GM likely to drop overlapping models instead of brands

[nadepalma]

SOURCE: Motor Authority

GM likely to drop overlapping models instead of brands
Posted on Tuesday 8 July 2008

General Motors has widely been reported to be considering dropping several brands as it struggles in a climate of falling demand, rising fuel prices and material costs and increased competition, but the carmaker insists that the only brand under review is Hummer. Reports emerged earlier this week claiming Pontiac, Saab and Saturn were also possibilities for being axed, however GM sales chief Mark LaNeve has reassured dealers that the carmaker is not conducting a strategic review of any brands other than Hummer.

What GM hasn’t ruled out is the possibility that several overlapping models, especially in the SUV and pickup segments, could be dropped. An inside source has revealed to The Detroit News that GM’s operations review will result in the purging of overlapping models and a shift in emphasis to more fuel-efficient cars.

GM currently spends money developing and marketing similar vehicles under several different brands but achieves sales comparable to competitors with fewer models in the same segment, and often only a single model. Its current portfolio also includes 12 different SUV models among eight brands, and only four compact or subcompact cars that the market is demanding.

MORE HERE

[nadepalma]

GM had this idea before. It was part of the reason it looked to consolidate the dealership network into Chevrolet, Saturn, Pontiac-Buick-GMC, and Caddy-Saab-Hummer.

However, even if GM did kill overlapping models, the dealership network would have a fit. I'm not saying it's not possible to kill enough overlapping products to keep every brand viable - but it's highly unlikely without pissing off the dealers enough that GM would have a revolt on their hands.

I think that Chrysler can get away with this since they are consolidating they plan on selling all three brands under one roof. I also think that Ford can come closer to this as their brands become more focused post the divestiture of LR/Jag, Aston Martin, and the possible sale of Volvo.

But GM? They'd have to have one hefy carrot waiting to keep the dealerships in line forsomething like this to truly happen...

Just my opinion of course.

[CamaroCrazy]

This sounds more realistic than killing whole brands. Dropping the Outlook and introducing more Opel products would help Saturn. I think Buick could get by with the Enclave and 2 cars, as long as the cars are class-leading (news to Buick: right now, they ain't)

But how does the GMC Terrain and Pontiac G3 and G5 fit into all of this? There's your overlap.

[JeffInDFW]

GM said they were going to do this years ago, then the Pontiac dealers whined when Chevy got the Cobalt but they didn't get anything to replace the Sunfire.....So, GM caved in and gave them the G5, even though it absolutely did NOT fit in with what they claimed they were trying to do with Pontiac.

So, will GM have the balls to do the right thing THIS TIME, or will they fold to their idiot dealers again?

[DiRF]

But if they remove overlapping models, won't that effectively kill GMC anyway, since it basically is only a rebadge-king now?

[jkr2106]

Originally Posted by nadepalma

GM had this idea before. It was part of the reason it looked to consolidate the dealership network into Chevrolet, Saturn, Pontiac-Buick-GMC, and Caddy-Saab-Hummer.

However, even if GM did kill overlapping models, the dealership network would have a fit. I'm not saying it's not possible to kill enough overlapping products to keep every brand viable - but it's highly unlikely without pissing off the dealers enough that GM would have a revolt on their hands.

I think that Chrysler can get away with this since they are consolidating they plan on selling all three brands under one roof. I also think that Ford can come closer to this as their brands become more focused post the divestiture of LR/Jag, Aston Martin, and the possible sale of Volvo.

But GM? They'd have to have one hefy carrot waiting to keep the dealerships in line forsomething like this to truly happen...

Just my opinion of course.

I agree it would be difficult and I think it is what's necessary. While the channel strategy is a good idea, I think having all brands under one roof is the only way to go as far as eliminating overlap. Failing that, Pontiac will want an Aveo despite being an excitement brand and Saturn will want an Outlook despite Euro intentions.

If every dealer had all 8 brands, they'd be less inclined to press for models that cheapen a brand's image.

[plane]

Do we keep Solstice or Sky?
G5 or Cobalt?
Torrent, Vue or Equinox?
Malibu, G6 or Aura?
Acadia, Enclave, Outlook or Traverse?
Colorado or Canyon?

Oh the choices.

