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NINETY EIGHT REGENCY

G.M. Chairman Vows to Defend Market Share

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G.M. Chairman Vows to Defend Market Share

The new board of General Motors turned their attention on Tuesday to the cars and trucks they hope can quickly restore G.M. to profitability, Bill Vlasic wrote in The New York Times.

G.M.’s new chairman, Edward E. Whitacre Jr., the former AT&T chief executive, vowed that the carmaker would not give up more market share even as it continued to streamline operations after a 40-day trip through bankruptcy court.

“This company should not be shrinking,” Mr. Whitacre said in an interview. “It should be growing.”

Mr. Whitacre led his first meeting of the G.M. board on Monday and Tuesday. More than half of the 13 directors are new to the company, several of them hand-selected by the government to oversee its long-awaited turnaround.

The Obama administration has committed about $50 billion this year to rescuing G.M., and the government holds a 60 percent stake in the company.

Mr. Whitacre, a 67-year-old Texan, repeated previous comments that the government would take a hands-off approach as a majority owner of G.M. But he left no doubt that he would be driving the auto company’s management team hard to reverse G.M.’s decades-long slide.

more at link:

http://dealbook.blogs.nytimes.com/2009/08/...d-market-share/

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I'd like to see how GM is going to keep it's marketshare after closing their 2nd best selling brand after Chevy. They are also selling Saturn which at times outsold Buick. The market is still moving away from trucks, which is GM's strong point in sales. GM would be lucky to keep 20% of the market.

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I'd like to see how GM is going to keep it's marketshare after closing their 2nd best selling brand after Chevy. They are also selling Saturn which at times outsold Buick. The market is still moving away from trucks, which is GM's strong point in sales. GM would be lucky to keep 20% of the market.

Exactly..they are going to have to find a way to be profitable with 10-15% market share.

Rob

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I'd like to see how GM is going to keep it's marketshare after closing their 2nd best selling brand after Chevy.

+1

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I hate to break it to most of you who love pontiac (i am included i own one) but most people that own pontiacs don't really care, they will either go buy a chevy or a toyota or a honda next time. Or maybe a buick.

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I hate to break it to most of you who love pontiac (i am included i own one) but most people that own pontiacs don't really care, they will either go buy a chevy or a toyota or a honda next time. Or maybe a buick.

I'm betting they probably won't buy a Chevy, and definately not a Buick. They will go to Honda, Nissan, Ford or Mazda. I've talked to many people who owned Pontiacs, and have joined various Pontiac sites, since I owned 5 Pontiacs. I've talked to people who hate GM, but love Pontiac, rational or not, it's the reality.

Edited by CaddyXLR-V
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I'm betting they probably won't buy a Chevy, and definately not a Buick. They will go to Honda, Nissan, Ford or Mazda. I've talked to many people who owned Pontiacs, and have joined various Pontiac sites, since I owned 5 Pontiacs. I've talked to people who hate GM, but love Pontiac, rational or not, it's the reality.

And for every one of those "fanboys" there are 100 people that bought the pontiac over the chevrolet, cause they either 1) got a better deal or 2) had the color or the options they were looking for.

I fall into both of those categories on my grand prix purchase. I was looking at that and the Impala. I got a better deal on the GP and the options and color i wanted.

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And for every one of those "fanboys" there are 100 people that bought the pontiac over the chevrolet, cause they either 1) got a better deal or 2) had the color or the options they were looking for.

I fall into both of those categories on my grand prix purchase. I was looking at that and the Impala. I got a better deal on the GP and the options and color i wanted.

I found it to be the opposite. The only reason I ever bought a Chevy was because I couldn't afford a Pontiac. I could always find better deals on Chevys. The Grand Prix only changed that towards the end of it's life, because it hasn't been updated since 2003, and even then it was a poor update. So everyone who doesn't agree with you is a "fanboy"? I see a lot of GM fanboys on this site. Pontiacs, even during the brands dark days, still had better driving characteristics than Chevys. You mean no one bought them for that reason? My brothers Impala was closer in feel to Buick than it was to Pontiac. Light steering, sloppy brakes, nose diving during braking, all characteristics no Pontiac I owned has ever had, including my 97 Grand Am 4cyl. That doesn't influence decisions?

It's also the reason my next car will not be a GM. Buick can not take it's place without alienating it's current buyers, and Chevy can not take it's place while trying to cover a wider market.

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And for every one of those "fanboys" there are 100 people that bought the pontiac over the chevrolet, cause they either 1) got a better deal or 2) had the color or the options they were looking for.

