New Product String makes GM strong

After massive loss in market shares, $39 billion loss for the third quarter, a new General Motors fresh from a rehab have brought a new string of cars and trucks in the automotive market and now, its best car for ten years, the Chevrolet Malibu is already for shipping.

One year to be 100 years old, GM comes back in the vehicle race with their highly competitive vehicles such as the Tahoe and GMC Yukon SUVs, Chevy Silverado and GMC Sierra Pick-ups, the Buick Enclave and GMC Acadia crossovers, the Saturn Vue small SUV, Cadillac CTS midsize sedan and the Malibu.

"The job's not done," said Bob Lutz, General Motors Chief, who was in North Texas for the Texas Auto Writers' Truck Rodeo last month. "But we are getting there. GM has its product mojo back."

Six years ago, Lutz joined GM which was creating cars with dull designs and do not gain high respect from its consumers. His appointment was regarded as the come back by the company and he was branded as the product czar of GM to refine and enliven GM cars.

However, last week as GM announced their $39 billion loss with the $38 billion accounted for the write-off of tax credits. According to the Wall Street journal, GM won’t be profitable for sometime soon.

According to some analysts, although GM lost $12 billion for 2005 and 2006, it still gained $953 million during the first half of 2007. GM is on the verge of gaining access to declining costs and its vehicles are getting better.

"There's nothing magical about what Toyota does," said Mr. Lutz, 75, vice chairman of GM.

"In other parts of the world where they don't have the advantage of a weak yen and we don't have labor constraints, we compete well with them. We have a clear vision now of where we were and where we need to be."

Two years ago, it was a great decision for GM to redesign its Sport Utility Vehicles. SUVs are very vital for GM since it gives the automaker higher profits than other segments. GM’s resurgence has its roots on that great stroke.

The redesigned SUVs sold very well and made it to J.D. Power and associates surveys for their good quality and performance along with other brands as Ford, Chrysler, BMW (makes BMW flywheel), Toyota and the others. And now, GM is highly expecting from their Malibu.

"You have to look beyond the write-off," said Jeff Schuster, executive director of global forecasting at J.D. Power.

"On the product side, they are in a strong position. If you look at the fit and finish of the new SUVs and pickups and the newer cars and the attention to detail in their interiors, no longer can you say GM just makes traditional American vehicles."