GM bankruptcy ad is a symphony of weasel words

In the face of the greatest single corporate collapse in the history of the world, GM rolled out an ad that inadvertently explains the company’s failure.

It is a veritable symphony of weasel words.

Let’s be completely honest, no company wants to go through this.

By the end of that first sentence it is clear this ad has no intention whatsoever of living up to that initial clause. You can tell because the final pronoun is never made specific. That “this” covers billions of sins. It implies we all know what has happened without saying what that was. It is everything to everyone and thus means nothing. Is “this” an utter failure of leadership? Or is it an inability to have even the vaguest understanding of the needs of the marketplace? Sadly, I suspect “this” is “an economic calamity no one could have foreseen” – the preferred phrase of everyone from Alan Greenspan to, well, the Detroit-based car makers. There is no taking responsibility anywhere in this ad just as there has been no taking responsibility at GM for decades.

But we’re not witnessing the end of the American car,

We’re witnessing the rebirth of the American car.

The conflation of America and GM is offered as an explanation as to why the US citizen is now on the hook for $50+ billion dollars. GM = American car and of course we need to save American car. This neatly sidesteps two key facts: 1) Ford has somehow managed to avoid contributing to the financial debacle that is the US government; and 2) Honda, Toyota and all those other companies who build and sell cars in the US are just as “American” as GM. Actually by the very fact they haven’t required our tax dollars to pay for them to go out of business they are, in my eyes, far more patriotic than GM. They are providing jobs and generating funds for the nation and its citizens.

General Motors needs to start over in order to get stronger.

You can’t argue with the need to start over. It is a safe, bland phrase which appeals to the charitable side in everyone. After all, who hasn’t had problems and who doesn’t believe in a second chance? And we are offered no option but the opinion that GM will get stronger. This is an emotional appeal specifically aimed at diverting attention from the fact that this is a business, not your neighbor or nephew. Any discussion of capitalism and free markets is shunted aside. This isn’t about dollars or stock price or the rich getting richer, no this is about helping someone who is down on his luck.

And lest we forget how dazzling and brilliant that friend once was:

There was a time when eight different brands made sense, not anymore.

There was a time when our cost structure could compete world-wide, not anymore.

Note the use of the phrase “There was a time.” The rhetoric seeks to use past successes as another way of avoiding responsibility. This is nothing more than a badly bloated rewriting of “Mistakes were made.” This is followed up quickly by a blizzard of meaningless business jargon and words that imply much but mean nothing.

Reinvention is the only way we can fix this and fix it, we will.

So here’s what the new GM is going to be:

Fewer, stronger brands.

Fewer, stronger models.

Greater efficiencies.

Better fuel economy.

And new technologies.

Leaner, greener, faster, smarter.

Reinvention! Yes that’s the ticket!

Well, actually what GM needs is the corporate equivalent of putting senior management up against the wall. To actually re-invent the company everyone associated with the ancient regime would need to be replaced. The successor executives are about as likely to break from past failed policies as Ben Bernanke and Tim Geithner. Since I am paying for this fiasco can I make a suggestion: Jim Stengel’s stepping down from P&G, can we put him in charge? If not Stengel – and I would not wish this job on anyone – then how about someone else who has experience running a successful business?

Having invoked the empty but pretty idea of re-invention the ad descends into a staccato barrage of lovely sounding words and phrases signifying nothing: Fewer, stronger, greater, better, leaner, greener, faster, smarter!

The ad ends with triumphal horn blast

This is not about going out of business, this is about getting down to business.

Because the only chapter we’re focused on is Chapter 1.

The first sentence is straight from the handbook of Kennedy speechwriter Ted Sorensen who penned all those pretty reversible quotes like “Ask not what your country can do for you – ask what you can do for your country.” It is a call to action that requires no action. A promise without commitment. The final words are a smug wink and a nudge, an effort to let you know how clever they – or the ad writers – still are. Note the unspoken play on Chapter 11.

