Date: Wed, 2 May 2007 23:00:07 +0200 (CEST) From: Nomen Nescio <Use-Author-Supplied-Address-Headernospam.1]> Subject: GM's excess baggage - Buick, Pontiac, Saab, Hummer
Fortune http://doiop.com/77487l ..Multiple brands mean multiple expenditures for marketing, advertising and distribution. Still suffering from negative cash flow, GM simply has too many mouths to feed. GM should keep Chevrolet where it is - the volume brand that is the heartbeat of America. Maintain Cadillac at the top of the market and expand its product offerings with derivatives of the popular CTS. And continue to use Saturn, with its dedicated dealer channel and loyal buyers, as the brand for import intenders. Plenty of excess baggage remains. Here are my recommendations: It is past time to perform euthanasia on Buick. Successive waves of new models haven't moved the needle on sales and it is unlikely that the new Enclave crossover will make a big difference. For nostalgia buffs, the Buick brand can soldier on in China, where it is uniquely beloved. Pontiac should get the same treatment, though without the Asian escape hatch. Its boy-racer image is dated and GM's one-time excitement division has deteriorated into a regional blue-collar brand. In a world that increasingly is going green, there is little upside for its testosterone-laced pavement rippers. Whatever noble intentions GM had for Hummer, they have been permanently damaged by the greenhouse gas debate. Hummer should be sold to whomever winds up with Jeep after Chrysler is broken up. More Jeeps fall off the truck on the way to the dealer than Hummer sells in a week. Turn GMC into a commercial truck brand. As gasoline becomes more expensive, there won't be enough traffic in personal-use trucks for GMC to share with Chevy. There are lots of opportunities with huskier trucks that a player with GM's scale could exploit in the business-to- business market. Say goodbye to Saab. With its perpetually tiny volume and high-cost European manufacturing base, Saab has defied GM's efforts for nearly two decades to make it consistently profitable. The success of Japanese sport-luxury brands Infiniti and Acura has made Saab irrelevant.
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