GM needs all those brands according to Sales VP
There have been a number of suggestions that GM's restructuring should include trimming down its long list of brands,
most recently by new board member Jerry York, who recommended unloading the Hummer and Saab brands. Well, don't hold
your breath. GM's VP of North American vehicle sales, Mark LaNeve, said today that GM needs to keep all of its North
American brands, including Saab and Hummer.LaNeve suggested that GM would instead focus on turning around its struggling brands, including Pontiac, Buick and Saab. In the case of Saab, LaNeve suggested that what's needed is a stronger brand identity in the mind of consumers.
At the other end of the spectrum, the Hummer brand is growing quickly, and 70 percent of sales are "conquest sales" - customers who previously owned non-GM vehicles - so LaNeve sees nothing but upside in keeping the brand in GM's portfolio.
Reader Comments (Page 1 of 2)
TriShield 8:33PM (2/10/2006)
What is GM's fascination with hanging onto all these moribund names?
There's just no way GM has the resources to adequately revive and supply every one of their brands, absolutely no way. They are stretched too thin on their empire of names and it really shows.
Does he honestly think GM's outdated brand heirarchy matters to people anymore? That each brand doesn't cannabalize each other's sales instead of the competition? That for example GM and the world really need two identical trucks, one wearing a bowtie and the other saying GMC on the grille? This nonsense is a huge part of GM's competitive problem.
If you don't agree then ask yourself this. Is GM better off with two to three lines of good to stellar products and a much larger budget to support them or are things just dandy with their current numerous lines with one stellar product each and the rest being mediocre?
A GM that produces Cadillac, Chevrolet, HUMMER, Saab and Saturn would be a much better off GM. I think the niche brands like HUMMER and Saab are very important and Saturn has a positive consumer perception with pricing and customer service, something the other brands do not which alone makes it valuable. It could be Opel in the US much like Vauxhall is Opel in the UK and it could work. Buick, GMC and Pontiac there is really no case for, and every new vehicle they release for those brands is a total waste on them and another nail in the GM's coffin.
If worst comes to worst, they should simply produce Cadillac and Chevrolet. Everything I said also applies to Ford. At least Chrysler was wise enough to know when to let Eagle and Plymouth go so Dodge and Chrysler could flourish.
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Jason 9:23PM (2/10/2006)
I don't think it's so much to do with the need to hang on to them all, but rather facing the work of axing one. If I recall correctly, deleting Oldsmobile cost two billion dollars, and no sure profit in other areas came back in, so basically it was two billion wasted.
On another note...regarding how the story says they track "conquest sales"...I assume the data is out there for the opposite, aka, the brand with the highest level of a buyer who flees to any brand but the one he's leaving. Pontiac, maybe?
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Jakery 9:24PM (2/10/2006)
I think that Saab has a strong brand identity. Buick and Pontiac on the other hand do not. Saab is the quirky sweedish company. Pontiac is supposed to be performance? Buick slightly upscale?
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Jeff Gilleran 9:31PM (2/10/2006)
I believe that the best way to go about this is 100% pure streamlining.
Cut out the slow sellers, and push R+D for the better selling models.
Its about market strategy.
All these "delays" are putting GM futher into the abyss.
I cannot understand for the life of me why GM's Ceos continue to press for a downward spiral when they COULD pull out of the financial pickle they are in by shutting down a couple divisions, and Reintergrating them in the future?
Seems like all these idiots can do is look at today, and maybe next year.. What about 10 years from now?
There is no focus, no determination, no goal.
If GM drops, its because they have lost sight of any vision.
At this rate, I can say, without a doubt..
Goodbye GM.
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Rastua 9:56PM (2/10/2006)
GM is the N-word of the auto industry.
My, oh MY this is so much fun being a spectator of the largest collapse in automotive history!!!
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goat 10:15PM (2/10/2006)
I'm not sure what they do with Buick. But Pontiac can be salvaged. Make it what it is supposed to be, allegedly: value performance.
Start out by introducing a 3-series fighter: moderately small, RWD, plenty of power, nice interior.
Later, bring back the Firebird, but make it noticeably nicer inside and out than the Camaro.
