GM Gets Out of Neutral and Gets Confident

April 9, 2009 · Comments

2010 Chevy Camaro **UPDATE: A few folks asked whether GM is a client. The answer as of this blog post is no. No money exchanged hands. No gifts. Well, they bought lunch, but we bought drinks. This post and the next 2 come from passion.** Eventually, this becomes a story about confidence. In part 1, I’m going to set the stage, and talk a bit about how I came to visit GM, play with their toys, meet some of their senior team, as well as their social team. Part 2 is tomorrow.

Twitter is a strange thing. The other day, I asked a question: “If I think the Cadillac CTS is hot, does that make me an old man?” Within a few minutes, I had over a hundred responses to the question (98% said no). Most people told me they thought the car was sexy, or that they owned one themselves.

Thing is, I’d never really seen one before. From this interaction sprang a conversation with General Motors’ own Christopher Barger, director of social media, and from that came the fortune to have a visit to GM’s headquarters in Detroit, Michigan.

Oh, and on the way, I got to drive a 2010 Chevy Camaro, a 2009 Cadillac Escalade (as part of a cool OnStar demonstration), and a Cadillac CTS and the Cadillac CTS-V (which has a Corvette engine under the hood). Did I mention I got the chance to talk with GM’s new CEO, Fritz Henderson, and also their head of communications, the legendary Steve Harris? Did I mention that I got to have lunch with GM’s entire social media team? (Okay, not all of them. Natalie wasn’t there.)

First, A Quick Piece of Background

At South By Southwest, I was speaking with Christopher Barger when I realized something: except for the very first car my parents gave me (a Dodge Aspen), every car I owned has been in the GM family: (a Citation, a Caprice Classic, a Geo Tracker, and 5 Saturns). I am a passionate Saturn owner (shout out to Lesley on Saturn’s social media team), and when I heard that GM was considering Saturn as one of the brands they may park, I expressed concern about how I’d figure out what to buy next time.

Flash forward a few weeks later, and I’m sitting at a street light and a Cadillac CTS pulls up alongside me, and I think it’s very sexy. This confuses me. Isn’t Cadillac the old man car? Turns out it’s not. I knew that Escalade was a cool vehicle, but I didn’t want a big SUV. And that’s how I ended up visiting GM’s headquarters: because of a few conversations and a tweet about a car.

The 2010 Camaro is HOT!

2010 Chevy Camaro I came to GM to talk about social media and to try out a Cadillac, but Adam Denison, a social media guy on Chevy’s Camaro and Corvette accounts (eat your heart out) was able to wrangle me some time behind the wheel of a Camaro. Yeah, like I’m going to say no to that. Now, I’m not a gear-head. I know there were lots of horses under the hood. I also know that the thing gets 27MPG.

The thing was hot. People stared at it. I heard a story that cops were pulling the car over repeatedly just to check it out. And it’s going to retail for somewhere in the mid- to high- $20,000 range.

Some critics have come out and asked why GM is putting out a “muscle” car in these economic times. Some have asked what this has to do with getting the company back on more solid ground financially, as it’s a somewhat niche car, and not likely to move the masses.

Answer: confidence.

2010 Chevy CamaroThis car is confident. Not arrogant. Confident. It is beautiful. It makes you stare at it. It is a delicious piece of design work. I’d read some so-so reviews of the car in USA Today, and so my expectations weren’t very high, but pow! This car is the kind of car people will talk about. And that kind of confidence is useful.

To me, the story GM is about to tell is about confidence in more than one direction. And that’s what we’ll get into with tomorrow’s piece.

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  • What a great use of a blog? Telling the story of a struggling American car manufacturer and sharing ideas with their team on how social media could help them engage and grow.

    Perfect example of the power of blogging.

    Thanks Chris.
  • Adam,

    Thanks for providing a solid answer. I appreciate how difficult it must be in the current economy along with the bail out news and the initial nightmare your industry "leaders" caused you when then landed in Washington.

    All of that aside, now I am speaking directly to the men who own or run the American auto industry. I grew up in California the biggest car culture in the States during the 1970's. My father bleeds red, white, and blue. I was indoctrinated to be a "Pontiac guy" back when American's identified themselves, not by the country their car originated, but by the brand and then model.

