In a year that has seen General Motors shedding brands like hubcaps flying off clunkers, the disappearance of Hummer comes as no surprise. After the backfire of the Saab acquisition (see my piece “A Saab Story” on Portfolio.com Dec 23, 2009) and having driven proprietary brands such as Oldsmobile and Pontiac into the proverbial ditch, this latest wreck only dramatizes GM’s failure to create brand narratives that appeal to an emerging global zeitgeist.
In the latter half of the 20th century, GM’s branding prowess persuaded consumers that the cars they bought truly defined them as individuals. If one had the means to get behind the wheel of a Corvette, Cadillac or Saturn, aspirations, achievements and values could be broadcast to the world at large. Now— with the emergence of a global sensibility that includes broad-based rejection of perceived U.S. arrogance, disappointment and weariness with Gulf War II, alarm at environmental degradation, and universal concern with energy conservation—that marketing success has come back to haunt GM’s Hummer. The vehicle became a farcical narrative celebrating American arrogance, excess and military adventurism—values that few aspire to in this century.
The brand managers of Hummer should have seen the danger signs. As early as 2002, it was clear that a second Gulf war would break out, energy prices would skyrocket, and gas guzzlers would become obsolete. Decades-long global support for protecting the planet was growing. Early adopters’ embrace of hybrid vehicles was a flashing beacon of an emerging consumer sensibility. While the scale of the global financial crisis was not foreseen by anyone, a vast real estate and consumer credit bust was predicted well in advance of the crash of Bear Stearns.
Missing this broad-based values shift has proven costly for GM. In this new era, brand constituents expect global brands to be driven by a Purpose that transcends commerce and advances humanity. Epitomized by early adopter Arnold Schwarzenegger, the Hummer was a badge brand that signified conspicuous selfishness, a sense of entitlement and a boastful willingness to pay up for gas and two parking spaces. Rather than for people who aspired to something noble, meaningful and larger than themselves, it was for the bullies of the boulevard. In the end, the Hummer was a fad brand not sturdy enough to survive the economic and social terrain of 2010.
The next challenge for GM is to ensure that their four surviving brands each have a clear, credible and relevant Purpose. Following that, they would be well-advised to examine the GM brand itself. Historically, this brand has been more closely followed by the investment and labor communities than by consumers. Going forward, after its bailout by American taxpayers and as nationalism becomes more important in the auto space, expectations for GM will be high. To even contend for the checkered flag in 2020, GM must articulate a clear Brand Purpose that will foster a culture of excellence and appeal to new consumer values. GM defined modern management excellence in the early 20th century. Does it have the grit, the smarts, the organization and a purpose-driven value proposition to do it again in the 21st century? Given the recent track record with their portfolio brands (see “Cadillac Distances From GM to Avoid Bankruptcy Stigma”; BusinessWeek March 9, 2010), I am left wondering what car brand will be next to crash.