General Motors Considers Dumping Pontiac and GMC to Avoid Bankruptcy

http://www.bloomberg.com/apps/news?pid=20601087&sid=aH6K5WdHvDcQ&refer=home

Comments

oollyoumn

From the start of this downsizing I could not understand GM insistence on keeping Pontiac and GMC. Pontiac is already dead and GM has all but conceded the fact previously. It looks like they are ready to concede.

GMC was supported because it "made money". I seriously doubt any GM brand makes money, but even if it did, GMC buyers will almost all go to Chevrolet. With no drop in sales but one less brand to support, wouldn't that allow more money to be made. Besides every GMC vehicle is a rebranded product. There is no need to keep it.

Trinks

My question is, does the task force want the brands dissolved, the products eliminated, or both? I don't think anyone disagrees that GM is overloaded with brands, but the (good) products that Pontiac has been rolling out could easily be folded into Chevrolet, even Buick. A Chevy Solstice or Buick G8 would do wonders to boost the image (and hopefully sales) of these otherwise stale brands. Unfortunately, quality vehicles are often the first to go whenever the bean-counters start meddling in the affairs of a business.

JohnD

Sounds like a good idea.

Ducati Minor

From what I've gathered, the Holden-based G8 will be the groundwork for a possible new Impala.  That'd likely be a better-seller (though whether it'd be a hit is another matter).  I agree about the GMC logic: it's a money-maker, but it consumes resources for what are only restyled Chevrolet trucks.  The GMC division is part of a fading segment.  Pontiac has no segment.  I'd go as far as to say Buick should vanish from North America, but the marque has commercial potential.

Jeff

If you go to Chevy's international site and then go to UAE (United Arab Emerates) and/or South Africa you will see the G8 as a Chevy. It is called the Lumina in those markets. Also, South Africa has the Lumina UTE ( Can you say ElCamino?) Also the UAE gets the Holden Caprice badged as a Chevy. Real nice. I recommend that everyone who is into cars browse some of the international sites of our home brands. You will find some silly stuff. Like the only Chevy for sale in Japan is the Trailblazer??? The old *ss S10 is still made and sold in Brazil, with a really bad body line stamping and different nose. There is an Opel mini-truck sold in South America as well. It is called the Montana except in Mexico where it is called the Tornado. Neat little economy car. There is so much out there beyond our shores. Part of it frustrates me since I know GM makes world class products, they just do a real bad job of branding and marketing them here.

 "Just because you read the manual doesn't mean you can drive the car."

 

TheStig

Buick should be thrown in the dumpster as well. Let's just make it really simple for them.

OPF

How about Washington dumps GM? Period. Or put the company behind the bankruptcy laws and make a severe reboot of the whole company. A SHOCK treatment is what is needed. GM is going nowhere and this issue needs to be adressed. I bet you GM never thought that Toyota, Nissan and Honda could have hit them so hard... or they never wanted to admit it. And dump Chrysler unless the alliance with Fiat is concluded.

Mindstorm9

I can see many people agree that GM needs to downsize and reduce the number of brands it carries. I agree that certain brands need to follow Oldsmobile and just go away. Most vehicles GM produces are rebadged vehicles anyways.

If GM was to keep GMC, then they should focus that brand towards large commercial trucks. Leave the light duty trucks to Chevy. Get rid of Saab. Do people buy really them? Pontiac lost its "excitement" a long time ago. It is foolish to keep a brand like Pontiac around since all of the vehicles can be badged as a Chevy, Saturn, or dare I say Buick. Speaking of Buick, this brand only sells well in China. Either make it an overseas brand like Opel and Vauxhall or make Chevy and/or Cadillac vehicles to replace it.

Is Saturn competitive enough to keep around? I'm not sure. I haven't seen as many newer Saturns on the road lately. In fact, I have seen more newer Pontiacs than Saturns. Either way, GM needs to decide which of these two brands are more marketable. If neither, then dispose of them and focus on Chevy as the brand that builds your everyday "appliance" vehicles with some performance or specialty vehicles thrown in for the enthusiast.

