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Detroit News: GM may drop GMC and Pontiac

Old Apr 19, 2009 | 09:44 AM
  #61  
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Originally Posted by flowmotion
Actually killing Saturn and Pontiac makes it more difficult for GM to sell compact/subcompacts in huge numbers, so I'm not buying the "green agenda" angle.

My theory is that the whole Buick-Pontiac-GMC dealer combo is basically a dead-end. The government wants to GM to get out of the business of making two or three of everything.
Right! Could it be that the government is also believing that gas prices will not stabilize because of this downturn, and when the recession is over, and predictions for usage from China and India continue to turn true, gas prices will see huge increases again?!! It's all about viability and profitability. I think the gov't has looked at Toyota's and Honda's successful and profitable setup in the states, and beleives Chevrolet Motor Corp. would be better off without the volume and resource sucking need of another division and dealers to prop up. I am purely theorizing here, and I personally would like to see GMC and Pontiac stick around...........but I can see completely the counter-argument against them, and how it's hard to balance them in when they are in many ways wastes of time.
Old Apr 19, 2009 | 09:48 AM
  #62  
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Originally Posted by HAZ-Matt

Ah well. If I was in charge it would be Chevrolet, Pontiac, and Cadillac for North America. Pontiac would not necessarily be a full line, but i don't see why it would take a rocket scientist to have an exciting car lineup (visually and performance wise) that does not overlap with Chevrolet which would cater more towards mainstream taste.
being a pontiac fan, I can personally also see buick evolving into an Acura-type performance focused entry level luxury brand with exciting design. the riviera concept is one example of this, and the lacrosse could also be a very good to drive car. traditional mainstream cars in the field of chevrolet are already being asked to do so much, a basic level of performance is already a part of that too. still, it will hurt to see pontiac go and lose the affordable sports cars idea.....if it does end up leaving.
Old Apr 19, 2009 | 12:18 PM
  #63  
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Originally Posted by turbo200
being a pontiac fan, I can personally also see buick evolving into an Acura-type performance focused entry level luxury brand with exciting design. the riviera concept is one example of this, and the lacrosse could also be a very good to drive car. traditional mainstream cars in the field of chevrolet are already being asked to do so much, a basic level of performance is already a part of that too. still, it will hurt to see pontiac go and lose the affordable sports cars idea.....if it does end up leaving.
I agree and think that if they kept Buick that would have to be the role it would need to fill.
Old Apr 19, 2009 | 12:28 PM
  #64  
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I'm not sure about Buick emulating Acura. That's abit too on the sporty end for Buick, I think.
Old Apr 20, 2009 | 02:17 PM
  #65  
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Blind is as blind does

Originally Posted by guionM
Yeah, it's gotten pretty ridiculous.... almost to the point of being actually pretty funny because they act like General Motors was running like an extremely well oiled, profit making machine, and knew what they were doing all along.

But along comes, big bad Obama and his "Wicked Army of Automotive Darkness®" whose only purpose in life is to dictate everything on how our car companies will run, "ORDERING" General Motors to drop Pontiac and GMC.... as if the President himself is sitting in the boardroom giving orders.
Maybe if you guys would read the articles, you would see that THE AUTHOR is the one saying that, not some arm chair quarterback on a forum.

As for government involvement, again, if you didn't get the memo, General Motors Corperation ran itself into the ground December 31st 2008 when they ceased to function on their own money.
That's debatable at best... GM was doing okay until the lack of government regulation on Wall Street undercut their business by 60%.

(And before you even start, we all should know where I stand on GM management)

GM can AT ANYTIME can hand back the taxpayer money they have, and merge with anyone they want to, gain any loans from anyone who will lend it to them, and sell any bonds on the market they want to and raise cash.
Yeah, okay....

