 Vol. 1, Issue 5 GM Communications, Detroit July-August 2000
GM Backs Up Talk of Innovation, Speed with ActionIn the day-to-day work of covering the auto industry, it’s easy to miss the big picture of a big company like General Motors. We know you’ve heard Rick Wagoner and others at GM talk (and talk) about "moving fast" and being "innovative." Maybe it’s time to take a step back and look at what GM’s actually doing to put those words into action. Consider that on the product side alone:
Innovation is part of our constant effort to improve existing models as well. Take our minivan lineup: The Chevy Venture, Pontiac Montana and Olds Silhouette for ’01 feature a third-row stowable seat, a power driver’s side sliding door and a new rear-parking aid that alerts the driver to objects behind the van. Then there’s the high-performance Chevy Corvette Z06 – the quickest, best-handling production ‘Vette ever, new to the Corvette lineup for ’01.
Fuel Economy: Using the Right Measuring StickDuring the ongoing controversy over fuel economy, many of the news reports have used the federal government’s "corporate average fuel economy," or C.A.F.E., ratings to compare how GM and Ford are doing with their truck fleets. While C.A.F.E. ratings are useful in reporting on regulatory efforts to improve overall fuel economy across the industry, the averages don’t really offer car buyers any help in determining which vehicle is the most fuel efficient in any given segment. Here’s why: C.A.F.E. averages were created to compare the fuel economy of each automaker’s fleet. But to show the real-world effect of each fleet’s efficiency on the nation’s overall fuel consumption, the averages are "sales-weighted." A company that sells more large SUVs than small SUVs, for example, has a less favorable C.A.F.E. average. Even sales differences within the same segments skew the results. Other factors can cloud the fuel economy picture as well. GM, for example, sells far more Chevy Suburbans and GMC Yukon XLs than Ford sells Excursions (nearly four times as many so far this year). The Suburban and Yukon XL get significantly better mileage than the Excursion. But because of its larger size and weight, the Excursion is excluded from the C.A.F.E. calculations. Were it included, Ford’s corporate average would be worse. The bottom line is that C.A.F.E. doesn’t make for a fair comparison of who has the most fuel-efficient large SUVs. Overall, GM still has a slightly better C.A.F.E. average than Ford, while DaimlerChrysler (which doesn’t sell any large SUVs) is slightly ahead of both. But the only honest comparison is on a model-by-model basis, in which GM is considerably further ahead in virtually all categories of light trucks. Only when you compare model-to-model in like segments and with like powertrains do you see the significance of GM’s lead. The Suburban, for example, rates an estimated 4 mpg better than the Excursion. The GMC Yukon and Chevy Tahoe rate a full mile per gallon better than the Ford Expedition and Lincoln Navigator twins. The Chevy Blazer and GMC Jimmy get more than 1 mpg better than the Ford Explorer. Contact: Jeff Kuhlman, 248-680-5999 or Jeff.Kuhlman@GM.com.
Chevy’s "No-Va" and Other Urban LegendsEver come across a story that just seemed too good, funny or ironic to be true? Take the tale of the Chevy Nova’s alleged poor sales in Spanish-speaking countries in the 1970s: GM failed to do its homework and learn what any student of Spanish 101 knows: That "no va" translates into "no go!" Or so the story goes. That cautionary tale has appeared in numerous marketing textbooks and still keeps popping up in news stories and seminars as an anecdote to illustrate how companies sometimes don’t do adequate research before introducing a new product overseas (imagine, GM being accused of not doing enough research!). Only problem with the story: It’s bogus. False. Never happened. A journalist friend recently tipped us to a handy Web site that tests the claims of this and other "urban legends" of the corporate, Internet and generic varieties. It’s www.snopes.com, and it should be bookmarked on every reporter’s computer. It includes an automotive section at www.snopes.com/autos. According to the site’s "Urban Legends Reference Pages," the Nova actually sold well in the Spanish-speaking counties where it was sold between ‘72 and ’78. It notes that GM was well-aware of the translation and opted to retain the Nova name because the issue was deemed insignificant. "The phrase "no va" and the word "nova" are distinct entities with different pronunciations in Spanish," snopes.com reports. "Assuming that Spanish speakers would naturally see the word "nova" as equivalent to the phrase "no va" and think, `Hey, this car doesn’t go,’ is akin to assuming that English speakers would spurn a dinette set sold under the name "Notable" because nobody wants a dinette set that doesn’t include a table."
