Detroit News: GM may drop GMC and Pontiac
Although I'm a "Chevy-guy" I've always preferred the looks of the GMC trucks. The exceptions are the early advance cab design series (1949-52), and the 2000-2002 800's. I can go either way with late 60's/early 70's trucks (1967-76), but other than those examples the GMCs have always been more refined and a little more elegant imo. (If a truck can be that.) My biggest gripe on most of the new trucks is I can't get a bench seat with the other options I like.
Imagine if the recession never hit, the Big 3 would be rolling in money with the trucks they have out now.
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.
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.
I'm sure what GM and the Autos task force are trying to do is figure out how many customers like this GM might lose, what the marginal profit is from each one, and how much it costs to keep that profit.
I won't pretend to know which makes the most money. You can see both types of lineups out there, though the simplified offerings are much more common.
I mean, sure you can blame 'marketing'. Let's all go find the marketing manager for the 1986 Skylark and blame that guy when it doesn't work. :P
The way I see it, GMC is viable as a stand-alone brand only if all of the following are true:
+ Pickup and fullsized SUV sales bottom out (maybe)
+ Buick manages to sell a wide range of products that aren't CUVs. (unlikely)
+ GMC establishes itself as a unique brand in the CUV market with significantly higher price points that Chevy. (maybe)
+ "General Motors" itself remains a viable brand. "Good GM" might have a different name. (maybe)
Or in an alternate scenario, GMC dies and "Good GM" launches a new "Denali" brand that complements Chevy dealers.
I'm sure what GM and the Autos task force are trying to do is figure out how many customers like this GM might lose, what the marginal profit is from each one, and how much it costs to keep that profit.
I won't pretend to know which makes the most money. You can see both types of lineups out there, though the simplified offerings are much more common.
I won't pretend to know which makes the most money. You can see both types of lineups out there, though the simplified offerings are much more common.
They have actual numbers to use.
Look at Oldsmobile.
GM lost sales almost exactly equivilent to what Olds was selling before they shut them down the following year(s).
Thats the thing. You cut brands like Pontiac, Olds, GMC, or Saturn...those sales are not coming back. If those people wanted Chevy's they would have bought them in the first place because they are normally cheaper. The idea that a Pontiac or Saturn buyer will switch to Buick is a falicy. It really is like cutting your arm off under the assumption a new one will grow back better and stronger.
The problem is when you kill the brand and then keep selling mediocre Chevrolets. If not in quality then in styling and available options. If you drop Buick but add some styling flair and a little more luxury available across the Chevrolet line you will attract the buyers.
Or if you look at GMC. All this die-hard GMC rhetoric is based on the reality that there is a GMC and a Chevy and the GMC's are nicer and have better styling. We know they are mechanically the same. So if you drop GMC and essentially make the Sierra into the Silverado but with a Bowtie all of the GMC buyers are going to buy Tundras? I doubt it. You would end up with essentially a Sierra that costs less at the low end and still has the same options available. Except that it is sold as a Chevrolet. And it would further strengthen the Silverado brand.
I think Pontiac is slightly different in that they had somewhat of an enthusiast image that is hard to engineer into a bread and butter division like Chevrolet. I think you can attract those Pontiac owners to Chevrolet's with the right product, but you need some more styling flair and performance models in the showroom.
I think the Camaro is a good example. There are Firebird owners like myself that would consider buying one who would have never wanted a 4th Gen Camaro because it was really fairly bland, especially compared to the 4th Gen Bird. The 5th gen has the advantage of no Firebird to compete with it, but the design is so much better that it is desireable to people that are looking for a well styled vehicle. And if you look at the data, that is really why the Pontiac buyers by the Pontiacs over Chevrolets in the first place.
Or if you look at GMC. All this die-hard GMC rhetoric is based on the reality that there is a GMC and a Chevy and the GMC's are nicer and have better styling. We know they are mechanically the same. So if you drop GMC and essentially make the Sierra into the Silverado but with a Bowtie all of the GMC buyers are going to buy Tundras? I doubt it. You would end up with essentially a Sierra that costs less at the low end and still has the same options available. Except that it is sold as a Chevrolet. And it would further strengthen the Silverado brand.
