[Shotimes] Re: (OT) GM may be ripe for an extreme makeover

[Ron Porter]

There was a quote in one of the recent GM articles by an analyst. I thought
in was in this print article (the online version has been trimmed from the
print version, which I threw away).

Anyway, the quote basically said: The first order of the day would be cars
that people want, not what the dealers want".

In the past, this has been the reason that Buick Pontiac and Olds got things
like minivans, as the stand-alone GM brand dealers didn't want to lose
business to their GM dealer "competitors" down the street. I had read
articles about dealers complaining about not having a full product line.
Well, that is "old-school" thinking from the days when GM had that 65%
market share.

Today's realty is that about every recent GM dealer is a combination dealer
(or whatever the correct term is) and sells a couple of different car lines.

Cadillac, although they went to high-end trucks and SUVs, seems to have a
good feel for their market and customers, as well as targeted potential
customers. The other GM brands still don't seem to "get it".

Ron Porter

-----Original Message-----
From: shotimes-admin@autox.team.net [mailto:shotimes-admin@autox.team.net]
On Behalf Of Donald Mallinson
Sent: Friday, April 29, 2005 9:28 AM
Cc: Shotimes; V8List SHO
Subject: [Shotimes] Re: (OT) GM may be ripe for an extreme makeover

Ron,

I thought this story hit on an important concept that GM (and Ford too) 
should take to heart.  It used to be that the GM concept was that Chevy 
was the entry level car and as people became more affluent they moved to 
a different brand.

What is wrong now IMO is that each brand kept fighting for a "full" 
lineup of vehicles rather than staying with their initial strength.  
Through the boom times, this was OK, but now with so much new 
competition cutting up the pie, GM and Ford (and DC will find this out 
too) need to specialize their brands. 

Buick doesn't need an entry level car, or midrange, it needs a good 
entry level luxury car.  Pontiac doesn't need big vans or even entry 
level cars, it needs sporty cars, no trucks.  Chevy needs great entry 
level product.  Cadillac is the shining star with vastly improved world 
level product throughout the line now, and they need to keep pushing 
hard to keep up and get past the competition.  The other brands should 
drop a bunch of vehicles that just compete with themselves.  And maybe 
it is time to either drop GMC or make it the ONLY GM brand with trucks, 
and make them spectacular.

As all the European and oriental makes become wallowing full-line 
makers, they might start having some of the problems that have caught up 
American makers.  They are trying to be everything. I know that a LOT of 
Porsche people just went ballistic when Porsche announced an SUV of all 
things.  Now there is talk of a four-door Porsche?

BMW was luxury, but they now want entry level and are trying to be all 
things with SUV's, and can a pickup be far behind?  Honda now is getting 
into trucks.  Might they be smarter to stick with being the smart sedan 
people?   Many wonder where in the heck Mercedes is headed.

Maybe GM and Ford can streamline, specialize and become leaner and take 
back the market.....or not.  It would be nice though.

Don Mallinson



Ron Porter wrote:

>Here's an article from the front page of the Money section in today's USA
>Today (the Cover Story). The online story is not as visually strong as the
>print version, but the two links within this link:
>
>http://tinyurl.com/bghco
>
>See also the "damaged goods and "inventory" links.
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