GM launches site to bust myths about its business

Posted Fri Sep 5 2008 2:56 PM by Nelson Ireson

GM launches site to bust myths about its business

Bankruptcy, bailouts, secretive plots to kill electric vehicles - General Motors has been accused of seeking all of these. To help set the record straight, or at least put out the official spin, GM has launched a new 'Facts or Fiction' site that aims to torpedo many of the popular misconceptions about the company.

Among the more interesting are the company's reasons behind ending the EV1 - which center around battery inadequacy - and talk of bankruptcy protection. The company fully denies it is in any way considering bankruptcy, and says its plan will see it through the 'downturn in the U.S. market.' To be fair, both of those statements ring truer than the opposition.

Other claims, however, such as GM's support of the 35mpg CAFE standards, are couched in careful manipulation of the issue. The claim that GM opposes the standards is answered by a statement of support for 35mpg by 2020 - not the currently proposed 2015 deadline. Likewise, the claim that GM clearly anticipated the growth in demand for fuel-efficient cars falls flat, despite recent improvements in the area. If it had truly anticipated the shift, it would already have these cars to market, rather than advancing timetables from 2010 or 2012 to now.

Of course, the entire industry was blindsided by the rapid rise in oil prices over the past 12 months, as was the global economy. So GM can't bear the blame for the situation; neither, however, can they fairly get away with claiming to have foreseen it.

Finally, a few of the 'myths' busted by the site seem hardly credible. For instance, only conspiracy theorists think the car industry is conspiring with the oil industry to hide quick, cheap and easy efficiency improvements. If they existed, they'd be using them at breakneck pace. Another example myth: GM doesn't make cars that people want to buy. Take a test drive of a Cadillac CTS or a Pontiac G8 and try to say that with a straight face.

If that doesn't convince you, consult a sales chart - seven models, including the Cobalt, G6, Aura, Vibe, CTS, Malibu and Enclace, have seen sales increases ranging from 10% to 156% in 2008, despite an overall downturn in the market. That's something worth crowing about, even if there are another two dozen models currently failing to break even.

The site itself is an interesting attempt to engage in a dialogue with the public about GM's and the industry's current situation. While it doesn't allow for direct interaction or user-generated content, it does show that GM is listening and that it has a response, however late.

Reader Comments

  • Fri Sep 5 2008 2:59 PM

    Laz says

    Glad to see Toyota doing its part to help GM with the Vibe...

  • Fri Sep 5 2008 5:25 PM

    Gus says

    Interesting.

    I used to have a friend who decided that the whole 9/11 attack was a hoax, and I can't stand people like that. Of course he thought the moon landing was probably faked as well.

    That said, people who love conspiracies tend to think they have the answer for everything, and that the world is against them. Many people refuse to believe the simple truth, even about GM...

  • Sat Sep 6 2008 2:47 AM

    carsinamerica says

    Another example myth: GM doesn’t make cars that people want to buy. Take a test drive of a Cadillac CTS or a Pontiac G8 and try to say that with a straight face.

    That may be true, for certain types of people (pure driving enthusiasts). However, what many people want is an efficient, comfortable, well-laid-out, cheap-to-operate vehicle that will get them reliably from Point A to B to C, without a stop at Point Repair Shop. That's where GM has much less of an edge (no edge at all, in fact).

    And, speaking to my own situation: I can't afford either of the cars you named. They're way out of my league. Working in retail and having students loans, I couldn't afford a car that cost more than $18k. GM makes nothing in that price range that touches the competition for quality, features, and reliability.

    Meanwhile, GM spins and spins. "GM currently has more models with EPA highway ratings of 30 mpg or better than any other carmaker, 18 in total." Why is that? Because GM has EIGHT DIVISIONS.

    It's note even true, either. Look at the 2008 EPA Fuel Economy Guide. What GM models get 30 or better mpg? The Chevy Aveo, Cobalt, HHR, Malibu, and the not-for-sale-to-the-public-because-it's-the-old-Malibu Classic; the Pontiac G5 (Cobalt clone), G6 (Malibu twin), and Vibe; and the Saturn Astra, Aura (Malibu twin), and Vue Green Line. That's 11 models. Even if you count every bodystyle as a separate model, that's only 15 models (adding Aveo5, coupe for Cobalt, coupe G6, & 5-door for Astra). YAY! WE HAVE 11 MODELS THAT GET 30 MPG BY SELLING MODELS THAT COMPETE AGAINST OUR OWN MODELS FOR SALES! ARE WE THE S*** OR WHAT?

    As for the sales figures, that's cute. GM's small-car sales should be improving, given the downtown in the economy and the cost of fuel. The Enclave is a success (although comparing this year's sales to a model introduced partway through last year, with initial supply limited, is a tricky thing). News flash, though: of all GM's trucks/CUVs/SUVs/vans, these are the only ones not going down: the Enclave, the Acadia (up 9% on-year), the Chevy C/T Series -- whatever that is (up 10% this year, year sales-to-date: 213), the GMC Savana Special (a cut-version of the Savana, up 15%), and the Saturn Vue (the most efficient CUV GM sells, up 4% for the year). Everything else is bad, or worse, with double-digit losses among most truck-based vehicles, which represent the core of GM's profit-making. Spin that, GM. At, Toyota, BTW, the Yaris is up 32% on the year, the Corolla down 2%, the Camry down 0.1%, the Scion xB up 22%, and just to one-up the Enclave in irrelevant comparisons, the Scion xD is up 683.5%. At Honda, the Fit is up on the year 54%, the Civic is up 14%, and the Accord is up 9%. Who's doing well now?

  • Sun Sep 7 2008 7:21 PM

    Don says

    You know things are bad when a company builds an entire website to refute rumors.

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