Why GM’s “Ripple Effect” PR Video Will Backfire

Why GM’s “Ripple Effect” PR Video Will Backfire

“Despite restructuring, greatly improved quality and fuel efficiency, and investing billions of dollars in the U.S. each year, America’s auto industry is facing imminent collapse.”

These words, printed on a black screen featuring an E85 ethanol tank, is the way a new video, entitled “Ripple Effect” starts out on YouTube.

View it here: http://www.youtube.com/watch?v=72cHfOKoA1c&eurl

The video, released on Sunday, Nov. 16, 2008, goes on to feature the “ripple effect” a collapse of the “Detroit Three” automakers would have on the U.S. economy, starting with the loss of the three American auto companies - GM, Ford and Chrysler - and reaching down through their suppliers throughout the nation, including those who provide engine parts, car seats, mirrors, tires, and the rest of the vehicle’s accessories.

The companies employ 239,000, and nearly 700,000 rely on them for pensions and two million rely on the auto industry for health insurance, the video notes.

A collapse of the entire industry means a $398.2 billion in losses over three years, the text blares, in the wordless video.

While it may have seemed like a great public relations effort, this "ripple effect" video is going to backfire - big time.

The reason could be that the American people are none too thrilled about the U.S. government bailing out EVERY industry, which seems to be the way things are headed after Treasury Sec. Paulson told Congress last week that he’s used bailout money to buy parts of American companies not on Congresses’ list, or the president’s, when they authorized the “emergency” bailout last month.

But more to the point, it’s because GM has failed SPECTACULARLY to produce results, when they knew times were changing.

“Despite restructuring, greatly improved quality and fuel efficiency…” Really? What company did this, exactly? Surely not GM. Just whom do they think they’re fooling?

And why do they think public relations can come to their aid, when they have done little to solve the problem?

GM has failed to produce a large fleet of fuel-efficient cars for the past decade, knowing that a time of reckoning was coming for the gas hog SUVs they’ve been producing by the hundreds of thousands, yet they continued on doing just that, until this very year.

Meantime, they are pouring millions in to advertising eco-friendly and laudable cars that are NOT CURRENTLY SELLING, but are portraying as if they had already been put on the market. The all-electric Chevy Volt, and entirely hypothetical hydrogen cars, are being touted in print and broadcast ads as if they already exist, or soon will. The fact is, they don’t, and likely won’t. Their electric car of the 1990s was produced, but one car was the full run of that model.

This game continues to be played by GM today.

Two years ago, they built up anticipation that we’d get a trio of hot-looking gas-sipper cars (the Trax, Beat and Groove) that are now never slated for the U.S. at all.

The Volt may indeed hit showrooms - eventually. Their CEO has proclaimed that it’s coming in 2010. Or maybe 2011. 2012 for sure. At least before 2015. Whenever. It’s coming, we’re told. Meanwhile, Honda and BMW are both seriously testing hydrogen vehicles - two steps beyond GM, as usual.

Finally, GM has failed, with a couple of exceptions (the European-designed Saturn Aura and the not-that-bad, high quality Chevy Malibu) to respond to the marketplace. They teased us with those gas-sipping "mini" cars, not meant for the US market, and then teased us with the Volt for years, while pushing SUVs onto their long-suffering dealers. Tell us again WHY this mismanaged company doesn’t deserve to go into Chapter 11?

Not to mention the billions that they’re pouring through each month on extremely large salaries for employees that are putting out pure junk.

Their CEO and management team need to be fired, not rewarded, and if we bail them out, THEY MUST be the first to go.

Which brings us back to the video.

It ends with the dire warning: “Collapse is immanent if we do nothing.” And “What will WE do?”

“We” (meaning GM) need to:
1. Clean house in the boardroom and the upper management.
2. Commit to making clean, green and super-energy efficient cars by 2020.
3. In the meantime, like the Saturn Aura, which is a European-made Opel vehicle with different badging, commit bring almost the entire European fleet of Chevys to the U.S., since they are better made, higher quality, more energy efficient, and are at least five years ahead of the U.S. fleet. (This definitely goes for Ford, too. Go look at Ford UK’s Ford Ka, Ford Focus and Ford Mondeo. Beautiful, powerful, well done and extremely popular in the UK.)
4. Adopt a steep learning curve when it comes to quality. The current lineup of cars, with some exceptions note above, suck. Period.
5. Kill the SUV. Really. It’s over. It was over five years ago. Didn’t you get the memo?
6. Hate to say it, but tell the Unions they must accept lower wages and benefits. Salaries in the low $140,000 range are not acceptable for car assemblers. Sorry. That’s not anywhere near what BMW is paying to build cars in South Carolina or other companies are paying throughout the U.S. It’s simply not a competitive wage.

GM (as well as Ford and Chrysler) needs to also stop throwing PR at the situation, and adopt an action plan, the one above, that restores confidence in the industry.