    This is where the past mistakes, of the american auto industry CEO's, changed my course of brand loyalty. My father, disgusted with gas prices, purchased a 1972 Honda Civic aka the "tuna can" for his commute. He has never left the Honda brand having purchased their products for 37 years.

    My last American car purchase was in 1977. I have driven either Honda or BMW the past 32 years.

    I appreciate the quality and the true ingenuity that the American car industry is showing us today. I appreciate the style, the power, and the true coolness of the return to retro the industry is bringing forward.

    Unfortunately it's difficult to change my perception of flawless trouble free operation coupled with performance and longevity that my Japanese and German products have provided me.

    I truly understand your challenges and I am rooting for you to survive and thrive. But at age 49, it will take more than a JD Powers report to change my purchasing habits.

    The toughest thing of all for me is the fact that I would have never changed brand loyalty from American to anything else--if the previous regime(s) had cared, had engaged, and had made products that took care of me.

    One day I might buy an American muscle car again but with the economy as it stands now my budget and buying tendencies are in "lean and mean" mode.
  • @David - I think lots of the lame cars go. They'll keep the best-of, and figure out ways to migrate some of them into a tighter package. Bankruptcy? Possible.

    And so far, the lion's share of GM's social media seems to be on the PR/Comms side. If I had my way, there'd be a big wall crumble in there, so that marketing and comms would reunite. That might take a while.
  • Hey Chris,

    Looks as though you had a blast with some of the new GM cars. Problem is that the mainstream models, the ones that need to sell to keep the business intact, still leave a lot to be desired.

    The only GM car I've been interested in for quite a while was that Pontiac GTO which was built by Holden in Oz.

    I wonder what the future holds - Chapter 11? Breaking up the company? Getting rid of lame old brands? (why dump Saturn which was actually pretty good by GM standards?)

    Nice to see how they have moved into Social Media on the maketing side though.
  • @Greg - I bought a Geo Tracker the first year they came out. I *loved* that car. It was also my first major car accident. I crossed in front of a lawyer in a Volvo. His car EXPLODED pretty much. Every piece splayed out like an engineering drawing. Mine was crushed, but my friend and I both came out just fine (albeit shaken). I loved that little guy. : )
  • Mike Warfel
    Thank you for the most honest sounding review I can remember reading, I have always preferred GMC
    But had become unwilling to invest that all to scarce dollar.
  • Thanks Chris. My husband works for a Chevy Store and I have passed this post on to him to read and share.
  • @Dean - a fair question. I could offer you the latest JD Power reliability study -- not initial quality, but reliability -- that found Buick the #1 most reliable brand in the US market... but that would be very PR-guyish of me. :-)

    I think three things should be kept in mind: 1) the US industry needs to recognize that for a very we earned much of the perception the market now has of us -- and that "why should we believe you THIS time?" is a valid question. We need to answer that over and over again and can't be arrogant in doing so.

    2) Consumers looking to make the best purchase decision in any market owe it to themselves -- not to us as a business, but to themselves -- to take a fair and objective stock of the current market offerings and base their decisions on today's reality. I can't answer for vehicles we built in the past, but I can tell you with confidence that I believe that we now build the best cars on the market and represent your best option.

    3) The era of "social media" (ugh! I used a buzzword!) actually keeps businesses more genuine and closer to that goal of providing the best options on the market. If I'm out here publicly stating on Chris Brogan's blog that I think the Cadillac CTS is the finest luxury sedan on the market today, it had darn well better be (or at least legitimately belong in the team picture), or Chris and his audience are going to call me (and GM) out on it. These aren't just commnications tools; social media, I think, enables audiences to hold us to higher standards -- and also eventually rewards well-founded confidence.

    Just a few thoughts. Thanks for your thoughts, Dean.
  • Shawn Strzepek
    Hey, can you find out when they plan to stop hemorrhaging money? You know, so maybe they can give me back some of my money used to bail them out.

    Thanks
  • We are a family of Toyota drivers but I want to say this.

    A year ago I bought a 1995 Geo Tracker from a neighbor (heck, if a neighbor is willing to sell his car to you, buy it, right?)

    I've fallen in love with this little gem. I've had zero problems with it since the purchase.

