Buick, Pontiac, GMC Channel Working

[T-Type]

By Derek Stark
WardsAuto.com, Jul 17, 2008 11:52 AM

General Motors Corp. says its strategy of grouping its Buick, Pontiac and GMC brands into one distribution channel, which began in 2002, is working.

The 1,600 dealers currently aligned with the B-P-G channel account for approximately 80% of the sales from the trio of GM nameplates.

“This is a great channel, with three strong differentiating brands and a strong dealer body,” says Susan Docherty, named GM’s North America vice president-BPG channel, three months ago. “The B-P-G channel has some good momentum, and we plan to build on that.”

Getting the dealers aligned into one channel has been one of GM’s top priorities for the last three or four years. “And we are continuing to work to align dealers along the B-P-G channel, because this makes good business sense,” she says.

“In recent weeks, there have been several articles commenting on the numerous potential auctions by GM in response to these difficult industry and economic conditions. Though the significant shift from trucks to cars and crossovers is a new reality, General Motors and Buick-Pontiac-GMC have performed well in several growing segments.”

http://wardsdealer.com/latest/gmc_channel_working/

[mpsrent]

It's a format that has worked well in Canada for decades.

[jckjds]

Well, from a dealership perspective, it seems to be going well, but this article doesn't even touch on some of the product integration issues.

There is STILL too much overlap in product. My understanding of PBG was that it was supposed to save GM money by, essentially, condensing 3 brands into one -- which should, hypothetically, greatly reduce overlap. That has happened to some extent, but not enough.

Pontiac should be limited to 3 cars. Solstice, Alpha G6, and Zeta G8 (coupe versions could be utilized as Firebirds and GTO's.

Buick should be limited to two cars and MAYBE the Enclave. A Midsize FWD near lux car and a large FWD near lux car is all that Buick NEEDs. The Enclave could be kept around bc of its success, but with GMC providing the Truck/SUV component of the trio, this creates a little overlap. But, one overlapping vehicle isn't bad, especially when it's as well done as the Enclave.

GMC should provide all of the Trucks and SUVs for the grouping.

THAT'S IT. NO MORE G5'S AND STUPID REBADGES. These should be niche cars, not mass sellers -- that's what Chevy is for. Furthermore, Pontiac's cars should be almost identical to their Aussie counterarts to create additional savings. Honestly, with the direction Opel is headed, GM should probably go ahead and ditch Saturn and make Buick rebadged Opel's (like the new insignia instead of the so-so Lacrosse replacement, and a larger car of the same design to replace the Lucerne.

[Ming]

Originally Posted by jckjds

Well, from a dealership perspective, it seems to be going well, but this article doesn't even touch on some of the product integration issues.

These should be niche cars, not mass sellers -- that's what Chevy is for.

Tell the dealers that they won't have a relatively inexpensive gas sipping compact for a small, young family of 2+1 kid, because I didn't see one in your list. Your lineup leaves BPG dealers particularly vulnerable in an environment of $4.00 gasoline. And the G6 -- well it needs some serious updating to remain competitive in the larger market.

Giving them only what you specified looks more like a BMW dealership's showroom (plus trucks), and I don't think most Americans are ready to pay top dollar for Pontiacs and Buicks. At least not yet.

That said I agree they should not rebadge as many Chevies as they do (and should limit how far downscale they go), which has been the modus operandi of BPG for too long.

Pontiac could have a version - a unique version - of the Astra when it goes into production here in the U.S. But it should be offered as a performance tuned car more like the Opel OPC Astra, not just the more ho-hum Saturn versions.

[windvale]

Two questions:

Define "working" ?

At what cost ?

[wescoent]

Originally Posted by Ming

Tell the dealers that they won't have a relatively inexpensive gas sipping compact for a small, young family of 2+1 kid, because I didn't see one in your list. Your lineup leaves BPG dealers particularly vulnerable in an environment of $4.00 gasoline. And the G6 -- well it needs some serious updating to remain competitive in the larger market.

Giving them only what you specified looks more like a BMW dealership's showroom (plus trucks), and I don't think most Americans are ready to pay top dollar for Pontiacs and Buicks. At least not yet.

That said I agree they should not rebadge as many Chevies as they do (and should limit how far downscale they go), which has been the modus operandi of BPG for too long.

