GM's Troubles: Will It Sell Off Brands To Stay "Alive"?

[doh]

http://www.cnbc.com/id/25567854/site...t%7C&par=yahoo

As GM slogs through a summer of sickening sales, there's growing speculation GM CEO Rick Wagoner will do an about face and finally cut some of the automaker's brands in an effort to stop the bleeding.

While I've never believed a company can cut its way to profitability, I do think there's no time like the present to shed the brands that don't work and re-focus GMGENERAL MTRS CORPGM
10.12 UNCH 0 NYSE


Yes, Jerry York, we know you suggested this a few years back, but that's a discussion for another time.

So what brands do you kill or sell?

Buick:Sales are down more than 21% this year, and it now represents just 4% of GM's total sales. Sorry Enclave fans, but this line-up does very little to bring in buyers. The demographics of Buick buyers is old, the brand is tired, and there is a dwindling and increasingly competitive market for cars and trucks that fall just below the luxury line.

Saab: Sales are down 29% and it represent less than 1% of GM's total sales. With it's cars built in Europe and the price point on the higher end of competitors, It's hard to make money with Saab. Also, like Buick, this brand lacks a position in the market? Entry level luxury? You can get a 1 series or C Class for the same or less.

GMC: With sales down 19%, this brand holds about 12% of GM's sales. The problem for GMC is its truck/SUV/crossover line-up is ill suited for a world moving away from bigger vehicles. What about the GMC Sierra? Won't it always be in demand? I'd argue Sierra fans will transition to the Chevy Silverado

[Buickman]

Rick Wagoner is ruining General Motors and blames everyone and everything but himself for the relentless loss of market share, mnarket cap, and the Billions in annual losses. it's more than time for HIM to be spun off. time for a united effort to rid ourselves of this complete failure!

[Sal Collaziano]

Anyone would be insane to kill Buick. It does extremely well in China and the upcoming products are just far too promising. Saab is just beginning to sell to younger people. At least in South Florida they are. A lot of people are driving Saabs around here. GMC? Kill it. GMC can be replaced by Chevy easier than easily. Pontiac and Saturn can easily be replaced by Chevy. There's just no need for GMC, Pontiac or Saturn. They don't build anything unique.

Buick makes unique vehicles (luxury cars). Cadillac makes unique vehicles (luxury sports cars). Chevy makes cheap vehicles. They must stay.

[61BelAir]

GMC holds 12% of GM's sales and they suggest killing it! Thats ridiculous considering that trucks are the only vehicles they really make money on. they lose money on small cars but lets get rid of the division that we make money on. As far as GMC not being unique, the Silverado and Sierra look completely different but some people just don't have a good eye for detail so to them I guess they do look the same!

[HoosierRon]

Here is my position.

[Ming]

Originally Posted by HoosierRon

Here is my position.

How could you forget GM's Suzuki alliance?

[Caleb02]

yes gm should sell or close all but GMC, Caddy and Buick

GMC will take all the chevy products after ford, honda, toyota all have divisions named after them and how would it look if you killed a division that is named after you?

[Lichtronamo]

Just because you kill Buick in NA, doesn't mean Buick China goes away. However, with the new Lacrosse about to debut, I doubt Buick gets the axe (for now). The rumors that the immediate Aura replacement and also the GMC lambda program has been put on hold are more suggestive of a possible moves re: killing brands beyond HUMMER.

[Caleb02]

Originally Posted by Lichtronamo

Just because you kill Buick in NA, doesn't mean Buick China goes away. However, with the new Lacrosse about to debut, I doubt Buick gets the axe (for now). The rumors that the immediate Aura replacement and also the GMC lambda program has been put on hold are more suggestive of a possible moves re: killing brands beyond HUMMER.

yes it does, becuase then you would still have the overhead, have caddy as the china offering

[Rocket 88]

Originally Posted by Sal Collaziano

Anyone would be insane to kill Buick. It does extremely well in China and the upcoming products are just far too promising.

Pontiac and Saturn can easily be replaced by Chevy. There's just no need for GMC, Pontiac or Saturn. They don't build anything unique.

Buick makes unique vehicles (luxury cars). Cadillac makes unique vehicles (luxury sports cars). Chevy makes cheap vehicles. They must stay.

Buick is being outsold by Saturn and its tiny dealership network. Pontiac outsells them 2 to 1. What is Buick building that is Unique??? The Enclave is the same as Outlook/Arcadia/Traverse. I'm not sure what the deal with Lucerene and LaCross are but who cares? No one is buying them. Buicks only sell to folks at the old age home.... Or in China. So let Buick exist in China only. Any outstanding upcomming vehicles can be given to other divisions. Outside of a great name and history Buick is almost worthless... IMO.

[pinyon]

Originally Posted by Caleb02

yes gm should sell or close all but GMC, Caddy and Buick

GMC will take all the chevy products after ford, honda, toyota all have divisions named after them and how would it look if you killed a division that is named after you?

And combine them into a single dealer channel, at least with Buick and Cadillac. Make the premium rebadges Buick and leave the exclusive product for Cadillac. I think they would integrate nicely.

[Jerrycan]

I worked in the Oshawa Truck Plant for 31 years.
During that time we always made GMC and Chevy pickups.
They are one and the same vehicle. You get a few cosmetics once it reaches the hardware area but that's it.
A few years back I noticed the tailgate of a truck going through the final finish area.
On one side of the gate was the Chevrolet emblem and on the other was GMC.
A mistake for sure, but a true visual representation of their sameness.

[vam29]

Very short-sighted to make a judgement without considering the new exciting product that Buick will have next year: LaCrosse/Invicta, 6-pass Enclave and possibly small luxury car. These cars will attract younger buyers. Along with Opel if Saturn is phased out, Buick will contribute immensely to GM's bottom line. Add Cad-Pont and Chev and GM will start a new multi-year success story.

[sdotjoe]

Originally Posted by Rocket 88

Buick is being outsold by Saturn and its tiny dealership network. Pontiac outsells them 2 to 1. What is Buick building that is Unique??? The Enclave is the same as Outlook/Arcadia/Traverse. I'm not sure what the deal with Lucerene and LaCross are but who cares? No one is buying them. Buicks only sell to folks at the old age home.... Or in China. So let Buick exist in China only. Any outstanding upcomming vehicles can be given to other divisions. Outside of a great name and history Buick is almost worthless... IMO.

Yeah but saturn has twice as many models as buick. Buicks sell well in China mostly because of thier offerings over there. They offer more models with more features in China. If they put that kind of effort into their US products they wouldn't do so bad, I mean just look at the Enclave's inventory stats they almost have the lowest inventory out of the whole company. The Lucerne isn't that bad, I was behind one yesterday and they really do look good(the CXSL or whatever the top trim is) Fact is if Buick would have gotten the attention Saturn did they would be selling maybe five times what Buick is selling right now as opposed to just two times more.

[mrgto]

All of Buick NA's customer base is looking up....and that isn't in a good way.

Who GAF if Buick is selling well in China? That doesn't justify it enough to keep it around. just sell the holden over there instead of a "Buick"