GMC Should Die… And be Reborn

[plane]

I just don't see the bottom line value in this proposition.
There's no pro-forma financial analysis to back it up.
No synergies mentioned.
No investigation of the incremental costs involved in producing GMC products.
No discussion regarding the costs of closing down GMC dealerships.

Burned once by Oldsmobile.
GM is going to think carefully and make any decisions based on the bottom line.
I just don't see the bottom line relevance in this scenario.
I can think of several things GM should probably do before going down this route.

[mgescuro]

Originally Posted by Lichtronamo

GMC is important because of its buyer demographics, who tend to be more wealthy than Chevy (or even Escalade) buyers.

Not really.
That demographic is representative of Denali only.

That's why in my version, no trace of "Chevy" remains and the sub-brand is called "Denali." You just buy it at a Chevy Trucks dealership.

[FenwickHockey65]

Originally Posted by Lichtronamo

GMC is important because of its buyer demographics, who tend to be more wealthy than Chevy (or even Escalade) buyers.

Why not eliminate the Chevy trucks and sell GMC though Chevrolet/GMC dealers?

Another good point. In the wealthier parts of town, I actually see more Yukon XL Denalis than Escalades.

Do you think that people would take up that idea? I'm not saying it's a bad idea, in fact, if we were to combine GMC/Chevy, that's another good way to do it. However, Chevy has been well established as a work truck brand here in the US, and I don't know how wise it is to tamper with that reputation by introducing GMC into that slot instead.

[HoosierRon]

I fail to see the benefit of this plan. If Denalis and Cascades are not called Chevrolets, then they need their own ad budgets, or no one will know they exist. And you still need the ad budgets for the GMC commercial trucks. Under this plan, you need separate buildings for the trucks. Now Chevy and GMC trucks are sold in existing buildings. Commercial GMC trucks will never bring in the profit margin that GMC trucks currently get (it would be too easy for Ford to undercut GMC's price; today people pay extra for a GMC because of the exclusivity, not the towing capacity).

I don't think people will buy orphaned models:

I drive a Silverado Denali.
-- Who makes that?
Umm... I don't really know. They never told me. But I know Chevrolet does not make it. I don't drive Chevrolets. That's what my gardener drives.

Finally, I suspect too many BPG dealerships would fold without GMC.

[mgescuro]

Originally Posted by FenwickHockey65

Another good point. In the wealthier parts of town, I actually see more Yukon XL Denalis than Escalades.

What it proves is that GMC is a very confused brand.
Professional grade? Commercial? Luxury? What is it trying to be? Because its marketing isn't showing that.

Originally Posted by FenwickHockey65

Do you think that people would take up that idea? I'm not saying it's a bad idea, in fact, if we were to combine GMC/Chevy, that's another good way to do it. However, Chevy has been well established as a work truck brand here in the US, and I don't know how wise it is to tamper with that reputation by introducing GMC into that slot instead.

That's what I'm trying to say. It is these historical notions of brands that is holding GM back.
The issue is GMC itself. It really should be GM's "Professional Grade", commercial grade truck.

Let's get rid of all he preconceived notions of what Chevy and GMC should be. What GM needs is one single truck company. Period. Anything more is a complete waste.

Chevy is it because Chevy is supposed to be GM's global pillar.

[Sinner]

This is terrible. This plan. -Office Space.

All joking aside, GMC is pure profit. Axing the lineup destroys a huge percentage of the profit GM makes on the GMT900's. Not to mention the Sierra handily outsells the Silverado here in Canada. It would make far more sense to axe Saab which brings nothing to the table. Saab is GM's Jaguar, it costs nothing but cash to build college professor's cars. Get rid of it.

[Rocket 88]

The more I think about this the more screwed up I think GM is. It is company of clones. Buick, Pontiac and GMC collectively are almost he exact same car line as Chevrolet.

GM has shown some rebadging works, but they need to cut it down to 2 clones.

Kill Buick and Pontiac and change BPG to CG - Cadillac & GMC all have them sell all premium vehicles.

Keep Saturn but join the dealership network with Saab.

Done.

[mgescuro]

Originally Posted by FenwickHockey65

Of course, we won't know just how many people wouldn't stay with GM, but a few here on this site have already voiced their opinion that they'd go to Ford or Dodge without GMC. I'm sure that others feel the same way.

Then let them go to Ford or Dodge. So what?

This is exactly the same reason why Cadillac won't get rid of the DTS. You cling onto customers who don't really need to be there, and hold back the true renaissance of the brand.

Who has a straight answer as to what makes a GMC customer "different" from a Chevy Truck customer?
All I ever hear is "I don't like Chevys." WHY??

Do people buy a GMC because it's a GMC... Period? Or is it something else?
And if it's something else, why can't they accept Chevy?
Obviously people bought the GMC because they saw something there that they liked. What is it? And why isn't that translatable to Chevy?

[DemonKnightDK]

As I recall, nissan isnt doing so well with their truck line. and If GMC has a better image than chevy, would it make more sence to just stop making chevy trucks? and sell nothing but GMC trucks? leav chevy with an S-10 size truck or G8-ST type car. the simple fact is, GMC has almost an insignifigant amount of money invested into R&D and makes a huge profit for the company.. I do belive GMC should get more into the commercial grade sector, nothing under a 3/4 Ton dually. Let chevy have the 1/2 ton market. make the HD trucks GMC only, and sell them BPG dealers. If any brand needs cut, by damnit it is saturn. every saturn could be a pontiac, open/holden would be perfect as pontiacs, the opels as the FWD performnace (mazda/nissan fighter) and Holden for the G8 and GTO range, just leave it more of a lower end with not so much luxary, give those to Buick. (buick should be the LWB Statesmen, and a few more luxuary optioned exclusives. Enclave can stay.

