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	<title>Comments on: GM May Consider Dropping Some Brands &#8211; NOT Chevrolet</title>
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	<description>Real-time news, information, and discussion about the Chevrolet Volt.</description>
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		<title>By: Alex</title>
		<link>http://gm-volt.com/2008/07/07/gm-may-consider-dropping-some-brands-not-chevrolet/#comment-99688</link>
		<dc:creator>Alex</dc:creator>
		<pubDate>Wed, 11 Mar 2009 01:14:48 +0000</pubDate>
		<guid isPermaLink="false">http://gm-volt.com/?p=1148#comment-99688</guid>
		<description>Oddly enough confirmed by the picture above, GM should be cutting brands. the first brands that should be completely shuttered and not sold are Hummer and SAAB, hopefully they are closed by 2011. Saturn then should follow in 2012 with a complete closure.

The reason why Buick-Pontiac-GMC should stay is because they act as one brand, under one dealership roof, with shared manufacturing and could actually be successful going forward. in the yr. 2000 each had substaintially higher market shares but have deviated from their core branding and message.

It will not cost GM a lot of money to close Hummer/SAAB/Saturn because their dealership footprint is extremely small. combined they have under 1,000 dealerships which minimizes lawsuits and allows dealers to be successfully bought out by the company. when Oldsmobile was shuttered in 2000 the brand has 2,800 dealers which made it significantly harder and more expensive to close.

Using that logic it should only cost GM $700 million dollars to completely unwind those three brands, which is a mire pittance when compared to the $ 30 billion dollar infusion it is about to recieve from the U.S. government to sustain their operations.

To sell Saab/Hummer/Saturn would be a big mistake, it would strengthen their competitors and not help to alleviate the over-branded U.S. market. competitiors will shift production and produce lower cost vehicles and use U.S. dealerships for their entry to the U.S market, this will overall be a major negative to GM in the long term.

It is costing GM more to keep those three brands than it would cost to buy out dealers and shutter those non-essential brands that combined only account for 1.8% of the U.S. market as of 2008, while the Nissan brand alone accounts for 6 times more market share, the writting seems to be on the wall for this one.

Buick right now seems in trouble, as well as pontiac but both brands can be saved by being relegated to importing successful international automobiles. Buick becomes an importer for some high end Opel cars to the U.S., while Pontiac could import most of the Holden Austrailia line under their Pontiac banner to the U.S. this would allow the entire Pontiac/Buick/GMC line to exist with little to no investment or upkeep from GM, which would allow GM to be able to focus on turning around/creating new products for both Cadillac and Chevrolet.

Internationall there are opportunities for consolidation as well. GM should absolutely retain Opel as they are integral to the company and will provide products and logistics for other divisions, my main recomendation would be to eliminate Vauxhall and rebrand it as opel, having that one brand for just Britain is a drain on the company and is an unneccesary cost that can be avoided. this will be a benefit to strengthen the Opel brand as well as cutting costs.

The same logic is used for allowing Holden Austrailia to take over the Daewoo division rebranding the entire division as Holden Worldwide, significantly slimming down their overlap and investment costs and capitalizing on the Holden name and logo.

