Link: http://www.autoextremist.com/page2.shtml#Rant
Detroit. On Monday, the Motor Press Guild announced the results of its first independent national survey of automotive journalists ranking the public relations operations of major automobile manufacturers. MPG, a non-profit organization headquartered in Los Angeles, is the nation’s largest professional association of automotive journalists and public relations practitioners. The survey was conducted among MPG’s more than 400 journalist members plus another 100 nationally recognized automotive writers who are not MPG members – and it represents the largest and most comprehensive study of automotive public relations performed in North America. MPG also claims that it is the only such survey to be formulated by journalists with the real day-to-day needs of journalists in mind.
And the results?
The journalists’ highest marks for overall satisfaction with media relations activities went to Daimler/Chrysler, Nissan and Volvo, while Mazda, Suzuki, General Motors and Mitsubishi scored lowest. Now, much of the feedback in the survey had to do with the day-to-day minutiae of the media’s typical interaction with auto company PR staffs, but nonetheless, the one glaring result of the survey – the fact that GM is one of the manufacturers at the bottom rung - echoes a much larger concern about GM that’s stirring from both inside and outside the corporation. And that is that General Motors is consistently losing the PR war on all fronts – and it’s costing them dearly in terms of their image with the media intelligentsia on both coasts, their image in Washington, and in the battle for the hearts and minds of the American consumer, a battle that’s being dominated on every level by Toyota, its most formidable competitor.
In many ways, GM’s lackluster performance in the Public Relations arena mirrors GM’s overall lackluster performance in the automobile business. Over the last 15 years - arrogance, complacency, a smug reticence, bad product decisions and even worse marketing maneuvers have marked GM’s (and Detroit’s) swoon into its market tailspin. And in GM’s case, its almost total failure in the PR arena over the last few years has crippled the company to devastating effect.
The result of this seemingly never-ending series of missteps is that not only has GM performance in the market deteriorated in a continuous erosion of market share, its public image has deteriorated to the point that a depressingly simplistic formula is being consistently applied by the mainstream media that goes something like this: GM = Bad, Toyota (or any import company, for that matter) = Good.
In GM’s case, you only have to look as far as what Toyota has managed to accomplish in such a short time with its Green initiatives to see how far back on its heels GM has been sent reeling. Toyota has not only caught GM napping, they have swooped in to become the world’s image leader in environmental marketing, completely usurping GM’s position as the world leader in advanced environmental research – a title that GM can easily still lay claim to, but a title that largely goes unnoticed because of the Green Fog of noble intentions that Toyota has pumped into the mainstream media and the American public’s consciousness.
GM has been caught flat-footed in the market for years, but now that they’re finally addressing their product deficiencies, they’re finding out the hard way that there’s more to it than just generating hot new cars and trucks. GM is discovering – albeit painfully - that its public image, along with the media’s perception of that image, is something that’s far more difficult to change. It’s bad enough that GM’s rampant discounting mentality over the last four years has cost it dearly in terms of public perception, turning it into "America’s Discount retailer" literally overnight, but that problem has been exacerbated and compounded by GM’s inability to portray itself in a positive light at virtually every turn. In other words, I would frame it as an abject failure on the part of its Public Relations function. And there are many reasons for it.
First of all, of the Detroit-based auto manufacturers, GM's PR staff is clearly the deepest and arguably one of the most talented groups operating today. Even by world standards, GM PR in my opinion is as talented as any car company’s out there, even when compared against Toyota’s vaunted PR staff – which I consider to be the best overall. But GM clearly doesn’t know how to use the PR talent at their disposal - and because of it they’re getting their hats handed to them by Toyota PR on a daily basis.
GM is clearly a company in crisis mode right now. They’re getting hammered at every turn by the card-carrying members of the anti-car, anti-Detroit intelligentsia in the Green movement and by the equally strident anti-Detroit media centers on both coasts, not to mention by a large faction of Washington political operatives who would like nothing better than to see GM – and Detroit - go down in flames. Add to this the fact that Toyota has gained the upper hand on GM at every turn, and you have a company that’s slumping against the ropes like a punch-drunk boxer about to go down for the count.
But even though GM is in crisis mode, its PR staff, as talented as it is, is seemingly ill-equipped to deal with the situation. Rather than acting to craft and project an aggressive new public stance for the company based on its strengths, GM PR's strategy seems to revolve around constantly rationalizing its competitive inadequacies - and it has failed the company at its most desperate hour because of it.
And a lot of that has to do with the leadership, or lack thereof, in GM’s PR department. Tom Kowaleski, GM’s veteran PR chief (and ex-Chrysler Group PR practitioner), is known for being product-savvy, and he's also known for his elaborately-staged product introductions at auto shows and lushly produced media events around the world. Kowaleski, who prides himself as being a tastemaker of esteemed stature, has personally orchestrated many of the more memorable media events around the world in recent years. But Kowaleski is equally notorious for playing favorites with the media – something that is anathema to members of the press who are trying to break stories. He’s also famous for holding grudges against certain members of the press and for making them pay for a long list of real or imagined sins, something that has engendered nothing but contempt from the media during his tenure. The media has their "long knives" out for GM almost on a daily basis, and much of this is due to their contempt for Kowaleski's infuriating practices. Needless to say, when GM needs every shred of positive reinforcement it can muster in the media, it's not getting it - for all of the wrong reasons. In short, Kowaleski’s selective expertise in product introductions is duly noted, but he is not a crisis PR manager, not by any stretch. And his aggressive, attack-dog mentality and openly adversarial relationship with the media has cost GM dearly under his reign.
But Kowaleski isn’t solely responsible for GM’s PR failure of late. A lot of it has to do with the fact that Rick Wagoner is generally reluctant to court the media or to make himself available for one-on-one interviews. Wagoner understandably wants others to take that role, and with executives like Bob Lutz and Mark LaNeve able to step in for him at a moment’s notice, it’s easy to see why he’d think that. But the one thing that Wagoner has been most reluctant to do with the media is to articulate a clear-cut plan for the company’s revival – and that’s the one thing that the media wants to hear from him more than anything else.
Like it or not, Rick Wagoner is the face of General Motors. As much as he doesn't want to deal with it, the buck does stop with him. He must change his attitude and stop viewing the media in general terms as "the enemy" - and go out on the stump and passionately present his company's position on a wide range of issues. And it can't happen on a one-shot media blitz either. He has to cultivate a presence with the media on a consistent basis if he wants to communicate GM's story effectively.
With the right senior person advising him, perhaps Rick would come to understand the crucial role PR must play in projecting the company’s image and defining the company’s position on various issues, because right now, GM is nowhere in terms of being able to generate positive coverage in the national media. And GM has a positive story to tell too – about product, about technology, about environmental expertise and about being a strong corporate entity interested in this country’s economic future. But right now, GM’s message is getting lost in a cacophony of bad news, bad vibes and bad attitudes.
GM is being taken to task on a daily basis by the media and by its foremost competitor because it has failed to understand the integral and powerful role Public Relations must play in the company’s revival and long-term survival. And until they get a grasp on the PR situation, it won’t matter how many "gotta have" products they can generate.