Wednesday, March 23, 2005


Lutz - GM Needs To Cut A Division Or Two?

Lutz thinks that Pontiac and Buick might be on the bubble:

GM's Buick and Pontiac are both "damaged brands" due to lack of investment over the years, and GM is working to correct that with an array of new vehicles coming to market, Lutz told a Morgan Stanley automotive conference in New York.

But if some of its brands fail to meet sales projections, "then we would have to take a look at a phase-out. I hope we don't have to do that. What we've got to do is keep the brands we've got."

I say that if one brand needs to go, then it might be time to axe nearly all of them - make the cuts deep and quick, to let the healing begin. I don't think that GM can afford, literally or figuratively, to stretch this process out over a decade or more.

At most, GM needs three car divisions, and I gotta be honest - two truck brands probably aren't necessary. Keep Chevrolet and Cadillac, figure out which division is best-suited to fill the gap inbetween, and kill off the GMC SUVs (GMC should still be kept around as a work-truck brand; light trucks and full-size vans would be useful to the GMC heavy-truck dealerships out there).

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