Business and Economy &Business of PR &Clean Tech &Ecofriendly &Environment &Leadership &Marketing &Media &Michigan Public Relations Firm &Thinking Green 05 Feb 2009 05:41 pm

Bailout Fallout

Last week I wrote about including “Going Green” in business plans of the future, not only to help the environment, but also to sustain company coffers. This strategy is readily apparent following General Motors (GM), Chrysler and Ford’s visit to Congress last month and their subsequent unveilings at last week’s North American International Auto-show (NAIA).

In December, the CEOs of Detroit’s Big Three trekked out to Congress on the wheels of their newest hybrid vehicles in search of a Bailout. Although the CEOs were successful in acquiring a $17.4 Billion loan, the trip cost the automakers a great deal of credibility and public perception. GM CEO Richard Wagoner defended the decisions of the last few years as “right for the time”. GM’s resolute decision-making resulted in sluggish development of fuel-efficient vehicles; a disparaging trend given the nimble (and successful) movements of Toyota and Honda. The U.S. auto leaders needed to become relevant and responsible once again. Like many businesses both in Michigan and around the world, they turned their focus to environmental issues.

The Big Three were able to secure the congressional loan on the merits of their plan to go green and produce hybrid vehicles; an act that will benefit all three companies financially and in the public’s eye. A report in the Michigan Business Review identifies the mission ahead:
“[Chrysler, Ford and GM] face the challenge of introducing new products while convincing the public that they’ll be around to build those products.”

These new products include a more fuel-efficient, direct-inject turbocharged engine called Ecoboost from Ford…which sounds cool enough to be in a Batman movie. GM is looking for big returns on their E-Flex platform in which vehicles are battery dominant and plug-in capable. Chrysler is making the most of its new bailout bounty by promising three electric vehicles by 2010, shocking to some. Until these new innovations reach the market, PR opportunities such as the NAIA and news reports must be considered deftly. Going Green isn’t enough anymore to sway the American consumer. Companies now must to show purpose with environmental measures, especially when they are receiving our tax dollars.

Case Ernsting

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