So, Pontiac would be

Delta II- G5 becomes Sunfire, 1.4L base 115-120HP, GT with 2.0L Non-turbo LNF 160-170, and GTP with 2.2 or 2.4L 230-240 HP or detuned Turbo 2.0L

Epislon II - Re names Grand Am, base 2.0L Non turbo LNF 160-170HP GT with a 2.2L 195-200HP and a GTP top line, with AWD and 2.0L Turbo LNF at the 260HP min.

Vibe, a pontiac version of the HHR, only styled completly different, same drive train as the EPII.

Those are the only FWD cars in the Pontiac marque. they will be the only ones wearing GTP badges.

G8 is Renamed Grand Prix, 3.0L Base engine that is rumored to be coming for the CTS, 260-275HP GT with 3.6L DI-V6 at 300HP and the GXP with the corvete Base V8 with AFM only if its needed to get around the guzzler tax

Intro the G8 Coupe as the Grand Prix Coupe, or style differently enough to be GTO/Firebird. Same specs as Grand Prix 4 door.

Only two RWD that they need.

Buick:

LWB EP-II called Regal, no base modle, starts at LS trim with Leather trimed luxary cloth standard, and leather trimmed sued for the LT trim the base engine would be 3.0L DOHC V6, optional 3.6L and then GS trim would give a GS spec suspension tune and the 3.6 in turbo form.

LWB Zeta, returns the name Park Avenue, 3.6L base engine, with a turbo 3.6 as the upscale, tuned for complete quite and smoothness. Trim names would be Park Avenue Limited and The upscale would be Ultra (super is not an option I'm sorry that is a stuipd trim name.)

Enclave will stay in current form. Its doing every thing right.

GMC would have to be transitioned to a smaller line up, most likely honestly, now that I went through the whole thing in my head, GMC would not fit in this set up. Mazda dose fine with out trucks, and toyota and honda did/does as well.. so perhaps GMC should just become a trim line for Chevy. (or at least be sold at chevy dealers only. if the B-P dealer cant sell cars that are worth it, they arent trying hard enough cause the lack of trucks dont stop any one else.

Okay, after proving my self wrong and seeing the benefits of the GMC+chevy=ChevyGMC I stand by my BP grouping. throw saturn in there to cover a few more crossover options and slightly lower run cars. Nothing that would perform better than a pontiac and nothing more luxuarious than a buick.. make them the rental fleet. (since they dont have a huge public following and the name isnt that valuable... they would be the perfect brand for the fleets...)

okay, I'm done. +1 to any one that actually reads this post

[Lichtronamo]

Originally Posted by mgescuro

Not really.
That demographic is representative of Denali only. That's why in my version, no trace of "Chevy" remains and the sub-brand is called "Denali." You just buy it at a Chevy Trucks dealership.

I think your idea is right for where GM needs to be, but getting there requires dropping more than just one of the BPG brands. At least short term, wouldn't it be less expensive for GM to just keep selling Buicks and GMC/Denali together in one sales channel? GMC and Chevy trucks may only differ in badging and minor trim, but at least these vehicles have a potential profit margin. Pontiac's core line up of the G3, G5, and G6 have much smaller margins and these products essentially compete head to head with three or four other GM products in other brands. Buick doesn't have enough volume to justify a stand alone sales outlet and GMC (which sold 40,000 more unit than Pontiac and 100,000 more units than Buick in May 08) provides that volume, even with this new world order.

[2648562]

Being a GMC owner, I can't say I like the idea of GMC dying anymore than I liked/understood them being lumped in with Buick and Pontiac dealerships. Why cut them when their sales remain strong, their image is excellent, and development costs are shared with other divisions? GM might save on marketing, but that's about it. Yeah, I know consumers are moving away from trucks... all the more reason to position them as professional grade IMO (which I think you mentioned and I agree with). It's unlikely to happen anytime soon, but unlike Pontiac (which as we all know "is car") there is so much GM could do to grow that brand.

BTW: Denali may have recognition, but they've become so married to one look they're at risk of becoming no more than a fad. Professional Grade is where it's at.

[Carguy]

There is a easier way to do this while keeping GMC. Build NO MORE premium CHEVROLET's and NO MORE STRIPPER GMC's! No more CANYON for GMC and no more HD 3 quorter/1 tons or CRUE CAB's for Chevy! No Chevy Commercial trucks or large Vans for Chevy makeing them GMC's only! Professional Grade Trucks ALL THE WAY for GMC with NO SUV's except Chevy SUBURBAN moveing the name/model to GMC! Make GMC something like near premium DENALI ONLY--((except commercial))--just below CADILLAC while Chevy reaches mid level luxury only! This could be done easly with little effect to sales keeping GMC sold with BUICK/PONTIAC while CHEVY Trucks remains with CHEVY Cars.----EASY!!---SIMPLE!!---DONE!!

[samkung]

The thing i dont understand is why some of the GMC supporter wont buy a Chevy, dont they all love GM, or do they just like GMC

PS: do all Chevy truck buyer prefer the chevy name over GMC, if not why not just sell Chevy truck as GMC, or simply use the GMC name for top end chevy truck, just sell them under the same roof

[vam29]

Yes, Chev should absorb GMC creating a stronger Division with better representation and increased sales performance. While GM is at it they should also have Buick absorb Saturn. After all, it's now an Opel which had its most success years ago when it was part of Buick. It can happen again. Why wait?

[1931Chevy]

I like the idea but the problem here is the time and money needed, IMO GM needs to first focus in the Chevrolet brand because this is the brand that needs to be bringing GM the bigger profits and not loosing money and when the brand is back on track then work in the other ones because time is running out and I dont want GM to go down