by William Bond

Created on: June 16, 2009   Last Updated: June 17, 2009

General Motors will get new life after the bankruptcy, but there will be much work to do, especially getting old customers to begin to buy other GM automobiles in the future. General Motors will get to start over with a plan they developed in 2000, but never rolled it out, because they were too busy trying to right the company, and keep their operations working. With the bankruptcy, suppliers lost, their employees lost many jobs and benefits, their bondholders lost, their stockholders lost almost l00% of their stock worth, and many dealers lost their dealerships after working hard for GM for many decades. What can future consumers expect in the next few years?

l). Fewer dealerships for GM. Hundreds of GM dealers received letters that they will be terminated as dealers in the future. This means less competition for the dealers left in the organization, and a better chance to sell the new GM cars rollilng off their assembly lines. GM promises to build new, fuel efficient cars, per request of the U.S. government, and the new American consumer.

2). The new GM cars will be more expensive, as much as $3-4,000 more for each model. This additional cost to consumers can and will make new car buyers look at other offerings such as: Ford, Chrysler, Toyota, Honda and other cars, before going back to GM again. This will be GM's biggest challenge to convince former GM customers to come back, to a dealership many miles away, and buy a car with a much higher sticker price. Will the former GM buyers begin to look at, and consider buying a foreign car now?

3). Can GM still sell the former customers to stay with them after the bankruptcy? This is greatest challenge GM has faced in their history of the automobile business. They must show that the new cars are worth the money, and today's consumer is still reellng from a credit freeze, a stock market meltdown, whereby many people lost over 40%-50% of their investment and retirement funds, millions have lost jobs, and are trying to get a job, and then pay back their debts from 2008-2009. GM must do some well researched marketing to get these former customers to come back and take a test drive, and sign a sales agreement to purchase a new automobile. GM has a very high fence to climb, especially having to back back the U.S. government the money they owe them as well. How will the new GM car stack up with the competition, and will the former reputation of GM hold up so that today's new consumer will buy from them again? Their marketing and advertising must address this situation, so that the new consumer will consider the new products and service promises, and decide if they are willing to trust GM again in the future.

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