AD.COM - Lutz recants: No Obituaries Due for Buick, Pontiac

[AutomotiveDigest]

Summary:

"General Motors product czar Bob Lutz recants his brand-axing remarks at a speech given in Denver. Mr. Lutz now says that no phaseouts are planned for Buick, Pontiac or any other GM brand."

To view full Digest, visit: http://www.automotivedigest.com/view_art.asp?articlesID=15327

Please post your comments!

[bobcooke]

The damage is already done. I thought Roger Smith was gone from GM?

[loren_parker@yahoo.com]

"We are not discussing the elimination of any brands. We love all of our children equally. Nobody gets pushed out of the house."
-- Robert A Lutz, product development vice-chairman, General Motors Corp

Children? Pushed out of the house? This is an automaker- not "All in the Family". Last I checked GM is a publically traded corporation in business to make money (perhaps a news flash to some) and appreciate shareholder interest.

I think the bigger question is what is the marketing value of the Buick and Pontiac brands? If these brands were to be moth-balled what would the competitive landscape then look like? Where could the capital these lines consume be better invested to return a higher ROI?

[Maxwedge]

The question is, IF you eliminate these lines, how much overhead dissapears. Certainly eliminating those names doesnt automatically eliminate factories or even many engineers. Its VPs and businessmen who get to see the door. GM is certainly reluctant to do that.