Let's play Survivor: Overlapping Model Edition...
The latest whispers have GM chopping overlapping models rather than entire brands. This begs the question, which models should/will go?
Here's the breakdown as I see it:
Small cars:
G5
Cobalt
Astra
Vibe
The pressure is low in this segment because it is growing. Nevertheless, the G5 should disappear. With the upcoming Cruze slated for Lordstown, there will be no more pressure from the UAW to try and artificially amp up production at that factory. Pontiac dealers meanwhile, might be content with the new Vibe, which is doing better than the half-assed G5 anyway.
Here's the breakdown as I see it:
Small cars:
G5
Cobalt
Astra
Vibe
The pressure is low in this segment because it is growing. Nevertheless, the G5 should disappear. With the upcoming Cruze slated for Lordstown, there will be no more pressure from the UAW to try and artificially amp up production at that factory. Pontiac dealers meanwhile, might be content with the new Vibe, which is doing better than the half-assed G5 anyway.
I think the Astra should die since it's 1) Old 2) ****ty relative to it's price and 3) doesn't/can't sell worth a damn.
Mid-size:
Mailbu
G6
Aura
LaCrosse
Impala
The LaCrosse is far along on its redesign, despite poor sales. I thought the same was true for the Aura until I saw this story on GMInsideNews. If true, the Aura could be vulnerable. It's a great car (my mother drives an XR), but it's just not selling. What's more, it might not fit at Saturn, which has a real identity crisis on its hands right now.
Mailbu
G6
Aura
LaCrosse
Impala
The LaCrosse is far along on its redesign, despite poor sales. I thought the same was true for the Aura until I saw this story on GMInsideNews. If true, the Aura could be vulnerable. It's a great car (my mother drives an XR), but it's just not selling. What's more, it might not fit at Saturn, which has a real identity crisis on its hands right now.
My assumptions have been similarly challenged on the G6. It has long seemed the odd man out, with no planned replacement. And yet, it keeps selling - up 26 percent retail this month. Rick Wagoner even noted it in his e-mail to management last week. This sets up an interesting possibility: could Pontiac feasibly get the Opel rather than Saturn? It's far fetched, but nothing is impossible at this juncture.
Full-size:
DTS
STS
Lucerne
G8
My oh my how things have changed. Remember a year ago when the full-size segment was going to be flooded with an army of Zeta sedans? Now it seems only one has staggered ashore. The G8 is doing reasonably well. I guess its future depends on CAFE and the exchange rate between the Australian and American dollar.
STS seems safe - Cadillac is a core brand and will complete in every segment. DTS though, is looking increasingly out of place in Cadillac's new showroom. I bet Lucerne can take over most of the DTS sales, but that doesn't necessarily mean that car should continue either. The G-Body is very old and might not be worth real updating, especially if the stretched Epsilon II cars start grabbing these sales.
DTS
STS
Lucerne
G8
My oh my how things have changed. Remember a year ago when the full-size segment was going to be flooded with an army of Zeta sedans? Now it seems only one has staggered ashore. The G8 is doing reasonably well. I guess its future depends on CAFE and the exchange rate between the Australian and American dollar.
STS seems safe - Cadillac is a core brand and will complete in every segment. DTS though, is looking increasingly out of place in Cadillac's new showroom. I bet Lucerne can take over most of the DTS sales, but that doesn't necessarily mean that car should continue either. The G-Body is very old and might not be worth real updating, especially if the stretched Epsilon II cars start grabbing these sales.
Small SUV's:
Equinox
Torrent
Vue
Kill the Torrent and Vue.
Equinox
Torrent
Vue
Kill the Torrent and Vue.
Crossovers:
Traverse
Outlook
Enclave
Acadia
Kill the Outlook and Acadia. Outlook is wrong for Saturn and is not selling. Acadia and Enclave are selling in the same showroom - a total waste. Had you asked me before they came out which one should die, I would have said Enclave; however, the Buick has proven itself on the market.
Traverse
Outlook
Enclave
Acadia
Kill the Outlook and Acadia. Outlook is wrong for Saturn and is not selling. Acadia and Enclave are selling in the same showroom - a total waste. Had you asked me before they came out which one should die, I would have said Enclave; however, the Buick has proven itself on the market.
