Business Week: Which Auto Brands Should Go?

[1957wildcat]

Jim Henry has written an article, "Which Auto Brands Should Go?," for Business Week. As he admits, it's not easy to choose. To read the piece, click here: http://www.businessweek.com/lifestyl...052_143266.htm

I'm happy that he points out, referring to Buick - Pontiac - GMC (B-P-G), that Buick is in the strongest position globally.

[zete]

It's not an issue of too many brands but too much overlap. You can support multiple brands so long as they have unique identities and they need to be niche players and not full line brands. That was the problem GM got into when times were good, each became a full line. What GM is slowly doing to Buick and Pontiac is good. It'll make each a niche brand. Both can do very well that way. They won't be pulling down numbers like they did in the 80s but that's fine.

And I would not be at all surprised if Toyota comes up with one or two more brands in the near future. A hybrid line would not surprise me nor would a performance brand.

[mgescuro]

Originally Posted by zete

It's not an issue of too many brands but too much overlap. You can support multiple brands so long as they have unique identities and they need to be niche players and not full line brands. That was the problem GM got into when times were good, each became a full line. What GM is slowly doing to Buick and Pontiac is good. It'll make each a niche brand. Both can do very well that way. They won't be pulling down numbers like they did in the 80s but that's fine.

This can't be right. Did we actually agree on something?
The problem is, I don't believe GM has the ability to resist not making Buick and/or Pontiac a full line again.

Having a lot of brands is one thing. Having a long of brands and overlapping is another.

GM hasn't had the time or patience or ability to give each brand their own unique identity or properly differentiate each car that shares platforms and technology.

Now with the consolidation of platforms, they risk creating the same problem that VW has -- too many cars, not enough platforms.

[VibenPontiac]

I agree its not the number of brands but the number of vehicle models that needs to be changed. Pontiac doesn't need 6-10 vehicles depending on how you want to count the three G6 vehicles. It only needs four, Buick only needs four etc...

[BigThreeForever]

Which auto brands should go?

I vote for Toyota, Scion, Lexus, Honda, Acura, Nissan, Infiniti, Mazda, Mitsubishi, Subaru, Suzuki, Hyundai and Kia.

[YupYupYup]

Originally Posted by BigThreeForever

Which auto brands should go?

I vote for Toyota, Scion, Lexus, Honda, Acura, Nissan, Infiniti, Mazda, Mitsubishi, Subaru, Suzuki, Hyundai and Kia.

Ha, ha!

[Lunden]

God I have way to many ideas and not enough reaserch to back them up. WHich is why I never reply to posts like this.

[VCDJ]

GM should just change name from ponitac to holden and bring all holdens here. Ponitac has very bad reputation among younger people. They will never even consider buying one. Saturn should change name to opel and bring all opel's here not just some. Let opel and holden manage those brands. That way you will not have many angry dealers and you will cut two devisions. GM please sell hummer and saab. How many customers did gm lose because of hummer?? And why do you have saab??. That way you would get rid of two devisions and gm would probably be profitable again. They would be able to focus more on other brands and make them better. GM is stupid why do they have hummer and gmc. Why couldnt the give h2 to gmc and h3???? GM is expert at wasting money. No wonder they are losing billions each year.

[KingElvis]

I read in Automotive News that Jerry York (Kerkorian's octagenarian mouthpiece) was advising Ford, now with a substantial chunk of stock owned by Kerkorian, to sell Mercury...and Volvo.

Sell Mercury. Right. To whom?

Maybe we GMIers could scrape our money together and take it off of Ford's hands for a song. Then we could produce a limited run Cougar kind of like they did with the Avanti after Studebaker died.

[megeebee]

Wow. So he would kill ALL FORD BRANDS EXCEPT FORD ITSELF?
I have to agree with Hummer. It seems a very limited appeal. But if it can be shown to be profitable, then keep it.

I can't imagine GMC being killed. The Acadia is doing well. Like Mercury and Lincoln, it is just a brand name that exists for marketing reasons, not a seperate division. Most of it's products are barely redecorated versions of Chevy's. The only cost to GM is the few trim bits that identify the prodcut as GMC.

