By Deep Throat
May 9, 2008 - 3,689 Views
If GM keeps all its brands and most of its vehicles, there is no road map to longer term success. In the end, there just isn't enough money or market share to justify or support The General's North American operations as they exist today– even in their downsized, strike-afflicted form. At some point, preferably ten years ago, GM needs wholesale consolidation to focus on three brands: Chevy, Caddy, and Saturn. Everything else is superfluous. The problem at the RenCen: they can't figure out how to shed brands/products. Alan Mulally has shown the way Fordward, but he's dismembering recently purchased assets. GM's decades old "damaged" brands can't be sold individually, and can't be terminated. Short of C11, GM's going to have to bite the bullet and tell its BPG (Buick, Pontiac, GMC) AND Saab and Hummer dealers that the corporate mothership will honor existing franchise agreements until they expire, but they will not be renewed. Sure, it'll be the letter that'll launch a thousand lawsuits. But there's no other way for GM to survive in NA. None.
Subscribe to Newsletter51 Responses to “ Wild Ass Rumor of the Day: GM to Shutter BPG? ”
Pages: [1] 2 3 4 5 6 » Show All Reverse Order
Pages: [1] 2 3 4 5 6 » Show All Reverse Order
Leave a Reply 
Back to Top
You must be logged in to post a comment.
Digg
del.icio.us
Blinklist
Furl
Netscape
Google
NewsVine
Reddit
StumbleUpon
Technorati
YahooMyWeb
Windows Live
POWERED
May 9th, 2008 at 10:39 am
Would starving them of products entirely have a chance of working?
Not that’s it’s going to happen, but the question stands.
May 9th, 2008 at 10:42 am
AKM:
Starving the dealers does little to reduce GM’s overheads/cash burn. How long would it take? What would be the point?
May 9th, 2008 at 10:42 am
Is there any basis for these Wild Ass Rumors, or do you guys just make this stuff up?
In any case, I agree with AKM - staving them of products would be easier (if slower) than outright closing these brands - That seems to be what Ford is doing with Mercury, and it seems to be working so far.
May 9th, 2008 at 10:48 am
In any case, I agree with AKM - staving them of products would be easier (if slower) than outright closing these brands - That seems to be what Ford is doing with Mercury, and it seems to be working so far.
I don’t know about that. I agree with Farago on this, all starving them of products would do is force them to slash prices–meaning that not only would the move probably not work, it would probably just eat into GM’s cash flow and make the company’s financial problems worse.
May 9th, 2008 at 10:49 am
There is no way GM can afford to shutter Buick/Pontiac/GMC at this point. It can’t afford to lose the volume or buy out the dealers.
A more likely scenario involves starving Pontiac of product, and allowing it to fade away. Insiders on other boards have said that the G8 will last 2-3 years, if that long. The Torrent will be replaced by a GMC equivalent, while plans for a new G6 are supposedly up in the air.
Of course, if sales keep falling, the market will make the decision for GM regarding all three divisions.
May 9th, 2008 at 10:56 am
Anonymous writers have no credibility or connection with the Truth. Way off base for what this blog stands for.
May 9th, 2008 at 10:56 am
To quote Chris Matthews: HAH!
Saturn needs to go first though. Way back in the era of Prodigy forums (yep, I’ve been playing this game that long) I got into heated arguments with Saturn fans by saying that Saturn was a dumb idea from day 1 and that the last thing GM needed was yet another brand, another factory and another dealer network. That was over 15 years ago, and it is still true, but more so.
The BPG wind-down path is simple. Go the Isuzu route. Give each brand one uncompetitive badge engineered product and let the dealers give up one by one.
For Hummer just keep building the current products until nobody buys them anymore. For heaven’s sake don’t spend another penny on development for anything other than Chevy and Caddy in the US.
May 9th, 2008 at 11:03 am
Chevy, Caddy, and Saturn.
Saturn??? ROFLMAO.
May 9th, 2008 at 11:04 am
I think Saturn needs to die before Buick Pontiac and GMC, to be honest. Has never made dime one for the mother ship, and therefore, has been a continual source of money hemmorhage.
Here’s a novel idea from the “wadayagoddalose?” department of GM survival ideas.
Kill Pontiac. And Saturn. Expand the Buick line by moving the Astra into the showrooms, and sell it as an Opel Astra. Honesty! Move the Vibe to Chevrolet showrooms. If the geriatric set don’t buy sufficient numbers of Buicks to retain the manufacturing end of the brand viably in the states, then simply import the few needed from China.
May 9th, 2008 at 11:18 am
“Anonymous writers have no credibility or connection with the Truth. Way off base for what this blog stands for.”
you can’t read everything so darn literal. If you read it like an editorial or random thought bubble its just an expression of what could come about. It brings discussion from we the auto community and that leads to a collective truth. I’m in favor of wild ass rumors so long as they are properly labled!