GM desperately wants an invite to the bailout party — and has submitted a request for $12 billion dollars. In return, GM will attempt to return to profitability by “explor[ing] alternatives for the Saturn brand,” as well as cutting “product offerings” at Pontiac.
From their press release:
In the U.S., GM will focus its product development and marketing efforts on four core brands – Chevrolet, Cadillac, Buick and GMC. Pontiac will be a specialty brand with reduced product offerings within the Buick-Pontiac-GMC channel. Hummer has recently been put under strategic review, which includes the possible sale of the brand, and GM will immediately undertake a global strategic review of the Saab brand. As part of the plan, the company also will accelerate discussions with the Saturn retailers, consistent with their unique relationship, to explore alternatives for the Saturn brand.
GM Sends Congress Plan Asking For $12 To $18 Billion, “Alternatives” For Saturn Brand [Jalopnik]
(Photo: Computermachina )
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I have owned Saturns for the past 8 years. My First was a used SL I paid less than 8k for.. it was 3 years old and had 17k on it. I drove the car for 4 years and the only thing I put in it was a clutch at 150k and normal maintenance. The service, the sales and the overall experience with the first car was amazing, prompting me to buy my Brand new VUE. Everything was excellent for the first 60k from 60k to the present 120k I have spent nearly 6k in repairs and the Suv is worth less than I owe. Service has been abysmal so much so that, I was refused entry to fix a problem that they denied existed, only to drive to another dealership to find that not only did one wheel bearing need replacement but both front. I attempted to get some restistution from Saturn and I was told it was a purchasing dealer problem and I was sent on my merry way. Saturn is nothing more than GM’s attempt to corner the Foreign Car buyer market.. and is no longer a warm fuzzy name plate.
Spring Hill doesnt hold BBQ’s and they dont build Saturns… they build the Enclave/Traverse/Outlook. So sad.. Time to buy a Toyota. a Honda… hell even a Suzuki
considering options for saturn sounds like they want to sell it, if they were to stop making saturns i’d probably cry as a saturn owner.
I am in europe right now and they need to come here to see cars. They are smaller fuel efficient and drive just awesome. I drove in a Renault clio taxi cab with about 120.000km on board and the ride was superb. My us focus with 66k had its shocks changed 2 times and the car still has a check engine light on.
They’ve done a nice job of flushing Saab down the toilet. Nice work, GM.
The Saab is the safest car they make, and if they brought over the 1.9TDI, and Flex versions they have EVERYWHERE but the US they’d also be getting ~50mpg!
A safe, fuel efficient car that doesn’t look like straight crap?! Wow what a concept! Bring over the TDI!!!
Heard this on the radio…
Why don’t the big 3 go begging the countries they moved a bunch of the jobs to for the money. Go beg Mexico and the like, see how much you get.
Works for me, Saturn is the last US branded car I’d consider buying. They shut that down and I’m done with American cars altogether.
When are we going to stop pretending that our economy is based on the principles of free-market capitalism?
I would not mind seeing the Big Three going bankrupt… Seriously, a lot more car companies have gone out of business than the ones STILL in business.
My worries are for the tangential and collateral damage. Supply chain/Parts companies/Tool+Die Makers all will failb if the Big Three go down. Not to mention all those restaurants and services from the local economies that thrive the Big Three’s plants and offices physically being there.
Here’s my take:
For the life of me, I can not figure out why Chrysler/Dodge is still in business? Really, the only cars I’d buy from them would be a Mini-Van, a Challenger or a Magnum and possibly Ram Truck. That’s it… Everything is else is superfluous.
Ford/Lincoln+Mercury: pretty decent shape as far as I am concerned. I’d wish they’d keep the full 34% stake in Mazda- but, oh well… Keep Lincoln– they do make a lot of good stuff. Drop all Mercury, except for the Grand Marquis. Ford get rid of Taurus/500 now. The Fusion is a better car. Get out of minivans now. Keep truck line. Develop better cars.
