Report: GM mulls job cuts, sale of brands

[Camino LS6]

No matter how good a CTSV is or a Malibu if the rest of the company kills the profits the whole body dies. It is time to remove the tumors or die.

Yeah, like Saab, Saturn, and Hummer.

[vonVeezelsnider]

But why?

Saturn has been worse than useless to the bottom line for its entire existence.

Yup.... Stab it to death I hate it. I'd even be okay if it just got merged into Opel instead of this current money sucking marionette routine.

Pure foolishness.

Saab is useless and Saturn is a perennial failure.

Saab may be useless in NA but their sales are strong in Europe and Russia in particular (an emerging market). Their R&D Dpt. is indispensable within General Motors as well. I surmise the reason that Saabs are still sold in NA is because it would be more costly to close and pay off their fairly independent dealer network (Unlike Canada where they A) Do reasonably well and B) are grouped with Saturn) than any money they would save in the short-to-midterm financial books.

Long Story Short, GM is a Bloated Fat Man in desperate need of liposuction. That Means we sell Hummer to some enterprising Indian company. It also means that redundancies need to be cracked down upon. It would be easier to get rid of GMC and Hummer than any others. There's lots of dealers in the US and even more in Canada with Pontiac as an Anchor chain. This is somewheres along the lines of how many Indie Olds dealers there were in the States in 1999 (It was C-O-C in Canada). Dealers in the USA might do okay if they had Saturn mixed with Buick but in Canada, where 1/2 of the dealers are BPG dealers, they would be DECIMATED. Put Buick with Saturn up here (Saturn sells worse up here) and give them that utterly pants-on-head retarded pricing policy and Buick's value goes away INSTANTLY.

And frankly, on Pontiac. Few Pontiacs have ever really appealed to me since the year 2000 (1996-1999 Bonne, Trans Sport and that's about it). I'd be sad to see the brand go, but I wouldn't feel even close to how I felt about Oldsmobile's demise. Olds had a glimmer of hope if Saturn was put down, Pontiac has withered on the vine. No new product in the pipeline. An EP-1 G6 that goes through 2013!!! Look, if all Pontiac is gonna get is cars like the Torrent, G5 and G3 may as well put it down.

Like I Said Before

1) Merge Saturn, Holden into Opel

2) Have some sort of combination of Chev-Buick-Caddy dealers or Chev-Opel and Buick-Cadillac separated. Maybe some Buick-Opel dealers and evaluate which paring seems to work best in different regions of the US in Canada

3) Sell Hummer, Recede Saab to Europe, Put Pontiac out of its Misery, GMC makes commercial trucks, Chevrolet makes consumer ones

4) Focus resources across these four divisions, develop globally applicable products.

5) For the love of god advertise

6) ???????

7) Profit

Alfred Sloan has been dead for quite some time, I don't like to see divisions go, but I love GM, AS A WHOLE. If we keep grasping at straws like gotta have performance, so Pontiac has to stay, GM WILL DIE. ALL OF IT. I'd rather amputate my foot than die of Gangrene, the same is true for General Motors. Pontiac's cheap thrills legacy can be easily personified by Chevrolet, the more refined performance models can be signified in an Alpha Buick and Sig-Zeta CTS. It's time to get serious.

Edited July 8, 2008 by vonVeezelsnider

[Camino LS6]

I think if Pontiac goes, I won't cry too much when the rest of GM dies soon afterward.

[frogger]

I don't get Pontiac's role anymore. If they are going to keep it around, give it a sense of direction. Build a tossable RWD Pontiac that fits snugly in the 3-series/A4/IS space and gets decent fuel economy because its not 3600lbs+. That is the type of car young enthusiasts aspire to/wins a car company new fans and GM has yet to deliver. Instead we've had all their attempts at volume vehicles come off as red gauged cars that drive just like Chevrolets. Don't let cars like the last Grand Prix that are a laughing stock to non-GM fans get built.

Edited July 8, 2008 by frogger

[buyacargetacheck]

You claim to be a GM employee and yet see this coming??? What exactly do you do there besides mop the floors?

