What GM should look like

by Peter M. DeLorenzo

http://www.autoextremist.com/page2.shtml#Rant

Detroit. Anyone who has read this column from Day One (June 1, 1999) has become quite familiar with my phrase "too many models, too many divisions, too many dealers" in describing the ultimate source of GM's problems today. The company is simply configured for a bygone era that will never happen again. And with the pressures of the global economy continuing to ramp up on the U.S. auto market, GM's share of the market will probably shrink even more before it posts a meaningful increase again. But in identifying GM's fundamental problem, I'm also exposing the fundamental reasons why GM may never be able to pull out of its downward spiral. The company cannot change with an executive leadership grown from within its ranks, because those executives will never be able to look at General Motors objectively. There is too much loyalty to residual fiefdoms that no longer exist, too many ingrained notions on what GM was, as opposed to what it is now - and too many built-in mental obstacles getting in the way of the clear thinking necessary for GM to make substantive progress in today's market.

So, if I were running GM, what would it look like by, say, 2010?

First of all, Saab would be jettisoned, and Hummer would become part of Cadillac. I think Saab is actually a decent car, but GM has to start cutting somewhere. And there's no way Hummer needs to have its own divisional structure. I'd retain everything about the Hummer brand as it exists, but I'd do away with everything the customer doesn't have to see or care about. In other words, the divisional structure would be gone. Chevrolet and Saturn would continue to exist as divisions, while Buick and Pontiac would exist as individual nameplates for select segments only. Chevrolet would also become the truck division of GM, while GMC would go away. Dealers across the country will insist that can't happen, but I will get to the dealers later. For now, having both Chevrolet and GMC trucks with GM's market share plummeting is pure folly - and it can't and won't continue under my watch.

Right off the bat, the current GM regime couldn't deal with the changes I've just outlined because they go against the grain of their fundamental beliefs of what GM is. Too bad. What GM "is" today will be bankrupt by 2008, if not sooner, so let's move on.

How would the "DeLorenzo GM" play in the market? I'll give you a rough idea...

Passenger Cars

Entry: Chevrolet Aveo

Compact: Chevrolet Cobalt

Mid-Size: Saturn Aura

Full-Size: Chevrolet Impala (RWD)

Full-Size: Buick Electra 225 (RWD)

People Carriers/SUVs/Trucks

Entry: Chevrolet HHR

Minivan: Saturn

Larger Crossover: Saturn

Luxury Crossover: Buick Enclave

Work Vans, etc.: Chevrolet

Mid-Size SUV: Chevrolet Equinox

Large SUV: Chevrolet Tahoe/Suburban

Pickups/Work Trucks, etc.: Chevrolet

High-Performance/Luxury Cars (RWD unless indicated)

Entry Performance: Pontiac Solstice

High-Performance: Chevrolet Corvette

Luxury High-Performance: Cadillac XLR-V

Ultra High-Performance: Chevrolet Corvette ZO6, ZO6 Supercharged

High-Performance (2+2): Chevrolet Camaro

High-Performance (2+2): Pontiac Grand Prix

High-Performance Sedan: Pontiac Bonneville

Luxury High-Performance Sedan: Cadillac STS/STS-L/STS-V (RWD or AWD)

Ultra Luxury High-Performance Sedan: Cadillac DTS/DTS-V (RWD or AWD)

Luxury/Performance SUVs

Compact: Hummer H4

Mid-Size: Hummer H3

Mid-Size Luxury: Cadillac SRX

Full-Size Luxury: Cadillac Escalade/Escalade ESV

Full-Size: Hummer H2

There you have it - the DeLorenzo General Motors. Wait a minute, where's the rest of the company? Where are all the cars? What the hell? Well, would you miss them? My GM is not based on blanketing the market for the benefit of the existing divisional structure, or the dealer body that exists today. My GM is based on the premise of producing vehicles that are either equal to or exceed the best-in-class vehicles in whatever segment we choose to compete in.

This is what I envision it would take for the company to be its most competitive - and most profitable. Obviously you would need only half of the dealers that GM has today - if that. But that would be a realistic number given GM's shaky hold on 25 percent of the U.S. market.

Some will say that my take on GM is far too drastic and unrealistic - and I would say that unless GM gets realistic and makes the kind of drastic restructuring that I envision, they will not be able to avoid going Chapter 11.

