GMI Exclusive: 2010 Saturn Aura on "Hold"

[BigAls87Z28]

Originally Posted by plane

Fact, speculation or fait accompli?

Sky and Solstice overlap.
Aura and G6 overlap.
Vue and Torrent overlap.
Outlook overlaps with Enclave and Acadia at PGB dealerships.

Astra has no Pontiac counterpart.
G8 has not Saturn counterpart.

We're down to Astra and G8.
Everything else is duplicated.

Can't wait for Monday.

Fact. As Saturn mimics Opel, and Holden mimics Opel, its only a matter of time before (if Holden and Pontiac continue to share vehicles) that Saturn-esque looking cars show up in Pontiac dealer showrooms.

[jcgable]

Drama. Drama. Drama.

[crazyjkz]

Regardless of the reasoning behind it I think we can all agree that it was definitely a bad move for GM to put such a highly anticipated model such as the 2nd gen Aura on hold especially since Saturn desperately needs this model in their lineup as soon as humanly possible.

The current Aura is a solid fwd midsize sedan but it had unfortunately begun its life with a few bugaboos that I think some consumers weren't willing to overlook such as the outdated and unrefined 3500 pushrod V6/4-spd auto powertrain in the XE, cheap interior materials, and a lack of high-tech gadgetry options. And this makes the delay of the EPII Aura even that more disconcerting because the EPII Aura would resolve most of the current Aura's shortcomings and would give Saturn a much more competitive FWD midsize sedan offering.

The reality of the situation is that the current 08 Malibu is a much more realized and defined example of what the Aura should have been at its introduction due to the current Malibu's deletion of an outdated/unrefined OHV V6 powerplant, improved interior materials and design, and better brand identity/image over the current Aura; GM realizes this and I'm sure that most consumers realize this cold-hard fact as well.

I've seen more new Malibus on the road than Auras which is pretty scary considering that the Aura has been on the market twice as long as the 08 Malibu, so it's obvious that the cosumers out there feel more comfortable buying a Chevy Malibu over a Saturn Aura despite the many similarities between the two cars. What this means is that Saturn is going to need something a bit more premium than the Malibu and G6 if it's going to be able to make up for the gap in brand identity and brand image in order to lure consumers into Saturn dealerships.

[RedVee8]

Originally Posted by plane

Fact, speculation or fait accompli?

Sky and Solstice overlap.
Aura and G6 overlap.
Vue and Torrent overlap.
Outlook overlaps with Enclave and Acadia at PGB dealerships.

Astra has no Pontiac counterpart.
G8 has not Saturn counterpart.

We're down to Astra and G8.
Everything else is duplicated.

Can't wait for Monday.

Don't the Astra and G5 overlap?
Give a Solstice to Saab as the new Sonnet. Sell it everywhere Saabs sell.

[DJR]

Originally Posted by chickenkicker

A sign that Saturn is being considered for the brand GM will cut?

That was my first thought too!

[fan]

Originally Posted by BigAls87Z28

Fact. As Saturn mimics Opel, and Holden mimics Opel, its only a matter of time before (if Holden and Pontiac continue to share vehicles) that Saturn-esque looking cars show up in Pontiac dealer showrooms.

Well, Pontiac could very well live along getting rebadged Saturns(Aura, Corsa, Astra) , no? + G8, Solstice and Vibe. Killing Pontiac or Saturn would be risky and in the short term it would mean losing money and market share which GM doesn't really need now.
So, for now, a good option would be to give Pontiac rebdaged Saturns having twin grilles of course. Brand image could be built by the way of advertising. For Pontiac, there should be advertised G8 and Solstice and a GXP version of Aura. Saturn instead should be promoted as a green brand - Aura hybrid, Vue hybrid - forget about red line.
It could also be a test to check which brand has more potential having similar products and in the long run if one proves to be redundant(Pontiac) or doesn' meet expectations(Saturn), then kill one(which would be sad).

[plooked]

THE SKY IS FALLING!!!
THE SKY IS FALLING!!!

[nikivee]

Originally Posted by 1957wildcat

It's stated elsewhere by someone in-the-know that the hold is because Pontiac and GMC will be axed and Saturn will be joined with Buick - and GM doesn't want two similar Epsilon II's (the Buick LaCrosse/Invicta and the Saturn Aura) in the same showroom.

That's laughable. GMC and Pontiac sell around 500k cars and trucks a year, Saturn and Buick sell around 100K, maybe. So what division would you cut based on sales alone? Not GMC or Pontiac.

[nsap]

Originally Posted by nikivee

That's laughable. GMC and Pontiac sell around 500k cars and trucks a year, Saturn and Buick sell around 100K, maybe. So what division would you cut based on sales alone? Not GMC or Pontiac.

And since when is sales the deciding factor? I can tell you the board is not looking only at sales...there are many factors in the decision.

[plane]

Originally Posted by RedVee8

Don't the Astra and G5 overlap?
Give a Solstice to Saab as the new Sonnet. Sell it everywhere Saabs sell.

