Jalopnik Snap Judgment: How the loss of leasing business affects auto sales remains to be seen, but if automakers are getting clobbered on the residuals, taking a loss on each lease just to bump the sales tally doesn't make much sense either. The recent leasing changes may actually be an example of the forward thinking we tend to criticize our American automakers for not implementing often enough. If, at the same time, they offer lower-interest financing and continue to provide cash-back incentives, it could force consumers into smaller new cars or purchasing used cars, since the option of leasing more car than they could buy will no longer be available. [Automotive News (Sub. Req.)]

Despite the rhino-through-the-back-gate approach, we do applaud LaNeve for trying to make nice with the liberals he's thoroughly pissed off by advertising with a right-wing talking head like Hannity. But his argument...

...is probably not going to do much good. That's because LaNeve's argument is:

"GM is the biggest advertiser in America and to tell our story we advertise across a tremendously wide array of media trying to connect with all Americans irrespective of ethnic, religious or political affiliations. We just want folks to experience our products."

In effect, LaNeve's saying that GM's just trying to sell shit and they don't really care what they're advertising on, as long as they've got butts planted in the seats and watching. The problem is the liberals are then going to ask questions like:

"If a lot of people are wearing KKK robes, and a lot of people are watching them, would GM advertise on them?"

And this is where GM's problem is — they're thinking in terms of numbers and not in terms of image. A guy like Hannity's kind of a quack...just like people equally crazy on the other side of the political spectrum. But if GM allows themselves to be connected to that type of a promotion...and in that type of a way (like the advert below), they're basically saying GM's a company that's all for supporting whack-jobs like the guy sitting next to them. That's gonna alienate a hella lot of people.

But we feel like this is part of GM's strategy...especially in a red, white n' blue market like trucks. That's because this is all coming on the heels of the new Silverado marketing campaign — the "Our Country, Our Truck" veritable Amerigasm of mom, apple pie and consumerism. Given that, it seems there's an argument to be made that the General from Detroit's looking to go after Ford and Dodge's market share by trying to out-American them — a much easier task it would seem than it would be to go after Toyota's new HD entrance into the truck-o-sphere in a head-to-head. Better to go after the low-hanging fruit, and as I'm sure the General's found through market research — the low-hangin' fruit listens to folks like Hannity. And by low-hanging fruit, we mean the folks entirely susceptible to stupid gimmicks like a car and truck give-away as a reason they'd buy into a brand. We mean, come on, that's why they're listening to Hannity to begin with, right? – Ray Wert

GM hires Sean Hannity [MichiganLiberal.com]
GM Hires Fox News Mouthpiece Sean Hannity As Spokesman: LaNeve's Response [Think Progress]

Related:
Ad Watch: Chevy Drops Nukes on Cutting Room Floor; America, Truck Yeah! Chevrolet Drops "Our Country, Our Truck" Silverado Marketing Campaign Like A Nuclear Bomb [internal]

"XM Radio has become a must-have feature for many customers and demand just continues to grow. Chevrolet alone has produced over two million XM-equipped vehicles."

Yup, nothing says "must-have" to us like XM Radio. Give us that and an extra cup-holder and we're in for the $27,000 truck. Full press release after the jump.

GM's XM Satellite Radio Option Now $199

XM Satellite Radio is One of the Fastest Technology Rollouts in GM History

DETROIT - General Motors has lowered the option price of factory-installed XM Satellite Radio (NASDAQ: XMSR) by 39 percent to $199, from $325, beginning with most model-year 2007 vehicles. More than 90 percent of GM's model-year 2006 and 2007 U.S. retail vehicles offer factory-installed XM Satellite Radios as either an option or as standard equipment.

"The economies of scale and engineering efficiencies brought by the rapid pace of XM Radio installations across GM's product lineup allow us to pass along cost savings to our customers," said Mark LaNeve, vice president of GMNA Sales, Service and Marketing. "XM Radio has become a must-have feature for many customers and demand just continues to grow. Chevrolet alone has produced over two million XM-equipped vehicles."

