GM says it won't be dropping brands anytime soon
Saab and HUMMER won't be hitting the Orphan Car Show anytime soon, says Rick Wagoner. General Motors' top guy told shareholders yesterday that the company won't be taking the advice of new board member Jerry York, billionaire investor/GM stakeholder Kirk Kerkorian's right-hand man. York made waves in the industry just before he joined the board, when he gave a speech suggesting that GM axe the Saab and HUMMER brands, among other suggestions.
The news also means that York and GM management haven't managed to come to an agreement about branding strategy for the company, but it might be a good thing afterall -- HUMMER was one of the stars of April and May sales, and Saab's realignment alongside Opel might deserve a chance before the marque is cut. Of course, there's always GMC and Buick, but perhaps there are other ways to redefine these brands.
[Source: Reuters via Automotive News; Hummer; TheTruthAboutCars.com]
Reader Comments (Page 1 of 1)
Ben 12:20PM (6/07/2006)
How's this for a recipe:
1. Reduce the number of models in Chevrolet - especially the ugly ones.
2. With Buick making a comeback, keep them or integrate with Cadillac.
3. Axe GMC - too many duplicates.
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Fabulo 12:40PM (6/07/2006)
GM can't afford to drop brands because of their dealer network. Those would instantly form an angry mob, complete with torches and pitchforks and run after Wagoneer.
Otherwise they would have kille 2 or three a long time ago. You'll have to ride the storm or just sink with everyone else.
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Corey W. 1:01PM (6/07/2006)
GM doesn't need to drop any more brands, they need to just clearly differentiate the current ones. Platform sharing is logical, but if you're going to do badge engineering fine, make the design unique to each brand. I don't care if the Chevy Cobalt SS and the Pontiac G5 GXP are the same car, as long as they don't look the same. (int/ext...etc) Give the Pontiac a lower ride, some wider feet....etc.
One of the traits I do appreciate about GM is that you have a little more choice when it comes to design, everybody doesn't like the sportier look of Pontiac or the traditional look of Buick...etc. You get get same platform or class car different design, appeal to a wider market, nothing wrong with that.
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Michael Karesh 1:05PM (6/07/2006)
Consolidating the Buick, Pontiac, and GMC channels largely solves the existing issues with those brands. As long as GM doesn't just give all of them Chevy clones. It's an opportunity to finally focus them, since each brand will no longer have to have one of everything to keep dealers happy.
Hummer wouldn't be orphaned. If GM didn't want it, someone else would buy it, and not for a small sum.
Saturn? At the 2005 auto show I felt that the concept Aura and SKY were very promising, even exciting. The SKY still is, but won't carry the brand. The Aura is much more similar to the G6 than I expected, and the Outlook will be similar to the Acadia. So Saturn risks redundancy with the B-P-GMC channel unless GM truly gives it cars with significantly different, perhaps Opel-based styling and tuning.
Saab is in the shakiest position. GM has never known what to do with it. I think for years they thought it was pretty much equivalent to BMW.
Overall, I've always disagreed with those calling for fewer brands. The problem isn't the number of brands, but what GM has done with them. But that's a much more complex issue. It's easier to just say "Head hurts! Too many brands!"
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mavkato 1:06PM (6/07/2006)
drop GMC and make those dealers into "Chevy Truck" dealers
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cnfalv 1:14PM (6/07/2006)
Hummer wouldn't be orphaned. If GM didn't want it, someone else would buy it, and not for a small sum
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richard elsbree 1:23PM (6/07/2006)
The GMC truck brand costs them nothing extra to make. It only involves a
few minor trim pieces and some people swear its a better truck than a
Chevy. I know one GMC owner who swears its made of heavier steel. It's
not so much what you make as what people think you make.
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Oolon Coluphid 1:25PM (6/07/2006)
GM should sell Saab to Subaru
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Jack of Shadows 2:56PM (6/07/2006)
Thoughts from an old fart: drop Chevrolet while moving the Vette to Caddy, drop Buick and sell Saab back to the Swedes.
That would leave Pontiac, Caddy, GMC trucks,Saturn and Hummer.
By the way, Hummer was fine on it's own before GMC and it could be again. The passenger SUV's might die off but the Humvee won't.
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PJ 3:17PM (6/07/2006)
This was probably covered in a previous comment, but the reason GM is so reluctant to drop GMC is because it would cut inventory at Buick-Pontiac-GMC dealerships (these three brands are usually lumped together in terms of dealer organization), infuriating employees at those retailers.
Before this was explained to me, I always thought GMC was the most conspicuous hunk of dead weight at GM, far more so than Saab or Hummer.
I'm not sure how GM let Saab get to the point that it's at now. Saab has a strong, quirky brand image, a history, and lots of devoted fans. It seems to me that fixing the solving the brand's current lack of direction is as simple as hiring the ad agency that designs MINI's, Honda's, VW's, or BMW's marketing campaigns and capitalizing on those strengths.