GM Offers Expanded Access to Environmental InfoGM’s corporate web site, www.GM.com, now offers an expanded section on energy and the environment that highlights GM's environmental stewardship initiatives. Simply log on to the site, and click the tab labeled "Environment" on the home page, along the top banner. From there you will enter GM's web home for all matters environmental. "The depth of information in the environmental section goes beyond answering the question, 'What's GM doing?' says Jeff Kuhlman, director of environmental communications. "It really demonstrates how much other companies have followed GM's lead." Contact: Jeff Kuhlman, 248-680-5999 or Jeff.Kuhlman@GM.com.
Joint Internet Venture with Dealers ProgressingGM’s innovative proposal to create an Internet joint venture between the company and its dealers is progressing, with largely favorable reaction from the dealers. The joint venture company would serve as a research and shopping Web site for all makes and models, not just GM vehicles. GM will spend the next several weeks getting dealer comment and, if the idea has broad dealer support, GM and its dealers will proceed. If dealers reject it, the proposal will be dropped. "The plan is interesting," Automotive News said in an editorial Aug. 21. "The way GM is going about it is remarkable. …It is demonstrating leadership but also seeking consensus. That’s a powerful combination." Contacts: Terry Sullivan at 313-667-2298 or Terrence.Sullivan@GM.com; Pat Morrissey at 313-974-1121 or Patrick.Morrissey@GM.com.
What Others are Saying About General Motors"If one automaker deserves praise for its overall 1999 manufacturing performance, it’s General Motors. In the past, most industry analysts never would bring up GM in any discussion of premier manufacturing. "That was then. Now, after several years of hard but quiet work, GM arguably is the leanest manufacturer of the former Big Three. "GM has made more progress at implementing aspects of lean manufacturing than Ford or DaimlerChrysler. Material systems have been streamlined, and signs of error-proofing are plentiful and growing. "One of GM’s biggest initiatives has been its drive to standardize and commonize. For example, the gigantic GMT800 truck program, which is now in six plants, uses nearly identical processing and tooling in each plant to allow for shared learning. And each subsequent launch has been faster and of higher quality than the one before." --Ron Harbour, Automotive Industries "To convince the world that you’re dedicated to innovation, you’d better do more than just announce the fact. That’s why GM, which desperately needs to prove to the world (and itself) that it’s not the same old GM, has decided to build and sell the Chevy SSR sometime in late 2002. "`There was a time at GM when we wouldn’t dream of going forward with a vehicle like this – or any vehicle – until every `i’ had been dotted, every `t’ crossed,’ Wagoner told the University of Michigan’s annual conference of automakers and suppliers near Traverse City. `And I’ll be honest with you: We don’t have every detail buttoned down for the SSR. But look at that truck! Doesn’t it just feel right?’ "We’ll see. What does feel right is that GM is willing to act in an un-GM manner to drive home the point that the clock is ticking, that GM’s usual glacial pace would prove harmful. "GM’s latest sport utility, the quirky looking Pontiac Aztek, as well as the Hummer H2, suggest that GM wants to be more daring. Soon GM will introduce the Buick Rendezvous and Opel Speedster, which promise some unusual shapes and lines. "Wagoner appears to accept the notion that GM’s cars must become compelling visual statements and exhibit more passion, that playing it safe with styling actually might be dangerous." --Doron Levin, Detroit Free Press "In his effort to bury the company’s reputation as a maker of bland, uninspired cars and trucks, Mr. Wagoner promises to announce in the next few months that more of GM’s latest concept vehicles will be heading into production. "Many attendees at Wednesday’s UM Traverse City conference were surprised by Mr. Wagoner’s often light-hearted tone. He pokes fun at past GM blunders and earnestly promises that the company now `would learn from past mistakes.’ Highly uncharacteristic statements from a GM CEO." --Drew Winter, Ward’s AutoWorld
New Product SpotlightAztek’s Flat Floor a Sleeper for Reporter, Chihuahua"Unlike any other sport-ute I can think off, the AWD suspension componentry of the Versatrak-equipped Aztek does not intrude into the interior of the cabin. In fact, the Aztek drivetrain team, working closely with Steyr-Puch in Austria (the acknowledged experts in AWD engineering), have come up with a system that does not intrude at all into the rear storage area. "That storage area from the front seats back is completely flat. There are no wheel wells. After you take out the lightweight rear captain’s chairs you can lay the proverbial 4x8 sheet of plywood flat with all the doors closed. It also allows for a happy camper like myself, a close friend and my Chihuahua to stretch out on a queen-sized, 60-inches-wide air mattress. "You can’t do that in mom’s Grand Cherokee or, for that matter, in the Expedition