Well, yes, of course.
I didn't want to seem to overstate the case.
The overlap that I alluded to was based on identical platforms...

Delta vs. Delta.
Epsilon vs. Epsilon
Lambda vs. Lambda
Theta vs. Theta (a stretch since the new Vue came out).

[plane]

Originally Posted by nsap

And since when is sales the deciding factor? I can tell you the board is not looking only at sales...there are many factors in the decision.

Profitability consistent with long-term goals is a given.
What other factors might play into this decision?
I just cannot see GM doing another Oldsmobile.

Focusing on smaller, more economical possibly ground-breaking vehicles first? sounds great.
Merging brands? perhaps?
Rationalizing product across brands? absolutely.
Cutting a brand? sure sounds like a money loser.

[nsap]

Originally Posted by plane

Profitability consistent with long-term goals is a given.
What other factors might play into this decision?
I just cannot see GM doing another Oldsmobile.

Focusing on smaller, more economical possibly ground-breaking vehicles first? sounds great.
Merging brands? perhaps?
Rationalizing product across brands? absolutely.
Cutting a brand? sure sounds like a money loser.

*Franchises (# of, how difficult it is to break all the contracts, etc)
*Sales (as mentioned)
*Consumer perception of the brand
*Product (GMC has a huge disadvantage here...almost as bad as Hummer)
*Dealership network

[toronadoGT]

Originally Posted by nsap

Why would GM give BUICK the Aura? They are ALREADY getting their own Epsilon II car BEFORE the Aura launches!!

GM is giving Buick the Aura ... in China.

[nsap]

Originally Posted by toronadoGT

GM is giving Buick the Aura ... in China.

Buick is getting the Invicta as their world E2 car. It will be sold in the US and China both.

[SierraGS]

Originally Posted by nsap

*Franchises (# of, how difficult it is to break all the contracts, etc)
*Sales (as mentioned)
*Consumer perception of the brand
*Product (GMC has a huge disadvantage here...almost as bad as Hummer)
*Dealership network

GMC's product "disadvantage" is a temporary one at best if you look at the truck market and what it will be in the future – not much different than the last 50 years.

The full size truck market in the U.S. is driven mainly by the construction/farm/housing/ranch/service market and the future truck market will rebound along with the construction/farm/housing/ranch/service market with 80% of full size trucks being used in one of three ways:

The construction/farm/housing/ranch/service market (including government and private business use)
Weekend recreational use (towing/hauling)
Occasional utility vehicle (runs to nursery/home improvement)

Trucks used in the construction/farm/housing/ranch/service market will be used often and replaced on a regular basis (unless the housing market implodes).

Trucks used for Recreational or Utility uses will be driven more on a temporary (2nd car) basis and not build up many miles and be purchased by individuals with higher discretionary income (BPG buyers).

The remaining 20% will be used for a variety of uses and will be used at near normal mileage rates.

Now GMC sells about 450,000 units at say an average $28K with a $7K profit per unit resulting in $12,600,000,000 in annual revenue generating $3,150,000,000 in profits and if GMC is cut all of this will be lost from either the 40 – 60 % of GMC buyers going to Toyota, Dodge or Ford and the Buick/Pontiac owners who will do likewise, not to mention to buyers GM will never see because many of them will think GM is shutting down since they think GMC stands for General Motors Corporation (I know it does not so save the posts).

Cut GMC you cut GM – No GMC = No GM

If you are convinced cutting GMC is a good idea, go to every BPG dealer combination that maybe in your area and ask the owner “If they would like to see GMC dropped”. Let me know what they say.

BPG dealers will continue to sell a lot of GMC trucks and SUV’s to it’s customers because they are older and have more discretionary income and in many cases will be selling personal use cars/SUV’s to the contractors, farmers, ranchers and small business owners who bought their GMC work trucks there. The truck sales and “supplemental” car sales they generate constitute a large portion of the actual profit BPG dealers make and they do not want to see GMC go away. Why would you replace a truck brand with a car brand, especially when this post is about too many brands – how many car brands do you need?

It is easy to justify two truck brands (one low end and one high end) and GMC has been pulling it’s weight and many have posted “make Chevy Trucks look like GMC’s”. Huh????!!!???

Isn’t that the same as keeping GMC?

This is not 1988 when Ford and GM were the only real players in the Full Size truck market, it is 2008 where Dodge and Toyota are viable players with attractive car lines complementing them, you cut GMC only if you are happy with 450,000 to 1,000,000 fewer annual sales and $3.2 Billion less in profits.

On top of that, look at how Toyota is responding - it cut truck production (predictable and logical), then it introduced a 500+ HP Tundra!

Sounds like they think the full size truck market will return to historical average sales levels when the housing market disaster plays out - and will be waiting to sell Tundras to anyone who wants one.

Toyota once again is looking forward and GM is in full panic mode cutting as fast as they can. The Tundra will be the best selling Full Size truck in the U.S. market by 2014 if GM cuts GMC if not before then.

When will GM learn?