If this is GM's strategy for success, start shorting their stock IMMEDIATELY!

AutoWeek is reporting that these are the five key strategies that Rick Wagoner is banking on to save GM.

1. GM's big trucks will succeed.
2. Saturn will thrive with a bigger lineup.
3. New crossovers will be big sellers.
4. GM can fix -- not kill -- its damaged brands.
5. GM can kick its addiction to incentives and embrace value pricing.

We will examine and predict the outcome of each of his predictions, then list our solutions to the problems at GM.

Of course you won't see these predictions elsewhere because all of our competitors are a bunch of candy-ass chickens.

GOD forbid they get excluded from the free GM junkets or they lose ad dollars.

So here's the Spies take on the situation and our perspective on their chances of success.

1. GM's big trucks will succeed- This is the most important component of the strategy and we can predict with certainty that GM will be LUCKY to even maintain current levels of sales with the new products.

People will not forget the gas volatility anytime soon.

The new products are slightly better than the previous offerings but in our opinion when you're fighting for your life, that's not good enough. In today's game, you need to blow everything else away in your segment to win big. They didn't.

2. Saturn will thrive with a bigger lineup. READ OUR LIPS-Never going to happen!!! Too late for a turnaround here...cut and run.

3. New crossovers will be big sellers. This is the only component in the big picture that we think has a chance. These babies better be REALLY good.

4. GM can fix -- not kill -- its damaged brands. The hole is already in the balloon and it's too big to fix.

5. GM can kick its addiction to incentives and embrace value pricing. I have a better chance of doing Gisele this holiday season than this succeeding. People are becoming more and more sophisticated shoppers. Look how they outfoxed retailers on black Friday and how sales have dropped the minute the $100 plasma deals went away. The ONLY way for this to work is having great products in the dealers (take the Acura tl for example) that people see as an unreal value for the money. GM has nothing of that caliber sitting on a showroom floor.

Here's the Spies strategy to fix GM (if it's even humanly possible).

1. Immediately look at all the competitive vehicles from Honda and Toyota and price all existing inventory 30% below them. Yes, the stockholders/board will freak and they will lose tons of dough, but this is the only hope to stop the bleeding in the short term.

2. Get a new Camaro/Trans Am out quickly to reverse the 'Mustang' effect.

3. Get a large sedan with a killer design on the market to compete with the 300c. Make a version for Cadillac, Buick and Chevrolet. And make it fast!

4. If the crossovers are as good as they say they are, then full speed ahead with the plan.

5. Fire the entire management team, board and union heads. And take away THEIR retirement and benefits.

Too harsh you say? You're lucky I'm not recommending Hare Kari or Alcatraz.

They deserve worse.

Ebenezer Scrooge hurt less people during his heyday.

If you can't think your way out of a problem, don't tell the world the only fix is dumping people.

Do you see Toyota’s CEO saying they have to cut staff? NOT!

rand0m - 11/30/2005 11:42:13 PM

+1 Boost

1)kill saturn. NONE of their products are appealing in the least.

2)give pontiac its own cars instead of rebranding every chevrolet, that is retarded. If you won't do that, then you might as well kill it

3)I agree with the spies 110% on the trans am/camaro thing. What is wrong with them??? They should have had a new one out 2 months after the Mustang, with more power, better design, and better pricetag.

4)If you are going to start having Japanese-styled cars, atleast do the look the right way. Lexus, Toyota, Nissan etc are all popular because of their eye catching designs. Get with the program GM you are so far behind.

5)Compete with the 300C by doing what chrysler did, take a $300,000 car's design and sell it for 1/10th of that.

6)Add some attractive packages instead of going from cheap plastic to cheap aluminium interiors as an upgrade. Also add some stylish rims instead of the dull ones that everybody wants to replace off the floor

janos2769 - 12/1/2005 12:22:24 PM

+1 Boost

I think it's too late to save GM. It has waaay too much negative momentum Vs. soooo much positive momentum from the Japanese. Heck, Toyota was even offering to increase prices to 'help' GM!. The only way that GM would survive at ANY level - be that a tiny OEM - is to kill most of its brands except Chevy and Cadillac, one economy and one luxury... not to even mention Union issues.

