as well as industrial parts suppliers.

General Holiefield, elected to his first four-year term as vice president, was given responsibility for talks with the Chrysler group.

Gettelfinger, 61, ran unopposed for reelection to a second term. His appointment of the three liaisons for the Detroit-based auto makers represented his first opportunity to put his stamp on the union's leadership team.

Under Gettelfinger, the UAW has shown a willingness to negotiate cost-cutting deals on health care U.S. auto executives have said were needed to stave off deeper financial problems.

GM and Ford have already clinched such deals. Chrysler is in talks with the union on similar concessions.

Gettelfinger also said the union's priority was to throw its weight behind Democratic candidates in November's Congressional elections and to focus on organizing efforts, a responsibility given to UAW Vice President Terry Thurman.

Earlier this week the union approved a shift of $60 million from its strike fund to help pay for organizing efforts.

"One of our priorities is going to be political because we recognize that our country does not have an industrial policy and that makes it very hard for the middle class," Gettelfinger told reporters.

Membership in the UAW has fallen below 600,000, its lowest level since the 1940s and down from a peak of some 1.5 million in 1979.

Old 06-16-2006, 10:51 PM
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at UAW membership numbers...

If this continues, maybe those douchebags in charge at the UAW might realize that the trend of people leaving will be permanent and that if they don't change their ridiculous ways, they'll lose all their membership and be completely defunct.

Seriously, these 33,000 workers that accepted the buyout may discover that their skills may not be sufficient to land them jobs elsewhere or that their skills aren't required in other areas. But I guess we'll have to wait and see.
Old 06-17-2006, 01:26 AM
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The membership roll decline is absolutely pitiful. The UAW is impotent. Ford and GM have been scared for much too long by this paper tiger.
Old 06-17-2006, 10:16 AM
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Originally Posted by CGTSX2004
Seriously, these 33,000 workers that accepted the buyout may discover that their skills may not be sufficient to land them jobs elsewhere or that their skills aren't required in other areas. But I guess we'll have to wait and see.
I heard that Ford plans to invest $9.2 billion into Mexico...illegal mexicans can come here to do my landscaping and illegal ex-union workers can go to mexico and continue to build crappy cars.
Old 06-23-2006, 04:34 PM
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It's up to 40K.

About 40,000 hourly workers have accepted buyout and early retirement offers by GM and Delphi, exceeding expectations, a United Auto Workers union local official said Friday.

http://abcnews.go.com/Business/wireStory?id=2111432
Old 08-18-2006, 11:18 PM
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6,300 employees will leave Delphi - - David Barkholz | | Automotive News / August 18, 2006 - 10:21 am - - SOurce: Autonews.com

DETROIT -- Delphi Corp. said today that 6,300 hourly employees represented by the IUE-CWA union, or 83 percent of those eligible, have agreed to early retirement or a buyout.

The attrition program, financed predominantly by General Motors, continues to relieve pressure for a strike at Delphi.

Earlier this summer, the UAW said nearly 13,000 of its Delphi members had taken a buyout or early retirement, with an additional 5,000 expected to transfer eventually to GM.

Delphi is restructuring its U.S. operations under Chapter 11 bankruptcy protection. The company, spun off by GM in 1999, has asked the U.S. Bankruptcy Court in New York to end its labor agreements with about 33,000 union workers because those workers' pay is about twice what Delphi's U.S. competitors pay.

On Thursday, Aug. 17, a hearing on the petition was delayed until Sept. 18 as Delphi, GM and the unions try to negotiate new agreements.

The UAW and IUE-CWA have promised to strike Delphi if the court terminates the contracts. The IUE-CWA is the International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers-Communications Workers of America.

A strike at Delphi, which supplies GM with about $14 billion in parts annually, would quickly shut down the automaker.

But the impetus for a strike is evaporating. Only about 9,000 union workers who started working at Delphi before the company filed for Chapter 11 protection Oct. 8 will be left at the company a year from now.