either, kids." --Colin Hefferon, About.com International News RoundupJournalists Get First Drive in Opel SpeedsterAutomotive journalists from around the world recently got their first taste of the hottest, fastest and coolest product to come out of a GM design studio since the latest Corvette: the Opel Speedster. When it was over, they wanted more. Typical of the European coverage so far is this headline from Auto Bild, the German auto magazine: "Opel – the rational car. Forget it! That was then. Now comes the Speedster. It’s goal: Pure driving pleasure." The mid-engined, lightweight two-seater features a new aluminum, 2.2-liter ECOTEC engine that delivers 147 horsepower. It’s a pure, uncompromising sports car that’s amazingly agile and fun to drive on winding roads. The styling is characterized by taut surfaces, muscular wheel arches and sheer flanks. The Speedster and its Vauxhall twin, the VX220, are not roadsters built for sofa spuds who want to be pampered in luxury and comfort. Hard-driving fun is the priority. The interior is minimalist by design, with instruments kept to the bare essentials. The car is designed for driving enthusiasts who are willing to forego creature comforts for the sake of a true sports car experience. The Speedster debuted in near-production-ready concept form at the ’99 Geneva Motor Show. It will be assembled by Group Lotus in Hethel, England, where the renowned English sports car specialists have been building cars since 1967. Production begins in September and will be limited to 3,000 units a year, with Germany and the United Kingdom the primary markets. Sorry, no plans to bring the Speedster across the Atlantic. Contact: Klaus-Peter Martin, 313-665-3168 or Klaus-Peter.Martin@GM.com.
New Corsa Features `Easytronic’ TransmissionThe new Opel Corsa that debuts in Europe in the fall will feature a new, automated, five-speed manual gearbox that combines the advantages of automatic and manual transmissions. Called "Easytronic," the transmission was jointly developed by Opel, LuK and Bosch. It allows drivers to choose effortlessly between manual and automatic shifting. In manual mode, Easytronic engages and disengages the clutch for the driver (there is no clutch pedal), making driving easier especially in urban stop-and-go traffic. In automatic mode, the system takes over shifting automatically. It’s the first transmission of its kind in which the clutch is actuated and gears shifted by three electric motors, which operate faster than the typical hydraulic systems on other "clutchless" transmissions. The result is a lightning-fast gear shift with the option of skipping gears if required. The new transmission offers better fuel economy and costs half the price of a conventional four-speed automatic transmission. Automatic de-clutching during hard braking supports ABS and helps maintain the car’s directional stability. The Corsa is one of GM’s largest volume models. Sold in 80 countries, the current Corsa is built in 11 plants on five continents in nine body styles. Since production of the second generation began in 1993, GM has sold more than 6 million units. Total Corsa production since the nameplate was launched in 1982 totals more than 9 million units. Contact: Klaus-Peter Martin, 313-665-3168 or Klaus-Peter.Martin@GM.com.
Dateline: DetroitAuto Writers & Editors on the MoveAs with auto sales, turnover in the auto press corps continues at near record levels despite predictions of a summer slowdown. Here are the latest of our journalist customers to reach a good deal on a new, improved career vehicle: Dina ElBoghdady, who has been covering auto regulatory and safety issues as a Washington correspondent for The Detroit News for more than a year, heads to The Washington Post on Sept. 5 to begin covering the Internet. Dina previously worked at the Orange County Register in Southern California. Bloomberg News just keeps expanding its Detroit bureau. The latest addition is Mark Yost, who departed Dow Jones in July to cover GM primarily. Mark only moved to Detroit with Dow last fall. No replacement has been named there, where Jocelyn Parker remains. Also new to Bloomberg’s Detroit office is Rajiv Narayana, most recently a staffer at the wire’s Princeton, N.J., headquarters. He’ll be covering the trucking and parts industries, as well as sharing coverage of DaimlerChrysler with Greg Gardner. Rajiv’s previous employer was the Vail (Colo.) Daily, where he was on the city beat. He holds a bachelor’s degree in journalism from the University of Denver. Mark’s new address is myost@bloomberg.net; Rajiv can be reached at rnarayana@bloomberg.net. Another change at Bloomberg: Veteran auto writer John Lippert is now devoting all his time to reporting for Bloomberg Magazine. While still on the auto beat, he’ll be assigned longer, magazine-style features and more in-depth stories. Bloomberg is still trying to fill a new, sixth position on its Detroit staff. The Detroit Free Press has hired another auto writer: Lawrence Ulrich, began Aug. 7 doing product/consumer news and reviews. He comes from Corvette Quarterly, based in Southfield, where he was managing editor. He previously worked for The Oakland Press in Pontiac. Also at the Freep, Greta Guest, former