Archive for March, 2009
Doubt Hangs Over GM
Thursday, March 5th, 2009
Just when you thought it couldn’t get any worse for GM, this story comes out on CNN.
Basically the accountants at GM have serious doubt as to whether GM can survive as a company. These aren’t outside accountants looking in or a talking head specualting, these are the accountants that work directly for GM. In the 480 page document that GM filed with the Securities and Exchange Committee, as part of the bailout agreement, the accountants wrote they have “substantial doubt” about GM’s future.
Sales are down 40% and if that doesn’t change, GM could file for bankruptcy, even with the help of Government money.
Scary just got Scarier. Just reading this makes me want to stay as far away from a GM product as humanly possible. This will not bode well for sales.
So what’s a dealer to do. Put the emphasis on your dealership, not on the manufacturer. Be honest with your customers.
While the manufacturers future is in doubt, you can still count on Dealer Name. We will honor all factory warranties, no matter what happens.
That’s the message that dealers need to put out. Customers are going to worry about their warranties. They’re going to worry about parts and service if GM goes under. So take away their worry by telling them to trust you. Right now, your brand equity can be worth more than GM’s.