So, to be more than just a little player, why not merge with Ford? (I know, that's like saying let all NY Rangers fans kiss and make up with NY Islanders fans). Consolidate, save strengths, kill weaknesses. Does not sound good but its either a radical solution or the end of the American Auto industry in 10~15 years.

phantom330 - 12/1/2005 1:04:16 PM

+1 Boost

I think Ford and GM are both on a downward spiral, I'm predicting bankruptcy for GM in the next 10 years if things don't change.

mkk21 - 12/1/2005 3:10:00 PM

+1 Boost

Thanks autospies for saying it so bluntly. I can't stand those sites that are all too nice. Time for a change.

MercBasher - 12/1/2005 6:42:42 PM

+1 Boost

Congrats to AutoSpies on coming forward with some good ideas. I differ only in minor details on what GM should do. Here are a few ideas (i.) instead of cutting prices 30% do "two for one" - if you buy one of the new full or mid-size trucks you get a Chevy Aveo, Cobalt or Malibu for free (ii.) List all the major investors in GM on Autospies and include contact information - if we all write to Fidelity, Vanguard et al, maybe we can get them to oust the entire GM leadership team (iii.) Hire Ghosn (iv.) Take the wraps off most of the new product development portfolio. Create an "American Idol" type show where the public votes on different styling concepts for new GM models. That way the winner will have more public buy-in and familiarity.

UYPeterson - 12/2/2005 1:26:14 AM

+1 Boost

When Audi and Hyundai were desperate for customers, they did something desperate -- they improved their warranties. It wasn't that long ago that most car buyers wouldn't consider those brands. After Audi instituted the 3 year/50,000 mile warranty with free maintenance (including brakes), their sales increased. When Hyundai offered their 5 year/60,000 mile bumper-to-bumper warranty and 10 year/100,000 mile powertrain warranty, their sales likewise went up. The rest is history. The message sent was that Audi and Hyundai will take care of their customers. GM has neglected its customers over the years with shoddy workmanship, endless recalls, questionable collision performance, poor customer service and pitiful resale value. It is unfortunate that the facory workers have to pay for the poor choices of ineffective management, hamstrung engineers and unmotivated designers. Except for a select number of products, GM products are not innovative. The company gives potential customers little reason to believe that if something goes wrong, they'll be taken care of the first time, every time. What should GM do? Show the customer that they are wanted and that they will be taken care of.

1. Superior warranty coverage and dealer service should be a permanent part of GM's brand identity. Institute a no-hassle 5 year/60,000 mile bumper-to-bumper warranty that includes free maintenance on everything, including brakes, rotors, tires and batteries. Institute a 10 year/100,000 mile warranty on specific parts of the engine, transaxle, braking, suspension and electrical systems. Include roadside assistance for 100,000 miles, even if the car is 20 years old. Institute a 150,000 mile warranty on the emissions system with an acceptable time limit. Institute a vehicle lifetime warranty on the original seatbelt and airbag systems. If a deployment occurs, or the car is salvaged, this warranty ends. Put OnStar on all GM vehicles and keep it active for the life of the car at no cost. The warranty should be fully transferrable with no red tape, deductibles or other BS. It should take place the moment it is announced for unsold new vehicles in inventory, retroactive to purchases made the day GM announced the layoffs, not just for 2006 or 2007 model year vehicles.

2. A price decrease sufficient to sell existing inventory fast should be instituted for current vehicles. Disgraceful vehicles like the Buick Rendezvous and most Saturns should be sharply reduced and immediately discontinued.

3. Saturn should be axed. It will need too much money to fix. I never thought a plastic car would ever exist until I saw the Ion. I thought the Aztek and Rendezvous were bad. When one thinks of all the engineers, stylists, managers and marketing execs involved with THAT....

4. All future vehicles need to be engineered with the passion, determination and dedication put into the Corvette.

5. They need a hot advertising campaign along the lines of Nissan/Infiniti and 1990's Lexus.

If GM doesn't start to act like they're sinking fast, they will end up like the Titanic in 5 years.

SteveL - 12/2/2005 12:52:15 PM

+1 Boost

I agree with Auto Spies. The management at GM is a joke. But does GM listen to Auto Spies or anybody else that has a clue. It sire does not look like it.
GM needs to get new blood. people that can think outside the box instead of people who live in a box.