Another sign of GM's desperation

CNNMoney.com http://tinyurl.com/35nhlt

If you want to test drive a Toyota Camry or Honda Accord, starting next
month you'll be able to do it at a Saturn dealership. General Motors is
asking Saturn dealers to have one or more of the competing models in
the showroom so customers can look at it, sit in it and drive it.

Of course, Saturn dealers can't sell you an Accord or Camry. But they
hope that, when you see a Toyota or Honda sedan next to the Saturn
Aura, you'll decide to buy the Aura...

Later this year, Chevrolet dealers will be doing the same thing as they
introduce customers to the redesigned Chevrolet Malibu, which shares
its engineering platform with the Aura.

In focus group research, GM has shown potential customers new GM models
next to competing vehicles with all brand identifications removed and,
said LaNeve, customers have reacted well to the GM products...

According to industry newspaper Automotive News, sales for the Saturn
Aura http://tinyurl.com/yst75s which was voted Car of the Year by
automotive journalists in January, 2007, have been disappointing for GM.

Part of the reason GM is willing to take this step, said LaNeve, is
because the company has little to lose. Midsized sedan shoppers often
don't even consider GM products, he said, instead going straight to
Honda and Toyota dealers.

The Toyota Camry and Honda Accord are now the two best-selling cars in
America.

"Over the course of a few years that became the default choice," said
LaNeve.

GM has sold about 48,400 of the current version of the Malibu so far
this year. Meanwhile, Toyota has sold 145,000 Camrys...

 

"MPG" ...

I don't see the point of that. If the person walked into a GM dealership,
weren't they intending to go with those to begin with?

Any car can be flashy with bells and whistles, but people buy Toyotas and
Hondas for their quality/economy most of the time, not for extras. Hell,
I'll be the first to admit domestic vehicles are usually more superficially
attractive than my Echo, but I bought the brand, not the style.

Natalie

 

Not necessarily.

Lots of people will go drive Brand X, then Brand Y, then Brand Z, then make
a decision among those choices. Yes, some set out to buy a particular make
and model, and don't test drive anything else. But it looks like GM is
trying to cater to the XYZ- buyer by providing a X and Y to test drive,
along side the Z that they are selling. They seem to think that when a buyer
sits in (and drives) the X and Y, then they can close the sale on the Z
right then and there. The salesman can compare the two or three cars side by
side and show that his car is better than the other(s). If he lets you walk
off the lot to go down the street to test drive the X or Y after you drove
his Z, then he isn't in control anymore, and is at your mercy to return.

Personally, I think it is a good strategy ...

GM is banking that they can convince you (not YOU, perhaps) that they offer
as much quality and reliability as the "other guys." (I don't know that they
can or can't, but I certain they will claim that they do and they will want
you to drive as many of the others as you can stand just so you see that
they offer just as much as the other guys offer.) The deal is, they want you
to NOT leave the car lot without a new car. If they can control the
environment, the odds favor them handing over the keys as opposed to the
next car lot down the block.

 

Or... you'll then decide to go over to the Honda or Toyota dealership
instead, even if you originally didn't have one of them in mind... ;-)

Cathy

 

I will take the Camry any day over a Saturn...

 

I've seen lots of really nice interiors and radios in GM and Ford
vehicles. Detroit really can get the inside, as well as the overall
styling, right.

In fact, I really like the aesthetics of the Fusion, Charger, '07
Tahoe and Silverado, and current F150.

I always thought the perfect vehicle would be a Toyota drive train and
a Detroit body, built @ NUMMI. <G>

 

its not even really that pretty or a car.. i dont like the way the back end
bows.. reminds me too much of a victoria on the top and then it is kind of
squared in the back.. kind of a wanna be honda accord...

 

Camrys are comfortable cars...

 

I wonder how the GM sales people will address the difference in resale
values between the two cars.

 

They're going to say that it doesn't matter.

You'll enjoy the car so much that the difference in resale value is simply a
cost of ownership. Assuming you drive 100,000 miles, and the GM vehicle
fetches 7500 on trade while the Camry brings 8000, the difference is $500.
Is $500 spread over 100,000 miles going to hurt you? No. Will it add to your
pleasure? Absolutely (if you listen to the sales guy). Is your pleasure
worth a half-cent per mile? My guess is, yes.

 

"Bonehenge (B A R R Y)" ...
"Wickeddoll"

Exactly - match the quality with the extras.

It's like how I feel about Madonna and Whitney - if Whitney sang the songs
Madonna did, I'd buy Whitney's records. I can't stand that whiney voice of
Mad-Donna's.

Natalie

 

"Bob Bitchin" ...

*snip*

LOL! I can't count them on one hand, because there is no finger for "0"

Natalie

 

Thing is, that in the industry, building a name means everything. The name
"Toyota Camry", alone is going to be much more pleasing to the eyes than
"Saturn Aura." The Camry will get many more looks and many more request than
the Saturn will when pawning used cars. Those are the facts.

 

Technically, those are assertions.

We do not know what the response to the Saturn is going to be. We do know
what the response to the Camry has been, so the odds favor your assertion
being correct. But we haven't enough facts to know about the Saturn yet.

I have no idea if the sales ploy (marketing plan) will work, but it is a
good one as these things go.

 

Hard to say. IMO, the new Camry front end is ugly and for that reason I did
not even consider buying one when I bought my car. I'd just not get caught
owning one. The Accord exterior is nice, but the dash is rather blah
looking. Seeing them together may be enough to persuade me to go with the
Saturn.

 

I think it is an idea, not a sign of desperation.
Lots of good points noted especially resale.
My opinion is the following as I work in the industry (supplier to all
makes) and own a Honda and a Buick and a Jeep, and a Dodge currently and
drive about 50,000 miles a year as well as an enthusiast in the auto
industry and offer the following..

- Without a doubt, resale is higher but this is only driven by demand.
- Honda, and other importers did, and in many cases now do have better
quality. When new players arrive going back years for example Isuzu, they
would bend over backwards to back up and repair and make good on the first
years, even out of warranty.
- I will tell you with experience and dealing with many people in many OEM's
that once the companies are established it is about market share and
PROFITS, including the established imports.This is really been the message
in the last 2 years.
- MANY components are from the same supplier(s) across all brands.
- Dealers and Service are only as good as the people, not the brand.
- All vehicles need to be evaluated on there own merits in real time (not
reputation) and I do not believe there is a huge desparity between brands
(price point, quality) at the moment for established players.There is
however personal preference in a choice in a car but this is manipulated
also, how?
- The number one occupation in 2007 with the highest increase in
wages...........
MARKETING.
nothing wrong with this just a fact.

 

I agree about the look of the Camry. Really a dull-looking car, IMO. But
there is no way I'd choose a Saturn over it - unless I financially had no
choice. Even then, I'd look at a Yaris or something.

Natalie

 

We already do know.

We do know

Anything at this point is good for GM and other car makers...

GM could have a guess how many cars are in the lot and win a free car
contest and it would be better than what they were doing.

 

Maybe you didnt but a record number did.



The Accord exterior is nice, but the dash is rather blah

 

The Avalon is a nice looking car.