General Motors Company (formerly “Corporation”) today is a shadow of its former self. It sells fewer models through fewer brands since its bankruptcy in 2009. It is reconstructing itself and building itself into a competitive and profitable car company. That transformation appears to be going very well.
Over the years, however, General Motors has often tried to be a trailblazer (no pun intended) in new vehicle design and development. Many of these vehicles failed, but we believe GM deserves a tremendous amount of credit for trying where other companies did not have the creative thought or resources to make a “segment breaking” product. Here are some examples…
Women owning HUMMERs have a strong affinity for ten consumer brands in the USA.
AutoPacific’s Research Suite database that annually collects the opinions of over 30,000 buyers of new cars and light trucks asked which of 27 brands a new owner would buy from. The results from AutoPacific’s Consumer Brands Study clearly show the interrelationship between owners of auto brands and buyers of twenty-seven consumer brands like Walmart, Lowe’s, Apple, Sony, Hugo Boss, Costco, McDonalds and more.
What the study shows is that you likely won’t find a Porsche driven by a woman in a Walmart parking lot, but you are likely to find a Land Rover driven by a woman at an Apple Store. Using these data AutoPacific can develop clear profiles of the dynamics between these auto brands and consumer brands.
Looking only at female buyers, HUMMER buyers were most likely to shop at Lowe’s, Old Navy, The Gap, Walmart and to buy Coca Cola, Levi’s, Axe, LG, HP and Hugo Boss.
The only other brand that came close to HUMMER gals was Land Rover. They were tops in Polo, Methoc, Sony, Gucci, Hugo Boss and HP. They were also in the top five among Trader Joe’s, Whole Foods, Apple, Starbucks, Costco and Louis Vuitton shoppers.
General Motors’ June 1 bankruptcy declaration was quickly followed by the announced sale of HUMMER to China’s Sichuan Tengzhong Heavy Industrial Machinery Company (June 2) and Saturn to Roger Penske’s Penske Automotive Group (June 5). Having the futures of both of these brands out from under the General Motors umbrella can give many American dealerships and their communities cause for celebration.
Are we nearing the end of Chrysler? Or the beginning of a new blended family? Or just another day at the rumor mill?
Late on Friday, the first stories began appearing about GM and Chrysler in possible merger talks. And at least in Detroit, dominated the weekend news cycle. GM’s stock went up this morning, but given that the Dow was up 5.6% and GM went up only about 3%, the stock bump might have happened without merger talk. GM closed on Friday at $4.89, a number some say is actually less than the company would be worth in capital assets alone.
All of this merger talk, whether these deals are realistic or not, does nothing good for public perception. The economy is weak, last week’s events on the stock market don’t reassure anyone, and talking about GM and Chrysler perhaps needing to merge to survive only further erodes confidence in American business. While GM and Chrysler LLC, as well as any other maker in trouble right now, needs to consider even unthinkable options and test our common assumptions as they get out of this trouble, this merger does not inspire hope.
I recently got a chance to spend a weekend driving the Hummer H3. Needless to say, I was very excited! There is just something about the looks of the vehicle that says, “I can conquer the world”…or at least my suburb. The H3 looks pretty macho with its mil-spec styling cues, despite it being the downsized junior of the Hummer lineup. Overall, the H3 lived up to my expectations initially, but ultimately reality set in regarding its lack of practicality and ease of use for everyday errands and life. It must be noted that I never took the H3 off-road, which is the vehicle’s true strength. Rather, I used it in the context that most Hummer products are used – around town, in the ‘burbs, on freshly paved roads.
Following General Motors’ Board of Directors meeting on Monday, Rick Wagoner dropped the bombshell that the Corporation was considering closing HUMMER, selling HUMMER or completely revamping its product line. Any of these drastic steps could dramatically impact the vehicle fleet on a small 46-home hilltop enclave in Orange County, California.
Among those 46 homes there are seven HUMMER H2s. One family has three H2s with two drivers – two H2 SUVs and one H2 SUT. Clearly these big, thirsty SUVs were purchased before gasoline topped $4 per gallon, but I don’t see folks rushing to replace their H2s with Kia Rios either.
Being as image-conscious as Orange County is, it will be very interesting to see how social pressure to drive something more fuel efficient will impact the hilltop H2 crowd. If it turns out that after months of super-high gasoline prices H2s are not cool anymore, will these folks conclude – as it appears GM has – that they should replace their HUMMERs with something more socially responsible?
