Forums
RSS
Dealers
GM Might Kill Saturn, Pontiac, Saab Says Rumor Mill
Email this page to your friend:
According to Bloomberg News on Wednesday, by way of Detroit News, GM is considering eliminating its Saturn, Pontiac, and Saab divisions. The move would ostensibly help it receive as much as $12 billion in federal assistance. As of late Wednesday, GM spokesman Steve Harris had no comment on the possible move.
Bloomberg's article quoted sources who came forth only under condition of anonymity. Axing divisions may be a part of GM's formal plan to be presented to Congress this coming Tuesday, December 2, as the Big Three return (hopefully on a commercial airline, or perhaps Greyhound) to make their case once more. After the first monetary request to Congress, Nancy Pelosi and other congressional leaders refused assistance to the Big Three and asked for fiscally responsible plans that show they will be good stewards of loaned monies, able eventually to pay it back.
Part of GM's enormous daily cash burn is supporting a behemoth dealer network--as well as vehicle R&D--for a grand total of eight brands. Paring down to five brands in all will conceivably make GM a leaner, meaner operation, bringing it closer to Ford (four brands) and Chrysler (three).
So what important vehicles might we lose in this scenario? Nothing that couldn't be shifted to another division or that isn't already just a rebadge. The most unique models that come to mind are the Saturn Astra (a rebadged Opel), Saturn Sky/Pontiac Solstice, Saab 9-3 and 9-5, and the Pontiac G8. I think the G8 would be the only significant loss, as it would leave GM without a rear-wheel-drive V-8 performance sedan, apart from the awesome (but twice-the-price) Cadillac CTS-V. Could the G8 be morphed into the next-gen Impala, which should always have a been a rear-driver anyway?--Colin Mathews
---
Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius.
Responses (15 total)
By Greg | Posted: Dec 16th 2008, 06:23:06 PM
Kill Pontiac/Saturn. Sell SAAB. Kill GMC. Keep Chevrolet, Buick, Cadillac. Make the G8 an Impala. Make the Impala a 2dr 4dr and Wagon (Just like it used to be!). Quit building duplicate and triplicate models under different names...this was never smart. Go back to the basics of the 50's and 60's, building fewer/better models with retro designs that will sell to Americans. We like retro...ie, Mustangs, Challenger, HHR, Camaro... Then, reorganize the UAW (b.s.) and find a cheaper health insurance agent. Quit spending millions on ads that don't work and find someone that will make ads for the Big 3 to compete with the foreign Big 3 (Honda/Nissan/Toyota). As far as Ford is concerned, get rid of Mercury and keep Ford/Lincoln brands only. Chrysler has already begun to eliminate cars that don't sell.
GOD BLESS THE US AUTOMOBILE!
By Tony | Posted: Dec 13th 2008, 01:42:39 AM
Selling off brand or doing away with them all together will not solve the problem. If the US can not build a better and more affordable car than the foreign car companies they will still be in the same shape they are in now.They need to cut the fat at the top of the companies. Each white collar worker who is not needed could save four or five blue collar workers job. The unions need to open their eyes up as well and renegotiate with car companies to save jobs instead of being stubborn and maybe having thousands lose their jobs.
By Paul zuercher | Posted: Dec 2nd 2008, 05:53:42 PM
I think GM should keep SATURN and kill both PONTIAC & BUICK. They could probably sell the HUMMER & SAAB brands to some foolish group of venture capitalists.
This would leave GM with three brands to build upon; CHEVY, SATURN & CADILLAC. This makes sense but they need to file for bankruptcy protection as well.
Ford should eliminate the MERCURY line. When did you last see a Mercury on the road that didn't have a Hertz or Budget bar code in the back window?
By Wade | Posted: Dec 1st 2008, 10:55:18 PM
I totally agree. Saturn is ready to go I believe. Ditch Saab, I've never seen someone drive a new one anyway, so just do what should've been done along time ago, get rid of it. DO NOT kill Pontiac. Pontiac is just about the only hope left for performance fans such as myself. Of course they won't get rid of Chevy, which they shouldn't. But man do NOT get rid of Pontiac. I could see Hummer leaving though. Maybe even Buick, but Pontiac seems to be doing very well with the G6 and G8, but I agree give it a real name. Not these stupid letters and numbers. That's unidentifiable to me.
