You wanna pay for that truck?
General Motors is asking Congress – U.S. taxpayers, really – for another $30 billion. In exchange, the carmaker will phase out all brands except Chevrolet, Cadillac, Buick and GMC.
If GM can remake itself into a viable carmaker, it has to have Chevy and Cadillac. The two brands are iconic and the engineering investments in both will pay off over time. That is if the company survives.
Even Buick makes sense. Sales are up. Critics hail these cars as some of the best on the road. In China, Buicks are considered one of the ultimate status symbols. The brand is a GM success story.
But GMC?
It’s a line of trucks and SUVs – and every single model is a duplicate of a Chevy. Really. They’re the exact same vehicles. Some get a GMC grill ornament, some get the Chevrolet cross. But in many cases, these vehicles roll off the same assembly lines.
Why do Chevy trucks and SUVs need dopplegangers?
This is an attempt by GM to keep part of its dealer network alive, which is kind of admirable. But the profusion of dealers is one reason that GM is sinking. In the same market that has one Toyota or Honda dealer, GM has four or more. So, if a buyer wants a cheaper deal on a vehicle, s/he can take a quote from one dealer and shop it around to the next.
Deciding which dealers should close shop is heart wrenching. In just about every one, you’ll find generations of employees and customers – and the kind of community investment that few industries can match. Lining the walls, you’ll see pictures of Little League teams, food banks, parades, and even some hospital patients – all sponsored and helped by dealers. And if they close, they could take some local newspapers and TV stations with them. Car dealers advertise more – and more reliably – than almost any other business.
But – as so many economists point out – we’re standing on the edge of an economic abyss. It’s time for tough decisions. What do you think? Do you want your money going to GMC or is it time the brand went the way of Oldsmobile, Packard, and Duesenberg?
Tags: economy
