GM dealers remain in limbo

Confusion with dealers at GM is not a good start to reinstatement. What has changed in the last year that GM now needs another 661 dealers? Why did they get rid of them in the first place? Who made the final call to ax these dealers last year?

From CNN.com:

NEW YORK (CNNMoney.com) — The 661 axed auto dealers General Motors is offering to reinstate aren’t ready to pop the champagne just yet. They’re still waiting to find out about the terms they’ll have to meet to regain their franchises.

“Initially, we were excited,” said Howard Braunstein, CEO of M&M Auto Group in Liberty, N.Y. “However, I am concerned that GM’s offer for reinstatement will mandate requirements that will be difficult or impossible for many dealers to meet, especially in the 60-day timeframe we were given.”

Read the full article here.


Photo from fOTOGLIF

  

Pontiac will be a “focused niche brand”

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The GM restructuring plan will kill off Saturn and demote Pontiac.

And on Tuesday, when General Motors asked the federal government for more bailout money, it also announced a reorganization plan that included demoting Pontiac to a “focused niche brand,” signaling that its lineup of vehicles would shrink and that it would no longer be a separate division.

To industry analysts and Pontiac’s longtime fans, the downgrade provides a case study of the product missteps that helped put G.M. in its precarious state, and a reminder of the dangers in straying from a successful formula.

“When you deviate too far from it, that’s when you run into trouble as a brand and a company,” said Jack R. Nerad, executive editorial director at Kelley Blue Book, whose 1968 Firebird made him feel “as cool as I could be.”

More than any other G.M. brand, Pontiac stood for performance, speed and sex appeal. Its crosstown rivals followed with similar muscle cars, giving Detroit bragging rights over the cars that Japanese automakers were selling based on quality and reliability.

Though still G.M.’s third-best-selling division, behind Chevrolet and GMC, Pontiac’s sales peaked in 1984, when it sold almost 850,000 vehicles, roughly four times as many as it sold last year.

G.M.’s chief executive, Rick Wagoner, said the company’s decision to concentrate primarily on Cadillac, Chevrolet, Buick and GMC left the company with a “comprehensive portfolio.”

By many accounts, Pontiac started to falter when G.M. pursued a cost-saving strategy of providing the same cars to different divisions.

No kidding. It’s stunning that GM needs an economic catastrophe to admit to obvious truths.

This is the best thing for GM, and for Pontiac. Now, they can focus on cool cars, and maybe even recapture some of the muscle car glory of the brand’s past.

  

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