INTRODUCTION TO THE CHEVROLET COBALT IGNITION – FAILURE SAGA & RECALLS TIME

LINE:

• Initial problem began between 2005 and 2008

• GM’s engineers were aware of the mechanical problem that existed, which explained

why airbags failed to deploy which killed numerous people

• Explanation why the problem stopped after the 2007 model year

• A written report was issued; problem was faulty ignition switches too easily turned

from “Run” to Accessory” mode, which disabled the airbags

• GM finally issued its first recall on February 7, 2014

• GM hired Mary Barra as the new CEO to start the clean up process

• Barra hired an external PR firm to recreate GM’s image, identity and reputation

• GM offers the government explanation to their mistakes and/or negligence

• GM put in place preventive methods, so that this kind of problem does not occur again

• GM agreed to pay a $35 million dollar fine to the U.S. government of its $37 billion dollars in sale last quarter.

Our firm has offered to GM the following suggestions to rebuild GM’s brand in the automotive industry:

• Crisis Management (Future changes)

• Corporate Communication

• Identity, Image and Reputation

• Corporate Responsibility (CR)

• Media Relations – Social

• Marketing Communications

• Internal Communications

• Government Relations

A crisis is something everyone can relate to. A 2011 study of companies around the globe found that 59% of businesses have experienced a crisis.

Crisis caused by human error and negligence; resulting in injury, casualty of life, lost revenue, and brand devaluation could have been prevented with proper planning already in place.

When planning for a crisis brainstorming should take place with senior managers along with representatives from the areas that are most likely to be affected by a crisis

The planning and anticipation of a crisis should result in A FORMAL CRISIS MANAGEMENT PLAN that is printed and acknowledged by signature to all appropriate managers.

1. A list of names and phone numbers of everyone on the crisis tea, AND

external emergency contacts, such as police and fire departments.

2. An approach to media relations. Tell as much as you can as soon as you can

to avoid jeopardizing credibility.

3. A strategy for how to notify employees..

4. A location to serve as the crisis headquarters.

5. A description of the plan that includes the communication strategy and

logistical procedure.

During The Crisis

1st. Get control of the situation as soon as possible. Accurately defining the problem.

2nd & 3rd. Gather as much information as possible. At a Centralized Crisis

Management Center.

4th. Communicate early and often. Conveying the company values, concern for public

safety, and commitment to aiding the people most affected by the crisis.

5th. Understand the media’s mission in a crisis. They are looking for a good story with

victims, villains and visuals.

6th. Communicate directly with the affected constituents.

7th. Remember that business must continue. The effects of the crisis on other parts of

the business must be anticipated.

8th. Plan to prevent another crisis immediately. Because motivation is fresh to learn

from mistakes made the first time.

Ranking with competition 77 consecutive years lead in sales 1931-2007

• Safety short comings• 29 million recall’s worldwide this year

alone• Negligence

PEOPLE WANT TO KNOW WHERE AND WHEN IT WILL STOP!!

NOW

• Failure to innovate

• Legislative battles

• Revamped Competition

• Recalls

• Economic inequality

FUTURE

• Most trusted brand

• The best value of all brands

• Best performance and style

BRAND, IMAGE, CRISIS

How will General Motors be perceived by its consumers??

Our firm has determined that the following items, if and when, incorporated into the GM’s new culture branding, imagery, identify and reputation , will in-fact, bring about the rebuilding of GM’s Corporation Responsibilities. Here are a few ideas that we are presently implementing:

Grants:• We are offering grants to our constituencies; if you are a nonprofit

organization doing work in one of our focus areas, you may be able to apply for a grant.

Education:• We are striving to fuel the imaginations and ambitions of today’s students

and tomorrow’s leaders.

Health & Human Services:• We lend ourselves to health car, disaster relief and wellness to our

constituencies.

Environment & Energy:• We take seriously the stewardship and responsible, sustainable

management of the environment.

Community Development:• We are dedicated to economic development and improvement

communities.

It is our firm’s opinion in Crisis Management, especially in this type of tragedy, it is extremely important that the GM spend as much time in communicating their company’s future strategic plan, mission, operating initiative and community involvement both internally and externally. It is our goal to incorporate better time management skills for GM’s CEO schedule which should open more time for our CEO’s to develop better relationships with their present and future constituencies.

Recommendations:

Communicate and propose options to the government for keeping

up a consistent and upward monetary development.

Following the rules and working with the government’s agencies

such as:

- Consumer Product Safety Commission (CPSC)

- U.S. Securities and Exchange Commission (SEC)

- Obama’s administration.

