Increasing Employee & Client Engagement

In honor of our independence celebration, I wanted to give and get thoughts on where the U.S. Automakers are headed…  Then there were two.  Chrysler sold out to Fiat.  Budweiser sold to a foreign company.  We have two iconic American automotive brands.  No longer is it Ford vs Chevy.  It is US against the world. 

The U.S. Automakers are in extreme turmoil.    Americans have really turned their back on them. Chrysler & GM get bailouts and end up declaring bankruptcy and everyone was comparing them to the Wall Street bailout.  Chrysler has to sell.  The Wall Street Bailout was about greed, really complex risky bets. Things like derivatives and bad decisions set in the late 90’s by the Clinton administration about deregulating home ownership and allowing banks to offer loans of more than appraised value. So these are two totally different problems.

I really took a step back this year and reflected.  As the entire economy is in a perfect storm. No industry is hidden. It is affecting almost everyone. I understand that America is a melting pot… a blending of different cultures, but America has really lost its identity and loyalty.  I really believe that the U.S. is the hope and light to the world.

Other countries really are very loyal to there brands.  I saw an article that talked about that the Japanese buy over 90% of the auto’s & goods that they make. A lot of countries follow suit. So our goods are not sold in other countries the way we buy goods & services from other countries. My industry is really guilty. When I started in the industry 10 years ago, 20% of the items were made in America and today less than 2% is made in America.

I looked at my own situation.  I own one American SUV that I have had for 5 years and one foreign car for at least 10. I started a lot of discussions and polling with my friends. More than 90% of the people who had an SUV or truck had an American model. Less than 10% who had a car had an American one. My older cousin & Grandparents were the only people who had never bought a foreign car.

The American Automakers get the American people.  We are gas guzzling, huge horsepower, bigger cars & SUV’s the better. They dominate the SUV market. Gas overall the last 2 decades has been consumable and affordable. Emission standards and MPG were not important to the American people.

This slip to foreign companies did not happen overnight.   Americans have been de-sensitized over time. Another example is TV. It is almost rated R. Language, sexual scenes, and all the other things that come with it has increased every year. The bubble gets a little bit bigger everyday in what is allowed. The same thing is happening with our economic decisions. We allow it to overtake us day by day.  A country is not necessarily defined by what it does, but rather what it tolerates…

I wish I had the magic bullet for the U.S. Automakers, but with very limited knowledge of inter-workings would not even suggest I know. I have read, done research & watched as much as I could during the bailouts and bankruptcy proceedings as it could be monumental to the American economy in the near future. Busch sold out to a foreign company. Chrysler is now owned by Fiat. It is time for Americans to stand up, no matter your race, religion, or political party. We need to unite like we did after 9/11 and hope we never desensitize from that. Really re-look at our country and re-establish who we are, what we are and where we are going, like they did sitting in the room writing the Declaration of Independence.

Doing a lot of reading and writing about the software industry.   The U.S. Auto Makers definitely need to look at how they could adopt a very similar platform. I have spoken about the API and open source coding in past posts, which is where the software platform is given out freely to designers and they create software applications to enhance the platform. The US auto makers need to take that same approach, that they cant build everything.  From what I read they dictate what parts are made etc. Don’t rely so much only on their R&D only. Instead, take their designs and plans to tons of innovators and have them come up with the greatest combustion and how to get 75 mpg. The computer industry has revolutionized with this process.

The second area and really something I am passionate about is how they brand themselves. What is their unique selling proposition? What are they the best in the world at? I asked people what they thought when they heard Volvo – 95% said safety. When I asked about Mercedes – Luxury was number 1 answer. So for all those that say the US auto is more expensive, then you do not understand branding. Mercedes, BMW, Lexus, Volvo are the not price sensitive. They have branded themselves that way. Of the 3 US Auto makers, only Ford has any brand at all. Every person who I spoke with who owned a truck even if they drove a GM, knew Built Ford Tough. Not one person knew GM’s position or slogan or tagline – American Revolution or Like a Rock. What does that mean? You need to be the best in the world at something and spend everyday toward perfecting it and making everyone aware.

Lets look at the top 100 brands in 2009.
Brandz                                                                            Business Week
#14 – Toyota                                                               #6 - Toyota
#19 - BMW                                                                   #11- Mercedes Benz
#35 – Porsche                                                            #13- BMW
#40 – Mercedes                                                        #20- Honda
#50 – Honda                                                              #49- Ford
#67 – Nissan                                                              #53- Volkswagon
                                                                                         #67- Audi
                                                                                         #72- Hyundai
                                                                                         #75- Porsche
                                                                                         #90- Lexus
                                                                                         #93- Ferrari

I looked at several polls and one US Auto Maker made any poll - that was Ford - #49 on business week’s. They really need to re-look at their brands and branding. They also need to really look at the advocates they have on Social Media. They should have way more Facebook fans than they do. Really use it to engage their customers.

Looking at GM’s Website - they have so many brands and models.  I think they may be better served to narrow the focus of their brands and models.  Especially from an advertising & branding perspective.  I have a lot of thoughts about this, but will let this one lay.

I love my Chevrolet Suburban. I would buy another one. It has been a great car. I talk about it all the time and definitely am an advocate. When I need a new car, I always thought I would just buy another Lexus, but obviously with my new thoughts, I was really trying to think what American car I would drive and really could not even recall one model.  After looking at a couple of options didn’t see one that fit me. So unless they come out with different car options, when I buy an American vehicle it will have to be a mid size SUV.

U.S does make good vehicles. We should rally behind them for America’s sake if for no other reason. We need them. Let’s make a stand together because I alone can not make a difference, but will do my part.  I hope they adopt some new practices and use this as a wake up call and reinvent themselves for the 21st century and be what we know they can be.

I pray everyday for America, its leadership and our people. May God continue to Bless The United States Of America.

(Based on conversations I have had, there will be passionate comments and viewpoints, so lets play nice and make it about the topic)   What would you like to see the US Automakers do to reinvent themselves?