GM says Progress Made in drive to create Combined Buick-Pontiac-GMC Channel

[Ming]

GM says it's making progress in drive to create combined Buick-Pontiac-GMC sales channel

By RICK KRANZ | AUTOMOTIVE NEWS
AutoWeek | Published 04/25/06

NEW YORK - General Motors is making progress in its effort to eliminate exclusive Buick dealerships and build up a combined Buick-Pontiac-GMC sales channel.

At the end of 2005, 60 percent of Buick's sales were "on channel," said Mark LaNeve, GM's vice president for sales, service and marketing. By that he meant Buick sales at stores that had consolidated Pontiac, Buick and GMC franchises under one roof.

"We think it will be 70 percent by the end of this year and 80 percent at the end of '07," LaNeve said at the New York auto show earlier this month.

He added: "The dealers understand this, and we have been making great progress. Last year we did about 125 consolidation deals."

When needed, GM will continue to stimulate deals with financial help, LaNeve said.

"We get involved in helping facilitate the deals," he said. "We may participate on the margins on them, but the vast majority of these consolidations have been private capital."

LaNeve said GM's goal is to have all Buick, Pontiac and GMC sales flow through one channel.

GM has been realigning its eight brands within four channels. Chevrolet and Saturn will be exclusive sales channels. Cadillac, Hummer and Saab will be sold by one dealer in each area, rather than through separate stores.

http://www.autoweek.com/apps/pbcs.dl...024/LatestNews

GMI Flashback: Merge The Brands!

[pkd87]

Cadillac, Hummer and Saab will be sold by one dealer in each area, rather than through separate stores.

first Ive herd of that. Glad GM is making progress on BPG consolidation.

[Bravada]

Good to see that LaNeve reads Ming from time to time Now if the new BPG dealerships will look like this one, future might look brighter. I think they should be moving to phase 2 now - adding Chevrolets to BPG (and eliminating overlap), and experimenting with selling other brands through Saturn.

[Ming]

first Ive heard of that. Glad GM is making progress on BPG consolidation.

Me too. I posted the "GMI Flashback" because the "partnering" (Cadillac/Hummer/Saab - with Chevy and Saturn stand-alone) was exactly what I called for 2 years ago. Of course I give it a thumbs up.

LOL, thanks Bravada, beat me to it.

[56 Starchief]

excellent job convincing them Ming

[saturnsteve]

Good to see that LaNeve reads Ming from time to time Now if the new BPG dealerships will look like this one, future might look brighter. I think they should be moving to phase 2 now - adding Chevrolets to BPG (and eliminating overlap), and experimenting with selling other brands through Saturn.

Saturn and Saab will be combined in the US in the next two years, count on it!

[SJZ3]

Saturn and Saab will be combined in the US in the next two years, count on it!

Here in Montreal every dealership I see with those brands is already a Saturn/Saab dealer. I'm not sure if its Canada-wide or not though. I think it makes some sense...but I wonder if the Aura will make sense sitting next to a 9-3 or the Outlook sitting next to a 9-7x...

[KingElvis]

Yes Ming, many of us have been advocating something like this. It's hard to deny that GM cars end up competing with each other more than other brands.

I would take it even farther and restrict each brand to two platforms.

Chevy: Cobalt - FWD/AWD Impala/Monte Carlo - OHV I-4, V6, V8
Pontiac: G6 full line - "Zeta" RWD Grand Prix/GTO coupe - DOHC I-4 OHV V6, OHV V8
Buick: FWD Lucerne, RWD/AWD "Zeta" sedan - all DOHC V6
Cadillac: FWD DTS, RWD/AWD stretched zeta - all DOHC V8

I don't think "BuickMan" is going to like this, as he constantly is complaining about Buick dealers being "starved of product."

It's interesting that the 2007 G6 updates are so extensive. It makes me believe that Pontiac is putting all its chips on this chassis. With Grand Prix hardly any larger and maybe even less comfortable for back seat passengers, it doesn't seem like the W body Grand Prix has much reason for being. I'd say the same thing about the similar Buick Lacrosse.

