Detroit Free Press: GM develops brands' images

[The O.C.]

Liz's "definitions" of the marketing divisions' "brand images" is just a bunch of marketing gobble-d-goop crap.

(IMHO)

[Robert Hall]

Liz's "definitions" of the marketing divisions' "brand images" is just a bunch of marketing gobble-d-goop crap.

(IMHO)

Yeah, well GM's 'divisions' are little more than marketing organizations selling a brand image for a corporate-developed product.

[The O.C.]

If you are going to use the high performance Pontiac image thing......for me if it is a Chevrolet high performance car or a Pontiac, no difference. Chevrolet has Corvette and Camaro and the SS and a rich history in performance cars, they can cover any high performance car in any category. Pontiac is not needed.

Well, Saturn has never been needed.

I love Pontiac's history, but the reality has to be separated from emotion. It's over for that brand. The market is saying so.

Good points.

GM needs A LOT more focus on their brands than these simple "lifestyle" definitions.

Like you said....how is Pontiac the "performance" division when you have a Camaro, Impala SS, Colbalt SS, et al?

How is Buick any sort of "luxury" division when your own platform mate, DTS, clearly outscores it in interior appointments and amenities? Or when your LaCrosse doesn't really offer any sort of driving appeal or truly luxurious differences to set it apart from a loaded Impala LTZ?

Where does the Yukon Denali fit (as a "premium" entry) when you already have the Escalade going after "premium" full-size SUV buyers?

[The O.C.]

>>"It is too hard to differentiate these brands that are using cars on the same platform in the same price segment. Buick, Chevy, Pontiac, Saturn all sell midsize sedans in the $20-30k range. Saturn or Pontiac could go away, the G8 is the only Pontiac that isn't a rebadge of a car already sold in the US. "<<

Is it also too hard for nissan/infinity, toyota/lexus, vw/audi/porsche, etc?

Where exactly do you see Nissan/Infiniti, Toyota/Lexus, or VW/Audi/Porsche overlapping in price/positioning? I don't see it.

[balthazar]

>>"how is Pontiac the "performance" division when you have a Camaro, Impala SS, Colbalt SS, et al?"<<

How the hell did Pontiac sell Firebirds, GTOs and 2+2s, et al, when Chevy had Camaros, Chevelle SSs and Impy SSs? 'birds & Goats were on very similar or same chassis's, same rears, same trannys. Different bodies & interiors. "Same cars"... or... maybe...... not so much.

Different products for different tastes.

Why does mercedes slap 200 lbs of fluted rockers and bumper extensions on an AMG- doesn't make it go any faster. Doesn't disguise what the original car is. What the F is the purpose ???

Ahhh: different products for different tastes.

>>"How is Buick any sort of "luxury" division when your own platform mate, DTS, clearly outscores it in interior appointments and amenities?"<<

How is the s-class any sort of "luxury" model when your own platform mate, maybach, clearly outscores it in interior appointments and amenities?

Cadillac has always offered more than Buick- you know this. These are 2 completely different bodys with different interiors & equipment. There are dozens of 'luxury' cars in the segment; why, because Cadillac has one, Buick cannot? Ohh- same parent corporation = no 2 products that can be linked thru platform specs.

>>"Or when your LaCrosse doesn't really offer any sort of driving appeal or truly luxurious differences to set it apart from a loaded Impala LTZ? Where does the Yukon Denali fit (as a "premium" entry) when you already have the Escalade going after "premium" full-size SUV buyers?"<<

Even note the sheer volume of style commentary in all walks of media? A strongly divisive element; can you deny that? What was the point of the altima & the (last) maxima- same platform, same engine, same amenities, different body & interior. Hm-mm... why does that sound familiar? Nissan is shoving the same hoary V-6 and the same (sometimes minorly altered) platform under loads of vehicles- it's the K-car brand of the '00s. How often is shared componentry used in the industry, but why is it the be-all,-end-all guillotine for GM sibling pairs and never so for others?

OC's GM: 10 models, 2 brands, complete happiness.

[gm4life]

3 reasons...

1) They had saturn to replace it. (Personally, I think this might've been a plan all along)

2) GM has ALWAYS maintained at least 6 core divisions. To maintain less than 6 would be to admit defeat. It's a HUGE psychological barrier.

3) Olds was an experiment. (Ironic, since they were always the experimental technology brand anyway) GM had enough share and thought that it would maintain enough share that the Olds phase out wouldn't affect the company. Had the transition gone smoothly, and GM maintained those buyers, you'd probably see at least 2 other brands suffer the same fate by now. But the Olds phase out was HORRIBLE. GM lost loyal buyers, ditched share, spent millions and pissed off dealers and is STILL is dire straights... What was the point?

I hope GM has fabulous marketing up their sleeve... Because this plan could fail miserably. The 9-4X would be suited just as well as a Pontiac. That would give the buyer the choice of a volume 'performance' X-over or to step up to the premium SRX.

But why?

Isn't that Cadillac's job?!!?!?!

Again... Better served as a Pontiac.

Give it Denali's and the Hummer HX and GMC will be fine.

Give Pontiac a G8 line (sedan and coupe/wagon/ST in whatever mix you want) Then give it a hot G6 sedan based on either an AWD version of Eps II, Alpha or Kappa. Leave the Solstice line on Kappa as the coupe counterpart. Leave the Vibe and give it a hot compact coupe and sedan (G4) from Delta II.

It's not rocket science... G8 has PLENTY of room to sell now that the Zeta Buick and Chevrolet sedans are dead and the wagon and ST will pick up would be truck and SUV buyers. Zeta is done, development-wise and will require very little money to keep on the road UNTIL GM gets out of it's cash bind. Not to mention, it's essentially a Holden. G6 can move upmarket from Malibu and stay well below Buick (Since the Invicta will likely move upmarket) and will not compete with Aura. (Since Aura is a car for yuppies and the Pontiac would be more for Lancer owners and wannabe Audi owners) Eps II is done as well, Kappa II is in the works and Pontiac could easily jump on Alpha. Solstice could take the majority of Kappa in volume and body styles. Saturn could get bent or do limited volume. And Delta II is 1) finished and 2) would be a HUGE seller and pull volume if done right.

Some how you nailed it agian. I agree the new Saab SUV would be perfect for Pontiac. If dealers whine enough they might get a nice rebadge. Which would be fine since most people don't know what a Saab is or looks like unless it is a dorky hatch-back with an ugly grille from the last 70's or early 80's. I think Pontiac holds alot of promise with the NG RWD Impala dead the G8 is it for performance RWD four doors from GM that isn't in a Caddy showroom. Giving Pontiac the RWD G8 and Chevrolet the RWD Camaro made sense to me. I just hope Pontiac gets a new G6 and small car along with a next generation Theta that they deserve. The Pontiac dealer in town (not the one I go too) always has a few Torrents on the lot and sells them along side Nissan Rogues etc. and says they always sell, mostly to younger buyers whom didn't like the Equinox because it was all to common. I found that interesting. And face it an extra 2-4K sales enough for Pontiac is all it takes to justify an inexpensive rebadge and off-of a Saab seems like a no brainer because Saab doesn't have the dealer dist. Pontiac does nor sales.

[GEESIXER]

Hey guys. long time since i have posted anything, but i have been reading for a couple of days now and i am ready to weigh in.

I love Pontiac more than any other brand in the world. I would have to agree with taking the Saabs and rebadging it for Pontiac. No one would have a clue! I think that is the best idea out there.

As for Buick being luxery, thats a load of crap! they are no more luxurious than an upscale Chevy or Toyota.

IMO the base model Buick should be nicer than the top Chevy trim level. That is luxery.

[Windy-57]

OK, I'm a bit late to the game on this thread, so I selected a few topics to briefly touch on:

1. Niche vehicles are not dead in this market. In fact, there are more niche vehicles in the market now than there ever have been and, as technologies continue to advance, we'll continue to see more niche vehicles. However, in GM's case, they don't have enough resources (money) to put into the development, production and marketing of niche vehicles; they need to focus on putting their money into high-volume, high-profit vehicles, cut the "nice to haves" and focus on getting back to profitability. Then, after that, they'll think about niche vehicles again. Someone already said it, it's about ROI.

2. Saturn has a lot of value, stop asking GM to kill it. The issue is that GM hasn't found a way to harness the value it has. The first mistake was bringing it "in-house." And the second, bigger mistake was making it an Opel rebadge. I have to admit, I liked the move when they did it, but they completely disregarded their consumer base when they went upscale. Sure the product is better, but their buyers loved two things: great customer service and low prices and, historically, didn't care about the poor quality. In retrospect, a better approach may have been to focus cash on making great Chevy products and then use Saturn as an all-rebadge of Chevy with decontented, slightly differentiated product.

3. Please stop quoting historical sales when making your case for GMC. Using past sales is the same backward-looking approach that has gotten GM into their current troubles. It doesn't take too long to look at GMC's lineup and the trend in gas prices and figure out that their sales are probably going to take a serious shelling through the rest of this year and for the foreseeable future. Not to mention Acadia sales will take a pounding with the arrival of the Traverse.

[smk4565]

Baby steps and incremental change have gotten GM into this mess also. They need radical change, not trying to keep the sinking ship afloat in hope of better days ahead. We've heard the "new products are coming" song and dance routine since 2004 when the Cobalt, G6, Malibu, SRX, XLR, STS, GTO came out. The GTO is gone, Malibu was a rental queen until they fixed it, and the rest of those cars are now dated and not very competitive.

GM is in a cycle of brand re-imaging and re-badging and worthless mid-cycle enhancements like the 2008 STS got. Or they see the SUV market was tanking, so they went from 7-8 seater Tahoes, to 7-8 seater Acadias. The Saab 9-4x shows how clueless they are. Saab is not an SUV brand, yet GM thinks the solution to profit and sales is make an SUV the flagship of a brand. They tried it with the Enclave, Buick sales are down 20% since the Enclave came out.

Ford who looked like they were left for dead a few years ago, looks like they have a future now. Mulally deserves a lot of credit.

[Drew Dowdell]

They tried it with the Enclave, Buick sales are down 20% since the Enclave came out.

most of that loss coming from the beaten-with-an-ugly-stick LaCrosse. The Enclave is far better than all three of the vehicles it replaced and it sells at a higher transaction price too.

[gm4life]

Large cars sales aka Lucerne are slipping but not because it isn't a good car or good looking car because it is. That segment sadly in getting smaller.

[Oracle of Delphi]

Tu uso del español no me impresiona.

Ela não foi feita para impressionar você ou qualquer outra pessoa.

[daves87rs]

Well, another interesting topic here...

What amazes me here is that you guys are so worried about the brands- I'm more worried about the company itself.

With a few years, Toyota (at current sales) could just buy GM as a whole as use them as they see fit.

Don't think for a minute that they won't-they could use both GM products and there world wide adavantage to make them selves about as powerful as they come. If a company was smart, it could be easy to use a company like GM to their advantage.....

Realize this- GM HAS to get that Volt out and wow the public. It will help change the image of the company, and add bite to the sales of everything else...

If Toyota gets it out first-it could be game over for GM.

Toyota will just keep adding to their fan club, while GM struggles for another excuse....

We will see...

[daves87rs]

I have/had far bigger problems with Olds' validity.

Sure- if you give performance models across the board to Chevy, naturally it undermines Pontiac. How about reversing that??

Simple, and it could work IF Pontiac only has a few models....

[daves87rs]

I imagine that PCS has more fans here than any other current poster. Reading PCS' posts is a highlight of the day.

[daves87rs]

Large cars sales aka Lucerne are slipping but not because it isn't a good car or good looking car because it is. That segment sadly in getting smaller.

Well, would you want a "grandpa" car?

That is one of many reasons why the DTS and the Lucy will be gone very soon....

[daves87rs]

I love a snarky remark as much as the next guy, but....are you really impressed by the findings of this GM sponsored boondoggle? What impressive information has been provided? Coincidentally, this news and the Rickster's "let's slash some more costs" routine are more of the same from GM.

You convinced that more of the same is a good idea for GM right now? What are the odds of success for these ideas when we could have proposed them (and a few of us have) years ago with just a few minutes of thought?

I'm sincerely scared for GM, its workers, its fans & anyone tied to the auto industry right now. You should be too, based on the intellectual laziness and poor thinking going on at GM.

I think at this point I would be more worried about the ecomony...that is going to decide GM's near future...

[ehaase]

Large cars sales aka Lucerne are slipping but not because it isn't a good car or good looking car because it is. That segment sadly in getting smaller.

Considering that Toyota may drop the Avalon and it appears that the largest Buick sedan may be the LaCrosse/Invicta in a few years, unless the 2010 Taurus is a hit, I think by 2015 you will not see mainstream brands sell anything longer than 190 inches. CAFE and changing demand may result in nothing larger than the Camry/Accord/Fusion/Malibu class, except for luxury brands.

[gm4life]

That would be very sad. I like big cars.

[smk4565]

With a few years, Toyota (at current sales) could just buy GM as a whole as use them as they see fit.

We will see...

Toyota could do that now. GM was worth $7 billion a couple weeks ago, even when the stock is up they are only worth $15-20 billion. Toyota made $17 billion in profit last year, so they could afford it if they wanted to buy GM, or any other automaker.

[The O.C.]

That would be very sad. I like big cars.

.....size queen......

[gm4life]

Toyota could do that now. GM was worth $7 billion a couple weeks ago, even when the stock is up they are only worth $15-20 billion. Toyota made $17 billion in profit last year, so they could afford it if they wanted to buy GM, or any other automaker.

But they won't. Trust me it is called legacy issues, and uhhh poor press and whole list of other problems.

[Lamar]

Ela não foi feita para impressionar você ou qualquer outra pessoa.

Obrigado.

I just started taking up Portuguese, but I could make out what you said due to me knowing Spanish.

[cire]

Chevrolet is strong enough to handle the mainstream, affordable, volume portion of the market on its own. If GM really wants to see any kind of return on the money it spends to market its other brands (AKA increased market share), then the brands need to be properly repositioned and/or completely transformed to allow them to function in their original and intended purpose of targeting other portions of the market (AKA reduced cannibalization). Chevrolet, Saturn, and Pontiac (and Buick to a lesser extent) compete for the same customers while escalating the corporation's decline in market share. The proposed plan below would reduce internal competition while giving each division a specific purpose and distinct identity in the market and GM's brand hierarchy.

Affordable, Mainstream, Volume Network: Chevrolet

CHEVROLET:

* Beat: 3-door minicar on modified Gamma(?) platform.

* Groove: 5-door minicar on modified Gamma(?) platform.

* Aveo: Subcompact 3-door/5-door/sedan on Gamma platform.

* Monza (my preferred name for the upcoming Cruze): Compact sedan/coupe/5-door on Delta platform.

* Volt: Plug-in hybrid on Delta platform.

* Malibu: Midsize sedan on LWB Epsilon platform.

* Monte Carlo: Midsize coupe on LWB Epsilon platform.

* Impala: Large sedan on LWB Epsilon Plus platform.

* Camaro: Pony car coupe/convertible on LWB Alpha platform.

* Corvette: Flagship sports coupe/convertible on C7 platform.

* Captiva: Compact crossover on SWB Theta platform.

* Equinox: Midsize crossover on LWB Theta platform.

* Traverse: Large crossover on Lambda platform.

* Colorado: Next gen shrinks to compact truck size.

* Trailblazer: Compact 5-door SUV; Jeep Wrangler competitor on next gen Colorado platform.

* Silverado: Fullsize truck.

* Suburban: Next gen 5-door SUV shrinks to Tahoe size (Tahoe name is retired) on Silverado platform.

Midmarket Dealer Network: Pontiac/Opel/GMC. These 3 divisions should be combined to form this network.

PONTIAC:

* Converts future lineup to RWD.

* Targets customers who want a BMW, but can't afford BMW's price of entry (basically a cut-rate BMW).

* Marketing/advertising should be focused on sportiness and fun to drive character of the products.

* Next gen Solstice roadster/coupe would be built on modified SWB Alpha platform (162 inches long/100 inch wheelbase). The next gen car's styling would be aligned with global versions sold by Vauxhall/Opel/Holden/Daewoo (the Sky would be discontinued in favor of "TwinTop" roadster/coupe versions of the Corsa/Astra/Insignia). The car's modified SWB Alpha platform would be shared with a luxury retractable hardtop roadster for Cadillac.

* G2: Subcompact 2+2 3-door/5-door on SWB Alpha platform (171 inches long/105 inch wheelbase). Styling would be aligned with Holden product.

* G4: Compact sedan/coupe on LWB Alpha platform (180 inches long/109 inch wheelbase). Styling would be aligned with resurrected Holden Torana. Platform would be utilized for compact sedan/coupe/wagon for Cadillac.

* G6: Midsize sedan/coupe on SWB Sigma-Zeta platform (189 inches long/114 inch wheelbase). Styling would be aligned with downsized next gen Holden Commodore/Monaro. Platform would be utilized for next gen midsize CTS sedan/coupe/wagon products for Cadillac.

* G8: Large sedan on LWB Sigma-Zeta platform (197 inches long/118 inch wheelbase). Styling would be aligned with downsized next gen Holden Statesman. Platform would be utilized for flagship sedan for Cadillac.

OPEL:

* Replaces Saturn in GM's brand hierarchy.

* Targets customers who prefer premium, Euro influenced products and wouldn't go near a domestic vehicle.

* Marketing/advertising should be very sophisticated and focus on the Euro origins and driving dynamics of the products.

* Corsa: Subcompact 3-door/5-door/"TwinTop" roadster on Gamma platform.

* Astra: Compact 3-door/5-door/sedan/"TwinTop" coupe on Delta platform.

* Insignia: Midsize sedan/wagon/"TwinTop" coupe on SWB Epsilon platform.

* Meriva: Subcompact MPV on Gamma platform.

* Zafira: Compact MPV on Delta platform.

* Olympia: Midsize MPV on SWB Epsilon platform.

GMC:

* Carries FWD/AWD premium crossovers/SUTs.

* Targets customers who prefer a sportier, Euro feel in their crossover or SUT.

* Marketing/advertising should be focused on the sportiness and metropolitan utility of the products.

* Envoy: Compact crossover/SUT on SWB Theta.

* Terrain: Midsize crossover/SUT on LWB Theta.

* Acadia: Large crossover/SUT on Lambda.

Luxury Dealer Network: Saab/Buick/Cadillac. These 3 brands should be combined to form this network.

SAAB:

* My first intention was to sell this brand for the revenue, but I changed my mind after some reconsideration of the merits of refashioning this brand.

* Returns to original concept of quirky Swedish luxury brand with a lineup that consists solely of FWD/AWD luxury hatchbacks and wagons.

* Targets customers who like to fancy themselves as intelligent and independent.

* Marketing/advertising should be abstract and quirky, but still convey the luxury intentions and Swedish origins of the brand.

* 9-1: Subcompact 3-door/5-door/wagon on Gamma.

* 9-3: Compact 3-door/5-door/wagon on Delta.

* 9-5: Midsize 3-door/5-door/wagon on SWB Epsilon.

BUICK:

* Moves upmarket with FWD luxury cars and FWD/AWD crossovers with increased content and features that truly target the luxury portion of the market.

* Targets customers who value luxury features combined with the advantages of FWD.

* Marketing/advertising should be mature and sophisticated while focusing on the brand's American luxury heritage and the products' advanced technology/engineering.

* Regal: Compact sedan on SWB Epsilon platform.

* Invicta: Midsize sedan on LWB Epsilon platform.

* LeSabre: Large sedan on LWB Epsilon Plus platform.

* Velite: Compact coupe-cabrio on SWB Epsilon platform.

* Riviera: Midsize coupe-cabrio on LWB Epsilon platform.

* Rendezvous: Compact crossover on SWB Theta platform.

* Centieme: Midsize crossover on LWB Theta platform.

* Enclave: Large crossover on Lambda.

CADILLAC:

* Focuses on well executed RWD car products that will restore the division's former "Standard Of The World" status.

* Competently targets BMW and Mercedes Benz.

* Marketing/advertising should focus on the international luxury appeal of the brand and the products' superbly crafted details and advanced engineering.

* I struggle with the alpha model nomenclature that the division employs, so I just provided descriptions and platforms for most of the products.

* Compact sedan/coupe/wagon on LWB Alpha.

* Midsize sedan(CTS)/coupe/wagon on SWB Sigma-Zeta.

* Large flagship sedan on LWB Sigma-Zeta.

* Retractable hardtop roadster on modified SWB Alpha platform.

* XLR: Flagship retractable hardtop roadster on Corvette C7 platform.

HUMMER:

* Sell it. The traditional truck/SUV segment is rapidly shrinking and Chevrolet is more than capable of handling this segment on its own. This brand has totally outlived its usefulness. I would love to see GM generate some revenue by selling this division to an up and coming foreign company who foolishly thinks that it can make something relevant or desirable out of this jurassic brand.

Edited July 27, 2008 by cire

[longtooth]

Chevrolet is strong enough to handle the mainstream, affordable, volume portion of the market on its own. If GM really wants to see any kind of return on the money it spends to market its other brands (AKA increased market share), then the brands need to be properly repositioned and/or completely transformed to allow them to function in their original and intended purpose of targeting other portions of the market (AKA reduced cannibalization). Chevrolet, Saturn, and Pontiac (and Buick to a lesser extent) compete for the same customers while escalating the corporation's decline in market share. The proposed plan below would reduce internal competition while giving each division a specific purpose and distinct identity in the market and GM's brand hierarchy.

Affordable, Mainstream, Volume Network: Chevrolet

CHEVROLET:

* Beat: 3-door minicar on modified Gamma(?) platform.

* Groove: 5-door minicar on modified Gamma(?) platform.

* Aveo: Subcompact 3-door/5-door/sedan on Gamma platform.

* Monza (my preferred name for the upcoming Cruze): Compact sedan/coupe/5-door on Delta platform.

* Malibu: Midsize sedan on LWB Epsilon platform.

* Monte Carlo: Midsize coupe on LWB Epsilon platform.

* Impala: Large sedan on LWB Epsilon Plus platform.

* Camaro: Pony car coupe/convertible on LWB Alpha platform.

* Corvette: Flagship sports coupe/convertible on C7 platform.

* Captiva: Compact crossover on SWB Theta platform.

* Equinox: Midsize crossover on LWB Theta platform.

* Traverse: Large crossover on Lambda platform.

* Colorado: Next gen shrinks to compact truck size.

* Trailblazer: Compact 5-door SUV; Jeep Wrangler competitor on next gen Colorado platform.

* Silverado: Fullsize truck.

* Suburban: Next gen 5-door SUV shrinks to Tahoe size (Tahoe name is retired) on Silverado platform.

Midmarket Dealer Network: Pontiac/Opel/GMC. These 3 divisions should be combined to form this network.

PONTIAC:

* Converts future lineup to RWD.

* Targets customers who want a BMW, but can't afford BMW's price of entry (basically a cut-rate BMW).

* Marketing/advertising should be focused on sportiness and fun to drive character of the products.

* Next gen Solstice roadster/coupe would be built on modified SWB Alpha platform (162 inches long/100 inch wheelbase). The next gen car's styling would be aligned with global versions sold by Vauxhall/Opel/Holden/Daewoo (the Sky would be discontinued in favor of "TwinTop" roadster/coupe versions of the Corsa/Astra/Insignia). The car's modified SWB Alpha platform would be shared with a luxury retractable hardtop roadster for Cadillac.

* G2: Subcompact 2+2 3-door/5-door on SWB Alpha platform (171 inches long/105 inch wheelbase). Styling would be aligned with Holden product.

* G4: Compact sedan/coupe on LWB Alpha platform (180 inches long/109 inch wheelbase). Styling would be aligned with resurrected Holden Torana. Platform would be utilized for compact sedan/coupe/wagon for Cadillac.

* G6: Midsize sedan/coupe on SWB Sigma-Zeta platform (189 inches long/114 inch wheelbase). Styling would be aligned with downsized next gen Holden Commodore/Monaro. Platform would be utilized for next gen midsize CTS sedan/coupe/wagon products for Cadillac.

* G8: Large sedan on LWB Sigma-Zeta platform (197 inches long/118 inch wheelbase). Styling would be aligned with downsized next gen Holden Statesman. Platform would be utilized for flagship sedan for Cadillac.

OPEL:

* Replaces Saturn in GM's brand hierarchy.

* Targets customers who prefer premium, Euro influenced products and wouldn't go near a domestic vehicle.

* Marketing/advertising should be very sophisticated and focus on the Euro origins and driving dynamics of the products.

* Corsa: Subcompact 3-door/5-door/"TwinTop" roadster on Gamma platform.

* Astra: Compact 3-door/5-door/sedan/"TwinTop" coupe on Delta platform.

* Insignia: Midsize sedan/wagon/"TwinTop" coupe on SWB Epsilon platform.

* Meriva: Subcompact MPV on Gamma platform.

* Zafira: Compact MPV on Delta platform.

* Olympia: Midsize MPV on SWB Epsilon platform.

GMC:

* Carries FWD/AWD premium crossovers/SUTs.

* Targets customers who prefer a sportier, Euro feel in their crossover or SUT.

* Marketing/advertising should be focused on the sportiness and metropolitan utility of the products.

* Envoy: Compact crossover/SUT on SWB Theta.

* Terrain: Midsize crossover/SUT on LWB Theta.

* Acadia: Large crossover/SUT on Lambda.

Luxury Dealer Network: Saab/Buick/Cadillac. These 3 brands should be combined to form this network.

SAAB:

* My first intention was to sell this brand for the revenue, but I changed my mind after some reconsideration of the merits of refashioning this brand.

* Returns to original concept of quirky Swedish luxury brand with a lineup that consists solely of FWD/AWD luxury hatchbacks and wagons.

* Targets customers who like to fancy themselves as intelligent and independent.

* Marketing/advertising should be abstract and quirky, but still convey the luxury intentions and Swedish origins of the brand.

* 9-1: Subcompact 3-door/5-door/wagon on Gamma.

* 9-3: Compact 3-door/5-door/wagon on Delta.

* 9-5: Midsize 3-door/5-door/wagon on SWB Epsilon.

BUICK:

* Moves upmarket with FWD luxury cars and FWD/AWD crossovers with increased content and features that truly target the luxury portion of the market.

* Targets customers who value luxury features combined with the advantages of FWD.

* Marketing/advertising should be mature and sophisticated while focusing on the brand's American luxury image and the products' advanced technology/engineering.

* Regal: Compact sedan on SWB Epsilon platform.

* Invicta: Midsize sedan on LWB Epsilon platform.

* LeSabre: Large sedan on LWB Epsilon Plus platform.

* Velite: Compact coupe-cabrio on SWB Epsilon platform.

* Riviera: Midsize coupe-cabrio on LWB Epsilon platform.

* Rendezvous: Compact crossover on SWB Theta platform.

* Centieme: Midsize crossover on LWB Theta platform.

* Enclave: Large crossover on Lambda.

CADILLAC:

* Focuses on well executed RWD car products that will restore the division's former "Standard Of The World" status.

* Competently targets BMW and Mercedes Benz.

* Marketing/advertising should focus on the international luxury appeal of the brand and the products' superbly crafted details and advanced engineering.

* I struggle with the alpha model nomenclature that the division employs, so I just provided descriptions and platforms for most of the products.

* Compact sedan/coupe/wagon on LWB Alpha.

* Midsize sedan(CTS)/coupe/wagon on SWB Sigma-Zeta.

* Large flagship sedan on LWB Sigma-Zeta.

* Retractable hardtop roadster on modified SWB Alpha platform.

* XLR: Flagship retractable hardtop roadster on Corvette C7 platform.

HUMMER:

* Sell it. The traditional truck/SUV segment is rapidly shrinking and Chevrolet is more than capable of handling this segment on its own. This brand has totally outlived its usefulness. I would love to see GM generate some revenue by selling this division to an up and coming foreign company who foolishly thinks that it can make something relevant or desirable out of this jurassic brand.

Did you construct this posting from your research?

