This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.
General Motors Corp. (NYSE: GM) will never be the same. The American manufacturing icon is in the worst shape of its life in the past five decades, it's not selling the larger vehicles that have been its bread and butter for years and its stock is absolutely in the tank. It's also shutting down factories as it feverishly tries to reinvent itself. After all, Madonna has done this many times -- so why can't GM?
Okay, that's an unfair comparison. But for long-term survival, companies always need plans to rapidly change with the times, even if the money needed for that flexibility conflicts with the incessant market need for quarterly expectations. After all, like we've seen this week, the market is more emotional than a 14 year-old girl. It always will be. So, what can GM do? It's hard to say, but time is of the essence. Makeover times in this age should take double-digit months, not double-digit years.
Wipe off the dribbling eye shadow, visit Neiman Marcus, and get an extreme makeover -- that's what. Since GM really doesn't have a cash pile like some other blue chip companies, can it pay for a makeover? Doubtful. Can companies reinvent themselves with marketing and image? Sure, this happens all the time.
GM's upcoming Chevy Volt may be the largest piece of image reinvention the company has had in over two decades. That's just a first step. If the company can price it well (even if it can't afford slim margins), be first to market and offer exceptional support for this product, it may just have a chance of starting to peel the old, drab face mask off and prepare for a complete makeover. Otherwise, the company won't be around at the top of the global vehicle market much longer -- if at all.
Does GM need a makeover? What would you suggest? Be sure to check out the other makeover posts.
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Reader Comments (Page 1 of 1)
10-23-2008 @ 11:57AM
gumbo koontz said...
Do you know what a mild hybrid is? It is a cheaper version of a full hybrid. What it basically does is shut down the engine whenever you stop at an intersection or a train crossing. I am not sure about how it will function in a bumper to bumper traffic jam on way to work and back home.
Anyway, a mild hybrid is basically a super electric starter that can restart your engines countless times unlike your traditional starter. Everyone would feel better knowing that their engines is not wasting gasoline while idling ....
A mild hybrid boosts city mileage the most..
I think all carmakers should implement mild hybrids in practically all cars to help cut down our dependence on oil .
GM is the only one who offers mild hybrids in its Malibus.
10-25-2008 @ 11:44PM
Michael A. Grand said...
GM will retool. However, they will build smaller amounts of vehicles in the future.
The real power that is the industrial giant of North American Operations (NAO: GM, Ford, Chrysler) is in its know-how, materials distribution, manufacturing, sales, and world coverage. NAO will retool to produce a new product that everyone on earth will need. An Eco-Technical friendly home of the future is the next evolution in the automobile industry.