This morning I woke up to news that President Obama has fired GM President Rick Wagoner. Which now means the government is running GM, at least for now. I’ll say it again…The government is running GM.
Sure GM took some bailout money, sold their soul to the devil and are now paying the price. But here’s the part to ponder. Obama and his group gave GM and Chrysler a last chance effort to come back with a plan that would get them out of this mess. A plan? How does a company whip up a marketing/financial plan on the spot when they obviously haven’t had a plan for years?
Was it a big surprise that gas prices went up and their products were gas guzzlers? Was it a big surprise that they built copycat vehicles to compete with Honda and Toyota instead of differentiating themselves?
GM and Chrysler have been clueless for the last 20 years. What’s either of their branding stand for? If Volvo equals safety what does GM and Chrysler stand for? Nothing.
Then factor in the unions. What role did they play in destroying the American car maker? So here’s what you have. A company sucked dry from the unions (Obama supports these guys so it’s not their fault), with no vision or brand identity that’s somehow in trouble? There is only one solution for these brands.
Let them die. Before you know it we’ll see new, exciting brands pop up. They will most likely be niched brands that will differentiate themselves. Maybe we’ll get an automaker that just makes electric cars? Who knows but it’s time to let capitalism shine.
The last thing I want my president doing is acting as a CMO!