If so, very impressive when contrasted with the usual Saturn-Pontiac feud ongoing here.

Thank you.

[smk4565]

Cire's plan looks nice, but GM has no money. They can't even update every current model every 5-6 years and make them all competitive, let alone expand. They will keep losing market share, unless 100% of the products they build are executed as well as the CTS, Malibu, Corvette, Silverado.

The North American solution is this:

Chevy

Aveo (replace the current one with something all new)

Cruze (looks like they will get this right)

HHR

Malibu (regular EpsilonII, current size or slightly smaller)

Impala (LWB EpsilonII, 198 inches long or so, $25-32k, basically a roomier Malibu)

Camaro

Corvette

Equinox (this is the midsize SUV now, HHR will have to be their small vehicle that offers cargo room)

Traverse

Tahoe/Suburban (this stays for the market that needs a truck, but production levels drop)

Colorado (needs totally redone, unibody with better engines)

Silverado

Savana

Buick (cushy, quiet vehicles that are a step up from Chevy)

DeltaII sedan, slightly larger than a Cruze, but with the wood/leather treatment (23-29k)

Invicta (fancy Malibu $29-35k)

Lucerne (this could be a dressed up Impala on EpsilonII but would be better as a Zeta car, G8 size is good)

Pontiac (sporty suspensions, more like Mazda or Nissan but more rwd and use turbo 4s and small DI V6s)

Opel Astra based sedan, 3 door and 5 door, but geared for the American market

Solstice

G6 (alpha based $22-28k, like a rear drive Jetta)

G8

GMC

Canyon

Colorado

Safari

Terrain, Small crossover (like the old Vue before it got heavy $23k base)

Envoy, midsize crossover (fancier version of the Equinox, $29k base)

Acadia, (fancier than the Traverse, base around $36k)

Cadillac (global brand with new diesels, DOHC V6s and V8s. hybrid and 8-speed transmission available on every model)

BTS $33k base, small alpha based, 3-series sized sedan/coupe/convertible

BRX $35k, small crossover based on BTS

CTS $45k base, midsize SigmaII sedan/coupe/wagon (aluminum chassis if possible, maybe push base price closer to $49k)

SRX $50-65k SigmaII aluminum chassis

STS $60k, aluminum version of SigmaII, midsize 4 door coupe

XLR $80k, C7 platform, (interior needs to go way upscale)

XTS $80-120k full size aluminum chassis sedan in regular (198 inches) and extended length (204 inches)

Hummer, Saab and Saturn die off.

Edited July 26, 2008 by smk4565

[daves87rs]

You guys still have too many cars on there...

Who is going to buy them all?

[daves87rs]

Toyota could do that now. GM was worth $7 billion a couple weeks ago, even when the stock is up they are only worth $15-20 billion. Toyota made $17 billion in profit last year, so they could afford it if they wanted to buy GM, or any other automaker.

I would wait a while longer though....

[daves87rs]

But they won't. Trust me it is called legacy issues, and uhhh poor press and whole list of other problems.

That can be made to disappear, trust me on that one.....

[cire]

Did you construct this posting from your research?

If so, very impressive when contrasted with the usual Saturn-Pontiac feud ongoing here.

Thank you.

The lineups and brand strategies are just based on reading the original linked article and applying my vision of what direction I believe GM should follow to achieve their goals and successfully implement a turnaround. I also based the restructuring and reconfiguration of the dealer networks on the much posted opinion that GM cannot afford a repeat of the Oldsmobile discontinuation fiasco. If that is the case, then GM must find a way to make each division relevant in both the U.S. and global auto markets. This was my way of trying to utilize brand image and available platforms in an attempt to make it happen.

To me, Saturn is the most redundant division. I do like the brand and its current lineup, but it is positioned too close to Chevy to make any major impact on the market or help GM increase its market share. Saturn is in a no win situation. If it stays positioned where it currently is, then it competes head on with Chevy. If they move it upmarket, then it loses its established customer base while also failing to attract any new customers to the brand or the corporation. That's why I firmly believe that Saturn should be converted to Opel because Opel would probably have the best chance of appealing to customers who normally wouldn't consider a GM brand. I equate giving Saturn premium Opel products to offering high end merchandise at Walmart; Saturn and Walmart are simply not places that potential customers consider when they shop for premium products.

There is nothing wrong with Pontiac that an all RWD lineup couldn't fix. If they could apply some engineering prowess to make the proposed Sigma-Zeta platform lighter while also downsizing the products a bit, then I don't see why Pontiac couldn't continue into the future with this type of lineup (I did research BMW and Mercedes products to establish lengths and wheelbases for Pontiac's products). Turbocharged 4-cylinder/V6 engines and/or other alternative engine technologies (hybrid, diesel, etc.) could provide a nice balance between performance and fuel efficiency. They do not have to stuff large gas guzzling engines into every product or trim level to reinforce the division's affordable performance image.

I also changed my mind about Saab for a couple of reasons. First, if the brand was returned to its quirky origins, then it wouldn't be competitive with Cadillac or Buick in the luxury portion of the market. Second, if it was included in the luxury network, it might give Buick and Cadillac some credibility in the luxury segment in global markets where Saab is a much more established luxury brand. I used to be on the "sell Saab" bandwagon, but I changed my mind. If the division is handled right, it could still be a vital part of GM's turnaround.

I did forget to include the Volt on the original post. I did perform an edit to include it in Chevy's lineup.

I did enjoy reading your feedback and I appreciate the time you took to read the rather long post that I submitted (which I realize is not out of character for me).

Edited July 26, 2008 by cire

[cire]

You guys still have too many cars on there...

Who is going to buy them all?

I was considering this restructuring/reconfiguration on a global scale, instead of being solely exclusive to the U.S. market. I realize that this might not work either. I know that the Pontiac products would go by the Holden name in Australia. This presents a problem in the Australian market since there are also Chevy/Daewoo (Barina, Viva, Epica, Captiva) and Opel (Astra) products in Holden's lineup as well. There are also other global regions where models and brands do not exactly line up with what I proposed here. So basically, the thought of this plan working globally is not completely feasible.

There are some eliminations I could make to try to pare down the number of vehicles:

Chevy:

* Eliminate Monte Carlo. I am not sure mainstream midsize coupes are exactly setting the auto market on fire at the moment.

Pontiac:

* Eliminate G2. No Cadillac counterpart to leverage development costs.

GMC:

* Eliminate entire lineup and relegate brand to commercial fleet vehicle sales only. Having crossovers in any part of the midmarket dealer network might be a little redundant since Opel is offering MPVs.

Buick:

* Eliminate Velite and Riviera. I like the thought of these 2 hardtop convertibles as image vehicles for the brand, but this move might be a little excessive given Buick's clientele and GM's precarious financial situation.

I looked over the my previous proposal several times. This is all I could see cutting at the moment.

[daves87rs]

I was considering this restructuring/reconfiguration on a global scale, instead of being solely exclusive to the U.S. market. I realize that this might not work either. I know that the Pontiac products would go by the Holden name in Australia. This presents a problem in the Australian market since there are also Chevy/Daewoo (Barina, Viva, Epica, Captiva) and Opel (Astra) products in Holden's lineup as well. There are also other global regions where models and brands do not exactly line up with what I proposed here. So basically, the thought of this plan working globally is not completely feasible.

