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Old 04-27-2009, 01:54 PM   #1
AVANTI R5
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Default GM plans 4 core brands with 3 sales channels

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DETROIT -- In a revised viability plan filed with the government today, General Motors said it will market its four core brands through three channels.

GM also has mapped out which dealers are likely to be eliminated in its 163 major U.S. markets, says Troy Clarke, GM's president of North America.

"We have an understanding of how we want each market to look," said Troy Clarke, GM's president of North America. "We will spend the month of May talking to dealers about how we plan to develop the appropriate (dealer) support for each market."

GM said Chevrolet will have its own channel and be GM's foundation brand. Cadillac will be the luxury channel. Buick-GMC will be the third channel and be considered an "upper-premium" brand.

In major markets, Chevrolet and Cadillac will be stand-alone channels, GM said in its government report. Buick-GMC will stand alone or be aligned with Chevrolet or Cadillac with a "separate sales operation depending on market penetration and real estate costs," GM said.

A GM spokesman said that in big markets there might be some superstores consisting of all four brands and that stores could be realigned to carry three brands.
In mid-sized and small-town markets, GM said, "in many cases Chevrolet and Buick-GMC will be aligned with one dealer operator."

GM will "dramatically lower" the number of Cadillac dealerships it has in small markets.
GM announced it plans to reduce its dealership count to 3,605 by the end of next year. GM ended 2008 with 6,246rooftops.

About half of GM's upcoming cuts will be of dealers who have very small volumesand dealers who have other brands and do not get the bulk of their sales from a GM brand, said Mark LaNeve, GM's vice president of vehicles sales, service and marketing, during a press event here.

"I don't want to cut any dealers," LaNeve said. "It's tough stuff. The key to this plan, though, is to have 3,600 really strong dealers."

Chevrolet dealer Larry Dimmitt is one of the dealers in a major market who thinks he'll be OK given GM's sales channel strategy.

"We're going to come out stronger," said Dimmitt, who owns Dimmitt Chevrolet in Clearwater, Fla. "This should have been done years ago. The pace and urgency just wasn't there."
GM's Clarke said that single-line dealers of the brands that GM plans to discontinue likely won't be given new franchises.

GM has 35 stand-alone Pontiac stores. Saturn, which GM is hoping to spin off, has 384 dealerships as of April 6.
GM is close to a deal to sell its Hummer brand, CEO Fritz Henderson said today. It is restructuring Saab in an effort to sell it, too.
http://www.autonews.com/article/2009...904279968/1078
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Old 04-27-2009, 01:56 PM   #2
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Default GM accelerates Saturn shutdown to this year

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General Motors plans to build the last Saturn vehicles this year, two years earlier than first envisioned, as it speeds up efforts to shed dealerships and divisions, CEO Fritz Henderson said today.

The Saturn brand still may survive if GM can sell it to another automaker or investor, but GM no longer will build vehicles for Saturn after the 2009 model year, Henderson said on a conference call.

In its Feb. 17 plan submitted to the U.S. auto task force, GM planned to build Saturn vehicles through 2011. Under a revised plan announced today, GM will shed Pontiac next year, leaving the automaker with just four U.S. brands: Chevrolet, Cadillac GMC and Buick.

Henderson also said that GM no longer will build Hummer vehicles after the current model year.

No Pontiacs rebadged
No Pontiacs will be rebadged as Chevrolets, he said. The new G8 sports sedan will be dropped as will the Solstice sports car. Henderson said the Pontiac Vibe could be built into 2010, pending negotiations with manufacturing partner Toyota Motor Corp., which assembles the Toyota Corolla at a joint venture plant in California.

GM has begun talks to sell Saturn to a private equity group working with Saturn dealers.

"If a sale of Saturn does not occur, we intend to phase out the Saturn brand by the end of 2009," GM said in its government filing today.

"As a result, our current Viability Plan does not comprehend production and sales to dealers of Saturn products beyond 2009."

Earlier this month, an investor group called Telesto Ventures said it wants to acquire Saturn's retail operations and provide dealers with vehicles from GM through 2011 and from mostly overseas manufacturers thereafter. A GM spokesman called the group's proposal legitimate and "very interesting." He said there also were other parties interested in Saturn.
A Telesto spokesman said his group was in discussions with several unidentified foreign manufacturers.