The "car for every purse and purpose" wasn't supposed to work WITHIN each brand, it was to encompass all the brands. Now that you can easily pay $50K for a Chevy Suburban, maybe that doesn't apply as much. Perhaps Chevy should be considered the exception to the rule, but then you come back to a system where Chevy squeezes from the bottom and Cadillac squeezes from the top, so all you really need is Chevy and Cadillac.

So I come back to the same conclusion: You can't just shrink Pontiac and Buick but leave Chevy and Cadillac alone. You end up with both Chevy and Cadillac selling $30G cars. Wheres' the breathing room for "mid priced" models from Buick and Pontiac?

So even though this move to combine Buick and Pontiac comes off as gulping down bad tasting medicine, it's actually the path of least resistance. Since Pontiac and Buick had all these aging models and dealers were all switching to Japanese brands, it wasn't a "tough choice" to slash down their model arrays and combine dealerships.

The "tough choices" will not be to carve away at nearly lifeless bodies you are trying to save, but to cut into the healthy patients to get organ transplants.

Touch choice: cutting Chevy's top sticker to $26G. On the top end, Cadillac will have to give all its DOHC V6 engines, as well as the CTS chassis, to Buick, then bring out the "ULS" or mega Caddy to finally scrap it out with the S class and 7 series.

[mgescuro]

In my area, there a Cadillac/Saab and a Cadillac/Chevy/Hummer and a Saab/Kia.

[nadepalma]

Great news to see that they are moving ahead with their consolidation. Outstanding.

Though I think that moving to 4 sales channels makes all the sense in the world, I wonder what the numbers look like in consolidating Saab/Caddy/Hummer stores? Anyone have a clue?

I've seen a few Hummer/Caddy stores -- but not any that had Saab thrown in the mix. The few Saab stores around my area are all stand alone shops -- I don't know if Saab stores are against the consolidation or not, but I'd be interested in seeing how this works out moving foward.

[SonicAerio]

Just thought since it was brought up the combination of Cadillac and Saab -there is one here in Jacksonville:



They are connected but have completely different showrooms...Cadillac(on other side) is designed all in dark wood and Granite - very upscale looking(done for the 100 aniversery of Cadi) Saab, as you can see in the pic, the showroom was designed after the clean swedish lines and heritage with aviation

[uujjj]

Saturn and Saab will be combined in the US in the next two years, count on it!

Given that Saturn is going to be basically Opel, Saturn/Saab makes more sense than Cadillac/Saab. But either way is better than standalone stores.

[paul8488]

I like this news. That makes the future of Pontiac and Buick a little more secure, I think. Overall overlap throuhg GM should be eliminated, but first and foremost they should streamline the Pontiac, Buick and GMC offerings so that, in total, they are one very full and complete lineup sold under 3 names. Ideally they wouldn't need all 3 names, but since they exist and have tons of goodwill attached, I don't think didtching one right now would have any benefit. A while ago there was an article suggesting Buick and Pontiac become 'boutique' brands, offering rather specialised vehicles to specific markets. I still like that idea, to a degree... no Bonneville required if there's a hotrod Lucerne, no larger Pontiac SUV once the Enclave hits the market, no truck-based SUVs with GMC in the showroom. I can see this working out quite well, once they get all dealerships on board.

[GM-10]

Good to see that LaNeve reads Ming from time to time Now if the new BPG dealerships will look like this one, future might look brighter. I think they should be moving to phase 2 now - adding Chevrolets to BPG (and eliminating overlap), and experimenting with selling other brands through Saturn.

Have you spent much time in America? Do you know how overcrowded BPG dealerships are?

They already have their work cut out eliminating overlap.

Don'you think the 'G' in BPG would represent alittle problem....given its volume contribution they add Chevrolet?

[Wario]

Gm has found another way to save gas....... From driving to different Dealerships!