Talkin' Lutz

Bob Lutz, back from the Geneva car show, responds to the comments on a question he posed to his blog's readers a few weeks ago.

Here's what he said then:

But the deeper issue is this question of our image, and this perception that nobody’s interested in our products. We can and will do a better job of advertising and communications in the traditional sense, but we need to step up our non-traditional communications and word of mouth, and get our message directly to the people on a grass roots level. This blog is one example — but we need more avenues, and bigger ideas. What do you think?

That post drew over 300 responses, and Bob's impressed:

These are all good ideas. We are already studying several of them. But I was pleased to see that most comments were about our vehicles themselves. This confirms my lifelong conviction that what customers really want are great cars and trucks.

Well, here's the issue. If the problem is "image" the answer has to be more than just "product." That doesn't mean the answer doesn't include product...all the product-related changes recommended by readers and being dreamed up by Lutz and his designers are a key element in GM's turnaround.

But, in themselves, they may not be enough. Image. Message. Perception. Those are crucial elements in this effort. If they don't change, GM risks developing better "Betamax machines."

You remember Sony's Betamax? A superior quality visual experience when compared with VHS, but ultimately a loser because of the market's perception that VHS was the "winner," regardless of product quality.

So, you'll need to pay attention to the product and to GM's image, Bob. One without the other will not suffice. As you know, first you've got to get GM's products into the "consideration set" (the things that people even think about buying) before you can make the sale. The barrier there is bigger than product (like you said in your initial post) and the solution needs to be, as well.

Tags: GM Fastlane Blog Bob Lutz

Comments

[Jack Quinn]

Sales down?
Laying off people?
Getting harder to meet the bottom line, because of compettion?

QUIT building ugly, over-priced cars, believe it or not, their are some people in the U.S. that don't make $100,000 or more a year, and they want a sharp, reasonable priced, RELIABLE, car that they can be proud of.

With all of your designers, and years of experience as reputable car manufactorer, you come out with the Lucerne (Chrysler reject?) the only saving grace GM can still be proud of is their Trucks,well, almost(COLORADO?), the HHR, finally a vehicle with a little style and a good price, and their Equinox SUV, all others fail.
Wheres the good ole Chevrolet style, price point, and the looks from your neighorbors when ya drive up in your new GM car?? GONE?

[Doug Knapp]

I was a GMATS (General Motors Air Transport Pilot) starting in 1948 & Chief Pilot from 1965-77. I flew most all the hard working Executives. During that time the Vice Presidents of the separate divisions made many of their own decisions and your didn't have to go though a 100 people to get things done or pay for union people when laid off for not working which I now think is up to a year. Go to the table & tell the unions to get real. Furthur, I have lost most of the nest egg I had in GM stock. I still have more shares than many of the Directors who in looking at their qualifications are mostly non-auto persons. How can they make important decisions without understanding the industry. I currently winter in Texas and see mostly foreign makes down here and mostly their advertising. What is wrong?? We need guys like you, Mr Lutz and get some more Harly Earl's and put some PZAZZ back in this company.
Thank you, Doug Knapp

[Gordon Kerr]

Dear Bob, the biggest crowds at the Chicago auto show were around the Camaro concept, 6 deep all day compared to 1 or 2 two deep at the Challenger, itself a really good concept to reality car. As I stood there looking at what my '67 Camaro would look like if I could buy it today with modern engine, trans and suspension, I kept wondering why most modern car shapes are so lifeless and unappealing, even Toyota, Lexus and Honda. So my modest proposal would be to list the best looking cars that GM built from about 1948 through 1972, including 49-51 Olds, most 55-57 GM's, 64 Impala etc. etc. and ask why you can't re-skin your current lineup with close cousins of these winners. The only memorable car I could list post '72 would be the 76 to 80 Seville. The rest are not memorable, and not worth repeating. If there is a fundamental undercurrent to resto rods it's that these shapes and styles are timeless, and with modern underpinnings they're worth the hard work, to a few, of building by hand. So why not start Fisher Body again, or a better named equivalent, to put great shapes on top of great GM chassis, engines etc. Every component part built by GM today is lighter, more reliable and stronger than any previous generation of parts. Better shapes sell, better cars keep selling.