This. Right here.

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Disagreement does not equal fanboy. It's just that in order to even post on a car message board, you have to be like 100 times more interested in cars then the average consumer.

I am a fanboy too.

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Also, I drove the 2000 Impala, Pontiac, Oldsmobile, and Buick when I was looking to buy. I will say the pontiac has a stiffer ride and feels lower to the ground and the steering is a bit heavier then the Chevrolet. But the Chevy and the Buick were not alike. Maybe that was because I drove the LS and that was more "sporty" at the time. But I drove a Regal GS.

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Oh and the only reason why Pontiac was #2 was because of FLEET. I think they fleeted almost all Grand Prix after 2005 and a large number of G6s and Torrents and even the Vibe.

Here is proof from automotive news in 2007

GM’s Pontiac division trailed Chrysler at a close 44.9 percent. The good news, however, is this figure is actually slightly lower than the previous year’s 46.2 percent.

So in 2006 46% of pontiacs were fleeted.

In 2007 it was 44.9% of pontiacs.

I can almost guarantee you that GM can sell ANYTHING they want to fleets to replace those sales of GM's number 2 car brand.

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Oh and the only reason why Pontiac was #2 was because of FLEET. I think they fleeted almost all Grand Prix after 2005 and a large number of G6s and Torrents and even the Vibe.

Here is proof from automotive news in 2007

So in 2006 46% of pontiacs were fleeted.

In 2007 it was 44.9% of pontiacs.

I can almost guarantee you that GM can sell ANYTHING they want to fleets to replace those sales of GM's number 2 car brand.

Chevy is fleeted just as much. They wouldn't even cancel the Malibu because of it's fleet sales, remember the Chevy Classic? The Impala was always fleeted near 50%. That was a problem for GM as a whole, not just Pontiac. Still, even if you take out fleet, Pontiac is still GM's 3rd best selling brand behind GMC. Oh, and Pontiac had one of GM's lowest avg. buyer age. Those younger buyers will probably buy more vehicles in the future than a 70 yr old Impala or Buick buyer will.

And still, people aren't loyal to GM, like "fanboys" might be. If there's no Pontiac, they may have no problem buying a Honda or Mazda, unlike "fanboys". It's only the GM fanboys who think GM will retain those sales. I have no more loyalty to GM, and I feel like I can see things clearly now. GM hasn't changed. Vehicles are still being rebadged for Buick, while executives are saying they don't like rebadges when talking about the G8. Look at the sales for last month. Without Pontiacs sales, GM would have been #2 in the US, behind Toyota. But Buick is the savior with it's 6000 sales, and probably 40% to fleets, and an avg retail buyer age of 60+?

Edited by CaddyXLR-V
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More from Automotive News:

If you deduct fleet sales, Chrysler (division) sold just 147K vehicles over the last six months– which ain’t great but sure beats Pontiac’s 96K retail units. Subtracting fleet action, Chevy’s sales drop to 742K.

Detroit “gets it” but can’t quite “kick it.” For example, the Pontiac G6 (GM’s fourth best selling car) is now flooding the fleet market. According to Jim Hall, AutoPacific’s VP for industry analysis, GM is trying to replace the Chevrolet Malibu’s fleet sales with the G6. The goal: resuscitate the Malibu’s residual values ahead of the refreshed model’s launch. “You don’t want a brand new model to lost money on resale.

Pontiac sold to consumers about 13% of the cars that Chevrolet did in 2007.

The info about the G6 taking the hit for the Malibu is also pretty telling on what GM though of Pontiac towards the end.

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GM knows that Chevrolet has to pick up the slack and sell the cars that they are losing from Pontiac.

I would much rather have the option between a Buick or a Chevrolet then a Chevrolet and a Pontiac when both were basically the same.

Also, this whole Fritz rebadge thing is being blown out of whack. The reason why the G8 is not going to become a Chevrolet is politics, contracts, and costs.

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More from Automotive News:

Pontiac sold to consumers about 13% of the cars that Chevrolet did in 2007.

The info about the G6 taking the hit for the Malibu is also pretty telling on what GM though of Pontiac towards the end.

The same GM that thought pouring money into Saturn would increase marketshare at the expense of Pontiac, yet did nothing, now Saturn gets sold. Now Buick will get all the money, and I'm betting it will have the same result pouring money into Saturn did. So GM doesn't give Pontiac an updated car for the past 5 years outside of imported cars, and somehow the brand is now damaged, gee I wonder why. Just because GM does something, doesn't mean it was the right decision. Based on GM's track record, anything they do is the wrong decision.