Some seem to strangely feel that the government should simply hand over taxpayer money without any questions or influence.... something every single lender, stockholder, or bondholder has a full 100% right to do.
Why not? That mindset worked for the banks... And I couldn't care less if I'm spending taxpayer money on a company that I love.

or look at where the company ended up with those guys and still think that a group of financial experts, bankruptcy experts, with input by 2 top level, fortunes-from-scratch billionaires aren't a better choice for determining what it will take for these companies to survive (many of their conclusions have been echoed by members on this very board since I joined nearly 10 years ago)...
So, you think a government committee will do a BETTER job of running GM than the current idiots in charge? LOL.... Keep dreaming.
Old Apr 20, 2009 | 02:21 PM
  #66  
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Originally Posted by HuJass
The quote you put up says nothing about Obama, his administration, or the auto task force TELLING GM to get rid of GMC & Pontiac.
They QUESTIONED the need for the two divisions (that word was used twice in the quote along with "looked at") but nowhere does it say "they TOLD GM to axe GMC and Pontiac".
You guys are reading stuff into these statements.
LMFAO...

And you guys call US the ostrich brigade?

When the government QUESTIONS something, it's usually as good as done.
Old Apr 20, 2009 | 02:25 PM
  #67  
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Originally Posted by HAZ-Matt

GMC is more or less completely worthless since their entire line are nearly 99% the same as the Chevrolet versions.
Are you kidding? So you want to make GM profitable by killing what is probably it's most profitable division?

It doesn't matter that it's a "rebadge" It WORKS (unlike most "rebadges" and makes a lot of $$$)
Old Apr 20, 2009 | 03:54 PM
  #68  
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No. GMC development isn't done for free and you end up with something that isn't really different enough to be from a different division as opposed to a different level of trim on the original vehicle. You could invest half of that money into making the Chevrolet lines better and you can consolidate advertising funds.

In short what I am saying is that if you focus on the Chevrolet lines then your total profitability could be greater than what they have now when you average Chevrolet with GMC.
Old Apr 20, 2009 | 07:33 PM
  #69  
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Originally Posted by FUTURE_OF_GM
Are you kidding? So you want to make GM profitable by killing what is probably it's most profitable division?

It doesn't matter that it's a "rebadge" It WORKS (unlike most "rebadges" and makes a lot of $$$)
You're only looking at part of the picture. GMC could not survive on it's own without a bunch of Pontiac Vibes on the same lot. What is the total future profitability of the Pontiac-Buick-GMC "full line"?

Furthermore, look at GMC's crossovers. They have completely unique styling and are not simple "cheap" rebadges like the pickups. As time goes on it will become more and more expensive to develop product for GMC.

Don't get me wrong, I think GMC is a valuable brand. However IMO GM needs to position it as an upmarket alternative to Chevrolet and get out of the "same truck-different dealership" mentality.
Old Apr 20, 2009 | 09:49 PM
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Honest to god story....

My father in law WOULD not buy a Chevy because he had a Vega or something back in the 70's that blew up. When I met my wife, he drove an early 90's F-150, her mom drove a Highlander, her brother drove a Tacoma, and my wife drove a Rav4. You get the idea.

Well me..I buy GM cars so..after he saw new GM cars were nice and his opinion changed. So 3 years ago he needed to replace his F-150. He wanted a new F-150, but they would not budge on the price..so he looked elswhere. The Tundra was still small and girlie then so he skipped over that. I offered to get him in with our Chevy dealer who we buy our cars from..because we know the GM..and he wanted no part of it. Instead he went and bought a GMC Sierra from a dealer down the street.

I was like WTF? His reply was he simply did not want a Chevy and thought the GMC was a little nicer. My father in law is pretty smart, and fits right in with you average truck driver. From the day he bought that truck..I understood exactly why GMC exists.
Old Apr 21, 2009 | 07:14 AM
  #71  
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Originally Posted by formula79
Honest to god story....

My father in law WOULD not buy a Chevy because he had a Vega or something back in the 70's that blew up. When I met my wife, he drove an early 90's F-150, her mom drove a Highlander, her brother drove a Tacoma, and my wife drove a Rav4. You get the idea.

Well me..I buy GM cars so..after he saw new GM cars were nice and his opinion changed. So 3 years ago he needed to replace his F-150. He wanted a new F-150, but they would not budge on the price..so he looked elswhere. The Tundra was still small and girlie then so he skipped over that. I offered to get him in with our Chevy dealer who we buy our cars from..because we know the GM..and he wanted no part of it. Instead he went and bought a GMC Sierra from a dealer down the street.

