I was watching my television the other day when I happened to
see an ad from GM’s now death sentenced Saturn brand that left me
quite furious. The ad shows a retailer by the name of “Jim
Smith” who begins to chastise the “pundits” who he claims are
besmirching the reputation of Saturn dealers and the rest of the
domestic auto industry because they are claiming “American car
companies can’t build cars Americans want.” He goes on to say
that “at Saturn we get it,” noting that the brand has its most
comprehensive and eco-friendly lineup in its storied history.
Mr. Smith and the Saturn ad gurus who put this spot together
should have checked their hubris at the door because the last
time I checked, the reason for Saturn’s precipitous sales
decline—sales fell 21.7% in 2008, not to mention the 57% plummet
reported in February—isn’t the result of talking heads on cable
television or writers publishing reports that disparage the U.S.
auto industry. Rather, the problem rests at GM headquarters,
where leaders have declared Saturn dead in a few years.
That’s the real problem causing Saturn to hit the skids.
How dare GM’s marketing leadership try to pawn off their
debacle on anybody else. Rick Wagoner, Fritz Henderson, Mark
LaNeve, and a host of other suits at the GM’s Renaissance Center
HQ are the reason people aren’t buying Saturns. And these suits
should have known what was going to happen to Saturn sales.
After all, they themselves repeatedly told taxpayers and
Congressional leaders in Washington that their entire
organization would suffer fatal consequences if GM went into
bankruptcy and was declared insolvent. Wagoner himself has said
repeatedly that customers would shun any automaker that went into
bankruptcy because customers would fear their cars wouldn’t be
covered by warranties, residual values would crater and parts may
not be delivered.
What Wagoner and the GM leadership team did to Saturn is
nothing less than declare it bankrupt. What did they expect the
consequences to be? Don’t get me wrong. I certainly feel sorry
for those Saturn dealers who have been given the ultimate
cheap-shot, the portion of the GM “viability plan” that states:
“Saturn will remain in operation for the next several years,
through the end of the planned lifecycle for all Saturn products.
In the interim, if Saturn retailers or other investors present a
plan that would allow a spin-off or sale of Saturn Distribution
Corporation, GM would be open to any such possibility. If a
spin-off or sale does not occur, GM plans to phase out the Saturn
brand at the end of the current product lifecycle.” In other
words, Saturn’s run is over. They said it. The so-called
“pundits” had nothing to do with it.
What has hit the airwaves in terms of advertising at Saturn
is nothing less than passing the buck in terms of responsibility
for the actions taken by GM’s leadership—akin to what AIG has
been called out for, albeit on a much smaller scale. GM needs to
take responsibility for the hand it has dealt itself. This is
just another sign that GM’s leadership doesn’t get it and should
be sent packing now.