The CEO takes out a fullpage ad in the Wall Street Journal today to thank the American Public for “investing” in Chrysler.
Lets see, is there anything more idiotic than spending more than 100k dollars on a full page ad “thanks for letting me waste your money” ad? Does it make it worse that its a business publication where the readers might just recognize the stupidity of wasting money on ad dollars that doesn’t even try to sell the product? How does it make the next unemployed Chrysler worker feel that their entire year’s salary just went for a single, ridiculous ad?
Just one more example of how poorly run the car companies are. Note to the Big 3, spend money to make money. These types of ads have as much value as a Bernie Madoff account statement.
And while I am on the subject again, one last suggestion for the Big 3. Instead of determining the right cost structure for your company by working backwards from the salaries of hourly employees and how they compare to foreign owned competitors, how about doing what every successful business does? Figure out what cars consumers want, and how much they need to sell for. Once you can establish the right selling point that will actually encourage people to buy cars, THEN work backwards to the cost structure you need in order to sell cars at that price point.
For those in Detroit who have never operated a lemonade stand, or any other business, the way profits are generated is by making products at a price people want to buy them for, and then producing them, with all costs allocated, for less than you are selling them for. It’s not apparent that this is a principle that Detroit understands.
And while you are at it, when you spend marketing money, spend it to sell cars, not on Bullshit ads that accomplish nothing
You’ve got my tax money. When it comes time to pay back the cash, since it’s not apparent that anyone in government can be trusted to do the right thing, Im sending these guys after you: