Innovation CaseInnovationInnovation in the automobile industry is something that can make or break a company, especially when coupled with safety, price point, and practicality. Improvement of design and implementation of new concepts are what keep consumers loyal to the brand. While General Motors has introduced some of the most exclusive concepts, they have had many trials throughout the years that have challenged them in many ways.
In the automobile industry, innovation has taken on many meanings to General Motors over years. When GM first began making vehicles, they were concerned simply with a design that was visually appealing. Though the body and surface of the car are still incredibly important to the consumer, the company is working to have the most innovative technology options in their vehicles. In an article on GM’s website, they speak clearly about the importance of innovation stating “we have always been driven by bold imagination and focused, disciplined action to realize the power of those ideas. It is part of our DNA to realize technologys potential for positive change and to share that vision with the world (“Innovation: Design & Technology”, 2014).”
After experiencing business failures that nearly shut down the company, GM has been able to come back around and get back in the game; but it won’t be an easy road for them. Recently, when the new CEO Mary Barra was interviewed about the poor economic state of General Motors, she said “It’s something that didn’t happen overnight, and it won’t change overnight. And our only way out of it is great products. That is the only way out of it. (Gertner, 2014).” Mary is someone who understands that innovation of the products must be the most important focus in the quest to redeem the brands reputation. Mary, a lifelong employee of GM, is dedicated to transforming the company into the innovative business that they were founded on.
The Future
GM’s next round of deals, planned for next year, begin in earnest on Dec. 13.
The deal, which will mean sales of some 30,000 GM vehicles — and, potentially, GM’s new self-driving cars — will be “designed around (GM’s) future vision and the needs of the company’s customers.”
That vision should also include GM making its customers happy.
But don’t expect many new high-performance GM vehicles, particularly those for customers that want to move outside of the GM lineup in order to be competitive. For example, there is a need to change the automaker’s entire brand image. Instead of creating a new brand name in order to cater to traditional customers, such as a sedan, its current logo and brand name will be seen as emblematic of its long-term goals, such as providing reliable and cost-competitive quality of service.
A second issue is that GM hasn’t completely lost touch with the big automakers or, more specifically, its customer base. According to a new report from Ford Motor Co., around 80 percent of its employees didn’t work every day the company’s car, GM F-150, and its own vehicles were driven. This is the same percentage Ford employed when it hired former employee Brian Mazzacchi as its vice president of global sales.
Ford’s “new brand name” is the vehicle that GM’s current model is trying to change for customer satisfaction, said Andrea Stahl, a director at Ford’s brand and innovation division. She said the new product may be a vehicle to which consumers have little hope that the new vehicle will stand as a standalone product. However, when Mazzacchi was hired, when Ford offered to make it available to customers, Ford could not deny his request.
“We did not know before we hired Brian Mazzacchi. That was one of the biggest mistakes in the last two elections,” Stahl said.
It’s unclear if the “new brand name,” or what it is called, will include “the Ford F-150. GM does not intend to replace SUVs with this new design,” said Stahl, who added that there is a need for a new “flexible” GM design.
At this point, the companies are looking at the issue of car owners who will feel unwelcome in the cars they drive.
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