How can GM bring back consumer & dealership loyalty?

John Batchelor is the host of the John Batchelor radio show on WABC, WMAL, KFI & KSFO. Batchelor talked to Hammond about the General Motors bankruptcy.

Our government has given billions of dollars to keep General Motors and Chrysler alive. The government now owns 60% of General Motors and the UAW also owns part of the company.

I hear people say “I have always bought a GM/Chrysler vehicle all my life. I am really mad that they took the TARP funds. I won’t buy a truck/car from them anymore.”

The car dealers have been summarily dismissed, some with just a months notice. The morale of many dealerships is down and there is anxiety all around.

As the two manufacturers go into and out of bankruptcy analysts are saying the resale value of one of these cars will go down 20-30 percent.

What can General Motors and Chrysler do to bring back consumer and dealership loyalty?

One good start is the assurance program that General Motors (and Ford and Hyundai) offers.

BMW provides free service to it’s consumers and 97 percent of their customers go to the dealership for service. When a person can get free service and warranty for a certain period of time they are more likely to keep that car and to continue to go to their dealer for service.

What does China need to do to be a hit in the United States when it starts bringing cars made in China to the United States for sale?

About the Author:

Lou Ann Hammond is the CEO of Carlist and Driving the Nation. She is the co-host of Real Wheels Washington Post carchat every Friday morning and is the Automotive, energy correspondent for The John Batchelor Show and a Contributor to Automotive Electronics magazine headquartered in Korea. Hammond is a member of the North American Car and Truck of the Year (NACTOY), Women's World Car of the Year (WWCOTY), and the Concept Car of the Year.