It’s been five years since General Motors became “New GM” and sealed the coffin of “Old GM”. Much has changed as a whole in half a decade, as we round out way into the final stretch of the oh-tens, but some analysts question whether GM CEO, Mary Barra’s, statements on a “vastly different” automaker ring true.
The Detroit News broke down the automaker’s standing in financial performance, corporate culture and other essential components to create a healthy GM for the future, and finds ups and downs.
The good, which has been noticeable through Barra’s leadership, is a true change in corporate culture. As the report notes, the “not-my-problem” ethos has become more a “your problem is my problem” distinction, where taking responsibility of actions and its performance rating system reflects that.
The bad sits in GM’s share price, which continues to hover around its IPO price of $33 per share. Although, the automaker’s comeback in North America cannot be ignored, with share prices reflecting the most recent financial reports. GM managed a pre-tax net income of $3.1 billion, and profit margins were up 2.2-percent year-over-year. Investors continue to push for maximization of their shares, something Barra intends to accomplish, but hasn’t thus far.
“Market share is nice,” said David Cole, chairman emeritus of the Ann Arbor-based Center for Automotive Research and a longtime GM watcher. “Profits are critical. We have seen that adjustment at General Motors. Profitability is the critical thing.”
Cole continued on to say it has become obvious GM is not afraid to lose its market leadership for profitability to reward the company’s shareholders, which leads to new investment and a change in perception.
You can read the entire analysis of the automaker at the link here.
This example is a former NCRS award winner.
Many automakers oppose right-to-repair laws citing cybersecurity concerns.
Breaking out the spec sheets for a comparison.
Plus, a nationwide lease on all-electric off-road Pickup and SUV.
Extra comfort for rear-seated passengers.
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The bottom line for me is in the quality, reliability, performance and value of the product. GM is still producing mediocre products that are slightly better than the junk they were producing before the bankruptcy. A case in point is the C7 Corvette. While there is no question the C7 beats all previous models in performance, it fails to provide the quality, reliability and value that would truly make it a great car all around. Initially the C7 was the rave and darling of the automobile press. But put in the hands of the buyer, problems surfaced that required visits to the dealership. The problems including engine failures show that GM, along with its American competitors, still cannot achieve the reliability of Honda. I do hope that GM is a the starting gate to one day equal and even surpass the reliability of Honda and Lexus. Until it does, I will wait with my pocketbook closed.
The quality control issues on the C7 are really almost hard to believe, this is 2015, not 1968. It makes me think that many, many shortcuts were taken to get the car to market at a bargain price? Some reports say as many as 300 LT4 engines from the C7 Z06 have suffered total engine failure, even some '16 MY cars. When the LS7, LS9 and dry sump LS3's were assembled in Wixom, you rarely ever heard of any problems?
Hu thanks for the total unbiased view here.
GM for the most part has improved in most areas and is still working to their goals as they have not reached the summit of where they would like to be yet. They still have engines to replace and platforms still to be replace and updated.
The systems being changed in their culture has changed much of how GM does business and will continue to transform the company as time goes on.
As for your Honda and Lexus love well I know may people who make a lot of money on these car for the issue they also have. All companies have good and bad cars even the Asian brands.
As for the C7 problems they have been small and have affected a limited number of cars. Because it is a C7 it has become a high profile story but it is far from wide spread. Note most models have not had an issue and they have learned that it may have been how the water cooled intercoolers were bleed that may have cause the issue of some of the models.
The key now is to replace many of the models which GM is doing. Changed the old culture of failure, Continue to build better vehicles, build profits and eventually regain market share.
Is GM perfect today? No! Are they working and making the moved to continue to improve and make them a much stronger and better company? Yes.
This is like Cadillac a work in progress and you are not going to fix decades of issues in just 5 years but they damn sure have done a good job so far improving the company.
Nothing more than personal opinion/favoritism/trolling. GM has proven their quality in J.D. Power for at least the last 10 years. Many of GM's vehicles are the vehicles other companies benchmark.
JD Power has put their stamp on some real garbage over the years. Consumer Reports is more unbiased, numbers don't lie, and GM does still lack in reliability.
Corvette Chief Engineer Tadge Juechter has made public an explanation about the Corvette engine problems. The "Old" GM would have said nothing and kept plodding along as if nothing was wrong.
GM is not perfect, but they are improving by leaps and bounds lately.
They were different for a while, but slowly drifting back, as in buy what we make, not what you want in a vehicle. As an example, no RWD SS for Canada, now the possible demise of the Impala.
They're just reacting to what the market dictates. RWD Sedans are becoming rare, for all automakers. And large sedans have fallen out of favor in general (FWD and RWD).
Mackey is correct.
The Camaro SS will arrive in Canada in due time as they will focus the new cars into their prime markets first. Sorry no slight to Canada but you guys are not a prime market for this car. GM is focused in getting these cars into the hands of the markets that buy the most first and as supplies grow it will go to the other markets.
Also sending Camaro's to Canada at the start of Winter is not all that smart anyways. Most buyers there would just buy them and stick them in the garage as who wants to take their new SS into the winter to get stone chipped up,
As for the Impala don't get too worked up as the Impala as we know it is going to die as the platform it is on is going away. Now there will be a replacement that may be different and it could very well be a Impala by name but lets let them finish the plans before anyone starts saying they are back to their old ways.
There is still a market for the larger sedan as it is still just over 100K units. The real question is how to price it in a Chevy price range and how to get more MPG out of it at a reasonable price.
The truth is they have changed and will continue to evolve into the future and will continue to adapt as the markets change too.
