Easiest way to fix GM

[Northstar]

Cut the Fat: A Smaller GM is the Only Way to Go

Please note this isn't actually what I want to happen, but rather what I think has to happen in order for GM to survive, and not only survive, but thrive.

Here is how I would go about fixing GM:

Kill: Pontiac, GMC, Buick

Sell: Hummer

Possibly stop selling in US: Saab

Keep: Chevy, Saturn, Cadillac

I'll see how long I decide to write for, but here's the basic idea:

I think it's pretty obvious GMC has nothing but rebadges. The Acadia is their most unique product, and there are 3 other Lambdas. Reasons to support cutting GM have been addressed in the last week or so, so I see no reason to expand. Most buyers would move to Chevy trucks.

With the way things are looking, it's time for Pontiac to die. Solstice and G8 are the only cars that actually follow what Pontiac is supposed to be, and it looks like more FWD rebadges are coming down the line, if the brand doesn't die. No need to make enthusiasts suffer any long. Move the G8 to Chevy and sell it as the Impala (I see no need for the "G8 Impala", Malibu on EPII, and another big car in Chevy's lineup). Solstice could possibly go to Chevy as well, or it could die altogether because of the Sky. A Cadillac on Kappa would probably be a better idea than a Chevy with a similar price to the Sky, anyways.

Buick: Cases can be made to cut all of Buick's cars. The Enclave is still a rebadge, fanciest of the Lambdas or not. People have demonstrated they'll pay well over $40k for a Chevy SUV/X-Over, so the Traverse and Outlook can simply be moved slightly more upscale. Lucerne's size and upcoming CAFE standards make it's future break, in addition to not having any new platform to put it on since the Zeta model has been canceled. EPII is a possibility, but how much bigger can it be than the NG LaCrosse.

And speaking of the LaCrosse, I don't see much reason that the NG Aura can't take it's place, which allows the Malibu more breathing room against the Camcord. Buick is the easiest brand to make a case for it to stay, but I see more than enough reason to cut it to, well, cut it instead. Especially if Saab were to stay around, in which case the NG 9-5 would also compete with the LaCrosse on the upper end, Buick seems pretty obsolete.

Ok, enough with the reasons to cut the brands, lets just say they all get cut, and look at the new GM. It's pretty easy to see where I'm going when I list Chevy, Saturn, Cadillac, and possibly Saab.

Chevy's lineup would look something like this:

Subcompact and compact cars: Beat/Trax (or both - whichever one(s) get produced elsewhere). There's no reason for Chevy not to have a plethora of small cars. Toyota sells two Scions and the Yaris, all of which GM needs competitors for. Honda has the Fit, and I'm sure more automakers are bringing microcars in the near future. It's time for GM to be leading a trend, for once. Next in line comes the Aveo, followed by Cobalt and Volt. This may seem like overkill, but if $10 a gallon gas is really coming, these cars will sell in huge numbers. No one thought having the Tahoe, Suburban, Trailblazer, Trailblazer EXT, and GMC counterparts was overkill when they were selling like hotcakes.

Small-midsize and large cars: Malibu, Impala (Chevy G8), Alpha vehicles: Camaro, sedan. Malibu would be as-is (but updated, and with a real Hybrid), Impala would be sold in low numbers with a V8, but offer hybrid and 4cyl powertrains, giving decent MPG for buyers who need a larger vehicle. Camaro would offer everything from a 4cyl to high-power V8, and same for the Alpha sedan (perhaps without a Z/28-like powertrain option, however).

Corvette stays around as-is (but updated).

Crossovers and SUVs:

A subcompact X-Over on either Gamma. This vehicle would get 70+MPG in hybrid form, using the Volt's powertrain, close to 40MPG in the most fuel-efficient non-SUV form. The most fuel efficient SUV/X-Over on the market. A slightly bigger SUV on Delta would be placed above the subcompact. This vehicle would essentially be a Volt X-Over. Same powertrain and wheelbase. Next would be a VUE-sized X-Over, followed by something between Equinox and Traverse in size. Tahoe and Suburban would be up for debate, perhaps 1 could stay.

Trucks:

Pretty much the same, but move the G8 ST to Chevy as an El Camino. Obviously improved fuel efficiency is a must here. Perhaps something on the platform used for the X-Over between Equinox and Traverse size would be a possibility.

Vans: Depending on where the minivan market goes, Chevy may enter the market, but for now the loan van would be the Savanna for commercial purposes.

This lineup consists of 20 vehicles, if I counted correctly. Many of the vehicles are global (Aveo, Beat, Trax, Cobalt, Malibu (?), Impala (w/Holden), and some of the X-Over's could be sold elsewhere, as well). Chevy's current lineup consists of 16 vehicles.

Saturn:

Saturn's lineup would simply be Opel's as is planned. Saturn would continue to move upscale and fill the gap between Cadillac and Chevy at a minimal cost.

