GM discussing axing another brand.
Well...Lets look at it.
Chevy, Caddy and Saturn all have had major investment recently, and continued support.
Buick sells well in China, so axing or selling off Buick would hurt GM's presence in the largest growing car market.
GMC sells high profit trucks, and while the truck market is dying off or at least settling back to normal levels, they are still very profitable if GM can work GMC into a continued truck company to make trucks for the people that need them, the professional grade people. Plus combined with 2 other brands, they could cut down on the cost of dealers.
Hummer is a brand full of high profit, high price suv's, but they get poor gas milage and are a big target for envromentalists as well as a big hurt on the upcoming CAFE requirements. But you cannot deny its presence and outlandishness of its designs. It could be worth a lot to someone.
The only brand that seems to be the bastard child is Pontiac. While it has gotten a few cars here and there, all could be put into other divisions or are already sold by other divisions. Pontiac has no global reach, but its still GM's #2 best selling division.
Chevy, Caddy and Saturn all have had major investment recently, and continued support.
Buick sells well in China, so axing or selling off Buick would hurt GM's presence in the largest growing car market.
GMC sells high profit trucks, and while the truck market is dying off or at least settling back to normal levels, they are still very profitable if GM can work GMC into a continued truck company to make trucks for the people that need them, the professional grade people. Plus combined with 2 other brands, they could cut down on the cost of dealers.
Hummer is a brand full of high profit, high price suv's, but they get poor gas milage and are a big target for envromentalists as well as a big hurt on the upcoming CAFE requirements. But you cannot deny its presence and outlandishness of its designs. It could be worth a lot to someone.
The only brand that seems to be the bastard child is Pontiac. While it has gotten a few cars here and there, all could be put into other divisions or are already sold by other divisions. Pontiac has no global reach, but its still GM's #2 best selling division.
Forgetting about Saab there, I guess?
But killing Saab would make too much sense... I mean, after all, what would drain GM's pockets if we killed Saab?
Hummer could definetly go. The products aren't at all unique they could just add a "Hummer" trim to a few GMC models.
To me, it makes sense to make Saab and Saturn a division. Just import the euro cars with Saab being slightly more upscale so that both can have character and avoid the overlap, but that would require a big cash infusion.
Pontiac and Buick, I don't know. GM won't and or can't increase Cadillac's price point so I don't see how you have room for two passenger car brands when neither one should have more than about three products.
To me, it makes sense to make Saab and Saturn a division. Just import the euro cars with Saab being slightly more upscale so that both can have character and avoid the overlap, but that would require a big cash infusion.
Pontiac and Buick, I don't know. GM won't and or can't increase Cadillac's price point so I don't see how you have room for two passenger car brands when neither one should have more than about three products.
Also, on the brand being eliminated thing, I think GM should merge GMC with Chevy and sell off Pontiac, Buick, and Saturn. Seeing as Cadillac and Chevy are the only ones that can move vehicles, mostly thanks to the travesty that they call marketing at GM.
If we're going to have a domestic Opel brand anyway, I'd rather see Saturn killed and Pontiac become that division.
Pontiac as a brand is gravely damaged, but still has some heritage which could be revived. Saturn OTOH, is and has always been an empty suit.
Pontiac as a brand is gravely damaged, but still has some heritage which could be revived. Saturn OTOH, is and has always been an empty suit.
Kill Saab and Saturn
Actually it makes more sense to axe Saab and or Saturn.
First, Saab is not a major player either here in North America nor abroad. They are not even very big in Europe. With a re-invigorated Cadillac I would much rather see luxury car development go there rather than a loser like Saab.
Second, Saturn was a big mistake from the beginning that never fully delivered. Add to that the fact it is a left-over from the Roger Smith era is enough to convince me to euthanize this brand. Also, when Chevy gets the Traverse then the only two models that Saturn would have that DON'T overlap with Chevrolet will be the Sky and the Astra. The Sky would make a nice Chevy Stingray and the Cobalt can take the place of the Astra anyway. Chevrolet was always GM's bread-and-butter brand and there is no sense in having Saturn take sales away from that.
First, Saab is not a major player either here in North America nor abroad. They are not even very big in Europe. With a re-invigorated Cadillac I would much rather see luxury car development go there rather than a loser like Saab.
Second, Saturn was a big mistake from the beginning that never fully delivered. Add to that the fact it is a left-over from the Roger Smith era is enough to convince me to euthanize this brand. Also, when Chevy gets the Traverse then the only two models that Saturn would have that DON'T overlap with Chevrolet will be the Sky and the Astra. The Sky would make a nice Chevy Stingray and the Cobalt can take the place of the Astra anyway. Chevrolet was always GM's bread-and-butter brand and there is no sense in having Saturn take sales away from that.
