GM says it disappointed and betrayed consumers

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GM says it " disappointed " and " betrayed " consumers

Mon Dec 8, 8:31 AM

DETROIT (Reuters) - General Motors Corp on Monday unveiled an

unusually frank advertisement acknowledging it had " disappointed " and

sometimes even " betrayed " American consumers as it lobbies to clinch

the federal aid it needs to stay afloat into next month.

The print advertisement marked a sharp break from GM's public stance

of just several weeks ago when it sought to justify its bid for a

U.S. government on the grounds that the credit crisis had undermined

its business in ways executives could never have foreseen.

It also came as Chief Executive Rick Wagoner, who has led the

automaker since 2000, faces new pressure to step aside as GM seeks up

to $18 billion in federal funding.

" While we're still the U.S. sales leader, we acknowledge we have

disappointed you, " the ad said. " At times we violated your trust by

letting our quality fall below industry standards and our designs

became lackluster. "

The unsigned open letter, entitled " GM's Commitment to the American

People " ran in the trade journal Automotive News, which is widely

read by industry executives, lobbyists and other insiders.

In the ad, GM admits to other strategic missteps analysts and critics

have said hastened its recent decline.

" We have proliferated our brands and dealer network to the point

where we lost adequate focus on the core U.S. market, " the ad

said. " We also biased our product mix toward pick-up trucks and SUVs. "

But GM also says in the ad that it was hit by forces beyond its

control as it tried to complete a restructuring earlier this year.

" Despite moving quickly to reduce our planned spending by over $20

billion, GM finds itself precariously and frighteningly close to

running out of cash, " the ad says.

A failure of GM would deepen the current recession and put " millions

of job at risk, " according to the ad, which also highlights the

automaker's pledged restructuring and intention to begin repaying

taxpayers in 2011.

GM spokesman Greg said the ad was an attempt by the automaker

to present " a pledge directly to the public. "

" We believe we need to deliver this commitment unfiltered since quite

a bit of media commentary has not kept pace with our actual progress

to transform the company, " said.

Senate Banking Committee Chairman Dodd, a Democrat from

Connecticut who is central to the effort to craft an auto bailout

bill, on Sunday said GM should replace Wagoner.

GM says Wagoner has the support of the company's board.

(Reporting by Krolicki, editing by Dave Zimmerman)