GM Responds To WSJ Article; Says Besides Hummer, No Brands Are Under Strategic Review

[Perian]

Link: http://www.bloomberg.com/apps/news?p...2FY&refer=home

GM Says Hummer Is Only Brand Being Reviewed for Sale, Shutdown

By Jeff Green

July 7 (Bloomberg) -- General Motors Corp. said Hummer is the only one of its eight U.S. brands being formally reviewed for a possible sale or shutdown as the automaker's domestic market share falls to an 83-year low.

The Wall Street Journal reported today that the biggest U.S. automaker may sell or scrap more brands and its directors will likely approve the elimination of thousands of additional salaried jobs at next month's board meeting.

GM spokesman Tony Cervone wouldn't comment on possible job cuts and said no brands are under ``strategic review'' beyond Hummer. Detroit-based GM said June 3 it's studying all options for the Hummer sport-utility line, including a sale.

``It's still a huge expense to get rid of a brand,'' said Alan Baum, an analyst for Planning Edge in Birmingham, Michigan. ``There are dealer issues and legal issues.''

Full article at link.

[windvale]

Too bad...

Back to business as usual.

[osv_alero]

I guess all those that had love for GMC, Pontiac, Buick, Saab & Saturn can rejoice!

[gmmerc5]

You guys think GM will tell you what they are really thinking? Everything is subject to change.

[vcs2600]

"We are going to let our stock slide down even further" -- GM Management

[Supremus]

Yeah, right.

And the next Saturn Aura and GMC Acadia were put on hold why, exactly?

[nsap]

Originally Posted by osv_alero

I guess all those that had love for GMC, Pontiac, Buick, Saab & Saturn can rejoice!

I wouldn't break out the party supplies just yet. GM isn't telling the whole story to the public, that much I can tell you.

[CobaltSScrazy]

Hmmmmm...

I just hope GM can pull through 2010 and get Volt, Cobalt, Aveo, next gen Aura/G6/BLS/Malibu all out on market. 2 modes in everything, especially VUE out as soon as possible!

The next few years could be game changer ones as GM product becomes superior to its japanese counterparts. Same with Ford and their new product.

CobaltSS

[steverino]

Oldsmobile cost GM a small fortune and no upside in goodwill. These brands have GM painted into a corner. Only why out is to put dealerships under one umbrella.... GENERAL MOTORS. This gives GM the ability to shutdown one brand at a time without buying off dealers and it comes down to the survival of the dealerships that give the customer the best service and sales experience. This the most cost effective and least stressful way out.

[Cortazzo]

Unless GM wants to make PBG into boutique brands that sell less than 100k units per and thrive on word of mouth and cheap internet buzz, they can't sustain them to any meaningful degree. Too many brands, too many nameplates. I forgot where i read this, but camry gets several times more marketing support than malibu, because GM also needs to advertise for their other gaggle of midsize sedans. Though they are correct, shedding brands is sadly expensive.

[Bvonscott]

Good. Sell hummer, and maybe SAAB, leave my beloved GMC alone!

[jkennedy293]

I think by 2010, GM will dump at least two other brands besides HUMMER. It seems logical to just close the entire BPG segment, and make SAAB a Euro only brand.

[ksr]

If you truly start making them one dealership and thinking of them that way, Buick-Pontiac-GMC, even with current products, is a pretty nice lineup.

They need to perhaps create some sort of new name for the combined BPG dealers, still calling the individual models Buicks, Pontiacs, and GMCs, but with some sort of umbrella name to call the dealership itself.

They can't afford the cash it would take to close another dealership as with Oldsmobile.

[vcs2600]

Originally Posted by steverino

Only why out is to put dealerships under one umbrella.... GENERAL MOTORS. This gives GM the ability to shutdown one brand at a time without buying off dealers and it comes down to the survival of the dealerships that give the customer the best service and sales experience. This the most cost effective and least stressful way out.

This seems like a very attractive plan. In one fell swoop they could eliminate all the rebadge models and lame-ducks. And this would provide a way to transition customers from the 'damaged brands' to the strong ones over a number of years.

As a practical matter, GM dealerships have a mish-mash of different brand combinations already. In many cases the dealers are already selling Cadillacs along side Chevrolets or Buicks along side Saturns. GM executives pretend their "sales channels" have some sort of identity, but to the average consumer it already looks like 3-5 random American brands on the same lot.

[paul8488]

Saab and Hummer could go with barely a blip on the volume radar screen. There is some profit at Hummer I suspect, but that only make it easier to sell right now.