LaNeve: No Need to Shed Brands!

[nadepalma]

Source: http://wardsauto.com/ar/auto_gm_mark...ef_2/index.htm

Mark LaNeve says each of GM’s brands will be profitable in the future.
WardsAuto.com, Jan 12 2006



NEW YORK – General Motors Corp. marketing chief Mark LaNeve tells Ward’s he is comfortable with the current portfolio of brands and sees no need to shed any divisions.

Responding to suggestions from analysts and Kirk Kerkorian advisor Jerome B. York that GM should sell off some of its brands, LaNeve says he is confident each of the auto maker’s marques can operate profitably.

LaNeve stopped here amidst a coast-to-coast tour to brief dealers on GM’s new pricing philosophy. (See related story: York Gives Chapter, Verse on GM )

York “wants us to move fast.” LaNeve says, adding he agrees with that sense of urgency. (See related story: GM Slashes Prices, This Time for Good )

But he says he “would rather have eight brands than less.”

LaNeve says the trick will be in how well GM manages its portfolio going forward, noting each brand provides significant volume.

GM’s current position is “better than Ford (Motor Co.’s market) share per brand,” he says.

LaNeve insists each of its brands will make a profit and promises each will have a distinct identity, with vehicles that do not overlap those of other divisions.

“It’s up to us to manage the brands properly,” LaNeve says. “We can manage this by bringing Pontiac, GMC and Buick together.”

The three brands now operate as one retail channel, and LaNeve says it is important for the three to have products that are not identical to Chevrolet’s models.

But he acknowledges there is still some duplication, as with the Pontiac Torrent and Chevrolet Equinox.

“Ideally, you wouldn’t have a Torrent and an Equinox,” LaNeve says. But he notes Pontiac needed another cross/utility vehicle quickly after the demise of the Aztek, and creating the Torrent was the most expedient solution. He says the Torrent is off to a good sales start.

LaNeve also reaffirms GM’s desire to retain Hummer, despite calls by York and others to sell the brand.

“Hummer is a strong brand,” he says. “As we expand into smaller configurations, it will gain volume,” LaNeve predicts.

Plans to shut down plants over the next two years won’t prevent GM from defending its market share, LaNeve says. GM had a 26.1% light-vehicle market share in 2005.

“We’re not planning to get back to 29% or 30% share soon,” he says. “We’re going to try and maintain that share.”

And GM still is hoping to gain back some market share – if it can be done profitably, he adds.

“We’re fighting every day (to achieve this),” LaNeve says. “We’ve fixed a lot of things that needed to be fixed.”

[atomicshark]

I hope he is right.

This is why it is very important to lavish attention to GM's other brands, not just Chevrolet and Cadillac.

Pontiac and Buick need strong identities moving forward, so a new flagship GTO and Velite are a must. It is very important that each brand has at least one lustworthy model that gets people buzzing about the brand.

A good example outside of GM is the G35 for Infiniti. Before the G35, Infiniti was languishing. Now it is growing by leaps and bounds.

[asim]

He better be right.

[Bggriffi]

Something has to be done about Buick's image. My dad works at a Buick/GMC dealership and says they are only selling about 5 or 6 Buicks a month. Buick has been trying to bring in younger customers, but who wants a car that looks boring and drives like a boat? GM needs to do something fast.

[Xeper]

I dont know about anyone else... but Mark LaNeve seems to look alot like..

[nadepalma]

Originally Posted by Xeper

I dont know about anyone else... but Mark LaNeve seems to look alot like..

For some reason I can't see LaNeve saying "Hello Clarissa, trying to disect me with this blunt little toy, Agent Starling?!" :-D ha ha ha ha ha.

[chadbarb99]

Lets face it, do we REALLY need Hummer?

[mbukukanyau]

Originally Posted by chadbarb99

Lets face it, do we REALLY need Hummer?

Do we really need cars when we could do with eco friendly horses.
If there is need for Jeep and Land Rover/Range Rover, there is need for Hummer.
Hummer needs to go upscale in interior execution though....

[Cortazzo]

The great thing about Hummer is their trucks are very emotive, and very distinctive. Most of GMs cars and trucks aren't. Selling Hummer would be selling the best brand they have, along with some of their best people.

I don't think GM needs to shed any brands. There is too much history in each brand, and axing a brand is expensive and troublesome a la the olds experiment. If pontiac has a stable of 3 cars and a sportwagon, i think that would be enough for the brand. Each car should be auto-xable, really focus on handling. Buick has a ton of potential as we've seen from the enclave concept. People will buy a beautiful buick. While the lacrosse isn't really lighting any fires, the lucerne is an excellent car and I really like their ad campaigns. If they bring the enclave, a rwd flagship, and a luxo-coupe/conv. they will be in great shape (along with a redesigned lacrosse).

We can see that chevy and cadillac are moving along quite nicely. The only problem I have with chevy is that they really don't offer a very efficient 4 cyl to compete with the japanese.

[FoMoCo Fan]

I still think the numbers seem to indicate that it would make more sense to sell Saab to Renault, and put that money in the pension fund, rather than continue to lose money on the brand every year.

[TuffG929]

I could stand to see Saab go on hiatus in North America at least. It's been a consistant loser.

[Cortazzo]

I think they've integrated saab too much into GM corporate to sell it now. They've moved HQ to 'the tubes' and whatnot. If they could cut it loose, it would be a good way for renault to gain access to the US market, and GM really doesn't need any money losing divisions, but I think Saab is breakeven this year.

[MCGARRETT]

LaNeve needs to shave those 4 remaining hairs on his head, he is a little scary looking.


I do like the Lecter refference though!

[dav305z]

Viva La Neve! Seriously, that is the most French looking man I've ever seen. That includes Jaques Chirac.

[DuSpinnst]

Product, product, product. Keep all brands, just don't neglect any of them like b**tard children.