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Delivering Bad News

There is an art and a science to delivering bad news. At the very least, there should be honor and grace associated with the act. Unfortunately, recent news reports on several fronts would suggest that this curriculum is absent at most MBA schools, including the likes of Harvard… For instance, on May 14th Chrysler delivered the bad news to some of their loyal dealers, and then GM followed suit a day later. This is what Blomberg reported,

May 14 (Bloomberg) — A half-century of Chrysler car sales ended when Eldon Howe received a delivery from United Parcel Service Inc. That’s how Howe learned that his Beacon Sales Inc. in Charlotte, Michigan, was among the dealers targeted to be shuttered as bankrupt Chrysler LLC prunes its retail outlets in a restructuring led by Italy’s Fiat SpA.

“We got the letter today from UPS,” said Howe, 78, who founded Beacon 55 years ago in the central Michigan city about 110 miles (177 kilometers) west of Detroit. “I’ve done this all my life,” he added. “I haven’t done anything else.”

Whether store closures were warranted is not at the heart of the issue. Many of these stores likely should have been shuttered. However,Chrysler weazled out by delivering bad news via letter via UPS. Excuse me, but I’m appalled at the very act. What about the loyalty that their dealers extended Chrysler during the good and bad times. Yes, there is the “Legal” and then there is the “humane and respectable” means of doing things. Unfortunately, this speaks volumes about the condition of Chrysler, its leadership team, and why it might not not deserve to survive going forward.

In Obama speak, here is what I want to know.

  1. Who came up with the letter idea?
  2. Who runs Chrysler at the moment, accountants and lawyers?
  3. Can Chrysler ever be trusted?

Relationships have been broken with a letter. Is there a reason why Chrysler should be trusted in the future?

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