[prototype66]

Originally Posted by zete

The number of brands isn't the issue, instead it's the fact each was a full line brand.

What we're seeing now is a niche strategy for specific brands -- Buick, Pontiac, Saturn -- while Chevrolet becomes the full-line brand.

With a niche strategy it will work fine. GM has the reach since they can spread the costs of a specific model around the world. The old GM would have each area have their own cars, but that's slowly disappearing. Pontiacs will be rebadged Holdens, which means Holden has an avenue in North America for their cars. Saturn are rebadged Opels, again, Opel gets an avenue in North America. Buick ends up being a total niche luxury player, focusing on comfort and unpretentious luxury and the Chinese market while Cadillac can go after everyone globally along with Chevrolet.

Killing Pontiac will hurt Holden. Killing Saturn hurts Opel. Killing Buick hurts Buick. And Buick is massive in China.

The article is written by someone who is so fixated on the North American part of GM they don't see the global picture. If the author had dug a bit deeper he'd have realized that what GM has been doing isn't simply consolidating dealerships but consolidating platforms. No longer are we going to see design and manufacturing replicate a small car for every market, instead they're looking at global platforms and global vehicles.

That's what Toyota does. And Toyota has started into niches with Scion.

Niches are the future. They won't sell like the main line, but they will keep people in the family when they no longer want the Chevrolet but want something more exotic. The niche brands will provide that, selling 200,000 - 300,000 vehicles a year tops. And as niche vehicles, GM can keep the supply limited and the profits high while Chevrolet can focus on those looking for a deal. Cadillac, once it regains its old luster, will simply charge a premium for being Cadillac.

And if you want to look at where the niche strategy currently works at GM look no further than Hummer. If that's not a niche vehicle, nothing is.

The most sensible statement made in this thread.