Seriously, as non-sensical as GMC and Pontiac are to me there's no way GM has the balls to tell their PBG dealers that they'll stop selling GMC and Pontiac and instead start selling Saturn and Saab which sell 70% fewer vehicles combined than Pontiac and GMC together. You'd have dealers going out of business left and right with lawsuits to match.

Plus, what's the benefit???? Saab has no cache and no profits with no outlook for either anytime soon. Saturn is not believable as an upscale alternative to Chevy, and it has lost what goodwill it had when the S-Series was discontinued and the company neutered. Has Saturn ever been profitable? It might make sense to encourage the 200 (?) Saturn dealers to combine with the PBG dealers in their area while GM adds Saturn to the PBG channel as a car that gets back to basic transportation roots (no more Sky, Outlook, Opels). The new Saturns could be fuel-efficient GMDAT vehicles. The PBG dealers desperately need something more than the Vibe and G5 coupe.

I see Saab on the chopping block soon. Maybe that's why GM decided not to give the Astra to Trollhattan, which will continue to build the glorified Vectra known as the 9-3 until GM can find a buyer for the factory and the brand name for a small sum ($200 mil?).

Here's what I see happening brandwise, should not be nothing new to y'all, only been saying it for over a year now. Here is how I think the sales channels will align in North America

Chevrolet (Stand alone Value Worldwide Brand)

Buick/Saab/Saturn (Mid-Lux North American Brands) Sold in the same dealerships that use to house BPG, that way no dealerships close.

Cadillac (Stand alone Luxury Worldwide Brand)

So in simple terms you would have GOOD, BETTER, BEST!

Hummer will be sold off, Pontiac and GMC will be shown the Oldsmobile door. If things get really tight with money, I see the Saturn name going away in favor of Opel, the Holden name could go away and its factory in Australia converted to produce GMDAT vehicles including AVEO, BEAT, etc. That would give GM extra capacity to ship those cars to India and China. I also see a plant in North America converted to produce the same cars here.

I see nothing happening to GME in Europe, South America, or in Africa, as it makes money there, so GM won't screw with it.

But let's see what the GM Board decides next month, it should be very, very interesting. I told you, you would need lots of popcorn this year.

Edited July 8, 2008 by buyacargetacheck

[Camino LS6]

This scenario that PCS outlines, it sounds like a plan to change General Motors into Generic Motors.

That approach will fail as we already have Toyota for that, and the world does not need two Toyotas.

[BigPontiac]

Here's what I see happening brandwise, should not be nothing new to y'all, only been saying it for over a year now. Here is how I think the sales channels will align in North America

Chevrolet (Stand alone Value Worldwide Brand)

Buick/Saab/Saturn (Mid-Lux North American Brands) Sold in the same dealerships that use to house BPG, that way no dealerships close.

Cadillac (Stand alone Luxury Worldwide Brand)

So in simple terms you would have GOOD, BETTER, BEST!

Hummer will be sold off, Pontiac and GMC will be shown the Oldsmobile door. If things get really tight with money, I see the Saturn name going away in favor of Opel, the Holden name could go away and its factory in Australia converted to produce GMDAT vehicles including AVEO, BEAT, etc. That would give GM extra capacity to ship those cars to India and China. I also see a plant in North America converted to produce the same cars here.

I see nothing happening to GME in Europe, South America, or in Africa, as it makes money there, so GM won't screw with it.

But let's see what the GM Board decides next month, it should be very, very interesting. I told you, you would need lots of popcorn this year.

Interesting. This weekend I did hit some GM lots and the G8 GT and Sierra were all that interested me. Still not a fan of the CTS or the Silverado, but GM doesn't seem to be in the business of catering to buyers like me. The VW GTI was probably the most interesting car I found besides the G8.

[daves87rs]

You claim to be a GM employee and yet see this coming??? What exactly do you do there besides mop the floors?

Seriously, as non-sensical as GMC and Pontiac are to me there's no way GM has the balls to tell their PBG dealers that they'll stop selling GMC and Pontiac and instead start selling Saturn and Saab which sell 70% fewer vehicles combined than Pontiac and GMC together. You'd have dealers going out of business left and right with lawsuits to match.

