GM Leaner and Meaner, but Not by Much
General Motors Co. doesn't appear to be learning from its mistakes: The trimmed-down, "new" GM still looks a lot like the old one, with too many vehicle brands and too many overlapping U.S. models.
Between now and 2011, GM will launch an astounding 25 models, according to CEO Fritz Henderson: 10 for Chevrolet, five for Cadillac and 10 for Buick-GMC. What's more, the automaker sees itself as making good on its promise to become leaner and meaner by reducing the total number of models it sells by the end of 2010 from 48 to 34 -- still a stunning figure, considering the lumbering giant's inability to carve out a real identity for each with product and create marketing that truly sets them apart.
"The problem isn't that 34 is too many models; it's the number of distinctive models," said Maryann Keller, an auto consultant who has authored two books on the company. "It just feels like the same old GM." She noted that several models under each of GM's brands are butting heads with similar models at sibling brands. For example, the new Chevrolet Traverse is up against its sibling at Buick, the Enclave, and GMC's Acadia. "The problem is they overlap and compete for the same buyer."
GM did shed four of its eight brands, leaving behind Hummer, Pontiac, Saab and Saturn, but even so, the automaker does not have enough time or money to transform the remaining quartet into distinctive brands. And Susan Jacobs, president of Jacobs & Associates, said even four is too many. She, along with two other experts queried by Ad Age, maintains that the automaker should operate with just two: Chevrolet as its mass-market marque and Cadillac its luxury marque.
GM Leaner and Meaner, but Not by Much - Advertising Age - News
Between now and 2011, GM will launch an astounding 25 models, according to CEO Fritz Henderson: 10 for Chevrolet, five for Cadillac and 10 for Buick-GMC. What's more, the automaker sees itself as making good on its promise to become leaner and meaner by reducing the total number of models it sells by the end of 2010 from 48 to 34 -- still a stunning figure, considering the lumbering giant's inability to carve out a real identity for each with product and create marketing that truly sets them apart.
"The problem isn't that 34 is too many models; it's the number of distinctive models," said Maryann Keller, an auto consultant who has authored two books on the company. "It just feels like the same old GM." She noted that several models under each of GM's brands are butting heads with similar models at sibling brands. For example, the new Chevrolet Traverse is up against its sibling at Buick, the Enclave, and GMC's Acadia. "The problem is they overlap and compete for the same buyer."
GM did shed four of its eight brands, leaving behind Hummer, Pontiac, Saab and Saturn, but even so, the automaker does not have enough time or money to transform the remaining quartet into distinctive brands. And Susan Jacobs, president of Jacobs & Associates, said even four is too many. She, along with two other experts queried by Ad Age, maintains that the automaker should operate with just two: Chevrolet as its mass-market marque and Cadillac its luxury marque.
GM Leaner and Meaner, but Not by Much - Advertising Age - News