Pontiac could have a version - a unique version - of the Astra when it goes into production here in the U.S. But it should be offered as a performance tuned car more like the Opel OPC Astra, not just the more ho-hum Saturn versions.

You hit the nail on the head.

Buick-Pontiac-GMC is a mistake. The channel should be Saturn-Pontiac-GMC, and then pair Buick with Cadillac.

This way, Saturn can be the shockingly fuel-efficient and upscale car, while Pontiac takes those same models, and sports them up. Then GMC covers anyone who wants a truck or crossover.

[Dennis214]

Nevetheless, there is still no justification whatsoever for one manufacturer to have TWO Full size truck Divisions. GMC must fit into a successful BPG channel with small suv's and crossovers that are distinct from Chevy, or simply go away...

[Flyingbunnys]

It's hard to say that GMC should "go away" when they have success, Plus GMC and Buick make a great match since both are suppose to be "fancy Chevys" I'm not sure if Pontiac fits but Pontiac is such a disaster it has to go somewhere.

I agree with this but I would like to make one addition.

Well, from a dealership perspective, it seems to be going well, but this article doesn't even touch on some of the product integration issues.

There is STILL too much overlap in product. My understanding of PBG was that it was supposed to save GM money by, essentially, condensing 3 brands into one -- which should, hypothetically, greatly reduce overlap. That has happened to some extent, but not enough.

Pontiac should be limited to 3 cars. Solstice, Alpha G6, and Zeta G8 (coupe versions could be utilized as Firebirds and GTO's.

Buick should be limited to two cars and MAYBE the Enclave. A Midsize FWD near lux car and a large FWD near lux car is all that Buick NEEDs. The Enclave could be kept around bc of its success, but with GMC providing the Truck/SUV component of the trio, this creates a little overlap. But, one overlapping vehicle isn't bad, especially when it's as well done as the Enclave.

GMC should provide all of the Trucks and SUVs for the grouping.

The addition is Pontiac
Solstice, MazdaSpeed/Mazda 3 fighter, G6/Firebird, G8/GTO.
Buick needs a mid sized sedan and a full sized sedan.
GMC can continue as is.

[leelander]

Originally Posted by Dennis214

Nevetheless, there is still no justification whatsoever for one manufacturer to have TWO Full size truck Divisions. GMC must fit into a successful BPG channel with small suv's and crossovers that are distinct from Chevy, or simply go away...

i dont know we sell both GMC and Chevy, and there are some people who wont buy the chevy, and vice versa. last summer was awesome, we had a choice of four different models of pickups when they were switching over to the GMT900's. maybe not useful, but our customers really liked it.

[milton112c]

GM should have two full lines of cars Chevy and BPG. Essentially that is what BPG is, except under 3 different nameplates. Opel is a full line-up of cars in europe, and thats what Buick and Pontiac should consist of. The Insignia is the perfect car for buick (i personally believe it could even pass as a caddy). Sport tuned hatch backs such as the corsica arctic and 2.0L turboed astra would really fit into Pontiac. Granted we all view Pontiac as a big muscle car with 400 hp and a V8 that gets 8 miles to the gallon, but with 4 dollars a gallon here to stay, pontiac's image needs to change in order to survive in this new american market. With smaller cars, it is the perfect mazda competitor. A solsitce, solstice coupe, a couple of sporty hatchback/sedan combinations (mazda 3) and the G6 and G8 is a perfect line up.

[CadiEldo67]

Well, if GM is willing to admit that this setup is indeed working, then Pontiac and Buick need to fill in the gaps for each other, and GMC only worries about GMC. For example:
Pontiac has a Solstice(and I would give them the sedan version of the Astra with Solstice styling), Alpha G6, (hopefully Grand Prix) and a G8 (Bonneville), with coupe versions of the GP/Bonnie being the Firebird and GTO, respectively. So that leaves Buick room for a Delta II vehicle(Invicta), FWD, a midsized FWD car (G6 sized- LeSabre) and the Enclave.
GMC would have the Terrain(in both short and long wheelbase forms, to efficiently axe the Acadia.) The Canyon and Envoy would be mechanical twins, as the Sonoma and Jimmy were, and would be built on a SWB Lambda. Using the 3.0 and 3.6DI as their engines. Then the Sierra and Yukon, which would remain BOF, as they aren't going to disappear overnight. And rather than just a Savanna for contractors, the GMC Savanna is a conversion van only, and its the nicest conversion van this side of a Cadillac.