Thanks for listening, see you next Wednesday.

I agree with the way they're thinking about it. No real use for GMC if it's nothing but a rebadged Chevy. Aztek should have never come out, and hopefully they dont make the same mistakes with no advertising like they did the 4thgen. These gay commercials for other models dont appeal too much to me. GTO was nice but cost too damn much. Also why have several different name brands if the most of the differences are in the nameplates and a few small cosmetic differences? If someone wants something slightly different and there's a market for it, offer the changes as an 'appearance package' or something, it would save money.

GM can only be so stubborn to not change the fundamentals which they were built for so long, until it eventually drives them bankrupt. *** cars are already starting to crowd the highway and they aren't any better than what domestics offer, but they dont make the mistakes GM does either so they're alot better off. If it were up to me, we wouldn't have any american-built 'imports', because from what I see, it's not helping us much, or detroit for that matter.

What Peter DeLorenzo has done, which very few seem to do, is define the entire product lineup under the changes!!!

I like what he has written. Sometimes the worst thing that any company can do is continue along the ways of its past... rescue plans often take drastic measures and I look to Nissan's revival as a valid example.

Good point. I like what he said as well, and that's the type of thinking GM needs to get hot on if they dont wanna end up bankrupt in the near future. Either someone is too stubborn to change the way they have GM does things, or they simply dont see the writing on the wall.

I certainly hope that they get these things fixed. Honestly I cant picture myself driving anything other than a GM product, but I may be forced to if they keep up the corporate stupidity. Of course that would be good justification to start restoring GM musclecars to drive around :D

Electra duece and a quarter.....


:blah:

Heh, I don't think you would need to kill Buick or Pontiac to make their entire lineups as he described.

Can Saturn sell enough Auras to justify a whole Epsilon plant?

Can Saturn sell enough Auras to justify a whole Epsilon plant?

That's the problem with GM. Whether its Saturn or Chevrolet or ... these cars should be selling at a rate of at least 250,000 cars/yr much like Camry/Accord, which sell at much greater numbers. GM shouldn't be relying on two/three cars of the same platform to sell at those numbers. Whether Saturn can shift that many Auras, time will tell... but on paper, Aura appears to be a great product and a serious attempt by GM to combat Camry/Accord.

I actually think thats too drastic. The one good thing about GM being the dinosaur that it is, is that the various resources do, or at least could allow them to do some original and niche vehicles because there parts bin is so huge.

This is my take on what it should look like, in the future when they are not broke.

I would leave Chevy as it is. Save an across the board redesign, and mid & fullsize RWD sedan. If possible I would like for those to exist with the current Impy and Monte, cause they make money.

I would also do Pontiac/Buick/GMC but perhaps a little more drastically. I understand why there needs to be SUVs between Chevy and Caddy but I don't really see why Chevy work trucks, need additional chrome and softer vinyl as GMC, I don't think each Chevy needs to be duplicated as a GMC just like each GMC doesen't need to be a Caddillac.

Pontiac and Buick would be essentially cars only, Pontiac would have a small IS type coupe/vert and sedan, the solstice, A GTO quad coupe :p and equivalent sedan. Then a big RWD/AWD bonnevilleand maybe a wagon in there somewhere. Buick would get Velite... and simply because they never happen a hardtopvert/sedan. Midsize sedan in RWD/AWD with a serious performance variant. And a big FWD land yacht like the foggies like. And a crossover or two.

And Caddillac of course needs a fullsize coupe, the ULS and a dedicated performance car. Like just the V no other letters, EVok would be nice but they could start with something more realistic.

I didn't think platforms all the way through but it doesent sound like that many to me.. Was gonna work it out but I really don't know enough about what does what...

Let me know if thats way off base.

[Edit] Oops forgot. Saab, Hummer and Saturn.

Admittedly they don't really work in my plan. I guess you could push Hummer into the Caddy dealers, since it makes money.

But like the article said, I don't think there is enough room between Chevy and Caddy for FOUR nameplates. Pontiac could used some forced induction SEs... so that catapults them into Saab's territory. Buick is already there. Saturn... I dunno. :shrug: Kill it? :confused:

Electra duece and a quarter.....


:blah:
lol!

I DO NOT think GM would want to go there.

That guy has a neat list but its just too drastic.

Some people have to have their pop. I need my sweet tea....