Today is a big day in the business world. GM declares bankruptcy. You can read the numerous stories on the ripple affect this will have on the lives of many people beyond those employed by GM. Is it a wonder that the US government has taken a 60% stake in the “New” GM to “save” jobs. Will it be enough? Who knows. Maybe the more important question —  is GM a brand worth saving?

Looking back over the 100 year history of GM with my brand-goggles, I belive GM died over 30 years ago. It just didn’t know it. Even prior to the OPEC energy crisis in the 1970’s GM had begun to lose it’s way. The passion to create automobiles and brands people love began to fade quickly from that point on. The products were not the standard of quality anymore. For a long stretch, you could not tell a Chevrolet from a Cadillac (Remember the J-cars?). Innovation and leadership gave way to short term profit and increasing production to maintain their #1 standing as the largest automobile company in the world. While GM, Ford and Chrysler fought against higher fuel economy standards, the rest of the automotive world embraced them and moved forward. Now in bankruptcy, GM agrees with higher fuel economy standards. How times have changed.

When you look at GM from that perspective, it is not surprising that “loyal” American automoblie buyers went elsewhere. First to German brands. Then Japanese. Now Korean. Next Chinese?  Jaime Kitman, writer for Automobile Magazine wrote in this latest column that at a certain point over 87% of Saturn buyers did not know they were buying a GM product. I’m not sure if that is good or bad news.

My quick take-away is that GM has a tough road back. By shedding brands (Pontiac, Hummer, Saturn, Saab) and focusing on their core brands (Chevrolet, Buick, Cadillac and GMC) they might have a chance — if they really have the passion to built great automobiles. Having seen the new 60-sec. spot for the “New” GM by Deutsch, I’m not holding my breath. If GM has any chance at all, they need to change the conversation.

Want to read more on GM? Here are some article I found interesting:

GM turns 100, September 16 2008 , MotorTrend

GM and Me, Alex Taylor III, Fortune Magazine

When Bad Things Happen to Good Brands: Won’t Someone Save Saturn?, Jamie Kitman, Automobile Magazine

This entry was posted by Will Burke on Tuesday, June 2nd, 2009 at 5:04 pm and is filed under Branding, Change the Conversation, Consumer, Culture. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.