What will be interesting is the new Cadillac Lambda and how it will fit in (rolls eyes, I know, right?)
Full-size trucks/SUV's
Escalade
Silverado
Sierran
Tahoe/Suburban
Yukon/Yukon XL
H2
Leave GMC as is for now. These rebadges require very little from GM and do continue to sell. If its sales fall even further, I say cut them down to just Denali. Cadillac can't lose the Escalade - it's the vehicle most responsible for the brand's resurgence. Hummer is a separate issue for now, as it is under review.
Escalade
Silverado
Sierran
Tahoe/Suburban
Yukon/Yukon XL
H2
Leave GMC as is for now. These rebadges require very little from GM and do continue to sell. If its sales fall even further, I say cut them down to just Denali. Cadillac can't lose the Escalade - it's the vehicle most responsible for the brand's resurgence. Hummer is a separate issue for now, as it is under review.
The H2 should either be re-engineered asd a masterpiece of efficiency or it should be killed in favor of the HX and H3.
Last and least, there's the Sky/ Solstice. Strangely, I think both of these have a reason to exist. The Solstice is the heart of the Pontiac brand right now, representing the sole product that was conceived, developed, and executed as a Pontiac. Meanwhile, the Sky design offers global sales, and the inexpensive 4-cylinder sports car suits Saturn's image as well.
Any other views? Of course, this is all mute if GM fails to live up to this commitment, as it always has in the past.
Any other views? Of course, this is all mute if GM fails to live up to this commitment, as it always has in the past.
1) Leave the Sky as long as the demographics are different. 2) If the demographics cross over, kill the Sky and give saturn a smaller sporty car. Make the next Solstice more "Sky-like"
I agree...
Or if the segment pulls enough volume to support different models.
Like mid-size sedans. GM should have 2 or 3 entries in that segment IMO, to better cater to individual needs of certain segments of customers in the segment.
GM could REALLY use its divisions to its advantage if they would just grasp the concept of focusing them to cater to certain niches and segments of the market.
It basically means that GM could better tailor or customize its entries to customer needs which would result in better, more profitable sales.
GM's small cars are up for a big shake up . 2009 is the last year for the G5 and its not getting replaced with a new Delta2 car . By 2010 the only US delta2 vehicles should be Cruz , HHR on delta1 , new Astra , and Saab 9-1 . If it follows thru , Pontiacs new small 4-door sedan with be a RWD Alpha car . And if I understand it correctly chevy will have a micro-compact below the Sub-compact Aveo . Lots of difference , with little overlap looks whats coming in the real near future .
Like the ES300 is to Camry , the Lacrosse can be upmarket enuff to make it viable .
If Pontiac intends to stick to original brand mission , which was anyways ...a low volume niche( <-- is not about practical or high volume ) brand of desireable vehicles on the sporting side ....the G6 and Vibe really have no place . They "could" build a brand out of 2 platforms and have full pallete of desireable cars that sold at lower volumes . Solstice hardtop , Solstice vert , Alpha sedan and a alpha hatch or wagon , G8 , G8 coupe , G8 ST and G8 wagon .
The Vue sells to well to mess with it .
I think the 2-mode version should be left Chevy though and the Saturn should get a diesel and be more like its German platform mate powerplant wise .
http://www.streetinsider.com/Press+R...e/3785983.html
GM cars did very well last month. Pontiac, Saturn, and Chevy. It's the trucks/suv's that are tanking. GM needs to adjust to the market, build better, smaller, more fuel efficient cars, and build less trucks. No need to kill any brands whatsoever (except maybe hummer.) Trim the SUV/truck production to match demand, get some small efficient cars (PRONTO, NOT 2012) and keep building cars like ths CTS and Malibu.
Why does everyone think killing brands will solve GM's problems? As has been stated... rebadges are relatively cheap and if they're selling.... why ruin a good thing?
Look at Toyota, they're not "trimming the fat" they're expanding. Toyota, Scion, Lexus, now there's talk of a "Prius" brand with it's own line of vehicles.
