
Henderson’s appointment as GM’s North American chief makes the future of several other high-ranking execs uncertain
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One of General Motors’ biggest criticisms is the number of different brands under its roof, which ends up seeing it sell similar models that often compete with one another in the same segments. In its efforts to secure its share of a
federal bailout, GM said it now intends to focus its U.S. product and marketing resources on four core brands, namely
Buick, Chevrolet, Cadillac and GMC. These four brands accounted for 83% of GM's total sales volume in the United States last year.
That leaves
Hummer, Saab, Saturn and Pontiac in an uneasy state. GM has already confirmed that it is looking for a buyer for its Hummer brand, and that
Saturn was also under review.
Pontiac, meanwhile, is expected to be
reduced to just a few models, while
Saab could also be sold-off or axed altogether.
Speaking with
Automotive News, GM COO Fritz Henderson said the company is conducting a strategic review of its Saab and Hummer brands and that the "status quo" for the Saturn brand will not work. "We need to do something different with Saturn," he said.
As for Saab, Henderson confirmed that GM was working with the Swedish government to help the brand remain viable, however, he stressed that Saab was “not a U.S. strategy.”
Pontiac, meanwhile, will "shrink substantially," Henderson said. Speaking at the
Detroit Auto Show last week, GM Vice Chairman Bob Lutz also said Pontiac will eventually be reduced to just five models – the G8, G5, Vibe, Solstice and Solstice Coupe.
Part of GM’s downsizing efforts will also see its 6,600 dealer network shrunk to around 4,700 dealers by 2012.
Finally, Henderson warned that if GM doesn’t receive the $5.4 billion second instalment in government aid the carmaker would run out of money by March. The payment was originally due last week but was delayed by this week’s change in administration.
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Do a google search for buick china and you'll see what I mean.
Finally, there's Saturn. There's no reason why they can't use Opel underpinnings in Chevrolets. I think the current Saturn ad indicates that this is a brand without a past and without a future. It shows a guy walking into a Saturn dealership and being very confused about what he sees. The perky young receptionist (do car dealerships really have those?) says something like, "oh yes, we get a lot of double-takes - no-one really knows what Saturn is doing these days!" Exactly. Even Saturn commercials have trouble defining the Saturn brand.
GM is much too late on this. Contributors to this blog have been opining for over a year that GM should have been trimming down their offerings and consolidating their dealers. Ford managed and they're the only one of the Big 3 who are offering a strategy for the future as opposed to one or two cars.
GM, now is the time to realize that the Volt is not the second coming. If you put all your eggs in this single basket, your whole company is going down the pan.
If you're looking for an Insignia, the new Buick Invicta/LaCrosse is our (N.A.) version of Epsilon II. So will be the next Malibu. I can see that it doesn't make much sense to replace the Aura and G6, making them competitors. Case in point: GM routinely outsells Ford in full-sized pickups, but never gets the top spot because the volume is divided between the Chevrolet and GMC brands. Ford has certainly taken advantage of the crowing rights of "best selling vehicle", and nobody is the wiser because nobody seems to know that the Silverado and the Sierra are the same vehicle!
Pontiac's line-up has become illogical: a thirsty, expensive Holden(G8), a vanished WBody (Grand Prix), an aging Epsilon(G6), a Cobalt clone(G5), a Toyota Corolla(Vibe), a Daewoo(G3), a Theta SUV that isn't updated along with the Equinox, Antara, Vue, and SRX(Torrent).
The Solstice is a nice car, but could just as easily be a junior version of the Corvette. The Saturn/Opel/Daewoo-Sky/GT could become a junior version of the Cadillac XLR, marketed against the small Mercedes Benz convertible SLK.
GM does a good job differentiating their products these days...how else would people be calling for a sale of Hummer, which are based on Chevy truck platforms!! What would the buyer get, other than the name and copyrights?!
I would have rather seen Oldsmobile survive rather than Pontiac (and also Plymouth over Dodge), but that's the way it goes. If it takes a couple of nameplates falling by the wayside for GM to prevail, I'm for it.
At the B/P/GMC dealerships they will split the full line-up of vehicles over these three brands instead of each having a full line.
Pontiac = 2-4 sporty cars
Buick = 3-5 luxury cars
GMC = Trucks / SUV's
None of this has anything to do with their international brands. The article and GM spokespeople have been very clear that this is a US brand restructuring. GM will still lead with the Buick brand in China for example.
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