It will be interesting to see which direction GM will take in its makeover to be a viable, competitive manufacturer in the future. But one improvement I think everyone agrees with, but hasn't mention, that would help get GM back on track is GM leadership needs to be replaced. Let's get rid of the "old school" corporates that lack vision and imagination. Add this to the brand downsizing and GM may yet survive.

Viggen Driver

I completely agree that GM could and should reduce the number of brands in North America, probably to just two - Chevrolet and Cadillac.


As others have pointed out, the GMC products are simply re-badged Chevys -- so drop the pretense and drop the GMC brand.


Any gap in market coverage left by dropping the Buick brand can easily be filled by filling out the Chevy brand with some well-appointed high-spec models at the top of the range, and filling out the Caddy line with a smaller-than-CTS model (similar in size to, but much better executed than, the Caddy BLS sold in Europe).


Saturn should be dropped...too much baggage from the past, and today it was heading in the direction of simply re-branding the Opel models from Europe. That's not such a bad idea -- selling Opels in NA -- but they too could come under the Chevy brand, with a Chevy Astra and a Chevy Insignia (in place of a revamped Malibu and Pontiac G6).


Saab was never really understood or supported by the GM suits...evidence the fact that they'd rather pour a small fortune into trying to establish the Cadillac brand in Europe from scratch than seriously promote and support the premium European brand they already had and that already had global recognition. And yes, even after the millions spent trying to foist Cadillacs on the Europeans you can probably count the annual sales on the fingers of one hand. Saab is currently trying to disentangle itself from GM right now through a Swedish court-supervised reorganization process, and has a number of serious investors interested. I hope they succeed.


If it can escape GM collapsing around it then Saab could have a bright future...focusing production of all 9-3 variants (including the convertible and upcoming 9-3X) and the new 9-5 at its efficient Trollhattan plant, and subcontracting the 9-4X cross-over to GM Mexico to be built alongside the new Cadillac SRX. The 3 new models due in the next 18 months (9-3X, 9-5, and 9-4X), along with the removal of the "GM health-and-pension tax" from its overheads should all help it survive the current downturn and then turn a profit when the economy recovers even from a relatively small total production of 150,000 to 180,000 vehicles per year.


GM has a vested interest in seeing an independent Saab thrive because that will mean that GM can license/manufacture more architectures for Saab -- the new 9-5 is based on Epsilon II, the 9-4X shares the TE platform with the 2010 Cadillac SRX, and a compact replacement for the current 9-3 could likely come from the Delta II platform to help Saab get a new model to market much faster than if they had to develop the platform themselves from scratch. It means GM can manufacture more 9-4X for Saab. And it means that GM can continue to use Saab's expertise in turbo-charging, safety, all-wheel drive in family cars (XWD), etc. The relationships between GM and Saab will continue for some time and GM has a lot to gain over the years from a successful Saab.

Jeff

There already are Chevy Astra's and Insignia's in South America. So, makes sense to me!

"Just because you read the manual doesn't mean you can drive the car."

mo

I think the problem with saab is not GM, I think the problem is with saab itself. the problem is not mechanical either, on the contrary, I believe saab has become an icon when talking about engine, gear, suspension .... etc. But take a look at a 9-3 from different generation and tell me whether you find a dramatical difference in design. the answer is an easy no. As humans, we usually get bored fast and like to see changes all the time. Yes, the design has gotten more modern, but still, it is not a huge difference. putting into account that Saab doesn't have the same reputation that porsche has, the design formula is not working with saab.

It is unfortunate when we see these beautiful concepts from saab only in auto shows. Then saab sticks to the old plane design that has been used for almost 30 years (ever since the 900 started production). IMO, that is Saabs problem.

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