Dealer: GM is killing Saturn, after we helped save GM
01-26-09, 05:13 PM
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Dealer: GM is killing Saturn, after we helped save GM
http://www.autonews.com/article/2009...901239971/1125
Dealer: GM is killing Saturn, after we helped save GM
Edward Lapham
Automotive News
January 23, 2009 - 1:49 pm ET
Bob Maguire has always seemed sensible and reasonable. The former chairman of NADA is a family man, a proud patriot and has been a loyal second-generation General Motors dealer in Bordentown, N.J., for decades.
So it jolted me when I got a call from Maguire telling me that he and all Saturn dealers are being betrayed by GM's leadership.
In a tone of voice that sounded as if he were back on active duty in the Marines, Maguire told me GM is starving its Saturn dealers, hoping they'll go out of business and go away.
"They're letting Saturn die, and they're letting the retailers who built Saturn die," he said. "And this after I worked my *** off lobbying congressmen and senators to get the loans for GM."
His Saturn store has 237 new vehicles in stock and it sold just 10 vehicles in the first 20 days of the month, he said.
A big part of the problem is that neither Saturn dealers nor consumers know what GM plans to do with the brand as part of its restructuring, he said. "They're not telling us anything."
No answers yet
Maguire hopes there will be some answers for Saturn dealers at the NADA convention in New Orleans, even though he won't be there because he's staying home to keep an eye on the business. Things are so tight that for the first time in more than a third of a century, Bob Maguire will miss an NADA convention.
But his wife and co-CEO of the family dealership group will be there. Marcy Maguire is the NADA director from New Jersey and at the convention she begins a year as the association's line representative for Saturn.
That means she'll probably get to sit down with Jill Lajdziak, Saturn's general manager, and maybe even Mark LaNeve, GM's North American sales honcho. But there's no guarantee they'll be willing or able to reveal more about GM's plans.
Michael Morrissey, a Saturn spokesman, said Lajdziak has been keeping retailers as informed as possible, including a video update that went out around the holidays.
Another problem for the Maguires is that GM denied their request to move the Saturn franchise into their Chevy store, 1.1 miles away, even though at least one other dealer in the New York area has been allowed to combine Saturn with other GM brands.
Maguire is angry and he admits it.
He's not alone.
Litigation under way
Stuart Lasser, who is president of three Saturn dealerships in northern New Jersey, filed a federal lawsuit in November charging GM with a host of state and federal violations, most of which stem from Saturn refusing to let Lasser and his partners put a Kia franchise in their Saturn of Denville store.
But as you read the 20-page federal complaint you can feel the frustration over everything that has happened to Saturn and its dealers as it went from being a different kind of car company to just another same-old, same-old GM division.
Lasser is an unlikely rebel. Like Maguire, Lasser was one of the original Saturn retailers. He has been a solid team player and is even credited with the idea for the popular three-door coupe that Saturn introduced 10 years ago.
According to Lasser's lawsuit, last July Saturn told its dealers in the New York District Marketing Area that GM was running out of money and Saturn franchisees were on their own to do what was necessary to survive.
Saturn spokesman Morrissey said he couldn't comment on the suit. But to many dealers, Saturn's message must have sounded like a call to abandon ship.
Some dealers in the area consolidated their Saturn stores.
Others, like Maguire and Lasser, tried different approaches to keep their businesses afloat. But, ultimately, it all could depend on what GM decides to do with the brand.
"I'm 72 years old, and my son is 26," Bob Maguire said. "The way things are going, I'm afraid there won't be anything left for him."
Dealer: GM is killing Saturn, after we helped save GM
Edward Lapham
Automotive News
January 23, 2009 - 1:49 pm ET
Bob Maguire has always seemed sensible and reasonable. The former chairman of NADA is a family man, a proud patriot and has been a loyal second-generation General Motors dealer in Bordentown, N.J., for decades.
So it jolted me when I got a call from Maguire telling me that he and all Saturn dealers are being betrayed by GM's leadership.
In a tone of voice that sounded as if he were back on active duty in the Marines, Maguire told me GM is starving its Saturn dealers, hoping they'll go out of business and go away.
"They're letting Saturn die, and they're letting the retailers who built Saturn die," he said. "And this after I worked my *** off lobbying congressmen and senators to get the loans for GM."
His Saturn store has 237 new vehicles in stock and it sold just 10 vehicles in the first 20 days of the month, he said.
