General Motors Corp. (GM) has a lot of tough decisions to make as they struggle to stay solvent, now they are looking at dropping a number of its models, such as Hummer, Saab and Saturn in favor of keeping hold of its 106-year-old luxury brand, Buick. GM is also considering offloading Pontiac and GMC as well.
General Motors are now thinking of making a Buick version of Saturn’s Vue SUV, the Buick Regal that is made by GM’s Opel unit in Europe could be coming to the U.S., this is according to reports by Bloomberg. GM are walking a fine line here, Alan Baum, director of automotive forecasting for Planning Edge in Birmingham, Michigan has been quoted as saying “The more brands you cut, the more market share you lose. GM is going to get smaller.”
GM’s decision to cut a number of its brands in favor of the Buick is a good one as they still need to keep some luxury. Offloading Saab and Saturn is something that the largest U.S. automaker has to do. As for the Hummer, this vehicle does not fit into the plans of automakers vision for the future.
Carmakers have to understand that consumers are now looking for vehicles that offer them more fuel-efficiency, and the Hummer is never going to be able to do that.