GM cars did very well last month. Pontiac, Saturn, and Chevy. It's the trucks/suv's that are tanking. GM needs to adjust to the market, build better, smaller, more fuel efficient cars, and build less trucks. No need to kill any brands whatsoever (except maybe hummer.) Trim the SUV/truck production to match demand, get some small efficient cars (PRONTO, NOT 2012) and keep building cars like ths CTS and Malibu.
Why does everyone think killing brands will solve GM's problems? As has been stated... rebadges are relatively cheap and if they're selling.... why ruin a good thing?
Look at Toyota, they're not "trimming the fat" they're expanding. Toyota, Scion, Lexus, now there's talk of a "Prius" brand with it's own line of vehicles.
Thank you very much! You are a smart man! The talk of killing brands is absurd and driven by an anti-Detroit, blood thirsty media.
GM needs to figure out how to get the product right before it screws with the brands again.
1) The G6 has a replacement (MCE) on the way 2) Alpha was supposed to replace G6 until GME got invovled. 3) GME wants Pontiac dead, so they'll never get the Opel. GME wants Satrun to replace Pontiac, despite the fact that Saturn 1) Is falling on its face in the market with all new product and 2) Still can't sell the numbers Pontiac can while Pontiac has transitioned its ENTIRE line up, has blatant outdated cars and chevy rebadges and is losing share/downsizing.
I really wouldn't be surprised to learn some studio is frantically trying to integrate twin ports into the Insignia's front fender (to the Europeans' dismay and disgust).
1) The G6 has a replacement (MCE) on the way 2) Alpha was supposed to replace G6 until GME got invovled. 3) GME wants Pontiac dead, so they'll never get the Opel. GME wants Satrun to replace Pontiac, despite the fact that Saturn 1) Is falling on its face in the market with all new product and 2) Still can't sell the numbers Pontiac can while Pontiac has transitioned its ENTIRE line up, has blatant outdated cars and chevy rebadges and is losing share/downsizing.
There are 5 Saturn dealers in DFW. 2 of them are over 20 miles away.
There are 10 Pontiac dealers less than 20 miles away.
How can Saturn sell at the same volume as Pontiac with far less dealers?
How do you expect Saturn to sell at the same numbers as Pontiac with far fewer dealers? Saturn has about 450 US dealers. I haven't found the number of Pontiac dealers, but I live in DFW (Irving), lets compare.
There are 5 Saturn dealers in DFW. 2 of them are over 20 miles away.
There are 10 Pontiac dealers less than 20 miles away.
How can Saturn sell at the same volume as Pontiac with far less dealers?
There are 5 Saturn dealers in DFW. 2 of them are over 20 miles away.
There are 10 Pontiac dealers less than 20 miles away.
How can Saturn sell at the same volume as Pontiac with far less dealers?
Why again, did GM give them an all new lineup?
, and invest in an already established brand.
But the whole argument kinda misses the point that GM can't support the number of models it has and therefore has to play "russian roulette" with their product updates.
And for some reason people accept that and get into this "my brand rules, your brand sucks" mode. Every brand should have a reasonably new lineup all of the time, and it if doesn't, that signifies deep trouble.
Of course you could argue that Pontiac has an underperforming dealer network, poor reputation, and bad demographics, and therefore does not deserve new product either.
But the whole argument kinda misses the point that GM can't support the number of models it has and therefore has to play "russian roulette" with their product updates.
And for some reason people accept that and get into this "my brand rules, your brand sucks" mode. Every brand should have a reasonably new lineup all of the time, and it if doesn't, that signifies deep trouble.
But the whole argument kinda misses the point that GM can't support the number of models it has and therefore has to play "russian roulette" with their product updates.
And for some reason people accept that and get into this "my brand rules, your brand sucks" mode. Every brand should have a reasonably new lineup all of the time, and it if doesn't, that signifies deep trouble.
I don't think GM understood that in giving Saturn all this new product, they would basically have to introduce the brand to the American public.
Not that I wouldn't love to see Pontiac as a performance division.
Somehow, GM looked at their second highest volume car division and thought they could make a neato niche brand out of it. Performance cars are great and everything, don't get me wrong, but it's Grand Am's and Grand Prix's that pay the bills, and somehow GM forgot that. Let's hope they remember now.
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