An Open Letter to the CEO of General Motors

[ricktret]

The Huge market

Carol. the market isn't untapped. You don't want a corvette, you want a Cadillac XLR. Check out their website at:

http://www.cadillac.com/cadillacjsp/models/gallery.jsp?model=xlr

Rick

Dear Sir:

There is quite possibly a huge Corvette market out there that is largely untapped. This market would not change the character of the Corvette.

I understand that the engine of economic growth in most G-7 countries over, say, the last two decades has been the start-up and growth of small and medium-sized businesses. Many of these businesses are owned and run by women. The baby-boom demographic would indicate that a lot of these women are around 50 years of age.

The key to tapping into this market is a clear understanding of want and the barriers to acquisition, both purely psychological phenomena. Let me name your new market as "Mrs. Smith".

Respecting want, Mrs. Smith has a stable marriage, probably has grown-up children and has also successfully set up and run a business. Income tax, employee issues, pleasing the customer, bank loans, risk and endless hours of sacrifice figure into the picture. If you ask Mrs. Smith what is hers and hers alone, you may get an interesting answer. I suspect that her answer is "nothing". All aspects of Mrs. Smith's life are about responsibility to others. What Mrs. Smith really wants is a format that will allow her to break all of the rules and do so through an acquisition belonging solely to her. A selfish breaking-of-the-rules through ownership of an edgy, high-performance sports car is just the ticket (perhaps another 50 hp and a Honda S-2000-quality shifter in a convertible might be an improvement to the present C6). No "vanity mirrors" and the like for Mrs. Smith; no sir!

Respecting barriers to acquisition, there are three, as follows:

1. Opening the Door

Mrs. Smith has not even thought about a high-performance sports car. She doesn't know that she wants one. The personal approach and word-of-mouth are best, I suspect. Somehow you must go to Mrs. Smith personally. She will not go to you. Plant the seed. Give her time and the psychological bells will start to ring.

2. Car Dealership

Mrs. Smith is repulsed by the very idea. She has dealt with salespeople in business and wants no more of it. What is needed is a customer representative that will cater to Mrs. Smith -- treat her like a queen and never abandon or betray her.

3. Service Department

On this forum, I have noted the occasional horror story such as not changing the oil while saying that it was done, driving the customer's car without permission and dropping a Corvette off the hoist. What is required is absolute integrity. Trust and competence are key. With respect to barriers #2 and #3, I suggest an organizational cut-out at the dealership level. There should be a designated Corvette mechanic, (he can work on other vehicles but no one but he touches a Corvette), who reports directly to the customer representative who, in turn, reports directly to the dealership's owner or general manager. Mrs. Smith generally only deals with the customer representative. He looks after her. This is personal service.

(I note an article in the Jan. 29th, 2005 edition of "The Economist" magazine, page 65, entitled, "The Car Company in Front". The sub-heading entitled, "Pleasing Mrs. Jones", seems to me related to barriers #2 and #3.) Please refer to the following:

http://www.economist.com/printedition/displayStory.cfm?Story_ID=3599000


In summary, there is the market (money), the psychological want and a very fine product that can fill that want. Either Corvette will "own" this market or someone else will.

With greatest respect,

Carol

 

[Edmond]

It's not just the Mrs. Smith types. What about the people who aren't middle aged white males? There are other "groups" out there who can very well afford a Corvette but are turned away by the experience.

I would not buy a new car because I don't like the big depreciation hit at first. Also, I don't like haggling. I like going where I know that I'm getting a good deal and am appreciated. I don't have the time or desire to haggle.

It's even worse at Guitar Center. I swear those guys sell used cars during the day.:L

But with a commission based job, things like that are bound to happen.

Our system may not be perfect but it would sure beat living in North Korea.:L

 

[Marlar]

Sounds bleak but it's so true, we as a country are no longer a manufacturing country but a service country. That is why our dollar is so weak and sliding.

Today most workers think that they are entitled to something that they do not deserve and it's only because their position doesn't warrant it.

our pensions and profit sharing are in jeopardy and social security is a joke.

Today a gov't worker with a high school education working in the system for 20yrs will get a pension that would knock you off your feet, plus health coverage, plus social security. Did l mention how much they get paid today. Well l wouldn't want to ruin your evening.

And what makes this worse if their pension plan tanks then our taxes will go up to make up for the short fall. That's right we are paying for it even though we in the private sector do not have this and if we do it will end in the near future.

Sorry for the tirade but this country let it happen, so we are to blame.

Alan

p.s. GM is a dyeing company.

I think you don't really know what a gov't employee either makes as a wage or what retirement system they presently have. First, they can not generally retire with 20 years. Second, they have to design their own package and it is tied to selected combinations of the stock market or U.S. Bonds. basically, it looks like the Bush proposals for SS. It is hardly generous. better get more info before you go too much further with the discussion. And by the way, their health insurance is paid for by them with some subsidy by the gov't. A big part of their package is SS and as you must know, that also is far from generous.