Consumer acceptance has made factory installation of XM Satellite Radio one of the most rapid technology rollouts in GM history. More than 60 percent of current GM customers with XM-equipped vehicles say they will prefer their next vehicle be equipped with XM Radio and 80 percent say they will recommend it to friends and family. General Motors, the industry leader in offering factory-installed satellite radio equipped vehicles, has built over 4 million XM-equipped vehicles since 2001 — more than all other vehicle manufacturers combined.

"The strong support of General Motors and its customers has been a key factor in establishing and maintaining XM's leadership position in satellite radio and in-car entertainment," said Steve Cook, Executive Vice President, Automotive, XM Satellite Radio.

XM is the exclusive satellite radio partner of GM, which offers more than 50 vehicle models that feature XM Satellite Radio — the most extensive model line up of satellite-equipped vehicles in the industry. GM was the first vehicle manufacturer to introduce satellite radio in 2001 as a factory-installed option on 2002 Cadillac DeVille and Seville models. XM Satellite Radio is standard on all Cadillac models. All GM retail vehicle sales with factory-installed XM radios include a three-month trial service period.

###

About GM

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

About XM Satellite Radio

XM Satellite Radio (NASDAQ: XMSR) is America's number one satellite radio company with more than 7 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City, the Country Music Hall of Fame in Nashville, Toronto and Montreal, XM's 2006 lineup includes more than 170 digital channels of choice from coast to coast: the most commercial-free music channels, sports, talk, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market. XM is available in more than 140 different vehicle models for 2006 and at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com.

Related:
All Your Pods Are Belong To Us: Apple Inks Deal With GM, Ford, Mazda

Dear GM Dealers:

Here's a great opportunity! The date of the Summer 2006 NADA Dealer Attitude Survey administration has been extended through Friday, August 11, 2006. So, if you haven't had a chance yet to submit your feedback, please do so by directly linking to the Web site at...

...http://www.nadasurvey.com. If you've already turned in your survey, thank you for taking the time to do this.

There are a number of third-party sources we here at GM utilize to monitor the company's performance, but there's no better way than reviewing NADA survey results for us to understand how your customers are feeling and how you think we can continue to improve our mutual business. I assure you we take the survey seriously and spend significant time analyzing the results - and then acting on your feedback.

Importantly, remember, the more surveys we get, the more accurate the survey will be. So, I urge you to please take time to let us know what you think. Your feedback matters and will help keep us heading in the right direction.

Thanks for all your continued support.

Sincerely,

Mark LaNeve
GMNA Vice-President
Vehicle Sales, Service and Marketing

Yes, we've got to say how sad it is that its so in need of positive reinforcement, the General needs to be upbeat and positive about a "Dealer Attitude Survey." Either that or folks in LaNeves office are all on Zoloft.

Related:
Broke? GM Fires Multibillion-Dollar Claim Against Delphi

"June and July sales aren't going to be a picnic...Our year-on-year comps are going to be especially brutal."

Yeah, somehow we didn't expect it to be a picnic — but brutal — wow, talk about honesty. It's kind of like a refreshing...

...drink of water after a long walk in the desert.

Anyway, after that bombshell of a quote, LaNeve then explained to the assembled press scrum the incentive program. It was rolled out to dealers this week will be called "The 72 Hour Sale" and will offer zero percent financing for up to six years on most 2006 Chevrolet, GMC, Pontiac and Buick models. Fine print: all good cars will more than likely be excluded.

GM announces return of zero percent financing on most models [Freep]

Related:
Summer Sales Fever: You Get An Employee Discount, And You Get An Employee Discount, And You...! [internal]

Full text of the memo after the jump:

Date: May 16, 2006

To: GM Dealer Network

Subject: VSSM and SPO Field Realignment and Leadership Announcements

Several months ago, we announced that we were planning to realign the VSSM and SPO field organization to support our U.S. Market Growth Plan and Channel strategy. This important initiative will positively impact the way that we interact with all of you on a daily basis, so I wanted to share the leadership structure and appointments with each of you.