That leaves the B-P-G lineup with a
Solstice/Astra
Grand Prix/Firebird
Bonneville/GTO

Invicta
LeSabre
Enclave

Canyon/Envoy-Lambda
Terrain (Long and Short Wheelbases)
Sierra/Yukon
Savanna

[jckjds]

Originally Posted by Ming

Tell the dealers that they won't have a relatively inexpensive gas sipping compact for a small, young family of 2+1 kid, because I didn't see one in your list. Your lineup leaves BPG dealers particularly vulnerable in an environment of $4.00 gasoline. And the G6 -- well it needs some serious updating to remain competitive in the larger market.

Giving them only what you specified looks more like a BMW dealership's showroom (plus trucks), and I don't think most Americans are ready to pay top dollar for Pontiacs and Buicks. At least not yet.

That said I agree they should not rebadge as many Chevies as they do (and should limit how far downscale they go), which has been the modus operandi of BPG for too long.

Pontiac could have a version - a unique version - of the Astra when it goes into production here in the U.S. But it should be offered as a performance tuned car more like the Opel OPC Astra, not just the more ho-hum Saturn versions.

Well, Ming, I don't totally disagree. While i think a FWD Astra knock off would, to some degree, dilute the Pontiac REWD performance image, I can understand why that would be a favorable move and I wouldn't necessarily oppose it.

However, I think your post ignores a couple of things. First, my list has some fuel efficient offerings that you're ignoring. An Alpha-based car SHOULD be able to attain solid fuel economy figures if properly designed. As long as alpha is not too much of a porker and it is offered with some efficient 4 bangers, it should be able to get 30+ on the highway (note the last gen MB C230 series was rated at 24/32 mpg). Furthermore, the Buick FWD cars, esp the invicta/lacrosse should be able to achieve solid MPG figures (see malibu).

Second, the PBG channel should be NICHE cars, not mass sales offerings (again, that's Chevy). True, lower mpg cars aren't going to appeal to everyone, but that's okay with NICHE brands. To be sure, GM needs to do the best it can to improve ALL of it's vehicles' MPG's, but perofrmance oriented vehicles are naturally going to be somewhat lower fuel economy, and that's okay. PBG won't, under my scenario, have any ULTRA high mpg cars, but it will have some solid, relatively fuel efficient offerings (alpha pontiac, and the Buick cars). Several other smaller manufacturers and niche brands lack an ultra high mileage compact/subcompact. That's okay.

[TruckMan]

Originally Posted by wescoent

Buick-Pontiac-GMC is a mistake. The channel should be Saturn-Pontiac-GMC, and then pair Buick with Cadillac.

This way, Saturn can be the shockingly fuel-efficient and upscale car, while Pontiac takes those same models, and sports them up. Then GMC covers anyone who wants a truck or crossover.

I can see Saturn combined with BPG, but Buick and Cadillac are virtually competitors of each other - they both aim to be luxury brands. Chevy and Caddy go together while SBPG go together.

And I'm a supporter of platform sharing (aka rebadging). I think it brings more GM vehicles to market, gives the consumer more choices, and saves GM money. Like I always say, it not all about Chevrolet sales (or Saturn or GMC or Pontiac, etc), it's about GM sales.

[Hurricane]

Originally Posted by Ming

Pontiac could have a version - a unique version - of the Astra when it goes into production here in the U.S. But it should be offered as a performance tuned car more like the Opel OPC Astra, not just the more ho-hum Saturn versions.

I am not a huge Pontiac fan but I think this is a fantastic idea! If they are going to be about performance, then they need this kind of car!

[TruckMan]

Originally Posted by leelander

i dont know we sell both GMC and Chevy, and there are some people who wont buy the chevy, and vice versa. last summer was awesome, we had a choice of four different models of pickups when they were switching over to the GMT900's. maybe not useful, but our customers really liked it.

EXACTLY! More vehicles = more options for customer = more GM sales.