these steps will get GM on the right track to completely reinvigorate their business and return to their core values while removing brands that severely drain cash from the company as well as massive overlap. by taking the above mentioned steps they will be better positioned to grow their market share in the U.S. and internationally and will be better able to understand and respond to market shifts and changes in consumer tastes. GOOD LUCK GM!!!</description>
		<content:encoded><![CDATA[<p>Oddly enough confirmed by the picture above, GM should be cutting brands. the first brands that should be completely shuttered and not sold are Hummer and SAAB, hopefully they are closed by 2011. Saturn then should follow in 2012 with a complete closure.</p>
<p>The reason why Buick-Pontiac-GMC should stay is because they act as one brand, under one dealership roof, with shared manufacturing and could actually be successful going forward. in the yr. 2000 each had substaintially higher market shares but have deviated from their core branding and message.</p>
<p>It will not cost GM a lot of money to close Hummer/SAAB/Saturn because their dealership footprint is extremely small. combined they have under 1,000 dealerships which minimizes lawsuits and allows dealers to be successfully bought out by the company. when Oldsmobile was shuttered in 2000 the brand has 2,800 dealers which made it significantly harder and more expensive to close.</p>
<p>Using that logic it should only cost GM $700 million dollars to completely unwind those three brands, which is a mire pittance when compared to the $ 30 billion dollar infusion it is about to recieve from the U.S. government to sustain their operations.</p>
<p>To sell Saab/Hummer/Saturn would be a big mistake, it would strengthen their competitors and not help to alleviate the over-branded U.S. market. competitiors will shift production and produce lower cost vehicles and use U.S. dealerships for their entry to the U.S market, this will overall be a major negative to GM in the long term.</p>
<p>It is costing GM more to keep those three brands than it would cost to buy out dealers and shutter those non-essential brands that combined only account for 1.8% of the U.S. market as of 2008, while the Nissan brand alone accounts for 6 times more market share, the writting seems to be on the wall for this one.</p>
<p>Buick right now seems in trouble, as well as pontiac but both brands can be saved by being relegated to importing successful international automobiles. Buick becomes an importer for some high end Opel cars to the U.S., while Pontiac could import most of the Holden Austrailia line under their Pontiac banner to the U.S. this would allow the entire Pontiac/Buick/GMC line to exist with little to no investment or upkeep from GM, which would allow GM to be able to focus on turning around/creating new products for both Cadillac and Chevrolet.</p>
<p>Internationall there are opportunities for consolidation as well. GM should absolutely retain Opel as they are integral to the company and will provide products and logistics for other divisions, my main recomendation would be to eliminate Vauxhall and rebrand it as opel, having that one brand for just Britain is a drain on the company and is an unneccesary cost that can be avoided. this will be a benefit to strengthen the Opel brand as well as cutting costs.</p>
<p>The same logic is used for allowing Holden Austrailia to take over the Daewoo division rebranding the entire division as Holden Worldwide, significantly slimming down their overlap and investment costs and capitalizing on the Holden name and logo.</p>
<p>these steps will get GM on the right track to completely reinvigorate their business and return to their core values while removing brands that severely drain cash from the company as well as massive overlap. by taking the above mentioned steps they will be better positioned to grow their market share in the U.S. and internationally and will be better able to understand and respond to market shifts and changes in consumer tastes. GOOD LUCK GM!!!</p>
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		<title>By: wlssurgery</title>
		<link>http://gm-volt.com/2008/07/07/gm-may-consider-dropping-some-brands-not-chevrolet/#comment-99293</link>
		<dc:creator>wlssurgery</dc:creator>
		<pubDate>Mon, 09 Mar 2009 00:54:21 +0000</pubDate>
		<guid isPermaLink="false">http://gm-volt.com/?p=1148#comment-99293</guid>
		<description>Thank you for your help!</description>
		<content:encoded><![CDATA[<p>Thank you for your help!</p>
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		<title>By: Jason The Saj</title>
		<link>http://gm-volt.com/2008/07/07/gm-may-consider-dropping-some-brands-not-chevrolet/#comment-51566</link>
		<dc:creator>Jason The Saj</dc:creator>
		<pubDate>Wed, 09 Jul 2008 16:31:30 +0000</pubDate>
		<guid isPermaLink="false">http://gm-volt.com/?p=1148#comment-51566</guid>
		<description>What GM should do, or really should have done already!


Chevy = base model, general vehicles.

Buick = semi-luxury/business class vehicles


Pontiac &amp; Cadillac become styling packages (which is really what they already are). In reality, that what&#039;s these really are. Similar to Lexus and Acura for Toyota and Honda. 

Chevy Pontiac will be a sporty vehicle, with sports options.  A handful of models will  only be available as Chevy Pontiac (ie: the Solstice).

Cadillac becomes a premium styling and packaging.  Mostly applied to Buick models. But also a few Chevy models (ie: Tahoe).  A few models might be available as Cadillac only.

All dealers to be GMC (General Motors).  However, some to be &quot;GMC Premium Dealers&quot; which will offer Pontiac and Cadillac option lines.  

The advantage would be a reduction in the brand management.  And a consolidation of dealership types, but not necessarily dealerships.

***

I also think they should sell off Saab but retain Hummer.  Yes, sounds crazy. But there is still a lot that can be done with Hummer.  Hummer should be the off-road branch of GM.  I think a &quot;pick-up&quot; truck might be a good line.   It&#039;d be nice to see the H3 line either dropped or made a hybrid similar to the Tahoe hybrid.  In fact, it might be interesting to make ALL Hummers hybrid.  They&#039;re a premium line, if you&#039;re going to buy a high end hummer, might as well drop $8,000 more to make it a hybrid.  

I also think Hummer should make a variant similar to the mini-Cooper. Except off-road.  Same styling, off road ruggedness, etc. But in a small compact three seater. (Two front, one middle-rear.)

***

Saturn is the tougher decision. Saturn was once a gem, what happened to it?  Saturn got itself confused. Saturn should be the &quot;College&quot; line.  Get rid of the Solstice, mini-vans, etc.  Focues BACK onto the college market.  Affordable, simple, smaller, etc.


