GM chief blames Indian-Americans

GM chief Rick Wagoner, who has increasingly come under fire for the firm’s worsening performance, has lashed out to externalize the blame. In an exclusive interview with Tundla Junction Wagoner said, “Chinese- and Indian-Americans are partly to blame for GM’s troubles. 90% of the time you seem them in their Toyotas and Hondas and the other 10% is either BMW or Mercedes. Of course, I can’t really see them from my corporate jet. But look at this research – why don’t they drive Hummers?”

We looked at research that included a scientific survey of the parking lots of Indian restaurants as well as interviews with priests who perform puja on all new cars. Indeed, the numbers were on Wagoner’s side.

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Asians buy substantially fewer Detroit vehicles than the overall population. Moreover, there is an alarming correlation between the rising Indian population and the declining market share of Detroit.

Correlation of Indian population in the US with Detroit's declining market share - Click to view full size image




While correlation does not imply causality, Wagoner did outline his plan to improve sales to the Indian-American community. Ironically, these plans take a leaf out of GM’s playbook in the Indian market where the company has been growing strongly.

Get the King
If the past decade has taught us anything, it is that Indians buy whatever Shahrukh Khan and Sachin Tendulkar are peddling. It is also a well known fact that of late Shahrukh Khan movies make more money in America than in India. Making SRK the brand ambassador is a no-brainer for General Motors. Of course, his association with Hyundai in India will be a problem but we’ve overcome bigger challenges – like getting billions of dollars of taxpayer money without a concrete plan.

A different bailout
Tens of billions of taxpayer dollars aren’t enough, however. What General Motors really needs (and is lobbying hard for) in the bailout is the ability to offer incentives to Asians that no other car manufacturer can. Green cards. The plan is to offer a visa extension for buying a car over $30,000 and green cards for any SUV over $50,000.

Understand the consumer
GM will do a better job of knowing the Indian-American psyche and design special options packages for the demographic. Plans include a built-in Ganesh statue over the dashboard and features to remind nostalgic consumers of the simpler times in India – cramped interior spaces and a bumpy ride simulator. R&D is also working on recreating the sights and smells of Indian road conditions for a yet-to-be announced Xtreme Yearning package.

“We are very focused on getting the company back on track,” Wagoner told Tundla Junction, “We will do anything and everything possible, short of making better, cheaper automobiles.”

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