I think Pontiac is slightly different in that they had somewhat of an enthusiast image that is hard to engineer into a bread and butter division like Chevrolet. I think you can attract those Pontiac owners to Chevrolet's with the right product, but you need some more styling flair and performance models in the showroom.
I think the Camaro is a good example. There are Firebird owners like myself that would consider buying one who would have never wanted a 4th Gen Camaro because it was really fairly bland, especially compared to the 4th Gen Bird. The 5th gen has the advantage of no Firebird to compete with it, but the design is so much better that it is desireable to people that are looking for a well styled vehicle. And if you look at the data, that is really why the Pontiac buyers by the Pontiacs over Chevrolets in the first place.
Last edited by HAZ-Matt; Apr 23, 2009 at 12:36 PM.
Last I heard, GM is selling Opel in the same way that Ford sold Mazda. They would still be an investor in the company, but possibly not the majority stakeholder any longer.
1) The jump from a Camry to an ES (one of Lexus top selling models) is essentially the same thing as a Chevy to GMC jump.
2) You're missing my point entirely. It wasn't meant to be a direct comparison.
My point is; if essentially the same product will provide the same results for everyone, then why even bother with luxury divisions or multiple divisions in general?
The key: MARKETING AND PERCEPTION. And this is something GM hasn't figured out for 20-30 years.
Personally, I'd buy a Pontiac before I'd buy a Chevrolet (despite my family currently owning 3 Chevies) I'd also buy a GMC before I'd buy a Chevy truck. See, it's the emotional aspect of the purchase that no one seems to understand. I identify with those brands OVER Chevrolet and that will DETERMINE my buying decision.
A good example of this is VW... Everyone knows that VW quality is sh*t, yet they buy the things in droves because they identify with the brand image.
Hence my Toyota to Lexus/Chevy to GMC comparison. People don't buy Lexi because they're better cars than Toyota. They buy them because the Lexus fits their image (or the image they strive for) better.
The average buyer IDENTIFIES (self concept) with Toyota and Honda. That's why, no matter how good of an APPLIANCE the cars from Detroit are, the buyers will NOT switch from the former brands.
That's why GM needs to attack the market with SOMETHING MORE. Design and aesthetics... Identity and image... That's the only way they'll win back buyers. And THAt'S why ALL of GM's divisions were such assets, if only the board knew how to manage them correctly.
ts a shame to...GMT-900's are great trucks..and my wifes Avalanche gets great milage.
Let's be honest. This whole idea that Buick is a great outlet for 'smaller' Opel cars is nothing but gambling and a complete lack of other options. GM is going out onto a very skinny limb here.
That's why I've been saying that unless GM can learn how to pull off a marketing MIRACLE (which isn't likely given the current craptastic marketing) Buick will follow Pontiac and Oldsmobile into the grave within 5 years.
I mean, sure you can blame 'marketing'. Let's all go find the marketing manager for the 1986 Skylark and blame that guy when it doesn't work. :P
GM can't get ANYTHING right with their marketing... Even the photos and footage of the products looks like it was bought, filmed and produced at Family Dollar.
The way I see it, GMC is viable as a stand-alone brand only if all of the following are true:
+ Pickup and fullsized SUV sales bottom out (maybe)
+ Pickup and fullsized SUV sales bottom out (maybe)
+ Buick manages to sell a wide range of products that aren't CUVs. (unlikely)
+ GMC establishes itself as a unique brand in the CUV market with significantly higher price points that Chevy. (maybe)
+ "General Motors" itself remains a viable brand. "Good GM" might have a different name. (maybe)
Or in an alternate scenario, GMC dies and "Good GM" launches a new "Denali" brand that complements Chevy dealers.
Chevy is now supposed to take up small cars from Saturn, niche performance cars from Pontiac and luxury trucks from GMC?!?!? In addition to one of the industries BIGGEST line ups as it is?
Last edited by FUTURE_OF_GM; Apr 23, 2009 at 04:44 PM.
Oh wait...
Taking what failed in Saturn dealerships and calling them Buicks does not seem sound.