There are some eliminations I could make to try to pare down the number of vehicles:

Chevy:

* Eliminate Monte Carlo. I am not sure mainstream midsize coupes are exactly setting the auto market on fire at the moment.

Pontiac:

* Eliminate G2. No Cadillac counterpart to leverage development costs.

GMC:

* Eliminate entire lineup and relegate brand to commercial fleet vehicle sales only. Having crossovers in any part of the midmarket dealer network might be a little redundant since Opel is offering MPVs.

Buick:

* Eliminate Velite and Riviera. I like the thought of these 2 hardtop convertibles as image vehicles for the brand, but this move might be a little excessive given Buick's clientele and GM's precarious financial situation.

I looked over the my previous proposal several times. This is all I could see cutting at the moment.

Whil there are some nice cars on there, more cars/trucks still need to be cut....there is simply not enough buyers for them...

[smk4565]

I too believe GMC could be eliminated or better used as the commercial/fleet truck maker. They would still have pickups and vans, plus medium duty chassis. GMC could handle moving vans, dump trucks, cable/phone company trucks, etc. Then Chevy could be solely retail truck sales. If they do this, then Buick gets a couple crossover SUVs that are upgrades over the Chevy version. I don't think GM needs Buick and GMC both to offer a slightly upscale version of a Chevy SUV, one brand can handle that, to me it doesn't matter which one.

[FUTURE_OF_GM]

OK, I'm a bit late to the game on this thread, so I selected a few topics to briefly touch on:

2. Saturn has a lot of value, stop asking GM to kill it. The issue is that GM hasn't found a way to harness the value it has. The first mistake was bringing it "in-house." And the second, bigger mistake was making it an Opel rebadge. I have to admit, I liked the move when they did it, but they completely disregarded their consumer base when they went upscale. Sure the product is better, but their buyers loved two things: great customer service and low prices and, historically, didn't care about the poor quality. In retrospect, a better approach may have been to focus cash on making great Chevy products and then use Saturn as an all-rebadge of Chevy with decontented, slightly differentiated product.

If a GM with tons of cash and market strength couldn't develop Saturn into more than a niche brand, what makes you think the current GM can? I'm all for keeping Saturn, I think the division has tons of potential. However, when it comes to eliminating core divisions (i.e. major divisions) it makes no sense to value a fledgling Saturn over a developed and well positioned Pontiac, potential or not. Pontiac has sales and sales mean money and share.

3. Please stop quoting historical sales when making your case for GMC. Using past sales is the same backward-looking approach that has gotten GM into their current troubles. It doesn't take too long to look at GMC's lineup and the trend in gas prices and figure out that their sales are probably going to take a serious shelling through the rest of this year and for the foreseeable future. Not to mention Acadia sales will take a pounding with the arrival of the Traverse.

Then don't use 'POTENTIAL' as a basis for justifying Saturn.

There is just as much 'POTENTIAL' that hybrids and electrics will revitalize the truck market as there is in Saturn becoming a major player.

[FUTURE_OF_GM]

most of that loss coming from the beaten-with-an-ugly-stick LaCrosse. The Enclave is far better than all three of the vehicles it replaced and it sells at a higher transaction price too.

Exactly!

Just like Bob Lutz said; we're focusing on profitability.

[Croc]

Reposted from March 2008:

If we're gonna play Bob Lutz on product planning here, then let me give it my shot:

Chevrolet:

Nomad (Gamma, replaces Aveo), hatch and sedan, $10.5k base

Monza (Delta, replaces Cobalt), sedan, coupe and 5-door, $13.5k base

Malibu (Ep-II), sedan/coupe, $18k base sedan, $19.5 base coupe

Impala (Ep-II LWB), sedan, $24k base

Camaro (as-is)

Corvette (as-is)

Silverado (as-is)

Avalanche (as-is)

Traverse (as-is)

Tahoe (as-is)

Suburban (as-is)

Colorado (GMT-355), refreshed

Lumina (renamed Volt)I think "Lumina" would fit this vehicle quite well as it maintains the "electricity" theme, but sounds cleaner, more upscale and less industrial than "Volt."

Captiva (Theta, replaces Equinox), 5 and 7 person configurations, base $22k

Pontiac*:

Solstice (as-is), base $20k

Tempest (Alpha, replaces G6 line), sedan, coupe and soft-top convertible, bases $24k

Bonneville (VE/Zeta, renamed G8), sedan, bases $28k

Safari (VE/Zeta), ute

*Pontiac will re-adopt a cockpit-like interior theme where center stack is canted toward the driver, further emphasizing these vehicles as driving machines

GMC

Acadia (as-is)

Canyon (GMT-355), refreshed. moved slightly up-market

Yukon/XL (as-is)

Sierra (as-is)

Terrain (Torrent replacement)

Summit (GMC version of Avalanche, Escalade EXT dropped)

Buick*:

Invicta (Ep-II) sedan, bases $33k

Enclave (as-is)

Riviera (VE/Zeta, Velite with softer nose), bases $40k

Electra (VE/Zeta), sedan, bases $38k

*Benchmark Lexus in quality and ride/handling characteristics. Properly executed, there would be no overlap/cannibalization between Cadillac and Buick because the personalities would be so different. Buick is now a "boutique" brand.

Saturn*:

Corsa (Gamma), 3 and 5 door, base $13k

Meriva (Gamma), base $15k

Tigra (Kappa, replaces SKY), base $24k

Astra (as-is), base $16.5k

Astra TwinTop, base $28k

Insignia (Ep-II, replaces AURA), sedan/wagon, base $22k

Antara (Theta), base $28k

Zafira (Delta), base $24k

*Sharing much of its platforms with Chevrolet should not be an issue. Saturn would be very Euro-flavored with a VW-like premium feel in execution and interiors. I also think the European names suck a lot less than their all-CAPS American equivalents.

Cadillac*

ATS/ATC (Alpha), sedan, coupe and hardtop convertible, bases $30k sedan and $34k coupe, $42k hardtop conv.

BRX (TE), bases $38k

CTS/CTC/CTX (Sigma), sedan, coupe and wagon, bases $42k sedan, $46k coupe, $48k wagon

SRX (Sigma) bases $46k (well-appointed...it would still top off at around $63k like the current model)

KLR (Kappa), bases $33k

XLR (as-is, just refreshed), bases $72k for turbo 6, $85k for 8

FTS (Zeta), sedan, bases $65k

*Cadillac will offer a variety of engines, including turbodiesels. All interiors will be well-appointed. Prices aligned to competitors v. size class. Escalade family dropped, no need to duplicate as HUMMER shares showrooms and moves upmarket, plus has offroad capabilities Escalade does not.

SAAB

9-1 (Delta), sedan/sportcombi, base $22k

9-3 (as-is), base $28k sedan, $30k sportcombi, $36k soft-top convertible, $40k hardtop conv.

