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View Full Version : Saturn to have Toyotas and Hondas in their showroom



jred321
05-25-2007, 03:53 PM
http://www.cnn.com/2007/AUTOS/05/25/gm_vs_camry/index.html

NEW YORK (CNNMoney.com) -- If you want to test drive a Toyota Camry or Honda Accord, starting next month you'll be able to do it at a Saturn dealership. General Motors is asking Saturn dealers to have one or more of the competing models in the showroom so customers can look at it, sit in it and drive it.

Of course, Saturn dealers can't sell you an Accord or Camry. But they hope that, when you see a Toyota or Honda sedan next to the Saturn Aura, you'll decide to buy the Aura.

"In that side-by-side comparison, we come out really well," said Mark LaNeve, head of North American sales and marketing for General Motors.
Later this year, Chevrolet dealers will be doing the same thing as they introduce customers to the redesigned Chevrolet Malibu, which shares its engineering platform with the Aura.

In focus group research, GM has shown potential customers new GM models next to competing vehicles with all brand identifications removed and, said LaNeve, customers have reacted well to the GM products.

CNNMoney.com: 10 great first cars (http://money.cnn.com/money/galleries/2007/autos/0705/gallery.starter_cars/)

Another advantage for GM dealers in having competing products on site is that customers may not need to set foot in a competing dealership before making a purchase decision.

"I think we can stand up to the comparison," said Wade Hoyt, a Toyota spokesman.

Auto salespeople always research the competition, he said, and prepare advantageous comparisons to offer customers considering another product.

"They talk down the competition all the time," said Hoyt, "so this is just taking it one step further"

According to industry newspaper Automotive News, sales for the Saturn Aura, which was voted Car of the Year by automotive journalists in January, 2007, have been disappointing for GM. So far this year, about 18,000 Auras have been sold, according to Autodata, a company that tracks car sales.

Part of the reason GM is willing to take this step, said LaNeve, is because the company has little to lose. Midsized sedan shoppers often don't even consider GM products, he said, instead going straight to Honda and Toyota dealers.

The Toyota Camry and Honda Accord are now the two best-selling cars in America.

"Over the course of a few years that became the default choice," said LaNeve.

GM has sold about 48,400 of the current version of the Malibu so far this year. Meanwhile, Toyota has sold about 145,000 Camrys.

GM wouldn't even consider doing something like this with its SUVs, said LaNeve. GM currently holds about a 70 percent market share in large SUVs, so there would be little to gain from bringing Toyota Sequoias into Chevrolet dealerships to compare to the Tahoe.

jred321
05-25-2007, 03:59 PM
my favorite parts

But they hope that, when you see a Toyota or Honda sedan next to the Saturn Aura, you'll decide to buy the Aura.

"In that side-by-side comparison, we come out really well," said Mark LaNeve, head of North American sales and marketing for General Motors.

In focus group research, GM has shown potential customers new GM models next to competing vehicles with all brand identifications removed and, said LaNeve, customers have reacted well to the GM products.

According to industry newspaper Automotive News, sales for the Saturn Aura, which was voted Car of the Year by automotive journalists in January, 2007, have been disappointing for GM. So far this year, about 18,000 Auras have been sold, according to Autodata, a company that tracks car sales. (hell of a car of the year they got there, wonder how much they paid for that designation)

Midsized sedan shoppers often don't even consider GM products, he said, instead going straight to Honda and Toyota dealers.

GM has sold about 48,400 of the current version of the Malibu so far this year. Meanwhile, Toyota has sold about 145,000 Camrys.

seanmcsean
05-25-2007, 05:03 PM
I bet they'll let you beat the snot out of those camrys and accords too.

Foolish
05-25-2007, 05:37 PM
I got a chance to go to GM's "autoshow in motion" event a couple of years ago. They had pretty much everything GM makes/imports/sells, plus a bunch of their competitor's cars. The idea, of course, was for you to drive both and decide you liked GM cars. It didn't work too well on me, as I drove the Toyota Matrix and Pontiac Vibe (mechanical twins, co-produced by GM and Toyota) and found the Matrix much nicer inside! Nice try, GM.

Midsized sedan shoppers often don't even consider GM products, he said, instead going straight to Honda and Toyota dealers.
For those people, the fact that there's a Honda and a Toyota sitting at the Saturn dealership isn't going to change the fact that they don't even consider GM products! What GM would need to do to reach those customers would be to get a Saturn Aura in the Honda and Toyota showrooms!

JPMotorSport
05-28-2007, 12:22 AM
For those people, the fact that there's a Honda and a Toyota sitting at the Saturn dealership isn't going to change the fact that they don't even consider GM products! What GM would need to do to reach those customers would be to get a Saturn Aura in the Honda and Toyota showrooms!

