Which Brands Should GM Cut?

<p>I live in Michigan, so this is a huge issue with the Big Three auto crisis.</p>

<p>Personally, I think GM should cut Pontiac and save Saturn. Pontiac has been deteriorating in quality and design for years. Saturn has that certain quality that can compete with imports. </p>

<p>Hummer is expendable too.</p>

<p>[7</a> myths about Detroit automakers | Freep.com | Detroit Free Press](<a href=“http://www.freep.com/article/20081205/COL14/812050400/?imw=Y]7”>http://www.freep.com/article/20081205/COL14/812050400/?imw=Y)</p>

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<p>So far, 3-4 million people’s lives (workers, suppliers, dealerships) are at stake if nothing is done to save the Big Three automakers.</p>

<p>Cut: GMC, Buick.</p>

<p>Keep: Chevy, Pontiac, Saturn, Caddy, Hummer.</p>

<p>Pontiac could be cut, but just bring the Aura/G8 under the Chevy umbrella.</p>

<p>I find it interesting that Gm has the technology for the electric car. Did anyone see the documetary “Who killed the Electric Car?” GM already had prototypes done and gave the cars to many people to use back in the early 1990’s. I know some one who had the car.
[Who</a> Killed the Electric Car?](<a href=“http://www.whokilledtheelectriccar.com/]Who”>http://www.whokilledtheelectriccar.com/)
I highly recommend this if you can get a hold of this.</p>

<p>GM is going to bring out the Volt, lets see if it’s actually a financial success first.</p>

<p>Do not cut Buick. They’re one of the higher-quality brands that GM has.</p>

<p>

Artifact of data gathering procedures. It’s well known older buyers report problems at a lower frequency compared to younger.</p>

<p>Regardless, you can roll those Buick models into other brands, so you suppousedly do not lose the “higher quality” models.</p>

<p>Combine Buick and Pontiac and reduce the line to Solstice, G6, G8, and Lucerne. These are all good cars in their respective niches and are marketable to a broad demographic range. Let G5 and Lacrosse buyers look at comparable Chevy models.</p>

<p>Hummers are a tough call. They have no place in a world that must become more energy efficient as could be said about most SUV’s that are used to drive to the supermarket. But they sell. So combine the SUV models under 1 flag and pare down the total models to provide a good cross section of lower cost utility models, suburban warrior station wagons and work vehicles.</p>

<p>Not being privy to all the financials, off the top I’d say - </p>

<ul>
<li>Keep Chevrolet - The flagship brand. Concentrate on improving the quality. Cut losing models.</li>
<li><p>Keep Cadillac - The luxo/premium brand.</p></li>
<li><p>Lose GMC - Redundant with Chevy</p></li>
<li><p>Lose Buick - Redunant with Chevy - tries to edge into Caddy space</p></li>
<li><p>Lose Pontiac - Redundant with Chevy</p></li>
<li><p>Lose Saturn - Difficult to reconcile this ‘everyday car’ brand against similar offerings from Chevy. Saturn’s also had lots of difficulties defining itself over the years. Redundant with Chevy.</p></li>
<li><p>Sell Hummer - It was too much of a niche market to have branded in the first place</p></li>
<li><p>Sell Saab - Many models are redundant with Chevy</p></li>
<li><p>Expand Chevy and Cadillac as needed to allow the other brands to go away. Perform dealership alignments as-needed. Continue to pursue potential market grabber vehicles like the Volt but only if it’ll work financially in a longer range plan. </p></li>
</ul>

<p>These redundant brands have been a losing issue for GM for years - well before the current economic situation. Now that they’re begging for my tax dollars to bail them out it’s time to resolve these long-standing issues and get their house in order post-haste. </p>

<p>The delineations have also changed over the years since one can get power/luxo/performance features in all but the most basic models from Chevy without having to move to Pontiac/Buick/etc. and the already defunct Oldsmobile.</p>

<p>The unions and the manufacturers need to get real and figure out how they can compete in a global environment. If they don’t, it’s the workers who’ll lose out the most.</p>

<p>How about trying to make cars that get decent milage, are comfortable, and maybe use hybrid technology. Sheesh…who is going to buy the $50,000 Volt that gets 40 miles to a gallon when they can buy a Prius that gets 55 miles to a gallon for less than 1/2 the price?</p>

<p>The U.S. automakers should have seen this coming. It makes me sick that they continue to make their gas guzzling cars with ridiculous price tags and poor reliability ratings. If nothing else, this should be a “wake up call” to them. People aren’t buying their cars because there are BETTER alternatives out there. I haven’t owned a car made by the big three (yes, I know they own parts of my foreign car companies) ever. </p>

<p>Why haven’t they been dealing with hybrids? The ones they have are a bit odd. The Escape is a start…but if you don’t want an SUV…you won’t want that hybrid (and the mileage isn’t exactly terrific). Why didn’t they make a hybrid version of the Focus…or the Saturn…or the Cobalt…you know…the smaller cars.</p>

<p>My next car will be a Honda Civic Hybrid. If the domestic makers had a car that size with a hybrid engine for a similar price, I would consider it. They don’t. </p>

<p>In my opinion, they should be given help ONLY if they are demonstrating that they are making more fuel efficient vehicles, and are getting rid of the gas guzzlers of the past.</p>