That is about the number the supplier will need to operate the eight plants it intends to keep open in the United States as part of its plan to emerge from bankruptcy in 2007.

Delphi plans to close or sell 21 U.S. plants and produce most of its parts outside the United States.

Delphi, of Troy, Mich., ranks No. 4 on the Automotive News list of the top 100 global suppliers, with estimated original-equipment automotive parts sales of $22.58 billion in 2005.
Old 08-29-2006, 01:48 PM
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General Motors Offers **Offers Cash Incentives on Some Models (page 1)**

GM Offers Cash Incentives on 2006 and 2007 Models Through Labor Day Weekend - - By AP - Source: biz.yahoo.com

DETROIT (AP) -- General Motors Corp. announced Tuesday that it will offer $500 to $1,500 in bonus cash on many of its 2006 and 2007 models.
The offer is good until Sept. 5, and in most cases, comes in addition to previously announced low-interest loan and customer cash offers.

The cash offer does not apply to GM's-hotter selling models, including the Pontiac Solstice; Saturn Sky, Aura and VUE Green Line; Chevrolet Corvette; the 2007 GMC Yukon/Yukon XL Denali; Hummer H1; and 2007 Cadillac Escalade.

The company is offering $500 in bonus cash on many of its cars, $1,000 on many of its pickups and car-based sport utility vehicles, and $1,500 on some of its truck-based SUVs.

Company spokesman John McDonald said the incentives are merely the company's annual Labor Day sale and not a sign that it is backing away from its strategy of trying to bring sale prices closer to the sticker prices.
Old 08-29-2006, 08:34 PM
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This is just the announced ones - there's probably more under the table money available to the dealers. At least they've done away with the 3-5K incentinves of yesteryear.

I noticed that even at the lowered CTS sticker prices there's some incentives - besides the fact that they are selling for invoice or less.
Old 08-29-2006, 09:32 PM
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There is a lot of room on the CTS, especially this year when the car is selling slower than last year.
Old 08-29-2006, 10:32 PM
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Originally Posted by gavriil
There is a lot of room on the CTS, especially this year when the car is selling slower than last year.
IMO The V6 CTS is overpriced when you compare it to a comparably equipped TL or G35.
Old 08-29-2006, 10:33 PM
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I dont want cash incentives, just give me the 72 month no interest deal on a Vette and I am getting one tomorrow.
Old 08-29-2006, 10:36 PM
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WTH is a Vue Greenline? I know there's a Redline...
Old 08-29-2006, 10:46 PM
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Originally Posted by phile
WTH is a Vue Greenline? I know there's a Redline...
Saturn's Redline is for performance; Saturn's Greenline is for hybrids.
Old 08-29-2006, 10:51 PM
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wow, never heard of the hybrid
Old 08-30-2006, 12:01 AM
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Originally Posted by gavriil
I dont want cash incentives, just give me the 72 month no interest deal on a Vette and I am getting one tomorrow.
Old 09-06-2006, 09:44 AM
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General Motors ups powertrain warranty to 5 years, 100K miles on all '07 vehicles

NEW YORK (CNNMoney.com) -- General Motors Corp., struggling to stop its continued market share losses and close the perception of worse quality with import brands, plans to announce an "industry leading" warranty offer Wednesday, according to someone familiar with company plans.

The company has announced that Chairman and CEO Rick Wagoner will announce "a major consumer initiative" at 1 p.m. ET Wednesday.

The company has suffered with customer perception of producing lesser quality cars than many import brands, particularly from Japan, even as some measures have shown that the quality gap has been closing faster than perceptions.

The latest J.D. Power Dependability study, which surveyed 48,000 owners of 2003 model-year vehicles to see how the cars fared three years after purchase put two GM brands, Buick and Cadillac, No. 3 and 4, respectively, in quality, ahead of brands such as Toyota, Honda and BMW. Lexus, the luxury brand of Toyota Motor, finished No. 1.

