Municipal Bond Forum
On GM Steals Spotlight at Auto Show
Q
The problem with GM and Ford is not with the cars, but with the quality of service after the purchase. They are too focused on making a profit for the shareholders. They should put the customer first. GM can’t even sell a Toyota as a Chevy Prizm because everyone can still remember the bad service of the 1970s.
You are really going out on a limb! I called on these buffoons for years and they never got the message. The most mismanaged company I ever called on in my 30-plus years in industrial chemical sales. Now I’m retired and they’re still trying to get their act together. When I spoke to GM CEO Rick Wagoner back in the 80’s, all they wanted was the supplier to cut their prices to make up for their inept ability to run a company. They will go the way of the horse and buggy!
A
James A. Klotz responds:
We think the G.M. turnaround is gaining momentum because the company reached a similar conclusion. They also recognized that to be successful, it was not only necessary to improve quality, but also convince the consumer that it had. There is evidence that substantial progress has been made on both fronts.
G.M. received a number of J.D. Power awards for vehicle and plant quality. In an effort to put its money where its mouth is, the company now provides a
100,000 mile/five-year warranty as standard on all 2007 GM passenger care and light-duty trucks.
Although there have been a number of missteps in the past, we think the efforts
being made today will make GM bonds a great bet and also change your opinion.
Start here.
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