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Government tells GM- Plan for June 1st Bankruptcy....

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Old Apr 15, 2009 | 05:11 AM
  #61  
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Originally Posted by formula79
Why does everyone think you a can shrink yourself better? This idea is what got GM here in the first place. The "Oh we will just cut out the Grand Prix to save development money and hope those people buy Impala's and G6's instead" mentality DOES NOT work. Grand prix buyers are now buying Nissans and Mazdas's.

In reality, when you sell less cars..your cost per unit actually goes up because of underutilization, and the loss of economies of scale. For instance, GM will pay a lot less for steel if it is moving 300,000 cars a month than it will moving 100,000. If a new car platform runs $1 billion dollars.....what makes more sense..engineering 3 models off it and selling 300,000 units or engineering 4 models and selling 400,000 plus. Once the platform is built the money to badge engineer is a drop in the bucket (why the Camaro was done so cheap).
You CAN shrink yourself better. There are numerous examples of companies that have done so. One good example would be International Harvester (now Navistar).

Besides, Toyota outsells GM with far fewer models.

It may take a small amount of cash to badge engineer a separate model off of the same platform. But then you have the stigma of badge engineering which hurts you. You end up stealing just as many sales from the original model as you do from the competition. Also, if you had used the badge engineering money to continually refine the original model, you can keep pace or ahead of the competition, boosting sales.
Old Apr 15, 2009 | 09:02 AM
  #62  
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Originally Posted by teal98
The premise makes no sense to me. Who's forcing GM to give up 5 points of share?

The road to recovery is through building vehicles that can be sold profitably. A proper treatment of that subject is way too detailed for this forum, and would require much more study than probably any of us have given the subject.
The government through elimination of brands.

Do you really think that, in this market (highly competitive and only to get more so) a DAMAGED GM with DAMAGED brands will GAIN share? Especially 5 points?!
Old Apr 15, 2009 | 09:14 AM
  #63  
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Originally Posted by rlchv70
...Also, if you had used the badge engineering money to continually refine the original model, you can keep pace or ahead of the competition, boosting sales.
I think that's a key.
Old Apr 15, 2009 | 09:53 AM
  #64  
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Originally Posted by rlchv70
It may take a small amount of cash to badge engineer a separate model off of the same platform. But then you have the stigma of badge engineering which hurts you. You end up stealing just as many sales from the original model as you do from the competition. Also, if you had used the badge engineering money to continually refine the original model, you can keep pace or ahead of the competition, boosting sales.

I see it exactly the same way.
Old Apr 15, 2009 | 10:21 AM
  #65  
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I don't think all rebadges are bad, as long as they aren't american market rebadges. Obviously the opels and holdens of late have been pretty good cars.

Now in keeping with that idea, does anybody have any idea how the rest of GM besides GMNA is going to fare in the bankruptcy? For example, what does holden become post-BK? I have to admit i can't even imagine how complicated bakruptcy and reorganization is for an international company, especially when the international arms are some of the strongest.

The real question i'm most interested in is, after bankruptcy and the likely loss of pontiac, will we still be able to get a holden rebadge somewhere else, or will holden imports be dead? Or even more intriguing, could holden 'buy' pontiac as a marketing/storefront only and use them as a NA distributor?
Old Apr 15, 2009 | 11:47 AM
  #66  
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Badge engineering is ok when you have brands that aren't sold locally and want capitalize on the products, e.g. Opels sold as Buicks and Holdens sold as Pontiacs in North America. However when you can buy the same car within a block of each other on auto row as either a Chevrolet, Saturn or Pontiac... then it doesn't make sense and does steal sales from one another.
Old Apr 15, 2009 | 12:03 PM
  #67  
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Not to mention stealing marketing dollars trying to promote cars like the G6 and Aura when that should be going to Malibu advertisements.
Old Apr 15, 2009 | 12:49 PM
  #68  
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Again I ask..how many Grand Prix buyers are buying Impalas?
Old Apr 15, 2009 | 12:54 PM
  #69  
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Originally Posted by formula79
Again I ask..how many Grand Prix buyers are buying Impalas?
If the Impala wasn't such a plain Jane appliance you might get a few looking to save a few bucks.
Old Apr 15, 2009 | 01:00 PM
  #70  
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Originally Posted by formula79
Again I ask..how many Grand Prix buyers are buying Impalas?
Avis doesn't really care one way or the other.

Like flowmotion said, the Grand Prix was dead as a retail prospect long before it was discontinued. It's really too bad. The 1997 car was the first great Grand Prix in a long, long time, but they got off track with the redesign. Had they stayed more true to what they'd establishes with the '97 and the "Wide Track" campaign, I think GP would still be with us.

I've said this before, and I'll say it again, but I think Pontiac (GM) listened too much to the car magazines and web sites, etc. that endlessly bitched about "body cladding and boy racer styling." When those elements were phased out was when Pontiac really started losing sales. Most Pontiac buyers want agressive look at me styling.
Old Apr 15, 2009 | 01:23 PM
  #71  
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Originally Posted by Eric77TA
When those elements were phased out was when Pontiac really started losing sales. Most Pontiac buyers want agressive look at me styling.
Perhaps. On the flip side...

How many GP owners were afflicted with leaking VCs and / or the intake coolant / oil leaks? All the while people are telling them that the 3.8 is the most bulletproof engine ever. Thus they are led to believe that the leaking sieve 3.8 is the best engine GM ever built so they better run, not walk, to their neareast honyotasanda dealer at replacement time.

Also, cladding or not, the W-body has been way overdue for a replacement for a long time. So not only do the engines leak, but they also drive like barges. Oh yeah, and the brake rotors warp if you look them funny.

How about the GA owners and the ridiculous leak machine that was the 3400 V6? Seriously, think about that. The 2 most popular pontiac models from their last real success were also saddled with leaky engines that can eat themselves if you don't check your oil for coolant often.
Old Apr 15, 2009 | 02:57 PM
  #72  
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My friend has a 2007 Pontiac Grand Prix, with 57K miles on it.

It is a complete POS.

The heater does not work, yet, you can hear water sloshing in the dash, when you turn corners. The check engine light comes on all the time, and it runs like garbage. It leaks all over the place.

She hates it, can't depend on it, and hates Pontiac because of it.

I was really surprised, because I thought a 2007 would be a decent car.
Old Apr 15, 2009 | 03:44 PM
  #73  
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Go back to 1997-2000 though and the GP was a very hot car..it STILL has a great following. I worked at Avis in 2000ish and it was VERY rare to see a GP in the fleet. The issue is GM's lame 2004 redesign made the car polarizing and turned off a lot of people. It also honestly had too much power for a FWD car. With mine..seemed like I peeled tires all the time just pulling into traffic.
Old Apr 15, 2009 | 03:46 PM
  #74  
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My main problem with Badge engineering is that a lot of the same people work on the "different cars". If GM gave each brand an identity and allowed them to come up with some of their own chassis and borrow chassis from the other groups while choosing from commonly developed engines (they are general motors after all) I think they could have two cars on the same platform with significant differentiation and actually make money at it and have different products that attract different buyers. All GM ever really does is style them slightly different.
Old Apr 15, 2009 | 04:26 PM
  #75  
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Originally Posted by formula79
Again I ask..how many Grand Prix buyers are buying Impalas?
The more important question is how many people are buying Grand Prixii?

Make the Chevy better so the bread and butter cars sell more with less money on the hood, and GM has more money to continue making the niche cars most of us love.



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