|
Chapter 11 has been a serious consideration for GM for over a year now. While it would have made business sense, Wagner and the board have been steadfast against it because of the fear of loosing even more sales due to the "stigma" the general public would have about buying a car from a "bankrupt" company. They know full and well the general American public don't understand Ch. 11, and that it is not necessarily a bad thing. Their warranties would still be honored and the company would still exist. Cars would still be built and employees would still be paid.
The caveat here if GM and Chrysler ARE forced to ch. 11 by the govt. is that if they DO start a sales slide, things could slide quickly into chapter 7 which would be very bad..... liquidation and the end of GM.
So, I would suspect GM should be building a plan for the govt that helps to solidify sales and keep them from sliding. One way to do that is to start marketing their product and not their price. All to often GM has zippy adds with rockin music touting the fantastic lease price or interest rate or dealer incentives..... when the competition is showcasing their latest 24 valve engine architecture, high quality interiors, and exquisite tail lamp design..... even Ford and Lincoln advertise the product and not the price.
The entire marketing of GMs products has got to be revamped if they want people to take them seriously.
|