Back to the bad ways

[stovt001]

My biggest hope as GM approaches bankruptcy is that they will use it to fix the mistakes made over the years. Building high-quality, competitive, unique vehicles and little brand overlap are two corrections that should be made. Unfortunately, if an editorial in the issue of Motor Trend I just got in the mail is correct, it looks like GM is fully embracing all the bad ideas that got them into this mess in the first place.

Angus Mackenzie wrote a very good article lamenting the timing of this crisis, hitting just as Detroit delivered not only the best cars it has built in decades, but some of the best cars on the market, period. However, he notes that as financial pressures rise, the penny-pinchers are back in power pulling out quality and value in favor of a very short term gain. One example, he notes, is the death of Alpha (ok, indefinite hold on Alpha) and the 3-series rival it would have provided Cadillac. Instead of having a world-class small RWD car to go head to head with the best Germany and Japan have to offer, another feature in the same issue details plans for an Epsilon II based entry-level Caddy with 3.0 and 3.6L DI engines with FWD or AWD. OK read that again. Epsilon II, 3.0 and 3.6L DI V6s, FWD and AWD. That, my friends, is a 2010 LaCrosse. Yup, GM's solution to this problem is to kill off a proper car for Cadillac and instead do a quick and cheap badge swap on a Buick. Of course those two models won't compete with each other at all right? Mark my words, if this is accurate and this trend continues, GM will be headed to Ch. 7 as soon as the power balance in our government shifts to become less union and nationalization friendly.

[lil_chef]

hopefully they scrap the epsillon caddy... that just screeeaaaaammmmss bad idea

[Captain Awesome]

Originally Posted by lil_chef

hopefully they scrap the epsillon caddy... that just screeeaaaaammmmss bad idea

What if they name it the "Cimarron"?

[stovt001]

Originally Posted by Captain Awesome

What if they name it the "Cimarron"?

Might as well. Seriously, even though Lexus has the ES, which is a rebadged Camry, they at least also have the IS, which does in fact compete just fine with the 3-series, C class, and G37. Plus, the Camry wasn't originally luxury anyway, so they can still make a clear distinction between it and the ES. The LaCrosse is already a luxury car, so a Cadillac version has no real way to distinguish itself outside of perhaps superficial styling changes. In fact Ford already proved that rebadging a midsize/large FWD mainstream sedan as a luxury car is no sure thing, as the new MKS is a critical and sales flop. Hello bad old GM. Way to pull defeat out of the jaws of victory. I love rooting for the underdog, but they really don't deserve it this time.

[The_Blur]

I very much disagree that rebadging is what caused this mess. Financial collapse in credit markets is surely the reason that there aren't car buyers. If there's no credit, then there's no financing, leasing, or buying cars.

I will say that rebadging is annoying and tasteless as a business strategy. If they are going to use these tactics, then they are going to get a lot of people that remember the GM that convinced them that Toyota is so great, even though they are a miserable company from Japan.

GM has some overlap. So does Toyota, Ford, BMW, Tata, and everyone else. We're GM enthusiasts so we notice it more. It is kind of like having a classic Chevelle and noticing that uneven hood when all anyone can see is the engine underneath. As GM enthusiasts, we see the best better and notice more of the bad that makes us mad.

[stovt001]

Rebadging didn't immediately cause the sales collapse, no, but it did lead to a decline of GM's image and reputation, leading to sales decline and market share loss, which lead to the weakened financial state that made GM vulnerable to this economy.

Everyone has some overlap, but GM has far more than any foreign brand, possibly more than the other Detroit brands. For Ford, Mercury has no unique cars, just Fords with very minor style tweaks. Nothing but overlap. As I also stated, the MKS is barely differentiated from the Taurus. Chrysler is even worse. Avenger/Sebring? All Dodge and Jeep SUVs? Nothing but overlap. GM not only has a lot of overlap, but it makes very little sense from a brand perspective. The Cimarron was a rebadged econobox. How did that fit the luxury brand? The G3 is another rebadged econobox, an econobox with lowest in class performance no less. How did that advance the performance brand? Clones and GM are synonymous. And they do it only to their detriment.