Plus, what's the benefit???? Saab has no cache and no profits with no outlook for either anytime soon. Saturn is not believable as an upscale alternative to Chevy, and it has lost what goodwill it had when the S-Series was discontinued and the company neutered. Has Saturn ever been profitable? It might make sense to encourage the 200 (?) Saturn dealers to combine with the PBG dealers in their area while GM adds Saturn to the PBG channel as a car that gets back to basic transportation roots (no more Sky, Outlook, Opels). The new Saturns could be fuel-efficient GMDAT vehicles. The PBG dealers desperately need something more than the Vibe and G5 coupe.

I see Saab on the chopping block soon. Maybe that's why GM decided not to give the Astra to Trollhattan, which will continue to build the glorified Vectra known as the 9-3 until GM can find a buyer for the factory and the brand name for a small sum ($200 mil?).

Why should GM care about it's dealerships anymore? If they keeping worrying about them, then the might as well pull the trigger to their head right now.

It's about staying in business.GM could really use less dealerships anyways.....if half of them closed, that would be a good thing. It would match what they are selling anyways...

(I can see enzl and Carbiz beating me with a yardstick any time now..)

Though Saab needs to go...lux cars are going to be on the way out as gas prices go up.. (what moron is going to spend 40-60k on a car, then put 7 buck gas in it?)

I pity no brand right now....GM simply has to stay in business.

The past means NOTHING now. If it did, they might sell more cars...A few car nuts and some GM employees are not going to keep the front doors open....PCS knows that, I know that.

The writing was on the wall-no G6 refresh? Just a G5? A carolla wagon with a Pontiac nose? I don't think GM was planning on investing too much money here....

Then again, the same could be said of Buick and Saab.....

AND, there will be some models gone, a la you-know- who........

[daves87rs]

Here's what I see happening brandwise, should not be nothing new to y'all, only been saying it for over a year now. Here is how I think the sales channels will align in North America

Chevrolet (Stand alone Value Worldwide Brand)

Buick/Saab/Saturn (Mid-Lux North American Brands) Sold in the same dealerships that use to house BPG, that way no dealerships close.

Cadillac (Stand alone Luxury Worldwide Brand)

So in simple terms you would have GOOD, BETTER, BEST!

Hummer will be sold off, Pontiac and GMC will be shown the Oldsmobile door. If things get really tight with money, I see the Saturn name going away in favor of Opel, the Holden name could go away and its factory in Australia converted to produce GMDAT vehicles including AVEO, BEAT, etc. That would give GM extra capacity to ship those cars to India and China. I also see a plant in North America converted to produce the same cars here.

I see nothing happening to GME in Europe, South America, or in Africa, as it makes money there, so GM won't screw with it.

But let's see what the GM Board decides next month, it should be very, very interesting. I told you, you would need lots of popcorn this year.

Except Saab, I would have to agree with that....

And it is something GM could put together quickly.....

[daves87rs]

I think if Pontiac goes, I won't cry too much when the rest of GM dies soon afterward.

If something doesn't happen...it's not going to matter much anyways..

[daves87rs]

This scenario that PCS outlines, it sounds like a plan to change General Motors into Generic Motors.

That approach will fail as we already have Toyota for that, and the world does not need two Toyotas.

THe difference is that GM can bring a brand back if they are successful, Toyota cannot.

Just because it goes away doesn't mean that it won't come back.....

[Camino LS6]

THe difference is that GM can bring a brand back if they are successful, Toyota cannot.

Just because it goes away doesn't mean that it won't come back.....

:rotflmao:

[balthazar]

As goes Chevy, so goes GM, at least in the U.S. Volume is the name of the game.

People probably said that about Olds 8 years ago. Gm is still around, and in a better, though still crappy, position.

Aren't both volume & marketshare well down from the 2000 announcement of the discontinuation of Olds ?

[Intrepidation]

The simple fact is that GM doesn't know how to manage its brands anymore, and hasn't for 30 years or so. They have little in the way of focus or identity, and when the going gets tough, GM sells out (see Olds).