The lower perceived quality has caused GM to offer larger cash-back offers or other costly incentives to hang onto declining market share. But offering a longer warranty will also cost the company money as it struggles to trim losses from its core North American auto operations.

GM currently offers a 36-month, 36,000 mile warranty on most of its vehicles. Some Korean automakers such as Hyundai, which has also faced consumer perception problems, offers a 5-year, 60,000 warranty on just about all parts of its vehicles, along with a 10-year, 100,000 mile warranty on its powertrain.
http://money.cnn.com/2006/09/06/auto...ties/index.htm
Old 09-06-2006, 10:21 AM
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It would need to be 10yr bumper-to-bumper before they get my attention.
Old 09-06-2006, 10:38 AM
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Originally Posted by Dan Martin
It would need to be 10yr bumper-to-bumper before they get my attention.
ROFL, no one offers that man

5-60k B2B and 10-100k powertrain WOULD get mine though.
Old 09-06-2006, 10:57 AM
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Originally Posted by charliemike
ROFL, no one offers that man

5-60k B2B and 10-100k powertrain WOULD get mine though.
I'm convinced I could drive my TSX for 10 years without major problems, but I don't think a G6 would go that far without spending half its life in a service bay.

This extended warranty is going to cost GM more money down the road because their cars simply won't last that long. Personally, I'd rather them invest the $1B or so that it will cost them in added service costs into improving the quality of their cars before they leave the factory.

I guess GM hasn't quite learned its lesson on legacy costs yet. Yes, this might get sales up now, but it's going to hurt them in 5 years or however long they extend the warranty.
Old 09-06-2006, 11:44 AM
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GM to boost vehicle warranties - - Jamie LaReau | | Automotive News / September 6, 2006 - 10:00 am / UPDATED: 9/6/2006 10:48 A.M. - - Source: Autonews.com

DETROIT -- General Motors will extend vehicle warranties across all of its brands.

The new marketing move is expected win over consumers who have migrated to brands such as Hyundai and Kia, which offer 10-year/100,000-mile powertrain warranties.

GM executives consulted with auto dealers on the issue and are expected to announce this afternoon that starting today, GM products will come with longer warranties.

Some GM products will have a 5-year/100,000-mile warranty, while others will carry as long as a 10-year/100,000-mile warranty, a GM dealer familiar with the plan said today.

GM CEO Rick Wagoner is scheduled to announce a "major customer initiative" at press conference here at 1 p.m. today.

"You'll see a base-line long-term warranty," the dealer said. "And for the wearing-out parts, a more conventional warranty."

The dealer said GM also will stick to its competitive pricing plan of lower sticker prices that are closer to the transaction price. But the dealer does not see GM cutting incentives by much.

"I don't see the warranties and incentives going hand-in-hand," the dealer said. "GM will still use incentives wherever it's strategically appropriate."

GM discussed the idea with dealers for nearly a year. GM and its dealer councils favored the change to reflect their confidence in the quality of GM's products. Because of improved quality, "it's not a big risk or as expensive as" people might perceive it to be, the dealer said.
Old 09-06-2006, 12:38 PM
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Wonder if they will extend the bumper to bumper beyond 3 yr/36k?
Old 09-06-2006, 12:42 PM
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GM offers extended warranty on 2007 models - - Source: yahoo.com

DETROIT (Reuters) - General Motors Corp. (NYSE:GM - news) on Wednesday said it would offer a powertrain warranty of up to 100,000 miles or five years on all of its 2007 models, including those that have already been sold.

GM executives said they expected that the expanded warranty program would help the No. 1 automaker win sales against rival brands that have benefited from a better reputation for quality.

"This is a turbo-charger for closing the perception gap," GM's North American sales chief Mark LaNeve told reporters.

