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DETROIT - General Motors will extend production of the Pontiac Grand Am as a fleet vehicle, as it did with the Chevrolet Malibu.

The move offers GM two advantages. It avoids layoffs of UAW members, and it minimizes fleet sales of the Grand Am successor, the 2005 G6.

Fleet sales can erode resale values for customers and reduce the value of leased vehicles that automakers sell in the used-car market.

Pontiac hopes to keep the G6 at about 10 percent fleet sales in its initial year, says Gary Steilen, marketing manager for the Grand Am and G6. The Grand Am has run about 33 percent fleet in recent years, he says.

The Grand Am is assembled at GM's Lansing, Mich., M plant. In 2006, about 2,200 workers at the plant will shift to a plant GM is building in nearby Delta Township, Mich., where different vehicles will be built. In the meantime, rather than pay laid-off workers as required by its UAW contract, GM will keep them working assembling Grand Ams.

Production of the G6 sedan begins at GM's Orion Township, Mich., plant in August.

Avoiding a gap

Steilen says Pontiac will continue to sell the Grand Am GT Coupe as a retail vehicle through 2004. That will prevent a lineup gap until GM begins building the G6 coupe early next year.

Grand Am sedans will be fleet-only this fall. All Grand Ams will be fleet vehicles beginning next year.

"There's no specific end date targeted right now," says GM spokes-man Dan Flores. "It's all going to be driven by the marketplace."

The strategy parallels GM's continuing production of the old-version Malibu, also built in the M plant. That car, rechristened the Classic, also is fleet-only.

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This is the part I'm missing the logic of:

The strategy parallels GM's continuing production of the old-version Malibu, also built in the M plant. That car, rechristened the Classic, also is fleet-only.
WTF? So why does "Pontiac" need a version? Just sell more "Classics"!

Oh yeah, well what about those Pontiac dealers that live off of fleet sales?

Bob Lutz told us that the Pontiac brand was supposed to go up against premium sporty import nameplates.

This will Never Happen while Pontiac as a brand is pursuing fleet sales with outdated product.

See: http://www.gminsidenews.com/forum/index.ph...?showtopic=4581

And: http://www.gminsidenews.com/forum/index.ph...?showtopic=5238

And: http://www.gminsidenews.com/forum/index.ph...?showtopic=3963

Fleet sales don't just dilute value of a particular model - they dilute brand image, too, esp. for the first time drivers of Pontiac who will conclude all Pontiacs are like the Grand Am they picked up at the Airport.

Band-aid solution: Make an ultra-low trim version of the G6 coupe, label it "G4" with a base Ecotec from the base Malibu, and then you can keep its model resale value erosion from hitting the "G6" - AND you can save people from making their first ride in a Pontiac in a car that is outdated.
 

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Originally posted by LakeMichigan@Jun 14 2004, 10:14 AM
Ming, you said,
"Oh yeah, well what about those Pontiac dealers that live off of fleet sales?"


the "program cars" as dealers call them, they are the fleet cars sold at auction after they are removed from service...consumers love them, so do dealers....and as I've said before in earlier postings...a good deal of the people WON'T CARE about last year's models as they'll be able to buy a like new car, with some warranty left on it, and it will be reasonably cheap! My employer just replaced 10 old cars with 10 2004 "program cars", and we saved loads of cash!!!!
Program cars are not just fleet cars, they are also company cars, that sales reps. and executives drive.

But customers and dealers love them because they have low miles (about 5K-20K) and are for the most part in good condition.
 

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Some cars just out stay there welcome.. Cavalier, Classic, Grand Am, Cutlass Ciera and Buick Century in 1996, Lumina in 2000, Ford Taurus and mercury Sable, Crown Vic and Grand Marquis. Some of these models date back to 1979 and 1982! I can understand where some negative comments emerge regarding these "outdated" american cars! I also think GM needs to retire some of these old models and instead make sure the new one fullfills the market needs and wants of both consumers and fleet sales.
 

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If GM stopped selling to fleets, the Japanese would, and then you would all be complaining about how GM gave up a market. If GM started out selling G6's to meet their fleet demand right away you would complain about diluting it's image.

They are selling their older models to fleets now, and still you guys complain. This would seem to be the best of both worlds. They don't dilute their new car's image, and the Japanese don't make easy money off of fleet sales.
 

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They did this with the Lumina as well. When the redesign came along for the Monte Carlo they kept building Luminas just for fleet sales till I believe the end of 2000 or into 2001.
 

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What's the surprise?

The Grand Am was a fleet car from day one. It's just that for a while there, they had nothing else to sell the public so they had to sell us what should have been fleet mobiles.

This is really depressing. It's called shooting yourself in the foot. Unfortunately, with the UAW aiming the gun for 'em, GM management isn't having much trouble finding the target.

As long as they're required to keep up volume by labor contracts, they're going to build these fleet cars. And as long as they keep building fleet cars, they're going to both keep prices down overall, and they're going to continue to sully their brands' images. Everyone but current UAW members loses.

It's a downhill spiral that will end with the thrifty driving Korean cars, the middle class driving Japanese cars, and big spenders driving German cars.
 

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I would rather them keep them around as fleet vehicles than not at all. If the companies still want to buy them why not expecially if it reduced the # of G6 that will be fleet vehicles. I just wish they would make the malibu and grand am fleet vehicles and leave the g6 out of it. My Grand Am is only 2 years old and I watched the value go from 21K at purchase to the 7K-8K that I can trade it in for now :(
 

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Originally posted by xtremegrandam@Jun 14 2004, 10:44 PM
I would rather them keep them around as fleet vehicles than not at all. If the companies still want to buy them why not expecially if it reduced the # of G6 that will be fleet vehicles. I just wish they would make the malibu and grand am fleet vehicles and leave the g6 out of it. My Grand Am is only 2 years old and I watched the value go from 21K at purchase to the 7K-8K that I can trade it in for now :(
This is exactly my point with carrying these cars over so long. When we purchase a Lumina or Malibu, it is practically worthless. And then there are the Impalas and Grand Prix's and many other vehicles that are all fleet specials and they are worthless in just one year. Lets face it, no mater what the General makes it will soon be a rental lot favorite and loose lots of it's value. So why not just drop these old stagnent designs and try marketing the new ones. I'll bet Chrysler isn't going to carry over Intrepids and Concordes for fleet 05 models!
 

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WTF?  So why does "Pontiac" need a version?  Just sell more "Classics"!

Oh yeah, well what about those Pontiac dealers that live off of fleet sales?

Not really but they do help and some fleets won't buy from thier local Chevy dealer



Fleet sales don't just dilute value of a particular model - they dilute brand image, too, esp. for the first time drivers of Pontiac who will conclude all Pontiacs are like the Grand Am they picked up at the Airport.

Band-aid solution:  Make an ultra-low trim version of the G6 coupe, label it "G4" with a base Ecotec from the base Malibu, and then you can keep its model resale value erosion from hitting the "G6" - AND you can save people from making their first ride in a Pontiac in a car that is outdated.

On the contary, These G4's coming back to dealer in 6 months via the auction with 10-20k at a price $8-10000 less than the brand new G6 parked just across the lot would lessin the brands over all worth far worse.
 

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Originally posted by doh@Jun 15 2004, 05:16 PM
On the contary, These G4's coming back to dealer in 6 months via the auction with 10-20k at a price $8-10000 less than the brand new G6 parked just across the lot would lessin the brands over all worth far worse.
I agree that would be a bad choice
 
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