In this morning's press conference, GM CEO Fritz Henderson said that the company doesn't anticipate building any Hummer or Saturn vehicles beyond 2009.
Sounds dire, but the situation could change in either case if new owners decide they want to contract with GM for additional production. Saturn in particular has said it will try to restart itself as an independent company and contract with GM to build the current lineup until it completes its lifecyle in two or three years.
Future owners of the Hummer brand could theoretically do the same, especially given the fact that the current Hummer models are based on GM truck platforms that aren't expected to change much in the next several years.
flicmod says:
08:28 AM, 04/27/09
I don't see how new owners of Saturn buying the same products from GM will result in a successful business... unless they slash the number of dealers that are out there, and drastically drop the sales volume estimates. Otherwise, it'll be the same business model, only under a different name and ownership that's trying to sell the same number of cars from the same number of dealers.
If it's setup like this, failure is the only conclusion.
brn says:
08:29 AM, 04/27/09
Holy crap!
brn says:
08:41 AM, 04/27/09
Ok, now that I picked myself up off the floor.
flicmod, the number of dealers are going to drop dramatically. I'd expect to see at least a 50% reduction in Saturn dealers and an 80% reduction in Hummer dealers.
A move like this, makes it easy for the reduction to happen. It suddenly becomes not GM's problem.
Even when times were good, I never understood all the stand-alone Hummer dealers. They could never expect any kind of reasonable volume with a specialty vehicle.
flicmod says:
09:00 AM, 04/27/09
"A move like this, makes it easy for the reduction to happen. It suddenly becomes not GM's problem."
Even though it's not GM's problem anymore, it doesn't make a viable solution for a new owner to start a new business. The business model that seems to be put forth doesn't make sense if the demand for such a car company isn't there. Especially if the new company is still going to be selling the same products as before. The only way I see this venture being successful is if the estimated sales volume is cut by at LEAST half of what it is now. Otherwise, this doesn't seem like it'll last more than a few years.
brn says:
09:38 AM, 04/27/09
I don't think Saturn's plan is to sell the same products as before. They're definitely considering sourcing from other manufacturers.
I think we're also on the same page about volume. No matter where they source from, Saturn is going to close a lot of stores.
Hummer is just weird. It never should have stayed specialty and never gone mainstream.
firstwagon says:
10:48 AM, 04/27/09
Hummer really died with the H1. The H2 and H3 were just a look and image tacked on the other trucks.
Without something to back up the image, I didn't see it lasting long.
The same thing would happen if Jeep stopped building the Wrangler.
estreka says:
10:50 AM, 04/27/09
The folks interested in Saturn have stated that they wish to contract with GM to provide the necessary equipment to finish out the remainder of the current models' lifecycles. In other words, they won't change the current lineup for another 2-3 years. After that, who knows.
All of this could have been done in a far simpler manner if GM had just declared bankruptcy.
I'm not sure if you saw, but GM has officially axed Pontiac (after 2010) and they are trying to provide bondholders with shares of stock in an effort to eliminate $24B of debt (out of $27B). The crazy thing is that the stock will be worthless if they declare bankruptcy.
flicmod says:
10:50 AM, 04/27/09
Agreed about Hummer. I'm surprised it lasted this long.
I was under the impression that Saturn would continue buying solely from GM. I don't know why I thought that. If they would sell from multiple manufacturer's, I see it as more viable. It'd be a great way to get some foreign brands into the States. I'm sure Tata and some of the Chinese companies would be willing to get a handle on that. Not to mention Fiat if Chrysler LLC goes under.
flicmod says:
10:55 AM, 04/27/09
"All of this could have been done in a far simpler manner if GM had just declared bankruptcy."
Amen.
bayoujay says:
02:29 PM, 04/27/09
Question: Are there people out there who are just DYING to get into a Saturn? Sadly, I don't think so and if it wouldn't have the backing of a giant like GM, I think even fewer people would go with a company on such shaky ground. IMHO it's not a company worth preserving, despite the noble intentions that the company once stood for.
stephen987 says:
04:37 PM, 04/27/09
I think the most viable solution I've seen has GM spinning Opel/Vauxhall off as a separate company, and Saturn becoming a US distribution arm for that new company. The question would remain: are the products compelling enough to maintain, say, a VW-level sales volume?
Perhaps the same could've been done with Holden/Pontiac, if The General hadn't already flushed the credibility of the brand by announcing its official demise.
corvairguy says:
06:36 PM, 04/27/09
So much for 2012. I cannot see anyone operating Saturn, sourcing the same cars from GM, and being successful. The one unique Opel product Saturn sells, the Astra, is a still. They didn't even have a 2009 model because dealers are still trying to sell the 2008 models. The other 'unique' product was the Vue, but the 2010 Chevy Equinox will take care of that.
Maybe the answer for Saturn is to import cars from China or India. I'm sure there are some people who would purchase them, but I won't be one of them. Better get that Saturn Sky while you can.
corvairguy says:
06:40 PM, 04/27/09
Oops, I ment to say that the Astra was a stiff. Should have imported the Corsa instead of the Astra. Make my Sky Forest Green with tan interior.
arkitect says:
06:45 PM, 04/27/09
Does anyone think that GM is making a good decision by keeping Cadillac and Buick which could be consolidated into just cadillac while killing brands that can't be. Saturn won't combine with pontiac or saab. They should kill buick and not get rid of saab. Saab could retain the eco friendliness of saturn and the sportiness. of pontiac. What other division can do that. Also why is gmc being kept around when all the cars in that lineup are just rebadged chevies. GM needs to rethink which brands to cut.
uh2l says:
08:28 AM, 04/28/09
GM would have worked out better if they kept Chevy, Cadillac, and a fully supported Saturn, but they starved Saturn of product first and then starved them of advertising after the product came in. I think if the Opels become Buicks, it could work, but consumers will have to get past the idea that they are for old people.
All my favorite GM brands or ones that I've owned are going, gone or to be sold. Olds, Pontiac, Saab, Saturn. It's really sad how the brands were squandered.
UH2L.com
estreka says:
10:15 AM, 04/28/09
The Baby Boomers are starting to retire. This is the moment Buick has waited for all its life. Retirees are the fastest growing demographic by far.
firstwagon says:
10:54 AM, 04/28/09
But I don't think the baby boomers look at Buick the same way their parents did.
In the same way GM failed to make Pontiac the "Excitement" division in the eyes of the consumer they have also failed to make Buick a "Premium" division.
My dad looked at Buicks as upscale cars that you bought when you were secure financially and wanted to move up from your Chevy.
From the Boomers I know, they don't see Buick as anything special and I don't think GM has any Buick models coming up that will change their minds.