Off to car heaven: Saturn, Saab, Hummer
Posted Feb 17 2009, 09:35 PM by Des Toups Rating: Filed under: economy, cars
Say goodbye to Saturn. And Saab and Hummer, for that matter. Pontiac, too, for all intents and purposes.
Unless buyers (a few million of us -- or maybe just a couple of really adventurous billionaires) step forward, three of General Motors’ eight brands are now destined to join Oldsmobile in the history books. A fourth will be relegated to “niche” status, says GM. The company, until last year the world’s largest automaker, announced plans Tuesday that would drastically scale back its operations in order to stay alive.
Production of Saturn cars would stop in 2011 if the brand hasn’t been sold, GM said. Execs will decide whether to pull the plug on Hummer at the end of March, though rumors of Chinese interest have emerged (and been discounted) several times. The company says Saab will be an “independent business entity as of Jan. 1, 2010.” Take that to mean “dead” unless a reluctant Swedish government can be convinced to step in. Pontiac will emerge as a “highly focused niche brand” sold through Buick and GMC Truck showrooms.
All necessary steps, for sure. And insignificant, compared with the long-term future of the workers who make them and the towns that depend upon them.
Yet we’ll mourn these brands even if we won’t miss them.
Who'll be writing songs about Hyundais?
Pontiac was long General Motors’ coolest brand, its Firebird, Grand Prix and Bonneville as hip and relevant in their heydays as any BMW or Honda today. Its GTO was the first true muscle car, its Trans-Am the only legitimate reason to watch “Smokey and the Bandit.”
Saturn once represented hope for a new way of doing business at General Motors, with distinctive plastic-bodied cars and a warm, almost nurturing sales environment. For a time, its “Different Kind of Car Company” shtick worked: Its Homecoming gatherings in 1994 and 1999 drew 75,000 visitors to Spring Hill, Tenn., for a lost weekend of plant tours, country music and sheer differentness.
Hummer? While they might feel as outdated as a coonskin hat, they’re still a lightning rod for eco-terrorists (cops, too) and a raised middle finger to everybody in a Camry. At least you know where a Hummer driver stands, right?
There was a time when Saabs were charming – ugly, obstinate and tough as hell -- but that came long before General Motors entered the picture in 1990. Its offerings today: rebadged GM generics with the ignition switch relocated to the floor.
For good or bad, GM has chosen its horses: Chevrolet, Cadillac, Buick and GMC. Would those be yours?
Too early for going-out-of-business sales
Don't expect a fire sale on doomed brands. There already is one, or close to it.
Once factories begin to be shuttered, the balance of supply and demand begins to tip the other way. Don't wait too long. (If you're curious, you can check out the current offerings from Saab, Hummer, Saturn and Pontiac at MSN Autos.)
GM expects its dealer count to fall from 6,246 in 2008 to 4,100 by 2014, mostly in metro and suburban markets. What it will cost GM to disentangle itself from a politically powerful dealer body wasn’t specified, but it spent more than $1 billion earlier this decade to shut down its 2,800-dealer Oldsmobile division.
GM was the largest U.S. corporation by revenue as recently as 2000. GM held 50% or more new-car sales for decades, peaking at 55% in 1956. In 2008, that figure fell to less than 22%. Market capitalization peaked at $52 billion in 2000. Tuesday, after GM revealed its survival plans, that figure was $1.33 billion.
Whatever your feelings about Hummers, General Motors or cars in general, it's an astounding fall.
