If you challenge an individuals reputation, you’d better be ready to get in a fight. For instance, I was recently shown a letter from GM dealer, Tom Sparks Automotive, of DeKalb, IL that was sent out to their customers. Here is what it said:
In keeping with our commitment to inform our customers, we are writing this letter to let you know about some changes taking place, as well as inform some of the misinformation that you might be receiving through the mail from the new General Motors.
After a thorough review of our relationship with GM, we have decided to completely break ties with them, causing us to consolidate operations… We want you to know that contrary to the letters you have received from GM in regard to our service, our trained technicians who have serviced your car in the past can still service your car, with only one exception: manufacturer warranty work…One of the things that we have never compromised on is the service you receive in our repair facility. According to GM’s policies and procedures book, a dealer is not supposed to let the customer know of any problems that your car might be experiencing if the customer is not aware of the problem. Not adhering to this policy the dealer risks the possibility of not being paid for the service by GM…
We strongly believe that GM, through its reinvention process, has forgotten the needs of the customer and that is something we at Tom Sparks are not willing to do… Thank you for your business, and we look forward to seeing you soon. (letter from Tom Sparks Automotive)
Survival is a challenging problem in today’s economy, especially in the automotive marketplace. As GM and Chrysler attempt to reinvent themselves, it’s a place where emotions speak loudly, as this letter demonstrates. But more importantly, everything is escalated when reputation is put on the line. And in the automotive industry, reputation plays an integral role in everything; from sales, to service, to customer satisfaction. It’s what made GM great, and what helped destroy it. However as this letter illustrates, GMs move to expel certain dealers through bankruptcy (although they’re now reconsidering this) has many unintended consequences, especially when a dealer’s reputation has been put on the line.
Bottom Line: Reputation is a critical attribute for every organization. This letter illustrates just a few of the many challenges GM is and will encounter as they attempt to rebuild their automotive customer base. Good luck, you’ll need it.
The “Too Big To Fail” debate has been rampant for well over a year now as institutions like GM, CitiGroup, AIG,Chrysler and numerous others have essentially failed, only to be rescued by the US Government. Lack of leadership. Ineffective risk management. Rogue teams with few controls. Bloated cost structures. These are a few of the reasons why they failed. But what isn’t being offered up as a reason is this: