General Motors' Brave New World: Only Four Brands Will Survive
12-03-08, 09:46 AM
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General Motors' Brave New World: Only Four Brands Will Survive
DETROIT — General Motors' core brand portfolio will shrink from eight to four by 2012, according to the ambitious restructuring plan the automaker laid out for lawmakers on Tuesday. The surviving brands would be Chevrolet, Cadillac, Buick and GMC.
"Pontiac will be a specialty brand with reduced product offerings within the Buick-Pontiac-GMC channel," said General Motors in a statement. "GM will immediately undertake a global strategic review of the Saab brand. As part of the plan, the company also will accelerate discussions with Saturn retailers, consistent with their unique relationship, to explore alternatives for the Saturn brand."
GM has been shopping its Hummer brand since June.
The automaker said it needs $4 billion in federal loans by the end of December to stay in business. The automaker is requesting term loans of up to $12 billion from the government to "provide adequate liquidity levels through December 31, 2009." It is also requesting a $6 billion line of credit "to provide liquidity should a severe market downturn persist," it said. The automaker said it would begin repaying the loans by 2011.
While insisting it will remain "a full-line manufacturer," GM said it will substantially change its product mix over the next four years and "launch predominantly high-mileage, energy-efficient cars and crossovers."
It said it will invest about $2.9 billion in alternative fuels and advanced propulsion technologies during 2009-12, including plug-in electrics, gasoline-electric hybrids and fuel cells.
GM chairman and CEO Rick Wagoner has also agreed to accept a salary of $1 next year as part of the restructuring. Wagoner received a $1.6 million salary and $12.8 million in other compensation last year.
Inside Line says: If GM survives, it will be a shadow of its former self with a drastically reduced product portfolio. — Anita Lienert, Correspondent
"Pontiac will be a specialty brand with reduced product offerings within the Buick-Pontiac-GMC channel," said General Motors in a statement. "GM will immediately undertake a global strategic review of the Saab brand. As part of the plan, the company also will accelerate discussions with Saturn retailers, consistent with their unique relationship, to explore alternatives for the Saturn brand."
GM has been shopping its Hummer brand since June.
The automaker said it needs $4 billion in federal loans by the end of December to stay in business. The automaker is requesting term loans of up to $12 billion from the government to "provide adequate liquidity levels through December 31, 2009." It is also requesting a $6 billion line of credit "to provide liquidity should a severe market downturn persist," it said. The automaker said it would begin repaying the loans by 2011.
While insisting it will remain "a full-line manufacturer," GM said it will substantially change its product mix over the next four years and "launch predominantly high-mileage, energy-efficient cars and crossovers."
It said it will invest about $2.9 billion in alternative fuels and advanced propulsion technologies during 2009-12, including plug-in electrics, gasoline-electric hybrids and fuel cells.
GM chairman and CEO Rick Wagoner has also agreed to accept a salary of $1 next year as part of the restructuring. Wagoner received a $1.6 million salary and $12.8 million in other compensation last year.
Inside Line says: If GM survives, it will be a shadow of its former self with a drastically reduced product portfolio. — Anita Lienert, Correspondent
ffpower says: Four brands are not bad but three brands will be better. Ditch the GMC and keep only Chevy, Buick and Caddy.
12-03-08, 09:53 AM
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" I would love to provide that financial information to you Congressman, but NDAs prevent me from doing so... however, I have no problem providing Financials in the proper forum."
- Rick Waggoner, before Congress, UNDER OATH, on his being unable to disclose financials on a PUBLICLY TRADED COMPANY
Last edited by rdgdawg; 12-03-08 at 01:42 PM.
12-03-08, 10:05 AM
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Buick and GMC are worthless. Move Saturn downscale, where is started rather than having it in line with Chevy. Duh!
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12-03-08, 10:05 AM
#9
While I think that the creation of a "final four" within a new GM theoretically sounds great, the inclusion of GMC is absolutely mind boggling to me. Keep the segment that has a duplicate of every model in the Chevy lineup, but with more chrome and wood? Oh, that definitely makes sense. 
My final choices would be Chevrolet, Cadillac, and Saturn.
Cadillac- Luxury brand
Chevrolet- Mainstream Brand
Saturn- Entry level brand, a la Scion. Bring the company back to its roots of offering cheap, basic transportation.
Between upper level models of Chevy and base Cadillac models, Buick is redundant. A nice Impala or Malibu of the next generation would probably more than satisfy disenfranchised Buick shoppers.
Saab is crap. Hummer is old news. Pontiac, sans the G8, is redundant. Buick is unnecessary as mentioned above. GMC is COMPLETELY unnecessary.
They need to look at what will REALLY help them clean house and become whole again, not the brands that they have nostalgia towards and don't want to see die. This is the SAME senseless, sensationalist business strategy that has gotten them to where they are now. GM needs to go back to basics, period.
My final choices would be Chevrolet, Cadillac, and Saturn.
Cadillac- Luxury brand
Chevrolet- Mainstream Brand
Saturn- Entry level brand, a la Scion. Bring the company back to its roots of offering cheap, basic transportation.
Between upper level models of Chevy and base Cadillac models, Buick is redundant. A nice Impala or Malibu of the next generation would probably more than satisfy disenfranchised Buick shoppers.
Saab is crap. Hummer is old news. Pontiac, sans the G8, is redundant. Buick is unnecessary as mentioned above. GMC is COMPLETELY unnecessary.
They need to look at what will REALLY help them clean house and become whole again, not the brands that they have nostalgia towards and don't want to see die. This is the SAME senseless, sensationalist business strategy that has gotten them to where they are now. GM needs to go back to basics, period.
12-03-08, 10:11 AM
#10
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With Saturn, they are basically tossing in some of the Euro brands that sell well over there. I remember those Euro Chevys sold quite well when I lived in Mexico.
12-03-08, 10:34 AM
#11
I'd say go Chevy - Mainstream to fight Toyota, Caddy - Performance Luxury to go against the Euros, Buick - Comfort Luxury to fight Lexus and Hyundai and Saturn for basic cheap stuff like said Scion. If I could have a say, keep Pontiac as the specialty line with like the G8 and a new T-Bird/Firebird. a modern T-Top would be kinda cool, no?
12-03-08, 11:16 AM
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Good ridance to that gas guzzling urban tank birth defect causing pollution factory hummer. my kids will breathe cleaner air now that it won't be around anymore.
all we need to do now is bankrupt the coal industry, the cause of the majority of pollution and we'll be set
all we need to do now is bankrupt the coal industry, the cause of the majority of pollution and we'll be set
12-03-08, 12:33 PM
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I think they should maintain Chevrolet, Cadillac, and Hummer only. One regular brand, one luxury brand, and one truck-specific brand. Buick and Cadillac are sort of redundant. Since both Chevrolet and Cadillac already have their own SUVs and trucks, then GMC is not necessary. Anyhow, simplifing their lineup is a good move.