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Auto on Info  February 2007

Does GM Mean Junk of the 7th Level of Abomination?

By James B. Bleeker

Maybe. At least a Harris Interactive Survey points in this direction.

Annually, Harris Interactive conducts a two-phase U.S. corporate reputation survey. The first phase asks respondents to name two companies with the best reputation and two companies with the worst reputation. Each time a company is mentioned in either category, it receives a point. From the list of companies obtained, the 60 companies with the highest number of points are chosen for the second phase.

The second phase asks a second set of respondents to rate one or two companies on 20 attributes in six key dimensions, including products and services, vision and leadership, emotional appeal, financial performance, and workplace environment. From the responses, a Reputation Quotient is assembled.

The Results

In 2006, General Motors Corporation (with a 1998-2002 Reliability Percentrank average of .32) received a rank of 57, fourth place from the bottom. Close were Ford Motor Company (with a 1998-2002 RPA of .48) with a rank of 55, sixth place from the bottom, and DaimlerChrysler AG (Chrysler Group has a 1998-2002 RPA of .40) with a rank of 49, twelfth place from the bottom.

Some charts and tables that suggest that GM truly deserves this ignominious evaluation are given below.

Table I: Number and Percentage of Entries in CR's 2006 Much-Worse-Than-Average List, by Manufacturer
Auto Manufacturer Number of Entries Percent of Entries
General Motors Corporation 17 50.0%
Ford Motor Company 6* 17.6%
DaimlerChrysler AG 4** 11.8%
Volkswagen AG 4 11.8%
BMW AG 2 5.9%
Kia Motors Corporation 1 2.9%
All Others 0 0%
* Two are from Ford's North American group, two are from the Jaguar division, one is from the Land Rover division, and one is from the Volvo division.
** Two are from DaimlerChrysler's North American Chrysler group and two are from the Mercedes-Benz division.
Source: "CR Bad Bets: Be Especially Careful," Consumer Reports Cars: Used Car Buying Guide 2006, p. 26

Moody's Ratings of General Motors Corporation's
Unsecured Long-Term Debt
Investment Grade Ratings
                                     
                                     
                                     
                                     
                                     
                                     
                                     
Baa1                                    
Baa2                                    
Baa3                                    
Junk Grade Ratings
Ba1                                    
Ba2                                     
Ba3                                    
B1                                    
B2                                    
B3                                    
Caa1                                    
Caa2                                    
Caa3                                    
  01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06
  2005 2006

At the other end of the spectrum were the Reliable Two. Toyota Motor Corporation (with a 1998-2002 RPA of .90) obtained a rank of 9, up 2 places from the 2005 results, and Honda Motor Company (with a 1998-2002 RPA of .88) obtained a rank of 14, also up 2 places from the 2005 results. In-between was Amazon.com, Inc., with a rank of 11.

Some charts that suggest that Toyota and Honda well deserve such high repute are given below.

 

Source of corporate reputation rankings: www.harrisinteractive.com

 

Related Web Pages
True Value Estimates of 2007 Big 3 Vehicles
Roster of 300,000+ Mile Vehicles
Auto Durability Information Page 8
Auto Durability Information Page 7
Auto Durability Information Page 6
Related News Articles
May 2005: Does 'GM' Mean 'Junk'?
October 2004: Is GM King of Junk?
December 2006: Filling the Quota at the Consumer's Expense? How CR's 1998 GM Recommendations Fared
November 2006: True Value Estimates of GM's 2007 Vehicles
November 2006: The 2006 Updates: Honda Age-Equivalent Estimates: Estimates of When a Typical 1998 Model of Honda Motor Company Will Be as Troublesome as Typical 1998 Models of General Motors Corporation and Its Several Marques Were Circa 3 Years, 4 Years, ..., and 7 Years of Age
November 2006: The 2006 Updates: Toyota Age-Equivalent Estimates: Estimates of When a Typical 1998 Model of Toyota Motor Corporation Will Be as Troublesome as Typical 1998 Models of General Motors Corporation and Its Several Marques Were Circa 3 Years, 4 Years, ..., and 7 Years of Age
October 2006: The 2006 Updates: Toyota and Honda Account for 4 of 5 Most Durable Sport-Utility Vehicles; General Motors - 7 of 10 Worst: Will a Typical 1998 Toyota SUV Be More Trouble Free at 21 Years of Age Than a Typical 1998 GM SUV at 3?
October 2006: The 2006 Updates: Toyota Tops in Pickup Reliability and Durability: Just How Bad, or Disastrous, Are GM Pickups?
October 2006: The 2006 Updates: Toyota and Honda Account for 4 Most Durable Vehicle Lines; General Motors - 4 of 10 Worst: Will a Typical Toyota or Honda 1998 Model Be More Trouble Free at 20 Years of Age Than a Typical 1998 GM Model at 3?
September 2006: Toyota and Honda Account for Two Best Minivans; General Motors Accounts for 5 of 8 Worst
September 2006: Reliability Updates: Toyota and Honda Still Tops, But Lose Luster; General Motors Still Worst of Major Auto Manufacturers; Hyundai Clobbers GM Yet Again
September 2006: Reliability Updates: Best and Worst Cars and Trucks Tables: A Chart Summary
August 2006: Reliability Updates: For Vehicles 6-to-8 Years Old, Toyota Accounts for 7 of 10 Best, GM - 17 of 36 Worst
August 2006: Reliability Updates: For Vehicles 5-to-7 Years Old, Toyota Accounts for 9 of 13 Best, GM - 17 of 42 Worst
August 2006: Reliability Updates: For Vehicles 4-to-6 Years Old, Toyota Accounts for 8 of 14 Best, GM - 19 of 47 Worst
August 2006: Reliability Updates: For Vehicles 3-to-5 Years Old, Toyota Accounts for 13 of 15 Best, GM - 17 of 47 Worst
August 2006: Reliability Updates: For Model Year 2002, Toyota Accounts for 11 of 16 Best, GM - 16 of 53 Worst
Related Mini-Surveys
A Toyota Owner Survey with Enquiries into Reliability Importance
A Honda Owner Survey with Enquiries into Reliability Importance
A Toyota Owner Satisfaction Poll with Enquiries into Toyota Durability
A Lexus Owner Satisfaction Poll with Enquiries into Lexus Durability
An Infiniti Owner Satisfaction Poll with Enquiries into Infiniti Durability
The True Value of a Big Three
Big Three Bin Readiness
General Motors Travails and Prospects
Is the Ownership of a General Motors Vehicle a Useful Index of 21st-Century Cognitive Uselessness?

The following poll permits the reader to express his assessment on General Motors Corporation.

 

 

Poll on GM

How big an embarrassment do you think General Motors Corporation is?

U.S.'s biggest
Top 5, but not number 1
Top 10, but not within top 5
Top 25, but not within top 10
Not within top 25

 

To view responses to the above poll, click here.

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