Friday, July 25, 2008

brian's version of car talk - 1 of ?

i noticed more closely today while glancing at a full ad taken out in the wall street journal by general motors (GM) how much their marketing has turned away from price, performance, luxury, etc. & is completely focused on miles per gallon (MPG).

the advertising was clever because it only include MPG for highway miles - always read the fine print. according to GM's ad all of their trucks/suburbans are right at 20 MPG for highway excluding the escalade which falls just below the 20 MPG mark at 19 MPG. their saturn aura & pontiac G6 were the only two cars listed in the ad that were reported to get 30 MPG which for highway mileage isn't all that great considering what some models from toyota & honda offer.

it shouldn't shock anyone that GM is hurting right now. i heard a story on NPR last week discussing GM's move to cut insurance coverage for retirees. the article jokingly referred to GM as generous motors.

GM isn't going to get themselves out of this hole that they've dug for themselves with some clever ads. they need to begin building sensible vehicles that offer solid quality all around which includes good gas mileage. it's time for GM to remember what engineering & not marketing is all about.

4 comments:

erynchandler said...

alex's mom worked at GM for 20-30 years ( i just know it was a really long time) and has since retired and received healthcare for the rest of her life.

they are generous motors.....however, i hope they don't cut that program (for his mom's sake).

alex said he grew up thinking that all prescription drugs cost $1.......i freakin' wish!

Brian Kirk said...

i wish you would ask alex if his mom's benefits package has changed or is nearing a change. i would suspect for sure that it is based off the story i listened too.

health & retirement costs are really eating up the budgets of older firms such as GM.

Roland said...

No surprise, I think all gas guzzler manufacturers are starting to panic. Have you seen the local car ads? Trucks and SUVS that were selling for $35-45K are now selling for $25-35k. Wish I was in the market for a new truck now. On a similar note, I do wonder how they are doing in Texas given the fact that it is the number #1 selling truck market in the U.S. Interesting to see those numbers next year.

Brian Kirk said...

my neighbor works for covert ford. he said the trucks are still selling, however, the SUVs & larger car models aren't doing so hot.