Sunday, September 13, 2009

GM Selling Credibility Not Cars

General Motors (GMGMK.PNKS) has launched a barrage of new ads. I know because they interrupted some of the NFL football games I was watching.

According to Bob Lutz GM Vice chairman

“This is a big bet on the power of communication and effective advertising in changing public perception,"

The Ad’s under the tagline “May the best car win” feature the new Chairman Ed Whitacre, a former telecommunications executive who took his post when GM emerged from a government-sponsored bankruptcy in July. Basically you can return the car within 60 days and you have to have driven less than 4,000 miles. They also remind you that the power train warranty is 160,000 miles.

At the same time they are re-instated salary cuts to much of their management team. Hmmm there go the costs again. The return policy is easily matched so it will not be a competitive advantage for very long.

Car guy’s say it’s about the cars not the gimmicks. What about the cars. That’s what people want to buy. B y the way that ad for Cadillac with multi stage launches racing across the desert flats did not impress me. Crowded messages. But that’s just me.