UPDATE 6/21!: GM Cutting Another Division?

[zete]

It's not like this has to be complicated. GM has to have their dealers split up as follows:

• Chevrolet Pontiac GMC
• Cadillac Buick
• Saab Saturn/Opel

I would make GMC an option package on the Chevrolet trucks: The Professional Grade package, which gives all kinds of gadgets and luxury amenities for the trucks that some buyers will want, complete with GMC badging to differentiate it. The exteriors would be pretty identical, though unique interiors could be created. It'd be a "badge" in the sense that "SS" is a badge at Chevrolet.

Pontiac would be a niche player with a few interesting models that are shared globally, such as the Solstice, G8, G6, G4 -- all RWD/AWD. They'd cater to a different clientele than would Chevrolet vehicles, which I'd leave FWD/AWD. Keeping them as niche vehicles means that dealers can get nice markups on them while Chevrolet remains their bread and butter. Pontiac's can work as niche cars especially if they're simply rebadged Holdens.

Cadillac and Buick should be sold together, with Buick being versions of cars that are more "American Luxury" as opposed to Cadillac that is "Ultimate Luxury". Buick only needs 4 or 5 vehicles that meet the needs of individuals who don't want a Cadillac but want a luxury car. All of Buick's lineup would be shared with China, with North America offering bonus sales numbers to China's sales of Buicks.

I'd rename Saturn to Opel and simply sell them as imports. No GM badging, nothing. Push their Europeaness and move the iron that way. That way you'd have Opels as the entry level cars and the Saabs as the high end imports, much as Toyota has Toyota and Lexus.

I never have understood why GM doesn't let their dealers sell different vehicles. I can understand not having a PBG dealership sell a Cadillac, but it's silly that Pontiac, GMC and Chevrolet aren't sold together.

[ARCANGEL]

hey rex im sorry but thats the stupidest idea ever!

[TriShield]

GM can't afford to make Pontiac a niche performance brand. It's effectively toast.

It's too bad GM didn't sell all of those nice Holdens through Chevrolet like they do in the rest of the world, that's where they fit better and they don't have the pig nostril grille to turn people off.

[steinravnik]

Originally Posted by TriShield

Another huge problem for GM is the sheer amount of dealerships they have. The number must be cut drastically one way or another.

That costs money though. Does GM have the money to pull this off, along with everything else?

Remember, these economic headwinds are strong, and hardly over. Just saw a report today that the IMF estimates that financial losses from the mortgage fallout will total 1 trillion before this is over. So far, only 300 billion have been reported. This is going to get a lot worse if the IMF is right. Keeping this in mind, is GM going to be able to weather this storm?

[TriShield]

There's no reason to keep Buick in the US, the brand has been ousted from any luxury or near-luxury claims by foreign brands now. GM can keep selling it in China but it's a lost cause here in North America, it's GM's Mercury.

[DuSpinnst]

Originally Posted by TriShield

GM can't afford to make Pontiac a niche performance brand. It's effectively toast.

It's too bad GM didn't sell all of those nice Holdens through Chevrolet like they do in the rest of the world, that's where they fit better and they don't have the pig nostril grille to turn people off.

They still can, or slap the VXR front end on them and sell them as Saturn's. But first change Saturn's name to Opel.

[DuSpinnst]

Originally Posted by TriShield

There's no reason to keep Buick in the US, the brand has been ousted from any luxury or near-luxury claims by foreign brands now. GM can keep selling it in China but it's a lost cause here in North America, it's GM's Mercury.

Buick is savable. For the reason that Cadillac CANNOT be for everyone. Cadillac is just too flashy for some. GM needs a staid, classy luxury brand and Buick can be it.

[Phoenix]

Killing GMC while making money on pure rebadges would be silly imo. Pontiac needs to go. There is no need for performance brand when all the cars we want from it have a Chevy counterpart.

Firebird=Camaro
GTO=Chevelle
G8=Impala
Solstice=Stingray?
Torrent=Equinox
G5=Cobalt SS
Vibe=never should have existed in the first place.

