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Old 05-15-2008, 03:02 PM   #31 (permalink)
Bigbee60
2.4 Liter SIDI ECOTEC
 
Join Date: Mar 2008
Location: Auto Land
Drives: 2008 Colorado Crew Cab Z71 RWD
Posts: 139
Re: Business Magazine Suggests GM Should Close 5 Of Its 8 U.S. Brands

It's easy to bash GM as it's been a big target for a long time. It's royally messed up in recent times too.

However, if 8 brands (4 major ones at most as Saab, GMC, Hummer, and Buick are less than full line) are so bad, why are GM's non-US competitors falling over themselves in the last 25 years to add brands and build new channels for sales? Scion has been a huge failure for Toyota on an investment to sales ratio. It was much more than just some re-badged models and new signs - ask the 200 or so US dealers that didn't buy-in to Scion and who let on at the NADA meetings in March that not buying in has increased their bottom line compared to fellow dealers who did buy-in by up to 20%.

How about Honda who is just now putting the finishing touches on a third division to market in emerging markets and to market smaller cars in existing markets. What do they see about more being better that this author missed?

And what about Nissan who has not had great success with Infiniti other than the occasional hit like the G series? Is GM the only manufacturer that hasn't quite got the brand messages clearly defined and separated in the market?

Just look at VW with the Phaeton to see what happens when one big brand holds all of your apples. Too much brand spread is even worse than too many brands.
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Current Driveway Fleet:
2009 Honda Civic Hybrid
2008 Colorado CrewCab Z71 2WD
2008 Suzuki SX-4 Crossover AWD Touring (wife's liking it in the snow)
2005 Malibu Sedan LT2 (college duty)
2003 Porsche Boxster S (sunny days and track events)
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