GM Exec: Commitment to Customers Most Vital Element to Success
WASHINGTON, D.C. -
While the “recipe for success” at General Motors basically boils down to four key commitments the automaker has made, one “ingredient,” in particular, stands out in terms of importance, according to GM vice president of global design Ed Welburn.
After he delved into the areas of financial wellness, fuel efficiency and technological innovation, Welburn suggested that the most pivotal element in GM’s success plan is its commitment to customers.
Not only does this entail excellence on the product side of things, GM must show consumers that they share their values, stressed Welburn, who was speaking at the Washington Auto Show as he “pinch-hit” for GM’s Mark Reuss.
Reuss was grounded by snow in Detroit.
“The fourth and final ingredient in our recipe for success is the most important: GM is committed to putting the customer first in everything we do,” Welburn said. “This means, first and foremost, designing, building and selling the best cars and trucks in the world.
“It also means proving to our customers and potential customers that we value what they value,” he added.
For instance, Chevrolet revealed plans in November to pump $40 million into clean-energy projects over the course of a few years. It aims to slice carbon-dioxide emissions by as much as 8 million metric tons, Welburn noted.
“The first of those projects we can announce will have a direct effect on people’s lives, for the better,” he shared. “It’s an investment in energy efficiency in Maine low-income housing projects, beginning later this year.”
And while this Maine project sets its sights on cutting 40,000 tons of carbon emissions, Welburn said that more importantly it should be seen as “a very real positive impact on people and their community.”
Such efforts reflected another element critical to GM’s success that Welburn discussed during his speech: the automaker’s commitment to bolstering its lineup’s fuel efficiency and giving customers more a wider range of fuel-efficient rides from which to choose.
“Obviously, this is an important point,” Welburn noted. “And the proof is in the numbers.”
The Chevrolet Cruze Eco, for example, has a highway fuel economy of 42 miles per gallon. The Buick Verano’s highway fuel economy exceeds 30 mpg. Meanwhile, the Buick LaCrosse eAssist is at 37 mpg.
Making Vehicles Customers Want
While emphasizing that GM is prepared for a spike in fuel costs, Welburn stressed that “these are not vehicles customers will have to ‘settle for.’
“Nor do we need to have people held hostage by high gas prices to buy them,” he added. “They’re not stripped out econo-boxes where the only feature is mileage. Anybody looking for great value need look no further.”
Beyond the fuel-efficient small cars GM offers, Welburn also pointed to the automaker’s crossovers — such as the Buick Enclave, Chevrolet Traverse, Chevrolet Equinox, GMC Acadia and the GMC Terrain — for customers who perhaps desire more room and versatile models.
He indicated that GM saw a 50-percent sales uptick for these crossovers last year, as more than 500,000 were sold.
“That puts us in even better shape if fuel prices cause customers to turn from trucks and SUVs; Equinox gets better mileage than any vehicle in its class, for example,” Welburn noted.
More Technology Commitments
Transitioning from the “gas-friendly to the potentially gas-free,” Welburn then delved into GM’s technological commitments.
“GM is committed to leading-edge technology, on both sides of the dashboard,” he noted, reciting GM’s next commitment. “It doesn’t get any more leading-edge than Volt.”
Not only has the Volt picked up several car of the year awards from various outlets, it has generated quite a response from consumers, as well, Welburn shared.
“We have 300,000 hand-raisers registered on our web site to show their interest in the Volt,” he said. “And so, we’re accelerating our launch plan to have Volt in all participating Chevrolet dealerships, in every single state in the union, by the end of this year.
“This accelerated launch plan, which had stretched into 2012, is the right thing to do for our customers,” he continued.
GM also plans to utilize some brand new technology as well, such as the EN-V concept vehicles and the Cadillac ULC (Ultra Luxury Concept).
Furthermore, the automaker has tapped into inside-the-vehicle technology, allowing for greater drive connectivity to information and entertainment, he shared. GM will also roll out “OnStar for Everyone,” which will provide the benefits of OnStar to all passengers, not just the driver.
Continuing on, Welburn also stressed that the automaker will put its technological resources toward cooperation with the government with regards to future CAFE and emissions standards.
“We plan to be collaborators, not opponents. Collaboration — from all sides — was the winning approach that delivered today’s strong, single national standard,” he emphasized.
“That’s why we were encouraged to read the President’s recent comments in the Journal that cited this approach as an example of careful, balanced rulemaking”, Welburn continued, also praising California for agreeing to the same timetable agreed upon by the Environmental Protection Agency and the National Highway Traffic Safety Administration.
“With our industry and the economy in fragile recovery, now is not the time to abandon a formula that works,” Welburn noted. “We hope others — from California to environmental groups —will join us as they did last time so we can roll up our sleeves and get to work.”
Keeping GM in Good Financial Standing
Moving along, Welburn also reiterated GM’s pledge to maintaining healthy finances.
Furthermore, he stressed GM’s readiness to "stand on our own two feet" financially.
GM, which went through bankruptcy less than two years ago, has certainly seen a turnaround.
“GM is making money… and Dan Akerson and Chris Liddell assure me that we plan to keep it that way,” he shared. “We got up from the canvas battered, bruised, and thrilled to be here. Now we find ourselves leaner, stronger and hungrier, and we plan to stand on our own two feet.”
Welburn further noted that GM was one of the automakers that had applied for low-interest loans from the Department of Energy for building advanced technology models.
The automaker withdrew its $14.4 billion application last week and has no plans to tap into the federal funding.
“This move is consistent with our goal to have minimal debt on our balance sheet. It’s another sign we’re confident in our progress and strong global business performance,” Welburn shared.
However, he did emphasize that GM is still making an “aggressive investment” when it comes to fostering new product, technology and design.
Welburn delved into GM’s new structure, noting: “Like most Americans, we believe that a self-sufficient, globally relevant GM is the best solution. We’re a new company, on a new, level playing field in this industry.
“We now have a competitive cost structure, improved capacity utilization, leaner inventories, improving brand equity, and customers willing to pay higher prices for our products … all of which leads to improved earnings and cash flow,” he added. “We have the right number of brand s in the U.S. now.”
In fact, GM’s unit sales with four brands last year were more robust than the automaker’s 2009 sales, when it had eight brands.
And with 900 fewer dealers in the fourth quarter of 2010, GM saw its sales climb 120,000 units compared to the first quarter. Moreover, its retail market share climbed to 17.8 percent, a 1-percentage-point lift.
“This is all good news for our North American operations,” he shared. “And globally, we’re well positioned to take advantage of the huge growth potential in emerging markets … like China, India and Brazil.”