NINETY EIGHT REGENCY

Hummer, Saab: GM's conquistadors

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Hummer, Saab: GM's conquistadors
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Link to Original Article @ Automotive News | September 10, 2007 - 12:01 am EST


Saab may not have set the world on fire during its 18 years under the General Motors flag. And in these days of sky-high fuel prices, Hummer is no longer the corporation's it brand.

But there is a reason that Saab and Hummer are in GM's brand portfolio. They attract different kinds of buyers.

From July 1 to Aug. 26, about 61 percent of new Hummer transactions involved a non-GM trade-in, according to the Power Information Network. And nearly 50 percent of Saab buyers during the period dropped off non-GM vehicles. Those numbers compare with a corporatewide GM conquest rate of 35.5 percent.

"Two of every three trades coming in on Hummer H3 purchases are non-GM models, and six of every 10 trades coming in on all Hummer sales are non-GM trades," says Power analyst Tom Libby. "If GM wants to stabilize and eventually regrow its share, it needs all the conquests it can get."

Saturn and Pontiac are also pulling in more than their share of non-GM owners. Saturn attracted 42.7 percent during the July 1-Aug. 26 period. Pontiac, boosted by the Solstice roadster and G5 coupe, fared the best among the old-line GM brands - 40.1 percent non-GM trades.

The Solstice grabbed 53.5 percent conquest buyers, and its two-seat sibling, the Saturn Sky, attracted almost 59 percent....

GM's go-getters

These 10 GM vehicles had the highest conquest rates during July and August. A conquest is defined as a non-GM trade-in on a new purchase.

Vehicle - % Non-GM trade-in
1 - Hummer H3 - 67.50%
2 - Saturn Sky - 58.9%
3 - Saab 9-3 - 58.1%
4 - Saturn Outlook - 55.2%
5 - Pontiac Solstice - 53.5%
6 - Cadillac XLR - 52.1%
7 - Chevrolet Aveo - 50.7%
8 - GMC Acadia - 50.5%
9 - Pontiac G5 - 48.4%
10 - Chevrolet HHR - 47.8%

GM AVERAGE - 35.5%
Source: Power Information Network, July 1-Aug. 26


Vehicle - % Non-GM trade-in
1 - Hummer - 60.90%
2 - Saab - 49.1%
3 - Saturn - 42.7%
4 - Pontiac - 40.1%
5 - GMC - 36.4%
6 - Chevrolet - 35.1%
7 - Cadillac - 29.7%
8 - Buick - 21.4%
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At what price, however?

How could the billions gambled on these nameplates have been used?

economists use the term 'opportunity costs' and I think the Hummer experiment should have been upscale GMC's (and could have easily been a sub-brand)---Saab has been badly mismanaged, but I do believe the nameplates have potential in market niches where GM doesn't have any coverage.

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lol @ G5.

Enzl, I have to somewhat agree. The net result is valuble and investment worthwhile, but I feel the investment could've done further. Encourage Cadillac-HUMMER-SAAB dealers as much as possible; this would be GM's luxury halo. B-P-GMC would fall underneath. The associated cost with a HUMMER-style dealer is expensive, and something combined dealers can deal with since they have the volume of at least three marques. Imagine the HUMMER quonset hut and a Sweedish...thing with a nice Cadillac building nestled in between. After that's done, work on encouraging the B-P-GMC group to modernize their lots.

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I like Flybrian's idea.

But Pontiac? Really?

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Imagine what Pontiac could do without old outdated cars like the Grand Prix. I think the G8 will help those numbers even more.

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Retention is an issue as well, not just conquest sales.

Edited by ZL-1
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lol @ G5.

Maybe we should do more than laugh at the G5 - explain it!!

It's platform mate, HHR, did very well too. I wonder if the Cobalt was just below the top ten?

Other models that don't get a lot of love here, but did well include the Aveo and the XLR.

The Lamdba vehicles eem to be doing there job well.

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I was surprised how many HHR's I saw in the San Francisco area over the weekend for a state thats supposed to be all about the imports.

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Imagine what Pontiac could do without old outdated cars like the Grand Prix. I think the G8 will help those numbers even more.

Tick Tock, Tick Tock! :AH-HA_wink:

Edited by Pontiac Custom-S
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I want to see how all US-market brands rank in conquest buyers.

I really think GM is eating away Ford & Chrysler sales

Ex. Impala v. Taurus.

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I want to see how all US-market brands rank in conquest buyers.

I really think GM is eating away Ford & Chrysler sales

Ex. Impala v. Taurus.

And that there is a big problem. They need to be chipping away at TOYOTA'S sales...who cares if GM is taking sales away from companies who are losing marketshare just as fast as they are?

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These numbers are not as bad as I expected. I figured most would be in the 20-30% range.

But like stated GM needs to eat into Toyota, Hyundia, and Honda sales.

To win you have to beat the strongest and they are the strongest now. I do not have to see them do it over night but I would like to see then make some progress to cut there sales.