LaNeve said the new warranty offer would raise average sales prices for GM cars and trucks and help support the automaker's dealer network.
Old 09-06-2006, 03:36 PM
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Good shit GM. This is a great way to get over they're perceived problems.
Old 09-06-2006, 05:02 PM
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Originally Posted by titan
Good shit GM. This is a great way to get over they're perceived problems.
It definetly is a consumer perception problem that GM faces. If you look at the latest JD Power studies, many of GM's brands do very well. If my memory serves me correctly, this warranty is the best in the market. Hyundai's warranty isn't transferable.
Old 09-06-2006, 10:16 PM
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GM ups powertrain warranty to five years, 100,000 miles - - By Dale Jewett | Jamie LaReau | Automotive News / September 6, 2006 - 10:00 am / UPDATED: 9/6/2006 3:58 P.M. - - Source: Autonews.com

DETROIT -- General Motors is increasing the powertrain warranty on all its 2007 model vehicles sold in the United States and Canada to 5 years or 100,000 miles, the automaker said today.

The powertrain warranty is transferable, without a fee, and has no deductible, GM said. Previously, GM's powertrain warranty typically was for three years or 36,000 miles.

GM said the new warranty terms would apply to 2007 models already sold. The automaker is also extending the terms of its roadside assistance and courtesy transportation programs along with the new warranty coverage.

"This isn’t going to be cheap, but we think it’s going to be more effective for where we are today," GM CEO Rick Wagoner said at a press conference. "We think it’s manageable within the cost conditions we’ve laid out."

Wagoner said such a move is possible by the quality gains GM has made over the past several years.

"It was a lot more costly five years ago than it is today, particularly in the powertrain area," Wagoner said. "Over the past seven or eight years we’ve communized on powertrains, we’ve really had a chance to move the needle up on our quality and performance."

GM set up a web site -- www.gm.com/warranty -- with details of the program. Among the changes, the new warranty eliminates the $100 deductible on repairs for trucks equipped with the DuraMax diesel engine.

The move is a bid by GM to counter successful marketing of long-term warranties by competitors such as Hyundai and Kia.

In July, rival Ford Motor Co. increased the powertrain warranty on Ford, Mercury and Lincoln vehicles for 2007 models. The warranty is five years or 60,000 miles for Ford and Mercury vehicles, and six years or 70,000 miles for Lincoln vehicles.

"What we’ve found is that two-thirds of customers trade or dispose of the vehicle before five years and 100,000 miles," said Mark LaNeve, GM's vice president of vehicle sales, service and marketing. "This really matches the way customers buy cars."

GM will tout the new warranty coverage in an ad campaign that begins on Thursday, Sept. 7.

GM North America’s vice president of marketing and advertising

“It is our goal that every consumer in America would know there is something different happening at GM and that there is a new level of confidence in our vehicles,” said Michael Jackson, GM North America's vice president of marketing and advertising.

Warranty alone is not a reason for purchase consideration, Jackson said. But consumers do pay attention to cost of vehicle ownership and warranty is part of that.

“It is not just about fuel economy, warranty or monthly payment but about, ‘What will this vehicle cost me?’” Jackson said. “Cost of ownership is on the top of consumers’ minds, especially in markets such as Los Angeles and New York.”

Mary Connell contributed to this report
Old 09-06-2006, 10:16 PM
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Originally Posted by Dan Martin
I'm convinced I could drive my TSX for 10 years without major problems, but I don't think a G6 would go that far without spending half its life in a service bay.

This extended warranty is going to cost GM more money down the road because their cars simply won't last that long. Personally, I'd rather them invest the $1B or so that it will cost them in added service costs into improving the quality of their cars before they leave the factory.

I guess GM hasn't quite learned its lesson on legacy costs yet. Yes, this might get sales up now, but it's going to hurt them in 5 years or however long they extend the warranty.
You're way behind the times. They've been steadily doing what you suggested for the past 5-10 years, and there are plenty of domestic vehicles these days that are just as reliable if not more so than a lot of Japanese vehicles, including Hondas and Acuras. Go checkout the latest JD Power IQS and VDS studies, along with Consumer Reports magazine, and you'll see.

