Wednesday, August 27, 2008
Re: Talking About GM
The Wall Street Journal article concerning GM and the 2009 release of the Chevy Cruze shows the company's new strategies for global competitiveness and increased profitability. The strategies involve its continued, decades-long quest to improve its image, while improving gas mileage, and increasing their presence in the global market place. A CNBC special titled "Saving General Motors" took a glimpse at General Motor's image around the world, especially in China, where the GM image is highly regarded. Young business men searching for their first new car are attracted to the car's quality above anything else and hold the car at the top of their lists when deciding which brand to choose. As noted, the Cruze will debut in Europe and Asia before the U.S. which is indicative of the level in which GM is relying on its overseas markets. These markets are the only area in GM's business portfolio keeping their business alive in the face of slumping SUV and truck sales in the U.S. The Cruze will offer MPG ratings attractively higher than the Civic with a price competitively set around the Honda favorite. Being a GM car owner myself with interest in a Civic based on it's fuel efficiency, I would consider a Cruze when it becomes available in the U.S. GM's dedication to fuel efficiency gives the car a greater chance of profitability once it is introduced to U.S. markets.
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