johnsocal
06-05-2003, 10:29 PM
Old-school GM philosophy believed that people would start off buying an entry level Chevy (Saturn was the modern attempt of entry level vehicles) then move up to a larger Buick or a more sporty Pontiac, then move up to a more luxury/sporty Oldsmobile (before it was axed) before finally reaching the pinnacle of Cadillac.
The problem was that people like to stay with the same brand as long as they are happy with it .This brand loyalty has forced GM to share platforms with similiar bodystyles accross all of its brands since many Saturn or Chevy owners would never consider buying a Pontiac or a Buick and vice-versa. Many loaded Chevys are now in the price-range of entry-level Caddy’s which helped contribute to the death of mid-priced Oldsmobiles. The current trend is that most people purchase cars as long as they are under $30,000 and more and more people are leasing cars that are over $30,000 so they can drive a luxury car (status symbol) with the same monthly payment as a standard Chevy.
Within each GM brand it appears there will be the equivalent Chevy (entry-level), Pontiac (sporty), and Buick/Olds (semi-luxury) within each brand. Cadillac appears to be the exception since all Caddy's will either be luxury/entry-level, luxury/sporty, ultra-luxury, or ultra-luxury/sporty.
GM would most likely be better off with fewer brands but legal resposibilities to many in its dealer network would make it difficult and expensive to kill failing brands off. GM has also created a new brand like Hummer which is doing very well with its new H2 and with the smaller H3’s and even H4’s coming in the next few years it will give Jeep a run for its money for being the ultimate off-roading vehicle brand. It seems like Hummer has become what GMC couldnt, just when GMC was starting to become the Luxury brand for trucks and Suvs, GM decides to make trucks for Caddy , and thus making GMC the Buick/Olds of the truck industry.
Sometimes it appears the GM needs to do some “Creative Destruction” so they can create new brands by letting them form roots in the ruins and rubble of older and/or failed brands. Automotive brands are nothing more then the perception of all its cars in a collective. If you make great cars with unique features and designs then you will eventually make a great brand, but if GM continues to recycle the same old stuff and repackage it as new, then this philosophy will only lead to more failed brands and possibly the demise of GM itself in time.
The problem was that people like to stay with the same brand as long as they are happy with it .This brand loyalty has forced GM to share platforms with similiar bodystyles accross all of its brands since many Saturn or Chevy owners would never consider buying a Pontiac or a Buick and vice-versa. Many loaded Chevys are now in the price-range of entry-level Caddy’s which helped contribute to the death of mid-priced Oldsmobiles. The current trend is that most people purchase cars as long as they are under $30,000 and more and more people are leasing cars that are over $30,000 so they can drive a luxury car (status symbol) with the same monthly payment as a standard Chevy.
Within each GM brand it appears there will be the equivalent Chevy (entry-level), Pontiac (sporty), and Buick/Olds (semi-luxury) within each brand. Cadillac appears to be the exception since all Caddy's will either be luxury/entry-level, luxury/sporty, ultra-luxury, or ultra-luxury/sporty.
GM would most likely be better off with fewer brands but legal resposibilities to many in its dealer network would make it difficult and expensive to kill failing brands off. GM has also created a new brand like Hummer which is doing very well with its new H2 and with the smaller H3’s and even H4’s coming in the next few years it will give Jeep a run for its money for being the ultimate off-roading vehicle brand. It seems like Hummer has become what GMC couldnt, just when GMC was starting to become the Luxury brand for trucks and Suvs, GM decides to make trucks for Caddy , and thus making GMC the Buick/Olds of the truck industry.
Sometimes it appears the GM needs to do some “Creative Destruction” so they can create new brands by letting them form roots in the ruins and rubble of older and/or failed brands. Automotive brands are nothing more then the perception of all its cars in a collective. If you make great cars with unique features and designs then you will eventually make a great brand, but if GM continues to recycle the same old stuff and repackage it as new, then this philosophy will only lead to more failed brands and possibly the demise of GM itself in time.