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Tag:GM
Posted on: April 7, 2009 2:40 pm
 

Back to GM, and the Fed's attempt to sink them.

 

Back about a week ago, with the terms of the latest GM bailout revealed, was a small but significant term mentioned, but not greatly covered.  The federal government was, as part of the new auto bailout terms, forcing GM to drop it's corporate sponsorships for sporting events.  This means auto racing, FLW fishing tournaments, the works.  Many praised this policy as a good move.  GM should not be giving away money when they are in financial hardship.  But is this not the most significant media for positive GM advertisement available to them?  Let's have a look. Who predominately follows FLW tour events?  Middle class, suburban/rural working males.  Middle Americans, who proudly wave the Stars and Stripes, have buy American bumper stickers.  Drive pick-ups and SUV, support our troops, tow boats, have families.  In short, the prime level of consumers that GM needs to connect with.  This same crowd dynamic composes the fan base of racing events.  What happens when GM pulls out of these events.  One only needs to look to B.A.S.S. and when Chevy pulled out.  Toyota jumped right in.  Look at the B.A.S.S. tour now, Tundra's and Sequoias as far as the eye can see.  Go to sporting shows, there is the Toyota booth, official sponsor of the B.A.S.S. Master Classic.  Significance, over the past several season, local fisherman competing in local events have bought more Toyotas than GMs.  Just go to a boat ramp at a major lake and see what vehicles are present. Should GM pull out of these existing sponsorships, the same trend will happen.  Middle class Americans are loyal consumers, and they will support the company that supports their interests.  It was money well spent for Toyota, and for GM to give up another platform, could be catastrophic.  Just a few months back, Forrest L. Wood, founder of Ranger Boats and the FLW tour sent out a personal email to all FLW  members urging them to support GM  citing their loyalty to bass fishing and the American way of life.  Does GM really want to and can they afford to alienate this loyal consumer base?   Learn from past mistakes GM and the Federal Government.  Don't turn away middle America, they are a consumer base you cannot survive without.  And one that Toyota will be all to happy to suck up to.
Posted on: February 20, 2009 9:42 am
Edited on: February 20, 2009 9:44 am
 

Ford Wins! GM/Chrysler read last rights

So here we are, just 2 months after GM and Chrysler sucked $15,000,000,000 from the U.S. tax payer, they are back looking for another 20+.  So 15 billion could only keep them afloat for 2 months, what good is another 20 going to do?  Get them by till April, when they will be looking for another 20 billion? 

Through it all, Ford has said thanks but no thanks to Tax payer money (at least at this time).  In doing so, not only have they saved face, but quite possibly the reputation of their brand.  Let's be perfectly honest here folks, after knowing GM and Chrysler needed our money just to keep their doors open, how confident are you in their future?  Makes you want to just run out and spend your hard earned cash on a new Malibu doesn't it.  Fact is most Americans don't want to support a welfare case, and that is exactly what GM and Chrysler have become.  Much by their own doing. 

Restructure their product line, that was the case made for the Auto Bailout.  Borrow money so they can survive, and restructure their product line to meet the current market.  Is this a Joke?  What market, smaller cars?  GM already has 7 vehicles that get 30+ miles per gallon.  Do you want to see them?  Don't go to a parking lot.  Don't go on the highway.  They are not there.  You have to go to a dealership, they are chuck full of them.  NOBODY IS BUYING THEM!  Americans don't want cheap, small cars.  Even with $4.00 a gallon gas, they didn't sell.  Sure Toyotas and Hondas did, but even they took a hard hit this past year, and these companies have dominated the small car market for the past 2 decades.  No American family, with 2 small kids in car seats, wants to try and cram all their stuff in a Aveo and go on vacation.  They simply don't fit. 

The answer isn't some new miracle product that will draw people in on a buying craze.  Certainly not in the current economy.  The answer is restructuring the manufacturing and selling process so they can make a profit.  That is both on the worker and executive level.  Until they do, they will continue to lose money per sale.  They just better home they haven't completely soiled their name brand to the American people.

Thumbs up to Ford.  Even though they are hurting, and they are, they had the balls to say we will weather this storm on our own.  And we will rebound!  Now just don't go making a liar out of me and come running to Obama with a cup in your hand.

 
 
 
 
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