-------------

This leaves GMC with four distinct brands:

Chevy (General vehicles, Trucks, vans, mini-vans, sedans, SUVs, Pontiacs, etc)
Buick  (Full size sedans, crossover SUVs, Cadillacs)
Saturn (Cobalt, Aveo, Korean sub-compacts, &amp; minis)
Hummer 

With Pontiac &amp; Cadillac being styles or designs of Chevy &amp; Buick that are either sporty or luxurious.</description>
		<content:encoded><![CDATA[<p>What GM should do, or really should have done already!</p>
<p>Chevy = base model, general vehicles.</p>
<p>Buick = semi-luxury/business class vehicles</p>
<p>Pontiac &amp; Cadillac become styling packages (which is really what they already are). In reality, that what&#8217;s these really are. Similar to Lexus and Acura for Toyota and Honda. </p>
<p>Chevy Pontiac will be a sporty vehicle, with sports options.  A handful of models will  only be available as Chevy Pontiac (ie: the Solstice).</p>
<p>Cadillac becomes a premium styling and packaging.  Mostly applied to Buick models. But also a few Chevy models (ie: Tahoe).  A few models might be available as Cadillac only.</p>
<p>All dealers to be GMC (General Motors).  However, some to be &#8220;GMC Premium Dealers&#8221; which will offer Pontiac and Cadillac option lines.  </p>
<p>The advantage would be a reduction in the brand management.  And a consolidation of dealership types, but not necessarily dealerships.</p>
<p>***</p>
<p>I also think they should sell off Saab but retain Hummer.  Yes, sounds crazy. But there is still a lot that can be done with Hummer.  Hummer should be the off-road branch of GM.  I think a &#8220;pick-up&#8221; truck might be a good line.   It&#8217;d be nice to see the H3 line either dropped or made a hybrid similar to the Tahoe hybrid.  In fact, it might be interesting to make ALL Hummers hybrid.  They&#8217;re a premium line, if you&#8217;re going to buy a high end hummer, might as well drop $8,000 more to make it a hybrid.  </p>
<p>I also think Hummer should make a variant similar to the mini-Cooper. Except off-road.  Same styling, off road ruggedness, etc. But in a small compact three seater. (Two front, one middle-rear.)</p>
<p>***</p>
<p>Saturn is the tougher decision. Saturn was once a gem, what happened to it?  Saturn got itself confused. Saturn should be the &#8220;College&#8221; line.  Get rid of the Solstice, mini-vans, etc.  Focues BACK onto the college market.  Affordable, simple, smaller, etc.</p>
<p>&#8212;&#8212;&#8212;&#8212;-</p>
<p>This leaves GMC with four distinct brands:</p>
<p>Chevy (General vehicles, Trucks, vans, mini-vans, sedans, SUVs, Pontiacs, etc)<br />
Buick  (Full size sedans, crossover SUVs, Cadillacs)<br />
Saturn (Cobalt, Aveo, Korean sub-compacts, &amp; minis)<br />
Hummer </p>
<p>With Pontiac &amp; Cadillac being styles or designs of Chevy &amp; Buick that are either sporty or luxurious.</p>
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		<title>By: noel park</title>
		<link>http://gm-volt.com/2008/07/07/gm-may-consider-dropping-some-brands-not-chevrolet/#comment-51271</link>
		<dc:creator>noel park</dc:creator>
		<pubDate>Tue, 08 Jul 2008 15:24:19 +0000</pubDate>
		<guid isPermaLink="false">http://gm-volt.com/?p=1148#comment-51271</guid>
		<description>#70 brad:

Amen.  Well said.</description>
		<content:encoded><![CDATA[<p>#70 brad:</p>
<p>Amen.  Well said.</p>
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		<title>By: MDDave</title>
		<link>http://gm-volt.com/2008/07/07/gm-may-consider-dropping-some-brands-not-chevrolet/#comment-51228</link>
		<dc:creator>MDDave</dc:creator>
		<pubDate>Tue, 08 Jul 2008 11:41:15 +0000</pubDate>
		<guid isPermaLink="false">http://gm-volt.com/?p=1148#comment-51228</guid>
		<description>Most people seem to be picking brands to drop based on current market share (Saab), becaues they are a duplication of some other larger brand (GMC, Pontiac), or because they don&#039;t like the brand for aesthetic and environmental reasons (Hummer). The brand&#039;s prosepect for long term profitability is what you should be considering.</description>
		<content:encoded><![CDATA[<p>Most people seem to be picking brands to drop based on current market share (Saab), becaues they are a duplication of some other larger brand (GMC, Pontiac), or because they don&#8217;t like the brand for aesthetic and environmental reasons (Hummer). The brand&#8217;s prosepect for long term profitability is what you should be considering.</p>
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