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!