Finally, eliminate all FWD Pontiacs. Offer RWD-based AWD in some models.
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Alan 10:17PM (2/10/2006)
SAAB has been long-neglected. Ford has done a much better job preserving Volvo than GM has with SAAB. I would keep it, though, and try to revive the brand. Better to brand some smaller luxury cars as SAABs than Cadillacs IMO (Catera of the past and CTS of today come to mind).
Chevy can probably handle being both the "cheap" and "sporty" line. Buick perhaps serves a purpose. Lucerne is a great car, but I don't think it would sell well as a Chevy or Cadillac. It is too high-end for Chevy and too low-end for Cadillac.
However, I think what would make the most sense is combining some of the dealership franchises, the way Chrysler used to with Chrysler/Plymouth. There shouldn't be any overlap between Chevy, Pontiac, and Buick (although there should be some platform sharing).
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Andy 10:21PM (2/10/2006)
It's amazing how not a single one of the senior execs seems to have a clue about this brand issue.
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Rastus 10:32PM (2/10/2006)
Please forgive my previous typo...me name is Rastus, not Rastua...
Here is a Buick:
http://files.conceptcarz.com/img/Buick/55_buick_roadmaster_leno_015.jpg
Here is Buick on crack:
http://gaybuick.com/Images/Picture/2005/October/lg_3G2JB12F45S18725301.jpg
Any questions Mark LaNeve???
(Stop freebasing the autoindustry, your teeth will fall out and you will wither away...not to mention, you will loose your sanity).
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Rastus 10:46PM (2/10/2006)
Here, here's another one which will make your heart melt with fond memories:
"Memories, pressed between the pages of my mind...."
http://img.2dehands.be/f/normal/9564389.jpg
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BlazerUnit 10:53PM (2/10/2006)
I think it's naive to think some modest shakeups in model offerings is all that's needed to turn things around. It's not just a brand that needs to be overhauled, streamlined, revamped, eliminated, or whatever--some of that is going to have to happen to the entire corporation itself. All the moves to save Buick and Pontiac aren't going to mean much if GM itself goes to pot.
LaNeve is off his rocker for thinking in the same terms. There's just no need in this millenium for all of GM's brands without the buyers to support it.
My GM: Chevy, Buick, Cadillac, Hummer, and Saturn/Suzuki (surprise). No one will miss the brands that gave us the Aztek or the Jimmy.
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Lithous 10:56PM (2/10/2006)
First of all, most of you probably didn't read the article (linked through autoblog the other day) about how it is EXTREMELY hard for GM to get rid of divisions. GM has thousands of licensed franchise owners of dealerships for all their divisions. It just makes what seems like the obvious hard to do (trim down brands).
Second, people's world veiw or lack thereof shows everytime Buick is given the death sentence. Buick is a #1 seller in the #2 auto market IN THE WORLD. But if what you are really trying to say is don't sell Buicks here (and not necessarily kill the brand completely) then the other thing to think about is that Buick is heading in the direction of Japanese import looks while allowing Cadillac to stay "American". That attempts to cover both bases, Japanese import fan tastes and American fan tastes of an upscale car. Can they get Buick fully in that direction fast enough is the only question.
Third, I don't think anyone would agree to get rid of Chevy, it is the #1 brand in America (just stating the obvious).
Fourth, here is a conflict and here is where getting rid of a division would come in nicely (but again, very difficult to do). GM has stated that they want Pontiac to be like BMW eventually. The problem is (other than Pontiac being far from the high end bimmers) that Saturn is turning into Opel (TriShield, you are late in the game on calling that one: http://www.saturnfans.com/Cars/Future/opelsaturncollaboration.shtml) which is another German brand. It seems logical to have one division for the German (or simply just Euro) influenced vehicles instead of two. It should be called Opel here also, IMO. But I am not suggesting that Opels come over here as they exist in Europe. They'd be American versions not unlike there is a European Civic and an American Civic.
