Quote:
Originally Posted by JSpira
GM´s problems in shedding brands are emblematic of the problems it had when it lost its focus and - at the same time - its brand differentiation.
Here is one take on the current situation - Breaking Up is Hard to Do. |
"GM’s problems started in the 1960s, when it began to stray from Alfred P. Sloan’s brand and pricing structure that had made the company successful. From lowest to highest, the “ladder of success” as it was often called included Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac. Under Sloan, these brands did not compete with one another and car purchasers could move up the ladder within the GM family as their economic status improved. Starting in the 1960s, the differences that made each brand distinct began to fade and the change was epitomized by the introduction of the 1981 Cadillac Cimarron, a rebadged compact Chevrolet.
Hopefully, GM will learn from its more recent experiences and will look to its history and restore and build upon the differences " -
Question: Do you think the double-whammy of increased Asian competition + fuel crisis of the 1970's is what really caused the slow decline? GM was forced to work hard at economies of scale (using same chassis/drivetrains across most model lines), and build better fuel efficient cars (all had to be smaller, with smaller engines). This caused their brands to devolve into nothing more than the sam car with but with marginally differing options.