Categorized | Domestics, News

GM bankruptcy changes more then just their attitude

After filing for bankruptcy protection, General Motors is pushing a new ad campaign promising it will emerge from its financial troubles leaner and stronger.

Is this a good marketing approach? Will it allay consumer fears about buying from a carmaker with an uncertain future?

Advertising experts say GM — and fellow Chapter 11 filer Chrysler — should move past the negative and focus on their brands as they try to get car sales rolling again. Consumers are staunchly loyal to their car brands, they say.

GM says its brands are key to emerging from these tough times. But first it has to tell consumers how it will remake itself and what to expect, Jay Spenchian, GM executive director of corporate advertising strategy, said Tuesday.

“There are lots of questions,” he said. “The best thing we can do is quickly get out there and assure them.”

Here’s a look at what GM is saying to consumers right now and how it’s delivering the message — think social media — followed by some thoughts by marketing experts on whether the company’s approach will likely work.

What GM is doing
Detroit-based GM wasted no time acknowledging its problems to consumers. Shortly after it filed for bankruptcy protection on Monday, GM launched a Web site with a message built into its address: www.gmreinvention.com. The site is forward-looking, showing videos of satisfied consumers — like a former Jaguar owner who never thought he’d own a GM product — and engineers talking about new technologies.

But it doesn’t ignore the company’s current situation. There are links to financial filings under the header “progress,” and articles with headlines like, “What happens to my warranty if GM files for bankruptcy?”

The company has released a 60-second ad on the site that will air nationally on TV starting Wednesday, pledging a “reinvention.”

“Let’s be completely honest, no company wants to go through this,” the ad begins. “But we’re not witnessing the end of the American car. We’re witnessing the rebirth of the American car.”

Among the images in the ad: city skylines, shots of Detroit, a sun rising, plants growing, people raising a house’s frame, athletes commiserating — and later celebrating.

Also on Wednesday, GM will print a letter to customers from chief executive Fritz Henderson in major newspapers in markets including New York, Cleveland, San Francisco and Miami. He tells customers the company cannot afford to lose their business, “or your trust. You have our word.”

Key to the pledged “reinvention” will be an effort to leverage social media, GM’s Spenchian said. The company has links to social media staples like Twitter and Facebook on its new site, which will also host a Web chat later this week with Henderson.

One major advantage of this approach: It’s a lot cheaper than traditional advertising.

This post was written by:

Drew - who has written 230 posts on Tuned.com!.

I am Tuned's Editor in Chief. The Staff and I are eager to bring you a fantastic way of looking at the automotive world, we welcome you to the world, the lifestyle that is Tuned.

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