-The Treasury Department

• Recall on the Ignition Switch, what really happened?

- After careful investigation GM has reason to believe the defective ignition switches, were caused by the “switch detent plunger”, which is designed to provide enough torque to keep the ignition from accidentally turning off, in this case the plungers were not supplying enough torque to the designated area, as a result many people have lost lives, as well as suffered serious injury.

(A step in the right direction):

- Our firm along with GM, has began taken steps in the right direction by informing customers to remove any access “clutter” (i.e. key chains, key rings, excessive keys, and any heavy items) customers only need to have one key that operates the vehicle in the ignition. During the investigation of the recall we noticed that the weight of the excessive keys triggered the ignition to switch dials while driving.

The Perks:

- In efforts to create a positive reputation with all of our customers in the future, GM would like to continuously update and inform customers with tools such as GM’s new interactive mobile app. This new App provided customers with a first hand glimpse of what's happening in the company. (i.e. new releases, parts & products, chat options)

- (The GM Mega quarter program)

- introduce the companies first ever incentive program, geared towards employees and family members of victims

- Qualified participants will have the opportunity to gain access to pre releases GM products including vehicles, paraphernalia, and certifies services at a discounted rate of forty- percent only valid twice a year Summer (May-July) and Winter (November- January) for a lifetime.

-We have initiated a plan of action to address the negative perceptions towards GM, by implementing several courses of action (In- house)

We want to…

1. Create an organized “Media List” collaborate with GM’s Public Relations sector.

(Names, title, company, contact info, specific stories they cover)

2. Issue a Quick Response Media Interview

(helps to shape public opinions, its free, people support org. that are well known)

3. Publicly Issued News letter

(When, what, who)

GENERAL MOTORS ADDRESSES RECALL NIGHTMAREIn recent action of our multimillion dollar vehicle recall, we at General Motors are working diligently

to address the many issues and concerns of our customers and employees. Here at GM our mission is

to “ensure products and services of such quality that our customers will receive superior value while

our employees and business partners will share in our success and our stock-holders will receive a

sustained superior return on their investment. “ In light of the company’s mistakes, GM accepts

responsibility for the endangerment of its customers by failing to recall the defective ignition switches

sooner. As a major corporation we strive for the safety of our customers at all times, our deepest

condolences are sent to the victims’ families due to this tragic malfunction. In efforts to make amends

and present the company in a positive light, we at GM have incorporated a newly established

corporate wide program called (The GM Mega quarter- family & friends) that aids not only to victims’

families but to our GM employees as well. Our program will allow the opportunity to gain access to

GM products including vehicles, paraphernalia, and all certifies services at a discounted rate of forty-

percent only valid twice a year Summer (May-July) and Winter (November- January). As a

corporation, we are continuously working daily to ensure that incidents such as these won’t happen.

In place of these efforts the company plans on creating close relations with media outlets, establish

quick responses in the press, and creating a media list that entails direct journalist and media

contacts on file etc. We know that these efforts won’t happen overnight without the help of our

constituents and supporters.

Mostly Sunny, High 73 Low 54 Chron.com Tuesday Dec 09, 2014 * * * VOL. 111. NO. 41 $1.00

Internal communication and the Changing environment

Organizing the internal communications effort

Implementing an Effective Internal communication program

Managements role in Internal Communication

Internal Communication & Its Changing Environment

Internal communication in the twenty-first century is one of the key areas in an organizations communication function. It goes beyond memos, emails, publications and broadcast but it seeks to strengthen the relationship an organization has with its employees.

Organizing the Internal Communication Effort

Communication AuditOne of the first steps to be taken in addressing the internal communication lapses that contributed to the Chevrolet Cobalt ignition recall is to conduct an “internal communications audit” which would help us at General Motors design the right program to better manage our communications challenges

Line Managers Interaction with staff membersLine managers would need to have better interaction with their departments; this gives them an idea of what is going on in each unit. To make this more effective, more face to face meetings would be adopted by each unit both formally and informally to help employees have a better rapport with their managers and supervisors.

Implementing an Effective Internal Communication Program

Internal Branding Internal branding is very critical to us at this stage as we try our best to win the confidence of our customers and the general public, it is important to note that one of our greatest tools we can use are our employees. They would better augment our different advert campaigns to the general public as we try to sell our ideas and also win back the confidence of our customers

With the GM Employee Discount Program (EVPP) already running, this gives employees and their family members a discount rate when purchasing a General Motor car. We would further strengthen this program and also ensure that every employee tries to make sure that at least a member of his/her immediate or extended family drives either a Chevrolet, GMC, Buick or a Cadillac car.