Fifth, GMC and Hummer, hmmm, maybe do something like Chevy has the F-150 competitor and GMC has the F-350 competitor. GMC could be the diesel (light) truck and heavy duty division and Chevy have gas powered light trucks and sport trucks. I think getting rid of the Canyon is one thing they'd have to do (unless it had a great diesel in it to really differentiate it from the Colorado. Hummer is good for getting gov't contracts (as long as it can with the military) and selling limited addition to consumers (i.e. two models for consumers is enough). Again, if it wasn't hard to drop divisions this would be a good pair to combine. To be honest, I have never owned a pickup or heavy duty truck so I could admittedly be way off base on what to do here. Or what about this, huge risk though, Chevy sells only cars and GMC Hummer sells all the trucks? Very, very risky move that would have to be done over years somehow so that people who grew up with a Chevy truck wouldn't get pissed and buy something else because the tradition was taken away.
If there was a division that really wasn't needed it would be Saab, IMO.
If removing divisions wasn't difficult:
Cadillac = American luxury
Buick = Asian inspired
Opel = Euro inspired
Chevy = Americana
GMC Hummer = Diesel and heavy duty (or eventually just have all of GM's trucks)
Then of course, when cars are flying vehicles in the future you bring back Saturn. :)
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Rene Curry 11:38PM (2/10/2006)
GMs strategy TODAY should not be to retreat. They need all the brands to support the present manufacturing capacity.
I would downsize manufacturing capacity and work on efficiencies as the present work force retires. Buy-outs are expensive and disruptive.
It is obvious that market share will continue to decrease because of all the new players and competition. So gradual controlled downsizing is in order.
So as a strategy going forward they can evolve into the value and segment leader. You laugh, but we laughed at early Japanese cars, Korean cars, etc.
I think the key is currency valuations. The Japanese & Korean currencies need to strengthen based on their trade surplus fundamentals instead of manipulative treasury purchases. This would make GM the value leader and restore profits.
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Lithous 12:18AM (2/11/2006)
Yes Rastus, let's go down memory lane, this is such a beaut:
http://www.pbase.com/kluken/image/40300900 no that isn't a K-Car though it looks like it doesn't it?
BTW, Rastus...
YOUR "BUICK ON CRACK" IS A PONTIAC SUNFIRE. But that is OK, you're an import fanboy, you get things wrong about American cars all the time, that is the import fanboy modus operandi.
Hahahaha, now it is bedtime, maybe you need some rest as well, goodnight.
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FM 12:29AM (2/11/2006)
Im upset that thanks to GM,Saab will vanish. What are you depeding on sales this year GM? More gangsta Escalades?
More SUVs? At least it doesn't compare to Ford.
*coughstupidmanagementcough*
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FM 12:31AM (2/11/2006)
Lithous,that's a nice looking Camry. Probably runs better and more drivebable than an OLDSMOBILE.
Thank God,GM killed that division.
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Tom 1:39AM (2/11/2006)
GM is sooo funny. They state: In the case of Saab, LaNeve suggested that what's needed is a stronger brand identity in the mind of consumers.
It was GM that removed the strong brand identity in the first place. Morons! GM deserves to go out of business and simply disappear.
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Gundar 2:50AM (2/11/2006)
I hope they put LaNeve's remarks on GM's epitaph, because that's all I need to hear to know that the company is finished.
Good riddance!
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dejal 7:52AM (2/11/2006)
#12
yours
http://www.pbase.com/kluken/image/40300900
or this
http://images.google.com/imgres?imgurl=http://thumb3.webshots.com/s/thumb3/8/38/33/3883833MBKkxoqKUh_th.jpg&imgrefurl=http://community.webshots.com/album/3883759Yxwfyuziza&h=75&w=100&sz=2&tbnid=oGf-26CwJLrZtM:&tbnh=57&tbnw=77&hl=en&start=572&prev=/images%3Fq%3Dbmw%2B1986%26start%3D560%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN
Not that much different.
I must be a import fanboy to. Comparing a Toyota to a
BMW.
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Robert Farago 8:15AM (2/11/2006)
It's too late. GM can't afford to ditch its sick brands anymore. (http://www.thetruthaboutcars.com/content/1139334490898445670/It's too late. GM can't afford to ditch its sick brands anymore. (http://www.thetruthaboutcars.com/content/1139334490898445670/)
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