I would buy an Alpha based Impala SS in a heartbeat...But the chances of this happening are probably slim to none.
Never say never as GM has not said a word about their plans yet.
We know the SS is gone and the Malibu grew in size. We also know the present Impala sells in number that could be sustained with a shared model like a Camaro.
The real question is can they fit it in price wise and MPG wise into the market for more than a couple years. I think they can and at this point I would say there is a business vase being made.
Just need to let them do what they need to do. Even if it does not happen they will do what is best for GM not just now but into the future and what is going to deliver the most profit over the time span.
Just keep in mind as any denials mean little as we were once told no Colorado. We were told there would be no Holden SS to for a good while.
If you put $10k in a simple, low-cost index fund in 2009, it'd be worth around $18k. 80% increase.
If you bought 300 shs of GM, post bankruptcy, your money would have basically gone sideways.
Even if you market-timed it, and bought in the dips, you'd still be trailing the index.
GM's mgt has a different perspective, I'd suspect, since their options allow them to buy at artificially-depressed prices.
I can see why analysts are skeptical.
GM was not expected to be repaired over night.
They have gone from a do not buy status to recommend with many aynalist. The are seen as moving the right way with product investment and future technology. They are considered a long term investment. Should their investments pay off it could be proven a good move if not odds are you will still make money on their improved earnings.
Now look at FCA and it is quite the opposite story.
There really few things automotive that are sort term massive investments. GM has gone from high risk with no profits to low risk with earnings potential.
The GM haters can never admit GM's products, quality and engineering is way up on the list. GM is now making world class vehicles! The GM trucks have won many awards, along with the Volt, the Camaro, the Impala, Cadillac (CT6-CTS etc), the new Cruze and the list goes on and on. Someone mention GM needs to build new engines. That's a laugh! GM has come out with many new engines and most won best engine awards. What is wrong with these writers? Do your home work before jumping to conclusions!
Quality is way up? My just over 2 year old '13 Silverado with less than 55,000 kilometers has had a power steering hose, the heater fan motor, both rear shocks, and 3 outer CV boots changed under warranty already. Interesting that the lady at the service counter can describe the problem when all you do is mention what part is giving the problem, as if it is when, not if, you will be in to get it fixed.
Engineering is way up? On my '03 Silverado I could change the headlights with a simple pull of the pin holding the assembly in place, on the '13 you have to remove the grill to access the headlights. After 10 model years, moving the location of the battery, and changing the auto trac 4X4 selector from push buttons to a twist knob in a different location on the dash, are not really inovations.
Not hate, just real world experience.
Dave every model has a few with issues.
I can also point out my Terrain has been trouble free for 50K miles and has just been great to counter your claims. I know that there are some folks with issues but they are much fewer than in the past.
As for issue on changing parts. Yes some things get worse with time and many others improve. My terrain has a inner cap in the wheel well and one screw I can change the bulb. My Oil filter on my HHR it is right on top of the engine and can be easily changed with no issue. This kind of stuff happens on them all. Ever change an oil filter on a L6 BMW Bavaria? Talks about a mess.
As for knobs and buttons. What's the deal? They changed it and it works fine. I just used one today on a Colorado I found no grief in using a knob? If that is all you can put up then you must have a pretty miserable life.
Try getting a Hyundai that has a rubber cam belt that is recommended to be changed around 80K miles. Then you also need to change the water pump as it will fail around 115K Miles and you will have to remove the cam belt again and change it in another 60K plus miles. No timing change here to outlast the car. Most Asian cars are similar. Luckily they do not break often as all the valves will go and so few owner change them as recommended.
To be honest GM is not perfect. But then again no company is either and I can give examples on all of them pretty easy. GM has come a long way and will continue to improve.
When the 4X4 selecter was 4 push buttons to the upper left of the steering wheel, I could select by feel without taking my eyes off the road, now that they are a rotary knob under the right side of the steering wheel, I have to take my eyes off the road to make sure I get it in the right position.
Yes, it is designed to shift on the fly, handy when you have alternating slushy then dry highway.
I never had to take my eyes off the road. It only has 3 settings and you can feel them all.
Also the dash told me it was engaged.
Yes the shift on the fly is good.
Now if GM could come up with something other than Jet black for an interior color.
The question , Is GM truly different after five years , NO , are they working on changing how the corporation runs , YES . But they have along way to go . GM used to be more concerned with market share than anything else . Always looking over at Dearborn to see what their numbers were and then overseas to keep pace with Toyota . Doing this , they over-produced cars and quality suffered . They had to many divisions for the marketplace , to many assembly plants and employees , and would end up having to have a fire sale at the end of the model year to rid their lots of all the unsold vehicles . Now their facilities are more modern and flexible to meet market demands .
On paper this is the " New GM " , they have shed the excess and are now lazer focused on only building what they can sell . GM is a very old company and change doesnt come over night . I think Mary Barra has a long term vision for the company and is not so worried about what the sales numbers will look like the next quarter . Plus there is a whole lot more competition out there than there was even 20 years ago . And customers tastes have changed . Cars that one generation wanted is not what the current generation wants to buy and surely will not put up with the poor quality that there used to be .
If you look at GM's past they have always been changing , with the onslaught of the Japanese and now Europe and China may well be next . But GM is in a much better place now to compete globally , that is where we will see GM's growth in the future .
Ok - the products are better.
The best I can say about GM stock is, if you bought it five years ago, you'd sorta break even - plus dividends, minus brokerage charge. Maybe.
I don't think the resale value of a five year-old GM anything is a break-even proposition. Not even close.