I have to wonder why Buick isn't on this list.

And I can't agree more with Maybach. Between the billions invested in that, and the decade long mis-adventure with Chrysler, I'm suprised Daimler has any money left at all.

[zete]

Originally Posted by mgescuro

This can't be right. Did we actually agree on something?
The problem is, I don't believe GM has the ability to resist not making Buick and/or Pontiac a full line again.

Having a lot of brands is one thing. Having a long of brands and overlapping is another.

GM hasn't had the time or patience or ability to give each brand their own unique identity or properly differentiate each car that shares platforms and technology.

Now with the consolidation of platforms, they risk creating the same problem that VW has -- too many cars, not enough platforms.

Stranger things have happened.

I hope they do resist. Their future depends on it. Making each brand unique is key, and making Chevrolet the brand that goes against Toyota is the way to go. Pontiac and Buick can be such effective niche brands if given the chance. It'll take time, but perceptions can be turned around. GM did it with Cadillac and are now doing it with Buick. Pontiac has a bit of help with the Solstice but needs more than the Solstice and G8. It needs a proper small and mid-size RWD/AWD vehicle to properly compete. Keep the numbers down, share it with Holden and it should do exceptionally well.

GM ruined their reputation one car at a time and it'll take one sale at a time to rebuild it. But it is doable.

And I do think GM has enough platforms either available or in the pipeline. The trick is to use them judiciously.

[megeebee]

Originally Posted by KingElvis

Sell Mercury. Right. To whom?

Exactly! There's nothing to sell. Just a name, and a name who's reputation (if it has any) is of slightly rebadged versions of cheaper vehicles. I often wonder why Kerkorian and his yes-man have so much money when they should both know things like this.

[johnny smallblock]

I think we can all agree that Suzuki and Mitsubishi should go.

[cbennie2]

Originally Posted by VCDJ

GM should just change name from ponitac to holden and bring all holdens here. Ponitac has very bad reputation among younger people. They will never even consider buying one. Saturn should change name to opel and bring all opel's here not just some. Let opel and holden manage those brands. That way you will not have many angry dealers and you will cut two devisions. GM please sell hummer and saab. How many customers did gm lose because of hummer?? And why do you have saab??. That way you would get rid of two devisions and gm would probably be profitable again. They would be able to focus more on other brands and make them better. GM is stupid why do they have hummer and gmc. Why couldnt the give h2 to gmc and h3???? GM is expert at wasting money. No wonder they are losing billions each year.

Do you even think your posts through or just spout whatever you think sounds ok? So Pontiac should have a full line of holdens...no overlap with Saturn especially Astra. Why should Pontiac have a full range of vehicles while it is together with Buick-GMC? Plus GM would have to divert resources to advertising a new brand name. Doesn't Pontiac have a high conquest rate with first time buyers too?

Saturn is suppose to have Opel's lineup by 2012 or so. What is the point of changing another brand name and divert resources on advertising the new names when they can use that money to build the brands up.

I don't know that Hummer would fit into GMC's lineup. Especially since GMC are known for their professional grade/luxury lineup. Hummer is known for their off road ruggedness. Since Hummer also sells at a premium, I doubt that GM is truly losing money by selling them. In addition, Hummer is a global brand for GM, so why not have it here in NA?

Saab-I can go either way. They haven't positioned them yet as a truly competitive world car. The upcoming products sound very promising on what will help boost Saab as a great carmaker though.

Finally, closing divisions would be the best way for GM to lose even more money. The Oldsmobile shuttering shows that it costs a ton of money to close a division and in return maybe or maybe not keep those customers by having them go to another GM brand. In the case of Olds, it didn't work out real well for the other brands to gain them as customers.

[CharlotteFirebird]

Originally Posted by BigThreeForever

Which auto brands should go?

I vote for Toyota, Scion, Lexus, Honda, Acura, Nissan, Infiniti, Mazda, Mitsubishi, Subaru, Suzuki, Hyundai and Kia.

Funny! Don't forget Mercedes, BMW, and VW.