Straightline

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Might this financial crisis force GM and Ford to finally drop brands?

Wooly Mammoth260.jpg

Everyone knows GM and Ford have too many models, too many brands, too many dealers, too many of just about everything and anything one can think of. So might this financial mess be a blessing in disguise? Might this be just the impetius for the General and Ford to do what just about everyone thinks should be done: Shed--not just some of their excess models--but instead shed some of their excess brands?

AutoObserver seems to think that this could be in the cards, as the market just can't support so many redundant brands. Put them out of their misery. Make them extinct, just like the Woolly Mammoth and countless other critters that have ceased to have a reason to exist.

At GM, Pontiac, Buick, Saturn, GMC and Saab certainly all fall into that category. Might we see a lean and mean General Motors consisting of just Chevrolet and Cadillac, with maybe leaving Buick strictly for China?

And Ford? Might this be the time to cut Mercury; and maybe even cut Lincoln loose, by replacing it with Volvo?

If GM and Ford are going to do this, now is the best time to do so.

COMMENTARY: For Bailout Blueprint, GM, Ford Might Finally Burn Rubber on Underperforming Brands

Related story here.

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8 Comments

albook says:

08:33 AM, 11/27/08

MAybe they'll finaally do what they shoud've done years ago.I'm still disapointed about what he said about Buick, though. Buick going would probably be best for Chevy, as they could truely put nice interiors into they're cars. And that aging demographhic that was buying Buick- they're buing Toyota Avalons now. Chevy competes with Toyota.I'm also sad to seePontiac go, but without the G8 and Solstice...

roar02ram says:

08:38 AM, 11/27/08

Wow - a Ford & GM with only two brands and roughly 1600 dealers apiece would be a great! And yes, kill Lincoln & keep Volvo.

dodo2 says:

09:07 AM, 11/27/08

I think Ford should sell most of Volvo to raise cash, while still keeping enough stake to have access to future technology sharing with Volvo. Similar strategy with what they already did with Mazda. They should ditch Mercury and only focus on Ford and Lincoln brands. Why do they need Mercury anyway? Mercury is an US-only brand without any identity these days (pure Ford rebadged).

huyracing says:

11:11 AM, 11/27/08

i hope they do streamline their brand. sometimes you need to clean house and throw out all the useless crap that is clogging the place up. also if they made less cars, maybe they can make them better.

Volvo and Saab are unique entities with cult followings though... you cannot be killing them.

dodo2 says:

11:44 AM, 11/27/08

GM and Ford should sell not kill Saab and Volvo.
The rest of their irrelevant brands should be killed.

dodo2 says:

11:45 AM, 11/27/08

GM and Ford should sell not kill Saab and Volvo.
The rest of their irrelevant brands should be killed.

kcram says:

10:30 PM, 11/27/08

Bloomberg is reporting (from the infamous unnamed sources) that GM is investigating the demise of Saab, Saturn, and Pontiac as part of their turnaround plan they will present to Congress next week. They should also kill GMC... every GMC model, from the Acadia to the Sierra dually, is duplicated elsewhere in the GM lineup. Freshen the G6 as a Buick, and they'll have enough models to sell as a brand. That leaves Chevy cars and trucks, Buick, and Cadillac. As for Ford... sell Volvo (Tata seems to have cash), kill Mercury, and go with just Ford and Lincoln brands. Chrysler should continue with their original plan to reduce badge-engineering: Chrysler brand can be the 300, Sebring, and T&C... Jeep is Grand Cher, Wrangler, Liberty, Patriot... and Dodge can be small/sporty cars (Hornet, Caliber, Charger, Challenger), Caravan, Ram, and Sprinter - and as planned, they can all be sold under one roof.

ateixeira says:

10:57 AM, 12/ 1/08

Yeah, sell Volvo but keep Lincoln. Retire Mercury, at least for now.

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