GM Frustrates Saturn Retailers, Puts them in a Competitive Bind

[Charlie]

A new story entry has been added:

GM Frustrates Saturn Retailers, Puts them in a Competitive Bind

Two days after the Wall Street Journal reported that General Motors has been formally discouraging Saturn retailers from touting Roger Penske's planned purchase of the brand, comes word that GM has also pulled funding for a number of popular incentive programs that were previously offered by Saturn stores.

[Jaseball]

Just another reason to not buy a GM vehicle.

[Citation84]

Amen Jaseball. Their behavior during this entire BK debacle and their nihilistic treatment of Saturn since the brand was launched is enough to turn me off GM for good.
Screw what GM thinks. Pay attention to the "dead" brands you're keeping and pour yourselves a nice hot cup of STFU.

[steadler]

The question is: what's motivating them (Gm) to do so?

[Saturn#5]

Just wait until Saturn/Penske is up and running. Little does GM know that is has helped created a strong, independent competitor for itself.
GM is really showing it's real stripes on this one. Shame on them.
I don't care about hearing "it's just business. GM screwe up and Saturn will be the stronger brand because it always really was! It was not given the chance by GM.

[Citation84]

The way GM threw those dealerships to the winds with their wishy washy statements about Saturn's future, those retailers don't owe GM squat. Especially if GM thinks they're owed some sort of corporate loyalty.

And on top of it to leave them out of the promotions? GM has already cut the frigging cord, so Fritz and the rest of the gang of bumblers can go pound sand.

Sounds like the retailers that are left have a more sound business plan than Wagoner and CO. ever did, even faced with the ultimate melt down.

Hey GM: you are irrelevant. Back off. I'll buy a Samsung built Saturn before I ever buy another GM car. Arrogant *******s. Why should I pay twice, as a car buyer and a tax payer ? Thanks for giving me back that tax money in the form of a rebate to buy one of your cars. For GM and me: it's OVER. [5 ignition switches and a call to corporate is 5 too many. The self starter was invented in 1912 or so. Think you could have gotten it right by now?].

[Citation84]

Originally Posted by steadler

The question is: what's motivating them (Gm) to do so?

Entrenched corporate arrogance. They still think it's 1965 and they dictate all terms of all things: styling, engineering, sales, etc. because they have 45% of the market and own the world.

[goBoating]

Originally Posted by steadler

The question is: what's motivating them (Gm) to do so?

GM is doing exactly what should be expected of them. They have two compete concerns. 1 - They want to get the most $$$ for whatever part of Saturn they sell. 2 - They DO NOT want to setup a competent opponent.

So, GM is having to strike a balance between generating a little capital as they sell Saturn and standing up a direct competitor for Chevrolet.

It would seem to me that the second concern would dominate the first. GM will not want to compete with a healthy Penske-Saturn. Consequently, I think we should expect to watch GM hobble Saturn in every possible way while trying to leave just enough there to get a little $$$ as they liquidate.

Penske better be ready to step up.

[AJR]

Wow, what a conflict! GM will be building cars for Saturn/Penske for a while, but I guess they really don't want them to sell many or any of them? LOL! Count me in as DONE with GM forever, although I had already decided on that.

Andy

[thatjerryguy]

Originally Posted by Saturn#5

Just wait until Saturn/Penske is up and running. Little does GM know that is has helped created a strong, independent competitor for itself.

Hopefully Penske offers a full lineup of practical, efficient and most of all fun-to-drive Saturn vehicles.

[steadler]

Originally Posted by Citation84

Entrenched corporate arrogance. They still think it's 1965 and they dictate all terms of all things: styling, engineering, sales, etc. because they have 45% of the market and own the world.

I still think selling ( or closing ) Saturn is a big Gm mistake.

[buba]

Sooooooo. GM will not have new incentives on Saturn's until mid July which is the same time frame they are asking the court to exit Bankruptcy.

Are they just going to clean out 2008/2009 inventory at Roger's request so Saturn/PAG can concentrate on pushing 2010 models? I would think PAG (pending buyer) has some input on how the existing inventory is to be transitioned. Maybe the closeout deals will only be on models PAG does not want (Sky's and Astra's).

