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A different look at GM's consolidation
There is a lot of talk on whether GM has too many divisions. I propose that GM already has cut more divisions than people generally recognize. Consider:
Old GM
1. Chevrolet
2. Pontiac
3. Oldsmobile
4. Saturn
5. Buick
6. GMC
7. Hummer
8. Cadillac
9. Opel
10. Vauxhall
11. Saab
12. Holden
13. Daewoo
14. Buick - China
15. Partnership with Isuzu
16. Partnership with Fiat (I apologize for reminding people of this one.)
Consolidation
-- Pontiac soon will be exclusively rebadged Holdens (plus the Solstice)
-- Oldsmobile shut down
-- Saturn soon will be exclusively rebadged Opels (plus the rebadged Solstice)
-- Buick appears heading toward becoming rebadged Chinese Buicks
-- GMC is exclusively rebadged Chevy trucks
-- Vauxhalls are RHD Opels
-- With the Chevrolet name taking over Europe, Daewoo appears to be turning into GM's Asian Engineering Center
-- Isuzu partnership is done
-- Fiat partnership is done
New GM
1. Chevrolet/GMC
2. Pontiac/Holden
3. Opel/Saturn/Vauxhall
4. Worldwide Buick
5. Cadillac
6. Saab
7. Hummer
Given all of the talk of further consolidation, I observe the following:
1. It costs GM practically nothing to make GMC products. There is no development costs, and the profit margin on GMC products is sky high. I doubt if there are many stand-alone GMC dealers any more. And GmC sells a LOT of trucks. There is no reason to cut this brand.
2. All of Pontiac's development costs have shifted to Holden. Furthermore, demand for Pontiacs is keeping Holden's production lines going. If GM were to close down Pontiac, Holden would have a hard time surviving. We want Holden to survive because it has a LOT of engineering talent that GM cannot afford to lose.
3. All of Saturn's and Vauxhall's development costs are borne by Opel. Given the distance between Chevrolet and Cadillac in Europe, Opel is not going anywhere. It costs GM practically nothing to rebadge an Opel into a Saturn.
4. The Enclave has shown that the Buick name is not damaged. It just needs good products. Between whoever was responsible for the Enclave and the Park Avenue, there is a place in the market for this brand. The new LaCrosse will prove this.
This leaves Saab and Hummer. With Opel moving upscale to make room for Chevrolet, Saabs really are becoming IKEA-ized versions of GM's worldwide platforms. We all may want to like Saab. We may want to think they are quirky and hip, but they never have sold enough to exist. As for Hummer, the H1 is gone and the H2 is going. That leaves a rebadged Colorado with big wheels and bad aerodynamics. It is finished.
So, sell Saab and close Hummer, and GM will have gone from 16 brands to 5 (with a few extra labels). I say that is enough.
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