SUMMARY FOR THE CASE
BIG GM
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YADIRA SUTHERLAND
Background: The General Motors Company, also known aGM,
is a U.S.–based automaker with its headquarters in Detroit,
Michigan. The company manufactures cars and trucks in 34
countries, recently employed 244,500 people around the world,
and sells and services vehicles in some 140 countries.
Business Need: Following declaration of Chapter
11/363 Bankruptcy, General Motors needed to completely
redefine its established brand image, which appeared to
consumers as faceless, nameless, outdated and impenetrable.
The new GM brand structure would require a more accessible
and transparent feeling in order to help humanize the brand.
Social Media Solution: Build a diverse social media team, with
CEOengagement and support, to handle all
logistical/management social media operations, which allow the
newly defined GM brand mentality of openness and
engagement to be clearly communicated and fully accessible to
the media, to the general public, and most importantly, to
customers.
Business Result: Held market share with four fewer brands,
increased awareness and consideration, created solid customer
loyalty and positive brand awareness.
What actually happened: As the financial industry collapsed
into decay in late 2007, things progressively worsened across
all industries in America, including the automotive industry. A
year later, corporate giants and small businesses alike
continued to fear the worst was yet to come.
Despite countless efforts to prevent the inevitable bankruptcy
filings including “putting divisions and parts operations up for
sale and cutting the size of its workforce repeatedly,” problems
continued to worsen. On June 1, 2009, GM’s worst nightmare
became a reality when it filed for bankruptcy. Because of this
drastic setback, and even with the U.S. government estimated
to pledge an additional “$30 billion at least … on top of the $20
billion handed to [GM] already,” the future seemed uncertain
for one of the Big Three American auto giants.
GM had weathered many difficult financial climates throughout
its long history. In an article for Business Week reviewing
General Motor’s current financial state, reporter Ed Wallace
makes a key observation: “[Even] after the 1910 Financial
Panic ended, rising sales proved that GM was viable in any
condition.”
Over the decades since its founding in 1908, the company has
