Lutz on "selling off Hummer and Saab"
Lutz on "selling off Hummer and Saab"
..........see, it's easy for someone to say "well......sell off Saab and Hummer"...I mean, we all can agree that Jerry York is a very intelligent guy, right? The problem is it isn't that simple.
In an interview with Bob Lutz, Mr. Lutz had this to say about that:
"Lutz shot down several of York's recommendations, including singling out the elimination of the Saab and Hummer brands as unnecessary or unrealistic.
".............The Saab and Hummer brands are too integrated in the company, using GM parts and rolling down GM assembly lines, to ax them without vast cost penalties, he said. Killing the Oldsmobile brand, for example, cost GM about $2 billion and thousands of vehicle sales, Lutz said.
"It's like saying you have too many eggs in this omelette, would you take two out, please, and try to sell them?".........
I LOVE the way Bob Lutz can bring common sense into a discussion.........
In an interview with Bob Lutz, Mr. Lutz had this to say about that:
"Lutz shot down several of York's recommendations, including singling out the elimination of the Saab and Hummer brands as unnecessary or unrealistic.
".............The Saab and Hummer brands are too integrated in the company, using GM parts and rolling down GM assembly lines, to ax them without vast cost penalties, he said. Killing the Oldsmobile brand, for example, cost GM about $2 billion and thousands of vehicle sales, Lutz said.
"It's like saying you have too many eggs in this omelette, would you take two out, please, and try to sell them?".........
I LOVE the way Bob Lutz can bring common sense into a discussion.........
Re: Lutz on "selling off Hummer and Saab"
I could see saying GM has too many over lapping models, but not too many brands. If you got rid of HUMMER you would loose a very profitable niche. No other GM looks like a HUMMER, now if DCX wanted to buy HUMMER, that might not be a good idea.
Saab, HUMMER, and Buick are all brands that don't really need more than 4 vehicles. I could see Buick having only the LaCrosse, Lucerne, RWD Sedan, and Enclave. Hummer having H1, H2, H3, with SUT versions of each. and Saab with the 9-3, 9-5, 9-6/7 Crossover, and maybe a new 9-2 based on a AWD Delta or a niche car that has a European feel like a mini.
Saab, HUMMER, and Buick are all brands that don't really need more than 4 vehicles. I could see Buick having only the LaCrosse, Lucerne, RWD Sedan, and Enclave. Hummer having H1, H2, H3, with SUT versions of each. and Saab with the 9-3, 9-5, 9-6/7 Crossover, and maybe a new 9-2 based on a AWD Delta or a niche car that has a European feel like a mini.
Re: Lutz on "selling off Hummer and Saab"
Does this mean Oldsmobile has a chance of returning? All they needed was a 4-4-2 to get them out of their rut. Besides, big bodied cars are gonna make a comeback and they could be GM's sole big bodied car brand.
Last edited by number77; Jan 12, 2006 at 02:50 PM.
Re: Lutz on "selling off Hummer and Saab"
Originally Posted by number77
Does this mean Oldsmobile has a chance of returning? All they needed was a 4-4-2 to get them out of their rut.
Last edited by Blue89Bird; Jan 13, 2006 at 10:15 AM.
Re: Lutz on "selling off Hummer and Saab"
Originally Posted by HAZ-Matt
I wish I was running dual monitors so that I could read this thread. 

BTW, Is that Bill Gates' neighborhood, or what?
Re: Lutz on "selling off Hummer and Saab"
GM's getting a little more focused with their product lines, but not much. They need to pare down their SAABs to like 2 main models. But two GREAT models. One would be the 9-3 with either FWD or AWD + turbo options + excellent interior + some quarkie SAABish flavor; with a coupe and convertible falling on this platform. The other model should be the 9-5 sedan. Give it the 2.8L turbo and RWD and make it a true world class sedan. I mean, set IT against the BMW instead of Pontiac or Caddy or whatever. Caddy should be aiming higher anyway. SAAB actually has a better chance of succeeding and convincing the public of having some kind of parity with a bimmer.
but THAT'S IT! No 9-2s, no 9-7s or whatever else they're trying to peddle these days. Update every 3 years, rinse, repeate and you have a couple of winners instead of 5 wannabies.
but THAT'S IT! No 9-2s, no 9-7s or whatever else they're trying to peddle these days. Update every 3 years, rinse, repeate and you have a couple of winners instead of 5 wannabies.
Re: Lutz on "selling off Hummer and Saab"
So, Scott not that I agree with Dollinger when I say this....but Oldsmobile cost billions to shutter and GM's own white collar execs have said the lost sales volume has not been made up: Would it be safe to say that shuttering Oldsmobile was a mistake by General Motors?
It's not a general statement regarding production models, etc. Simply put, from somebody that can see the figures both before and after...? The investors have already let their thoughts play out in their stock options during the Oldsmobile shuttering...but looking back, was it the "right" thing to do for the company?
It's not a general statement regarding production models, etc. Simply put, from somebody that can see the figures both before and after...? The investors have already let their thoughts play out in their stock options during the Oldsmobile shuttering...but looking back, was it the "right" thing to do for the company?
Re: Lutz on "selling off Hummer and Saab"
my opinion? As much as I hate to say it about a brand with 100 years of history........yes.
I can't talk about how much the Division was losing.......but I'll give you my take....one of the reasons Olds was so successful was that many Olds dealers(the majority) were dualled with Chevrolet....and while the pricing of an olds was about $200 more, the internal costs were several times that......that's why Olds volume rocketed (pun intended) to put it as #3 in the U.S. in the 70s.......but the world changed.
I can't talk about how much the Division was losing.......but I'll give you my take....one of the reasons Olds was so successful was that many Olds dealers(the majority) were dualled with Chevrolet....and while the pricing of an olds was about $200 more, the internal costs were several times that......that's why Olds volume rocketed (pun intended) to put it as #3 in the U.S. in the 70s.......but the world changed.


