Thursday, December 18, 2008

Changing General Motors

I am having a difficult time understanding the proposals General Motors is considering to ensure its future viability as America's leading auto manufacturer.  Right now, GM has the following brands available in the US:  Buick, Cadillac, Chevrolet, GMC, HUMMER, Pontiac, Saturn, and Saab.  The corporation is teetering on the brink of collapse and needs government assistance to survive.  The proposal put forth by the corporate "big wigs" includes streamlining operations through a reduction of brands.

That's a good idea.  What I question are the brands they want to cut.  Chairman and CEO Rick Wagoner presented a plan that focuses on Buick, Cadillac, Chevrolet and GMC.  Saturn and Saab would be sold.  GM has been looking to sell HUMMER for months, but who wants to buy a division of overpriced gas guzzlers in this economy? All things considered, I think the focus is misdirected.  I think GM should focus on Chevrolet, Cadillac, Buick, Pontiac, and HUMMER.

Chevrolet is GM's bread and butter brand.  There is a model to meet every price point and every need within Chevy.  But, dump the Aveo and replace with the Saturn Astra.

Cadillac offers executive style luxury fit for the President of the United States, with nice flair appealing to an active, middle aged demographic.  Caddy can take in the Saturn Sky and offer it as a more affordable roadster.  Think Mercedes-Benz SL and SLK.  The GMC Acadia/Saturn Outlook could become the SRX, putting Caddy's crossover offering on the same platform as the Chevy Traverse and Buick Enclave.

Buick offers luxury with less flair, great for the older demographic.  But, they need to bring back the classic Century, Regal, and Park Avenue nameplates.  The Saturn Aura could become the Century.

Pontiac should be the niche sports car division that GM Vice Chairman for Global Product Development Bob Lutz envisions.  The G8 is "Gr8!"  So is the Solstice.  The G5 is an unnecessary Chevy Cobalt clone.  Dump it.  The G6 is a decent car, but doesn't fit the Pontiac mold.  The upcoming G3 really doesn't fit the mold.  Buick-Pontiac-GMC vice president Susan Docherty calls the G3 a short-term bridge product.  I call it a tremendous waste of resources.  It's not attractive and it's not sporty.  The Torrent can go to HUMMER as its entry-level offering.  

GM won't be able to sell HUMMER so the iconic brand should replace GMC as the niche truck division, minus the luxury vehicle marketing.  Let's face it-- who spends that kind of money to possibly destroy their vehicle in the back woods?  Lower the price points, develop the Hx concept as a Jeep Wrangler competitor and take in the Pontiac Torrent as the entry-level HUMMER.

With Saturn models spread to other divisions, GM's "new kind of car company" which became just another kind of car company, would become a former car company.  

Saab should just go away.  The models are unattractive and don't sell well anyway.  Maybe someone in Sweden can buy it back.

Consider these model recommendations:

Chevrolet
Astra (from Saturn)
Cobalt
Malibu
Impala
Camaro
Corvette
Traverse
Equinox
Tahoe
Suburban
Colorado
Silverado
Avalanche

Cadillac
CTS
STS
DTS
Escalade
Escalade ESV
Escalade EXT
XLR
ZLR (from Saturn Sky)

Buick
Century (from Saturn Aura)
Regal (current Lacrosse)
Park Avenue (current Lucerne)
Enclave

Pontiac
G8
G8 ST
GTO
Solstice

HUMMER
H2 (special order only)
H3
H3T
H4 (based on Hx concept)
H5 (from Pontiac Torrent)

This would reduce the number of GM nameplates to 32 from 48, spread across five brands with much less duplication.  A big wrinkle will develop over what to do about current Saturn dealers.  I don't have a suggestion for that one.

Oh, Good Evening!

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