Pinch me--General Motors has exited bankruptcy and is now ready to take on its second life as a streamlined company. Its CEO, Fritz Henderson, has vowed to make cars that Americans are eager to buy. What an amazing statement. If that's the sentiment at the world's formerly largest auto manufacturer, what has GM been doing for the last 30 years?
Obviously this is the time to rally behind the company and hope for a quick recovery and great success. The nation needs this and so do all the workers who are reliant on the automobile industry. However, one wonders how and why GM is in this current position. In other words, what were they thinking? What kinds of conversations really went on in the boardroom? Did the board members sit around and convince themselves they were doing the right thing by manufacturing automobiles that were no longer being sold in enough volume to remain viable?
Although the economy has taken a huge hit, this undoing did not happen overnight. It took decades of careful planning, or misunderstood planning, to bring the company into bankruptcy. The real issue is whether the new CEO and board really have the imagination and creativity to understand the new marketplace.
For example, it was noted that the company's logo will remain the same, with the blue background. They had considered changing the background to green to symbolize the company's new focus on the environment. Thinking about logos and colors is not a great way to begin strategizing about selling more cars and falls back into the same mindset as before. The American consumer is smarter than to fall for a different hue as a metaphor for a better car.
GM has a second chance and everyone wants this to succeed, but they'll have to do better than tinkering with a logo. Build something people will buy.
Jonathan A. Schein is the publisher of MetroGreenBusiness.com and GreenBusinessCareers.com.
Follow Jonathan A. Schein on Twitter: www.twitter.com/jaschein
The cluelessness of the car haters continues to astound me.
Similarly, the notion that GM vehicles aren't fuel efficient is woefully out of date. Most GM new vehicles are leaders in their segments in fuel economy. Have your doubts? Check out the EPA fuel economy website.
That is not to say the perception gap isn't a serious issue -- it is. But to say the vehicles themselves aren't competitive is to have missed the significant progress GM has made in the last decade.
:-)
Some people in GM management seem to have nothing better to do than to be on Huffpo ... don't you guys have a company that just went bankrupt to rebuild?
Unbelievable. What are you thinking over there? Anything?
While they are thinking of logos - how about changing the name of the company. Philip Morris did it. GM is such a tainted name they should just throw one person in a room and have them come up with a new name - without the millions of dollars spend on testing it. no matter WHAT they choose it will be better than GM. How about Mervyn's Motors - that name is available now LOL
GM was an arrogant company that thought more about their bonuses and office locations than planning for the future. but then again american finance dictates quarterly results - so makes cars that get profits for the next quarter and screw the future. sadly several other american industries will be following suit
Philip Morris is one of the best run companies in the world. and has been for a long time.
In fact I will give you a list of a few stellar companies that have returned LESS than Philip Morris when we consider the entire history of all these companies.
CocaCola
Pepsico Inc.
J&J
Pfizer
Intel Corp.
IBM
list goes on and on.
to compare Philip Morris with GM is so outrageous I cant even begin to describe it !!
If Phillip Morris had this kind of management, its shareholders would have jumped off the building long time back !!
GM failed continually to do its job. The people who were in charge should never be allowed to run anything larger than a lemonade stand. GM needs to fold its tents and go home.