GM needs not to worry not too much about Ford and Chrysler as the American car companies may look a whole lot different in the not too different future. There are going to be many cuts at Chrysler and who know what may go down at Ford. Edsel just left for the ISC corp , If Fords are bailing whats that say?

I too expect that the new cars like the G8 will play well to take back sales from 4N models. I got a good look at the under side of a G8 this weekend and it looks like a good quality ride at a expected great price. I would wager many buyers only shown the underside would have guessed the car was a BMW or from Europe. Keeping in mind this is the base car and not the performance model. If the interior appointments measures up to the price class standard it should be a big hit. Not being a coupe will be a big differance in acceptance.

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Pontiac Custom-S: By that "Tick Tock, Tick Tock!" do you mean that it's just a matter of time before Pontiac gets redone with Alpha and RWD? Or do you mean Pontiac's time is running out? Or, like Ford evidently has done with Mercury, has a decision been made in private, to phase it out? Thank you.
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Or, like Ford evidently has done with Mercury, has a decision been made in private, to phase it out? Thank you.

Limiting input to the subject of this thread, it would seem a lot more likely that Buick was gone than Pontiac. That said, I see no reason to kill any of the brands.

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I really think GM is eating away Ford & Chrysler sales

Ex. Impala v. Taurus.

I was reading a thread on gas mileage over at the HHR forums, and it was surprising the number of posts from former Ford owners. You may be right.

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Limiting input to the subject of this thread, it would seem a lot more likely that Buick was gone than Pontiac. That said, I see no reason to kill any of the brands.

Buick does very well in China, whereas Pontiac is a marque known primarily and sold only in North America. Its much more likely that Pontiac will go before Buick unless Pontiac gets some serious global cred.

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Buick does very well in China, whereas Pontiac is a marque known primarily and sold only in North America. Its much more likely that Pontiac will go before Buick unless Pontiac gets some serious global cred.

I am pretty sure that Buick has greater owner loyality in North America than does Pontiac also.

Edited by haypops
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Vehicle - % Non-GM trade-in

1 - Hummer H3 - 67.50%

Reason for Hummer to stay as a part of the GM portfolio...

2 - Saturn Sky - 58.9%

Reason for ALL Saturns (bar non world products) to be Opels.

3 - Saab 9-3 - 58.1%

Reason for Saab to remain a part of GM--- Although I didn't know they had been for 18 years. (?!?!?!)

4 - Saturn Outlook - 55.2%

Reason for the Outlook to stay around DESPITE weaker than expected sales.

6 - Cadillac XLR - 52.1%

Imagine what it would do if it were ACTUALLY world class...

7 - Chevrolet Aveo - 50.7%

Imagine what it would do if GM seriously put some resources and "cool" into the car.

9 - Pontiac G5 - 48.4%

That is a VERY pleasant surprise!!!

10 - Chevrolet HHR - 47.8%

The car the media deemed a failure before it even debuted... Were they scared of something?

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1 - Hummer - 60.90%

2 - Saab - 49.1%

3 - Saturn - 42.7%

Exactly why the divisions need to expand rapidly in the future and become a larger part of GM.

4 - Pontiac - 40.1%

Well, well.. Would ya look at that. Anyone still want to kill Pontiac off?

6 - Chevrolet - 35.1%

7 - Cadillac - 29.7%

I figured Cadillac's numbers would be a lot higher than that. They certainly need to be.

8 - Buick - 21.4%

At least the Enclave is making a difference.

This article pretty much shuts a lot of arguments up. I like it!

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I am pretty sure that Buick has greater owner loyality in North America than does Pontiac also.

Only until their current buyers die off.
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Only until their current buyers die off.

LMAO.

On the serious side, I agree with others here that these numbers don't necessarily mean anything unless we see where the conquests are coming from. If GM is just killing off Chrysler an Ford, well that's not all that great. If Toyota owners are coming in and buying GM's stuff, then that IS great. I think the truth probably falls somewhere in between. I don't think the Toyota loyals are making the jump yet.

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LMAO.

On the serious side, I agree with others here that these numbers don't necessarily mean anything unless we see where the conquests are coming from. If GM is just killing off Chrysler an Ford, well that's not all that great. If Toyota owners are coming in and buying GM's stuff, then that IS great. I think the truth probably falls somewhere in between. I don't think the Toyota loyals are making the jump yet.

Toyota loyals are like Mac users.... they pay a higher price for products that aren't really in the end... better.... just different. Call it a "cult."

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Toyota loyals are like Mac users.... they pay a higher price for products that aren't really in the end... better.... just different. Call it a "cult."

Well, they can join us or drink the Kool Aid. Either way we win.

Give some to Mr Cuckoo Cuckoo Clock too.

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Only until their current buyers die off.

I am a little less negative about Buick than that. When I turned 60 I started lusting after my neihbors beige 5 year old Buick Century. It's hard to imagine but Saturn owners mature into Buick fans. :scratchchin:

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