Possible solution for GM's woes

[Oh Haha]

OK, so I am watching TV last night and actually watched the commercials. This idea came to mind:

What if GM were to limit the models offered by each segment?

Pontiac will be the "excitment" group. They would make the performance sedans and GTO's. No SUV's, minivans, or grocery getters.

Chevrolet will make the fleet vehicles, trucks, and midsize vehicles.
GMC would go away.

Saturn would make the SUV's, grocery getters, and eco friendly vehicles.

I'm sure I have missed some segment but I think you get the ideas. IMO, they have too many of the same vehicles, simply rebadged as something else.
I don't think this would save any jobs but it might be a place to start.

Before you all go and flame me, I too have a stake in what happens to GM as my company does the vending in most of the plants in MIchigan, Ohio and Indiana.

As far as Delphi goes, I don't know what would help them.

[gaijindabe]

GMC, Saturn, Caddy and to some degree Chevy have some brand "identity". Pontiac and Buick are quickly going the way of Oldsmobile.

[onewhippedpuppy]

100% agree with you Wayne, what's the point of selling 3 or 4 different models, based on the same platform, that compete with each other? Surely they've now realized that just because they tell us Pontiacs are exciting we won't simply take their word for it. I think this plus making quality products is the key to it's success, as well as somehow cutting costs.

Just look at the improvements that Hyundai has made in the last 10 years. They've gone from a joke of a car that liked to catch fire to a serious competitor to their Japanese rivals, and managed to take a big chunk of the market from American companies.

[onewhippedpuppy]

I'm always confused about what GMC and Saturn were supposed to be. Chevy blue collar, Caddy is luxury/ performance, Pontiac is "excitement", Buick is old people. Saturn was supposed to be the import figher brand, but they ended up as odd cars and SUVs with huge body gaps due to plastic construction with up front pricing. GMC only builds trucks and SUVs, which just so happen to be the exact same models as Chevy but with a GMC badge. I say kill Pontiac, Buick, GMC, and Izuzu, because nobody will miss them.

[BlueSkyJaunte]

Joe Isuzu would be PISSED!

[MichiganMat]

Trimming down is the key:

- Chevy: fleet vehicles + Corvette. The rest can be ****-canned
- Saturn + Pontiac: The new stuff is worth keeping, lets hope they can keep it up. I really like the new Torrent and Sky/Soltice platforms
- Buick: does anyone buy these anymore?
- Saturn: worth keeping. The Sky will sell like hotcakes.

[onewhippedpuppy]

Buick: old people. Only problem is, in 10 years all their customers will be dead, and Tiger isn't helping to boost their image. Somehow I don't see aging babyboomers turning in their BMWs for Buicks.

[Dixie]

What if GM were to limit the models offered by each segment?

They've been saying this is their strategy for the last twenty years. The real question is, why have they not been able to do it?

[Neilk]

Another problem is that it will be very difficult implementing any of those changes with their current dealer network and agreements.

I don't think many dealers would be pleased at the prospect of selling a narrower range of cars even if makes GM stronger 5-10 years down the line.

[Rick V]

Gm killed itself with the employee pricing sale. Anybody who was on the fence bought, people who wern't seriously concidering a new car opened thier eyes and bought. Now the roads are flooded with new GM products. Ford and Dodge followed the trend and also added alot of cars to the traffic. Most people in the middle class (me included) don't buy a new car every 4-5 years. and with the creative financing offered 6+ years these people are now locked into a vehicle that won't be worth what they owe in 3years. When these cars start blowing trans. in about 80k miles you have instant rock and hard place for alot of these folks.
JMO but I see the begining of the end for Detriot as the major suplier of vehicles for the US.

[911pcars]

Split the divisions into their own subsidiary, but not like they are now. Each should have their own design, engineering and manufacturing facilities, dealer networks too. Divvy up what's there now and let them compete. If employees see what's in their future, potential good or bad, they'll be up to the challenge. Huge companies like GM are weighed down by their own mass. Toyota is providing an inkling of that mass right now.

Splitting up will naturally reduce the number of superflous models. Competition is always good for the marketplace.

Who wants to buy a car that looks like some other make? I always wondered why people bought Buicks, Olds, Chevy and Cads that were essentially the same except for trimwork and engine? It couldn't have been the design because they all looked awful.

The bottom of the classic car market would drop out if the term "Nostalgia" leaves everyone's sensibilities. Why else would someone buy an old Edsel or even an old Vette for big $$? I look at the shiny refabbed cars at Barrett-Jackson and shake my head. Then I see that wry grin from Mr. BJ himself. He's along for the ride and loving it.

Sherwood

[azasadny]

GM is paying 60-70 Billion dollars a year for health care for retirees, active emloyees and their families. How are they going to make it?

[Oh Haha]

Hey Art, don't you work for Ford?
Are you UAW? I just heard on the 6pm news that Ford and the UAW reached a tentative agreement on healthcare costs.

Michigan Mat---Your breakdown looks more presentable than mine but I think we all agree on the basic idea.
Do you think GM has already looked at such a "simple" solution?