Bankruptcy and bailout means GM can hit the reset button. Problems that have been brewing for 30 years -- a dangerous over-reliance on trucks, manufacturing and retail operations scaled to 1970s market expectations instead of 21st century market realities, crippling legacy costs -- can now all be blown away.
We've heard a lot of talk about how The New GM will be a leaner, fitter, more competitive company. What we haven't much about is the really important stuff -- the product. What are the cars and trucks The New GM will be building? More importantly, what are the cars and trucks The New GM should be building?
Wish-lists are easy. Who wouldn't wish for a Camaro that was as fast as a Veyron, sipped gas like a Prius, and cost no more than an Aveo? However, we've tried to keep it real. What follows is a brand-by-brand, model-by-model analysis of how we'd structure The New GM's North American line up in the near-term. It's based on what we know about GM's design and manufacturing capabilities, current and near-ready platform and powertrain options, and marketing strategy. It's all fundamentally feasible.
We start with the four brands that will comprise The New GM -- Chevrolet, GMC, Buick, and Cadillac. Of the four, GMC has the most gilt-edged image, and as most of its products are little more than badge engineered Chevy trucks, it's hugely profitable. Over the past three years GMC volumes have remained fairly steady at about 20 percent of Chevy volumes, regardless of $4 a gallon gas and the economic meltdown.
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