They probably would be better off figuring out what they should do, then doing the exact opposite.

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The same GM that thought pouring money into Saturn would increase marketshare at the expense of Pontiac, yet did nothing, now Saturn gets sold. Now Buick will get all the money, and I'm betting it will have the same result pouring money into Saturn did. So GM doesn't give Pontiac an updated car for the past 5 years outside of imported cars, and somehow the brand is now damaged, gee I wonder why. Just because GM does something, doesn't mean it was the right decision. Based on GM's track record, anything they do is the wrong decision.

They probably would be better off figuring out what they should do, then doing the exact opposite.

GM is trying to get conquest buyers with Buick and Saturn. Pontiac was not getting the conquest buyers. An average car buyer may walk onto the lot CONVINCED they are going to get a cobalt and end up with a equinox. Or they know you want that tahoe and you end up only being able to afford a mailbu. People make compromises and switches like that all the time. So if you keep Chevy around the chances that you are going to get a buyer to find something they like is more likely than with Pontiac.

In theory, since Pontiac's cars were the same as Chevrolet, why were there sales not more equal? I don't have the numbers in front of me but if you take the GP, G6, Torrent and compare them to the Malibu, Impala, and Equinox, the chevy consumer sales will far outnumber it. Why? the product is the same and the price really isn't that much different.

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In theory, since Pontiac's cars were the same as Chevrolet, why were there sales not more equal? I don't have the numbers in front of me but if you take the GP, G6, Torrent and compare them to the Malibu, Impala, and Equinox, the chevy consumer sales will far outnumber it. Why? the product is the same and the price really isn't that much different.

Way more Chevy dealers than the BPG ones.

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Way more Chevy dealers than the BPG ones.

Ok, so once again, if you are bankrupt, why save a brand that sells the same cars with less dealers?

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GM is trying to get conquest buyers with Buick and Saturn. Pontiac was not getting the conquest buyers. An average car buyer may walk onto the lot CONVINCED they are going to get a cobalt and end up with a equinox. Or they know you want that tahoe and you end up only being able to afford a mailbu. People make compromises and switches like that all the time. So if you keep Chevy around the chances that you are going to get a buyer to find something they like is more likely than with Pontiac.

In theory, since Pontiac's cars were the same as Chevrolet, why were there sales not more equal? I don't have the numbers in front of me but if you take the GP, G6, Torrent and compare them to the Malibu, Impala, and Equinox, the chevy consumer sales will far outnumber it. Why? the product is the same and the price really isn't that much different.

We will never know what Pontiac could have been if it were ever given the attention and money some of GM's other brands have gotten over the years. Despite other brands getting all the money and attention, Pontiac still managed to stay #2 or #3 in sales.

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Ok, so once again, if you are bankrupt, why save a brand that sells the same cars with less dealers?

Because they still sold 2nd best of all your brands, with almost no investment in the past 5 years? Unless the Malibu starts selling 35k a month, and the Impala 35k a month, those sales and money coming in won't be made up. There was still value in the brand.

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And most Pontiacs sold at a loss, so then they are back to the rental car image. When will some wake up and realize dumping cars into rental fleets is one of the many reasons GM went bankrupt?

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And most Pontiacs sold at a loss, so then they are back to the rental car image. When will some wake up and realize dumping cars into rental fleets is one of the many reasons GM went bankrupt?

I forgot, you have information not made available to the public, and that you know everything and I know nothing. I am now awake.

Edited by CaddyXLR-V
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This is the same discussion we had when GM closed Old's their #2 in sales at that time IIRC 325k.At that time I said Chevy should pick up most Old's sales with Buick picking up the top priced cars. My thoughts on this were spot on though Buick hasn't gained if my memory serves me well. It may be herracey(sp) on this board but Old's was more than capable to take over fore Buick they should have dumped Saturn at that time & added a smaller car at Old's.

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This is the same discussion we had when GM closed Old's their #2 in sales at that time IIRC 325k.At that time I said Chevy should pick up most Old's sales with Buick picking up the top priced cars. My thoughts on this were spot on though Buick hasn't gained if my memory serves me well. It may be herracey(sp) on this board but Old's was more than capable to take over fore Buick they should have dumped Saturn at that time & added a smaller car at Old's.

GM can visit the Pontiac portion of their market share at the Ford dealership. It ain't coming back... just like the Olds people who now have Toyotas and Lexuses.

GM Chairman, we are waiting for your next boneheaded move.

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