GM in "intense" preparations for bankruptcy

[XS650]

There are many ways to reduce GM brands, all of them better than what GM has done so far.

There is no reason to have more than two car brands, Chevrolet and Cadillac could cover the entire spectrum.

Few other car companies have more than two brand names.

GMC could become the only GM truck brand, or die and let all GM trucks be Chevys. I think there is -some- merit to saving the GMC name.


Mercury has no real reason to exist either. They are basically just tarted up Fords.

 

[3Toyotas]

Originally Posted By: XS650
There are many ways to reduce GM brands, all of them better than what GM has done so far.

There is no reason to have more than two car brands, Chevrolet and Cadillac could cover the entire spectrum.

Few other car companies have more than two brand names.

GMC could become the only GM truck brand, or die and let all GM trucks be Chevys. I think there is -some- merit to saving the GMC name.


Mercury has no real reason to exist either. They are basically just tarted up Fords.



I agree.

I think GM could definately become better if they focused on 2 or 3 brands max.

 

[mstrjon32]

There was a time that having all those brands was a viable business model, but, that time has passed.

It probably should just be Chevrolet and Cadillac that remain. I'll be sad to see the Buick name go, but it's been years since I've seen it on a Buick I'd want to drive everyday, like a Grand National or a Skylark GS.

 

[Benzadmiral]

Slimming down GM is a good idea. But don't most companies try to offer three levels of a product -- the economy, the value, and the luxury model? It seems to me that Chevy, Buick, and Cadillac fit that nicely.

Let's say you've got a customer who wants more than a Chevy, but can't quite stretch to a Caddy. If you don't have something in between to offer him, he may go somewhere else.

Chevrolet
Buick
Cadillac
GMC for all the trucks and SUVs that survive

 

[GMBoy]

Originally Posted By: XS650
There are many ways to reduce GM brands, all of them better than what GM has done so far.

There is no reason to have more than two car brands, Chevrolet and Cadillac could cover the entire spectrum.

Few other car companies have more than two brand names.

GMC could become the only GM truck brand, or die and let all GM trucks be Chevys. I think there is -some- merit to saving the GMC name.


Mercury has no real reason to exist either. They are basically just tarted up Fords.




What you say is true. But the unfortunate reality is that is costs a lot of money to eliminate brands due to the dealer networks. I'd personally like to see just Chevrolet (and move all the trucks to GMC just because I always liked the GMC looks better), Pontiac and Cadillac. Of course, keeping all trucks with Chevrolet makes more rational sense. Saturn is really not Saturn anymore.

 

[ViragoBry]

My Wish for GM:

Kill Saturn and Pontiac (move the Vue, Sky and G8 to Chevy, flush the Aura, Solstice, Equinox and G5) Kill Hummer, and kill everything at Chevy that currently exists at GMC to end all the duplication between the brands. The Sierra and Acadia are better looking anyway. I prefer the looks of the Tahoe over the Yukon, but I can't have everything. The Envoy and Trailblazer are dead already. Someone will buy Saab...for the right price. Cadillac is the only one that seems to be on the right track. Once they've merged the DTS and STS, they'll be alright as long as they don't get Cimarron-minded again and try a car smaller than the CTS. Bad idea, Caddy...don't do it.

Major house cleaning needed.

 

[wapacz]

actually it looks like gm may get a few hundred mill for hummer.

 

[ViragoBry]

Wow...I wouldn't give them two pennies for it.

 

[XS650]

Originally Posted By: GMBoy

What you say is true. But the unfortunate reality is that is costs a lot of money to eliminate brands due to the dealer networks.


How much does it cost to say "Buh bye"? We are talking bankruptcy here.

GM has some good products with potential but they need to get rid of the dead weight.

 

[XS650]

Originally Posted By: wapacz
actually it looks like gm may get a few hundred mill for hummer.


That's about right, a few hundred mill = part of a dollar.

 

[BrianWC]

I'm torn on the whole GM situation. I'm all for doing what it takes with the UAW. But at the same time, heck, I work for the govt. Take away my benefits and I won't be too happy, either.

As far as divisions go, you have to realize GM bought most of the divisions as independent companies. It's not like they created these brands out of thin air. Saturn's the only one they really created.

For a primer on GM history, try the wiki article: http://en.wikipedia.org/wiki/History_of_General_Motors

I do think GM got a little lazy on the gravy off its SUV sales. But that's what everyone was buying. Toyota jumped on the bandwagon as well. But they still were able to keep up investment in their traditional small cars.

 

[XS650]

Originally Posted By: BrianWC

As far as divisions go, you have to realize GM bought most of the divisions as independent companies. It's not like they created these brands out of thin air.

Most of us have bought things that outlived their usefulness and decided to get rid of them.

GM has dropped more many brands than they have today.

 

[BrianWC]

Yes, I undestand that. I'm just pointing out there is more to GM's divisions than a sales contrivance.

 

[Tempest]

Hummer and SUV sales up in Iraq.
http://www.shreveporttimes.com/article/20090303/NEWS05/903030310

 

[PT1]

Originally Posted By: wapacz
actually it looks like gm may get a few hundred mill for hummer.


Yeah...since they spent over $1 billion on it years ago...nice profit...

 

[BrianWC]

Originally Posted By: Tempest
Hummer and SUV sales up in Iraq.
http://www.shreveporttimes.com/article/20090303/NEWS05/903030310


Hey...that's my paper!

 

[wapacz]

Originally Posted By: PT1
Originally Posted By: wapacz
actually it looks like gm may get a few hundred mill for hummer.


Yeah...since they spent over $1 billion on it years ago...nice profit...

The thing is do we know how much profit they made off it in that time. My understanding is that those vehicles had a very high margin on them.

 

[GMBoy]

Originally Posted By: XS650
Originally Posted By: GMBoy

What you say is true. But the unfortunate reality is that is costs a lot of money to eliminate brands due to the dealer networks.


How much does it cost to say "Buh bye"? We are talking bankruptcy here.

GM has some good products with potential but they need to get rid of the dead weight.



Just look up what it cost to get rid of Oldsmobile. We are talking contractual issues with dealers - that's why it is costly. But - yeah if you go the Bankruptcy route than all is fair game.

 

[GMBoy]

Guys - look I am on the inside at GM. I'm a manager (not a top paid brass though!) and I gotta tell you we are trying SO hard to make things work. We little guys can't fix what the top big dogs have done to the company - yet we're paying the price the most. Our plants are not even doing PM on equipment anymore and breakdowns are starting to pop up where they never have. We are running tight and lean. But even with all this - I really believe that Bankruptcy is gonna happen. We can't fix this problem in 60 days.

 

[Cutehumor]

Bankruptcy, they can dump UAW, Brands-dealer contracts. sounds like they need to. I thought bankruptcy wasn't an option two months ago with the former CEO.