4-3-09

Denise M. McClearey, CEO, PRPSD

Michael Plaxico, Associate Consultant

Public Relations Consulting Recommendations

I represent Ford Motor Company, which is one of the major names mentioned when it

comes to the economic bailout of the auto industry. The members of my public relations group

are Michael Benson, Jacob Feasby, Lesa Hafford, Fiona Hamilton, Sarah Hubbs, Kelsey

Marlow, Tim Mass, Chris Mata, and Matt VanDril. When it came to public relations Lisa,

Fiona, and Tim used their specialization in the subject to give informative input. Jacob, Sarah,

Kelsey, and I gave our perspective from our specialization in advertising. Michael specialized in

journalism, while Chris gave his view from television production, and Matt specialized in

education. I will be looking at the current state of the auto industry and how they got to this

point from a public relations viewpoint, but my recommendations and what I think needs to be

done in the future will be looked at through my specialization of advertising.

Statement of the Problem

Our country is now facing a time of harsh economic recession due to many factors

outside the auto industry. The auto industry along with my client Ford Motors are now in a

downturn because of major decrease in sales. The leaders of these auto companies have

requested an economic bailout for their respective companies. The amount of the money

requested differs based on the fiscal state of the motor company. Even though Ford is making

larger strides than their peers at being more economically responsible, they still are grouped with

the auto makers that need a bailout. My client has requested the least amount of money from the

government and is even cutting back on the amount they are paying executives. Spending is a

major issue when it comes to the bailout because the management of funds within these

companies sometimes comes into question. The overpaying for high price executives and

continuing to produce overwhelmingly large vehicles that do not sell gets them an unflattering

reputation, when it comes to budgeting.

The problem my client faces along with most of the other companies involved in the auto

makers bailout is the lack of public trust. A reason for this is the saturation of information given

to the public and only informing them of what they think they need to know. An example would

be General Motors hiring a public relations advisor to go on shows on major television stations

and tell the public how much the American economy needed to bailout the auto industry.

“Letting the big three fail would be like ten Katrina’s.”(Detrick) This would contribute to public

distrust because the advisor or public figure never mentioned his affiliation with the General

Motors. These types of actions leave the people with feeling of discomfort proving how they

could be misled.

The lack of trust given to the automakers probably goes along with the lack of trust the

public has for its government. Many people hold contempt about the two factions because of the

amount of irresponsible spending done on both sides. Living in a period of economic hardship

such as today the public is angered and almost hurt when they witness the leaders of the auto

industry living lavish lifestyles and still needing assistance from the government. A government

in which they help sustain and support. The citizens of this country grow tired of the allegiance

between the wealthy and government. “The root cause of the problem is the alliance between

big corporations and government” (Zeese)

Another factor that gives the public a bad image of the automakers is their relationship

with the labor force. Many of the leading auto makers including Ford have started a trend of

downsizing and even cutting pension plans. On top of that, the idea that many of these hard

working peoples jobs are being taken over by a machine does not sit well with the American

public. The unions and the leaders of the auto industry often disagree trying to come to an

agreement on the status of the labor force during the economic recession.

Public Relations Theory and Practice That Clarifies the Problem

The main goal of public relations is to “maintain a mutual understanding between an

organization and its public” (PR p.6), which immediately reveals the problem that our client

faces. Done through lack of communication and withholding of much information Ford Motors

does not have an understanding with the public. My company has lost the faith of the consumer

and in turn has lost much if not all of any positive public opinion.

Due to many of the high profile events my client has been involved in they have been

highly publicized in the media along with the rest of the auto industry. Since it has been mainly

focused on bailouts, layoffs, or other negative subjects the power of the media has made public

opinion low. “Mass media effects also are increased when people cannot verify information

through personal experience or knowledge.” (PR p.221) This tells us that Ford Motor Company

would do better in coming forward and informing the public rather than only being viewed

through the media for overspending and undercutting. Given that the public opinion of the

leaders of the auto industry has gotten so bad it has probably has affected their “source

credibility”. This is something we must clear up and make sure the public opinion is changed

about the leaders of Ford Motors. The leaders at Ford have gone so far as to cut their own

salaries and the public never heard of this. Since this information has not been pushed harder to

the public they are unaware of any efforts being made. Public opinion is very important when it

comes to public relations which in turn should be the main focus going forward.

Recommendations

The objective we have put into place for the Ford Motors is to successfully gain back the

public support. For my client Ford Motor Company I recommend a public relations advertising

campaign where the goal is to inform or remind the public that the company is here to stay and

would always have the better interest of the consumer in mind. The company must go into

recovery phase and make a major change in their reputation management. The automaker must

display their social responsiveness first even though they have hurt all the aspects of their

reputation.

This should be done by running commercials in different setting of the auto industry.

One should be in the manufacturing plants showing actual people working which would remind

the people that Ford is still a major employer, which would give it the human effect. The

emotion of the viewer should be reached to give Ford a chance at image repositioning. Another

ad would illustrate a new family buying a new Ford vehicle and representing the “American

Dream”. These commercial will go far in informing the public that Ford is still a strong force in

this country. The advertising would explain to the public that they are still a major part of the

workforce and have not turned to computerized labor. The commercials would give the audience

the sense that Ford is going to be her tomorrow and is still a part of the “American life”.

When it comes to the financial aspect of the situation Ford must pledge to become more

economically responsible. Even though, they are working harder than most they too still have to

attempt to change. It would also be mandatory to inform the public of the strides Ford is making

financially. The public should know about them cutting down on spending and being ahead of

much of the competition. Public awareness should be raised in a more positive aspect to help

move the plan along forward. When this plan is put into effect the public opinion of Ford Motor

Company should drastically change. Now with strategic planning and the proper management of

funds Ford Motor Company can make it through these hard economic times and continue to be

one of the leading auto makers in the world.

Works Cited

Bunckley, Nick. "Ford Executives Cut Own Pay 30% for 2 Years." The New York Times. 3 Mar. 09

<http://www.nytimes.com/2009/02/25/business/25auto.html?EXTKEY=I72RSC0>.

Detrick, Paul. "GM PR Adviser Appears as 'Auto Analyst' to Argue for Bailout." Business and

Media Institute. 29 Feb. 2009

<http://www.businessandmedia.org/articles/2008/20081218125815.aspx>.

Detroit Associated Press. "UAW chief Ron Gettelfinger backs Ford contract concessions."

Mlive.com. 20 Feb. 2009

<http://www.mlive.com/auto/index.ssf/2009/02/uaw_chief_ron_gettelfinger_bac.html

>.

Flammang, James M. "State of the Auto Industry Today." Automedia.com. 25 Mar. 2009

<http://www.automedia.com/State_of_the_Auto_Industry_Today/dsm20070301si/1>.

Zeese, Kevin. "The Causes of the Auto Crisis." The Counterpunch. 02 Mar. 09

<http://www.counterpunch.org/zeese11242008.html>.