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Posts Tagged ‘General Motors’

GM Recall Scandal Is Actually Increasing Sales

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Here’s one we had to post quickly in the All News Is Good News category, because we’re still slightly shocked.

From a senior Edmunds analyst discussing GM’s current status in The New York Times this morning:

“You’d think it would damage their brand. But it’s actually helping to drive purchases at the dealership. You come in to have your old car fixed and see the new designs and technology, and wind up thinking ‘Maybe I’ll buy a new car.’”

Also:

“G.M. is also quietly offering additional discounts to owners of the 2.6 million vehicles recalled as part of the original ignition switch problem. The automaker has authorized dealers to offer employee prices to owners who inquire about a new purchase.”

It’s true that this is part of a larger trend as the auto industry finally recovers from the recession…but surely the latest wave of recalls and the generally negative response to CEO Mary Barra’s follow-up has led to a decline in GM’s stock prices, right?

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Mary Barra Tells Matt Lauer: No Cover-Up at GM

Mary Barra sat down with Matt Lauer this morning on TODAY, and we think you’ll agree that the questions he lobbed her way were a bit softer than those she received from Congress earlier this month.

At the very least, she’s consistent with the message. That’s a good thing, because she’ll have to repeat it many more times before GM can move beyond this story.

What do we think of her appearance?

The Number of People Killed by GM’s Defective Switch Will Soon Rise

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We’re all aware that General Motors is one of the world’s most challenging clients right now–and we can sit around all day and wonder why the company’s preferred strategy for dealing with its ongoing recall crisis can be summarized with the word “stonewall.”

But a report released by Reuters today indicates that this horrific story has only just begun.

The crux of GM’s defense holds that thirteen people–and only thirteen people–have died in accidents involving the infamously defective ignition switch that shuts down cars and their airbag mechanisms mid-drive.

Unfortunately, that number will change soon.

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BAD PR: John Oliver’s GM Parody Highlights Real, Disturbing Details of Internal Company Practices

Let’s play a little game of word association, shall we? What comes to mind when you think of the following words: deathtrap; decapitating; grenade-like; powder keg; and rolling sarcophagus? If your answer to any of these is “a car made by General Motors,” then an internal GM memo specifically banning the use of these words (and over fifty others) must have failed.

This past Sunday on HBO’s “Last Week Tonight,” John Oliver delivered a scathing breakdown of a decade’s worth of disturbing internal PR practices at GM, and then — as the final nail in the rolling sarcophagus — showed a pitch-perfect parody of a GM ad. And in case not enough people subscribe to HBO for this clip to contribute to the company’s already-sticky PR problem, the network has made the video available on YouTube (where it has already been watched almost 700,000 times).

Just like in Shakespeare, the fool often speaks the truth more boldly and honestly than anyone else, and in this case, while viewers may be laughing (we certainly are), they are most definitely not laughing with GM.

GM Hires Familiar Face as SVP of Global Communications

bildeIn what may be the week/month/year’s least surprising move, General Motors has finally replaced its SVP of global policy and communications with a familiar name and face.

Tony Cervone, who most recently served as VP of group communications for Volkswagen, doesn’t just have an extensive history doing PR for car companies–he worked at GM for 10 years along with current CEO Mary Barra, serving in a VP of global comms/strategy role before leaving for an SVP gig at United Airlines.

The strategy behind the appointment is fairly simple: Barra wants old allies to help her right her company’s badly managed response to its not-going-away faulty brake switch scandal.

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GM’s Own Video Claims Its Recalled Cars Are Safe to Drive

Here’s another development in the corporate world’s biggest ongoing damage control campaign: according to GM’s own tests and accompanying video, released this morning on its unfortunately named content site “FastLane”, affected vehicles are totally safe to drive before being repaired…as long as drivers remember a series of dos and don’ts.

Here VP of global vehicle safety Jeff Boyer, who the company named to the newly created position less than two months ago to help manage the crisis, explains:

Looks good, but that was a long list of qualifiers…

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GM Needs a New Spokesperson, Stat

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Not going so well for her.

This young week has already brought us two new job openings that sound great on paper but might just make you think twice: social media manager at U.S. Airways and director of communications at General Motors.

You shouldn’t be surprised to learn that the first execs to get the axe in GM’s ongoing recall drama were the heads of PR and HR. In yet another non-surprise, the company refused to tie the departures directly to the recall. (This is the kind of decision that makes journalists roll their eyes back as far as humanly possible.)

CEO Mary Barra’s most visible statement this week? A blog post encouraging employees to report safety concerns “whether openly or anonymously.”

Cue that eye roll again…

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GM CEO on Recall Crisis: ‘Terrible Things Happened’

Here’s a case study in double duty internal/external crisis communications via General Motors and The New York Times.

This video was broadcast to employees, but it was clearly also meant to be a public statement; it’s been published on multiple news sites today.

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Recall Looks Like Big Trouble for GM

General-MotorsWe knew the story of faulty ignition switches, airbag failures and the subsequent recall of 1.6 million General Motors automobiles would make for terrible press. But the most recent revelation will almost certainly compound the problem: last night we learned from GM’s own reports that it knew of the issue approximately three years earlier than previously reported.

Of course, this finding will only help to fuel the “novel” lawsuits waiting to be filed.

GM has taken some crisis comms 101 steps to address the problem:

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GM Releases More CEO Pay Details to Counter Gender Discrimination Charge

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Today in This Had to Happen news, General Motors has responded to a flurry of stories reporting that its new CEO Mary Barra (the first woman to hold that position) would earn “48%” as much as the company’s previous chief by releasing more details of her compensation package two months early.

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