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Saturn: Can GM Renew the Affair?
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Will a new trio of products create a new big bang for the brand?

2007 Saturn Outlook
2007 Saturn Outlook  |  

 

2006 New York Auto Show Coverage by TCC Team (4/10/2006)

 

Daily Edition: Apr. 11, 2006 by TCC Team (4/10/2006)
Saturn Outlook, Aura and Sky Red Line for New York.

 

 

by Ken Zino

 

With the introduction of the Sky performance convertible, Aura mid-size sedan, and Outlook crossover, and hybrid production and concept versions of the Vue compact SUV at the New York International Auto Show, GM is pouring more product development money into its Saturn brand at any time since its $3.5-billion debut in 1990.

 

And it's not a moment too soon. After peaking at 286,000 units in 1994, Saturn sales have been basically drifting downward to 214,000 in 2005.  During the first quarter of this year, Saturn sold 47,000 vehicles. In an attempt to counter the trend, Saturn will add those five new vehicles to its lineup by the end of this year.

 

"Our owners don't want us to lose the honesty of our brand, how we do business without haggling," says Jill Lajdziak, Saturn general manager. "But they do want a different more dramatic look and feel."

 

Maybe so, but the plan to retain the four million Saturn owners on the road while attracting new ones is potentially a deal with the devil - one that trades Saturn's autonomy and uniqueness for a common corporate platform approach with some products virtually identical to Opel versions in Europe.

 

Given GM's own struggles with supplier Delphi, overall declining market share, and plans to shut a dozen or so factories and make redundant 30,000 workers in North America , the company has no choice but to continue its ongoing forced march toward commonality. GM lost $10.6 billion in 2005, and is scrambling to pare its engineering, material, and personal costs. It's abundantly clear why GM needs to avoid duplication of work, cut costs, and increase revenue. With this round of products, Saturn is now fully integrated into the GM product development mainstream.

 

"Like always, like never before" is the tag line of a new advertising campaign that kicks off next month, says Lajdziak, who insiders claim has done more to keep Saturn alive during the past three years than any other GM executive.  

 

"Like always" means that Saturns will continue to be sold by 225 exclusive dealers with 440 outlets. "Like never before" means the cars are no longer unique and no longer inexpensive as the brand is being repositioned upward as a sort of sporty European line. The Sky and Aura were developed by Opel. Even the innovative plastic panels that resist dents and still make ten-year-old SL models look new are an endangered species, since unique body parts are the anathema of the continued push for commonality that will come with the next-generation Ion, based on the Opel Astra.

 

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