Hey There, We Want Our Money Back!
Tuesday, September 14, 2010
General Motors has no business launching an IPO anytime soon. It's not healthy enough to draw proper capital to repay the taxpayers. The financial improprieties must first be eliminated, the marketing troubles corrected as evidenced by increased share, and the pension/VEBA obligations far further funded. What's the hurry anyway? Let's get some knowledgeable, competent, stable management in place and take time to pay back the bailout. That's the right way to say "Thank You America".
A primary cause of concern is how complicated incentives have become and how deeply GM interferes in retail. For example, customers receive $1,000 for AARP but only on Impala (at least today) and had to be a member since last Sept. That ought to really queer some deals. Vouchers for various amounts if in USAA or bought a car from a dealer that closed. E mailed internet retention offers with no manifest list, instant value coupons, loyalty certificates if you own BPOG but not Chev/Cad and must be 99 or newer, conquest certificates for non GM owners, etc, etc, etc. I could go on longer than space allows.
Dealers suffer chargebacks for missing compatability restrictions, salespeople are charged back their commission weeks later (that's fun!), customers are alienated when asked to return and pay more after delivery, and upset when days after buying the rebate goes up. This is only the tip of the iceberg! Believe me it's truly insane and worse than words can describe. These foolish programs are written by MBA's that have never sold a car in their life.
GM hasn't changed, the new blood has been infected by the remaining old blood. Ewanick is running the same old idiotic programs that have been there since John Smith. The pathetic management has dropped market share steadily year after year, and will continue to do so even with NERD and Tim Allen replacing Tiger, Howie, and Aerosmith. They just don't get it at GM. Too bad, so sad.
Dead Weight Doesn't Float!