Gordon Kerr, still able to recognize tail light shapes from the fifties at 500 yards but unable to tell GM models apart today

[Edward L Miller]

I am a retired salary employee who would love to see GM gain strength in the auto business. Currently I understand 0% financing will be offered which is the same story for other auto companies. Why not a loyalty rebate, if you keep your new GM automobile for two years a $3000 allowance will be applied to your next GM automobile. This way you are staying with the GM family and the rebate is applied at a later date.

[Dr. Harold Elam Jr]

To whom it may concern, my name is Dr. Harold Elam Jr, Business Development & Community Relations Director for Central Carolina Auto Group……Family Of Dealers. I writing you today concerning your current position, and recent posted losses for General Motors, I'am not an analyst or a savior of companies. I wanted to release to you a proposed method for increasing your profit margin immediately, I know you have on your team years of experienced and High Paid executives whom you have employed to help you maintain your day-to-day operations. I am not searching for employment, neither looking to step on any corporate toes, I want to earnestly help you implement a more effective series of automotive processes and procedures that give you almost immediate relief from your current domino effect of losses. I have over 10 years of True Automotive Experience, with five of those years being directly related to The Internet and Virtual Automotive Development. I have been in constant study of the world-wide web as it relates to the Automotive Industry, and through my extensive research, and through trial and error have created a method called SCD (Systematic Concept Duplication), a process that creates a residual based flow of quality traffic to your websites collectively, and manages the opportunities through a virtual follow-up process that generates real people who can and will purchase your product. The method is currently being utilized through Central Carolina Auto Group, and accounts for more than 30% of their New Car Sales, and more than 40% of their pre-owned inventory.

SCD is not some computer software or hardware that has to be purchased or installed, it is a human managed series of Strategic Automotive Processes & Procedures that are simple, innovative, and effective. I know the method works, and will work for General Motors Company…on a corporate scale, this process can be implemented into every one of your stores at the dealership level that would excite the local market place and put GM in front of the competition. I am only asking for the opportunity to tell you more about SCD and Automotive Business Development, I will not give you a long drawn out list of statistics, reports and facts about how profitable the Internet & Business Development has become, and how it will make up the New Money in the Automotive Industry. I just want the opportunity to tell you more, and consider a more effective way to cut advertising cost through traditional venues, such as TV, Radio, Newspaper and Direct mail. SCD puts you in front of people, keeps you in front of people, and it allows them the chance to really understand how much better your product is(perception) but it works. The only question that should arise in your mind, is What Do We Have To Loose?

Please I encourage you to forward this email to the appropriate people, that they may have the opportunity to at least review and consider the proposed method.

[Dr. Harold Elam Jr]

What Is SCD?
Systematic Concept Duplication)

Systematic Concept Duplication is a created science for target marketing, it consist of a series of strategic processes and procedures, that all have their individual identities and already established proven functions, yet operating in sync as one concept. SCD means having a corporate strategy for ensuring that your company realizes their full potential. It is an overall strategy that begins by placing all consumers at the center of everything your company does. SCD also involves employing practical techniques and strategies that will improve all of your business processes.

