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What if GM took on Opel as its Global Corp. Name??
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Posted by Red93SEInBrklyn (more from Red93SEInBrklyn) on Tue, 18 Nov 2008 10:32:13 Share Post by Email
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In a previous post I suggested that GM needs to be restructured and that an important component of the restructuring would be a name change. This I postulate would allow GM to better define a business model that is much more in line with its competitors -- certainly, the Japanese brand. This model, as I see it, splits a company into two distinct entities: an economical brand and luxury brand. The umbrella company model that GM currently practices, I would argue, no longer works in today's competitive marketplace.

There are many reason GM is tanking, but an important factor is the fact that it is covering too many brands (GMC, Chevy, Saturn, Pontiac, Hummer, Cadillac, Buick, and poor Saab). The result is a demunition of all brands. How does a company annually move all these brands forward (new design, etc) while maintaining streamlined operations? Few models associated with these brand, really standout as direct competitors to the bread and butter offerings of Toyota, Honda, and Nissan. And the same applies to luxury offering within the 8 brands within GM. Thus, the umbrella model has to go.

If GM took on Opel as its Global corporate name, this will send a clear signal of change that the company needs to get out into the market place. Then by getting rid of the majority of brands it now covers and embracing the model where the global brand name (Opel)drives the economical offering and creating a luxury division (likely Cadillac), it can go forward to create car models that can compete directly with Corolla, Camrys and Avalons. Likewise, the luxury division can create cars that compete with BMWs, Audis, and Lexus. (Notice that I didn't suggest Saab become the luxury brand. That is because believe I believe Saab is a niche brand that does not fit well with the mass marketing model). The wheel is already create, they don't need to create it. They just need to drive faster with it.

If this is done, it would seems to me that manufactoring worldwide is streamlined and marketing become more focus. And the net result should be a more competive company. But, those guys in Detroit probably know better that me.

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