As Maximized stated, this is exactly the sort of perception problem that GM and the domestics face with consumers, who all believe they're still making the same crap they were 10+ years ago when it couldn't be further from the truth.
Old 09-07-2006, 06:53 AM
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Originally Posted by SteVTEC
You're way behind the times. They've been steadily doing what you suggested for the past 5-10 years, and there are plenty of domestic vehicles these days that are just as reliable if not more so than a lot of Japanese vehicles, including Hondas and Acuras. Go checkout the latest JD Power IQS and VDS studies, along with Consumer Reports magazine, and you'll see.

As Maximized stated, this is exactly the sort of perception problem that GM and the domestics face with consumers, who all believe they're still making the same crap they were 10+ years ago when it couldn't be further from the truth.
I don't need a JD Power study to tell me how shitty all of my friends domestic cars are.
2005 Neon: 3rd transmission and this one is starting to act up
2002 Saturn Ion: $5,000+ in out of warranty repairs (a/c broken, airbags spontaneously deployed, electrical issues, etc.). $5000 in repairs on a $10000 car and it's only been out of warranty for a year.
My family's 2000 Dodge Caravan: Dealer used parts salvaged from a wrecked car when installing fog lights, instead of the new parts we paid for. Sunroof poured in water like it had no seals at all -- seals needed to be replaced every 4 months because they would dry out and crack. Car just died at the side of the road 2 years into ownership with my mom, dad, sister, and grandma in it -- had it towed to dealership and it never appeared in our driveway again.

Initial quality is one thing, but long term reliability is another. Initial quality just means your workers were awake enough that day to screw together a car according to print. Long term reliability involves quality engineering and use of quality materials. I don't know what consumer reports article you're referring to, but I've got the September 2006 issue right here where they review small SUV's and not one domestic vehicle got above a "good" rating for predicted reliability. Every import was "excellent" or "very good".
Old 09-07-2006, 07:44 AM
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As DCX found out longer warranties don't translate to higher sales. DCX had longer warranties for 3 years and then went back to the standard 3yr/36k standard since it bought them nothing. The headline may say longer warranty but you'd have to read the details to see what it actually covers - kinda like some luxury makers claim "free maintenance" but many things are excluded while BMW includes everything even wear items like brakes.
Old 09-07-2006, 08:26 AM
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Originally Posted by Dan Martin
I'm convinced I could drive my TSX for 10 years without major problems, but I don't think a G6 would go that far without spending half its life in a service bay.

This extended warranty is going to cost GM more money down the road because their cars simply won't last that long. Personally, I'd rather them invest the $1B or so that it will cost them in added service costs into improving the quality of their cars before they leave the factory.

I guess GM hasn't quite learned its lesson on legacy costs yet. Yes, this might get sales up now, but it's going to hurt them in 5 years or however long they extend the warranty.
Your post illustrates GM's problem. Many consumers percieve the quality of their cars as subpar. They're cars don't last that long? That's simply not true. You mention spending money on improving the quatlity... they've already been doing that for years; that's why they feel comfortable upping the warranty. You don't think they've got a team of number crunchers making sure this won't cost them more mone in warranty costs?? C'mon man, think about it. They're warranty costs must be trending downward, and they feel they can make this change. This isn't a little marketing gimmick; changing the warranty wholesale like this is a big deal. Something tells me GM did it's homework on this and its not an overnight decision. Specifically, consumers who share you're view of GM's cars is exactly what they're trying to change.
Old 09-07-2006, 08:29 AM
  #394  
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Originally Posted by Dan Martin
I don't need a JD Power study to tell me how shitty all of my friends domestic cars are.
2005 Neon: 3rd transmission and this one is starting to act up
2002 Saturn Ion: $5,000+ in out of warranty repairs (a/c broken, airbags spontaneously deployed, electrical issues, etc.). $5000 in repairs on a $10000 car and it's only been out of warranty for a year.
My family's 2000 Dodge Caravan: Dealer used parts salvaged from a wrecked car when installing fog lights, instead of the new parts we paid for. Sunroof poured in water like it had no seals at all -- seals needed to be replaced every 4 months because they would dry out and crack. Car just died at the side of the road 2 years into ownership with my mom, dad, sister, and grandma in it -- had it towed to dealership and it never appeared in our driveway again.

