GM STATEMENT: "We acknowledge we have disappointed; Violated your trust; Lost focus"

[Perian]

Article quote:

Critics of Mr. Wagoner will get a fresh set of ammunition on Monday when GM runs a full-page advertisement in an automotive trade publication spelling out its need for a bailout and disclosing a candid list of mistakes it has made in the past that has helped lead the auto maker to the edge of collapse.

"While we're still the U.S. sales leader, we acknowledge we have disappointed you," the ad says. "At times we violated your trust by letting our quality fall below industry standards and our designs become lackluster. We have proliferated our brands and dealer network to the point where we lost adequate focus on our core U.S. market."

The ad is an 867-word letter, and is slated to run in the Dec. 8 edition of Automotive News.


GM'S COMMITMENT TO THE AMERICAN PEOPLE

We deeply appreciate the Congress considering General Motors’ request to borrow up to
$18 billion from the United States. We want to be sure the American people know why
we need it, what we’ll do with it and how it will make GM viable for the long term.

For a century, we have been serving your personal mobility needs, providing American
jobs and serving local communities. We have been the U.S. sales leader for 76
consecutive years. Of the 250 million cars and trucks on U.S. roads today, more than 66
million are GM brands — nearly 44 million more than Toyota brands. Our goal is to
continue to fulfill your aspirations and exceed your expectations.

While we’re still the U.S. sales leader, we acknowledge we have disappointed you. At
times we violated your trust by letting our quality fall below industry standards and our
designs become lackluster. We have proliferated our brands and dealer network to the
point where we lost adequate focus on our core U.S. market. We also biased our product
mix toward pick-up trucks and SUVs. And, we made commitments to compensation
plans that have proven to be unsustainable in today’s globally competitive industry. We
have paid dearly for these decisions, learned from them and are working hard to correct
them by restructuring our U.S. business to be viable for the long term.

Today, we have substantially overcome our quality gap; our newest designs like the
Chevrolet Malibu and Cadillac CTS are widely heralded for their appeal; our new
products are nearly all cars and “crossovers” rather than pick-ups and SUVs; our factories
have greatly improved productivity and our labor agreements are much more competitive.
We are also driven to lead in fuel economy, with more hybrid models for sale and
biofuel-capable vehicles on the road than any other manufacturer, and determined to
reinvent the automobile with products like the Chevrolet Volt extended-range electric
vehicle and breakthrough technology like hydrogen fuel cells.

Until recent events, we felt the actions we’d been taking positioned us for a bright future.
Just a year ago, after we reached transformational agreements with our unions, industry
analysts were forecasting a positive GM turnaround. We had adequate cash on hand to
continue our restructuring even under relatively conservative industry sales volume
assumptions. Unfortunately, along with all Americans, we were hit by a “perfect storm.”

Over the past year we have all faced volatile energy prices, the collapse of the U.S.
housing market, failing financial institutions, a stock market crash and the complete
freezing of credit. We are in the midst of the worst economic crisis since the Great
Depression. Just like you, we have been severely impacted by events outside our control.
U.S. auto industry sales have fallen to their lowest per capita rate in half a century.
Despite moving quickly to reduce our planned spending by over $20 billion, GM finds
itself precariously and frighteningly close to running out of cash.

This is why we need to borrow money from U.S. taxpayers. If we run out of cash, we
will be unable to pay our bills, sustain our operations and invest in advanced technology.
A collapse of GM and the domestic auto industry will accelerate the downward spiral of
an already anemic U.S. economy. This will be devastating to all Americans, not just GM
stakeholders, because it would put millions of jobs at risk and deepen our recession. By
lending GM money, you will provide us with a financial bridge until the U.S. economy
and auto sales return to modestly healthy levels. This will allow us to keep operating and
complete our restructuring.

We submitted a plan to Congress Dec. 2, 2008, detailing our commitments to ensure our
viability, strengthen our competitiveness, and deliver energy-efficient products.
Specifically, we are committed to:

• produce automobiles you want to buy and are excited to own
• lead the reinvention of the automobile based on promising new technology
• focus on our core brands to consistently deliver on their promises
• streamline our dealer network to ensure the best sales and service
• ensure sacrifices are shared by all GM stakeholders
• meet appropriate standards for executive pay and corporate governance
• work with our unions to quickly realize competitive wages and benefits
• reduce U.S. dependence on imported oil
• protect our environment
• pay you back the entire loan with appropriate oversight and returns

These actions, combined with a modest rebound of the U.S. economy, should allow us to
begin repaying you in 2011.

In summary, our plan is designed to provide a secure return on your investment in GM’s
future. We accept the conditions of your loan, the commitments of our plan, and the
results needed to transform our business for long-term success. We will contribute to
strengthening U.S. energy and environmental security. We will contribute to America’s
technical and manufacturing know-how and create high quality jobs for the “new
economy.” And, we will continue to deliver personal mobility freedom to Americans
using the most advanced transportation solutions. We are proud of our century of
contribution to U.S. prosperity and look forward to making an equally meaningful
contribution during our next 100 years.

