General Motors Corp. (NYSE: GM), flush with $13.4 billion in federal bailout cash, is going on a diet.Media reports indicate that the beleaguered automaker is going to focus on four core brands in North America: Buick, Chevrolet, Cadillac and GMC. Chief Executive Rick Wagoner told Bloomberg News that the company may retain Saturn, though the once-cutting edge brand's future remains cloudy.
Meanwhile, Chief Operating Officer Fritz Henderson said the company's "worst case scenario" indicates that it will need need more than the bailout money it has already received. Oy vey. That's not a good sign.
If there is to be a turnaround at GM -- and I realize that's a big if -- the automaker has to dispose of Saturn. Remember how GM trumpeted Saturn as a different kind of car company? It never quite worked out that way. I always found Saturns to be underpowered and ugly. Maybe one of the big European or Japanese car companies will purchase the division for the right price.
The automaker should have trimmed its portfolio of brands years ago. One of the major problems in Detroit is that too many models look the same. The one exception is Hummer, which lost its appeal as oil prices rose and the economy tanked. It does have appeal to politically incorrect types. Saab has such a small share of the U.S. market that GM should find it a new home. The ugly Pontiac Aztek soured me on the brand. (By the way, GM sold 25 Aztecs vehicles in 2007 -- which isn't so bad when you consider that GM eliminated the car in 2005.)
GM's December sales were probably down nearly 40% in December, according to Edmunds.com. Anyone with a pulse knows that the company is a desperate seller. Reducing the size of the company now is sort of like telling a 400-pound man with serious heart disease to start eating salads.
While such advice is well intentioned, it may too little too late.
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Reader Comments (Page 1 of 1)
1-12-2009 @ 6:36PM
Danny said...
simple just make a better product than china, car, boat, shoe, toaster...etc.. anything....we can do it....never have to worry about going under....or losing a job....with the internet and phone....have your employees work from home...pay them as a business.1099...have small assembly or manufacturing at home small shop or garage.....so many ways to be a win win for everyone in this country
1-12-2009 @ 7:48PM
Duke said...
Good bye Saturn and Pontiac. GM needs to get back to basics and KISS. Keep the average Joe in mind when getting a vehicle to market. Be flexible with the times. The economy will get going again in 5 to 10 years or so. GM needs to be ready for vehicles in that time frame as well. Just don't go hog wild on the amenities. Have them as options like the old days. Think of keeping and gaining loyalty again. Keep the car as easy to service as possible too.
1-20-2009 @ 6:18AM
UAW LIVEON said...
No not Pontiac I love their cars