The end result is to make your existing Corporation-

More profitable
Be a more enjoyable place to work
Have happy contented customers that come back again and again....with their friends

Applying SCD....to your industry

Innovation and customer service is essential in this era of the expanding automotive and customer service industry. Automotive sales, technology and customer service must be consolidated. In good times or bad, your company, its employees, and affiliates must continue to refine their focus in this ever-changing customer friendly virtual environment. SCD for the automotive industry will help define clear goals and the plans to achieve them. The implementation of our Automotive Processes & Procedures will excite the market place with aggressive, bold, and always effective tools that have been tested, proven to be effective and are now ready to be put into place to make your company that much more successful. Automotive Business Development is defined as;

"Taking What You Have And Making It Better"

The Goal.......SCD 10 Steps To the End-Result

Deliver Online Customers
Handling All facets Of Advertising & Marketing
Making Business Development Profitable
Keeping & Growing Your Customer Base
Turning Leads Into Prospects
Controlling The Web-Driven Environment
Strategic DMS Integration
Automotive E-marketing
Power Follow-Up Programs
Virtual Prospecting

SCD involves the human element, the mindset of the people, and the ability to show them a better way. We have taken successful processes and procedures from various industries, integrated them with the ABC's of the Automotive Business, always getting the same end-result. The entire concept is designed to be implemented into the everyday procedures of those key employees who play an active role in the current and continual success of your company.

The following departments are normally created to function as separate identities, SCD combines these departments to make a well-organized machine operating to achieve the same goal, the same End-Result.

Business Development Department
The Internet Center
The Call Center
The Tracking Center
The Customer Relations Center
Marketing & Advertising

The System..........

Simplicity quickly defines the system that will be created around your goals and expectations, your company's end-result. The key principals of SCD as applied to your company will include a group of automotive, guest relations and sales elements forming a complex whole. Training, Technology and Merchandising begin the applied concept, there is no one rule or starting point for SCD, it is very conformable to almost any already applied process. Change is never the goal, because with change, you always get resistance, and that will cause a waste of valuable time. A detailed, yet quick assessment and interview of key employees, their departments, their functions and their goals are made. We take what you already have and make it better, by creating better people through their own already established processes and procedures.

SCD must become the key to the driving growth of your company. Only when every point of sales, service and customer contact is finely tuned, can you build loyalty, the key to growing your company. SCD's Automotive Business Development transforms the culture of your dealerships into a smooth machine geared to capture, control and manage customers and grow your bottom line. Though we have the knowledge to generate, build and manage, our industry lacks the ability to manage processes and procedures, we start but truly never follow through.

The virtual world continues to grow in and around the automotiveindustry, Automotive Business Development (ABD) helps control the growth and capture those customers who are searching the web for service, finance, and/or sales and have chosen your dealerships. Today's consumers spend more time researching information on the internet about their next purchase.

The Concept..........

Application is the key ingredient to the concept of SCD, once there has been a detailed introduction, overview and assessment, the concept is applied to the dealer's already established routine through Key employees. The concept is defined as, evaluate, update, eliminate, and replace effective methods from other industries into the daily routine of your key employees, and allowing them to benefit from the results. There must be a quick and effective integration into your already established departments that include the internet, Business Development, and guest relations, turning your dealerships into an internet savvy environment, without changing the culture.

True success through Automotive Business Development involves, first the leader's goals and expectations for their dealerships, their employees, and their individual departments. ABD allows for the leader to duplicate their efforts directly into their key employees, the environment, the mind-set and expectations of all guests. Our industry already knows what to do, but without application through the human element, everything that we have utilized in the past becomes worthless. SCD allows for value to be created within your environment, replacing the thinking, the verbiage, and attitudes of key employees, with innovative thinking. Always allowing your dealership the ability to adjust any situation to your advantage. Creating a recession proof business, that will profit in good times and bad, regardless of the season. The End-Result will become, A Residual Flow Of Quality Traffic.

SCD maintains a balance between the thinking of your employees and the expectations of your guest. Unfortunately, people have attitudes, but through SCD applied concepts, your people will take on a new attitude and method for handling almost any situation. They become constant thinkers, taught to utilize their Reticular Activating System, in turn creating in your dealerships a network of Ah Ha's...that will establish the How To...as they go along.

The Reticular Activating System is the attention center in the brain. It is the key to "turning on your brain," and seems to be the center of motivation.