According to a Wall St Journal op-ed, retreating from the car market and specializing in SUV's and pickup trucks is the way to go. Going head to head with Toyota, Honda, and Ford with the Chevy Malibu is a bad idea. Or so says Holman W. Jenkins Jr in a Wednesday op-ed.
I disagree. GM is a huge company; it once commanded better than 50% of the entire US car market. To remain a big company, you have to make a mass market product, selling in the millions, to stay in business. Right now the high volume car product is a smallish four door sedan. GM cannot survive on niche products like Corvette. There simply are not enough guys with Corvette money to keep the lights on at a behemoth like GM. There are more enough people who just need a plain old car to get to work, bring home the groceries and take the kids to school. Like a Malibu, or (the competition) a Camry, an Accord, or a Fusion.
GM needs to make a Malibu that is just plain better than the competition. They can do it. They did it in the good old days. In the '50s and '60s GM owned 50% of the market because their cars were better looking, better handling, and more dependable than Ford, Chrysler, or American Motors.
They could start with better styling. The 2012 Malibu is bland, with bulbous front and rear ends. Then they could find a car salesman to redo the marketing on the web site. To attract customers GM lists desirable features of the Malibu. These turn out to be 33 mpg (fair), fancy sound system (do I care when I have an Ipod?) , a computerized backseat driver with "Turn by turn" voice navigation, and Bluetooth. None of which I care about either.
What about engine power, trunk room, interior size (how many kids can I fit into the back seat?) brakes, cornering, roof racks for skis and bikes, transmission options, miles between oil changes, front or rear wheel drive, you know, those car things. GM is trying to sell the car on MPG and vehicle electronics alone. They don't seem to care about making a decent car, which can take the curse off a day long drive with kids on board.
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