I was like WTF? His reply was he simply did not want a Chevy and thought the GMC was a little nicer. My father in law is pretty smart, and fits right in with you average truck driver. From the day he bought that truck..I understood exactly why GMC exists.


There are more people like this out there than there are not.
Old Apr 21, 2009 | 07:34 AM
  #72  
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One of the salesmen at the Pontiac dealer I used to work at will only buy GMC trucks. He REFUSES to buy a Chevy, claiming a Chevy is too downmarket for him. No comment.

I don't get his family, anyway. His father is part owner of the Pontiac dealership...when his wife wanted a new car to replace her Aurora, nothing Pontiac makes now is big enough. So, rather than go down the street to the Buick dealer and buy a Lucerne, they went and bought an Acura RL!! When I questioned their son, he said that his parents could not, "in good conscience," go to a dealer in their hometown that they'd competed against for 50 years and buy a car. How could they show their face around town?

Meanwhile, they drive to a metro ACURA dealer to buy a car????? GM made this family wealthy for over 50 years, and they repay the favor by buying an ACURA???? Bottom line?

People are stupid. Keep GMC.
Old Apr 22, 2009 | 02:08 PM
  #73  
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Originally Posted by HAZ-Matt
No. GMC development isn't done for free and you end up with something that isn't really different enough to be from a different division as opposed to a different level of trim on the original vehicle. You could invest half of that money into making the Chevrolet lines better and you can consolidate advertising funds.
So you seriously don't think that Chevrolet selling hundreds of thousands of GMT900s doesn't essentially cancel out the cost of GMC grilles and badging?

Not to mention; you don't think the premium price of the GMC Denali line (A line who's buyer has a higher average income than Escalade buyers) cancels out the small amount of development cost for the division?

In short what I am saying is that if you focus on the Chevrolet lines then your total profitability could be greater than what they have now when you average Chevrolet with GMC.
GMC buyers WILL NOT buy Chevy trucks. GMC is the ONE division in which GM's brand management has been FLAWLESS. Despite being the same thing as a Chevrolet, the market accepts the vehicles as premium (which they are, to an extent)

Originally Posted by flowmotion
You're only looking at part of the picture. GMC could not survive on it's own without a bunch of Pontiac Vibes on the same lot. What is the total future profitability of the Pontiac-Buick-GMC "full line"?
I'd say VERY as long as Buick is aligned with Opel and given adequate marketing. (which is the problem right now... MARKETING)

Furthermore, look at GMC's crossovers. They have completely unique styling and are not simple "cheap" rebadges like the pickups. As time goes on it will become more and more expensive to develop product for GMC.
And as time goes on, GM can continue to fulfill it's plan of moving GMC upmarket to compensate for that. ESPECIALLY in crossovers.

Don't get me wrong, I think GMC is a valuable brand. However IMO GM needs to position it as an upmarket alternative to Chevrolet and get out of the "same truck-different dealership" mentality.
I agree.

Originally Posted by Jason E
One of the salesmen at the Pontiac dealer I used to work at will only buy GMC trucks. He REFUSES to buy a Chevy, claiming a Chevy is too downmarket for him. No comment.
What's wrong with that?

Given the current 900s, I'd buy a GMC but not a Chevrolet...

I don't understand why people pass judgement about this. It's a $30,000 purchase. If I want to be so picky as to want different sheet metal, then isn't that my right?

Why do Lexus owners buy a Lexus when a Toyota will suffice? Why will an SRX buyer exist when the Equinox can get the job done?
Old Apr 22, 2009 | 03:41 PM
  #74  
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Originally Posted by FUTURE_OF_GM
I don't understand why people pass judgement about this. It's a $30,000 purchase. If I want to be so picky as to want different sheet metal, then isn't that my right?

Why do Lexus owners buy a Lexus when a Toyota will suffice? Why will an SRX buyer exist when the Equinox can get the job done?
If you don't see where the jump to a GMC is A LOT closer than the jump from a Toyota to a Lexus, then I don't know what else to say here
Old Apr 22, 2009 | 04:11 PM
  #75  
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Originally Posted by Jason E
If you don't see where the jump to a GMC is A LOT closer than the jump from a Toyota to a Lexus, then I don't know what else to say here

Not if the Lexus is an ES.

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