Some might argue that General Motors’ recent recall woes have put the automaker in a crisis, but Forbes contributor Jonathan Salem Baskin isn’t one of them. In fact, Baskin believes the company is facing “the greatest branding opportunity we’ve seen this century.”
Baskin argues that General Motors has been handed a gift no other brand before it has: “the gift of the government all but compelling customers (going back 15 years) to reconnect with it.”
Of course, Baskin’s argument depends on General Motors following through and offering customers a service experience that results “in a satisfied, repeat customer” through “wildly smart, thoughtful strategy.”
Though time will tell how customers feel once they get their recall fixed, internal decisions to reexamine previous recalls leads us to believe the company is making the right moves to ensuring customers are satisfied with their GM products.
Comments
These recalls will set a precedent in the industry for just how liable a manufacturer is for a vehicle’s reliability; both short and long term. Recalling 17 year old vehicles for ignition switches is ludicrous; if the customer hasn’t had an ignition problem in 17 years, any now are likely due to normal wear on a 17 year old vehicle.
That being said, GM can use this to set a benchmark that they can leverage in the industry as to how well they will take care of future customers. But they need to take advantage of the billions they are spending on recalls and use it to leverage themselves as a manufacturer who will look after you not only while under warranty but beyond. They should be setting up advertising campaigns promoting their proactive approach to issues now and how the company has changed.
I realize Mary is a little busy right now with the Senate and internal issues, but she should also be setting time aside to develop these “We will take care of you long term” and “we will learn from this and set the future bar for safety” images for customers. This is a very frustrating time for customers (waiting for parts, etc), dealerships (stop delivery/sales and service complaints), and GM as a whole as image is very impacting on sales volume.
This won’t happen over night, but it will take a long term marketing strategy to build these recalls into a brand image. The key is whether or not anyone at GM will listen and take the bull by the horns and do so or will they let the billions spent and the opportunity to rebrand the company fall by the wayside. History would predict the second option so it is up to Mary to put her money where her mouth is just not for the customers but for the company, brands, dealerships.
Well, GM sales are still strong despite all the bad press. I do believe GM is doing the right thing this time. Any other automaker would recall only the affected models (see Toyota megarecall) , yet GM called home most of their 2000 era cars.
If not noble, at least respectable.
And that’s from a company that’s been building cars for more than a 100 years. They know what they’re doing.
GM is cleaning the slate.
Lets face it a fewer people in GM knew about the ignitions than did know about them so better to clear the slate.
This will help in any future litigation by scum bag lawyers and prevent them from turning any other incident into another feeding frenzy for the press.
Anyone else notice how few people are reporting on the Jeep delay on the fuel tanks that are reported to be responsible for 51 deaths? Where is the media on this one?
I would have to see more of the info but it too could be another over blown case but the media has let this one slide. They reported some on it around Christmas when Jeep refused the government a recall.
I have tried to figure up who is behind the wave to attack GM and why. I am not going to say GM is walking on water but they do no more wrong than any other automaker and yet the press treats them in such a different way. It is almost like once GM turns the corner then they get hit from another side.
The ignition deal should be reported but come on they have micro reported this into the ground.
I look at this like the Global warming issue and try to see who has the most to gain with it. This is about power and money not safety or the environment.
As I’ve stated before, I commend GM efforts to restore customer faith and rebuild brand image. What I don’t like are the circumstances that led to this crisis. Any way you slice it, GM is guilty of wrongdoing, and they deserve to pay for their mistakes to the fullest extent of the law.
However, I don’t agree with the media hounding and all the pessimists who can’t see beyond the veil of political bombardment and realize that GM is a better company and are trying to make amends with customers.