Why GM may never lose the moniker “Government Motors”

Perception is everything. You hear it over and over again, but most forget about its implications when they’re selling. Embellishment is fine, but there is a limit. Once when speaking to a group I stated… ” If it wasn’t for embellishment, people wouldn’t get married.” this caused quite a bit of laughter because people get the joke.

It’s fine to embellish a garment with rhinestone to give the appearance of diamonds. Remember perception is reality. However, if someone asks you if they’re real, only the truth will do. Anything else is a direct attempt in deception. Period!

Now let’s look at General Motors. As I’m writing this article, GM is running TV commercials stating they have paid back the tax payers 100% and with interest 5 years ahead of schedule. That is far from reality. Actually the tax payers still own almost $60 Billion in stock that the US government purchased in order to keep GM from being dismantled, sold off, and put out of business. This repayment equates only to just above 10% of the total commitment. It was the liquid part of the agreement, not the entire commitment of the loan. It’s the equivalent of saying, “The bank loaned us money to buy a business, 90% for the hard assets and 10% for operating expenses . We paid back the 10% so we are now “Paid in Full.”  So if someone asked whether you still owed any more money…what would be the response? And would the answer come from a car salesman, or a politician? I guess now it’s both, but don’t worry, maybe there’s a warranty. Or does that cost extra?

Once perception feels like deception, you’ll lose your customers forever.

Mark