At a time when what the company and all three of its remaining customers need are a few simple declarative sentences we get more of the usual: Pretty smoke and brilliant mirrors. GM still wants us to believe its management knows what is best for the company. I didn’t mind that claim nearly as much when they weren’t using my money to make it.

I am clearly not the only person to feel this way. Here is the version of the GM ad I would have made if I had the video skills I clearly don’t.

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Detroit car cos. as bad at PR as they are at business

autofailThe CEOs of GM and Ford have announced they will drive from Detroit to DC for the next round of begging from Congress. Clearly this was supposed to make us forget that the Detroit Three had flown in separate private jets the last time they tried to explain why their companies were running out of money.

Instead all it has done is reminded us of this. Apparently you can’t answer a cheap shot with a cheap stunt. I particularly like the fact that the two CEOs are coming in separate cars. No car pooling for these two.

Better move would have been to simply taken a commercial flight. Or walked. I hope the press will tail both men all the way during their drive. Otherwise we might get a Rosie Ruiz situation. (Ms. Ruiz was named winner of the 1980 Boston Marathon, until it was discovered she had only run .2 of the 26.2 mile course.)

Will Chrysler CEO Robert Nardelli also indulge in a little stunt driving? Unknown. What is known is that he “will not travel by corporate jet. A spokeswoman says his travel plans will remain secret for security reasons.” I have no doubt this is utter and total bullshit, but it certainly plays better than what the other two are doing.

GM argument against bankruptcy is a car wreck

The astoundingly badly run car maker says it won’t declare chapter 11 because “people won’t buy cars from a bankrupt company.” Given that GM’s sales have dropped 45 percent over the last year, how would this be any different from the current situation?

Not surprisingly the “it’s not our fault” argument is echoed by UAW President Ron Gettelfinger: “We’re here not because of what the auto industry has done. We’re here because of what has happened to the economy.”

This would be more believable if GM had been doing well before the credit markets went to hell. Let’s remember that we’re talking about GM here and what it’s track record is like. This is a company that even when it gets a good idea goes out of its way to kill it.

Quoth this great article from the WSJ:

This situation doesn’t stem from the recent meltdown in banking and the markets. GM, Ford and Chrysler have been losing billions since 2005, when the U.S. economy was still healthy. The financial crisis does, however, greatly exacerbate Detroit’s woes. As car sales plunge — both in the U.S. and in Detroit’s once-booming overseas markets — it’s becoming nearly impossible for the companies to cut costs fast enough to keep pace with the evaporation of their revenue.

In all this lies a tale of hubris, missed opportunities, disastrous decisions and flawed leadership of almost biblical proportions. In fact, for the last 30 years Detroit has gone astray, repented, gone astray and repented again in a cycle not unlike the Israelites in the Book of Exodus.

Remember Saturn? GM started an authentically different company that attained a beloved cult-like status and then all but killed it by not letting it put out new models. Don’t even get me started about the electric car and where the company would be today if they’d kept developing that program they killed after putting $1 billion into it. And then there’s the decades of lobbying against improving mileage standards that — had they been in effect — would have also saved their asses.

GM is also arguing that it’s basically under new management and that the guys who made all those stupid decisions have been replaced. Even if this is true, then let’s hold them accountable for the stupidity just since Rick Waggoner became CEO. For the last seven years their strategy has been, “we’re going to bet it all on the short-term profits to be made from SUVs.” Thus they launched Hummer et al. I’m supposed to trust a bunch of guys who couldn’t figure out that the price of gas fluctuates? Who couldn’t figure out that there was a difference between short-term profits and long-term viability?

Let’s make one thing clear — the term “US automakers” is a misnomer. When someone says they want to “bailout the US automakers” they really mean GM. Ford has said repeatedly that they have enough credit to get through and Chrysler is no more or less a US company than Honda or Toyota. The Big Three is in fact the Incompetent One.

Wait, I will bow to the Journal on this one: they’re going with “The Detroit Three” and that works for me.

