Bailout Watch 172: GM Marketing Maven Launches Legislative Crusade

Robert Farago
by Robert Farago

Dear GM Dealer:

Earlier today, during a GM Dealer IDL broadcast, I provided you with a GM Business update and significant information about the vital role the U.S. automotive industry plays in the health of the country in terms of employment, annual economic output, exports, R&D investment and retail business. As we’re in the midst of the deepest crisis our industry has ever faced, GM’s priority is on seeking support from various U.S. government agencies and congressional leaders. We need your help now to ask government officials to approve an additional loan package to help us deal with our current liquidity crisis.

Next week, Congress and the current Administration will determine whether to provide immediate support to the domestic auto industry to help it through one of the most difficult economic times in our nation’s history. Your elected officials must hear from all of us now on why this support is critical to our continuing the progress we began prior to the global financial crisis.

As you know, we have taken the tough, necessary actions over the last few years to strengthen our competitive position. With our UAW partners we have reshaped our business and will have reduced our structural costs by more than $13 billion by 2010 and have closed the quality and efficiency gaps with our competitors. We also are building products that have received great customer acceptance and acclaim, as we have seen with the Chevy Malibu, Cadillac CTS and our family of crossovers. And, there’s more to come with the Chevy Volt which will position GM as a global technology leader as well as more hybrids and fuel efficient passenger cars like the Chevy Cruze.

The consequences, however, of a portion of the domestic auto industry collapsing extend far beyond GM’s ability to continue its transformation. One in 10 American jobs depend on our industry, as well as the health of communities, dealers and suppliers in all 50 states. As you know, nearly 3 million employees, retirees, and their families also depend on us for their pensions and health care. Because of the economic contributions of GM and its dealers, the cost of allowing this industry to fail would be catastrophic: 3 million jobs lost within the first year; U.S. personal income reduced by $150.7 billion; a government tax loss over three years of more than $156 billion. This level of economic devastation far exceeds the $25 billion of government support that our industry needs to bridge this current period.

Today, I want you to take the time to contact your members of Congress to ask them to support America’s domestic auto industry. Please call the following number to be connected with your legislators 1-866-874-9356. To assist you with contacts to your Congressional representative, attached are two documents: 1.) Telephone call directions and script for your use in speaking with your representative, a sample letter from you to your representative and a sample “Letter to The Editor” for your use with local media; 2.) Talking points (that include the economic figures cited above) are in the attached document to assist you with the calls. Additionally, you can visit www.gmfactsandfiction.com to obtain further information on the auto industry and GM and the ability to create a letter from you to your respective congressional representative urging them to take action in support of the auto industry. Once you’re on the homepage, click on the “I’m a dealer” tab.

Support for the domestic auto industry will contribute to a stronger economy, save millions of jobs, and establish U.S. manufacturing and technology leadership in the global marketplace. As an employee, you have a lot at stake and continue to be one of our most effective and passionate voices. I know GM can count on you to have your voice heard.

Thank you for your urgent action and ongoing support.

Mark LaNeve

GMNA Vice President

Vehicle Sales, Service and Marketing


Robert Farago
Robert Farago

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  • Ricky Spanish Ricky Spanish on Nov 13, 2008

    I emailed my congresspeople and told them NOT to support the bailout because the companies are just going bankrupt anyways, and they'll never repay the loans once they do.

  • Anonymous Anonymous on Nov 14, 2008

    "Mark LaNeve must be shaking with fear that GM will fail before his hair transplants are complete." Criticizing an individual for their physical traits shows absolutely zero integrity. Also cruel, useless, irrelevant and plain stupid.

  • Analoggrotto Kia Tasman is waiting to offer the value quotient to the discerning consumer and those who have provided healthy loyalty numbers thinks to class winning product such as Telluride, Sorento, Sportage and more. Vehicles like this overpriced third world junker are for people who take out massive loans and pay it down for 84 months while Kia buyers of grand affluence choose shorter lease terms to stay fresh and hip with the latest excellence of HMC.
  • SCE to AUX That terrible fuel economy hardly seems worth the premium for the hybrid.Toyota is definitely going upmarket with the new Tacoma; we'll see if they've gone too far for people's wallets.As for the towing capacity - I don't see a meaningful difference between 6800 lbs and 6000 lbs. If you routinely tow that much, you should probably upgrade your vehicle to gain a little margin.As for the Maverick - I doubt it's being cross-shopped with the Tacoma very much. Its closest competitor seems to be the Santa Cruz.
  • Rochester Give me the same deal on cars comparable to the new R3, and I'll step up. That little R3 really appeals to me.
  • Carson D It will work out exactly the way it did the last time that the UAW organized VW's US manufacturing operations.
  • Carson D A friend of mine bought a Cayenne GTS last week. I was amazed how small the back seat is. Did I expect it to offer limousine comfort like a Honda CR-V? I guess not. That it is far more confining and uncomfortable than any 4-door Civic made in the past 18 years was surprising. It reminded me of another friend's Mercedes-Benz CLS550 from a dozen years ago. It seems like a big car, but really it was a 2+2 with the utilitarian appearance of a 4-door sedan. The Cayenne is just an even more utilitarian looking 2+2. I suppose the back seat is bigger than the one in the Porsche my mother drove 30 years ago. The Cayenne's luggage bay is huge, but Porsche's GTs rarely had problems there either.
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