Quote:
Originally Posted by vxl
I would have thought that the last thing GM need do is close another division. Haven't they learned from Oldsmobile that it costs a lot of money to do this, never mind loss of customers. Surely GM hasn't sold all its subsidiaries simply to squander the proceeds? (American Axle springs to mind)A very valid point was mentioned in a previous thread stating how unviable the combined GMC/Pontiac/Buick network would become if one of the brands was removed (hasn't GM just reinforced this dealer approach recently?)
I now believe, in the next decade if GM remains independent, it will have been surpassed by Toyota, Renault/Nissan, VW and probably Ford. GM's fall from grace should be used as proof of the myth of the "great American businessman" - never has a company been so mismanaged.
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It costs a lot of money, yes, but it also costs a lot to keep a whole bunch of unproductive divisions too. There is a reason why the more productive companies have 2or 3 max brands. It's too hard to market cars for 7 brands, and it's even harder to keep cars for 7 brands all fresh. They've learned that from what they did with Saturn and Cadillac. They make one division great, but in the couple years that takes, everything else gets stale. Then they move on to the next brand, but the one they just did starts to fester before they finish the next one. It's like herding cows. If you get one in the fence and leave the gate open, it's going to be gone before the next one is in.