Cars:

Corsa, Astra, Aura, Sky. Quite self-explanatory, I think. Corsa takes on premium subcompacts, Astra the Rabbit, GTI, and co., and Aura the Passat, TL, ES and other upscale, FWD midsizers, along with upper CamCords (Aura would start where upper CamCords do and move into the $33-35k range). There's no need for a FWD Cadillac here, and Chevy does not have the image to compete here. With Buick gone, this market belongs solely to Saturn.

X-Overs: Add 1 X-Over below the Vue (not two, like Chevy), Vue, and Outlook, sized similarly to the Chevy on the same platform. Overlap, but minimal overlap, this vehicle would need to appeal to current Enclave buyers and

Hybrids: Obviously, most cars in the future will need hybrid powertrains, but it may be a good idea to give Saturn a hybrid car, such as the Volt. I am unsure if it is totally need, however, given the Volt's expected price.

Cadillac:

Obviously, the range topper.

Alpha sedan and coupe to take on the 3er and co., RWD and AWD, CTS on Sigma/Alpha/whatever to take on 5er. and company. Sedan, coupe, wagon (coupe vs. 6er, CLK, A5). Vehicle above CTS to take on 7er and S-Class. Perhaps further down the line something above the S-Class competitor, but I don't see a need for that until Cadillac re-establishes itself as a true luxury player. I don't see a need for any cars available only as hybrids for Cadillac, as I don't see where one would fit in between other Cadillac hybrids. On the X-Over front, Cadillac would get the new BRX/SRX to go against the X3, RDX, etc., a vehicle to go against the X5 and ML, and something to replace the Escalade (perhaps keep the name). For sports cars, a Z4 competitor and a SL competitor should be sufficient.

Saab: the only reason to keep Saab is their expertise in high power 4cyl turbo engines. Perhaps it would make sense to keep them in the US if all their cars are global, anyways.

Dealership network:

Old PBG dealers would be offered Saturn. I think the Chevy/Cadillac network is too complicated to change much, but obviously improved service and new dealership buildings would be a prime target. Saab can stay pretty much as-is, though perhaps in some expanding cities they could be thrown in with the new Saturn dealers.

I feel this new GM lineup would drastically reduce overlap and give GM more money to invest in advertising, improvements at dealers, and simply more money to put into it's vehicles in R&D. GM would likely never gain all the lost sales back, but at this point, GM will be happy if it has any sales in 5 years. The auto industry is a classic example of the survival of the fittest, and it's time for GM to finally cut the fat.

[Satty]

That would be ideal in the long term, but the cost of closing down the B-P-G dealer network would be insane.

[Oracle of Delphi]

Be careful what you wish for! :AH-HA_wink:

[Camino LS6]

Madness.

[SuperSport623]

Be careful what you wish for! :AH-HA_wink:

Reminds me of the Metallica Song "King Nothing"

Careful what you wish

Careful what you say

Careful what you wish

You may regret it

Careful what you wish

You just might get it

but if this becomes the future of GM, i lose every strand of interest in new vehicles

[vonVeezelsnider]

Be careful what you wish for! :AH-HA_wink:

NOT BUICK. Bad PCS.

[knightfan26917]

but if this becomes the future of GM, i lose every strand of interest in new vehicles

In some ways, I've already lost interest in new vehicles, which is frustrating, in and of itself. I love going to the Chicago Auto Show (though, I haven't been able to the last few years), but more and more...nothing really excites me. Yeah, I like the Dodge Charger and the Pontiac G8, but I really don't see myself buying one of those ... because I'm a Chevy guy. Sadly, Chevy isn't offering anything I want right now, except for maybe the Corvette...but that is a bit expensive . So, I stick with my older cars....

*shrugs*

Northie...some very interesting points, indeed. GM has to do something...and the sooner the better.

Cort:34swm."Mr Monte Carlo.Mr Road Trip".pig valve&pacemaker

WRMNshowcase.legos.HO.models.MCs.RTs.CHD = http://www.chevyasylum.com/cort

"Be careful what you wish for 'cause you just might get it all" ... Chris Daughtery ... 'Home'

Edited June 25, 2008 by knightfan26917

[regfootball]

maybe what is needed is this.

a chevy-buick-pontiac-gmc channel (buick and pontiac and gmc are only a handful of models but very unique and really just supplement the chevys a bit its a way to keep those brands alive)

a saturn channel

a cadillac channel (saab option)

[Northstar]

maybe what is needed is this.

a chevy-buick-pontiac-gmc channel (buick and pontiac and gmc are only a handful of models but very unique and really just supplement the chevys a bit its a way to keep those brands alive)

a saturn channel

a cadillac channel (saab option)

I think you would still have the problem of closing BPG dealerships, or at least having the Chevy dealer have to buy them, but that seems like a reasonable way to not close brands.

[ZL-1]

That would be ideal in the long term, but the cost of closing down the B-P-G dealer network would be insane.

Cheaper to starve them.

Edited June 25, 2008 by ZL-1

[ocnblu]

SSDD

[daves87rs]

Interesting..