GM turns the page to a new chapter in its 100+ year history today. The bow of of "Reinvention" brings the promise of a new GM. The "Reinvention" commercial includes a prompt to visit a web site detailing the plans of the new GM (http://www.gmreinvention.com). Given what we have seen from the old GM over the last 10-15 years, our expectations should be rather low.
An interesting statement from the commercial is "There was a time when eight different brands made sense." Oh really? When was that time? A significant problem GM had for years was too many brands. It has not been a problem only recently; the glut of brands led to resource wars within the company. The result was that all brands suffered. GM's problems are hardly new. It should not have taken being forced into filing bankruptcy protection to bring about radical changes at GM.
A major reason GM was reluctant to declare bankruptcy was it was concerned the effect it would have on customer confidence in the company. Would people be willing to buy cars from a company that had filed for bankruptcy? Months of negative press about GM had the same effect. The company could have been well on its way to making a new GM if it had faced realities sooner. Now, many people are skeptical that GM can reinvent itself given that it squandered its rich heritage over the last two decades with inaction and infighting.
Link: Ad Age - "New Ad Introduces Consumers to 'New GM'"
Labels: General Motors