In order to receive billions in federal aid General Motors may be forced to shed some of its brands, but that could be just the move to insure the General’s success. By eliminating brands and nameplates, GM will free up much needed advertising dollars, helping the Detroit automaker get the word out on some of its most important models.
By essentially producing several different variants of the same model, GM is not only increasing its own competition but reducing the amount of money it can spend on each model’s advertising campaign. For example, GM spent roughly the same amount of money developing the Chevy Malibu and Saturn Aura – which both ride on the same platform – but the Malibu enjoys a much deeper ad budget, not to mention a much larger dealer network, and is outselling the Aura nearly 3 to 1.
“Reducing the number of nameplates and putting your marketing money on the product is the way to go,” GM vice-chairman Bob Lutz told Automotive News. “Nowadays, there’s so much stuff out there and so many brands that nobody can keep track of it anymore.”
GM currently doesn’t have a single division without at least one overlapping model, which could be a reason for GM’s lackluster sales history. However, with an over-bloated U.S. dealership network, it looks like it will be nearly impossible for GM to eliminate its entire product over lap. But with Saturn, Saab and Hummer half way out the door, at least some redundant models will be going the way of the Cadillac Cimarron.
