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GM
Maintains Leadership in Much-Worse-Than-Average: A Guide to Making Sales
Challenging
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GM Maintains Leadership in Much-Worse-Than-Average: A Guide to Making Sales Challenging
By James B. Bleeker
Models by General Motors Corporation account for 14 of the 38 entries on Consumer Reports' 2007 much-worse-than-average used car list for model years 1997 to 2006. The following table provides a breakdown by auto manufacturer of this "Bad Bets" list.
Table I: Number and Percentage of Entries in CR's 2007 Much-Worse-Than-Average List, by Manufacturer Auto Manufacturer Number of Entries Percent of Entires General Motors Corporation 14 36.8% DaimlerChrysler AG 7* 18.4% Ford Motor Company 6** 15.8% Volkswagen AG 5 13.2% Nissan Motor Company 3 7.9% BMW AG 2 5.3% Kia Motors Corporation 1 2.6% All Others 0 0% * Three are from DaimlerChrysler's North American Chrysler group and four are from the Mercedes-Benz division. ** 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. Source: "CR Bad Bets," Consumer Reports, April 2007, p. 81
This year's 36.8% share by GM is neither its worst nor its best for the years 1997 to 2007. The following chart plots GM's fractional shares of the much-worse-than-average for these years and extrapolates these points to 2015. The extrapolation is a linear regression of degree one.
The trend line remains downward sloping, but is less steep than last year's. For comparison, last year's chart appears below.
Nonetheless, GM's leadership in turning out much worse than average models appears unchallengeable in the near term, as it holds an eighteen percentage point lead over its closest contender, DaimlerChrysler AG.
This leadership has been an albatross to U.S. sales and market share at a time when many U.S. consumers have been on a quest for quality (see "AFP Reports J.D. Powers Says 61% of U.S. Car Buyers Want Reliability and Durability: More Disastrous News for GM?," Auto on Info, October 2006), as the following chart depicts.
Source for 2007 fractions of much-worse-than-average: "CR Bad Bets," Consumer Reports, April 2007, p. 81
Sources for GM's fractions of much-worse-than-average for 1997 to 2006: "CR Bad Bets: Be Especially Careful," Consumer Reports Cars: Used Car Buying Guide 2006, p. 26, Consumer Reports, April 2005, p. 81, Consumer Reports, April 2004, p. 81, Consumer Reports, April 2003, p. 88, Consumer Reports, April 2002, p. 74, Consumer Reports, April 2001, p. 74, Consumer Reports, April 2000, p. 74, Consumer Reports, April 1999, p. 69, Consumer Reports, April 1998, p. 72, and Consumer Reports, April 1997, p. 68
Note: At the time of writing this article, the above mini-surveys and the following poll are inoperative. The web host is working on reactivating them.
When the web host is able to reactivate the polls and mini-surveys, the following poll will permit the reader to express his assessment on General Motors Corporation.
To view responses to the above poll, click here.
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