Report: GM Can Rebound With Right Products

Automotive consultancy AutoPacific says that GM can transcend bankruptcy and maybe even rebuild consumer confidence in the GM nameplate. But it can only do so with the right products.

But clearly, bankruptcy has put a hurt on consumer confidence about the brand, judging from the firm's own survey fielded in early June. Fifty-seven percent of respondents said they were concerned about buying from GM, versus 6% for Toyota, 7% for Honda and Nissan, 9% for Hyundai and 10% for Ford. General Motors, however, was second to Chrysler, which 62% of the survey's respondents were concerned about.

In the survey, 67% of respondents said management was the principal problem for GM. And over half said capitalism should have been allowed to run its course and that GM should have been allowed to fail. Forty-eight percent said they were angry that GM got taxpayer funds. Only 16% had any confidence that GM and Chrysler will come out of bankruptcy even when the economy recovers.

A separate AutoPacific survey asked consumers -- on a scale of 1 to 5 -- how strongly they felt that the credit crisis has been the primary cause of automakers' problems. About 50% disagreed -- 25% strongly -- that the credit crisis was an influence on automaker problems.

Still, says AutoPacific, the brand must also have a so-called "halo" vehicle -- a sporty car that dealers can park on the grass to lure customers. Until now, Corvette has had that role, but AutoPacific says Chevrolet's new Camaro is more important as a "halo" vehicle because it is more attainable and versatile.

Excerpts from "Marketing Daily" of MediaPost Publications

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