[Satty]

Aren't both volume & marketshare well down from the 2000 announcement of the discontinuation of Olds ?

Yeah, but there is no direct5 correlation to Oldsmobile. All domestics are down.

[thegriffon]

Don't expect GM to discontinue a brand again—it simply costs too much. Instead look for them to examine selling any brands, and the dealer network, of any division they decide not to commit funding to. Of course the easiest to dispose of are thus Saab, Hummer and Saturn.

[Intrepidation]

We all know Saab and Saturn are same because some geniuses are determined that they are t3h futur3, comeplete with vehciles that all share teh same architecture, and therefore compete with each other rather thean the competition. Just like old times!

But hey, they've been a monumental sales success so far.....

[rivieraranch]

At automotivenews.com, the headline reads "GM denies any more brands under review," but the text of the story states, "A General Motors spokesman today denied the automaker is reviewing any more brands besides Hummer for possible sale."

I added the bold, suspecting it means they won't be selling GMC and Pontiac, but will instead just close them.

If they kill of Pontiac and GMC what happens to Buick?

[wildcat]

It's entirely possible that Saturn and Saab will join Buick, together, as a sales channel. Please search for comments elsewhere on this site by Pontiac Custom-S.

[Camino LS6]

It's entirely moronic that Saturn and Saab will join Buick, together, as a sales channel. Please search for comments elsewhere on this site by Pontiac Custom-S.

Fixed.

[frogger]

Saab-Saturn-Buick dealerships? I think I just heard a pin drop across the room

[Camino LS6]

Yes, you will hear the crickets chirping in every showroom.

[Oracle of Delphi]

Fixed.

Now that's not nice, you need every friend you have at GM these days. :AH-HA_wink:

[Camino LS6]

Now that's not nice, you need every friend you have at GM these days. :AH-HA_wink:

I have some left?

Seriously, that plan is moronic.

[Oracle of Delphi]

I have some left?

Seriously, that plan is moronic.

Well friend may have been to strong a word, how about we change it to acquaintance then. :AH-HA_wink:

[Camino LS6]

Well friend may have been to strong a word, how about we change it to acquaintance then. :AH-HA_wink:

I'm guessing that all my friends at GM are being usurped as we speak.

[GMTruckGuy74]

Hummer models like the Hx Concept can be rolled into GMC as a retro GMC Jimmy that competes directly with the Jeep Wrangler and Toyota FJ Cruiser. With the Yukon already being sold, the H2 componentry can be added to it to offer a Yukon All-Terrain model for the off-road vehicle market (the Tahoe Z71 would go away). The H3T pickup can become the Canyon, as it is both an improvement and a better vehicle than the Canyon could ever hope to be (and being a true off-road pickup, "Canyon" is the perfect name). The H3 SUV can become the new Envoy All-Terrain, and could come with a part-time 4WD system instead of the full-time 4WD system.

Effectively, GMC would go after the niche off-road truck market allowing it to survive while not selling rebadged versions of Chevrolet Trucks (the Sierra would continue on, especially with the All-Terrain model). This way GMC & Hummer merge to become GM's "Jeep"/off-road division, while Chevrolet continues to offer it's core trucks, especially to those not seeking off-road based versions. This way Pontiac-Buick dealers have trucks to sell still that you can't just buy over at Chevrolet, and in the process Chevrolet can have the commercial end too (Topkick gives way to the Kodiak, Savana concedes to the Express, and SL work-based truck versions of the Sierra and Canyon are no longer offered).

As for those of you dismissing the G6, realize that my wife looked at and sat in the Malibu, but choose the G6 sedan over it hands down and does not regret not getting what she calls an "older person's" car <Malibu> :AH-HA_wink: Those of you saying that Pontiac owners will go to Chevrolet need to look at how many Oldsmobile owners went to Buick

[daves87rs]

:rotflmao:

I'm glad you find that funny....because I don't.

Everything comes back...heck, the 80s are back now....

Would rather see this mess continue further, or watch it disappear for a few years (like the Camaro) and come back as a better brand?

