GM likely to drop overlapping models instead of brands

General Motors has widely been reported to be considering dropping several brands as it struggles in a climate of falling demand, rising fuel prices and material costs and increased competition, but the carmaker insists that the only brand under review is Hummer. Reports emerged earlier this week claiming Pontiac, Saab and Saturn were also possibilities for being axed, however GM sales chief Mark LaNeve has reassured dealers that the carmaker is not conducting a strategic review of any brands other than Hummer.

What GM hasn’t ruled out is the possibility that several overlapping models, especially in the SUV and pickup segments, could be dropped. An inside source has revealed to The Detroit News that GM’s operations review will result in the purging of overlapping models and a shift in emphasis to more fuel-efficient cars.

GM currently spends money developing and marketing similar vehicles under several different brands but achieves sales comparable to competitors with fewer models in the same segment, and often only a single model. Its current portfolio also includes 12 different SUV models among eight brands, and only four compact or subcompact cars that the market is demanding.

To paint a clearer picture of how muddled GM’s portfolio is, the carmaker sells four-different midsize SUVs in the same segment with the Chevrolet Traverse (pictured), Saturn Outlook, GMC Acadia and Buick Enclave line of cars.

Chrysler has already revealed its own plans to reduce its ‘twin models.’ Prime examples of the failed twin scheme include the Dodge Avenger/Chrysler Sebring pair, the Jeep Liberty/Dodge Nitro, and the Chrysler Aspen/Dodge Durango. It’s not likely that Chrysler will step into the current product line to make cuts mid-cycle, but will instead change its development plans to eliminate such overlap.