GM Hires Citibank to help conduct HUMMER strategic review

[dav305z]

Originally Posted by TruckMan

...that nobody buys. Good reason to keep them!

Nobody buys them because they haven't gotten new product in nearly a decade (unless you count warmed over Impreza's and WRX's).

Even without the sales, Saab's worth has been proven in the improvement in GM's 4-cylinder engines, seen everywhere from Cobalts to the Solstices and coming soon to Camaro's and G8's near you.

[bone]

I cannot believe that GM needs to hire Citibank to make case for saving or eliminating any division. This is so sad. I've completely lost all hope for my once beloved company.

[dav305z]

Originally Posted by bone

I cannot believe that GM needs to hire Citibank to make case for saving or eliminating any division. This is so sad. I've completely lost all hope for my once beloved company.

It's not that uncommon a practice for companies to consult with experts before making a decision. I think it's a positive step. The old GM would have held a thousand internal board meetings and arrived at a decision via group think.

[gardnet1]

Quote:
While your at it Citibank, see if we can get anything for Saab which hasn't turned a profit in 30+ years.

Thanks, but I think GM will want to hold on to the one brand in its portfolio with a strong reputation for building powerful yet fuel efficient cars.

I doesn't matter what Saab's reputation is; if they consistently lose money, they will never be an asset to the company. Besides that technology belongs to GM. They can and put it in any model they want.

Why some rocket scientists in GMI lothe MBAs and advocate for getting rid of cash cow GMC but won't lay a hair on cash hemorraging Saab is beyond me. It's BUS 101 fundamentals.

Being Fuel efficient and powerful isn't rocket science. Corvette and many other models within the GM portfolio have been doing it for years.

Saab is a sacred cow that should be thrown on the grill.

[LAMRONH]

Originally Posted by mgescuro

Any MBA can see the situation clearly and determine the necessary steps here.
Do a proper market sizing of HUMMER's core market. Not just "SUV's," but fully off-road capable SUV's. Also, don't take into account the NA market, but the worldwide market.

If the market is sufficient enough to support a niche product like HUMMER, then determine the proper product mix for HUMMER to make it successful.

The problem is, there is absolutely nothing wrong with HUMMER!!!!!
The issue is the fact that GM is missing the target market, and HUMMER has been slow to get product to market. (Still waiting for the H3T... tick tock...).

GM remains cluess on how to manage a niche brand.

By leveraging HUMMER's strengths in off-roading, plus the rugged image it holds, there's no reason why GM couldn't hold onto HUMMER as a niche brand. In fact, GM can easily penetrate markets that are dominated by Land Rover in global markets.

But what GM see is "Big SUV" and "gas guzzling."
They don't see the forest from the trees.

MBAs are why GM is teetering on the brink of disaster. They are what got the slide started in the 1960s because it was more important to save 100 bucks than add a few critical items to cars to ensure their safety and competitiveness. GM continues to court a crash because the executive ranks are impregnated with MBAs.

The smartest thing the corporation could do is purge about 75 percent of the MBA ranks at the top ten levels of their top-heavy bureaucracy.
Unfortunately that is about as likely to occur as con-gress agreeing on a mass resignation, with the guarantee that their state governors would replace them with people who understood their job description, were not for sale, and whose first loyalty is to the citizens of the nation.
Dream on.

If GM doesn't yet have the auditing and strategic talent aboard to plan and run the company, they might as well give up the ghost now and avoid further bloodshed. Hiring yet another outside consultant at Lord knows how many tens of million$, is merely delaying the inevitable.

Better put that money to use internally by pensioning off the legions of incompetent managers and poobahs before they can do further damage to a brand that it would take an idiot to sell or destroy.

[thehemi]

Originally Posted by dav305z

It's not that uncommon a practice for companies to consult with experts before making a decision. I think it's a positive step. The old GM would have held a thousand internal board meetings and arrived at a decision via group think.

An automaker consulting with a bank for automotive advice?
It must be more of a "how much can we get" consultation...

[AMERICA 123]

Here is yet another example of a brilliant tactical move on GM's part.

Unfortunately for awhile longer, GM and big money need to have a more than cordial relationship - this one , this specific one, with this specific 'Bank' and all the possible ways it can play out shows some real smart, heads up ball play by GM.

[LeSabre]

I agree w/you, Mgescuro!

[Robert Ryan]

In fact, GM can easily penetrate markets that are dominated by Land Rover in global markets.

With HUMMER NO. See all the discussions about HUMMER on the Holden Forum.