[BobbyP]

Remember my posts from several months ago that Saturn's survival was not in GM's best interest? GM has finally figured it out... It will be interesting to see how this will continue to pan out...

[Sierra185]

Hummer and Saab also lost the same incentive programs. This may have more to do with the government running the bad GM.

[DukeCitySC2]

The normal rationale for incentives is to move cars, and in particular "buy" back market share. Giving Saturn any market share now would be at the expense of the brands they are keeping, most likely. There was an excellent article on how US makers have used incentives to maintain market share at the expense of making money a week or so ago. The real problem is that GM until recently did not have Product that people wanted to buy over the competition, unless there was a big price difference.

GM has been losing money most of my lifetime, and has had more White Knights riding in to "turn things around" than I could count. I've lost interest, frankly.

[titan12]

screw EM! Those are my thoughts on GM

[l57]

I used to think that a "new GM" would be a success....not so sure anymore. As long as the executive offices are filled with the same middle management afraid of their own shadows, they're doomed. There was a very telling article about Fritz's socalled new GM, which, among other things would nolonger hold "pre-meetings" before meetings ...(imagine that !).....and how the Senior VP of Buick was now allowed to make a final decision at a product strategy session...(wow...how daring!). The last example begs the question: What the heck was she doing before this ???

Now I read where the beautiful new Regal (Insignia) won't be around showrooms for another two years !!....Does GM really think the younger buyer they want for Buick will buy the new LaCrosse for the next 2 years?...answer..NO...its too big for that demo.

GM may very well see market share decline and fall into trouble within 3 years.

[Dutchman1954]

A lot of what GM has done in the last quarter century plus is now coming back to roost. Most were straight out the textbook Wharton School of Business philosophy. Maximize profits in the least amount of time. Let the people who come after you deal with the mess you created. Instead of taking the foreign invasion seriously, they just kept building bigger and thirstier vehicles, cause" we know that the people will buy them". I really thought that with the creation of Saturn that somebody in Lansing had seen the writing on the wall. Boy was I wrong.
So when things start looking bad , what do they do? They fold Oldsmobile. Granted, by that time there wasn't much difference between an Olds and a Buick. But once again it was too little and too late. When it became apparent that the ship was sinking then they started throwing everything overboard, including the division that could have saved their butts if they had let it be what it was intended. Instead they cast Saturn adrift, dumped Ponitac and Hummer (the latter should have never been created as a commercial entity to begin with). So what's left? Chevy, Buick, Cadillac and (and this is they one I don't understand) GMC. The latter confuses me because there is no difference between a Chevy truck and a GMC truck either light or medium duty. They are , aren't they, built on the same assembly line? I would have consolidated the two brands and kept Saturn. But I guess that the good old boys wouldn't have that as they had done their best to destroy Saturn. Now it just might turn around and bite them in the perverbial behind. My first car was a 63 Pontiac, my first new car was Chevy. I had other makes, but I always came back to GM. After this debaucle, I really don't know. They need to clean house , get rid of the people that put them into this situation otherwise they are doomed. I'll just sit back and wait and see what Roger Penske does.

[Jaseball]

Any company that declares bankruptcy, wipes out the common stock holder, has not learned squat since the early 70's, needs massive amounts of tax payer bailout money, etc., doesn't deserve any sort of support from the buying public.

I too hope Penske beats the crap out of GM with a non-GM Saturn line up.

[s4turngolf3r]

This, in conclusion, sums up why I just bought a Ford. I'm 18, the cusp of Gen Y, and all of us are getting to an age where we can buy cars. We all look at the GM debaucle and how it treats its customers, and you know what we do? Say **** em, and go buy a different brand. They are a tainted product and will be for the remaining years I'm alive. Unlike you guys, whose first cars were '63 Pontiacs and the like, my first car was a Saturn SL1. Think about that, one always remembers their first car. I loved my Satty and it did its job, but I don't know if I can go back. I turned away from Saturn when I went car shopping 3 months ago; I didnt even step foot in Saturn of Chapel Hill, the dealer that treated me and my family so well. Why? Their future was uncertain and GM still owned them. I wonder if they realize how much damage they are doing in the eye of the new consumer? Failure is the destiny for GM, plain and simple.