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How deeply will GM plunge the knife? As it struggles to halt the hemorrhaging, the ailing automaker is considering just about every option available, and that could include still more job cuts – and the sale of one or more of its brands.
“Nothing is off the table,” a well-placed source tells the Wall Street Journal.
With a goal of returning to profitability by 2010, GM has a lot of work ahead of it. The automaker has already announced plans to halt production at four of its light truck plants, and it has, so far this year, eliminated tens of thousands of jobs, mostly on the hourly side. But it is reportedly preparing to eliminate thousands of additional white-collar jobs and is considering still further plant closings.
Earlier this year, the automaker announced it was considering various options for its struggling Hummer brand. An anti-icon for environmentalists and those who would sharply raise automotive fuel economy, insiders say there is a very good chance GM will either sell or simply close down Hummer.
It would be only the second GM brand to be dropped in decades – the moribund Oldsmobile division was sent to the junkyard a few years ago.
But the cutbacks might not stop there, says the Journal. In fact, the automaker is carefully rethinking the business case for all but two of its brands: the flagship Cadillac and Chevrolet marques.
A few years ago, the automaker came under heavy pressure to abandon Buick, which has seen its market share drop nearly 60 percent – to just 1.0 percent – since 2000. Insiders tell TheCarConnection that the only reason Buick remains in the GM tent is that it has become the automaker’s powerhouse nameplate in China. And, indeed, upcoming U.S. Buicks are being designed with Chinese motorists first in mind.
The Swedish Saab brand is among the most likely to be cut, observers believe. After two decades of ownership, GM has simply not been able to move the needle, and Saab remains little more than an industry afterthought.
The once-powerful Pontiac is another brand that has lost its raison d’etre over the years, and new products have yet to revitalize the marque’s longtime “We build excitement” image.
GM has had some modest success with the GMC brand, but it still sells largely upmarket clones of Chevrolet’s light truck offerings.
And then there’s Saturn. The once-maverick brand showed, early on, that it could attract the import-minded buyers who would normally never consider a GM product. But sorely neglected for cash and products, Saturn lost its original momentum, and even a recent infusion of new models – most developed jointly with the automaker’s European Opel subsidiary – hasn’t done much to revive things.
Only the giant Chevrolet, which has begun reconnecting with passenger car buyers, with products like the well-reviewed Malibu and luxury marque Cadillac, seems immune from the knife.
Eliminating brands would potentially save GM billions in money it must spend to come up with alternative versions of otherwise identical products. There would be some lost sales to brand loyalists, but the automaker is convinced it could win back some of those buyers. And even it couldn’t, the cost of keeping them in the GM world is simply more than it can afford anymore.
Which brand(s) would our readers chop?
Have an opinion?
Steve Posted: 7/7/2008 2:39pm PDT
Eddie Posted: 7/7/2008 2:42pm PDT
Rip Oliver Posted: 7/7/2008 2:55pm PDT
xjug1987 Posted: 7/7/2008 4:41pm PDT
Eddie Posted: 7/7/2008 6:28pm PDT
Reece Posted: 7/7/2008 7:51pm PDT
SAAB has some new product on the way, I'd keep it though as a Europe only brand. It could work as a Europe car company but I would give it 3 years, if it doesn't double volume, kill it.
Saturn should be a major focus for GM. It should be hign MPG brand with a focus on technology not price. Hybrids are only an interim solution so I wouldn't put all eggs in one basket there. The Volt should be a Saturn product.
Pontiac is difficult. Get the product right and who knows. I'd keep it as a pure sports division and not try and have full spectrum of vehicles. No vans, no SUV's. Think G-8, G-8 sports truck and sports car based on Camaro (G-8 underpinnings anyway) and maybe a smaller mid-size car.
I'd have only three types of Dealers though: Chevrolet-Pontiac-Hummer, Saturn (or Saturn-SAAB if you have SAAB in US) and Cadillac (Cadiallac - Buick if you keep Buick in the US).
DM Posted: 7/7/2008 9:58pm PDT
DM Posted: 7/7/2008 10:00pm PDT
Beelzebubba Posted: 7/7/2008 11:34pm PDT
Buick (emphasis on "ick!") should have been dumped years ago. Very few, if any, buyers under the age of 50 even give Buick a passing a thought...including those shopping at Buick's competitors. Cadillac, on the other hand, is ready to serve all would-be Buick buyers still exist....and aren't on their deathbed.