RIP Pontiac

[ARCANGEL]

Saturn should just be called OPEL it would carry that cache and maybe change pontiac to Holden as well. Honestly the glory days of pontiac are gone and the hanger ons have to realize that!! AXE GMC!!! Make Buick China and NA the same, leave Chevy and Caddy on there path and flip a coin to see what to do with saab

[Uzzy]

Bye bye GMC. It's been good, but why does GM 2 truck divisions? Especially when they sell nearly identical things. And I do love GMC, but I see it as being redundant, sorry.

[Phoenix]

I would also support changing Saturn to Opel.

[FenwickHockey65]

Originally Posted by zete

It's not like this has to be complicated. GM has to have their dealers split up as follows:

• Chevrolet Pontiac GMC
• Cadillac Buick
• Saab Saturn/Opel

I would make GMC an option package on the Chevrolet trucks: The Professional Grade package, which gives all kinds of gadgets and luxury amenities for the trucks that some buyers will want, complete with GMC badging to differentiate it. The exteriors would be pretty identical, though unique interiors could be created. It'd be a "badge" in the sense that "SS" is a badge at Chevrolet.

Pontiac would be a niche player with a few interesting models that are shared globally, such as the Solstice, G8, G6, G4 -- all RWD/AWD. They'd cater to a different clientele than would Chevrolet vehicles, which I'd leave FWD/AWD. Keeping them as niche vehicles means that dealers can get nice markups on them while Chevrolet remains their bread and butter. Pontiac's can work as niche cars especially if they're simply rebadged Holdens.

Cadillac and Buick should be sold together, with Buick being versions of cars that are more "American Luxury" as opposed to Cadillac that is "Ultimate Luxury". Buick only needs 4 or 5 vehicles that meet the needs of individuals who don't want a Cadillac but want a luxury car. All of Buick's lineup would be shared with China, with North America offering bonus sales numbers to China's sales of Buicks.

I'd rename Saturn to Opel and simply sell them as imports. No GM badging, nothing. Push their Europeaness and move the iron that way. That way you'd have Opels as the entry level cars and the Saabs as the high end imports, much as Toyota has Toyota and Lexus.

I never have understood why GM doesn't let their dealers sell different vehicles. I can understand not having a PBG dealership sell a Cadillac, but it's silly that Pontiac, GMC and Chevrolet aren't sold together.

I could honestly live with this, but I'm not sure how buyers would react to a GMC Silverado.

How about this. GMC's always been thought of as the upscale, better looking version of Chevy. So why not actually make it that way? Instead of having 30 Sierras roasting on the lot across from 50 Silverados, just have 5 or 6 models for people to look at and test drive, and then they can special order their GMC to their taste. Make Chevy the true volume seller and GMC the exclusive, upscale version. Just throw in some features and options available with GMC and not Chevy, things that truly set it apart as "Professional Grade," kinda like the Sierra All-Terrain package. That solves the problem of overproduction of full size trucks as well as saves a brand that many people are loyal to.

[FenwickHockey65]

Originally Posted by DuSpinnst

Buick is savable. For the reason that Cadillac CANNOT be for everyone. Cadillac is just too flashy for some. GM needs a staid, classy luxury brand and Buick can be it.

Not to mention that the over-60 population is loyal...

[TriShield]

Originally Posted by steinravnik

Keeping this in mind, is GM going to be able to weather this storm?

http://money.cnn.com/2008/06/19/news...ion=2008061909

All signs point to no.

[TriShield]

Originally Posted by FenwickHockey65

Not to mention that the over-60 population is loyal...

And dying.

It wasn't so long ago Chevrolet sold big comfy cars to people that wanted them. GM gave that market up to Ford and a substantial amount of those types of customers drive Crown Victorias wearing the blue oval. Toyota also sells that type of car with FWD under their own brand called the Avalon.

There isn't anything Buick does that Chevrolet and Cadillac can't or already do. A separate brand isn't needed for that type of car anymore and hasn't been for years.

The overlap, cannabalization has been a massive problem for GM and failure to address it is what has brought the company to this point.