The reality of the demise of some long-standing brands is becoming more apparent.
As part of its attempt to secure government bailout funds, General Motors.said Tuesday that it would phase out its Saturn brand by 2012, and dismantle Pontiac as a separate division, but keep it as a “focused brand” with fewer models.
It has previously announced that it would try to sell Hummer and Saab.
This leaves GM focused on four brands: Chevrolet, Cadillac, Buick and GMC.
It is the final nail in a company strategy of expansion and market coverage who's time has past.
From The New York Times:
“A volume brand and a premium brand can get the job done. Toyota has proven that,” said Karl Brauer, editor in chief of Edmunds.com, a Web site that offers car-buying advice. “Cadillac, Chevy, done.”
The more brands a carmaker has, the more it must spread money around to develop vehicles and market them.
As a result, “every brand suffers,” said A. Andrew Shapiro, a managing partner with the Casesa Shapiro Group. “No particular brand or brands can achieve the share of voice that they need.”
Its extensive brand lineup has long been G.M.’s primary weapon. Founded in 1908 by William C. Durant, who brought together a collection of car companies, G.M. made the concept of “a car for every purse and purpose” its strategy during the 1920s for retaining buyers from their first car to their last.
The more brands a carmaker has, the more it must spread money around to develop vehicles and market them.
As a result, “every brand suffers,” said A. Andrew Shapiro, a managing partner with the Casesa Shapiro Group. “No particular brand or brands can achieve the share of voice that they need.”
Its extensive brand lineup has long been G.M.’s primary weapon. Founded in 1908 by William C. Durant, who brought together a collection of car companies, G.M. made the concept of “a car for every purse and purpose” its strategy during the 1920s for retaining buyers from their first car to their last.