[Camino LS6]

I'm glad you find that funny....because I don't.

Everything comes back...heck, the 80s are back now....

Would rather see this mess continue further, or watch it disappear for a few years (like the Camaro) and come back as a better brand?

Any brand GM kills will be gone forever.

[buyacargetacheck]

Is Saab Auto even profitable? With 9-3 production staying in Trollhattan spinning Saab off would be easier than ever. Two companies interested in the US market but without a distribution network, Fiat and Peugeot, seem like a good fit. Even if GM could only get $250M for Saab it's still money that could be used to shore up the balance sheet while at the same time reducing risk (no more op losses and no more down-the-drain capital investments in high-wage Swedish factories).

[daves87rs]

Any brand GM kills will be gone forever.

If so, then so be it...

Life moves on....

[daves87rs]

Is Saab Auto even profitable? With 9-3 production staying in Trollhattan spinning Saab off would be easier than ever. Two companies interested in the US market but without a distribution network, Fiat and Peugeot, seem like a good fit. Even if GM could only get $250M for Saab it's still money that could be used to shore up the balance sheet while at the same time reducing risk (no more op losses and no more down-the-drain capital investments in high-wage Swedish factories).

Saab can't do poop here, he they keep it , it would be more for Europe and China.....

[CARBIZ]

Read www.autoextremist.com today. His rant is spot on, for the most part. GM cannot 'kill' any more brands. It is too expensive, but they can starve them. Although it may sound like a bad corporate move (and in a lot of respects it is), it would be cheaper than going through the legal motions of killing off one of the brands.

There have been many legal cases in both our countries where franchisees have sued (unsuccessfully) the franchisor over perceived lack of leadership, product, etc. In the dire shape GM is currently in, it would be difficult for a dealer (or dealers) to accuse GM of DELIBERATELY starving one or more brands, but it could be done slowly. GM can easily argue it doesn't have the development money for the slower selling brands - and that would probably hold up in court.

I think we may have already seen the start of it with the intro of the Aura, then Malibu, as one example. Everyone agrees the Malibu has gotten far more attention, both from the press and advertising.

Besides, once P-B-GMC is fully integrated, their total number of models can be cut back and if the new product that comes out is decent enough, those surviving P-B-GMC dealers may thrive quite well.

As Peter says, "but unless you’re connected to a Cadillac or Chevrolet franchise, the future is bleak."

:AH-HA_wink:

[smk4565]

Saab lost $428 million in 2006.

I have said for years, too many brands, too many models and too many big SUVs. History and Nostalgia can't be used as factors when determining which brands to keep. They need Chevy and Cadillac, and 2 brands to fill the gap with semi-luxury and sporty cars and niche products. Trying to keep 8 brands going another 5-10 years will lead to bankruptcy. The stock is at a 55 year low, market share has gone from 40% to 20% in the past 20 years, the strategy has to change and change radically.

[balthazar]

Even I don't believe history & nostolgia are major factors in a decision to keep brands. The history behind them is no longer tangible (outside of car shows). The reasons -say- Pontiac evokes enthusiasm were established in the '50-70s for the most part... and those cars & elements are all gone except for the split grille.

But.... well defined and well executed, each brand absolutely can offer a solid business case for continuance. Undoubtedly this will require inspired vision, and much smaller production, but variety is one of the strong suits to GM (look at their truck lines- something toyot and nissan never were able to learn). Who would've thought there was a spot in the segment for maserati, but look at that brand go, parts-bin dipping and all.

Look at mercedes, bmw, infiniti, lexus, etc- they all have very similar cars within a segment: similar size, power, amenities, proportions, functionality, performance, etc, with different grilles & sheetmetal. Are they fundamentally unique from each other? Not really. But they survive and even prosper, even tho they rub shoulders in a rapidly shrinking market. Perception here is huge, likely as important as product (look at land rover!).

Too often the focus is not on the cars, but on the business situation. The vehicles, done to the standard of -say- the Corvette, CTS, Malibu & Enclave, will all find their way, and their way to profitability just as all the other segment vehicles do. Where was Buick's rep before the Enclave, and look what that vehicle has done in the segment. Very comendable conquest rates there. It can be done and it has been done. It needs to keep being done.

