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How Can GM Recover Their Brand?
01.23.2009Posted by: Ben
There's some mixed feelings in America today about the auto industry. GM is one company that's in really big trouble. I'm no economist nor auto industry analyst, but I am an American and it pains me to imagine one of our largest companies, if not more than one, might be disappearing. What went wrong? I don't think anyone can just blame gas prices or a weakened economy. But if there is a way out, I hope they reconsider their brand troubles as part of the problem.Those who don't believe in the multi-billion-dollar bailout are saying "let market forces decide who survives." While that is indeed capitalistic, I can't help but feel sorry for GM (and others). I certainly feel bad for all the jobs that could be lost if it goes under. Is there really a chance that my taxpaying dollars can help them?
One way that GM in particular has gone terribly wrong is branding. Without reading any further for a sec, can you name all the GM vehicle brands?
Buick, Cadillac, Chevrolet, GMC, Hummer, Oldsmobile, Pontiac, Saab, Saturn are the big ones. There's others out there like Daewoo and Opel, too.
So maybe GM's downfall is they just make sub-par products. Or maybe they market them poorly. I really don't know for sure, but I do know that there are way too many brands out there. I seriously question the existence of Buick, for example. Has anyone ever said to you "Boy, I love Buick!"? The name alone sounds... like brick.And Hummer. Well, I read somewhere that it made money for GM by itself, but for a pretty niche audience. Does it contribute to a brand image of gasoline-guzzling machines that essentially fill the pockets of middle eastern princes? It's one of the few GM brands that people are passionate about, but it's both the love and hate sides of passion.
What GM needs is some way to reinvigorate their brand and I don't care what others might say, bad attention is not good attention. So ditch Hummer and Buick.
You gotta keep Cadillac. Heck, the new pres rides in the sweetest caddy ever created right? Saturn is the only brand known for reliability... and it seems like a good brand to carry electric/hybrid vehicles. Pontiac? Maybe goodbye. There isn't much more All-American than the Chevy Silverado and Corvette... gotta hang on to that. But beyond that, the whole chevy "line" needs to be rethought at this point.
All I'm saying is, the GM brand itself is a mess. Burdened and disfigured by so many (often wrong) decisions that I feel the company needs to cut it's losses and stick with what they know is right. It's not time to gamble and try to make Saab the next Camry. Or GMC the next anything, probably. If we are going to spend the cash to try and rescue GM, does that mean we have to rescue every one of their products? I don't think so.
Yes, GM made that.
UPDATE: Found an interesting video by Jeff Jarvis: What would Google do (to fix GM)?
UPDATE 2: GM has declared bankruptcy. I have learned since writing this that Buick is in fact a very solid, highly reliable car now, even winning awards. Glad to see Hummer go. Its unfortunate that Saturn is out — I guess they just didn't do something right in the 21st century, business-wise. I still contend that Saturn was their best shot at green vehicles.
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