Escalade Hybrids anyone?
Cadillac Top Brand, Mercedes-Benz S-Class Top Car, Toyota Sequoia Top Truck and Top Vehicle
Tustin, California, May 29, 2008 – A study released today by noted automotive consulting firm AutoPacific, Inc
. summarizes the results of its 2008 model year vehicle satisfaction research. AutoPacific’s Vehicle Satisfaction Award (VSA) is an industry benchmark for objectively measuring how satisfied an owner is with their new passenger car or light truck.
In a year that promises to be the toughest in a decade, owner-based awards like AutoPacific’s Vehicle Satisfaction Award will help customers make their purchase decisions.
The brand with the highest satisfaction rating is Cadillac. The vehicle – car or truck – registering highest overall satisfaction in 2008 is the new-for-2008 Toyota Sequoia Large Sport Utility Vehicle. The passenger car with the highest overall satisfaction score is the Mercedes-Benz S-Class.
There are twenty-eight Vehicle Satisfaction Award categories. At the manufacturer level, multiple top ranked award winners include: General Motors
(eleven categories), Toyota (nine categories), Ford (six categories), Volkswagen
(four categories), Honda
(three categories) and Hyundai
“Cadillac wins the Vehicle Satisfaction Award as the top brand in a close race. Strong satisfaction performance by Cadillac cars and trucks has Cadillac winning over other leading luxury marques including Lexus, Mercedes-Benz, and BMW says AutoPacific president George Peterson. “Top ranked finishes by Cadillac’s Escalade, CTS and DTS helped cement their industry topping position.”
Peterson continues, “Vehicles that are all new received top rankings in several categories: Cadillac CTS, Honda Accord, Mitsubishi Lancer, Scion xD, Toyota Sequoia, Audi Q7, Buick Enclave, Hyundai Veracruz, GMC Acadia, Saturn Vue and Nissan Rogue. These new-for-2008 vehicles were strongly rated by their owners showing that the industry continues to improve as new vehicles are added to the hotly contested American car and light truck markets.”
From a vehicle type perspective, Traditional Sport Utility Vehicles received the highest ratings as a class closely followed by Crossover Sport Utility Vehicles. Peterson says, “Clearly, SUVs continue to be one of the most popular and satisfying vehicle types available in the USA today. Even with skyrocketing gas prices, SUVs are attractive and Crossover SUVs fill the bill for most SUV buyers with better fuel economy.” Cars scored slightly below industry average followed by minivans and pickup trucks.
Long a car-sick motor head, over the years I’ve cultivated a rather ecclectic (and quite strong) list of likes and dislikes in the vehicles I have owned. Lots of overpowered coupes and sedans, a couple of oddball oversteering rear engined cars with more power than their engineers had envisioned when first they set pencil to paper, and only a single vehicle that could be categorized as a truck. And a pretty poor excuse for a truck at that.
Recently, after discussing favorite “Guilty Pleasure” films with some journalist pals, the topic turned the concept of Guilty Pleasure vehicles. Vehicles you like (or would like) to drive but would never admit it to a friend. At the top of the list were those small, innocous, underpowered economy cars that can be driven at ten-tenths all the time without raising the ire of police or other drivers. Why precisely these came up first is of some small concern to me. Perhaps I need a new set of journalist friends, but I digress.
Next the subject of traditional big American Iron came up. As in large, V8 rear-drive cars with primitive solid axle rear suspension systems better suited to buggies or heavy duty pickups than 21st century land transport. Nothing of any collectible interest or classic in nature, we’re talking about post 1985-metal. At the risk of trading in my VehicleVoice correspondent credentials and my AutoPacific analyst pass, the first of my automotive Guilty Pleasures comes to light, the Lincoln Town Car.
SEMA’s H3 Street Concept Becomes New-for-2007MY H3x.
At the 2005 SEMA show, Hummer displayed a special H3 called the Street. This has translated into a production model due on showroom floors in mid-2006. Though an off-the-shelf package, the H3x works to attract buyers who want a custom look without the extra effort. H3x takes the H3 Luxury package and adds chrome tube steps, the chrome appearance package, and a chrome fuel door. H3x also wears a body-color grille and spare tire cover, a brush guard, and unique tires, wheels, and center cap. The interior is the same as other H3 trim levels, but adds embroidered headrests. Buyers can customize their H3x by their interior and exterior color choices, which include the whole eight exterior and three interior color palette on the H3.