He said Telesto, which was formed specifically for the Saturn venture, encompasses a private equity firm, Black Oak Partners LLC, of Oklahoma City, and several other investors. It's unclear how much money is backing Telesto and what automotive experience it has.

Dealer reaction
John Danielson, sales manager at Saturn of the Lakes north of Orlando, Fla., said he has 100 new Saturns in stock. The store sold only eight new Saturns last month. Monday's announcement confirmed a rumor Danielson said he heard last week.

"Business is very tough right now. Our new and used is down 50 percent over last year," said Danielson. Some deals for new cars that have not yet been delivered are now in danger of falling through because of GM's announcement Monday that no new Saturns will be built after the 2009 model year.

Danielson, who worked at the store when it was an Oldsmobile dealership, said he expects GM to come out with new incentives to persuade customers to buy the final models.
http://www.autonews.com/article/2009...NA02/904279978
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Old 04-27-2009, 02:01 PM   #3
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Its hard to read this, I have mixed feelings about all of GM's failings. Part of me is very happy about it. As companies that are run this poorly need to fail, but at the same time, seeing promising car companies fail before they are allowed to reach their potential, is sad. Saturn in particular. They were a great idea, that was properly executed, but then crushed beneath the incompetency of the GM management.
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Old 04-27-2009, 03:28 PM   #4
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Big things sure are happening fast at GM; its amazing what a little urgency can do.
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Old 04-27-2009, 03:58 PM   #5
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G8/U.S. Commodore is dead.
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Old 04-27-2009, 04:23 PM   #6
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No Pontiacs rebadged
No Pontiacs will be rebadged as Chevrolets, he said. The new G8 sports sedan will be dropped as will the Solstice sports car. Henderson said the Pontiac Vibe could be built into 2010, pending negotiations with manufacturing partner Toyota Motor Corp., which assembles the Toyota Corolla at a joint venture plant in California.
Fail. I wonder what I could get a G8 for?
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Old 04-27-2009, 04:49 PM   #7
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Fail. I wonder what I could get a G8 for?
I keep thinking the same thing.

Trade in the STI for a G8 GXP and pick up a used Outback for winter excursions
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Old 04-27-2009, 04:59 PM   #8
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Fail. I wonder what I could get a G8 for?
I imagine G8's and Solsti will be worth something one day due to their limited numbers. If you get one, better keep it.
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Old 04-27-2009, 05:05 PM   #9
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So, no more Sky or Solstice? Wow. The Miata outlasts the competition yet again.
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Old 04-27-2009, 05:14 PM   #10
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So, no more Sky or Solstice? Wow. The Miata outlasts the competition yet again.
The Miata is eternal.

Brought to you by Miatas 4 Lief AKA Teh OT
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Old 04-27-2009, 05:18 PM   #11
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Miata was just as much of a ground breaker (well, not quite but close) as the Datsun Z car. Because of that it may be around for a very long time.
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Old 04-27-2009, 05:50 PM   #12
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its perplexing to me that the model they plan to build the longest is the Pontiac Vibe (Toyota Matrix rebadged).

I can't see how Buick and GMC fit the bill better than Pontiac/Saturn.
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Old 04-27-2009, 06:31 PM   #13
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Can some explain how the GM dealerships work?

I don't understand how closing dealerships will save them money. Are dealerships not separate businesses that only make money when they sell product? Or are they subsidized by GM somehow?

Or is it that the large number of dealers creates too much competition between them and they artificially lower the selling price?

Sorry if it's a noob question.
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Old 04-27-2009, 06:52 PM   #14
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Originally Posted by wobbletop View Post
Can some explain how the GM dealerships work?

I don't understand how closing dealerships will save them money. Are dealerships not separate businesses that only make money when they sell product? Or are they subsidized by GM somehow?

Or is it that the large number of dealers creates too much competition between them and they artificially lower the selling price?

Sorry if it's a noob question.
While Pontiac was the third most popular selling line in the GM family, per car they turned over the lowest profit. Doesn't make much sense to cannibalize sales from one branch that makes more per car.
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Old 04-27-2009, 07:01 PM   #15
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RIP Commodore in the U.S.
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Old 04-27-2009, 07:17 PM   #16
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its perplexing to me that the model they plan to build the longest is the Pontiac Vibe (Toyota Matrix rebadged).

I can't see how Buick and GMC fit the bill better than Pontiac/Saturn.

The pontiac Vibe is a hot selling, well made small car. Compared to all the other Pontiacs, its much more competative these days.

