Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Sat Nov 15, 2008 8:27 am Post subject: Can GM be Saved?
Goodwill is a term to describe the amount a company is worth, over and above the asset value. For instance, several years ago an airline-guide publication was sold. The total value of all assets were only a few hundred thousand dollars. The purchase price was in the millions, because of goodwill; positive recognition in the market place.
Goodwill can also be negative, I suppose more properly ill-will. This would be the negative image of a company and would reduce the value. I feel GM has just such a problem. Rarely have I seen a company more poorly manage their public image. There may be two generations of Americans who will no longer consider their products.
Whether this reputation is deserved or not is debatable, but I do not believe the effect is. Goodwill will NOT simply manage itself. It is a function of product/service quality, customer interaction, problem resolution and more. People have very long memories and most do not [easily] forgive what they see as a non-concerned attitude.
When considered over time and the exponential effect, can any business really afford to create ill-will? What thing(s) could GM [and our businesses] have done to manage this valuable asset?
Joined: 28 Jul 2008 Posts: 16 Location: Tifton, GA, USA
Posted: Sat Nov 15, 2008 10:53 pm Post subject:
One thing that stands out to me is the problems that customers have to deal with after the purchase. It's not uncommon for thousands of customers to face a problem with a vehicle that is the result of poor quality only to find that it's not covered by the warranty( GM instrument clusters & intake manifold gaskets, Ford 6.0 heads, and numerous others). Honda had numerous transmission problems in the late 90's and early 2000's and they raised the warranty on their transmissions to cover their customers for a reasonable amount of time. This, to me, says that they value their customers. The domestic manufacturers portray a total lack of concern for the people that keep them in business, the customer! We all should put forth the utmost effort to produce quality work, something people can count on, and when we do have problems, we should show some concern, find out why, and fix the problem!
_________________ Keith White
Owner
Whites Auto Service
Tifton, GA, USA
Joined: 28 Jul 2008 Posts: 16 Location: Tifton, GA, USA
Posted: Sat Nov 15, 2008 11:02 pm Post subject:
I also forgot to mention the GMC truck that I have in my shop that has been to the dealer several times for a coolant loss complaint with no answer ever found. Now that it's out of warranty, he's discovered coolant in his oil and I've found the bulletin where they are having a problem with certain castings on the cylinder heads. Now it's an expensive repair for the consumer and he swears he'll never buy another GM vehicle.
_________________ Keith White
Owner
Whites Auto Service
Tifton, GA, USA
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Sat Nov 15, 2008 11:14 pm Post subject:
Hi Keith,
keith wrote:
I also forgot to mention the GMC truck that I have in my shop that has been to the dealer several times for a coolant loss complaint with no answer ever found. Now that it's out of warranty, he's discovered coolant in his oil and I've found the bulletin where they are having a problem with certain castings on the cylinder heads. Now it's an expensive repair for the consumer and he swears he'll never buy another GM vehicle.
Domestic vehicle manufacturers seem to think that enough slick marketing and smile training for employees are all that's needed. I remember a time in the 1970's when no one really was concerned about oil leaks. All cars leaked oil, no big deal; until the Japanese showed us cars that didn't leak. The rest is history.
Detroit seems to feel mediocre quality is all that's needed. They have never grasped the concept that quality SAVES money, NOT cost money. In the nearly forty-years since the Japanese invasion, Detroit has gone from building a really crappy car that no one in the world wanted, to building a mediocre car, that no one in the world wants.
And for this they pay CEO's $60M+ a year, amazing!! Thanks Keith, I appreciate your input.
Joined: 15 May 2007 Posts: 146 Location: Garden City, KS
Posted: Mon Nov 17, 2008 10:53 am Post subject:
Whether they can be saved or not, it should be GM and their leadership members saving it...not the US government or the US taxpayers. How can an economy, or society for that matter, go about rescuing and providing safety nets for poorly run businesses? I realize the number of jobs is enormous. I realize that hit our economy may take. But we cannot reward poorly run businesses. Let them fall.
Later, Matt.
_________________ Matt Fanslow
ASE CMAT/L1
Crag-Technologies, Inc
www.wavehook.com
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