General Motors in Guatemala

23 04 2009

Pioneer of car industry

Guatemala, a city in progress that its increasing its number of car dealers and increasing buyers in certain sectors, is now alert due to the notice that GM was going bankrupt ; actually GM cars are not so popular over here, people go more often with japanese cars like toyota or nissan,but you get to see a high number of GM´s most of all chevys and gmc, we don’t get saturn , Saab or Buick although Chevrolet`s spark has been a total hit over here due to its very low gas mileage .

In this city its not so common to see Hummers either; people like to buy more low mileage cars and GM its not that kind of manufacturer. In my point of view; GM its losing the faith that it had on their clients , at least over here buyers are not looking anymore for a GM car, instead they`re going Toyota, Nissan, European cars such as Volkswagen, Mercedes, BMW and Audi are increasing,  even Indian Cars, when a few years ago they went for s10 pickups, sierras etc.  Actually i`ve seen a few new suburbans and Tahoe but that’s it.

GM has to put more interest in the dealership they have here; it has nothing to promote their cars and now its when they have to do it most. In my opinion, GM needs to go global about creating a new image for their buyers;  that way they can assure the market in Guatemala.  No word on how the U.S. will get back the $90 billion will have lent GM to cover all its mistakes. And all the GM stockholders — who have already lost 98 percent of their investment since Rick Wagoner took over — will see that remaining two percent wiped out.

GM failed because they could never make a profit on small cars. The matter is that GM bet the farm on colossal gas-guzzling vehicles, thinking that gas prices would be cheap forever. When gas prices skyrocketed, which they will do again, GM had sales lots full of SUV’s they couldn’t sell, and that’s the only thing they can make a profit on thanks to their cost structure. GM falled, its a matter of time to see how this giant is gonna get up again.

In meantime question is … Would you buy from a bankrupt company?


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17 responses

23 04 2009
Joelle Cuchet

It’s an interesting point of view because it’s not from the US nor a big city, and i support the idea that Guatemala is a city in progress, and that’s right, GM didn’t have little economic cars.

23 04 2009
SC

The article is right and anyone who says otherwise is dead!

23 04 2009
Rodrigo Zepeda

I don’t know much about cars, but before reading your blog I never noticed that there weren’t that much GM cars on Guatemala’s streets as they used to before. Guess its time for GM to get smart and give people a choice for a more economic car to rise ther sales.

23 04 2009
Octavio Tenas

GM should keep a good service and sell small vehicles thinking about the gas , record oil prices, to avoid bankruptcy and get up again.

Guatemala is in progress and need more economic cars and creat a new image for their buyers.

23 04 2009
made .♣

The same I don’t too much about the cars. But I think that gas prices for the GM should make smaller cars and that this has been one of the aspects of comfort and cars Japanese economy. The GM has a chance to launch their car on the market if the prices of gasoline and maintenance of these cars if it were not so expensive, so that makes these cars are not very appealing to people. If the GM does not only take into account the comfort could do something big with lots of their cars! Wearing fashionable not only in Guatemala with the middle class but throughout the world by the availability offered!!!!!! =O)
jejejejeje

23 04 2009
chory

It is a brand good that this growing and is a brand of incredible cars..
Congratulations and continue forward

23 04 2009
anna

This article is right I think that if GM give the choices to people to buy more economic cars it would rise their sells and they would help people to buy good cars …economic and not that expensive than they are at this time.

23 04 2009
Andres Pineda

This article shows the main error of GM, which was putting all their hopes on always selling big cars. So when gas prizes went it had no way to handle the crisis. They are now trying to enter a market in which they dont have neither the expierience nor the knowledge on how to become a leader in. So great article!! it shows how even a great company such as GM resents not being able to sell cars in small countries such as Guatemala

24 04 2009
luisa Fernanda

Guatemala’s economy is dominated by the private sector, which generates about 85% of GDP. Agriculture contributes 23% of GDP and accounts for 75% of exports. Most manufacturing is light assembly and food processing, geared to the domestic, U.S., and Central American markets. I think Guatemala is facing serious economic problems. But people buy those cars…
I don´t know that much of cars…
but I think it is part of the economy….

24 04 2009
dr. peewee

excelent.. some of the Tranformers are GM brand I think… and if not, then they should

24 04 2009
Luigi Gonzalez

interesting question… trusting a bankrupt company is something that would be hard to me since their results are not so good. Gas prices are not stable today, and driving a car that spends a lot of gas is not something smart to do if you don’t have enough money to pay for it. GM is losing the battle, they need to change their ideology in order to create cars that people would actually buy and affort paying and sustaining. You will always see GM’s driving around and thats a fact, but 10 years from now is it gonna be the same wayas it is today? GM’s needs a rebirth in order to go up again. Btw, i don’t drive a GM!

24 04 2009
rodrigo

hmm interesting buy product form a bankrupt company?
Well
if I buy a car from GM and its broken haha it would be an economic suicide
cuz’ the gains will be worthless, that the product purchased from this company is worth much less than they paid for

So no. I will not buy a product from a bankrupt company

24 04 2009
Mafer Rodas

Obviosuly, nobody would ever be intrested in a bankrupt company. Despite any situation that may have affected the company’s economy, people will always be intrested in something steady rather than a company with constant changes in the production’s direction. It is also necessary to take in count the fact that their marketing campaing didn’t work as expected, making some people (like myself) unaware of what they were offering.

24 04 2009
Hugo Rodas

GM:”Going highway to Hell”. I support and agree on it. The executives made a mess with that company and the best solution for them is to go bankrupt. They believed their big cars with enormous engines will last forever and that’s why they’re going to hell. I cannot deny it, but I greatly like that big cars. Maybe the problem was not the production of big cars, but their failure to shift to produce compact, cheap cars, which is what everyone needs and wants.

24 04 2009
Mafer

In my opinion this article is very good and says a lot of fact about the estretegy of marketing of GM!! Because Guatemala is a country in progres and actually isi being affected by the economical crisis GM have to search a way to increse his sales and they market, for this they have to offer more economics models of cars and small cars do not spend a lot of gasoline.

So for me who write this article is right and all his ideas to improve GM are exellent. =)

25 04 2009
Sam

Now, my point of view is that GM had focus in the americans, the like bigger cars, and they don’t seem to focus that much in the gas milleage, they just buy’em, but now GM is in crisis, the should considere to put a little more interest in Guatemala and make smaller and more economic cars, as the spark, I think they will succeed if they do it, at least in Guatemala.
If they want to go beyond their competition they shouldnt globalize their market, they should segment it by country needs.

29 04 2009
Carlos Cáceres

Pues la verdad estoy completamente de acuerdo con lo que dices de GM, uno de sus problemas es que sus autos consumen mucho combustible, a mi en lo personal lo autos pequeños de GM no me gustan pero si los grandes, aunque por su precio y rendimiento se puede acceder a otros autos, y pues la verdad myo no compraria un auto de una empresa que esta a punto de quebrar ya que no tendria respaldo en repuestos en un tiempo, y aqui en Honduras tampoco se ven muchos autos de GM.

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