[Perian]

Words are nice, but no one really cares any longer.


10 Year Bumper To Bumper Warranties Are Nicer.

Would you buy either of the following?


2009 Chevrolet Malibu V6 LT2: Current Incentive: $ 5,000.
Warranty: Current

OR

2009 Chevrolet Malibu V6 LT2: Potential Incentive: $ 1,000.
Warranty: 10 Year, Bumper To Bumper


An enhanced warranty will return confidence to buyers and help dealers maintain service levels.

-Just a thought.

[danwaterloo]

I'm glad they did this. At least they acknowledge they have put a lot of crap on the road. My family has owned a lot of the worst (Chevette, '93 Lumina, '00 Malibu, '06 Uplander). I hated GM for a long time as a result, but the new Malibu among other vehicles has improved their image for me, and I now like GM again. I just hope they can clear all those Uplanders and Impalas off the lot sometime, replacing them with Traverses and Malibus, then maybe the public will realize they've made great strides.

[dederer]

Words are nice, but GM has done a lot of apologizing in the past 10 years. I wish they had some inspired leadership that could bring back that can do attitude that made them the world leader in auto sales.

[poncho1982]

I remember them doing this a few years ago as well. The ad said something like "30 years ago we were the standard of the world, but not recently....." I believe it was in Motor Trend, or maybe one of the other rags.

I obviously didn't work then, why they feel it will work now, is beyond me.

Convincing people that American cars are as good, or better than Japanese counterparts, is like pulling teeth. I know, I do it everyday. The Foriegners I work for, will not hear it. If it aint a Toyota or a BMW, they want nothing to do with it. Sad really.

[adplusone]

Embarrasing.

Flat out ass kissing embarrasing.

[eaton53]

It'd be a lot more convincing if the responsible individuals submitted their resignations.

[gmlr]

Its time for GM to stop begging. If they do not want to give GM a bridge loan then GM should file Chap 7 at 2pm EST. The Chap 7 will cause all car production in NA to stop in a matter of weeks, this is the Xmas wish of some. Citibank needs 25 Billion given, they need 20 Billion given, they need backstop 300+ Billion given(not a loan). AIG needs 100-200 Billion given (not a loan). GM CEO must beg like a child for what, a 10-20 billion loan. GM must make a line and hold it, Chap 7 at 2pm EST if no bridge loan is assured. Lehman did not beg, it did not get a gift like Bear Sterns and filed for BK before the sun set. The Lehman BK cost the Govt over 500B. Its time for GM to show that the days of begging are over.

[killerrd2]

Originally Posted by eaton53

It'd be a lot more convincing if the responsible individuals submitted their resignations.

Yea! Let's have the entire antiquated GM board resign and let Lutz take over and hand pick the newbies!

[Mr. Burns]

This is very smart, especially because of recent polls that have most people against this loan.

[adplusone]

From the ad....

"We are committed to producing automobiles you want to buy and are excited to own."

Duh.

[cadsrbest]

Originally Posted by gmlr

Its time for GM to stop begging. If they do not want to give GM a bridge loan then GM should file Chap 7 at 2pm EST. The Chap 7 will cause all car production in NA to stop in a matter of weeks, this is the Xmas wish of some. Citibank needs 25 Billion given, they need 20 Billion given, they need backstop 300+ Billion given(not a loan). AIG needs 100-200 Billion given (not a loan). GM CEO must beg like a child for what, a 10-20 billion loan. GM must make a line and hold it, Chap 7 at 2pm EST if no bridge loan is assured. Lehman did not beg, it did not get a gift like Bear Sterns and filed for BK before the sun set. The Lehman BK cost the Govt over 500B. Its time for GM to show that the days of begging are over.

I certainly feel your sentiments, my thoughts about this are as follows:

1) The loans will go through no question, what politician wants to take the heat for not giving a chance to an American icon.

2) This is posturing to give the unsupporters of the the bill an "I told you so" clause to boast about...However, I don't think that will happen.

3) This will be ammunition for tighter negotiations with suppliers and unions down the road.

Just as GM gets some focus, and some plans with excellent product on the road, a bridge loan will help them through the worst economy in recent memory.

The next 10 years will prove Congress did the correct thing!

[bone]

Toyota has made some pretty pathetic vehicles in the past 30 years. Would you think for one minute that they would ever apologize for those mistakes? Never. I find this GM ad very embarassing and unnecessary. Yes, they made some doozers, however, they are now producing many fine cars. Focus on that,please.

[SS3]

So, if GM gets a bridge loan AND they are really sorry will management put enough money into warranty budgets to allow dealerships to do right by car owners who are suffering from cars with "quality below industry standards"?

Sorry is nice, but it doesnt mean a thing if it isnt backed up by genuine action.

[Nkippert]

Ill only accept this if they go through with their promised changes.