By Christopher Barger
Director, GM Global Communications Technology
We couldn’t help but notice a letter to the editor in yesterday’s USA Today questioning our brand strategy and suggesting that GM might be better off with fewer brands.
We respect the author’s opinion, and we certainly don’t mean to single him out… but we would like to address his concern. We’d actually argue that in today’s highly competitive, highly fragmented car market, a strong portfolio of brands is critical. A typical brand today sells only about 250,000 units a year, and some of the hottest new brands like Mini, HUMMER and Scion sell way less than that. A fast-changing brandscape like this offers lots of challenges — and opportunities.
We think that as GM continues to improve its products and sharpen its brands, our portfolio of eight brands can be a competitive advantage — if we can keep each brand sharply focused and stocked with strong products. GM’s global operations help here. For example, sharing products with Opel will give Saturn new vehicles perfectly suited for import fans, while our new global rear drive program, headquartered in Australia, will soon provide Chevy and Pontiac with exciting new performance cars.
It’s also important that we work with our dealers to build strong retail channels. As Buick, Pontiac and GMC come together in the same showroom, we are eliminating overlapping products and sharpening all three brands. The customer gets a showroom full of great products, and the dealer gets enough traffic to maintain a successful, profitable business. This also allows both GM and its dealers to streamline areas like the service department that the customer doesn’t see.
There are lots of signs that improved products and stronger brands are paying off for GM. Our retail sales are up, and new vehicles like the Chevy Silverado, GMC Acadia and Saturn Aura and Outlook are racking up sales and accolades. Yes, GM still faces many challenges here in North America. But we are confident that we are moving in the right direction. And we’d humbly suggest that if the author were to give one of our new Buick, Pontiac or Saturn vehicles a test drive, he might well share some of our confidence.