It's hard to say which brand could get the axe. GMC is certainly worst suited for the times, but it still moves far more units than either Pontiac or Buick, for much less of an investment. This could change, but right now, I don't see how the dealers would swallow losing the backbone of their sales channel.
On the other hand, Pontiac is the most damaged at the moment. G8 is their only new product, and it is not doing well. And yet, it has a much brighter future than GMC as a car dominant brand.
No matter how you look at it, these are scary times for General Motors. It's really possible that they don't make it through this one.
On the other hand, Pontiac is the most damaged at the moment. G8 is their only new product, and it is not doing well. And yet, it has a much brighter future than GMC as a car dominant brand.
No matter how you look at it, these are scary times for General Motors. It's really possible that they don't make it through this one.
The case for Buick-Pontiac-GMC
The problem for these brands is that then need greater differentiation from Chevrolet (Pontiac-GMC) or Cadillac (Buick).
Buick can be set up to compete against the Asian luxury brands while Cadillac takes on the Europeans. Unfortunately, Buick still need significant product offering to thoroughly compete against the likes of Lexus and Infinity - time and money will be needed for this.
Pontiac should truly be the "Excitement Division". Why can't GM figure out how to do this when it is so obvious? Pontiac does not need a Vibe nor does it need a G5. It also does not need this alpha-numeric nomenclature. The G8 is a nice car and should have been called the Grand Prix and build it in North America. They should also give Pontiac a version of the Holden 60 Coupe concept. How about a properly designed GTO? The G8 Sport Truck is an interesting idea/take on the whole crossover segment. Why not add a really cool looking wagon and try to get people into that instead of SUVs?
GMC - here is a division that suffers from a lack of identity. You could argue that GM should have given Hummer-like vehicles to GMC instead of creating the Hummer brand to begin with. Why not make GMC the ultimate off-road and professional grade division? Take the Hummer H2, H2T, H3 and H3T, give these vehicles GMC styling and let the BPG channel prosper without having a Hummer brand to feed product to.
Also keep in mind that what GM needs is fewer, more profitable dealerships. I don't think Buick and Pontiac dealers are going to like it if they can't sell some trucks. Perhaps the truck/SUV bubble has burst, but there will always be truck buyers.
Buick can be set up to compete against the Asian luxury brands while Cadillac takes on the Europeans. Unfortunately, Buick still need significant product offering to thoroughly compete against the likes of Lexus and Infinity - time and money will be needed for this.
Pontiac should truly be the "Excitement Division". Why can't GM figure out how to do this when it is so obvious? Pontiac does not need a Vibe nor does it need a G5. It also does not need this alpha-numeric nomenclature. The G8 is a nice car and should have been called the Grand Prix and build it in North America. They should also give Pontiac a version of the Holden 60 Coupe concept. How about a properly designed GTO? The G8 Sport Truck is an interesting idea/take on the whole crossover segment. Why not add a really cool looking wagon and try to get people into that instead of SUVs?
GMC - here is a division that suffers from a lack of identity. You could argue that GM should have given Hummer-like vehicles to GMC instead of creating the Hummer brand to begin with. Why not make GMC the ultimate off-road and professional grade division? Take the Hummer H2, H2T, H3 and H3T, give these vehicles GMC styling and let the BPG channel prosper without having a Hummer brand to feed product to.
Also keep in mind that what GM needs is fewer, more profitable dealerships. I don't think Buick and Pontiac dealers are going to like it if they can't sell some trucks. Perhaps the truck/SUV bubble has burst, but there will always be truck buyers.
Last edited by hotrodtodd74; Jun 20, 2008 at 10:50 AM.
Pontiac should truly be the "Excitement Division". Why can't GM figure out how to do this when it is so obvious? Pontiac does not need a Vibe nor does it need a G5. It also does not need this alpha-numeric nomenclature. The G8 is a nice car and should have been called the Grand Prix and build it in North America. They should also give Pontiac a version of the Holden 60 Coupe concept. How about a properly designed GTO? The G8 Sport Truck is an interesting idea/take on the whole crossover segment. Why not add a really cool looking wagon and try to get people into that instead of SUVs?
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There is very little evidence that Pontiac can move more expensive performance products.
I'd bet Pontiac would be a lot more successful positioned as an economy brand beneath Chevrolet. It would be a good place to put those minicars (Beat, Trax, etc). Kill the Aveo and sell it as the G3. Make the G5 a cheaper version of the Cobolt. The G6 and Vibe fit right in.
The G8 probably should have been badged as a Chevy in the first place.
I'd bet Pontiac would be a lot more successful positioned as an economy brand beneath Chevrolet. It would be a good place to put those minicars (Beat, Trax, etc). Kill the Aveo and sell it as the G3. Make the G5 a cheaper version of the Cobolt. The G6 and Vibe fit right in.
The G8 probably should have been badged as a Chevy in the first place.
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