GM to cut back on variety

Facing its worst financial outlook in more than a decade, General Motors has outlined a new product development and sales strategy, saying t...

Facing its worst financial outlook in more than a decade, General Motors has outlined a new product development and sales strategy, saying that from now on Chevrolet and Cadillac would be the company’s only brands to offer a full lineup of vehicles.

That means GM’s other six brands marketed in the US will focus on a narrower selection of segments. GMC and Hummer will continue to sell trucks while Pontiac, Saab and Saturn will focus mostly on cars and smaller SUV’s, with Buick offering some of both.

The plan indicates that GM is trying to wean itself from what has been a highly criticised product development strategy of keeping costs down by developing the same basic vehicle for many of its brands. It will also probably mean consolidation of the company’s more than 7,000 dealers.

“GMC, Pontiac, Buick, Saturn, Saab and Hummer can offer vehicles that are very specific rather than shipping millions of identical vehicles all over the world,” said Mark LaNeve, GM’s new marketing chief, according to a transcript of a speech he gave on Thursday in New York. “Our complementary brands won’t succeed as ’Little Chevrolets’ or less-expensive Cadillacs. They have to be distinctive, differentiated products.” — NYT