[rhvfd10]

As was said, it was tried before and they couldn't resist doing it again. This kind of logical thinking is too much for GM management therefore I predict nothing will come of it.

[Hitman1970]

I think you must look at P-B-G, Saturn, Chevrolet, and Cadillac as four separate brands. When you look at those as four unique brands the only overlap I see is G-6/LaCrosse and Acadia/Enclave. Acadia is already reported dead past 2012. I see G-6 sedan going away all together maybe the G-6 Coupe and Convertible surviving. I did not include Torrent/Terrain as that is already a planned swap.

[jaywestfall]

Then this must mean Pontiac gets the Alpha G6 early skipping the FWD/AWD Epsilon II one, right

[steve333]

Originally Posted by nadepalma

SOURCE: Motor Authority



MORE HERE

why do I see no text at this link?

[CadiEldo67]

Chevy: as is
Buick: Invicta/Park Avenue/Enclave
Pontiac: Grand Am/Grand Prix/Bonneville
GMC: doesn't have work truck models, have cloth seats, leather steering wheels, alloy rims, all that stuff, to make the brand truely professional. Since gas prices continue to rise, the B-P-G dealerships will truely be niche brands. I actually think that Hummer should get folded into the B-P-G dealership.

Saturn: Astra/Aura/Zafira
Saab: 9-3/9-4/9-5/9-6*(would be coupe version of 9-5, like BMW)
*These two brands are sold together, in the GM European collection.

Cadillac: ATS/BTS/CTS/DTS/-no Escalade, no SRX, save the SUV's for GMC

I'm seeing 4 channels, like what GM suggested, but switched up ever so slightly.
Chevy: Bread and Butter
B-P-G-H(Hummer): Niche
Saturn/Saab: GM Euro
Cadillac: Luxury
This defeats most to all overlap, as Chevy, Saturn, and Cadillac will become the volume leaders. While B-P-G-H all are built and designed for the customer who wants more performance, more luxury, but not as much as a Caddy, better off-roading abilities, or truely professional grade.
*And Hummer should expand down-market. I'm thinking that there should be a lineup consisting of a:
H2:Lambda
H3:GMT-355
H4:Theta
H5elta II
Hummer goes against Jeep and Land Rover, all in one lineup. While boasting better fuel economy than its competitors.

[SpaceCowboy]

It is a little difficult for me to comment, seeing as Australia does not have as many GM brands as the US so the overlap here is nowhere near as bad, but in my mind this makes sense, after all these brands are each meant to embody something different so is it really necessary for them to offer Malibu, G6 and Aura, for example?

Good product rationalisation should see sucessful platform sharing without badge engineering and every vehicle should have a distinct point of difference. It gets a little bit muddier when it comes to GMC/Chevy trucks and if any brand were to go, GMC could at least be absorbed into Chev, parhaps offereing the Denali as a trim/spec package.

A good modular RWD architecture should be developed to allow multiple size RWD cars for Caddy and Pontiac (and Holden too) with a couple of FWD platforms to service Saturn (Opel/Vauxhall), Chev, Saab and Buick. All while cutting the fat that seems to be biulding in GM's catalogue.

Of course this may just be another of those grand declarations that never seems to be put into effect, but by the sounds of it it is the kind of thing which needs to happen soon!

[FenwickHockey65]

Interesting...
I say keep GMC, but like EVERYBODY on this forum has said, make GMC into a "professional grade" version of Chevy, whatever the hell that means.

[mgescuro]

OH FOR ****'S SAKE GM!!!!!!!!!!!!!!!!!!!

GM said this... 1 year ago... 3 years ago... 5 years ago... 10 years ago... 12 years ago... 15 years ago...
And guess what....
WE STILL HAVE OVERLAPPING MODELS!!!!

Remember the last time? Lutz said that "GM would be coming out with more unique vehicles, doing more with less."
What did we get? We got the G5 and the Torrent.

How many friggin Lambdas do we have?? Oh... we have FOUR!!! How is that NOT overlap? And rumor is Escalade may move to Lambda???? WTF???
Well, there's technically no "overlap" there, right?

Why should we as consumers believe GM? They haven't been true to their word!!!

As far as GM is concerned, LaNeve, Lutz, and Wagoner can go lick my batwings....