    We did buy a new Geo way back in the 90's Know what? That little sucker got over 50 mpg and serviced us well. So, why oh why did GM give up on the high gasa mileage vehicles? That is the 64K question these days and, in my mind, a major reason for it's current problems. That and they let Toyota and Mazda take over as the most dependable cars, at least in the minds of the consumers.

    I can't speak for everyone else, but when I see a Cadillac Escalade I think "Old style American excess." Sorry, but I feel like people buy them to flaunt it to middle and lower class folks. Class war? Yup. Evil? No.
  • @Dean You're right. We need to get consumers like yourself to realize that we've gone beyond past mistakes and are building high-quality cars. The press and other third-party organizations are recognizing our success with cars like the Buick Enclave, Chevy Malibu, Cadillac CTS and Chevy Camaro, but social media allows to bring this information straight to the consumers. The best way to do this is to create dialogue via social media and then work to get these consumers into the vehicles for a test drive. I can't tell you how many times I've heard, "I had no idea GM built a car like this," when we engage the social media realm. There is still work to do, but we're making progress.
  • Chris,

    In my car guy "past" I have driven 1971 TransAm (owned), 1969 Charger 383 Mag, '69 Vette, and the scariest ride of all a '67 Shelby. Every drivers dream of speed indeed. But here is the question:

    How does a company or industry, such as the American car industry, over come decades of perception that has eroded their consumer base to the point they are at now?

    The perception problem in a nutshell? Consumers (I am one) believe American cars break, seemed to made without long term in mind, and are maintenance problems.

    The retro designs are so cool, they are so slick, and the cars seem like they are built with every modern advantage in mind. But the same old problem dogs them--will this car last or will it be in the shop?
  • I don't know if we can be friends any more. ;-)

    Just kidding. Glad you got to "kick the tires" at GM so to speak. They're going through a rough time right now. We're pretty fortunate to be in a different situation at Ford, but we still have a good relationship with our colleagues at the RenCen - Christopher and I go back a ways (he encouraged me to come to Detroit - remind me to thank him some time!) and we're believe that what what we're all doing helps to raise the bar for the industry.

    And to quote our chairman, Bill Ford, "I wish them well. But I wish us better."

    Scott Monty
    Global Digital Communications
    Ford Motor Company
  • Ana Lorena Hart
    Chris- Interesting and thought provoking post. The Confidence~Competence virtuous cycle is certainly different from the Arrogance~Self-Centered vicious cycle. I strongly believe you belong to the first one; but in my mind, it will take a lot of convincing to get GM out of the second one.
    You have a kind way to dignify everything you touch through a post, and I love that about your journey! So, I'm willing to read, listen and walk along... but I still have a mind of my own. :)
    I'm looking forward to tomorrow's post.
    -A.
  • Chris - thank you so much for visiting us yesterday; it was our pleasure to have you. Actually, I'm hoping to hear more from this community about both what y'all like about us and what you don't -- we need to hear both from people if we are to come back strong. But as a start, let me thank you for making the time to come see us.

    Thank you to everyone for your comments. Not that I want to try and take over Chris's comments field, but if anyone wants to Tweet talk with me or anyone else at GM, please find us @gmblogs or @cbarger. (Disclosure: I am off hosting my inlaws for Easter, won't really be back "on Twitter" until Tuesday... so if it takes me a little while to respond, pls understand.)

    Will look forward to learning more from you -- both Chris and community.
  • I'm glad you enjoyed the Camaro. This is exactly the kind of marketing that GM needs. Create a remarkable product and let the people talk about it.
  • Clearly the way to get to a guy (and some girls) is through his car!

    It says we won't be able to get rid of, or modify, the car culture anytime soon.
  • Great post - I'm learning a lot from your blog. I actually traded in my CTS after 7 months (the screaming red Kate Walsh one!) due to it being an absolute lemon. It was in the shop continually and after 4 tries I still had a radio that was fuzzy - brakes replaced (at 3,000 miles!) a new CD player (it died with 6 CD's in it) - oh the stories could go on and on. Nuf said. It was the only GM I'd ever owned.
  • lewishowes
    I think I knows what you got for your birthday :) Looks like Ill find out tomorrow, huh?
  • Sam
    Nice write-up Chris. GM is hopefully thanking you... maybe with a new car. I enjoy reading reviews from "people" regarding cars, and not just gear-heads... I'm actually a little stoked to take a look at this car.