Regional Sales and Marketing
Each region will have three Regional Sales and Marketing Managers (RSMMs)—-Chevrolet; Pontiac-Buick-GMC; and Premium-Saturn. The RSMMs will be responsible for the integration and implementation of the marketing and sales tactics for their brands in their region. They will report to the Regional General Manager, and work with their respective Divisional General Manager to ensure linkage to channel specific marketing initiatives. The Regional Divisional Marketing Managers (RDMMs) are aligned by channel and will report to the appropriate RSMM. Zone teams will call on dealers within a channel and will report to the RSMM for that channel. Saturn Market Area Managers and their teams will continue to report to the Saturn RDMM and Sales Manager, who will report to the Premium-Saturn RSMM, in recognition of the Saturn channel. Together, these changes will provide for better development, communication and implementation of our go-to-market strategies.

Customer Retention, Parts and Accessory Sales
Approximately three out of 10 new GM vehicle owners return to their GM dealership for vehicle maintenance. With the field realignment, we are taking steps to focus on customer retention and revenue opportunities so that more GM vehicle owners will return to you for their vehicle maintenance. Each region will have a Regional Service Development, Parts and Accessories Manager and an Assistant Regional Manager-Aftermarket. These positions will report through the Executive Director SPO-Field Operations and have a dotted-line relationship to the Regional General Manager. Duane Miller is appointed to the Executive Director position. The Regional Service Manager (RVM) position will continue to be part of each region and operate with its current responsibilities and reporting relationships, including an ongoing relationship with Peter Lord, Executive Director Service Operations. Together, these positions will lead our efforts with you to increase customer retention and grow parts and accessory sales.

Other Changes and Important Dates
We are now working to appoint dedicated zone teams to a single channel in terms of their assigned dealers. This will result in several new appointments at the zone and direct contact level. We are working to minimize the disruption to you and your business during the transition to this new structure, which we will begin operating under effective July 1. Our goal is to drive sales and service contacts and decisions on a channel basis, which should provide more focused support for your business.

Thank you for your hard work and contributions to helping us achieve GM's turnaround.

Sincerely,

Mark R. LaNeve
GMNA Vice President
North American Vehicle Sales, Service and Marketing

Related:
GM Announces MSRP Cuts [internal]

"A new pricing paradigm!" "Even more value!" Today at the NAIAS, GM, in the wake of figuring out that deeply discounted vehicle pricing has demolished their credibility among buyers, has decided to better service their customers by dropping sticker prices on every Chevy, Buick and GMC, as well as most Pontiacs. According to one Mark LaNeve, "Starting right now, we are going to communicate a clear, simple message. In more segments, with more brands, GM has a great product at a great price, and in many cases, we have the best product at the best price." Dude, Mark. The Z06 doesn't count as "many cases," but you get a half a gold star for trying.

Related:
The Truth About the GM Death Watch: Pricing for Dollars [Internal]

The trek up from Pedro to the Convention Center took a tad longer than we expected this morning, and missed arriving in time to catch Jay Leno's arrival onstage in a Z06 Daytona pace car, which he'll pilot during the next running of the 500. The paint job was stupid. Mark LaNeve played straight man to Leno's goofball, and after saying that he thought bi-fuel vehicles would go over well in California because he has a lot of friends that're bi, he went for the biggie in the run-up to the launch of the new-and-ugly Suburban and Yukon XL.

"So, what do you have if I want to take seven or eight guys up to Brokeback Mountain? They're big guys." We personally thought this was totally, completely rad. It obviously took LaNeve by surprise, which we liked. Jay Leno! Onstage in front of the auto industry, insinuating episodes of flannel-ripping man-on-man-on-man-on-man-on-man action would occur if LaNeve hooked him up with a Suburban! LaNeve looked like the heel he seems to be to us. If only we'd had the presence of mind to walk up to him and said, "Hey Marky. Dave from Jalopnik here. Wanna go try out the back of that Hummer over there?" Then again, even if we were gay, we wouldn't touch LaNeve with a forty-foot driveshaft.

