commentary by Michael L. Bromley
copyright 2005

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... of Automobiles

Mar 29/05: More Detroit Layoffs

GM Says It May Kill Off One of Its Brands
General Motors Corp., which issued a shock profit warning last week and has been losing market share, may phase out one of its weaker car brands if sales fail to meet projections, company Vice Chairman Bob Lutz said on Wednesday.

GM's Buick and Pontiac are both "damaged brands" due to lack of investment over the years, and GM is working to correct that with an array of new vehicles coming to market, Lutz told a Morgan Stanley automotive conference in New York. But if some of its brands fail to meet sales projections, "then we would have to take a look at a phase-out. I hope we don't have to do that. What we've got to do is keep the brands we've got."

and...

Ford to end T-Bird production -- for now
Ford Motor Co. announced recently that it would end production of the Thunderbird roadster by this summer and temporarily lay off up to 200 workers. The move raises more questions about the future of an assembly plant in Wixom, Mich., and shelves -- at least for now -- an iconic nameplate.

"We promised all along that this Thunderbird would have a limited production run, and we're being true to our word," Ford Division President Steve Lyons said. "Thunderbird was a terrific image builder for the Ford-brand showroom at a time when we needed it."

Now, the company has other vehicles to do the job, he said. While the current Thunderbird is going away, Ford is not ruling out the possibility of using the name on another car down the road.

I suppose the corollary to not fixing what ain't broke would be to break what's not fixed. In the case of the Ford Thunderbird (a creation of Ralph Nader? see this Graphic of the Week) there's more than just a little reason for abandonment. Judge and jury would understand. Really. But all of Buick, too?

At GM the question isn't which brand to drop, but which one to keep. They ought to wrap all the SUVs into one logo, GM BIG, and, with the exception of Cadillac and the Chevrolet Corvette (perhaps under the logo, GM Still Breathing), all the larger passenger cars into another, GM Dead, Then, they should throw all the imports and fake-cars into GM Made in Korea. That would mean, of course, admitting that Saturn ought really be made in Korea. It'll happen on its own, regardless.

The real question here is what would it take to revive Buick or Pontiac -- or, even, dig up Oldsmobile. It's a goddamn shame they let Olds sink, for it merely suffered on behalf of Buick and Pontiac. Who could tell the difference between any of them, anyway? Sure, Buick has been distinguishing itself of late, but who's noticed? The only reason Ford hasn't dropped Ford is because that's all it's got. Mercury? Lincoln? They might as well be Buick or Pontiac.

It's gonna be a long road back for Detroit.

Here for the great automotive observer, Jerry Flint of Forbes on this: GM: It's Worse Than You Thought.

I think I should be sad. I'm just not sure I am.
 

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