business editor at The Macomb Daily, signed up Monday, Aug. 21, to become an assistant business editor. Greta also used to work for AP in Detroit and Lansing. Lawrence is reachable at ulrich@freepress.com while Greta’s new address is guest@freepress.com. Kevin Carpenter, the veteran auto reporter for WJRT-TV in Flint, recently turned in his mic and notepad for a new job as the station’s web operations manager. He’s overseeing development of the station’s new web site and, in his words, "the future convergence of our broadcast and Internet activities." No replacement named yet on the auto beat. Kevin can be reached at carpenkw@abc.com. Jeff Green of Brandweek is heading to BusinessWeek on Aug. 28 to fill the temporary vacancy left by Bureau Chief Katie Kerwin, who begins a eight-month journalism fellowship in early September at the University of Michigan. No word yet on who's replacing Jeff. Readers of the GM Backgrounder on GM Media Online already know that Terril Jones has left Forbes magazine, where he was Detroit bureau chief, to become Detroit correspondent for the Los Angeles Times. The news wasn’t fully cooked in time for June’s e-mailed issue, but was served in time for the online version. Terril continues to report out of his home in Ann Arbor. Reach him at t.jones@latimes.com. Jones replaces Don Nauss, who was recently named business editor at The Detroit News after about a year as automotive editor there. The News is looking for a new automotive editor. Don’s still reachable at donnauss@detnews.com. Also at the News, Anita Lienert has resigned to return to full-time freelancing. She had been a business reporter on the health-care beat for the past year. She’ll continue to do automotive features for the News and other publications. She and her husband, Paul, also will continue the "He Drove, She Drove" weekly review. Red Beck recently began covering the industry for African Americans on Wheels, a monthly published in Detroit. She’s a recent graduate of Washtenaw Community College and will begin studying communications at Eastern Michigan University in the fall. Red can be reached at aaowred@aol.com. Sam Logan, the longtime publisher who left the Michigan Chronicle several months ago, has started a competing newspaper aimed at the African-American community in the Detroit area. It’s called The Michigan Front Page. Logan says his new paper has gained a circulation of about 30,000 since he started publication of the weekly in May. The editor is Ken Coleman. Frank Washington, formerly of Automotive News, is the auto writer. The paper can be reached at mifrontpage@aol.com. Chalk up another one for Detroit’s automotive PR corps: Said Deep last month left his editor’s job at Ward’s Automotive Reports to do technology communications for that family-run automaker down the road, Ford. No replacement has been named. Another Paul to Create Another Auto Web SiteFreelancer Paul Lienert is going to be giving Paul Eisenstein's TheCarConnection.com some competition on the web. Lienert's starting up an automotive web site called GlobalAutoNet.com, to be launched Oct. 2. The site will be divided into a free section with news, features and product reviews aimed at consumers, and a paid subscription section aimed at industry executives. More details will be released at the Paris Motor Show in late September. In the meantime, Lienert has hired Megan McCann as editorial director. Megan was online editor of Automobile Magazine's web site and managing editor of Automobile's Buying and Leasing Guide. She's a 1992 graduate of Eastern Michigan University, where she earned a bachelor's degree in journalism. Leinert, like Eisenstein, will take the title of publisher. The site will be a product of Global Auto Systems Inc., Lienert's new company that will also provide consulting, research and publishing services for the industry. It will have offices in Detroit, Los Angeles and Seoul, South Korea. James Park, most recently manager of product planning for Hyundai Motor America, will serve as chairman and CEO and direct the company's consulting services from LA. Park also will be associate publisher of GlobalAutoNet.com.
You’ve Got the Latest GM Numbers OnlineWondering who to call at GM on deadline? The latest update of office, home and pager/cell numbers for key GM Communications staff is now posted on GM Media Online (media.gm.com). If you don’t have web access or just prefer a hard copy sent by mail or fax, call Barbara Ash at 313-665-3162.
Brescia’s Greatest Hits: GM Seminar on CDIf you’d like a CD containing copies of the presentations at the GM Seminar at Brescia, Italy, call Mary Segars at 313-665-3122. The Seminar, held in June, brought together GM’s senior executives with 53 automotive journalists and 13 key analysts to discuss global industry trends and GM’s vision for the future.
GM Backgrounder is published by GM Communications for reporters who cover General Motors. Got suggestions or comments about GM Backgrounder, or changing jobs? Contact Brian Akre at GM Communications: 313-665-3159, Brian.Akre@GM.com, or fax 313-665-0752. Any material in GM Backgrounder may be republished or reused in any way that does not violate local, state or federal law of offend Carl Icahn. |