GM: This is easy. Either go bankrupt or drop 80% of all lines. I’d like to see something like this– a GM brand side branded with car companies. Take the best from each line… For Chevy: Corvette, Camaro, Malibu, Volt and an econo-car and ALL trucks. Kill all Buick except for high-end SUV like Lucerne… I’d like to see Pontiac and Saturn combine. Both those companies seem to take the Euro and Down-Under GM stuff anyways… Kill GMC– roll all trucks into Chevy. Ford does not have a ‘professional’ company for their largest trucks… Why should you?
All American companies should get rid all redundancy. The whole rebadging and let’s add some chrome accents and it’s a Mercury days are over. Just make a slightly nice appointed Ford Fusion. Don’t make a Cavalier into a Cadillac. All that does is dilute your brand. Make them distinct and smaller. Don’t get people confused. Like, I want a sports car. Do I want a Camaro or a Fire Chicken? No, they are the same car. I am so confused maybe I’ll buy that Stang that just blew by. Or perhaps a Supra… (I know the refs may be dated, but you know what I mean.)
I remember… and this dates me. I went roller-skating with my mom’s friend, and she pulled up in a Pontiac J1000. That’s a Chevy Chevette for you youngins… My dad had a Chevy Chevette, and I was like why did this chick buy a Pontiac instead of a Chevy…? They like the little badge so much?
At least Ford and GM seem to have some sort of real plan (whether it would actually work remains to be seen). Chrysler is totally clueless. Lately they’ve been pumping free in-car DVD players on some of their models. They really don’t get it, do they? People aren’t flocking to the foreign autos for heated cup-holders, refrigerated glove boxes, free DVD players, “sto-n-go” and the like. Who cares if I can keep my coffee hot, if my car guzzles gas and is a piece of junk?
If you want to save the American auto industry, go back in time 50 years and convince the Big 3 to get their heads out of their asses and listen to what the man (W. Edwards Deming) was talking about.
Instead they laughed him all the way to Japan, where the manufacturers ate up his statistical approach to quality. Anybody here old enough to remember when ‘Made in Japan’ meant ‘Made like Crap’? The adoption of Deming’s/Taylor’s scientific statistical manufacturing process control is directly responsible for the ascension of the Japanese automobile and electronics manufacturing industries. If you want to know why the Big 3 failed, well, there you go.
This hasn’t been pointed out so I figure it is worth mentioning.
Health care is at the core of this problem and let me explain why.
When the unions come to the table with these automakers, they are asking for health care benefits for themselves and their families that far outweigh the value of what other manufacturers (who don’t employ union workers, ie Toyota, Honda) are having to pay out of pocket.
For this reason, I strongly believe that you save the Big 3, or at least the more competent Ford and GM, by putting into place an affordable health care system. This way, unions can focus on retention of strong workers, the automakers can stay in the black and the focus will be on development instead of just keeping their heads above water.
Customer support is even more important than quality and price.
My sons first car was a 1993 dodge Shadow. Very soon paint chips started. The dealer said it was stone chips and not covered under warranty. he later found out that this was a paint problem and they knew about it 5 years before. The rest of the car was fantastic, but w/ lousy dealer support, he never looked at a chrysler product again.
I can help but try to think of the last time I saw a new Buick driving on the road. It has been a while.
Hey government I’ll offer you a better deal! If you give me only $2 million, I’ll explore alternatives for my home appliances and cut my product offerings on ebay. That’s pretty much the same deal GM is giving you right?
Saab used to be known as quirky cars from Sweden that needed a special someone to enjoy them. Now, like their cousins, Volvo (a divison of Ford), they are suffering the ultra-vanilla redux that comes with the GM touch. I say, set Saab free, and return to the ultra quirky, ultra cool cars they once were (way before the stupic 9-7/Chevy TrailBlazer came out of the garage).