What's wrong with a GM car?

New management tries to improve the quality and buyer perception of cars as company regroups.

By Kim Peterson Nov 20, 2009 2:21PM
GM logo; Credit: (© Scott Olson/Getty Images)Are GM cars really that bad?

Not enough people like General Motors cars, and the company is determined to find out why. Is it the image? The brand? The quality?

The answers to those questions will be key to the company's success as it rebuilds. GM's new straight-shooting chairman, Edward Whitacre, is pushing executives to focus on improving quality and keeping customers happy, The Wall Street Journal reports.
He's even asked engineers to begin calling people who return GM cars to dealerships. This fall, the company offered a 60-day money-back guarantee to buyers who subsequently changed their minds, and about 200 people returned cars in that time.

What went wrong for those buyers? Whitacre wants to know.

"It's something we haven't done before, and should," said Mark Reuss, an executive at the company.

Wait a minute. In all these years, GM has never asked people why they don't want to buy its cars?

"The reliability piece has been an Achilles' heel during my whole career at GM," Reuss said, according to the Journal. He added that in the past, some engineers wouldn't report problems to management because they feared losing their jobs.

That led to issues down the road as the cars headed to market.

Recently, Consumer Reports published a survey that found GM cars to be less reliable overall than those from Ford (F), Honda (HMC) and Toyota (TM).

That was a blow to the company, particularly because executives thought they had constantly worked to improve quality in the past. Any problems people have with quality are more about perception, the company thought.

At least GM is trying to get to the bottom of the matter by going right to the buyers themselves. As the company tries to pull itself together, it's going to need all the help it can get.

Related reading:

Lighting a fire under GM


120Comments
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2013 Microsoft. All rights reserved.

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125
125 rated 1
272
272 rated 2
423
423 rated 3
589
589 rated 4
696
696 rated 5
590
590 rated 6
666
666 rated 7
435
435 rated 8
261
261 rated 9
144
144 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
ABTAbbott Laboratories10
AIGAmerican International Group Inc10
AMTDTD Ameritrade Holding Corp10
ATVIActivision Blizzard Inc10
CACA Inc10
More
Fidelity Brokerage Services, Member NYSE, SIPC. (c) 2011 FMR LLC. All rights reserved

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.