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September 17, 2005
Industry Report: Brand Management Costing GM Too Much Money
by Trevor Hofmann , Canadian Auto Press
Does the General Really Need GMC when it already has Chevy Trucks?
What's the best selling full-size pickup truck in North America? Ford's F-150, of course! Well, maybe not. While widely reputed as not only the best selling pickup truck but also the best selling vehicle in both Canada and the U.S., Ford sells fewer F-150s than rival General Motors sells of its half-ton contender.
Say what? Yes, it's true. Ford had built and delivered 534,659 F-150s as of
Would GM sell more if it only offered its 1500 pickup under a single nameplate? (Photo: General Motors Canada)
July 2005, but between Chevy and GMC, which sold 480,134 Silverado 1500 and 158,077 Sierra 1500 models respectively, a grand total of 638,211 units, an additional 103,552 half-ton GM pickup trucks hit the road during the first seven months of the year.
But such "success" begs the question; would GM sell more if it only offered its 1500 pickup under a single nameplate? Heresy! Who would even consider dissolving one of GM's legendary brands, especially after the outcry the automaker experienced when it was announced that Oldsmobile was to be phased out? Well, GM Vice Chairman Bob Lutz mused about the possibilities during a media scrum at the New York International Auto Show in March (see automotive news section for Mar 27, 2005: Industry Report: GM's Bob Lutz Considers Dumping One Brand to Curb Losses).
Some would argue that the reason GM sells more half-ton pickups than
Tremendous costs are associated with developing unique front end styling treatments, exterior and interior trim components, and, lest I forget, two very expensive marketing/advertising programs. (Photo: Trevor Hofmann, Canadian Auto Press)
Ford is for the very reason there are two nameplates retailing them, but really, would GMC buyers actually walk across the street to their Ford dealer, or for that matter a Dodge, Toyota or Nissan dealer to purchase their next truck if Chevy were their only alternative? Not likely.
Believing then, that GM would sell just as many pickup trucks, and if the theory holds water, just as many SUVs and crossovers under the Chevy nameplate if GMC went the way of Oldsmobile (i.e. six feet under), why bother with the tremendous costs associated with developing unique front end styling treatments, two different (if only slightly different) exterior and interior trim components, and, lest I forget, two very expensive marketing/advertising programs?
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