GM Engineers Call Customers Who Returned Cars
By Michelle Krebs November 19, 2009At the request of General Motors' new chairman, Ed Whitacre, the automaker's top engineers are calling the couple hundred customers who are returning or exchanging their GM cars under the 60-day money-back guarantee policy to find out why.
Mark Reuss, GM's recently appointed vice president of global engineering, told reporters Thursday that he personally is calling customers.
This evening, Reuss will call a customer who was dissatisfied with and returned a Chevrolet Malibu under the program. And he will call the buyer of a Chevrolet Silverado who reported the interior room wasn't roomy enough and the exterior paint and finish were unsatisfactory.
Reuss, in a roundtable with media, used the effort as an example of how product development is changing under the new board of directors and chairman of the now-out-of-bankruptcy GM.
Whitacre suggested the idea over dinner with Reuss and his top engineering staff.
"It was a really good idea," Reuss said. "First, the customers are thrilled the engineers and vice presidents are calling them. But it's also about as direct and unfiltered consumer feedback channel as any we've done."
Under the umbrella of its May the Best Car Win marketing campaign, GM instituted a 60-day money-back guarantee that it has since extended through Jan. 4, 2010. Of the 220,000 vehicles GM sold since the promotion went into effect in September, about 653 customers have opted for the 60-day guarantee coverage instead of the $500 cash rebate. Of the 653 customers, about 140 have initiated returns or exchanges and 53 have completed the return/exchange process, for a return of less than 1 percent total.
Reuss said of those customers who returned or exchanged a vehicle, less than 10 percent actually left GM completely.
Under the program, customers may return their vehicles to the dealer between 31 and 60 days of purchase for a refund of the purchase price of the vehicle. The offer covers all 2009 and 2010 Buick, Cadillac, Chevrolet and GMC vehciles. Other rules include no more than 4,000 miles on the returned car and no being behind in car payments.
Another example cited by Reuss of how the board is having a say in product development was in regards to the Chevrolet Cruze small car. GM engineers recommended a three-month delay of the Cruze to make improvements. Reuss said it took only a 30- to 45- minute discussion with the board's executive committee to get the okay. -- Michelle Krebs, Senior Analyst and Editor at Large
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Click here to comment on this entry.Gotta give GM credit for interacting so closely with consumers. Very few corporations are willing to take that step of direct dialog.
oh really? just a good PR move in my thinking. why not call all those who have problems with the water leak on their Acadia and Outlooks? I don't even own any of them, but I just feel very sorry for the furious owners who spent so much "NON PROFESSIONAL GRADE" piece of crap! Actually I'm glad that GM no long use that as the GMC's slogan anymore.
alman - read the piece. They are doing this because it is part of the return policy. The Acadia's you refer to we from before this time.
So it makes sense to start with something manageable which 200 returns is.
Kudos to GM for doing this. It seems some people will criticise come what may.
"return it, no question asked" was part of the program, and i did read the piece. but from reading your message, i think it's difficult for you to comprehend... it seems some people will always fall for PR tricks.
alman - It's pretty obvious that in your eyes whatever GM does to climb out of their current hold will be a prime example of, "too little, too late, or not good enough". And the last I remember, those 200 took GM up on their "return it, no question asked" got to return the car under those conditions.
Yeah, GM did a followup - I'm sure the customers could have refused to talk to them if they wanted to. Given human nature, I bet they were happy to vent.
I love it. For once in it's history GM goes the extra mile, and you can only see evil and lies in their actions.
alman - you complain about GM because of some Acadia's. If GM had not called these people who had returned cars whould that have helped the Acadia owners? or future GM owners?
Of course you just want to be cynical and believe that GM does not want to improve. I bet if Toyota did this you would say how wonderful everything was.
Wrong, because Toyota would never get themselves in this situation. Again, I think you have troule to comprehend and your assumption about me and Toyota only proves my point. But do keep going, support your beliefs. There is nothing wrong with that.
(I will clue you in one thing... if GM will make the REAL industry breakthrough and not the silly PR work, go take care of all the disgruntle customers and they will be happy with that action, perhaps spread the words to others to purchase GM cars). By the way, do learn a thing about marketing, international marketing, management, industrial management, finance, economics, and human resources before you start your bashing, ok, mr. guy1974.
^and I don't mean just taking a class here and there, ok?
I think Mark Reuss' comment was telling, "(But) it's also about as direct and unfiltered consumer feedback channel as any we've done." Direct, live contact with the dissatisfied customer rather than 6th-or 7th hand thru the salesperson, manager, dlr. principal, district labyrinth, brand boss etc. Also, I would think, more revealing than a multiple choice written survey.
And perhaps some marginal PR benefit, too.
Mr Alman08 - First I was not bashing, second maybe you should learn about marketing etc.
You say Toyota wouldn`t have let this happen. Umm I seem to recall that over the past few years, including this one, Toyota has had more recalls than GM or Ford. I also seem to recall that in JD Power and other surveys some domestics brands are scoring higher than Toyota for quality, reliability and other attributes.
Maybe you need to rethink your stale old views about domestics and the wonders of imports - Toyotya are losing money as well. So if GM is lambasted for running a poor ship then I assume your critisicism will extend to Toyota.
What is so wrong with GM getting unfiltered feedback? You would complain if they didn`t care, so they do it and you still complain. Umm pretty hard to please you.
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