General Motors (NYSE: GM) has already said that it will jettison Saab, Saturn and Hummer, but increased government pressure to cut costs and restructure could also spell the end for Pontiac and GMC. That would leave Chevrolet, Cadillac and Buick as the last brands standing.Citing the ubiquitous "people familiar with the discussions", Bloomberg reports that "GMC has a better chance of surviving than Pontiac, one of the people said [...] Among the decisions yet to be reached is what would happen to Pontiac or GMC should Detroit-based GM opt not to keep them, the people said."
That jettisoning five of GM's eight brands is seen as the best way to position the company for long-term viability provides a strong indication of what horrible shape the company is in. The only assets that GM has are its brands. Once you eliminate those, all you have are massive debt obligations, union contracts and executives with a proven track record of incompetence. You would think that GM's huge overhead would make having more brands good, but apparently GMC, Pontiac, Saab, Saturn and Hummer are so hopeless that this isn't the case.
It will be fascinating to see what, if anything, GM can get for the brands it's eliminating. The company has been trying to sell Hummer for a long time, but doesn't appear to have generated meaningful interest. Apparently, the only buyer for what GM is selling is the United States government.
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Reader Comments (Page 1 of 1)
4-16-2009 @ 11:52AM
mselling10 said...
Dear Zac:
I often view with interest and concern how consumed you are with constantly writing about things you pretend to know so much about but in truth can only offer an opinion. An opinion which is often based on words, books and lectures and not real life. It must be exhausting trying to be such a know-it-all. Someone as young and naive as you should be experiencing a more balanced life. Spend less time on the computer. You need to get a life. Go outside and play and enjoy yourself.
4-16-2009 @ 8:46PM
Duke said...
I think GMC should stay so it can be sold at Cadillac, Buick, and Chevy dealers. GM without a Chevy truck though will be a shame. GM and the customers though eventually wil get used to it.