"New" GM Goes on the Offense with Quarterback Lutz
By Michelle Krebs October 15, 2009Expect the "new" General Motors to play offense when it comes to marketing and 
communications, Bob Lutz, GM's chief marketing quarterback, told the media Tuesday.
"We have to shock Americans into a new awareness about the competitiveness of GM products," Lutz said. "We can't do it the way we used to do it by gently showing our products. We've got to take it on boldly and head-on. We can stand the comparison with just about anybody."
The recently launched May the Best Car Win, starring GM's government-appointed chairman Ed Whitacre was just the beginning.
Upcoming advertising will focus on GM's four remaining brands and not the corporate parent. Ads will compare GM's vehicles and their attributes to the competition, like Chevrolet ads that challenge the notion that Toyotas achieve better fuel economy and GMC Terrain ads that position it against BMW X3. And every GM ad will highlight the automaker's warranty, which Lutz boasts is better than Hyundai's but consumer don't know it since it isn't advertised.
GM will be "more aggressive" and spend big on advertising, Lutz said. "We got to close the perception gap...we want consumers to see the ads and say 'what!?" throwing caution to the wind at the risk of offending some, admits the often-bombastic Lutz. The risk is consumers will see the ads as not confidence but arrogance, a hallmark of the old GM.
Lutz, 77, who had months ago announced his retirement, opted to stay on with the new GM in a new post. He oversees a seemingly unrelated areas - from public relations, marketing and advertising to vehicle design. But Lutz says they indeed are related as all are consumer touch points the consumer experiences.
60-Day Guarantee Working
Lutz said GM's 60-day money-back guarantee, that allows consumers to return their Buick, Chevrolet, Cadillac or GMC vehicle if they aren't satisified, is working. Of the 100,000 plus GM vehicles sold since the guarantee was launched as part of the May the Best Car Win campaign, only one vehicle has been returned. That was a man who bought a Chevrolet Corvette with a manual transmission. As Lutz tells it, after driving it every day in traffic, decided he wanted an automatic model, and the dealer "cheerfully" accommodated.
Lutz cited Edmunds.com data that shows consideration for GM vehicles climbed about 15 percent since the ad campaign and guarantee started.
However, GM CEO Fritz Henderson said the vast majority of buyers opted for the $500 cash rebate that was instituted after the program launched. That suggests buyers were committed to the buying the GM vehicles anyway so they took the cash and that the campaign was conquesting intenders for competitive makes.
Still another positive sign for the automaker that Lutz sees is GM's average transaction prices are up by $6,000 to an average transaction price of $31,800. Lutz claims the industry average transaction price is up $3,000. -- Michelle Krebs, Senior Analyst and Editor at Large
Photo by GM
Bob Lutz now heads all things creative for GM
LEAVE A COMMENT
Click here to comment on this entry.Ha ha ha, so funny,
Lutz said:
"GM will be more aggressive" and spend big on advertising, Lutz said. "We got to close the perception gap...we want consumers to see the ads and say 'what!?"
The consummers will say "What? is GM still making those peices of s*** ?", that what the consummers are going to ask.
When is GM going to understand that they have to make some cute cars like the Kia Soal or Nissan Versa or Nissan Cube. GM is spending huge on ads instead on developing something people actualy line up at the dealer gate for.
mzohar:
Take a look at sales figures. Regardless of what YOU like the fact is boxy vehicles with weak engines don't sell well. The xB, Cube, Element, etc. are small volume. They are popular amongst "green" obsessed urban dwelling hipsters and seniors but not the general public. The Lacrosse, Malibu, CTS and Equinox are far more critical to GM's success.
That said, a new Aveo, Spark and the Orlando debut in 2011. Cruze comes out next year.
Yes, I will wait to 2011 to get a Korean Spark, but last time I checked it was 15 years ago and GM said the same "In two to three years".
GM do not make ANY minicar and never did. Aveo is a rebadge Korean car.
And for your info the whole world is liking those boxy small engine cars.
They have more space and utility for their footprint and expense.
What you are reffering to is the long bankrapt and vanishing part of the American dream, that turn into American people nightmare right in front of the Whole world to see.
Grow up.
The Bob...rocks!
http://ctsvchallenge.com/
Can you out-drive a septuagenarian in a Cadillac? Bring it.
The new message comes across as "If you buy other than a GM product, you will have a different product, not a better one"
GM Arrogance? Only if they truly get smoked at Monticello, and don't acknowledge it.
We don't make TV's in this country, either, mzohar.
Fulcrumb, true we do not make TVs in this country, and it is sad very sad. We even do not grow too much produce any more. The other day I went to Costco and bought Oranges, guess what it is IMPORTED from South Africa.
We must open factories and produce everything from shues to belts to tires to oranges.
Otherwise we are doomed, and Obama's rescue plan is missing the whole target and even missing the safty bariere behind it.
Certainly believe that Lutz's got a whole big lot to contribute to a restructuring GM. Most of what he has done in the design area was the best the pre-bankrupt GM could do IMO. The world knows and agrees that this 'guy' is CREATIVE..! Who else would be a better choice to watch perform in the Marketing & PR for a reborn giant?!. He is from the "kitchen" of GM... I have gr8 confidence in his approach with a new baseball bat carrying GM in the battlefield of advertising. 60-day Money-Back Guarantee? Worked; even Edmunds.com agreed..."May The Best Car Win" is and will work too as it displays great confidence towards the competition and the consumer; isnt all this what we would like to see GM doin since three decades. Will appreciate all/any reply comments to this. Best regards to all...
ADD A COMMENT