Also, Buick is a world brand at this point (apparently) and they would like to maintain it's prescence here in the US, because that's a huge reason why it's so popular in developing markets. I watched a story about GM in China and one Chinese customer after another said they wanted the ultra high quality and luxurious "American Buick". Believe it or not, the Chinese admire American car quality (I guess compared to the crap they get from their domestics, we're pretty good.

GMC makes more profit per vehicle sold than many other GM products including saturn and pontiac (why? I dunno, but this is the case) Their commercial division also does very well for itself.
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Old 04-27-2009, 07:22 PM   #17
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gmc makes more money because its overpriced. its a pretty, "pimped" version of a chevrolet counterpart. people with money will pay for the name and look.

im still dumbfounded by buick. buick... really? really?
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Old 04-27-2009, 07:53 PM   #18
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i still cant get over GM is getting rid of the two brands that are worth something(saturn and pontiac) and keeping the crap like GMC. just give up already GM, your time and Chrysler is over...now sell me a G8 GXP for 25K
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Old 04-27-2009, 08:13 PM   #19
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Losing G8 GXP is sad

It is going to be a collectible. Already is. The prices are going to go up fast.
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Old 04-27-2009, 08:23 PM   #20
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Losing G8 GXP is sad

It is going to be a collectible. Already is. The prices are going to go up fast.
or the value will plummet...i have been trying to locate one in 6spd in white and cannot find it. guess its not meant to be
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Old 04-27-2009, 08:32 PM   #21
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i still cant get over GM is getting rid of the two brands that are worth something(saturn and pontiac) and keeping the crap like GMC. just give up already GM, your time and Chrysler is over...now sell me a G8 GXP for 25K
Apparently they are not worth something or they would be kept. GMC makes more money than the other two by a long shot. Does this make them crap? Apparently not. Pontiac, other than fond memories of sweet cars here and there, has been a pile of crap brand for a long while now. It has fallen victim to neglect and bage engineering. I does not make money, kill it. Saturn had potential, but also stinks of neglect and rebadged chevy's. Why do people continue to say these brands are worth something when they continue to post dismal sales and largely unenthusiastic reviews of their products. Could they have been great? Probably. Could they be great in the future if kept around? Probably. But the fact remains they are taking it on the chin for GM's poor decisions for quite a while and in the dire condition of GM at the moment, tough choices must be made and the numbers don't lie. GMC > pontiac/saturn at making money. GM needs to make money right now, not hold on to fond memories of what could be.
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Old 04-27-2009, 08:39 PM   #22
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If they're keeping Buick, I'm expecting some decent changes in future Buick products, because Buick still seems too similar to Cadillac right now.
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Old 04-27-2009, 09:16 PM   #23
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or the value will plummet...i have been trying to locate one in 6spd in white and cannot find it. guess its not meant to be


If you cannot find one, it's not indicative of values plummeting. If you really want one, I'd stop being picky about the color, if I were you....
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Old 04-27-2009, 09:18 PM   #24
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Apparently they are not worth something or they would be kept. GMC makes more money than the other two by a long shot. Does this make them crap? Apparently not. Pontiac, other than fond memories of sweet cars here and there, has been a pile of crap brand for a long while now. It has fallen victim to neglect and bage engineering. I does not make money, kill it. Saturn had potential, but also stinks of neglect and rebadged chevy's. Why do people continue to say these brands are worth something when they continue to post dismal sales and largely unenthusiastic reviews of their products. Could they have been great? Probably. Could they be great in the future if kept around? Probably. But the fact remains they are taking it on the chin for GM's poor decisions for quite a while and in the dire condition of GM at the moment, tough choices must be made and the numbers don't lie. GMC > pontiac/saturn at making money. GM needs to make money right now, not hold on to fond memories of what could be.

i just think that saturn and pontiac are the better looking of the bland line up of GMs cars. and when i was over in germany i loved driving an opel around and since they are now, or were rather, imported here as saturns i thought about buying one if they ever brought the turbo astra over here. and the sky, and G8 are some of the better looking cars out now.
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Old 04-27-2009, 09:20 PM   #25
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Originally Posted by unclemat View Post


If you cannot find one, it's not indicative of values plummeting. If you really want one, I'd stop being picky about the color, if I were you....
i know thats not a reflection of value...i can do without one, would just be nice to have one.
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