Amputating without vision will only kill the corporation- by itself it fixes nothing.

[smk4565]

Properly executed brands could succeed (although Saab and Hummer have no place anymore), but GM doesn't have the money to pay to make every brand properly executed. The cash burn is over $1 billion a month, by 2010 they are out of cash. Meanwhile Toyota has $25 billion in cash, and yearly profits in the $15 billion range. GM can probably fund 4 great brands and attract new buyers, or they can keep funding 8 mediocre brands and lose sales.

If the luxury market is shrinking, then BMW Group must be doing something right, because they sold 746,000 cars worldwide in the first 6 months, which is a record for them. Mini is up, Rolls-Royce is up, and BMW is up. Mercedes and Audi sales are up this year also. Maybe just the American and Japanese luxury brands are shrinking.

[CSpec]

Properly executed brands could succeed (although Saab and Hummer have no place anymore), but GM doesn't have the money to pay to make every brand properly executed. The cash burn is over $1 billion a month, by 2010 they are out of cash. Meanwhile Toyota has $25 billion in cash, and yearly profits in the $15 billion range. GM can probably fund 4 great brands and attract new buyers, or they can keep funding 8 mediocre brands and lose sales.

If the luxury market is shrinking, then BMW Group must be doing something right, because they sold 746,000 cars worldwide in the first 6 months, which is a record for them. Mini is up, Rolls-Royce is up, and BMW is up. Mercedes and Audi sales are up this year also. Maybe just the American and Japanese luxury brands are shrinking.

I agree! GM NEEDS MONEY. Of course they could do great things if they had tons of cash, but they don't. They need to do what will maximize the return on their few remaining dollars. Making 3 different versions of a car in the same segment that compete with themselves is not a good plan. And BMW is on a serious roll, introducing updated and completely new models left and right.

[longtooth]

I agree! GM NEEDS MONEY. Of course they could do great things if they had tons of cash, but they don't. They need to do what will maximize the return on their few remaining dollars. Making 3 different versions of a car in the same segment that compete with themselves is not a good plan. And BMW is on a serious roll, introducing updated and completely new models left and right.

Cobalt/G5 not withstanding? Some appreciate the nuanced appearance of G5 v. Cobalt. I find the shape and overall function of both to be pleasing. I did see a Cobalt sedan fitted with contrasting-color ground effects and that treatment too was eye-catching. Just as Corolla has it's ground effects package with air dams and strakes and such.

[FUTURE_OF_GM]

Well look at that,

More "news" posted by PCS (You know, the type that pushes his agenda)

GM sells under eight different brands, but most, including Buick, Saturn and Saab, struggle to attract buyers. The company has already decided to put its Hummer division up for sale and prospective buyers are thought to include Mahindra & Mahindra.

Hmm... Funny that all of those brands mentioned are supposed to "SAVE GM!!!!1111!!!!"

Of course, the fact that the author says all of these brands have a hard time attracting buyers shows how ignorant he is.

In the past few years, as GM has run up massive losses, some board members and some executives have on occasion raised questions about its plethora of brands, only to be rebuffed by CEO Rick Wagoner, the paper said.

For good reason...

Cutting brands costs A LOT of money and cutting brands costs A LOT of positive PR. Why am I not surprised that GM middle management can't grasp this concept?

I doubt it will be any of the brands mentioned other than HUMMER, conventional wisdom inside GM says it will be Pontiac and GMC, but August is only a month away, hopefully we'll all know by then.

Wisdom?!?! Yeah right...

[Intrepidation]

What they could do is keep BPG, and cut models that overlap. Specific models that fit the brand can be made for them. There would be less per brand but the 3 brands together could create an entire linup.

Pontiac: roadster, small sporty car, medium RWD sporty car

Buick: luxury CUV, medium premium FWD car, large premium RWD car

GMC pickup and SUV or CUV

Doesn't sound like a lot, but you could easily keep the brand focused, without having to try and fully develope it, since teh three brands together would make one. That would make it: Chevrolet, Cadillac, BPG, Saturn/Saab. That would be 4 brands, if you grouped Saab with Saturn, since they're both Euro.

