Saturn Spins Spin-Off: "Informal Inquiries"
The Detroit News is reporting that Presidential Task Force on Automobiles (PTFOA) is ready to float some trial balloons—I mean, announce part of its master plan for “saving” the U.S. auto industry. The News reckons the PTFOA will place the cart before the horse, revealing its bailout strategy for the domestics’ suppliers sometime this week. Then they’ll unveil the new new bailout arrangement to fund GM’s new new new new new new new turnaround plan and, believe it or not, Chrysler’s mythological recovery strategy. Meanwhile, Saturn’s keepers are busy pre-stretching the limits of credibility.
Speaking to Automotive News [sub], Steve Girsky, “long-time industry consultant leading GM’s task force” (so many task forces, so few tens of billions), claimed he’d had informal talk (casual dress Friday?) with competitors interested in acquiring Saturn’s brand/dealer network. Girsky declined to name which automakers have talked to the group.
If that doesn’t smell to high heaven, how about the plan Girsky outlined for the all-too-credible news org.
The spin-off would offer car manufacturers an opportunity to build vehicles in under-used GM assembly plants or provide a ready-made U.S. distribution network for their products, Girsky said.
The spin-off could count on Saturn’s current vehicle lineup through 2011, Girsky said. Ideally, the new company would want to begin bringing in additional product from GM or others before that time, he said.
They would all sell under the Saturn brand. To keep a family resemblance for vehicles possibly coming from a variety of automakers, the new company could have light design capability, he said.
Here’s the kicker:
Several carmakers already market vehicles made by competitors, Girsky said. Chrysler LLC, for example, is making Volkswagen AG’s Routan minivan.
When your plan for a brand’s salvation is modeled after a single product that fell flat on its face in the marketplace, disgracing all concerned, you might as well close up shop and go home. Well, if it weren’t for that big, fat, taxpayer-funded consultancy fee.
More by Robert Farago
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KatiePuckrik: "I still reckon that GM would have been better off, packaging Vauxhall/Opel, Saturn and SAAB (complete with intellectual property) as one unit and selling it off." YOu know I have been mulling this over in my tiny brain about what should be done about GM and this morning I remembererd that at one time in GM's history they were in danger of being broken up because they controlled so much of the market. Then I realized that today the problem is the opposite. They are too big for the market share they have. But the solution is the same. Break them up into smaller pieces. How about Caddy/Chevy, Buick/Pontiac/GMC, and Opel/Saturn/Saab/Holden. For a period of years they would use the current platforms they have and even share factories. Then as model cycles progress they would become more independent. This would give younger managers the opportunity to shine. There can't be that many deadbeat managers to infect all four new companies. Each company would have to, after a predetermined time, sink or swim on their own merits. Some of them WILL fail. But two or more will be successful and some part of GM will survive. The only thing I can't figure out is how to separate GMC and Chevy trucks.
The main reason that Chrysler sales here in Canada are up over the other Detroit three is that they have given large rebates to purchasers, some people never consider what brand they buy, as long as it runs, they could care less and are not thinking of long term reliability either. General Motors actually raised there Prices here this year and they keep pushing the Korean built Aveo and Wave as "great cars" Its a crazy world we all live in isn't it?