An American idle
GM is in trouble. If everyone knows that they are going to have x% of global marketshare, it would probably be best if they cut to get there. This stuff was going on when Perot was on the board. Not enough cost consciousness (too many executives with too many chauffer driven cars) plus poor sales plus mediocre products equals 15 percent?
If anything the company should go "nuclear" and declare bankruptcy to protect what's left and get rid of the pension obligations. In the end though, they will have to streamline the offerings. I read today that the cost of closing Oldsmobile was very expensive, but maybe they shouldn't be so nice to the dealers and start worrying about what customers they have left.
The other possibility is that they use what they have and aggressively get after their individual brands. Pontiac is the excitment division ... Move all the cars that fit under that banner (Corvette to special vehicle editions of other cars) to Pontiac. Cadillac takes all the luxury brands. Make Chevy the entry level brand. GMC takes all the trucks. Saturn takes on what's quirky and innovative (They should have a car MPG envelope, not a two seater). What Saturn buyers want is something different, economical, and fun (in other words a hybrid). If they rearrange their cars and get the brands and the cars to align, they should be in better shape. No matter what they do, they will continue to lose market share and money for the forseeable future.
GM is in trouble. If everyone knows that they are going to have x% of global marketshare, it would probably be best if they cut to get there. This stuff was going on when Perot was on the board. Not enough cost consciousness (too many executives with too many chauffer driven cars) plus poor sales plus mediocre products equals 15 percent?
If anything the company should go "nuclear" and declare bankruptcy to protect what's left and get rid of the pension obligations. In the end though, they will have to streamline the offerings. I read today that the cost of closing Oldsmobile was very expensive, but maybe they shouldn't be so nice to the dealers and start worrying about what customers they have left.
The other possibility is that they use what they have and aggressively get after their individual brands. Pontiac is the excitment division ... Move all the cars that fit under that banner (Corvette to special vehicle editions of other cars) to Pontiac. Cadillac takes all the luxury brands. Make Chevy the entry level brand. GMC takes all the trucks. Saturn takes on what's quirky and innovative (They should have a car MPG envelope, not a two seater). What Saturn buyers want is something different, economical, and fun (in other words a hybrid). If they rearrange their cars and get the brands and the cars to align, they should be in better shape. No matter what they do, they will continue to lose market share and money for the forseeable future.
posted by Spud at 2:30 PM
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