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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: w0z who wrote (8661)	5/5/2003 8:22:44 AM
From: robert b furman	Read Replies (1) \| Respond to of 206859

Hi Bill, (OFF TOPIC) It is a constant battle.Quality and innovation are now requirements. The quality of imported competition has forced domestic makers to upgrade their own quality. In total, I'd say that foreign competition has been very healthy.That's trying to be a realistic as possible as most domestic dealers are bitter regarding th marketshare loss. It is interesting to note that Mercedes quality and customer satisfaction has plummeted recently.I think that with the Euro strength and their quality drop, Mercedes will have a hard time financially. The truly worldwide powerhouses of auto manufacturing are Toyota and GM.The rest are subject to fits and starts and mergers and acquisitions(bankruptcy). I agree with your statement regarding advertisng.It has far too long been looked at as a cureall for poor design and or styling.If you build a great looking car the world will beat a path to your door(PT Cruisers proved the point).Quality anymore is almost a given. Gm's advertising is way too much a piece of there cost.To have as many divisions as they do and to expect killer cars from each division is naive thinking. GM needs to get to 2 divisions:Chevrolet/Cadillac and GMC truck/Pontiac(which should morph in Buick). Saturn was Roger Smith's bad Idea of adding another division to an alredy crowded field of play - just to get back at American Unions.Most Chevy dealers I know call Saturn the new Cavalier - they never got. Although on a roll now, Hummer will become dull and mundane as its product cycle ages also - IMHO. Toyota has the Camry,Honda the Accord and civic,GM has the overcrowded pallet of look alikes. Collectively Billions are spent in their perceived differentiation ,that could well go to product quality/value and much less advertising - and yes some bottom line profit for the General.This is big old baggage and it takes time to wind down franchises - once Olds is gone I expect Buick to get whacked. I am the ONLY dealer in houston that is not part of a local advertising group.Sort of a black sheep.But my vehicles are about 175.00 cheaper than anybody elses.hehehe Price sells many car when they are all similar not the ad.JMHO Bob