📰 Auto News Will Consumers Miss the Old GM? Not Likely

[Bru]

Note the headline is "Consumers," not enthusiasts.

http://blogs.cars.com/kickingtires/2009/06/will-consumers-miss-the-old-gm-not-likely-.html

There’s been a lot of talk about “good GM” and “bad GM” and what the closure of Pontiac and sale of Saturn, Saab and Hummer will mean to the new company. We thought we’d recap the impact GM’s restructuring will have on car shoppers.

General Motors remains the largest producer and seller of cars and trucks in the United States, already selling 777,785 vehicles this year, through May.

Nearly one of every five cars purchased in the U.S. comes from GM through the Chevrolet, Buick, GMC, Cadillac, Saab, Saturn, Hummer and Pontiac brands.

Pontiac will be shut down completely by the end of 2010, with Saab, Saturn and Hummer expected to be sold off.

Those four brands combined have 18 nameplates on sale. Together, those models comprised 2.4% of the new-car market in April. That’s a drop of about 1% from the same time last year (3.6%).

Which is to say that consumers won’t exactly miss these brands, which is part of the reason why GM and President Barack Obama’s auto task force decided to cut them.

In their wake, GM could pick up market share with Chevrolet, which had a 14% share in April -- up from 12.5% last year.

Chevy was the second best-selling brand in April, just behind Ford and just ahead of Toyota. Buick, GMC and Cadillac saw market share hold steady.

Consumers are also buying more Hondas, Hyundais, Kias, Volkswagens and BMWs as a percentage of the market.

According to The Economist, U.S. capacity to build cars still exceeds demand by around 7 million vehicles. So if you’re worried that prices will increase after a GM downsizing, that fear is unfounded.

The bottom line is, consumers will have fewer individual models to chose from in the short term, though you should still be able to find the car you want at the price you’re looking for.

If you had your heart set on a Saturn Aura or a Pontiac G8, they are still on sale with full warranties that are backed by the government, and they will be serviced at other GM dealers.

Looking at these numbers, it seems the Old GM will likely fade away like Oldsmobiles of the past. What’s still unknown is whether the New GM will pick up the lost market share.

Market share of endangered car brands (April 2009)

* Pontiac = 1.3%
* Saturn = 0.9%
* Hummer = 0.1%
* Saab = 0.1%

Market share of five largest brands (April 2009)

* Ford = 14.1%
* Chevrolet = 14%
* Toyota = 13.2%
* Honda = 11.2%
* Dodge = 5.3%

*All market share and sales numbers come from Automotive News.

Click to read more...

 

[EmersonHart13]

Market share of endangered car brands (April 2009)

* Pontiac = 1.3%
* Saturn = 0.9%
* Hummer = 0.1%
* Saab = 0.1%

Wow, Pontiac was LOW last month...... Although I know it is dropping because they are killing it off.

 

[Oreif]

Market share of endangered car brands (April 2009)

* Pontiac = 1.3%
* Saturn = 0.9%
* Hummer = 0.1%
* Saab = 0.1%

Wow, Pontiac was LOW last month...... Although I know it is dropping because they are killing it off.

Too bad they don't show Cadillac and Buick market shares. They are lower than Pontiac's.

Chevy = 6.9%
GMC = 3.0%
Buick = 1.1%
Cadillac = 0.6%

 

[radioguy6]

Too bad they don't show Cadillac and Buick market shares. They are lower than Pontiac's.

Chevy = 6.9%
GMC = 3.0%
Buick = 1.1%
Cadillac = 0.6%

yeah they have more market share but Cadillac and Buick are more profitable per car than Pontiac is. One of the main reasons why Pontiac is being terminated.

 

[firemandan1700]

Fuck that. I would have kept pontiac! Didnt they outsell both Cadilliac and Buick last year?

Chevy better have some nice rwd platform other than the camaro since they killed off the only other gm rwd platform, the g8.

Bastards lol

 

[Angus]

I would bet they keep the G8 and make it either a new caprice like in the middle east or the PA like in China

 

[Oreif]

yeah they have more market share but Cadillac and Buick are more profitable per car than Pontiac is. One of the main reasons why Pontiac is being terminated.

Well if GM would have kept Pontiac as the "Performance" division that made it famous, They would have made a lot of profit. Only having 1 or 2 vehicles that were built with the Pontiac heritage in mind and the rest being re-badged Chevy's ruined that.

Look at Cadillac. They were pushing a Cavilier baged as a Cimmeron, a Regal as a Catera and doing very poorly. At one point Cadillac had the least market share of all GM cars. They then decided to make Cadillac the ultra-luxury and unique. Within a few years Cadillac's were popular again. What they should have done was re-structured Pontiac back then as well. They did not and thus here we are seeing Pontiac getting cancelled.

The entire mess is because GM lost it's focus and reasons for having the different brands. They got way too immersed into the "Clone Wars" between the divisons and hurt themselves.

 

[skeezer]

Dear ry@n,

First off, I'd like to thank you for being a GM customer. Your current and future business means a lot to us. Given all of the recent media coverage about GM, I am writing you today to address some questions you may have, and to assure you that we are here to stay and ready to serve you.

As you may know, GM is using an expedited, court-supervised process to accelerate the reinvention of our company. At the core of that reinvention is a commitment that we will put the customer first in all that we do — starting with great cars, trucks and crossovers, and the best sales and service experience possible. We want to earn your trust in several ways, including:

Your GM Warranty — Rest assured, we will honor the warranty commitment given to you at the time of your purchase. Our GM Dealers are very much open for business, and ready to meet your sales and service needs. And even though we are seeking buyers for our Saturn and Saab brands, have just announced the selection of a buyer for the HUMMER brand, and have decided to eventually phase out Pontiac, those dealerships also remain open and ready for service. The bottom line is your warranty will be honored and service will always be available through authorized GM retail facilities by GM-trained Goodwrench experts, with Genuine GM Parts on hand.

Your Next GM Vehicle — At this, the most important moment in the history of our company, our dedication to high-quality, fuel-efficient and outstanding-value vehicles has never been greater. As I said before, our GM dealerships are very much open for business, and banks and credit unions are lending and continue to offer some of the best rates available to qualified buyers. To find information about GM dealerships in your area, please visit GM.com/vehicles/dealer.

Your General Motors — For over 100 years, GM has fueled America's passion for the automobile. Propelled by the spirit and commitment of our people, we will become the New GM, a company that makes Americans proud, and one that can compete successfully with anyone in the world. All of us at GM are confident that we will emerge a leaner, stronger company for you, offering the most compelling vehicles possible from our Chevrolet, Buick, GMC and Cadillac brands. I invite you to stay up to date on our promising new future by visiting GMreinvention.com.

As I said at the outset, we are genuinely grateful for your business, and we hope that you'll stay with us. If you are considering buying a new vehicle, please review a special offer for our owners. Then, visit GM.com/owner to see how this can be combined with other current incentives — it's our way of saying "Thank You" for your ongoing support.

Sincerely,

Troy A. Clarke
Group Vice President

Thanks Troy. You asshat.

 

[EmersonHart13]

Yup it all comes down to profit. Buick makes money in China so it isn't going anywhere but if it was me I would have killed that. Also I don't really get GMC as GMC and Chevy sell the same thing...

 

[andcbii]

i'm still sad to see Pontiac go...

 

[firemandan1700]

The reason why cadilliac is more profitable is because you pay 40k for a 20k car

just lame. What ever happened to 'make what the consumer wants'