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DEC 2008

Big Three May Need to Trim Number of Brands

New York Times, December 2, 2008 — For the Big Three automakers to win over Washington lawmakers in their bid for federal aid, they will have to address a critical question in the business plans they give to Congress on Tuesday. Just how serious are they about shrinking their vast lineups of different brands and models to match the current harsh reality of the market?

Category: Brand
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NOV 2008

GM Pondering Brand Cuts

BusinessWeek, November 28, 2008 — The Detroit Free Press reported today that General Motors, in its attempt to put forth a workable restructuring plan to keep it from going bankrupt, is looking at killing off three brands—Pontiac, Saab and Hummer.

Everyone knows that GM is over-branded. The problem has long been that the company does not want to have to pay dealers to fold the brands it does not need as it did with Oldsmobile in 2001. State franchise laws prevent a car company from simply ending a brand. Closing down Oldsmobile cost the company around $2 billion.

It’s unclear how GM could avoid paying big money to shutter the three brands.

Categories: Brand, Marketing
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JUN 2007

Test-Driving Your Saab

European Car Makers Sweeten Vacation Deals For U.S. Drivers who Travel Abroad to Buy

Wall Street Journal, June 12, 2007 — Europe's luxury auto makers are taking an unusual tack to lure American drivers: offering them incentives to travel abroad to buy a car and merging the experience with a high-end driving vacation. European-delivery programs, which are offered by such auto makers as BMW AG, Daimler-Benz AG's Mercedes-Benz unit, Ford Motor Co.'s Volvo unit and Porsche AG, allow U.S. customers to take ownership of a new car overseas before shipping it home.

Category: Design
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