GM Bankruptcy

If GM could convince drivers to buy cars as well as they communicated this week, the auto maker would come out of bankruptcy quickly.

From CEO Fritz Henderson, to UAW President Ron Gettelfinger, to other executives, to the rank and file, as awful as the bankruptcy filing was this week, GM spokespersons were consistent and united in their statements about a new GM. In full page ads, Henderson asks the public to follow the company http://www.gmreinvention.com/ GM sent letters to customers assuring them about quality and warrantees.

As David Leonhardt pointed out in the NY Times many of these promises of GM rebound have been made before. One of the questions is whether the public believes the company and will actually come back and buy, OR whether the younger generation of buyers - who have yet to be enamored with GM and who don't read the main stream media as much and see the ads - will put the GM vehicles on their desired purchase list.

Yes, the Harbor and JD Power reports do show that initial and long term quality has improved at GM yet, while the factual and statistical gaps between GM and the competition have shrunk, the perception gap has not changed very much.

What do you think? Do you think that GM can close the perception gap so that car buyers will consider Chevy, Cadillac, Buick and GMC in the same way that they think of other cars and trucks? Car buying is both a financial and emotional purchase. Can the turnaround hit us in the hearts and imagination, not just in the pocketbook?

A personal view of GM and Rick Wagoner

The news that GM CEO Rick Wagoner resigned under White House pressure is time for both sadness and a quick gut check and time to get back to work for anyone in the auto business.

CommCore has been working with GM for more than 20 years. Some of my best friends in the business have come through the Detroit doors - and many are still working in communications, design, manufacturing and quality control. Almost all have been Wagoner loyalists - they have been inspired by his leadership and his low key hands on approach.

In the last couple of months, once Toyota started losing money, it's been clear that the GM, Chrysler and Ford problems are global in nature. At some point, consumers will start buying cars again, but they aren't doing it today. Recent news that Buick had better quality scores than Lexus doesn't create a stampede at the showrooms.

So in the absence of results, something had to give. For GM'ers it's important to pick up on Wagoner's optimistic note to employees. He implored: "Ignore the doubters because I know it is a company with a great future."

If I had the answer I wouldn't be blogging - I'd be in Detroit or working for the Government's auto task force. A Buy American strategy is a nice idea, but it doesn't work. It's critical to harness all of the creative efforts to get people to consider US cars and trucks and into the showrooms.

How Often Do We Get "Do-Overs?"

The travails of General Motors, Ford and Chrysler before Congress in Washington last week present painful lessons for anyone with a critical presentation.

How often do we get a chance for a "do-over" or make good on a critical business plan or presentation? Pretty rare. Only in extraordinary circumstances such as the possible implosion of the US automakers would the companies get a second chance. In essence, the school teacher (Congress) said that: "You students haven't done a very good job on your term paper. We'll give you one more chance. Otherwise, you'll probably flunk the course."

In CommCore's Presentation and Media Training seminars, we would never suggest cutting the preparation this close. What we saw was failure to analyze the audience and know what was expected, lack of preparation of a real plan and no one looking at the optics (flying in on three separate private jets).

Only the current economic situation, especially the unemployment figures, is aiding the auto companies request for financial aid. Very few of us will get such do-overs if we're not prepared.

What lessons are you learning from the auto companies request for aid?