9-4X (TE) as planned, $34k base

9-5 (Ep-II LWB), sedan/sportcombi, think of this as a companion to my Impala above, bases $35k

9-6X (Lambda SWB), 5/7-seater, bases $40k

HUMMER*

H (GMT-900), think of this as a Range Rover competitor, bases $59k, tops around $90k

Ht (GMT-900), midgate-enhanced H, bases $62k

M (GMT-345), essentially a refreshed H3, bases $37k

Mt (GMT-355?), H3 SUT renamed, bases $40k

R (??), HX production, bases 25k

*The only justification for keeping HUMMER is to focus it on high-end capability. Since sold alongside Cadillacs, H and Ht replace the Escalade family to compete toe-to-toe with the Range Rover. M represents the only traditional truck-based midsized SUV in the GM family, and that is because it is a true off-road machine. This vehicle is repositioned upward and offers a premium cabin, especially compared to the current model. The R is the only "volume" model at HUMMER, and it carries a 5k premium over the Wrangler because of its higher levels of quality and capability.

NOTE ON SALES CHANNELS

Brands would be sold in the following dealership sales channels:

Chevrolet (standalone)

Buick/Pontiac/GMC

Saturn/SAAB

Cadillac/HUMMER

The logic behind these groupings is that each sales channel will have a complete line-up. Chevrolet would have 14* badges, B/P/GMC would also have 14*, Cadillac/Hummer 12*, SAAB/Saturn 13.* These groupings also reflect the general market positioning for the brands. SAAB/Saturn are both euro-flavored, and this pairing ranges from premium (Saturn) to sporty near-lux (SAAB). Cadillac/HUMMER are both premium offerings, with Cadillac as premium luxury and HUMMER as premium-capability with upscale appointments. B/P/GMC are boutique brands; Pontiac retains youthful orientation and fun-to-drie factor with focused models and sexy styling. GMC continues offering premium trucks and SUVs while expanding on the Denali sub-brand (likely capturing low-end Escalade buyers who do not want the HUMMER off-road capabilities). Buick will offer near-lux and traditional lux vehicles, with an emphasis on quiet and comfort above sharp cornering abilities and 0-60 times. Styling is to be emphasized.

Changes I would now make:

*Kill "SRX" and rename what I have as "BRX"

*Rename Saturn to Opel

*Sell Hummer, merge lineup with GMC (as detailed above). GMC now Land Rover/upscale-offroad Trucks & SUVs. Professional-Grade, indeed--GMCs will be Chevrolet/Cadillac clones with upgraded, beefier mechanical components and higher prices.

*Acadia dropped.

*Sales channels altered; Chevrolet (standalone), Pontiac/GMC/SAAB, Opel/Buick/Cadillac.

Edited July 27, 2008 by Croc

[cire]

I have looked over my proposal and I agree with those of you that believe that there are still too many products. My revised proposal takes GM from currently offering approximately 43 vehicle model lines across 8 brands in the U.S. to offering 34 vehicle model lines across 4 brands. The revised proposal only reflects how the restructuring would look in the United States; the lineups would need to be revised to fit in with the brand structuring in other regions.

My revisions to the U.S. lineups are included in the quote below:

Affordable, Mainstream, Volume Network: Chevrolet.

CHEVROLET:

* Nova: Subcompact sedan/coupe on Gamma platform (styling inspired by Beat Concept).

* Groove: Subcompact 5-door on Gamma platform (styling inspired by Groove Concept; sort of a mini-crossover).

* Monza: Compact sedan/coupe on Delta platform (U.S. version of Cruze).

* Nomad: Compact 5-door on Delta platform (HHR/Vibe replacement; sort of a tall wagon).

* Volt: Plug-in hybrid on Delta platform.

* Malibu: Midsize sedan on LWB Epsilon platform.

* Impala: Large sedan on LWB Sigma-Zeta platform (rebadge of downsized next gen Holden Statesman/Caprice; 197 inches long/118 inch wheelbase).

* Camaro: Pony car coupe/convertible on Alpha platform.

* Corvette: Flagship sports coupe/convertible on C7 platform.

* Captiva: Compact crossover on SWB Theta platform.

* Equinox: Midsize crossover on LWB Theta platform.

* Traverse: Large crossover on Lambda platform.

* Colorado: Next gen shrinks to compact truck size.

* Trailblazer: Compact 5-door SUV; Jeep Wrangler competitor on next gen Colorado platform.

* Silverado: Fullsize truck.

* Suburban: Next gen 5-door SUV shrinks to Tahoe size (Tahoe name is retired) on Silverado platform.

Midmarket Dealer Network: Opel.

OPEL:

* Replaces Saturn/Pontiac in GM's brand hierarchy.

* Targets customers who prefer premium, Euro influenced products and wouldn't go near a domestic vehicle.

* Marketing/advertising should be very sophisticated and focus on the Euro origins/style/driving dynamics of the products.

* GM's involvement/connection should be downplayed to avoid alienating potential customers.

* Corsa: Subcompact 3-door/5-door/"TwinTop" roadster (next gen Tigra incorporated into Corsa line to save marketing costs) on Gamma platform.

* Astra: Compact sedan/3-door/5-door/"TwinTop" coupe on Delta platform.

* Insignia: Midsize sedan/5-door on SWB Epsilon platform.

* Meriva: Subcompact MPV on Gamma platform.

* Zafira: Compact MPV on Delta platform.

* Vectra: Morphs into a midsize MPV on SWB Epsilon platform to replace Vectra wagon.

* Calibra: RWD roadster/2-seat coupe on Kappa platform (Next gen replacement for Solstice/Sky/Opel GT).

* Aurora: RWD flagship midsize sedan on SWB Sigma-Zeta platform (rebadge of downsized next gen Holden Commodore/Berlina/Calais and Vauxhall VXR8; 191 inches long/114 inch wheelbase).

Luxury Dealer Network: Buick/Cadillac.

BUICK:

* Moves upmarket with FWD luxury cars and FWD/AWD crossovers with increased content and features that truly target the luxury portion of the market.

* Targets customers who value luxury features combined with the advantages of FWD.

* Marketing/advertising should be mature and sophisticated while focusing on the brand's American luxury heritage and the products' advanced technology/engineering.

* Regal: Compact sedan on SWB Epsilon platform.

* Invicta: Midsize sedan on LWB Epsilon platform.

* Rendezvous: Compact crossover on SWB Theta platform.

* Centieme: Midsize crossover on LWB Theta platform.

* Enclave: Large crossover on Lambda.

CADILLAC:

* Focuses on well executed RWD car products that will restore the division's former "Standard Of The World" status.

* Competently targets BMW and Mercedes Benz.

* Marketing/advertising should focus on the international luxury appeal of the brand and the products' superbly crafted details and advanced engineering.

* I struggle with the alpha model nomenclature that the division employs, so I just provided descriptions and platforms for most of the products.

* Compact sedan/coupe/wagon on Alpha.

* Midsize sedan(CTS)/coupe/wagon on SWB Sigma-Zeta.

* Large flagship sedan on LWB Sigma-Zeta.

* Retractable hardtop roadster on Kappa platform.

* XLR: Flagship retractable hardtop roadster on Corvette C7 platform.