    Hope you get alot more work like this!

    I follow your updates on twitter (@bluetux) and hope to see more stuff like this from you!
  • I've wanted as Escalade (the 'short' one) forever... and then I got into real estate. ;-( My Chevy truck hauled me, a 4-horse trailer with living quarters, with horses... around for years. Vroom vroom! Know if you are ever in Western North Carolina I have a vehicle for you to drive too. And I haven't given up on the little Escalade yet either.
  • @Greg - There are tons of things I don't like about GM. I think they have too many products. But then again, I think this next 60 days is all about divesting of the products and lines that don't make as much sense any more. Things changed, and whether or not GM didn't get off the line fast enough is behind us. What happens now is that the auto industry has to adjust to the new reality and fast. In my piece tomorrow morning, I'll tell you my first take on CEO Fritz Henderson.

    @Adam- doing spoil fun with facts. : )

    @Joe - I currently have the 2006 Saturn VUE.

    @Sean - thanks for your thoughts. I've gotta tell you. Steve Harris, VP of Global Communications, is a really smart guy. Fritz Henderson is a really determined and smart guy. Christopher Barger? Well, he's a great guy, so what can I say?
  • Chris,
    I used to write about the auto industry in my previous life as a print reporter. GM has ALWAYS been confident. The plant where they build the short Escalade is down the street from my old office in Arlington. GM makes GREAT vehicles.
    They still have to overcome the perception that consumers have about American cars. It's happening, but very slowly.
    I love that a company that has been slammed for being afraid to do things differently, got in touch with you via its social media team. If you mentioned "social media team" five years ago, you might have gotten laughed out of the room.
    Still, too ofen the focus is on design geniuses like Bob Lutz who publicly calls global climate change a "crock of s***."
    They still have a lot to overcome, but I like that they are open to new channels.
    Sean
  • What model Saturn do you drive Chris?
  • I'm still musing over the blatant badass-ness of that first photo.
    It makes me want to hear more about this "brand confidence" you speak of.
  • Confidence is a very attractive brand attribute!

    Best.
    William
    www.williamarruda.com
  • Is there anything you don't like about GM?
  • Good for them. Let's hope the infusion of federal dollars and "management assistance" doesn't suck the life out GM's innovation and confidence when it needs it most.
  • Glad to have you join us, Chris. Hope you're enjoying that Camaro! It was nice to see you again.

    Just a heads up, the Camaro actually gets 29 mpg on the highway, and starts at $23K. :)
  • johntindale
    I have been a long-term fan of the general myself, and have had the pleasure of owning 3 chevys, a GM pickup, and 2 Saturns.
    If GM continues to move forward with their fuel-economy research and continues to see growth in China, they will recover. I just hope thar Americans won't have such a short memory, and revitalize their obsession for gas-guzzling SUVs.
  • Christian gehrke
    What a great little story so far. I am American but living in Ireland and I have been here for almost 6 years now. I miss seeing and driving the American classics. As i read you story I was picturing myself driving down these tiny Irish roads in one of those great American cars, hell I would almost settle for seeing one pull up next to me right now. Thanks for adding a little more nostalgia and visions of home to my day.
  • Chris, That's funny I remember seeing the tweet about the Cadillac and I thought I don't care what kind of car he likes. I am following him to learn about social media. Wow, what a lesson I got. I have discovered that it really works. Who would have a thought a comment about a car would lead to a blog post, a visit to GM, and especially getting to test drive a brand new camaro and other cars.
  • People should feel confident in driving whatever they want.......if they can put the gas in it. I'm a longtime GM man myself.
    Awesome that you got to visit.
    Kevin
  • My first car was a charcoal gray '79 Camaro. I thought I was the coolest teenager on earth. It was fast and I was a country girl so I spent a lot of time driving fast on the back roads with my 8 track tape player up full blast listening to Hotel California.

    Ah yes.... those were the days....
  • I like this line, it glistens: "2010 Chevy CamaroThis car is confident. Not arrogant."
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