Opinion

'Over The Wall' with Mike Guinn


By now everyone’s heard the news, various Toyota models are taking off on their own, giving their drivers unintended joy rides that have resulted in spectacular accidents, deaths, lawsuits and massive recalls.

Even so, the Japanese automaker’s troubles are minor compared to what’s happening with General Motors. As much as the recalls and bad publicity caused Toyota, at least they are positioned to recover their reputation, even if it takes years. GM, on the other hand? Well, there are worse bets, such as the Clippers winning the 2010 NBA Championship, but not many others.

Before anyone accuses me of anti-Americanism, let’s take a look at the issues these two companies are dealing with: Once we’ve done so, ask yourself, which company would you want to helm?

First off, the once champion, General Motors, which took a TKO in 2009 after years of being pounded on the ropes by the United Auto Workers, retirees’ medical bills and accusations that it had been years since the products rolling off the assembly lines showed even a hint of originality. All of which contributed to their bankruptcy in 2009.

And yet, whether these accusations are true or not, they matter little to the main reason GM will have so much trouble rebounding: Namely, that the folks with the money in this country no longer trust the automaker.

If you’re at least age 35 and have owned a GM car, then you know darn well what I’m talking about. The “quality” of these automobiles, in many cases, were virtually non-existent. Interior falling apart, engines that were done before the 100,000 mile mark, electrical issues, you name it. These problems became so ingrained that many consumers vowed to never again purchase an American-made car.

According to numerous notices the past few years, from the auto press to Consumer Reports, the General Motors’ quality now rivals anything coming from Japan. But the problem remains: Too many folks were burned by this company in the 1980s, and it’s these consumers, now in their 40s, 50s and 60s, who have the wealth needed to buy new luxury cars. And they’re largely bypassing GM offerings.

The situation is similar to a husband whose wife cleaned out the bank account and ran off with the gardener 10 years ago: She may very well have turned her life around, but if she comes back asking for forgiveness and reconciliation, how many of the burned would even let her in the house?

Compare this to what Toyota is dealing with. Sure, “sudden unintended acceleration” is hardly a selling point, but the problem has been extremely rare. On top of this, the company spent billions on massive recalls. But most importantly of all, there is huge brand loyalty remaining for this manufacturer, despite its troubles. The comment, “I don’t care what’s happened, I love my Toyota” has been heard by me more than a few times in the past few weeks.

I’m fairly certain both corporations are hard at work nowadays putting out a top-quality product. But if I had to forecast one of these two companies as the winner in 2015, my bet is the leader’s CEO will be looking at Far East ocean views out his office window, rather than the buildings of downtown Detroit.

Mike Guinn worked for General Motors and owned a GM car in the 1980s, but left both behind after learning that “quality” referred to the company’s secretarial pool rather than its product. He then went into journalism, where “quality” refers to a writer who can fill the most space while earning the least amount of money. He lives in Saugus.



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Last Updated (Wednesday, 31 March 2010 00:24)

 

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