Analysts: Say hello to the new GM, same as the old GM [w/VIDEO]
GM explains "New GM" in new commercial – Click above to watch video after the jump
Remember the old General Motors? Too many brands, too many models, advertising campaigns that petered out too soon, and multiple products competing for the same buyers. That's changed, officials from the new GM say, promising a leaner lineup of four brands and just 25 models by 2011.
But automotive analysts quoted by Advertising Age say that's a good start, but critics say the automaker's weight loss plan needs more fiber and less frosting. First, the still-huge GM hasn't enough cash to properly market even four divisions, one expert says, citing Honda-Acura, Toyota-Lexus and Nissan-Infiniti as examples to follow. Three analysts recommend GM hold on to just Cadillac as the premium brand and Chevrolet as the mainline marque.
Then there's the company's marketing plan. Dump the GM name from ads, analysts told AdAge, and just sell the cars. "They shouldn't even identify themselves as GM. People don't buy GM cars; they buy Cadillacs and Chevys, and that's what they ought to be talking about," auto consultant Maryann Keller tells AdAge.
AutoPacific's president George Peterson has another issue with GM's marketing strategy. He points out that the company spent more than $100 million to launch the new Chevy Malibu in 2007, but it hasn't advertised the car in nearly a year. "It seems like they are going back to their old ways," Peterson said.
[Source: Advertising Age]
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Reader Comments (Page 1 of 5)
The Other Bob 11:37AM (8/17/2009)
I agree that they should not be marketing "GM". Frankly, I think they should have dropped the name and put everything under Chevy, just as Ford, Honda, Toyota and everyone else does.
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Mr.Oak 11:43AM (8/17/2009)
Does the word SCION ring a bell?
The Other Bob 11:50AM (8/17/2009)
"Does the word SCION ring a bell?"
I think you misunderstood.
Scion is owned by Toyota, which also sells cars under the Toyota name. Ford sells Fords, but also Lincolns. GM does not sell cars under the GM name. GM could have gone away and Chevy would be the parent company of Chevy, Caddy, Buick, Opel, etc.
waiownsyou 11:58AM (8/17/2009)
Yeah but that really doesn't do anything for the company except change public perception a little. It's just a name.
Joseph 12:00PM (8/17/2009)
Subaru is owned by Fuji Heavy Industries. I guess because their parent has a different name, then they must be doing terrible as well
Tool 12:15PM (8/17/2009)
It is pretty clear to me that the New GM is a lot like the old GM.
1. Same executives. No new blood. Why couldn't they have brought in at least 1 token hire from outside GM to bring some new thinking to the organization?
2. Too many over-lapping models. This is the problem when you still have too many divisions.
3. Same old thinking. GM never would have made the changes without the gun to their head by the Automotive Task Force. Say what you will about govt involvement, but at least they got GM to make the tough decisions they'd put off for years. Hopefully the new Board of Directors will keep the heat on.
Kitko 12:30PM (8/17/2009)
Opel dropped GM logo from its European advertising in the early 90s.
Not THAT Matt 12:34PM (8/17/2009)
""They shouldn't even identify themselves as GM. People don't buy GM cars; they buy Cadillacs and Chevys, and that's what they ought to be talking about," "
I could've told you that months (if not years) ago, and for no where near what MaryAnn makes, I'm sure.
GM's product portfolio is a tough one. GMC, it can be argued, is necessary because some people simply won't buy a Silverado instead of a Sierra, not to mention their business buyers who've bought Sierra for forever. If tinkered with properly, GMC should and could become a bit more rugged (think Terrain only a little more - and less - hardcore), like GM's version of Jeep only hopefully without the car-based stuff.
And Buick could be shoved in there below Cadillac, and be a less up-scale offering. And come on, how is the new LaCrosse not beautiful?
But at the same time, Chevy's Silverado is just as good (and the same thing, obviously) as GMC's Sierra, and the Acadia is pretty much obsolete when you consider the Traverse has the nicer engine, is several years more freshly styled, etc. So GMC really isn't as useful in that light.
And who needs Buick when Cadillac is around, and has mostly the same type of offerings? Who's going to drop $28k on an entry level Lucerne (or $35-40 on a loaded one) when the CTS comes in around $35k.
All GM has to offer is the same type of thing in slightly different flavors and in different levels of quality, which is fine, you see re-badged Camrys as Lexii all day long. But those are two brands, and not four, and while I'd love to see Buick be around for that beautiful new LaCrosse, I also would have loved they not kill Pontiac.
You can't always get what you want.
The Other Bob 12:40PM (8/17/2009)
"Subaru is owned by Fuji Heavy Industries. I guess because their parent has a different name, then they must be doing terrible as well."
If Fuji had a terrible reputation and Subaru starting advertising under it, I would call that a bad idea too.
Nozferat 12:42PM (8/17/2009)
Kitko 12:30PM (8/17/2009) SAID
Opel dropped GM logo from its European advertising in the early 90s.
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That's the smartest thing Opel has ever done.
Paul 7:20PM (8/17/2009)
Their ad agencies bear a huge responsibility for their failure and continued missteps. If anyone saw the disfunction inside Campbell Ewald/Detroit, they'd get why GM is so messed up. The worst of the worst end up there and they're all fighting to keep "turf."
Still, GM should be Chevrolet and Cadillac now, no more. Anything beyond that is redundant and costly. China may need to sell Chevrolet's badged as Buicks but that brand is dead here. Their marketing needs proper differentiation and, with so many models and brands claiming the same well-trodden territory, the message gets muddled.
Willem B 11:39AM (8/17/2009)
they must've not read the article about bob lutz's strategy for advertising. it says he wants to reduce the GM in ads, and emphasize the chevy, caddy, etc.
they also must not know about the success buick has in china
they also must not have ever heard of scion or daihatsu
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J.Crew 11:45AM (8/17/2009)
My thoughts exactly. Just kicking the same old dog in their mind without digging into updated plans and the direction of the new company.
Aprime 12:16PM (8/17/2009)
Or Subaru.
Jei 2:34PM (8/17/2009)
Agreed. BUT.....the GM commercials being shown today are simply awful.
I'm glad respected analyst have come out and started to really discuss GM marketing.
GM tends to mention more than one brand in their commercials....which is why consumers can't seem to separate the brands when considering purchase/resales prices. When you see a Lexus ad, there is not mention of Toyota, its brands, or Toyota Motor. GM should take notes.
A Cadillac ad should not mention GM or Chevy or GMC or Buick. Only discuss Cadillac.
David 11:41AM (8/17/2009)
Just dropping the little GM badge off every car would save millions!
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Mr.Oak 11:43AM (8/17/2009)
True
Aprime 11:47AM (8/17/2009)
That badge of excellence thing was oddly enough something British Leyland pulled off.
The similarities are astonishing.
J.Crew 11:47AM (8/17/2009)
Lutz has already stated that this will be disappearing over time and that new designs will not include the GM mark.
lincolnomp 6:27PM (8/17/2009)
I agree, every time I see a little fender GM badge (do they still put the logo on the seatbelt clips too?) it reminds me of a giant evil corporation, like OCP. It seems to work for chrysler though (probably because its a symbol without letters).
But to get back to GM, its not like Lexus reminds anyone that its a toyota marque, and I don't know how many times my dad has forgetfully asked me if infiniti is a Chrysler brand (?). the japanese market in a way to have their brands stand on their own, and its seems to work well for them.
I'm just gonna finish with saying that it seems that having GM on everything is sorta condescending to the consumer, suggesting that they can't figure out what they want on their own.