Wednesday, June 3, 2009

Internet searches show brand damage for GM.

This will not be a shocker for anyone who has read my blog, but a review of the Internet searches since it filed bankruptcy on Monday illustrative that GM's brand is damaged. See attached link. The most common Internet search regarding GM is related to the bankruptcy, not a desire to buy a shiny new Corvette or any other GM car for that matter. This is consistent with how bankruptcy will damage any brand. As I said on Monday, while bankruptcy does a great job of managing existing debt, it without question damages revenue.

As such, without a cohesive business plan, the company will not survive a reorganization (or will liquidate shortly thereafter). And with all do respect to the political talents of Brian Deese, a Yale law graduate--who prior to this job was a political operative--is not qualified to put together such a plan. As a Democrat it is insulting that a purely political talent is being put in charge of this process. The reorganization of GM, and the saving of 3 million jobs, should not be politicized. I am not naive enough to believe that political consideration won't be a part of this process; however, all efforts should be to remove politics from these decision.

It is pragmatically, and politically imperative that a plan is set forth quickly. Michigan Governor referred to a Green Industrial Revolution (my words) in her speech on Monday. That is a great tag line, but substance is needed. A Manhattan project of automobile propulsion could put the US on the forefront of the auto industry for the next 50 years. The alternative is not good.

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