What GM should do: Product focus

Big problem at GM: Lack of product focus. They do too many things without doing very well at any or many. Americans don’t need all those mediocre midsize sedans, for example. Honda and Toyota each has one midsize sedan that significantly outsells any GM competitor.

Do we need any Pontiac-Buick-GMC or Saturn dealers? GM should focus on the 2 American brands that are truly distinct from one another: Chevy and Caddy. Differences between/among brands should be significant. How different are Buick and Caddy? Chevy, Pontiac and Saturn?

First, rebadge any worthy vehicles.

Second, kill Pontiac, Buick, GMC and Saturn. Sell Hummer to Chrysler, where the trucks become part of Jeep.

Third, convert any willing dealerships into facilities that (1) service all GM brands and/or (2) sell certified, preowned GM vehicles. I’ve heard that dealers make a lot more of their profits from used cars and service, so the Pontiac-Buick-GMC dealers might welcome the opportunity to give up on new cars. Let the gov’t and GM engineer soft landings, but kill the brands as fast as possible.


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