The Difference Between General Motors and You
“Astounding.”
That’s all I could think as I read the details of General Motors and its Chapter 11 bankruptcy filing this week. A one-time titan of industry, the government is spending $50 billion of your money to enter an arena it has never gone into before: salvaging an American icon whose best days may be behind it.
I watched an interview last night on a cable news program with the Vice-Chairman of GM, who reacted to the statement that it was a sad day for the company by saying, “Well, unfortunately, I’ve known this day was coming for about 4 to 6 months now.”
“What??”
That ought to anger every one of us who is working to keep our much smaller businesses alive each day, and who isn’t about to get a bankruptcy bailout.
The Wall Street Journal reported on Tuesday that bankruptcy protection “should allow GM to pull off one of the most expedient downsizings in the industry’s 120-year history,” shuttering 2,600 costly dealers, closing 14 factories, and escaping the crushing weight of its own union employees’ labor deal. All in all, they’re shedding almost $80 billion in debt, and realizing work-force savings going forward of billions of dollars a year.
If you’re seeing your banker tomorrow, why don’t you ask him or her if they’d be willing to do a “mini-GM”-style deal with you? Tell them you’ve got some employees that have some bad compensation deals, you’ve over-extended your dealer network, and your products aren’t as competitive as some of the others, so you’re looking for someone to finance your “escape” from those bad decisions.
That’s the difference between GM and you.
The dominant players in every category — the 800-Pound Gorillas — get special favors. Because they affect so many others in society, the President of the United States deemed GM to be special enough to get a deal unlike anyone else in American history.
We may not be that big, but as sales professionals, small business owners, and entrepreneurs, we ought to look at the General Motors story as an example of how the dominant players are able to get special treatment, leverage, and “favors” in different ways.
I’m still angry about GM, but I have to admit that it’s one of the perks of being an 800-Pound Gorilla — and it’s reason enough to try to become one in your own marketplace.
