MOUNT VERNON — General Motors touted Saturn as “a different kind of car” when it introduced the brand in 1990. The Saturn lineup was supposed to make the American automotive giant competitive with foreign car companies, which for years had been carving out bigger and bigger chunks of the domestic market.
Nearly two decades later, the only thing getting carved up may be GM’s line of brands.
The Associated Press reported last week that a person familiar with the company’s discussions said that all options are being considered as GM tries to cope with the dramatic shift in consumer buying habits. The source wasn’t identified, but the report has increased speculation that GM may cut weaker brands like Saturn, Saab and Buick to save money.
GM CEO Rick Waggoner told reporters on Thursday that the company had no plans to eliminate any brands beyond Hummer, which was put up for sale last month. However, as GM continues to hemmorage money, it remains possible that slower selling brands may eventually be moved to the auction block.
“GM is trying to get away from competing against itself,” said Mike DeCosky, sales manager at DeCosky GM Center in Mount Vernon. “They’re already eliminating similar models in different lines.”
The root of GM’s financial problems may not be brand overload, but having 12 brands worldwide — many of which compete against each other — can’t help.
“We’re a five-line dealer,” DeCosky said. “GM want us to perform well in all the brands. If we want to keep our franchise, we have to sell each kind of car.”
GM has more brands than either of the other two American auto manufacturers, Ford and Chrysler, although all three companies have struggled amidst rising gas prices and a slowing economy.
GM ditched the Oldsmobile brand back in 2004. DeCosky said he wouldn’t necessarily be surprised to see Hummer meet a similar fate.
Things are less certain when it comes to brands like Saturn and Buick.
“For the level of investment that GM has made in Saturn, there has been little return,” DeCosky said.
But losing brands does not always translate into a loss of customers or customer loyalty.
“Very few people complained when Oldsmobile was cut,” DeCosky said. “The Buick and the Oldsmobile appeal to the same customer, so getting rid of Oldsmobile didn’t hurt GM by any means.”
Even if a particular brand is sold to another manufacturer, that doesn’t mean the brand will change.
“Jaguar is still Jaguar,” said Jack Cunningham, who restores and builds classic cars at Jack’s Garage in Mount Vernon.
Ford Motor Corp. sold Jaguar, along with Land Rover, to Tata Motors of India earlier this year. Ford originally bought Jaguar in 1989, but Jaguar has maintained its identity as a high-end luxury car.
“I don’t think you’ll see a different consumer mindset about a brand even if it’s sold,” Cunningham said. “People loyal to a brand will still think that brand is the greatest in the world.”
Many of GM’s brands were acquired soon after the company’s inception in 1908. But brands like Saab, Saturn, GM Daewoo and Hummer were all bought or started since the 1970s.
Despite the costs of operating competing brands, it’s not cheap to simply eliminate a whole line of cars. GM spent an estimated $1 billion shutting down operations when it killed Oldsmobile, which means the company may be quicker to sell a brand than to nix one altogether.
Despite GM’s financial woes, fans of GM brands aren’t necessarily worried.
“It wouldn’t faze me if Buick is sold,” said Dan Coleman, the assistant director of the central Ohio chapter of the Buick Club of America. “I have classic cars — I’m not looking to buy a new car.
“But GM and Buick have been around for so long, I don’t think Buick will be sold.”