Saturn is a joke, especially taking into account the history of the brand. What was a noble attempt to be a different kind of car company is now simply another exercise in GM badge engineering. Take the Astra and give it to Chevrolet to replace the wretched Aveo as their entry-level car. Take the Aura's rear-end and let Chevy use it to fix the Malibu's only real styling issue- that ugly butt!
Hummer should already be long gone....and GMC is yet another redundant and useless franchise.
Chevrolet and Cadillac could move just as many vehicles with far less overhead and redundancies/duplication of efforts.
Saab and Cadillac could coexist in dealerships quite well, as long as competing products were limited. Pontiac was viable as the performance division before gas prices skyrocketed to current levels, but now I'm not so sure. The only Pontiac worth saving is the G8- would make a great replacement for the Impala. The FWD full-size next-gen Impala would just need a new name....or an old one, just not Caprice!
Bernie Posted: 7/8/2008 1:12am PDT
Get rid of Saab or merge with Opel.
Merge Pontiac, Buick, and Saturn. Merge or use GMC as a truck brand for those dealers. Whichever name you keep, make Buick badges to slap onto anything for China.
Keep Chevy and Cadillac as is.
Michael H Posted: 7/8/2008 8:49am PDT
Would anyone want the Hummer brand?
GMC? Make the Denali a trim level for the Chevy's, Nobody would know the difference. Maybe even a Pontiac truck?
Sell the name to an Asian company (Hyundai/Kia, maybe?) for some quick cash. The name Buick nolonger has any value here in the USA.
Maybe GM and Ford could get one company to buy both of the Swedish brands...
krivka Posted: 7/8/2008 11:19am PDT
Pontiac, goodbye, it never was what the media made it out to be.
Buick, make them for the Chinese, better yet, sell the division to Shangai Motors.
GMC, I wrote five years ago about trucks and heard nothing but negative from the nutjobs out there saying gas was cheap. It will never be cheap again and we will never be as well off again.
Chevy, Cadillac and the Saab/Saturn brand. I have said it before and I will repeat it over and over. Oh yeah, one more thing.... HOW STUPID to get rid of FIAT. Everybody involved in that decision should be fired today.
I just bought a Malibu and am about 95% happy with it. It has promise, but is not in the same league as the Altima.
jeff Posted: 7/24/2008 8:41pm PDT
Jim Posted: 10/13/2008 10:18pm PDT
Rename all merged Buick, Pontiac, and GMC dealers as Saturn centers. Close all small Saturn dealers. Also, close all Hummer and Sabb dealers and sell the remaining one model for each brand through the Saturn centers. The remaing Pontiac and Buick model will also be sold through the Saturn centers.
Rebadge Saturn Auras, Saturn VUES/Outlook, Chevy Camaros, Cadd. CTS, Cobalt SSs, and a luxury version of the Impala SS w/5.3 V8 for the Asian market as Buicks. Call the Impala SS an Electra.
In the USA the one remaing Buick model will be an upscale Imapala SS rebadged as an Electra with a standard 3.5 V6 and optional 5.3 V8. This model will be sold through Saturn centers for about 10 years. The base version will be priced slightly more than a base Impala. This will please the World War 2 generation.
The one remaing Pontiac model will be the Soltice. The Saturn Sky will be cut. The Soltice will be sold through Saturn centers. If the new Camaro is a hit with babay boomers poosibly, bring back the Firebird. Make sure to have an affordable base version.
Remember the OLDS Intrigue. If Saturn had that car in the late 1990s instead of the lame L-Series they could have at least had a car equal in sales to an Altima. Best case senerio it could have contended with the Accord and Camry as the best selling car. Don't give the new Riviera to Buick. They now sell this car in China as a Buick. Still sell the car in China as a Buick. In the USA call the car the Saturn Riviera. Possibly, if not Saturn consider giving this car to Caddilac. 2-door sport luxury coupes could come back as the yuppie thing for babay boomers.
Should the Saturn centers fail go bankrupt and reorganize as 2 brands Chevy and Caddilac.
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