GM merging with Chrysler: Dumb and dumberer

What part of two wrongs don’t make a right do these people not understand?

Isn’t the idea of a merger to combine strengths? What is it that these companies combined would be able to do that they can’t do by themselves? GM already has too many brands. So it wants to add more? The nice thing about having these two merge is that it will bring together a lot of bad management and keep it away from other companies.

Further proof that irrational exuberance walks among us: General Motors Corp. and Ford Motor Co. shares were up more than 24% each on Monday. Ford’s stock is up apparently because it had previously held merger discussions with GM. The only reason this should be a boost for Ford is the realization that it was smart enough not to merge with GM. It is astounding to see what has happened to what was once the largest and best-run company in the world.

Ford uses a suicidal astronaut to sell cars

I forget what the heck Mrs. CD and I were watching last night when this add for the new Lincoln MKS came on. The reason I can’t remember is that the ad was so astoundingly wrong and tone-deaf that it melted those few memory cells I have left. Visually it was just the usual slow-motion showy pictures of a car but it was set to an incredibly down-beat cover of David Bowie’s Major Tom.

In case you don’t remember, here are the lyrics:

Ground Control to Major Tom
Ground Control to Major Tom
Take your protein pills and put your helmet on

Ground Control to Major Tom
Commencing countdown, engines on
Check ignition and may God’s love be with you

This is Ground Control to Major Tom
You’ve really made the grade
And the papers want to know whose shirts you wear
Now it’s time to leave the capsule if you dare

“This is Major Tom to Ground Control
I’m stepping through the door
And I’m floating in a most peculiar way
And the stars look very different today

For here
Am I sitting in a tin can
Far above the world
Planet Earth is blue
And there’s nothing I can do

Though I’m past one hundred thousand miles
I’m feeling very still
And I think my spaceship knows which way to go
Tell my wife I love her very much (she knows!)”

Ground Control to Major Tom
Your circuit’s dead, there’s something wrong
Can you hear me, Major Tom?
Can you hear me, Major Tom?
Can you hear me, Major Tom?
Can you hear….

Other than the fact that Major Tom has a melody that everyone in the 40+ age group will recognize, I cannot fathom what in the world made this seem like a soundtrack to sell cars by. Maybe they really are that depressed in Detroit. This makes the ubiquitous use of Lust for Life, Iggy Pop’s upbeat ode to heroin, look smart. At least Lust for Life was an upbeat cult-hit that everyone didn’t already know the lyrics to. Major Tom is probably known word-for-word by most angsty people who were between 12 and 30 in the 1970s. We all know how the story ends on this one.

Not sure who to be more amazed by, the folks at Berlin Cameron Detroit who proposed it or the folks at Ford who approved it. Although Ford and the agency would like you to believe the message is “reach higher” (the link goes to the official website), in fact the message is far more disturbing: Lincoln … When You Want To Go Out In Style.

Wow. Now that’s collateral damage.

Car dealer allegedly apologizes for ad that insults all non-Christians

Here’s the actual text of the radio spot for Kieffe and Sons Ford of Kern County, California.

Did you know that there are people in this country who want prayer out of schools, “Under God” out of the Pledge, and “In God We Trust” to be taken off our money?

But did you know that 86 percent of Americans say they believe in God? Now, since we all know that 86 out of every 100 of us are Christians who believe in God, we at Kieffe and Sons Ford wonder why we don’t just tell the other 14 percent to sit down and shut up.

I guess maybe I just offended 14 percent of the people who are listening to this message. Well, if that is the case, then I say that’s tough; this is America, folks — it’s called free speech. And none of us at Kieffe and Sons Ford are afraid to speak up. Kieffe and Sons Ford on Sierra Highway in Mojave and Rosamond: if we don’t see you today, by the grace of God, we’ll be here tomorrow.

OK, so now we know he’s bigoted, a bad businessman and can’t do research. Apparently every American who believes in God is a Christian. Good, pardon the phrase, Lord.

The apology is every bit as stupid as the ad.

