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esanchez
Administrator
| Posts: 1193
| Joined: 07/06
Posted: 12/02/08 03:47 PM
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In the midst of one of the worst automotive markets in history, GM is faced with some tough decisions of possibly selling, killing or consolidating some of its brands. Some have suggested that GM kill off the GMC brand, since there is a lot of model overlap with Chevy trucks. Do you think GM should do it? Even if you personally don't want to see GMC go, can you understand the business rationale?
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Posted: 12/04/08 01:31 PM
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To be honest there is no point of keeping GMC alive for much longer. The only good thing I see in the brand is the GMC Yukon, which is another version of the tahoe. GMC trucks, or another version of the Silverado, are that same thing and GM should save as much money as possible, being that they need 4 billion to actually make it to next year.
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ekimball
New User
| Posts: 15
| Joined: 05/07
Posted: 12/04/08 01:31 PM
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I think that consolidating the brands for the domestic automakers could be a good thing. When a brand stops being relevant they need to be axed. Look at Oldsmobile and Plymouth, I mean does anyone really miss them?
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esanchez
Administrator
| Posts: 1193
| Joined: 07/06
Posted: 12/04/08 02:40 PM
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Well, there are the fringe oddball enthusiasts that have a thing for Olds and Plymouth, but by-and-large, not really.
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Brandan
Moderator
| Posts: 94
| Joined: 11/06
Posted: 12/04/08 04:17 PM
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Lots of people miss Oldsmobile, and GM misses those customers. GM assumed they could steer those customers into Buicks or Saturns, but most of them bought from a competitor. It wasn't cheap for GM to kill Olds because they had to compensate the dealers, and of course GM's huge dealer network is still too big. Back to GMC, yes, they are all platform mates from other GM brands, but they sell. Would it be worth GM to spend billions of dollars to kill GMC when what they're doing now nets them a couple hundred thousand sales every year? If making dies to build unique Sierra hoods, beds, fenders, and bumpers costs billions of dollars and marketing GMC costs hundreds of millions then maybe it would be worth it to kill the brand if sales get to be that bad, but right now I'm not so sure. I just don't think that every consumer who opts to buy a GMC would automatically line up for a Chevy if the GMC counterpart was no more. In football there's a saying, "never take points off the board." GMC has the customers, and yes, those customers are dwindling, as they are all across the automotive market, but if they kill the brand they may or may not get them back.
Feature Editor-Truckin' Magazine
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esanchez
Administrator
| Posts: 1193
| Joined: 07/06
Posted: 12/04/08 04:27 PM
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Well, I think the bigger discussion is about retail outlet consolidation. Much like how Ford is rapidly consolidating into three-brand Ford/Lincoln/Mercury stores, and Chrysler into Chrysler/Jeep/Dodge stores.
I think there could be a place for GMC in the "new GM" scenario, but obviously not as a stand-alone entity.
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