GM to shrink to four core brands in North America

RACER X · 01-13-2009, 10:20 AM

One of General Motors’ biggest criticisms is the number of different brands under its roof, which ends up seeing it sell similar models that often compete with one another in the same segments. In its efforts to secure its share of a federal bailout, GM said it intends to focus its U.S. product and marketing resources on four core brands, namely Buick, Chevrolet, Cadillac and GMC.

That leaves Hummer, Saab, Saturn and Pontiac in an uneasy state. GM has already confirmed that it is looking for a buyer for its Hummer brand, and that Saturn was also under review. Pontiac, meanwhile, is expected to be reduced to just a few models, while Saab could also be sold-off or axed altogether.

At the Detroit Auto Show this week, GM’s North American President Troy Clarke told Automotive News that the company will be able to execute those plans, despite the global credit crisis putting a hold on merger and acquisition activity.

"We have to re-engineer the way we're doing business in many regards," Clarke said. "We're going to be a smaller company."

Also speaking at this week’s Detroit event, GM Vice Chairman Bob Lutz said Pontiac will be reduced to just five models – the G8, G5, Vibe, Solstice and Solstice Coupe.

There has been no decision on the future of Saturn but GM is working closely with its dealers. As for Saab, recent reports suggested that GM was having trouble finding a suitor for the Swedish brand. However, GM has since dismissed the reports explaining that it is still early in the process and that any outcome will take some time.

Part of GM’s downsizing efforts will also see its 6,600 dealer network shrunk to around 4,700 dealers by 2012.

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Homeslice · 01-13-2009, 10:57 AM

This doesn't bode well for styling. Chevy's sedans have always been America's ugliest cars (Cobalt, Impala, Malibu, etc).........The Pontiac G6 and Grand Prix were infinitely better.

pauldun170 · 01-13-2009, 11:18 AM

It's a smart move to simplify the lineup and reducing then fluff outta Pontiac is the way to go.

G8 - Obvious
G5 - Current car has to go. A Cobalt with a Pontiac grille is still a Cobalt. If and when the Cruze shows up, it needs to be more than a "Pontiac" appearance package.
Vibe - The new version is undeserving of a Pontiac badge.
Solstice - Obvious

Suprising they are dropping the G6, or at least not offer something in that class.

Corey · 01-13-2009, 11:24 AM

How does it plan on doing this without getting their assholes ripped apart by lawsuits from laws that protect dealerships from an event like this? They had a hard enough time dumping just Oldsmobile. Their efforts to sell off Hummer met with a thud. I can't imagine how they're going to drop a larger volume brand like Pontiac, let alone the addition of Saturn, Saab, and Hummer without a huge amount of litigation and legal expense. They might be able to find a buyer for Saab, and possibly even Saturn if they get lucky, but Hummer has been a massive albatross since the SUV market tanked, and Pontiac may be a tough sell in general.

It would be the right direction to go in, and contraction would help to streamline their product line immensely, but the laws in place protecting dealerships are going to be a huge hurdle.

Homeslice · 01-13-2009, 12:01 PM

I dont understand what's wrong with the Solstice, many magazines compared it favorably to the Miata, and with the supercharged version it's a lot faster.

The Pontiac Grand Prix, G6, and, if we want to go further back, the Olds Intrigue, were the only midsize American sedans that a young "playa" could drive without being embarassed about driving a generic family sedan. Those types of guys would never buy a Malibu or Impala, because they're too generic and look like rentals. Chevy has no style, never has.

pauldun170 · 01-13-2009, 12:20 PM

Quote:

Originally Posted by Homeslice

I dont understand what's wrong with the Solstice, many magazines compared it favorably to the Miata, and with the supercharged version it's a lot faster.

The Pontiac Grand Prix, G6, and, if we want to go further back, the Olds Intrigue, were the only midsize American sedans that a young "playa" could drive without being embarassed about driving a generic family sedan. Those types of guys would never buy a Malibu or Impala, because they're too generic and look like rentals. Chevy has no style, never has.

The common complaint about the Solstice is that the interior is heeeeeerorable and some of the layout sucks.

deals gap dragon slayer · 01-13-2009, 03:39 PM

Quote:

Originally Posted by pauldun170

Vibe - The new version is undeserving of a Pontiac badge.

Yeah... that car went to shit as soon as Toyota stopped making it

Avatard · 01-13-2009, 03:59 PM

I miss Oldsmobile. It was their oldest marque.

I think this strategy is misguided. I think that having the same car under five fucking brands with just different grill and taillights is retarded - I always did...but there's a way to pare this all down without axing brands.

Mechanically, GM products from the "non-chevy" camp were often lumped together as "BOP" (Buick, Olds, Pontiac).

I thought that at the time they opted to kill off Olds, and I even more firmly believe today that they should have simply eliminated model overlap between these brands, and then sold all 3 of these brands under the same "roof", and dealer network; "BOP" dealer.

This would have allowed them to keep their marques, and still reduce redundancy, consolidate some operations, and improve overall efficiency.

derf · 01-13-2009, 06:15 PM

UM??? I thought that saturn was one of their better selling brands?

It is a good move, but unless they start selling cars that people actually want, and can maintain a reputation of reliability like the jap cars have, this may just be another nail in the coffin.

101lifts2 · 01-13-2009, 09:43 PM

Quote:

Originally Posted by Avatard

I miss Oldsmobile. It was their oldest marque.

I think this strategy is misguided. I think that having the same car under five fucking brands with just different grill and taillights is retarded - I always did...but there's a way to pare this all down without axing brands.

Mechanically, GM products from the "non-chevy" camp were often lumped together as "BOP" (Buick, Olds, Pontiac).