Edited July 10, 2008 by Dodgefan

[longtooth]

Well look at that,

More "news" posted by PCS (You know, the type that pushes his agenda)

Hmm... Funny that all of those brands mentioned are supposed to "SAVE GM!!!!1111!!!!"

Of course, the fact that the author says all of these brands have a hard time attracting buyers shows how ignorant he is.

For good reason...

Cutting brands costs A LOT of money and cutting brands costs A LOT of positive PR. Why am I not surprised that GM middle management can't grasp this concept?

Wisdom?!?! Yeah right...

All of this as many seek to make GM bankruptcy "rumors" a self-fulfilling prophecy.

Analysts. Never a hint of dirt under their nails nor a bashed knuckle to their credit. Lord, spare me.

[smk4565]

Of course, the fact that the author says all of these brands have a hard time attracting buyers shows how ignorant he is.

Cutting brands costs A LOT of money and cutting brands costs A LOT of positive PR. Why am I not surprised that GM middle management can't grasp this concept?

Hummer sales were down 55% in June, Saab sales were down 54%, Buick down 34%. Saab and Hummer are competing for worst selling brand in the USA (besides Maseratti, Rolls-Royce, etc) and Buick is the 6th best selling GM brand. They aren't attracting buyers. Pontiac and GMC sales have been down all year also.

Bankruptcy costs more than closing a couple brands. GM stock is in the $9 dollar range today, lowest in 60 years.

[Intrepidation]

In an unrelated note, FOG, I find your signature offensive but not for the reason you may think.

Edited July 10, 2008 by Dodgefan

[FUTURE_OF_GM]

What they could do is keep BPG, and cut models that overlap. Specific models that fit the brand can be made for them. There would be less per brand but the 3 brands together could create an entire linup.

I agree.

And that was the plan all along. But in typical fashion, GM couldn't stick with it long enough to see if it actually works.

Doesn't sound like a lot, but you could easily keep the brand focused, without having to try and fully develope it, since teh three brands together would make one. That would make it: Chevrolet, Cadillac, BPG, Saturn/Saab. That would be 4 brands, if you grouped Saab with Saturn, since they're both Euro.

Makes perfect sense.

If GM wants to focus Chevrolet as the volume division, THEN THEY NEED TO DO IT! There is no reason that Pontiac/Buick/GMC has to pull volume like Chevrolet. well, no reason other than to appease the dealers (Who pump more money into their import franchises anyway)

How long until GM wises up and starts having "factory stores" again?

[FUTURE_OF_GM]

Hummer sales were down 55% in June, Saab sales were down 54%, Buick down 34%. Saab and Hummer are competing for worst selling brand in the USA (besides Maseratti, Rolls-Royce, etc) and Buick is the 6th best selling GM brand. They aren't attracting buyers. Pontiac and GMC sales have been down all year also.

Yet, Pontiac shows positive momentum, despite having totally lackluster product (except for the G8, which 1) has received NO support and 2) could still be considered lackluster by the brand faithful target audience) and GMC still continues to be huge with profits that GM can't make on any other division. And GM wants to phase THOSE divisions out to the benefit of REGRESSING 100 years worth of equity to BUILD Saturn with money that the corporation doesn't have, DUMP more money into a division that has NEVER returned a profit and basically doesn't exist in the mind of the consumer. (Saab) Fine, LOSE Hummer, that's cool but don't go whining about the market shifting again in a few years after you've sold and closed all of your truck divisions.

People constantly bitch about Pontiac and how it's an enthusiast division that appeals to relatively few LOYAL buyers (Now, at least) Yet no one EVER says that about Saab which is in the same boat, or an even worse position because it's loyal customers (all 5 of them) abandoned it when GM took ownership.

Bankruptcy costs more than closing a couple brands. GM stock is in the $9 dollar range today, lowest in 60 years.

Don't even preach "the street" line to me... Look at the market in general, look at the economy. It's not just GM and we shouldn't destroy the company to survive.