Public Relations only works when it’s backed up with positive actions. This video is the cry of an addict who refuses to go into rehab.

We should not enable GM any longer.

Stephen Abbott is a Manchester, New Hampshire public relations consultant. His Website can be found at www.abbottpr.com.

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Do You Have An Effective "Elevator Pitch"?

An "elevator pitch" is a statement people make about their business or business concept while in an elevator faced with a potential investor. It can, and often does, also mean the pitch one can give to potential (and current) clients and customers, or even to a member of the media.

Elevator Pitch Outline:
1. What is your product or service?
2. How is it better than other, similar services? (competitive advantage)
3. How can you deliver that product or service effectively, and/or cheaply?
4. How can the customer/client find and purchase those services?

Elements of the Elevator Pitch:
1. Be Brief - you’ve got 30 seconds to 2 minutes.
2. Keep it simple - a grandmother and her grandchildren must both understand it. Kill the jargon.
3. Remember to answer this question: "What’s in it for me?" - What will YOUR service or product do for the person you’re pitching it to?
4. Be sure you’re talking to the right person - Can they really use the product or service you’re selling?
5. Be memorable - Include a positive phrase or image they won’t forget.
6. Tell them where to go - To get your product or service, that is. Have a card ready to hand them with your phone number, email address and Website URL on it.

Crafting Tips:
1. Write down your pitch
2. Read it aloud - does it make sense?
3. Edit out extra words, things that don’t fit the elements, above.
4. Time it. Is it 30 seconds long, or at least under 2 minutes?
5. Run it by colleagues, friends… and business network associates!other tips:
1. Speak deliberately, calmly and clearly.
2. Get their business card - and of course, give them yours.
3. Follow up within three days

Below is a blog posting by Timothy Ferris (author of the Four Hour Workweek) on his fourhourworkweek.com/blog site for May 3, 2008:

Prepping for Warren Buffett: The Art of the Elevator Pitch

So what do you say to the world’s richest man if you, by some miracle, end up standing at the urinal next to him? You better know in advance or you’ll sound like a Hannah Montana fan.
This is why learning to elevator pitch — how to deliver your message is 60 seconds or less — is one of the most important skills to develop if you ever plan on interacting with real players and demi-gods like the Oracle of Omaha…


Why? One example: there are 10,000+ people camping in the rain overnight just to attempt to meet Warren when he walks into the annual shareholder meeting tomorrow morning. 10,000 people.

For meeting VIPs in crowded settings, the goal should be to do 3 things in an introduction of no more than 60 seconds:

1st. Establish credibility. Cite 1-2 examples of social proof like media or association with reputable companies/organizations. Do not speak quickly during an elevator pitch. Slow and calm.

2nd. Make it clear you are not looking for money (unless you are) but have something of interest to discuss after much research, and then ask how you can follow up in a less hectic environment. Give them your card with below #3 handwritten on it.

3nd. Mention something very, very hard to forget about you that separates you from the rest. It doesn’t need to have anything to do with your reason for wanting to meet them. For me, tango is my default. I’ll close with something like: "Just so you remember, as I know you’ll meet a million people today, I’m the world record holder in the tango. Happy to give you and Astrid a lesson sometime if the stars align." Referring to this odd fact will be important when you follow up.
If you meet them at an event or around other people, do not follow up within the next 3 days, as everyone else will. I like to give at least one week and then cite the bolded reason in the previous sentence as my reason for waiting.

Professional Drivers, Inc. Accredited by Better Business Bureau (APR Client)

FOR IMMEDIATE RELEASE
Wednesday, June 9, 2008
Contact: Tony Bellefond, owner, Professional Drivers, Incorporated, 603-627-4266, 1-800-639-1656; info@professionaldrivers.com

Professional Drivers, Inc. Accredited by Better Business Bureau

MANCHESTER, NH / DELRAY BEACH, FL - In keeping with our commitment with offering professional service and customer satisfaction, Professional Drivers, Incorporated has become an accredited business member of the Better Business Bureau, owner Tony Bellefond announced today.

This local, single source provides detailed information about the company and lends support to first time customers decision making process. The reputation of member business is looked at closely by the BBB before allowing membership. High standards insure continuing membership in the bureau.

To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. The first BBB was founded in 1912. Today, 128 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than 3 million local and national businesses and charities. Please visit www.bbb.org for more information about the BBB System.

Drivers for the company, with offices in Manchester, NH, and Delray Beach, FL, personally transport clients’ cars, motor homes and rental moving trucks throughout the continental U.S. and Canada. Our drivers have logged more than six million accident-free miles in over two decades of service.

Personal belongings may be transported at no charge in clients’ vehicles. Pets may be transported in their vehicles for an extra charge. Professional Drivers, Incorporated also reunites cars with their owners after breakdowns and accidents.

More information can be found online at http://www.professionaldrivers.com or by calling 1-800-639-1656.

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