I thought that at the time they opted to kill off Olds, and I even more firmly believe today that they should have simply eliminated model overlap between these brands, and then sold all 3 of these brands under the same "roof", and dealer network; "BOP" dealer.

This would have allowed them to keep their marques, and still reduce redundancy, consolidate some operations, and improve overall efficiency.

It was the Buick, Olds, Cadillac group, not BOP. Pontiac and Chevy were always together too.

What I don't get is why keep GMC? The only reason I can think of is so all the Buick, Pontiac, GMC dealers can still survive.

01-13-2009, 10:20 AM	#1
RACER X AMA Supersport Join Date: Nov 2008 Location: Richmond, Tx Moto: '10 Tuono Factory Posts: 4,569	GM to shrink to four core brands in North America One of General Motors’ biggest criticisms is the number of different brands under its roof, which ends up seeing it sell similar models that often compete with one another in the same segments. In its efforts to secure its share of a federal bailout, GM said it intends to focus its U.S. product and marketing resources on four core brands, namely Buick, Chevrolet, Cadillac and GMC. That leaves Hummer, Saab, Saturn and Pontiac in an uneasy state. GM has already confirmed that it is looking for a buyer for its Hummer brand, and that Saturn was also under review. Pontiac, meanwhile, is expected to be reduced to just a few models, while Saab could also be sold-off or axed altogether. At the Detroit Auto Show this week, GM’s North American President Troy Clarke told Automotive News that the company will be able to execute those plans, despite the global credit crisis putting a hold on merger and acquisition activity. "We have to re-engineer the way we're doing business in many regards," Clarke said. "We're going to be a smaller company." Also speaking at this week’s Detroit event, GM Vice Chairman Bob Lutz said Pontiac will be reduced to just five models – the G8, G5, Vibe, Solstice and Solstice Coupe. There has been no decision on the future of Saturn but GM is working closely with its dealers. As for Saab, recent reports suggested that GM was having trouble finding a suitor for the Swedish brand. However, GM has since dismissed the reports explaining that it is still early in the process and that any outcome will take some time. Part of GM’s downsizing efforts will also see its 6,600 dealer network shrunk to around 4,700 dealers by 2012. All Content Copyright 2006-2008 Motor Authority http://www.motorauthority.com/gm-to-...h-america.html __________________ ΜΟΛΩΝ ΛΑΒΕ 2014 GROM! 181cc of FURY 2010 Aprilia Tuono Factory - SOLD 2009 SFV Gladius - SOLD 2008 Hayabusa - SOLD.

01-13-2009, 11:24 AM	#4
Corey AMA Supersport Join Date: Nov 2008 Location: Florida Moto: Not a damn thing Posts: 2,612	How does it plan on doing this without getting their assholes ripped apart by lawsuits from laws that protect dealerships from an event like this? They had a hard enough time dumping just Oldsmobile. Their efforts to sell off Hummer met with a thud. I can't imagine how they're going to drop a larger volume brand like Pontiac, let alone the addition of Saturn, Saab, and Hummer without a huge amount of litigation and legal expense. They might be able to find a buyer for Saab, and possibly even Saturn if they get lucky, but Hummer has been a massive albatross since the SUV market tanked, and Pontiac may be a tough sell in general. It would be the right direction to go in, and contraction would help to streamline their product line immensely, but the laws in place protecting dealerships are going to be a huge hurdle. __________________ Half man, half horse, half motorcycle. All awesome. "Your game is shit, your company is shit. Activision ruined you! Activision ruined you." - Francis

01-13-2009, 03:59 PM	#8
Avatard Crotch Rocket Curmudgeon Join Date: Nov 2008 Location: Here to integrity Moto: Li'l red baby Ninja Posts: 7,482	I miss Oldsmobile. It was their oldest marque. I think this strategy is misguided. I think that having the same car under five fucking brands with just different grill and taillights is retarded - I always did...but there's a way to pare this all down without axing brands. Mechanically, GM products from the "non-chevy" camp were often lumped together as "BOP" (Buick, Olds, Pontiac). I thought that at the time they opted to kill off Olds, and I even more firmly believe today that they should have simply eliminated model overlap between these brands, and then sold all 3 of these brands under the same "roof", and dealer network; "BOP" dealer. This would have allowed them to keep their marques, and still reduce redundancy, consolidate some operations, and improve overall efficiency. __________________ Insert free thought here.

01-13-2009, 06:15 PM	#9
derf token jewboy Join Date: Nov 2008 Moto: CBR 900, KLR ugly ass duckling, Gas Man Posts: 10,799	UM??? I thought that saturn was one of their better selling brands? It is a good move, but unless they start selling cars that people actually want, and can maintain a reputation of reliability like the jap cars have, this may just be another nail in the coffin. __________________

01-13-2009, 10:57 AM	#2
Homeslice Elitist Join Date: Nov 2008 Location: SF Bay Area Moto: Gix 750 Posts: 11,351	This doesn't bode well for styling. Chevy's sedans have always been America's ugliest cars (Cobalt, Impala, Malibu, etc).........The Pontiac G6 and Grand Prix were infinitely better.

01-13-2009, 12:01 PM	#5
Homeslice Elitist Join Date: Nov 2008 Location: SF Bay Area Moto: Gix 750 Posts: 11,351	I dont understand what's wrong with the Solstice, many magazines compared it favorably to the Miata, and with the supercharged version it's a lot faster. The Pontiac Grand Prix, G6, and, if we want to go further back, the Olds Intrigue, were the only midsize American sedans that a young "playa" could drive without being embarassed about driving a generic family sedan. Those types of guys would never buy a Malibu or Impala, because they're too generic and look like rentals. Chevy has no style, never has.