“It’s just something that went by us,” said Rick Kieffe, who does not attend church but considers himself “a Christian spirit.” “We’re obviously sorry that it offends a given segment who identifies themselves as atheist.”

Oh, Rick, if you’d only insulted the atheists you’d be far better off. I am sure all the churches in Kern County are grateful that Rick doesn’t actually attend any of them — although he might want to start.

However this does give me enough of a thematic link to mention my latest post at The Ministry of Culture which explains why Julie Andrews + John Coltrane = God.

Microsoft, Yahoo get all nice and cozy with repressive Chinese police state

Microsoft and Yahoo have both signed an agreement with the Chinese Government, which pushes a desire for the two companies to record the identities of bloggers and censored content. Eighteen other web companies have signed this agreement as well.

I’d like to ask Mr. or Mrs. Gates two questions: 1) How do you explain this to the kids? Exactly how does this square with the goals of The Gates Foundation?

Bill and Melinda Gates believe every life has equal value. In 2000, they created the Bill & Melinda Gates Foundation to help reduce inequities in the United States and around the world.

Y’know, when Ford was doing business with the Nazis at least it was in keeping with the publicly stated beliefs of the company’s founder.

Mr. Welch: You’ve done enough. Have you no sense of decency, sir, at long last? Have you left no sense of decency?

Consumerists’ 10 Worst Marketing Mistakes (sort of)

As insomniacs and other long-time readers now, I am a big fan of Consumerist.com. The site does a great job of reporting on consumers’ (mostly but not always) unhappy experiences with companies. If you’re a marketer it’s a must read so at the very least you learn what not to do. All that said, I was dissappointed to read their list of the Top 10 Worst Marketing Gaffes, Blunders & Disasters:

  1. Hindenberg
  2. Edison electrocutes an elephant
  3. Ford Edsel
  4. Tylenol Cyanide Scare
  5. Beatles Yesterday & Today album art
  6. Microsoft Blue Screen of Death press conference
  7. Calvin Klein amateur porno-style ads
  8. Honda robot falls down stairs
  9. New Coke
  10. McDonald’s I’d Hit It

I can come up with a bunch just in the last couple of years that are worse than anything on this list.

  • The Tylenol thing was a PR disaster at first but once it became clear that the poison was the result of an outsider the public pretty much forgot about it, witness the brand’s success since then. The on-going Bausch & Lomb eye wash nightmare is far worse. Last year it was linked to an infection that caused blindness and another batch just cropped up today. This happened because of something in the manufacturing process and the PR response was a nightmare. This could actually destroy the brand.
  • The Microsoft and Honda things were embarassing but no way are they in the 10 worst. I’d put Judy Regan’s OJ book fiasco way ahead of those two if for no other reason than it was a deliberate and planned effort, not just a mishap with the demo of a product.
  • McDonald’s I’d Hit It? Yeah, everyone got a laugh over the misuse of slang for intercourse, but it’s hard to see that as a huge disaster. How about the Vioxx or Ambien stories? Ambien got bushwhacked with a PR problem when Patrick Kennedy blamed it for his renewed drug problem, which wound up being a big plus for rival drugs which could say they were non-addictive. Merck currently faces 27K lawsuits over Vioxx and even if they win every one the brand has suffered permanent damage.
  • Yesterday and Today wasn’t even The Beatles worst PR disaster, let alone one of the top 10 of all time. The band’s worst was John’s comment about being more popular than Jesus.
  • How about BP having its claim of being environmentally friendly blow up in its face when their Alaska pipeline started leaking like the Celtic’s defense?
  • Or how about Enron or even JetBlue’s recent problems or GM/Ford/Chrysler continuing to push SUVs as gas hit $3 a gallon? Or NBC blowing rigging a Ford pickup truck to blow up? Or the great Ford Pinto fiasco?
  • Or KFC and it’s rodent problem?

