What's the Value of Heritage?

[vandornjim]

It’s no secret that things are tight at GM and most other corporations right now. The big secret is how they got this way. Just last summer GM was crushing brand new stainless steel benches with forklifts. The employees pleaded with GM to allow them to be purchased, put to good use. The answer was that GM needed the "tax write off." Now, just a few months later, GM threatens to close its doors and put a strangle hold on the US economy. Could no one see outside their office windows in downtown Detroit?
So I guess it should come as no secret that now in hard times, GM has decided to get rid of a huge portion of their old project cars from the past. At this year’s Barrett Jackson auction there will be a vast collection from GM’s inner chambers offered for public sale. They call it the "GM Heritage Collection".
You know, I remember just a few years ago…OK, maybe 20 or so when GM was a completely different company. I remember when GM had creative people who dreamed, invented and made automotive history, all the while creating excitement and fame for GM. I remember those days and wonder if GM will be remembered for those contributions to automotive history, or as a company whose vision was obscured through the delaminated windshields of years gone by….
A long time ago, I went for a visit to my Dad’s work. In their main lobby were displays of years gone by, important icons which developed that company, gave it an identity, made its workforce proud to be a part of its history. It was the company’s heritage right there under glass and behind partitions. It was the weirdest looking aircraft I ever saw, and one that should never have been able to fly. But it did. It was called the Flying Wing and it was built by the Northrop Corporation way back in the 1940’s.
Jack Northrop was very much like many of those creative people at GM. He dreamed and tried new things and was years ahead of his time. He inspired his workers through his personal actions and beliefs. Jack’s first priority was to protect his workers and he had one of the most protected and fully funded retirement programs in the industry. He also didn’t ask the government for bailouts or loans. In fact, despite his advisor's wishes, Jack wouldn’t even take development money but rather, would absorb the huge costs of developing new technology rather than allow ignorant government officials to be involved and hinder progress. Because of this, Northrop was overlooked repeatedly by the Air Force and others were chosen who played the government game. Jack Northrop’s "Flying Wing" was determined to be too drastic from conventional design and ignored for future consideration.
Jack was on his death bed in the early 80’s when his executives arranged clearance for a special event. His sight, nearly gone, and laying on a hospital bed when the Northrop/Air Force team came into the room with a small covered tray. They put his hand under the cover and allowed him to feel the ever so secret contents. Rumor has it that a tear ran down Jack’s cheek and he faded off to sleep. Some 50 years after its original concept, Northrop Corporation was awarded one of the largest defense contracts in history. Based on the Flying Wing concept plane of some 50 years earlier, the B-2 "Spirit" bomber remains the most advanced bomber in the world today and has revolutionized even the most recent aircraft designs. I stood in that lobby and took it all in. What heritage!!
The Corvette has long been the icon for development within GM. I wonder when GM sells off its "heritage" how long it will take before all of those who made it great will be forgotten. Duntov and Cole, Earl and Mitchell. Perkins, McClellan, and all of those groups who invented and revolutionized. Those world records and the racing heritage. All the individuals who came together to bring the most exciting launch of a vehicle in the history of the automobile. The ZR-1 Corvette.
So GM is now cleaning out the garages of the past and rather than place these vehicles on display at various organizations representing the heritage which kept them as the leader for some 100 years, GM will sell them at public sale, to be lost forever. I looked over the list of treasures which included many Corvettes. Funny thing. I didn’t see any Allantes, Azteks, Equinox’s or Torrents on the list.
Last time I went to Detroit I took a day to visit the Henry Ford Museum, an experience I highly recommend to anyone. I was amazed at the wealth of exhibits and information of a car company so rich in American history. They’ve done a good job explaining and displaying the great heritage of the Ford. Made me proud. And when I began to make the next day’s agenda, I looked at the phone book but somehow I couldn’t find the General Motors Museum…
Jim

[bobbyhi]

Jim,

Very well written. It is a sad story but oh so true. IMHO selling off the "Heritage" of GM is really a bad mistake. Thanks again for the article.

[GOLDCYLON]

Its sad really. well written response to the overall situation.

[cuisinartvette]

Guessing it may be a requirement in order for them to receive bailout money.

[Z Factor]

Thanks for the thoughtful article you posted. You are not alone in being dismayed at this proposed move by GM.

[xlr8nflorida]

Originally Posted by Z Factor

Thanks for the thoughtful article you posted. You are not alone in being dismayed at this proposed move by GM.

Are they getting auctioned at the BJ auction this month or some of the later shows?

[Gary Yarbrough]

I agree that it is sad to think these cars could go off the radar. Ever since I was in JR high and someone drove a stingray at every homecoming, I have been a corvette fan. Although I'm fairly new to the corvette scene as an owner, my dad bought me a GMC truck when I was 14. I still drive that truck 270K miles and 15 years later. That truck made me a GM supporter! I wish my son (now three) could see some of these cars. With the changes in technology that I imagine coming by the time he is driving, they will be even more special.

[tomtom72]

Thank you for sharing your thoughts on GM's issues. Jim! You're some wordsmith! Great point about the most dreaded words that an American businessman can ever hear..."Hi, I'm from the government, and we're here to help."

It's kind of like watching a friend have bad times & the mood is very glum. I feel for the people at GM. This has got to be depressing. I do really wonder if some one made GM sell the cars, or is it that they just figured a quick way to get cash?

[bb62]

I’m going to disagree with the thoughts here that this collection should not be sold. If anything, most of these vehicles should have been sold a long time ago. Consider the following:

• If visibility is a priority in maintaining customer interest in the brand, then this heritage collection is a failure in that it was rarely seen by the public. Even a recent article by AutoBlog titled their piece, “General Motors Heritage Collection: An amazing collection few will ever see!” Putting these cars out in the public eye will like bring more visibility than where they currently reside.
• For the fear that these cars will disappear by being hidden in private collections, this fear is overblown. Most of the famous GM vehicles out in public ownership actually vie for time in the public eye rather than escape from it. These owners want the vehicles to be known, if anything to enhance the value of their investment.
• Continuing on the prior line of thought, the most famous and valuable of Corvettes are already “in the public domain” so to speak. All five of the 1963 Grand Sports (easily worth about $5 million EACH) are privately owned. The oldest Corvette 1953 “0003” is privately owned as is the original prototype. The 1967 L88 LeMans Corvette is privately owned. This could be the most valuable production Corvette of all. The 1969 ZL-1 Corvettes are privately owned.
• Of the Corvettes to be sold, they seem to fall in the following categories:
  • Pace Cars
  • Engineering exercises
  • Styling exercises
  • First Builds
• Thus, of those being sold, many are ordinary cars while those that have the potential to be considered special (and I say potential because the fact that they have been locked up out of the public eye has LESSENED their historical value by not being well known) will be enhanced by increased visability.

[8upZR1]

I think bb62 is right on the money. Public circulation of these automobiles will have a positive effect on their value and recognition. Even if the only view the public gets is to see them change hand at auction for prices that are out of reach for most. Besides, its not like they are selling the original master drawings or rights to control their name or anything truely valuable.

I would think the #1 reason for GM to sell would be to alleviate the burden of storing and maintaining these cars as well as insuring them. I suppose they are insured, just in case. It costs $$ to keep a collection of that caliber in the condition its in & I dont think GM can afford that any more than they could afford to let the cars get dirty and fall into disrepair. Selling is probably the only option.