Of course, I realize that the problem is with product, too. But given some TLC (shifter feel, interior materials, noise isolation, suspension tuning), today's 9-3 and aging 9-5 could have enough life in them to sustain the brand while new corporate platforms are being developed. At that point, the 9-2X and 9-7X (which, despite their bad rap, are getting bodies into showrooms, especially the SUV) could be dropped.
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Joe Condon 3:34PM (6/07/2006)
So theres, Buick, GMC, and Pontiac as performnce, luxury, and trucks. Then there's Chevy as the money maker, Cadilac as the BMW-class luxury competitor, and Hummer as the novelty truck brand.
What about Saab and Saturn? I was hoping saturn could become the Opel/Vauxhall/Holden of America, plus a few extra models. But here it says Saab would be aligned with Opel. Personally, I think they need to either make Saab Saab (small range of unique hatchbacks) or start seriously making a Volvo competitor (near-luxury/luxury full line of unique, well built cars.)
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Joe Condon 3:36PM (6/07/2006)
So theres, Buick, GMC, and Pontiac as performnce, luxury, and trucks. Then there's Chevy as the money maker, Cadilac as the BMW-class luxury competitor, and Hummer as the novelty truck brand.
What about Saab and Saturn? I was hoping saturn could become the Opel/Vauxhall/Holden of America, plus a few extra models. But here it says Saab would be aligned with Opel. Personally, I think they need to either make Saab Saab (small range of unique hatchbacks) or start seriously making a Volvo competitor (near-luxury/luxury full line of unique, well built cars.)
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Nate Wesley 3:54PM (6/07/2006)
Throwing logic and feasibility out of the door for the sake of fantasy, here's how I'd handle things.
Chevy's obviously my main do-everything brand. It'll get a compact/subcompact car (Aveo & Cobalt), a midsize sedan and coupe (Malibu, Impala, & Monte Carlo), a minivan (a competitive one!), a crossover, full and midsize trucks and SUVs, plus the Corvette. Saturn is a combination of Americanized-Opel imports and upscale, meticulously refined versions of Chevy vehicles.
The other brands are severely limited to three, maybe four models that appeal/attract/adhere historically or statistically to what they do best.
*Pontiac gets a musclecar (new GT0 2.0 or a new Firebird?), a sport sedan (G6), and a tuned small car(the Pursuit/G5).
*Buick gets cushy versions of GM's minivan, crossover, and family car.
*GMC/Hummer: Canyon, Sierra, Yukon, the new crossover Saturn's getting, H2, H3. That's it.
The reduced offerings for the last four brands all tie into my new "GM Store" concept for dealers...if you don't have at least three last four brands, you're getting booted for a possible new dealership that will. Only Chevy, Saturn, or Cadillac could stand alone as singular retail stores.
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Patsy 4:25PM (6/07/2006)
Buick is king in China. After visitng the Red Dragon, I can assure you that the Chinese think HIGHLY of Buick. Even more so thatn Lexus or BMW. As a matter of factr, anything Japanese is regarded with caution. American companies have the upper hand in China.
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whofan 5:11PM (6/07/2006)
Buick is a very nice car. I see buick as equil to lexus. Anyone paid any attention to the new Buicks lately ?
Pontiac is the most redundant brand GM has. The Grand Prix has always been a good looking design but Chevrolet has everything Pontiac has.
Axe Pontiac position Saturn as an up scale small car, (We need good small cars now)leave everything else as is.
Oldsmobile was the book end to Buick, as Pontiac is to Chevrolet.
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Aki 5:37PM (6/07/2006)
What I'd do, being safely distant from the politics of GM.
Axe Pontiac, move sports lines to Saturn and Chevy.
Axe GMC, move SUVs to Chevy (oh wait Chevy already has SUVs) or consolidate with Hummer
Axe Buick, consolidate with Cadillac.
Build Saab cars that don't look really weird to expand base in Europe.
Saturn = Performance/import/youth division (the Scion of GM)
Chevy = Every day and all-round
Cadillac = Luxury
Hummer = Outdoor
Saab = Euro contender
As for Buick taking off in China, and selling better stateside, it wouldn't take much for people to switch to Caddy if the cars offered were similar. Build granny mobiles (DTS) as well as youthful sports luxury cars like the CTS.
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whofan 6:45PM (6/07/2006)
Buick is much cheaper than Cadillac.
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Carlton 8:06AM (6/08/2006)
"1. Reduce the number of models in Chevrolet - especially the ugly ones."
They would have nothing left if they did!
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Larry Bartley 11:57PM (6/10/2006)
Excuse me if I'm out of place. I found this blog because it was listed as a GMC blog. I just wanted to let the world know that due to reasons beyond my control I am not going to continue developing my GMC related site but I'm puting it up for sale. If anyone is interested you can get more information at http://www.gmcar.com.
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