Kudos to Consumerist for getting historical with Edison and the Hindenberg, but they need to get up to date with their current marketing disasters. You guys are still one of the channels-of-choice for tracking business stupidity, let’s get this list right. Keep the top 3 and the always-wonderful new Coke disaster and replace the rest with some real disasters.

Group says Exxon paid $16M to mislead public; GM doing it for free

The Union of Concerned Scientists claims the oil co. paid groups to spread bad science about global warming.

Color me bitter and cynical but … there’s people who didn’t know that? Everyone remembers the tobacco industry’s efforts at “science,” right? You think they were the only ones who did this?

Meanwhile over at GM (motto: “Remember when we mattered?”), Honcho Bob Lutz says government plans to raise  fuel economy standards will “hand over” the truck and SUV markets to the Japanese.

Under CAFE rules, automakers earn credits for surpassing the fuel-economy standards in a model year. Those credits can then be used to cover a shortfall in the following three years. Many foreign automakers, such as Toyota and Honda, routinely surpass the standards, while GM, Ford and DaimlerChrysler have used credits in recent years. The Japanese automakers “have earned years of accumulated credits from their fleets of formerly very small cars,” Lutz said. “They can afford to go bigger, which they’re doing now by the way, and they’d be able to move up and fill the segments we’d be forced to vacate.”

So the argument is that the competition somehow cheated by making cars with better gas mileage when GM wasn’t?

Nor is this the only interesting moment of logic from Mr. L:

Lutz compared the attempt to force automakers to sell smaller vehicles to “fighting the nation’s obesity problem by forcing clothing manufacturers to sell garments only in small sizes. For one thing, it puts us, the domestic manufacturers, at odds with the desires of most of our customers,” he said.

Would those be the same customers who bought 13% fewer GM and Ford cars and light trucks last month than they had a year earlier? Or would those be the customers who pushed Toyota’s December sales up 12% from the previous year?

GM to Nissan, Renault: Beggars CAN be choosers!

Quoth the Wall Street Journal:

PARIS — General Motors Corp. is prepared to tell Nissan Motor Co. and Renault SA today its price for a three-way alliance: A multibillion-dollar payment from Renault and Nissan to compensate for the greater value the Detroit auto maker believes it would bring to any partnership.

That’s pretty tough talk from a car company which didn’t plan for the totally unexpected like GAS PRICES FLUCTUATING. GM is playing from a position of strength, of course. They know that worse comes to worse they can always ally with Ford.

Great corporate weasel words: When in doubt blame ED or Elvis

  1. Bob Dole's favorite malady, erectile dysfunction, is to blame for GM getting all limp. At least that's how I interprest the fact that GM decided to announce that it has to spend $17M a year on Viagra, Cialis and other erectile dysfunction drugs. While the company does cop to the fact that's a small fraction of GM's overall health care costs ($5B last year) "company executives often use the example to illustrate what they said are out-of-control health care costs," according to the AP. Best line in the story: "Ford Motor Co. declined to say how much it spends on erectile dysfunction drugs, and a spokesman for DaimlerChrysler AG's Chrysler Group could not provide figures." You can blame the ED or you can blame the fact that you've made a lot of crappy cars. You decide.
  2. elvisThe King is blamed, long live the King. Execs as the UK bakery Kingsmill would like us to believe that an ad campaign — featuring Elvis Presley, no less — is why they lost a third of their market share. The campaign was a tongue-in-cheek one built around the fact that on his one brief stop in the UK, Elvis ate some the company's bread and therefore the bread is made "By Appointment To The King." Kinda clever actually. Best line of the story: "Analysts said that Kingsmill had lost about a third of its market share to Hovis and Warburtons because of the advert and production issues." AND: "The problems come after the loss of [parent company] Allied’s deal to supply Asda with own-label bread after a dispute with the supermarket group." While "critics" blasted the ads as some sort of sacrilegious thing, I think the only way a campaign could kill a third of your market share is if it made joking reference to Hitler. After all, Starbucks was recently endorsed by Chinese dictator, er, president Hu Jintao and it doesn't seem to have hurt them.