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UPDATE!: GM Cutting Another Division?​
Article Updated June 21, 2008


UPDATE: Since the publication of this article GMI has had several other sources approach us confirming what was reported; that another brand is being looked at to cut. Our sources are all stating that the BPG (Buick-Pontiac-GMC) brands were the top considerations, but it has since been narrowed to GMC or Pontiac. However, our sources have also used the "Saab" name in discussions we have had with them...however NOTHING regarding the Saab brand has been confirmed by GMI.

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Just recently General Motors announced to stockholders that they were "considering" selling their Hummer division due to rising fuel costs and development costs. GMInsidenews learned earlier today that GM is operating Hummer like they will be for-sure selling it. The GMT-700 H3 program has been canceled entirely and the H4 program is being sustained for the next owner. However that is not the big news here.

GMI also learned that GM is considering killing off one more division; GMC or Pontiac. At the moment the GM Board of Directors is leaning toward killing GMC as the brand is made up entirely of rebadges. The Board is also taking into consideration that GMC is mostly trucks and SUV's, both market segments that slowly dwindling. They are also toying with placing Saturn into the PBG sales channel if they do end up cutting GMC or Pontiac. This would be done in order to increase sales volume in the channel.

Recap: Hummer sounds all but dead internally, another division may not be far off. GMC is the top consideration for cutting, but Pontiac is certainly not far down the list. When GM will decide? We have not been told. Please remember that all of the above are RUMORS and should not be taken as solid fact.

Stay tuned to GMI for the latest!!

 

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Re: GMI Rumor: GM Cutting Another Division?

One more step towards killing the entire BPG sales channel. GMC is all rebadges? Outside of the G8, Pontiac is all rebadges.

Its like what McElroy said just today on Autoblog, how many brands are too many? I say do it, its inevitable anyway. Less overlap will be better in the long run.
 

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Re: GMI Rumor: GM Cutting Another Division?

If GM takes out any single brand, they likely make the majority of BPG points non-viable. Meaning, litigation on a scale that is hard to imagine.

If they kill GMC, they effectively kill the BPG channel, as there is no way any point can survive on PB. Even if you add in Saturn down the road, it's hard to see how the remaining brands are viable.

Remember, Olds was laid to rest when GM was comparatively healthy and cash rich.
 

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Re: GMI Rumor: GM Cutting Another Division?

Rearranging the deck chairs on the.......

Nevermind.
 

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Re: GMI Rumor: GM Cutting Another Division?

Buick is viable in China.

Pontiac and GMC outside the NAFTA Market have ZERO brand awareness. I don't even think out of NAFTA Pontiac even exists, GMC does but only in the Middle East.

I am against axing GMC because it still makes money, but if you can someone transition those customers to Chevy Trucks (or Cadillacs for the Denali buyer) then I say do it.



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Re: GMI Rumor: GM Cutting Another Division?

GMC should be the one to go. The Torrent replacement can go to Buick. Instead of the GMC Terrain, how about the Buick Everest?
 

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Re: GMI Rumor: GM Cutting Another Division?

To get rid of Buick, here or abroad would take a true idiot. Hummer? Absolutely. But not Buick. GMC? Maybe, I'm not entirely convinced of how much good it's going to do though unless the floor has just really fallen out sales wise. I guess we're going to see when they report June's numbers.
 

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Re: GMI Rumor: GM Cutting Another Division?

I say get rid of Buick. There is no need from the brand anymore. A fully loaded Chevy or base Caddy can easy fill this void.
 

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Re: GMI Rumor: GM Cutting Another Division?

Sure it's not Saab?

Saturn?

BPG has issues, but GMC is a money maker.
Saturn is basically Opel in the US, or it will be. Nothing to axe there, Saab is needed outside the US.

Basically Pontiac followed by GMC have the least amount of brand exposure (Buick is next).

GMC makes money, but for how long? Personally I'd kill Pontiac, move the G8 to Saturn and move Saturn into a channel with Buick and GMC. You'd also have to kill the Outlook, and no GMC version of the Torrent (let the VUE take care of that).



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Re: GMI Rumor: GM Cutting Another Division?

Sell Saab or shut it down. What value does it have? Such a small niche and a bad purchase from the start. Who would buy Saab?
 
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