Monday, August 3, 2009

Automotive sales raise

Car guys in charge of an auto manufacturer seems to be the key.
Ford once again has proved it, July sales raised on a Year over Year basis.
The Case for clunkers program was obviously part of the formula, but not the whole story. As mush as everyone loves to hate Ford, they do build a good product. They also seem to have figured out what to build; that would be what people want. Add to that an aggressive marketing program and, as the old saying goes, Bob's your uncle.

Too bad GM hasn't got an uncle Bob. Out of Chapter 11 and what do they put the push on? A Cadillac SUV, yah right that will sell well. GM has Lutz, and this guy has been around at GM for what seems for ever, you would think he would know better!
Why on earth would they take this approach? Seems the accountants are still in charge, you see it takes about the same amount of time, more or less, to build a luxury SUV as it does to build a lower end vehicle. Guess what, profit margin is much higher on the SUV.
Some more insight into their thinking; I spoke to a GM rep at a trade show years ago. Back when the Cadillac badged pickup was released. I asked him why on earth a pickup with this badge. The answer reveals a lot about how this company thinks, his answer; 'Cadillac buyers are a really dumb bunch, they will buy anything with a Cadillac badge on it. We could package shit and call it a Cadillac and call it automotive air freshener and those fools would buy it.' Not a direct quote, it has been a few years. OK, OK the same rule applies, higher profit margin, but that is one hell of a way to think of your customers.
This guy was a booth minder, sitting on a very low rung of the ladder, however he got that attitude from those above him, that is the way of company culture.
GM changing culture? Sure they are, listening to the people, of course, that it guys, keep flogging that dead horse.

next up? Cash for clunkers, but not today...

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