HUMMER:

* Sell it. The traditional truck/SUV segment is rapidly shrinking and Chevrolet is more than capable of handling this segment on its own. This brand has totally outlived its usefulness. I would love to see GM generate some revenue by selling this division to an up and coming foreign company who foolishly thinks that it can make something relevant or desirable out of this jurassic brand.

SAAB:

* Sell it. GM needs the revenue and it doesn't need the distraction. If Buick and Cadillac are given appropriately upscale, luxury products, then this division is not really needed (Besides, GM has suggested that it intends to take Opel upmarket; if this is the case, then GM will have a premium in-house Euro division and Saab will be totally redundant in GM's brand hierarchy). I do think that Saab has enough of its distinct and quirky brand character remaining to appeal to a foreign auto company interested in purchasing the division.

GMC:

* Relegate it to commercial fleet vehicle sales only.

SATURN/PONTIAC:

* Replaced by Opel. Saturn and Pontiac are damaged and have too much market baggage to appeal to customers who would be in the target demographic for Opel's premium, Euro chic products. Opel would give GM a chance to mold and market a division to attract customers who wouldn't normally consider a domestic brand.

Edited August 2, 2008 by cire

[balthazar]

So let me get this straight: right now GMC is available to both private retail buyers and fleet buyers, but to 'fix things', we're going to eliminate retail GMC sales.

[FUTURE_OF_GM]

So let me get this straight: right now GMC is available to both private retail buyers and fleet buyers, but to 'fix things', we're going to eliminate retail GMC sales.

Yes, because the sky is falling and trucks are dead... Remember?!?!?!

[balthazar]

Oh yea, right; I have heard people actually say "No one is buying trucks anymore."

Wonder what the manufactureres are going to DO will the thousands they've already built; just crush them ? Huh.

[Robert Hall]

Oh yea, right; I have heard people actually say "No one is buying trucks anymore."

Wonder what the manufactureres are going to DO will the thousands they've already built; just crush them ? Huh.

Just retitle them as '09s and try and sell next year...

[balthazar]

That'll never work, remember; "no one's buying trucks anymore".

[gm4life]

GMC, Pontiac and Buick should all stay. As for Saturn good-bye I would cut the brand with no history and a small dealer network. I think Hummer is effectively dead already.

[Guest aatbloke]

My own thoughts are to keep the hierarchy simple, as thus:

- maintain Chevrolet as the bread-and-butter brand in North America and as the budget brand in Europe and elsewhere

- drop Saturn, Hummer, Buick and Pontiac

- maintain Vauxhall/Opel as its mainstream European marques and import Opel's sporting variants (VXR/OPC) to North America

- GMC brand to be utilised for trucks and commercial vehicles with no badge engineered equivalents elsewhere; offer brand to more markets than North America and the Middle East

- carve Saab into a junior exec niche to compete with smaller BMWs, Audis and and Alfa Romeos with a C-segment hatch and D-segment sedan, but give them features exclusive to the marque in the segments, such as turbochargers and four-wheel drive as standard

- Cadillac models should be RWD throughout including the BLS, and moulding the marque as an upscale marque competing with the German Q-cars, Lexus and Jaguar

- move Corvette as a separate marque worldwide as it currently is in Europe

Edited August 4, 2008 by aatbloke

[gm4life]

Dropping Buick and Pontiac is a huge mistake. Even dropping GMC would be a huge mistake because the average GMC customer due to image may not ever consider a Chevrolet. Buick is staying and Pontiac is most likely staying. Pontiac has way more sales than Buick. Even with a somewhat outdated line-up Pontiac has alot of sales and with a new small and midsize car could still have alot of spark left in them.

[cire]

My own thoughts are to keep the hierarchy simple, as thus:

- maintain Chevrolet as the bread-and-butter brand in North America and as the budget brand in Europe and elsewhere

- drop Saturn, Hummer, Buick and Pontiac

- maintain Vauxhall/Opel as its mainstream European marques and import Opel's sporting variants (VXR/OPC) to North America

- GMC brand to be utilised for trucks and commercial vehicles with no badge engineered equivalents elsewhere; offer brand to more markets than North America and the Middle East

- carve Saab into a junior exec niche to compete with smaller BMWs, Audis and and Alfa Romeos with a C-segment hatch and D-segment sedan, but give them features exclusive to the marque in the segments, such as turbochargers and four-wheel drive as standard

- Cadillac models should be RWD throughout including the BLS, and moulding the marque as an upscale marque competing with the German Q-cars, Lexus and Jaguar

- move Corvette as a separate marque worldwide as it currently is in Europe

You present some intelligent, well thought out ideas.

I agree with you that Chevrolet should be the global mainstream, affordable, volume brand. I partially agree with you about the Corvette; I think it should be marketed as a separate marque in foreign markets where the car has no historical ties with the Chevrolet brand, but it should remain in Chevrolet's lineup in the U.S. If GM wants to keep GMC around for retail sales, then the division should be bundled with Chevrolet. Chevrolet would focus solely on affordable cars and crossovers, while GMC would focus solely on trucks and SUVs. GMC would be the only division with truck/SUV products in its lineup.

It looks like I agree with you about Saturn and Pontiac. I think both brands should be retired in favor of launching Opel in the U.S. market. I think Saturn and Pontiac have too much market baggage and are too strongly linked to GM to competently draw in new customers with Opel's upscale, Euro derived products. I think GM could position and mold Opel into the brand that will finally attract buyers who have long since given up on domestic vehicles. I do disagree with you about the assembly location and the trim levels. I think they should offer more trim levels than just the sporty OPC trim level in the U.S. and I think the products should be assembled in North America (it's the origin of the brand that's being marketed not the point of assembly; Opel should be marketed to represent German engineering). I am on the fence about Saab. I see advantages in selling it and I see advantages in retaining it. It should be bundled with Opel if GM decides to keep it. This would create a nice import focused dealer network for GM with Opel handling the higher volume end of the network and Saab focusing on the luxury end of the network. I do like your idea of offering AWD and turbocharged engines as standard equipment on every Saab product; this would provide some additional differentation for Saab in GM's brand hierarchy as well as in the marketplace. GM needs to work hard to restore the brand's trademark Swedish quirkiness in the products and in the brand's marketing.

I do disagree with you about Buick. I think it can effectively be bundled with Cadillac to form the luxury dealer network. Buick can focus on FWD luxury cars and FWD/AWD luxury crossovers to complement Cadillac's lineup of well executed, top-tier RWD luxury cars. I think there is still a market for a well built FWD based luxury vehicle with understated, yet elegant styling; Buick is the perfect brand for this type of customer (not to mention that the brand is a smashing success in China). Cadillac would be targeted more towards people who prefer edgier styling and RWD; as you mentioned in your post, this would be the brand that would compete head on with BMW, Mercedes, Jaguar, Lexus, and Infiniti.

I agree with you about Hummer. It should be sold. GMC can effectively and competently handle the SUV/truck segment. If GM wants to develop a Wrangler competitor, then they can just slap a GMC badge on it.

This plan would leave 6 brands arranged in 3 dealer networks:

* Affordable, Mainstream, Volume Dealer Network: Chevrolet/GMC

* Import Focused Dealer Network: Opel/Saab

* Luxury Dealer Network: Buick/Cadillac