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GM Ready To Roll In 2007: Report

R.M. Schneiderman, 08.11.06, 8:15 AM ET

General Motors

Ailing auto giant General Motors will begin to see the benefits of its new product line starting in the first quarter of 2007, according to a Thursday report by Credit Suisse.

Rob Hinchliffe, an analyst for the research firm, said negative margin trends should continue throughout the third quarter for the company, before improving slightly in the fourth.

The report was released following GM's analyst day on Wednesday during which the company introduced new products such as T900 pickup and the Lambda crossover SUV.

"GM will launch a rich, crew cab T900 pickup mix in October with two of the five plants up and running this year," said Hinchliffe. "The Lambdas look great, with a risk of cannibalizing existing GM customers."

The Detroit-based company also offered further details on its strategy going forward.

"GM's plan creates four 'core' brands which include Chevy, GMC, Cadillac and Saturn," said Hinchliffe.

"These will be supported by four 'focus' brands which include Buick, Pontiac, Hummer and Saab. This strategy will require GM to scale down Buick and Pontiac in the near-term until these brands have a clear…identity."

On Thursday, GM (nyse: GM - news - people ) Chief Executive Officer Rick Wagoner also announced that his company will bring back its muscle car, the Chevrolet Camaro, beginning in 2008.

Chevy began making the Camaro in 1967, before putting a halt to the speedster in 2002. The new models will begin retailing in the first quarter of 2009.

UBS maintained a "reduce" rating on the company with a target price of $24.

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I guess Saturn is taking Olds' place, which I don't see as right, but that's the world we live in.

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You are right, but man I am finding it hard to swallow. Saturn didn't earn this...they don't really deserve it. All these very nice vehicles are being parachuted in and suddenly Saturn is fabulous. But it's not really Saturn. It all seems like a big fat charade.

And GMC seems odd as a core brand when Chevrolet already fills that role.

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Market Scan

GM Ready To Roll In 2007: Report

R.M. Schneiderman, 08.11.06, 8:15 AM ET

General Motors

"GM's plan creates four 'core' brands which include Chevy, GMC, Cadillac and Saturn," said Hinchliffe.

hmmmm. oh.

"These will be supported by four 'focus' brands which include Buick, Pontiac, Hummer and Saab. This strategy will require GM to scale down Buick and Pontiac in the near-term until these brands have a clear…identity."

yeah didnt want to forget about buick or pontiac.

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I find it worrisome about Pontiac and Buick. This suspiciously looks like they are being quietly fazed out. Not tomorrow, but eventually.

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I find it worrisome about Pontiac and Buick.  This suspiciously looks like they are being quietly fazed out.  Not tomorrow, but eventually.

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maybe, but itd have to get pretty bad for that to happen. i dont think its plan "a"

the dealers around me over here are all combined anyway. cadillac/ hummer.

chevy/pontiac/cadillac... theres gotta be a way to keep it going.

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I also find it hard to swallow that Saturn is taking the place of Olds in the "core" of GM. I don't mind having the Buick and Pontiac scaled back a little because right now they don't really have a "center" Buick is getting there with cars that are a step below Caddy in not only price, but also creature comforts, but right now Poncho has no "soul" anymore. They're getting there with the Solstice, but there's a lot more work that needs to be done of the "Performance Brand".

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It'll be nice to have Pontiac back in it's rightful place. And Buick too. These have been great brands for GM.

I guess I worry about GM scaling back on these divisions. It will be too convenient to let them die. No one will hardly notice.

I am probably over romanticizing but to me these aren't just cars and not just business. They are also a part of N. American culture and heritage. That's important too. I hope they and other American cars survive in the new reality.

I just don't get misty-eyed over Accords and Camrys. I don't long for vintage Mitsubishis. They are from another land and culture.

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