Initial quality is one thing, but long term reliability is another. Initial quality just means your workers were awake enough that day to screw together a car according to print. Long term reliability involves quality engineering and use of quality materials. I don't know what consumer reports article you're referring to, but I've got the September 2006 issue right here where they review small SUV's and not one domestic vehicle got above a "good" rating for predicted reliability. Every import was "excellent" or "very good".
Out of the three cars you mentioned, only one was a GM product. Sorry to hear about the Saturn. My dad's '05 Suburban and my sister's '06 G6 have been problem free. Ditto for my friend's '04 Malibu and another friend's '04 Monte Carlo. It seems you're lumping GM's vehicles with all domestics... I'm not saying GM's perfect, but they should stand on their own.

Last edited by titan; 09-07-2006 at 08:33 AM.
Old 09-07-2006, 08:30 AM
  #395  
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Originally Posted by biker
As DCX found out longer warranties don't translate to higher sales. DCX had longer warranties for 3 years and then went back to the standard 3yr/36k standard since it bought them nothing. The headline may say longer warranty but you'd have to read the details to see what it actually covers - kinda like some luxury makers claim "free maintenance" but many things are excluded while BMW includes everything even wear items like brakes.


Unfortunately, that's what I think will happen here too.

Warranties are really nothing more than a marketing tool. When the costs of providing the extended warranty outweigh the increased sales, they'll drop the warranty quietly.
Old 09-07-2006, 09:14 AM
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Originally Posted by titan
Out of the three cars you mentioned, only one was a GM product. Sorry to hear about the Saturn. My dad's '05 Suburban and my sister's '06 G6 have been problem free. Ditto for my friend's '04 Malibu and another friend's '04 Monte Carlo. It seems you're lumping GM's vehicles with all domestics... I'm not saying GM's perfect, but they should stand on their own.
I agree. Other than a fuel pump problem, my '02 GP was fine.

I just hated it. I still can't believe I bought it. WTF was I thinking?
Old 09-07-2006, 12:13 PM
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Originally Posted by Dan Martin
I don't need a JD Power study to tell me how shitty all of my friends domestic cars are.
2005 Neon: 3rd transmission and this one is starting to act up
2002 Saturn Ion: $5,000+ in out of warranty repairs (a/c broken, airbags spontaneously deployed, electrical issues, etc.). $5000 in repairs on a $10000 car and it's only been out of warranty for a year.
My family's 2000 Dodge Caravan: Dealer used parts salvaged from a wrecked car when installing fog lights, instead of the new parts we paid for. Sunroof poured in water like it had no seals at all -- seals needed to be replaced every 4 months because they would dry out and crack. Car just died at the side of the road 2 years into ownership with my mom, dad, sister, and grandma in it -- had it towed to dealership and it never appeared in our driveway again.
And I could counterpoint you all day long with examples of people who have had nothing but problems with their Japanese cars. As if there aren't people on this very forum who are on their 2nd, 3rd, or even 4th transmission in less than 100k miles. People who have problems tend to complain about them, nevermind the majority of people that don't have any problems. When suddenly everybody is complaining (Honda crapmatics) you know something must be truly big. Individual sample points do not prove or disprove trends though. Because a ton of Honda/Acura owners complain about their junk transmissions does that make them all unreliable, or Japanese cars unreliable as a whole? No, of course that's nonsense. All cars have problems. It's just a question of what the problems are, how many, and how severe.


