GM's Plan To Cut Models

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GM's Plan To Cut Models

Moving to accelerate the consolidation of its Buick, Pontiac and GMC brands into a single sales channel, General Motors Corp. is warning dealers that only sell the Buick line that they'll have fewer and fewer models to sell in coming years.
The message was delivered Thursday during a meeting in Troy of more than 1,000 dealers from the automaker's north-central sales region, including Michigan, Ohio and Illinois.

Dealers that sell only the Buick line could face financial challenges as GM pares its U.S. model line in response to falling demand. Buick sales are down 17 percent this year and GM told dealers that Buick's product portfolio will be trimmed down to four or five vehicles from eight. The vehicles most likely to be cut are the Rendezvous crossover vehicle and the Rainier, a midsize sport utility vehicle.

To reduce product overlap and save marketing costs, GM is realigning its North America brands and model lineup. Chevrolet and Cadillac will become "foundational" brands with the broadest car and truck portfolios. GM's other six brands will see their product lines pared to only models that meet specific, strategic brand images -- such as trucks and SUVs for GMC.

A big piece of that plan includes selling Buick, Pontiac and GMC cars and trucks at a single dealership, rather than at stand-alone stores. About 50 percent of Pontiac, GMC and Buick stores have already been consolidated.

"It's really getting the role right and the three work together," Mark LaNeve, vice president of sales, service and marketing for GM North America, said during a recent interview.

"I told the dealers straight up, I'd rather you've got three or four great Pontiacs that really deliver on that legendary athletic design or performance and three or four great Buicks that are a cut above," LaNeve said.

In recent months, GM has reached out to reassure and rally dealers as part of a broad initiative to revive flagging U.S. sales that contributed to a $1.1 billion first-quarter loss. In May, GM reported a 13 percent decline in sales, and its overall sales are down 6.7 percent this year. Its U.S. market share has dipped to 25.4 percent from 27 percent a year ago.

Livonia Buick dealer John Rogin said he felt no pressure to buy into the so-called "single channel" concept, but is open to converting at some point.

"We've been a single line dealer for 20 years," said Rogin, who also owns a single-line GMC dealership. "Would I and GM ultimately do better if I had all three brands under one roof? Absolutely. If GM has a plan, we'd welcome a discussion."

Jim Bunnell, North-Central regional manager, and Pete Gerosa, GM North America Vice President field sales, service and parts, said Chevrolet will likely market 23 to 26 models, while Cadillac's portfolio will consist of nine to 11 models. Chevrolet now offers 20 models, not counting medium duty trucks and certain derivative model such as Cobolt SS. Cadillac sells nine models, not including high-performance versions.

Hummer will market four to five different models, up from three choices. Saab's product line will have five to seven models, up from its current four, according to dealers attending the meeting.

Collectively, the Pontiac, GMC and Saturn brands will have 22-27 models, GM executives told dealers, without providing details. The three brands sell 18 distinct vehicles and plan to produce at least four additional models.

Continue Reading.... http://www.detnews.com/2005/autosins...C01-202702.htm

[giagastormer]

Sounds good to me.

Although I don't think Buick should get rid of the Rendezvous. It has been a very strong seller since day one.

[New_Mexico_Sunset_on_Rt66]

I would hope the Velite would be part of GM's plans for Buick. I would say the Velite is "a cut above".

I could see the Velite and maybe a couple other performance, luxurious models. Performance, with a very tastely trimmed out interior, to steal sales from Lexus.

[hc_earwicker]

This is a wild idea but the next two candidates for consolidation are Saturn and Hummer . They have non overlapping product lines and they are both brands that people who otherwise won't touch a domestic would consider. The only thing standing in the way would be Saturn's fixed-price policy.

- HCE

[wpbharry]

I've read several press articles on this in the past hour or so, and it seems to me, that when you read between the lines, that GM actually plans to INCREASE the number of its models, just shuffle them around. Chevy, Cadillac, Hummer, Saab and Saturn all plan on more models. Only P-B-GMC lose a few.

Ya have to wonder if they really have much of a clue....

[Mcmflow]

Originally Posted by giagastormer

Sounds good to me.

Although I don't think Buick should get rid of the Rendezvous. It has been a very strong seller since day one.

I don't think so either, and if they do they should have something similar to it to replace it with.

[x2222]

Well that makes sense, Buick probably shouldn't have a large suv and the rendezvous will be repalced by a lambda crossover soon. The models to worry about are the cars and buick is really the odd brand out when it comes to platforms. They were just forgotten about and even screwed with GMs obligations to saab. As nice as the new lucerne its clear that its generations behind what lexus and the germans are offering for that class. Those cars won't last too long on the market but the qeusiton is whats next for it and the lacrosse.

[saturnsteve]

Saturn is adding three or more models very soon, and we keep hearing about a pickup!

[tama z71]

saturn pickup? only good if its an el camino

[jcrosser]

Originally Posted by tama z71

saturn pickup? only good if its an el camino

Holden UTE???

[JVal14]

Originally Posted by saturnsteve

Saturn is adding three or more models very soon, and we keep hearing about a pickup!

Whhuuuuhh?? I've no knowledge of this. What are they thinking? GM already has three brands that sell pickups. THREE! How can you get away from overlap when you have three companies selling pickups off the same platform? Oh well, just hearsay for now, right?

To reduce product overlap and save marketing costs, GM is realigning its North America brands and model lineup. Chevrolet and Cadillac will become "foundational" brands with the broadest car and truck portfolios. GM's other six brands will see their product lines pared to only models that meet specific, strategic brand images -- such as trucks and SUVs for GMC.

Boys and girls, this is what we call "walking the walk." Let's hope they actually execute this time.

[ponchoman49]

AT long last someone is seeing sence. The fact that Buick ever had a GMT360 and Rendevous crossover was laughable enough. The fact that the GMT360 was an obvious clone of the other was even worse. The one thing that was neat with the Buick was the optional V8 on the regular length model. Though I hardly ever see any. It would be so easy for Chevy and GMC to offer this same V8 in the regular model as Ford does with the Exploder. Buicks lineup should look like this:\

1)LaCrosse 3500 base model for around $23K
2)LaCrosse CSX with 3.6 DOHC and leather for around $26K
3)Lucerne base with cloth seats and 3.6 DOHC for $26K
4)Lucerne CSX with V8, leather, roof and lots of features for around 35K
5)Velite roadster with some kind of V6
6)Terrazza van with std 3900
7)Some kind of rear drive full size flagship with a 303hp 5.3 V8 (Lausanne)
Drop the Rendevous and Ranier.

[mkwelbornjr]

Buick should drop the Ranier, Lacrosse, and Minivan. Pontiac should also drop the minivan.

Originally Posted by giagastormer

Sounds good to me.

Although I don't think Buick should get rid of the Rendezvous. It has been a very strong seller since day one.

[vaillanct]

The article does not mention that at the meeting it was also stated that Pontiac would have 6-8 models.

[RWD60]

Originally Posted by vaillanct

The article does not mention that at the meeting it was also stated that Pontiac would have 6-8 models.

solstice, G4, G6, GP/G8, GTO, sporty crossover... that's 6... sounds good.