August 18, 2010
TODAY'S NEW GENERAL MOTORS: CUSTOMER FOCUS IS THE WATCHWORD

2008-09 were turbulent times, having paid off (with interest) government loans well ahead of schedule, today and tomorrow are much brighter for General Motors. Strengthened by a range of new and more fuel-efficient products, GM intends to keep the momentum going into 2010 and 2011. CAF spoke with GM Canada President and Managing Director, Kevin Williams. Here’s his perspective on today’s new GM.

CAF: While the Canadian economy continues to improve, challenges remain. General Motors has repaid its government loans well ahead of schedule and announced major new investments in the Canadian operation. In light of these things, what do you see as the most pressing and significant issue you will address as president of GM Canada in the coming year?

WILLIAMS: The new GM has started 2010 off on a more positive note than many would have expected just six months ago. The transformation we undertook to restructure our business is beginning to bear fruit and we remain truly grateful for the support we received that has enabled us to emerge as a much stronger company. The old GM is gone and now we must focus on winning in the market with a focus on customers.

We still have major challenges ahead. The industry is gaining momentum in Canada and the competition for every sale is fierce. We know we have great new products in the market with many more to come, so our focus has been on really getting it right with our customers. This customer-focus is paying off. For the first quarter this year, sales for our core brands grew more than 27 per cent, while industry growth for the same period was just under 15 per cent, which strongly reinforces that our new vehicles and dealer service experience are hitting the mark with customers. I believe that our single most important task going forward is to continue building on that momentum by staying focused on the customer.

CAF: Fleets have not been immune from the difficulties of the economic downturn but are showing encouraging signs of rebound. How will GM respond to the increasing fleet market opportunities the recovery presents?

WILLIAMS: We have seen an increase in orders from many of our fleet customers and our objective is to profitably grow our business in this very important market through great products and customer care. In anticipation of a market improvement, we increased available dealer inventory, including more units with commercial specifications, like the popular Malibu LS with its six-speed transmission contributing to excellent fuel economy.

We are also introducing high quality new products that are ideally suited for many commercial customers. Our new 2011 Chevrolet Cruze is a perfect example. Launching this summer, the Cruze is a highly contented compact car that is expected to be segment leading in highway fuel economy (so less expensive to operate) while providing more space than key competitors. We are confident that it will hit the sweet spot for many Canadian companies.

Additionally, the new 2011 GMC Sierra and Chevrolet Silverado HD pickups are now on sale and have been substantially improved with fleet customers in mind, delivering best-in-class utility in every significant area, including horsepower, fuel economy, GVW capability and operating costs.

Our new 2011 Buick Regal hits the market this summer and will be a great match for companies that include a vehicle as a key component of the compensation package, or those that offer higher content vehicles to their managers. So we have listened and quickly responded to the customer in many ways which we are confident will help us grow our share of the commercial business.

CAF: Historically, GM’s share of the fleet market has been in the 20-25 per cent range. Is this a target one you’d like to see maintained, increased?

WILLIAMS: While we do not make specific forecasts, I can tell you that fleet business is very important to our overall business plan, which includes growth objectives. With strong products like Equinox and Malibu and great new entries like the Cruze, HD pickups and Regal, we have a highly compelling offer for fleet companies to help build and grow a profitable business for fleets and for GM.

CAF: Has your career path to date with General Motors included any fleet responsibility and if so, how has it prepared you for your role as president of General Motors Canada?

WILLIAMS: My career has included experience in pretty much every related functional area of the business, so I have a strong understanding of the unique nature of fleet and commercial business activities. I spent a tremendous amount of time working to build a robust fleet business in Mexico as the president and managing director there. This has given me valuable insights, as I worked closely with the GM North American Fleet Organization. And perhaps nothing applies more directly than my experience leading GM’s customer care and aftersales activities. When you have the product right, and we are confident we do, then the customer experience becomes the next critical aspect of success. Delivering a higher standard of customer service is something that I am passionate about and you will see us continue to sharpen our focus to ensure that the needs of our fleet customers are fully met.

CAF: You bring “fresh eyes” to the position of president of General Motors Canada. How do you perceive the auto market in Canada currently and what do you see as some possible opportunities and challenges going forward?

WILLIAMS: We’re seeing some strength in the Canadian market and we see opportunities to grow volume in both the fleet and retail sides of the business. I see particular upside potential for GM in the smaller segments in Canada with award-winning cars like the Buick Regal. In addition to the Cruze coming this summer, Chevrolet will launch several new entries beginning next year, including the Volt electric vehicle, the next generation Aveo small car, the Orlando seven-passenger multipurpose vehicle and the Spark microcar.

These fuel-sipping new vehicles from Chevrolet will offer technologies ranging from gas-friendly to gas-free and address a major challenge for the industry head-on: the dramatic fuel efficiency improvements required by the new greenhouse gas emission standard. Going forward, winners in this business will have to be leaders in fuel-efficient technologies. At GM, we are confident that our new product line-up will position us to succeed in this challenging environment.

We know that our new products and our customer service experience will exceed customer expectations. Perhaps our biggest challenge, and also our biggest opportunity, is to close the gap between perceptions and reality with Canadian customers, and we will do that.

CAF: Apart from dealing with the challenges of your new responsibilities, are there any aspects about your posting in Canada to which you and your family are particularly looking forward ?

WILLIAMS: Throughout my career, I have continuously heard great things about the GM Canada team and it is exciting to be part of such a dynamic group, especially at a time where we are poised to do great things and surprise a lot of people. On a personal level, I am having fun getting to know Toronto and I look forward to sharing its energy and diversity with my family when they join me here at the end of the school term. And I’ve already warned them that they are about to experience hockey fever like nothing they have ever seen before.