Tuesday, November 18, 2008

When The Pen Is The Sword


No doubt the US auto industry is teetering on the brink of destruction. Ford has the cash to make it though until 2010 but the collapses of GM and Chrysler will destroy the supplier network that Ford and many other auto manufactures depend on. There has been so much talk about the bankruptcy of GM that the shock value has worn off. We're growing to accept that it is highly possible there will be no more General Motors. There is no longer PanAm, Woolworths, Bethlehem Steel, and the list goes on. Icons do pass.

There will be a huge impact to our economy and many companies without GM. But of interest today is Edmunds.com, my former employer. It's not about the website itself, but I guess more about Automotive Journalism here in the states. For years and years, Ford, GM and Chrysler were beat up and nit picked. Toyota's are boring, Nissan's not very reliable after all, Honda's bland, but these never were their main themes. Remember, Hillary Clinton on paper was probably the most qualified candidate for President. The pen is very mighty.

But in the case of Edmunds.com, the pen has come back to stab the hand that holds it. Today's Insideline.com featured an article called "Be American, Buy American". It was written by a "ghost writer" called "The Mechanic". Well that would have to be an Edmunds staffer as I doubt they've given the keys to the website to some nameless person. The picture for the piece was the new Chevrolet Camaro, a car that could conceivably never be produced.

It's a bit too late though. GM writes eight figure checks to Edmunds.com and it's a substantial portion of their total revenue. Out of respect, I wont' quote any figures from my time there, but it's quite a bit. You might say "wow". I found the timing of the article interesting as today the automakers went to the Senate for a beating while they were asking for life raft.

GM may have loved Edmunds.com, but I could never see the love returned. Bob Lutz even once paid a visit to the offices in Santa Monica. But recently they showed a picture of a Silverado attached to a tow truck as a main photo for a long term test. All cars can break down, but never in my nearly 30 years of car magazines can I recall such a slap. Despite the large chunk of cash bestowed on the company, during my time, no upper management drove a GM product. Acura, Lexus, Land Rover and Volvo, as I recall were the personal (not long term test) vehicles with reserved parking. If GM handed me an eight figure check, I might have a Cadillac or two parked in the reserved spaces.

But it may be too late Edmunds. It was not cool to be nice to GM either personally or in print. The company is run by a fine family with high caliber employees and despite the major bruising it may receive for the loss of GM, it will live on.

Just like the rest of us.

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