GM The past few weeks my little sister has been shopping for a new car. We’ve been visiting various cardealers, a quite time-consuming activity. One car here, the other there, you have to wait everywhere to get a testdrive. Apart from the possibility to buy a car on the internet (eg. on eBay), the car buying business is very old-fashioned.

So I was very surprised to read that GM in the US is making a revolutionary move. They are supplying every GM dealership with Honda’s and Toyota’s so customers can make an on-the-spot comparison. They must have read this WIREDIs this a revolutionary act of transparency in the very conservative car industry?



This move of GM fulfills a big wish of car buyers: the possibility to compare cars. The web is loaded with comparison sites and cars are no exception:
car comparison

BUT, the web is also a great place to bash on GM, which is known for its awful quality. This has resulted in declining sales and massive losses. In 2006 GM lost $US 2 billion (and US$ 8.6 billion in 2005). Toyota has recently passed the American giant in sales volume. GM is taking a huge beating on the web, where the empowered customer speaks out. For example on sites like these:

gm sucks gm1 GM4 GM5

GM2

wit

People want to compare cars and now the only place they can do this is on the web. But this same web is transparent and its content is killing GM. So the company decided to boldly take the web’s transparency and bring it to their showrooms. In an attempt to beat the enemy with its own weapons, GM hopes people will make their buying decision in the showroom and not in the comfort of their homes with a a computer (full of compromising info) at hand.

It is a brave move, as Toyota is selling three times as much Camry’s as GM does Aura’s. Personally, I think it is a desperate move of GM and badly executed. Because GM is only battling the comparison battle on the mid-size car market. When it comes to SUV’s (where they have a 70% marketshare) they do not have the guts to roll in a Toyota Landcruiser.


In the end I think the idea is brilliant, but it is partial transparancy and not total transparancy. The 21st century consumer wants total transparency, but GM is thinking out of its own sales figures and not out of the consumer. I hope the idea will be picked up by another brand which will take it a few steps further.


1 Comment
Bastiaan June 15, 2007

I very much doubt any customer would expect an unbiased comparison at the GM showroom. So I think most customers would still rather check out both showrooms and compare the irrational enthusiasm of the showroom salesmen. (And of course google em all :) )

 

Write Comment

Name (required)
E-mail (required - never shown publicly)
URI
Subscribe to comments via email
:) :( :imo: :danger: :cash: :brain: :doubt: :dont: :new: :quote: :todo: !!! :conflict: :good: :bad: :ok:
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong> in your comment.

Cupertino (beta)