AA or BK
Thursday, July 3, 2008
For years now I've been preaching that unless GM changes it's marketing, the downward spiral will never be reversed. Still today they refuse to listen, embarking on the 72 Hour sale where we spent tens of millions advertising giving our products away at a loss while further damaging the brands. GM is like an alcoholic who won't recover until they hit bottom. There should be no government bailout as this management team under Red Ink Rick would only burn through any infusion just like a down and out drunk who's handed a $20 spot.
Here's the bottom line...
It's the marketing destroying GM
It's Red Ink Rick's fault for allowing it to happen and continue (ie 72 Hour)
It's the Board of Bystanders to blame for their ongoing support of Red Ink Rick.
It's the shareholders who are ultimately responsible for the composition of GM's Board and therefore derserving of the massive loss in valuation of their investment.
The capitalist system works and water seeks it's own level. In this case the water has flowed out of the stock as it has become quite clear GM's management is clueless and the Board and shareholders are passive and non performing.
Return to Greatness still stands as the answer. It would immediately save over $1 Billion in marketing costs and regain 5 points of share within 6 months. Yet GM couldn't care less. Wonder why?