GM Might Kill Saturn, Pontiac, Saab Says Rumor Mill
GM Might Kill Saturn, Pontiac, Saab Says Rumor MillAccording 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
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Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius. Saturn logoEnlarge Photo Pontiac logoEnlarge Photo Saab LogoEnlarge PhotoAccording 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.
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Responses (18 total)
By anonymous #1, Posted: 11/29/2008
The G8 is a rebadge of the Aussie Holden Commodore.
The 9-5 is a rebadge of the Opel/Vauxhall Vectra.
The Astra, as you mentioned, is a rebadge of the Opel/Vauxhall Astra (lots of creativity there, boys!).
The Vue (you forgot to mention) is a rebadge of the Opel/Vauxhall Antara.
Practically everything out of GM is a rebadge.
The loss of the G8 is a HUGE loss, as GM loses its best counterpunch to the Chrysler 300.
Watch GM axe these three divisions, then scramble (and burn more cash) rebadging these rebadges to their other divisions. A few months later, watch them cry uncle again, cut a couple more divisions, rebadge some more, lather, rinse, repeat.
Why does GM keep making belated too-little-too-late decisions like this? They really don't deserve that taxpayer bailout money. Just Die Already(tm).
By JKD #2, Posted: 11/29/2008
I fail to understand what is so wrong about rebadging overseas models if they work well in the market here? It's different when you take GMC Acadia and turn it into four different flavors but a G8, Astra, or a 9-3 (not a 9-5 as you stated) was NOT a bad idea.
Why reivent the wheel; if anything use and apply what's already been done. Honda (and even Toyota) is the best example of rebadging and using just a couple of platforms across its lineup and it's served them well.
By Ed #3, Posted: 11/29/2008
"Tell me lies, tell me sweet little lies"
Rebadging is a FRAUD. No wonder JKD has no clue as to what's wrong with it.
And it is EXTREMELY Stupid. Instead of having ONE advertising budget, you will need SEVERAL, one for each re-badged brand. Idiotic. You lose 100s of millions unnecessarily. No wonder JKD likes it.
Take the latest fraud, the so-called VW "Routan" minivan. it is merely a re-badged CHRYSLER van. And they paid Brook Shields an arm and a leg to advertise this POS to morons around the world, by that idiotic story that some dumb chicks get pregnant just in order to buy the POS!!!!
LOL..
By Ed #4, Posted: 11/29/2008
CLosing down Saab is no big deal, it was almost closed down already due to pitifully low sales, and its models have NOT been unique since the 80s, when the 9000 shared the same platform with some lame Lancias and the Opel Vectra. Pathetic and Idiotic.
CLosing down Pontiac would be a pity, why not close down BUICK, which may do well in CHINA, but over here its buyers are dying one a minute, and the average age of them is 98?
But closing SATURN betrays the Extreme mismanagement of the IDIOT CEOS at GM, it was THEM that built up the stupid Saturn division, maker of execrable cars or copier of Opels, at the EXPENSE of poor Oldsmobile, who died so that Saturn lived. Now they all go to hell. Nice job, MORONS!
By Dave #5, Posted: 11/29/2008
Sell Saab instead of killing it, Keep Pontiac but akso kill Saturn. The Saturn concept never worked and GM should of killed it before it killed Oldsmobile. Pontiac is a historic name and they do make some very good cars but killing a big name like Pontiac is just stupid. Sell Saab, nobody ever thought them as part of GM anyways. And sell Hummer fast or just kill it altogether if it dont sell. Pontiac has a very strong customer base and you would anger those people and loose them forever. There is nothing wrong with Pontiac selling rebadged Holdens since they are not sold here. This is the correct thing to do but as we all know Rick Wagoner does not do the correct thing (step down).
By JKD #6, Posted: 11/29/2008
Accordsforall (Ed) - Please spill your venom somewhere else. No wonder your BF left you.
By JKD #7, Posted: 11/30/2008
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 Jayko #8, Posted: 11/30/2008
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 Wayne #9, Posted: 11/30/2008
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 Ed #10, Posted: 11/30/2008
"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!
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