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Does GM
Mean Junk of the 7th Level of Abomination?
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 DebtInvestment 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 The following poll permits the reader to express his assessment on General Motors Corporation.
To view responses to the above poll, click here.
Links to Amazon.com
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