No. I think what GM needs to do is create more unique and interesting product. Improve quality, content, performance, uniqueness, and 'soul', and the customers will come.

silverspeed03
05-29-2007, 08:58 AM
No. I think what GM needs to do is create more unique and interesting product. Improve quality, content, performance, uniqueness, and 'soul', and the customers will come.


I agree 100%.

dmitrik4
05-29-2007, 09:35 AM
No. I think what GM needs to do is create more unique and interesting product. Improve quality, content, performance, uniqueness, and 'soul', and the customers will come.

part of the problem is that the cars can have all the soul they want, but unless people try them out, it won't matter. GM has dug itself a hole that can't be escaped by simply making a better car. they have to make the better car and sell it, too, b/c it's not going to sell itself like Accords and Camrys do.

from all i've heard, the Aura is a car like you're describing. but unless people start seeing GM products for their merits and not as they see the "usual" GM products, nothing will change. this thread (and others like it) are perfect examples...people have made up their minds about GM (and Ford and Chrysler) products and won't consider otherwise, regardless of the merits of the product itself.

i think this is a good idea. a close-up comparison is a nice way for people to judge that cars, and honestly, the fewer stops one has to make while car shopping, the better, IMO. it's a huge PITA to drive from showroom to showroom...if i can try out multiple candidates at one stop, i'm more likely to go to that dealer.

JPMotorSport
05-30-2007, 10:44 AM
part of the problem is that the cars can have all the soul they want, but unless people try them out, it won't matter. GM has dug itself a hole that can't be escaped by simply making a better car. they have to make the better car and sell it, too, b/c it's not going to sell itself like Accords and Camrys do.

from all i've heard, the Aura is a car like you're describing. but unless people start seeing GM products for their merits and not as they see the "usual" GM products, nothing will change. this thread (and others like it) are perfect examples...people have made up their minds about GM (and Ford and Chrysler) products and won't consider otherwise, regardless of the merits of the product itself.

i think this is a good idea. a close-up comparison is a nice way for people to judge that cars, and honestly, the fewer stops one has to make while car shopping, the better, IMO. it's a huge PITA to drive from showroom to showroom...if i can try out multiple candidates at one stop, i'm more likely to go to that dealer.

I see what you're saying, and you're right. GM's biggest problem is product perception.

One thing that article forgets to mention was the comparison when a Saturn Aura was shown with and without its brand ID. The difference in the crowd reaction was night and day. Alarming for GM's marketing department.

But I still think having hondas and toyotas for 'comparison' at Saturn dealers is a dumb idea. One of the biggest parts of any car shopping experience is the search for the best price. Saturn may have its no haggle price policy, but if you're crafty enough you might be able to shop different Honda or Toyota dealers for the best price on a comparable car. You may not want to drive to different dealers, but many customers including myself consider 'driving to different dealers' an essential part of any car shopping decision.

And the sad truth is, most buyers at this class of car consider pricing and
'good deals' to be one of the biggest deciding factors in their decision, more so than a Dr. deciding between a Mercedes S or Lexus LS. It's unfair to Honda/Toyota/etc if they insist that a Camry SE is $xx,xxx amount, when in reality its possible to get a better price than sticker.

Foolish
05-30-2007, 12:30 PM
No. I think what GM needs to do is create more unique and interesting product. Improve quality, content, performance, uniqueness, and 'soul', and the customers will come.

Pretty much like Dimitrik said, what I was getting at was that it doesn't matter how good the GM product is, people who won't even consider looking at a GM in the first place aren't going to go to the GM dealership to check it out against the Honda and Toyota, they're just going to go to the Toyota and Honda dealers.


But I still think having hondas and toyotas for 'comparison' at Saturn dealers is a dumb idea. One of the biggest parts of any car shopping experience is the search for the best price.
I totally agree with this. Realistically, when you're shopping for a car, features, size, performance, and value (specifically, what you're getting for the price) will all factor heavily into the decision. The Saturn dealer can tell me what I'm really going to pay for the Saturn, but I can only find out what I'm actually going to pay for the Toyota or Honda at those dealerships. Until I have the price, I can't figure out the value, so the comparison is incomplete.

dmitrik4
06-10-2007, 09:17 AM
true, but: A) you're not going to drop that much off a toyota/honda sticker...one reason those companies are so profitable; and B) the immediate comparison is more valuable that preventing people from driving to toyota/honda dealerships (which, i agree, they'll probably still do).

GM's image night be in the toilet, but it can be rebuilt. look at what hyundai has managed to do by introducing steadily-improving products...their present products are no joke.

at least GM has a built-in base of fiercely loyal customers.

word is that the new Vue is another very solid car.