Carlist's got a summary of the whole presentation if you're so inclined.

Jay Leno Makes Mark LaNeve Squirm [Carlist]

It's no secret around here that GM doesn't particularly love us. Our readership isn't exactly miniscule, we're part of a high-profile network of blogs, and we're even occasionally fun to read. Yet unlike other automakers, the General won't give us the time of day. We're not on their Fastlane blogroll, and what's more, they still won't give us access to their press site. Basically, they like to pretend we don't exist. So somebody over in Web services at GM must have it in for Mark LaNeve, because we ended up first on the list of sites that reference Mark LaNeve's latest Fastlane post regarding GM's revised Red Tag promotion. For a quick refresher, check out our Robert Farago's evisceration of LaNeve here.

Red Tag With a Twist Comments [GM Fastlane]

Related:
Between The Lines: GM's LaNeve on Red Tag Sale [Internal]

The General has decided to revive the moribund market for its substandard sheet metal with yet another national incentive / discount campaign. Out goes GM s Total Value Promise (something about the sticker price reflecting the actual price), less than halfway through its promised run. In comes the Toe Tag Sale — I mean, Red Tag Sale. The man who promised to stay the course is, of course, the same man who must now sell the new, new plan. And check this: Monster Mark LeNeve is blogging!

GM s VP of Vehicle Sales and Marketing begins his Red Tag with a Twist blog post with a subtle justification for The General s volte-face and then, as befits a million-dollar-a-year (plus) marketing maven (just ask his Mom), adds a come-on.

Last year about this time, GM introduced the Red Tag Sale, a year-end marketing program that broke new ground for us and was a huge success. This week we ve brought it back for another run from Nov. 13 to January 3, 2006 but it s a new and improved version.

Also, you ve got to wonder to whom the Monster thinks he s talking. Why should potential GM consumers care that the previous Red Tag Sale was an innovative success for MM s employer (ignoring the fact that it wasn t)? There s an implied sense of arrogance — what s good for GM is good for your sorry ass — which won't sit well with GM camp followers (e.g., the seriously pissed-off comments following MM s blog entry).

It s also interesting to note that the Monster s put a precise time frame around the latest GM fire sale. Lest we forget, GM extended its summer promotion — twice. But hey, this is a new and improved version of the Red Tag Sale where

the listed price will be low, surprisingly low; and the price on comparably equipped models will be the same nationwide. This simple, consistent offer, along with the what you see is what you pay concept is the kind of straight-forward approach to pricing that people really appreciated about our earlier programs.

The second graph s real downer is the Monster s price promise. It s a lie. If you listen closely to the advertised details, GM s red tags will show a vehicle s maximum price — not the final price. In other words, if you take MM s what you see is what you pay statement at face value and don t try and beat your dealer down a bit more, you re a chump. [Jalopnik looks forward to readers analysis of GM Red Tag prices vs. pre-Red Tag prices.]

From there, Monster Mark goes spinning off into cyberspace:

There are a couple of reasons why I like the Red Tag Event. First of all, it builds on the growing consumer awareness that GM stands for tremendous value... Just as importantly, Red Tag again gives us a leg up on the competition. With our program, consumers won t be at all confused about what they are going to pay for a a [sic] Chevy, Buick, Pontiac or GMC vehicle. After all, it s right there on the sticker. None of our competitors can make that claim.

I won t trouble you with GM s Chief Cheerleader s Big Finish, except for the final bon mots:

the focus on exceptional value represented by our vehicles strengthens the GM brand. That is critical to our success in 2006 and beyond.

Red Tag with a Twist [GM Fastlane Blogs]

[Jalopnik s Between the Lines column parses the rhetoric of the automotive industry, and the media that covers it, from the point of view of that kid at the back of the class with ADD, a genius IQ and a thirst for mayhem.]

Related:
Between the Lines: Lutz in the Blogosphere [internal]