By Reece | Posted: Dec 1st 2008, 02:34:49 AM
It is a sad day but one that GM has been heading to for some time.
GM did nothing with SAAB, it could and should have a long time a go either killed it off or sold it on or done soemthing with it. It just kept pumping out another 9-3. Problem with selling it is that it is now all based on GM product anyway so who would buy it? It should have developed smaller cars and more than just the the 9-3. Sad also as seemed to be heading in a nice design direction.
Saturn, again bad management, Saturn could have been turned into small car division but wasn't instead became just another badge engineered crap (apart from Sky, badge engineered but not crap). Time to Axe it.
Pontiac, why Axe it? Either sell it or just keep going but at small rate.
SAAB and Saturn I think just kill them off, any value they might have had is gone. Pontiac just park until hoped for better days.
In the end though it isn't going to solve the problem. VW does ok with around 8 brands (if you include Porsche, VW, Audi, Skoda, SEAT, Lambo, Bugatti and Bentley) so it can be done if done properly. GM just needs better management.
I'd do as VW and split into two Divisions with two dealer networks in the US; Chevrolet Division (everyday cars Chevy, Pontiac, & GMC) and Cadillac (upmarket- Caddy, Buick and Hummer). As an upmarket only brand I think Hummer still makes some sense.
I'd keep Pontiac small, maybe 4 vehicle lines built off of other GM products but with unique styling, also would return to names eg Bonneville (for G8), GTO (using Camero parts), Tempest (G6) and Solstice
By Ed | Posted: Nov 30th 2008, 05:21:45 PM
"Your “business” expertise is at the level of the 8th grader (which happens to be exactly when you dropped out)"
JerkD:Do not judge others by your own pitiful performance, Village Idiot!
and are you THAT stupid, OR do you dishonestly misinterpret what I write?
What I wrote was 100% CLEAR and it is NOT necessary for village idiots like YOU pitiful creature to misinterpret them!
Idiot!
By Wayne | Posted: Nov 30th 2008, 02:54:34 PM
I think that rebadging a vehicle from another market to sell here is a very good idea. It does give the automaker other options and they don't have to engineer from the ground up. However, I do agree that badge engineering in the same market is a waste. Honestly do we need a Ford Fusion/Mercury Milan/Lincoln MKX? Or do we need the Arcadia/Outlook/Enclave/Traverse? How about the exciting Aveo/G3 or the Cobalt/G5. I think the biggest problem is that GM has become GM's biggest competition. It has gotten a little out of hand.
By Jayko | Posted: Nov 30th 2008, 04:02:52 AM
Re badging is wasteful especially when you are selling 2 similar cars on the same markets with different brands. People can still see the similarities. Pontiac G5 and Cobalt? Plus if they are selling the Cobalt why sell a Saturn compact as well? There is no use to compete against products the company is selling. You don't see Honda or Toyota selling another car rivaling for the same market as their existing products.
What GM should do is sell Saab and Buick to China and give Hummer for free as well in the deal. Kill off Pontiac, GMC and Saturn. So all in all it should only have two main brands in the US Chevrolet and Cadillac to go with Opel, Holden and Daewoo. GM should have not started Saturn in the first place, they could have brought the Opel brand instead.
GM with its high cost in product development for different brands around the world should learn on amalgamating the r&d of all its brands. Opel, Daewoo, Holden and Chevy should build the same compact car with Opel concentrating in Europe only, Daewoo in Asia, Holden in Australia and Chevy in North America. With that the cost cutting will be massive on its own.
By JKD | Posted: Nov 30th 2008, 12:01:19 AM
According to Accordsforall's (Ed's) "wisdom", GM would only have one advertising budget (sharing it with the Aussies and the Germans I guess?) if they brought over Opel Astra or Holden Commodore without rebadging.
The same way he can't tell a difference between gas and diesel cars, he can't tell the difference between rebadging GM Acadia as a Chevy and Holden as a Pontiac (or euro Honda Accord as Acura TSX) either.
Your "business" expertise is at the level of the 8th grader (which happens to be exactly when you dropped out)
By JKD | Posted: Nov 29th 2008, 10:17:31 PM
Accordsforall (Ed) - Please spill your venom somewhere else. No wonder your BF left you.
Post a comment: