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Closing Brands and a Different Mix Proposed
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Posted by Bill Homer [Email] (#3427) [Profile/Gallery] (more from Bill Homer) on Wed, 3 Dec 2008 11:38:42 Share Post by Email
In Reply to: GM announces Saab sale possibility, 9-3 Dog, Tue, 2 Dec 2008 13:34:57
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Having recently shut Oldsmobile and Plymouth (and Eagle, FWIW), both corporations are very aware of what it takes to shut down a brand.

I have a different idea for a product mix than what has regularly been proposed here. No one has mentioned the fact that Toyota actually sells THREE brands in the US: Toyota, Lexus, and SCION. I don't know where Scions are sold, have never really noticed a dealer, but there seem to be plenty of Scions (particularly the quite visible boxy xB and the xC coupes) driving around my area - but then again, I am probably 25+ years older than their intended market, so I am not a part of their targeted marketing strategy (which must be narrow and effective). Toyota didn't get to be #1 in the world with poor strategies.

Why not have a division that targets the "youth" market? In the distant past, this had been Pontiac's target (recall "We build excitement!"). Pontiac could be GM's sporty, youthful, "exciting" brand, rolling out sporty models of Opel/Saturns/SAABs (sorry, but that's inevitable) and perhaps some of what were "SS-version" Chevies - ah, if the product lines are distinctive enough, Chevy can keep them. The "Pontiac" division has the potential to be much more profitable than others: extra-cost options are where the real profits lurk. As example: a more powerful engine (OK, a few bucks more to manufacture, but not in comparison to the upcharge), stiffer suspension bits (miniscule cost difference vs. baseline), and some different paint schemes (i.e. body-color rocker panels) are the primary differences in most manufacturers' sporty models vs. the mainline car - SAAB's Aero has been no exception. Many of Pontiac's recent styling cues have been lifted directly from two of the German sporty brands (the split oval grille looks a lot like a what?, and when I park my Audi A4 next to a G6 the resemblance/ripoff is screamingly obvious), but the execution leaves a LOT to be desired - some of the European engineering that GM already has could fix this quickly.

My proposed mix:
1. Chevy and Chevy Trucks - bread and butter, high volume brand
2. Caddy/Buick - luxe cars, high margins but lower volumes
3. Pontiac - sporty/youthful/exciting cars in lower volumes but higher margins

posted by 74.93.67...
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