Originally Posted by Dan Martin
Initial quality is one thing, but long term reliability is another. Initial quality just means your workers were awake enough that day to screw together a car according to print.
Initial quality does not simply measure assembly quality. It looks at things such as ride, braking, handling, engine, tranny, exterior design, interior design, and a whole ton of other things relating to quality. All of that starts long before the first parts even enter the assembly plant during production.

Originally Posted by Dan Martin
Long term reliability involves quality engineering and use of quality materials.
And this is over simplified, but whatever.

Originally Posted by Dan Martin
I don't know what consumer reports article you're referring to, but I've got the September 2006 issue right here where they review small SUV's and not one domestic vehicle got above a "good" rating for predicted reliability. Every import was "excellent" or "very good".
I've been tracking automotive industry reliability trends for the better part of 20 years and there is a night and day difference between the domestics of 10-20 years ago and the domestics of today. You can no longer apply the "Japanese = good, domestic = crap" blanket statement and be taken seriously. There are plenty of reliable domestics these days, along with unreliable Japanese cars. And what happens when you have such a huge shift over time? The average shifts, so "average" 10-20 years ago and average today are talking about two completely different things. Apples to oranges. Back then then better than average and worse than average were oceans apart. Today it's more like a small pond and not nearly as big of a deal as it used to be. All it takes is a couple of relatively minor issues to sink a Toyota or Honda from top notch to average or below. That never would have happened even 10 years ago, because "average" was a much much lower point than it is today.
Old 09-07-2006, 12:59 PM
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All I can say is I have never known anyone in my family or group of friends who can keep a domestic car on the road for more than 5 or 6 years max. On the other hand, every Honda and Toyota I know has been bulletproof. My one friend just retired his 1987 Corolla last year and my sister just replaced her 1990 Civic.

I'm sure there are reliable domestics on the market, just as there are unreliable imports. But given the choice, I would take a Honda with a 3yr warranty over a GM with a 5yr.

If I can see a proven track record of reliability, then I'll get interested.
Old 09-07-2006, 01:19 PM
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Originally Posted by Dan Martin
All I can say is I have never known anyone in my family or group of friends who can keep a domestic car on the road for more than 5 or 6 years max. On the other hand, every Honda and Toyota I know has been bulletproof. My one friend just retired his 1987 Corolla last year and my sister just replaced her 1990 Civic.

I'm sure there are reliable domestics on the market, just as there are unreliable imports. But given the choice, I would take a Honda with a 3yr warranty over a GM with a 5yr.

If I can see a proven track record of reliability, then I'll get interested.
My 05 Mustang GT has been more reliable than my 2000 Nissan Maxima. Interestingly enough, my car has made 1 visit to the dealer for a TSB. My mom's 03 Lexus RX330 has been into the dealer 5+ times for various problems and recalls. Lexus is always on top of the reliabilty studies. Many people are just biased towards the domestic brands. The domestic brands have really strived to improve quality and reliability over the last few years and it shows.
Old 09-07-2006, 01:26 PM
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Originally Posted by Dan Martin
All I can say is I have never known anyone in my family or group of friends who can keep a domestic car on the road for more than 5 or 6 years max. On the other hand, every Honda and Toyota I know has been bulletproof. My one friend just retired his 1987 Corolla last year and my sister just replaced her 1990 Civic.

I'm sure there are reliable domestics on the market, just as there are unreliable imports. But given the choice, I would take a Honda with a 3yr warranty over a GM with a 5yr.

If I can see a proven track record of reliability, then I'll get interested.

My dad and his 2 latest caddies and olds aurora all had over 160k on them and the olds was the only car in the shop and it was only once for a faulty spark plug wire. I would say that the quality and reliability are pretty good. Beats my TL and its 5 trannies and bad ac compressor


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