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Automotive News & Views What if you were in charge of GM?
874 messages, Last post on Oct 28, 2009 at 10:20 AM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: vinnyny (Feb 22, 2009 10:59 pm) People need to make up their minds. They criticize that warranty isn't long enough for GMs. Then when that's shown to no longer be true, it's that the only thing that matters is resale cost. Then when one points out that the real comparison is cost to purchase, which is often below MSRP for cars, it will be some other factor to try to minimize GM's value. Gimme a break. The reality is that the same cars being touted here as wunderkars because they bring more tradein dollars are held hostage by the new car dealer for more dollars because they are perceived, perceived by some people to have fewer problems or some other positive factor making them worth more in the end; therefore they will pay more in the front end costs. Somehow local dealers of the pop culture foreign brands seem to think they are selling Enron shares. Then there's the reality of the maintenance costs and the mandatory visits to the dealership for the required service using only their special priced fluids, mechanics, etc., at only the dealership. The posts on the foreign car topics I visit indicate many people are over-maintained at their for profit dealerships. At the same time the ratings from JD Powers are indicated there are trivial differences in numbers of problems between the pop foreign brands and quality US brands, some people still feel they are happy to pay more to buy, maintain, and get possibly more at resale. That is not lower cost. In the same threads I mentioned above, there are people complaining about seat comfort, VCM hunting, transmission failures, and other things which make it clear that the cars from certain other manufacturers have regressed to the mean. People are even trading their cars because they are told by the companies the cars are supposed to operate that way! Resale resale values may not stay higher as reality of the problems sets in.
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Replying to: imidazol97 (Feb 23, 2009 4:36 am) Dex-cool ring a bell? At the same time the ratings from JD Powers are indicated there are trivial differences in numbers of problems between the pop foreign brands and quality US brands, JD Power only measures "initial quality," not the number of problems over the lifetime of a vehicle. The best data for that seems to be Consumer Reports (not that it's wonderful but it's better than nothing), which tends to indicate that GM, while having improved recently, still has more problems over the lifetime of the car than a Ford or a Honda, or even Hyundai in some cases.
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Replying to: bpizzuti (Feb 23, 2009 6:03 am) NOT. This is the 3-year study by JDPowers: 3-year study JDP
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Replying to: imidazol97 (Feb 23, 2009 8:14 am) |
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Replying to: imidazol97 (Feb 23, 2009 8:14 am) Resale value IS a big factor. It's something like considering the neighborhood that you buy a house in. In other words, there are factors external to your car (like reputation) that affect the value, and by extension, your total investment. The Lexus and Buick might be closely matched in features and MSRP, and in fact the Buick might be just as good a car in every respect but the Lexus is gonna to kill the Buick on resale, to the tune of many thousands of dollars, not chump change. This is of course a consequence of GM's past work.
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Replying to: Mr_Shiftright (Feb 23, 2009 9:01 am)
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Replying to: lemko (Feb 23, 2009 9:56 am)
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Replying to: Mr_Shiftright (Feb 23, 2009 9:57 am) |
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Replying to: lemko (Feb 23, 2009 10:05 am) You realize that's a bad thing for Buick, right? Means no one is willing to pay that much for it...which means Buick has to discount in order to get people to buy. Which means GM has a harder time making money. If the Buick was that good, they could say "MSRP, take it or leave it" and people would take it. |
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Replying to: bpizzuti (Feb 23, 2009 10:21 am) In other words, with the Buick, the factory suffers first, then the owner, but with Lexus the factory makes out first and the owner second, at resale time. So the only "equal part" might be that both the Buick and Lexus owner get good service from their vehicles. There's a positive for both, should it prove true.
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