Friday, August 21, 2009

GM Returns to Form: Too Many Models at Too Many Pricepoints


Great article at AdAge:

Between now and 2011, GM will launch an astounding 25 models, according to CEO Fritz Henderson: 10 for Chevrolet, five for Cadillac and 10 for Buick-GMC.

"The problem isn't that 34 is too many models; it's the number of distinctive models," said Maryann Keller, an auto consultant who has authored two books on the company. "It just feels like the same old GM." She noted that several models under each of GM's brands are butting heads with similar models at sibling brands. For example, the new Chevrolet Traverse is up against its sibling at Buick, the Enclave, and GMC's Acadia. "The problem is they overlap and compete for the same buyer."


Exactly. It's not coincidence that it was most profitable when it was focused - when a Cadillac was a Cadillac and a Chevy was a Chevy. They were created for a very distinct buyer. All the auto makers have fallen into the trap of trying to be everything to everyone.

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