<p>thumper1, the Big Three do make hybrids. I go to the auto shows all the time, and I see their hybrids and flexfuel options (Saturn anyone?). There will always be a market for SUVs and trucks. I mean, what are the subcontractors and construction crews supposed to drive? Small cars? Some people simply don’t want small cars, which makes sense. Most Americans look for mid-size vehicles.</p>

<p>I think it’s sheer ignorance to say that all cars made by the Big Three are unreliable. They have made some tremendous progress in the last few years (Ford is now on par with Honda in quality and safety). In case you haven’t noticed, Toyota has been slipping in quality. Ditto for Nissan.</p>

<p>

I think you might be confused on some of the numbers. The metric is that the Volt is supposed to ‘go 40 miles with NO gallons - i.e. electric only’ - not that it gets 40mpg. I think the equivalent mpg based on cost power cost puts it somewhere in the > 100mpg range and it’s relevant since most commutes are within 20 miles. </p>

<p>I agree that the cost needs to be reasonable enough for consumers to choose it based on economics and it needs to be a cost GM can live with, i.e. turn a profit, and it needs to stand on it’s own 4 wheels - not be subsidized on the backs of the taxpayers.</p>

<p>There has been a lot of talk about how the Prius has actually been a money loser for Toyota. I don’t know if this is still the case or not. Toyota keeps a tight lid on this.</p>

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They do.</p>

<p>

I agree although there’s always room for improvement by any of the auto makers. My 1998 Dodge Durango now has about 158K miles on it and it still feels new to me but that’s because I don’t drive it that much (wife’s car). Instead, I drive a 1966 Ford Mustang with hundreds of Ks of miles on it. That said, my 1991 Ford Exploder (sic) was one of the least reliable vehicles I’ve owned - all due to quality and design issues.</p>

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<p>Please name ones that can be purchased at ANY local car dealership. I know about the Escape Hybrid and the Impala hybrid…anything else.</p>

<p>Often what is at the car shows is NOT available to the everyday consumer.</p>

<p>ucsc<em>ucla</em> dad…please name the small hybrid cars made by the U.S. car manufacturers.</p>

<p>I agree that there is a need for SUVs and pick up trucks. But I do not think that a passenger Hummer is a “need”.</p>

<p>Thank you ucsd<em>ucla</em>dad. The Big Three (especially GM and Ford) have changed a lot since the 1980s and 1990s. Sadly, some people (including congressional leaders) want the American automakers to disappear as though they have no effect on the economy.</p>

<p>You want to know who really makes gas guzzlers? Performance luxury vehicles like BMW and Mercedes Benz. Most of their vehicle line is not SUVs but their cars sure do get sub-20 mpg fuel economy with their V6/V8/V12 engines. The fuel economy and environmental effects are not the most important factors on the buyers’ minds.</p>

<p>tenisghs,</p>

<p>I’d be interested in your views as to why the Big Three are in such bad shape.</p>

<p>tenis…I agree that Ford has made huge changes…I think they are the ones who saw this all coming. Their new car designs and features are good ones. I would look at a Ford before I would look at GM or Chrysler. </p>

<p>But I do wish that even Ford had considered putting a hybrid engine into one model of the Focus.</p>

<p>U.S. Hybrid vehicles (2008 and 2009 models)</p>

<p>– Cadillac Escalade Hybrid
– Chevy Malibu Hybrid
– Chevy Tahoe Hybrid
– Chevy Silverado Hybrid
– Ford Escape Hybrid
– Mercury Mariner Hybrid Hybrid
– GMC Yukon hybrid
– Saturn Aura Green Line Mild Hybrid
– Saturn Vue Hybrid SUV </p>

<p>[Chevrolet</a> | Fuel Economy, Fuel Efficiency, Hybrid Vehicles](<a href=“http://www.chevrolet.com/fuelsolutions/]Chevrolet”>Fuel Economy: Electric Vehicles, Small Cars, Crossovers & More)</p>

<p>[url=<a href=“http://www.ford.com/innovation/environmentally-friendly/hybrid-technology/hybrid-taxis-chicago/hybrid-cabs-343p]Hybrid”>http://www.ford.com/innovation/environmentally-friendly/hybrid-technology/hybrid-taxis-chicago/hybrid-cabs-343p]Hybrid</a> Taxis–Chicago - Ford<a href=“Ford%20plans%20to%20introduce%20three%20more%20hybrids”>/url</a></p>

<p>tenis…thank you for the list. If the big three can put this hybrid technology into their largest or most expensive cars…why can’t they put it into one of their smaller cars??</p>

<p>

You didn’t have the word ‘small’ in your earlier posting.</p>

<p>I don’t know if you consider them small enough but besides SUVs there’s the -</p>

<ul>
<li>Chevy Malibu hybrid</li>
<li>Saturn Aura hybrid</li>
</ul>

<p>That said, making hybrids isn’t necessarily the panacea. The subject was mostly related to which brands are viable which relates to the profitability of the company. Hybrids aren’t necessarily the answer to their profitability since not all consumers want a hybrid. Looking at it another way, if the company only made hybrids they’d probably be even less profitable than they are now due to the high cost of producing a hybrid.</p>

<p>thumper:</p>

<p>Another question you might ask which might be more applicable to the topic - why don’t the 3 auto companies bring over for US manufacture more of the high mileage diesel vehicles they already produce in Europe? I assume they’re making an economic decision here and think USA consumers aren’t interested enough in a high enough volume but I think some of those vehicles might be viable and could employ people here in their manufacture.</p>