A big part of the problem is that neither Saturn dealers nor consumers know what GM plans to do with the brand as part of its restructuring, he said. "They're not telling us anything."
No answers yet
Maguire hopes there will be some answers for Saturn dealers at the NADA convention in New Orleans, even though he won't be there because he's staying home to keep an eye on the business. Things are so tight that for the first time in more than a third of a century, Bob Maguire will miss an NADA convention.
But his wife and co-CEO of the family dealership group will be there. Marcy Maguire is the NADA director from New Jersey and at the convention she begins a year as the association's line representative for Saturn.
That means she'll probably get to sit down with Jill Lajdziak, Saturn's general manager, and maybe even Mark LaNeve, GM's North American sales honcho. But there's no guarantee they'll be willing or able to reveal more about GM's plans.
Michael Morrissey, a Saturn spokesman, said Lajdziak has been keeping retailers as informed as possible, including a video update that went out around the holidays.
Another problem for the Maguires is that GM denied their request to move the Saturn franchise into their Chevy store, 1.1 miles away, even though at least one other dealer in the New York area has been allowed to combine Saturn with other GM brands.
Maguire is angry and he admits it.
He's not alone.
Litigation under way
Stuart Lasser, who is president of three Saturn dealerships in northern New Jersey, filed a federal lawsuit in November charging GM with a host of state and federal violations, most of which stem from Saturn refusing to let Lasser and his partners put a Kia franchise in their Saturn of Denville store.
But as you read the 20-page federal complaint you can feel the frustration over everything that has happened to Saturn and its dealers as it went from being a different kind of car company to just another same-old, same-old GM division.
Lasser is an unlikely rebel. Like Maguire, Lasser was one of the original Saturn retailers. He has been a solid team player and is even credited with the idea for the popular three-door coupe that Saturn introduced 10 years ago.
According to Lasser's lawsuit, last July Saturn told its dealers in the New York District Marketing Area that GM was running out of money and Saturn franchisees were on their own to do what was necessary to survive.
Saturn spokesman Morrissey said he couldn't comment on the suit. But to many dealers, Saturn's message must have sounded like a call to abandon ship.
Some dealers in the area consolidated their Saturn stores.
Others, like Maguire and Lasser, tried different approaches to keep their businesses afloat. But, ultimately, it all could depend on what GM decides to do with the brand.
"I'm 72 years old, and my son is 26," Bob Maguire said. "The way things are going, I'm afraid there won't be anything left for him."
01-26-09, 06:09 PM
#3
Lexus Fanatic
Originally Posted by 1SICKLEX
Another problem for the Maguires is that GM denied their request to move the Saturn franchise into their Chevy store, 1.1 miles away, even though at least one other dealer in the New York area has been allowed to combine Saturn with other GM brands.
Maguire is angry and he admits it.
He's not alone.
Litigation under way
Stuart Lasser, who is president of three Saturn dealerships in northern New Jersey, filed a federal lawsuit in November charging GM with a host of state and federal violations, most of which stem from Saturn refusing to let Lasser and his partners put a Kia franchise in their Saturn of Denville store.
Maguire is angry and he admits it.
He's not alone.
Litigation under way
Stuart Lasser, who is president of three Saturn dealerships in northern New Jersey, filed a federal lawsuit in November charging GM with a host of state and federal violations, most of which stem from Saturn refusing to let Lasser and his partners put a Kia franchise in their Saturn of Denville store.
Though the Maguires somehow (?) got an exception, I think Lasser may lose his case. When you agree to a Saturn franchise (Saturn dealerships are called "retailers"), you agree not to share that franchise with any other brand......even other GM products. It is clearly spelled out by company policy.
On a different note, however, I agree that GM, as a whole has really screwed Saturn, especially by forcing them to get rid of the unique plastic-body cars and sell what are essentially re-badged versions of other GM vehicles and German-designed Opels. The Aura is the only product they have today that I personally like, and even that is a rebadged and slightly reworked Chevy Malibu.
01-26-09, 07:28 PM
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It's sad, but at the same time these types of things need to begin happening at GM. We've been saying it for a long time: GM has too many divisions.
It was just a question of which division(s) would go. I'd say, let Pontiac go too.
We don't need Chevy and Pontiac. I used to say Buick too, but they're starting to show some new promise (look no further than the 2010 Lucerne!).
It was just a question of which division(s) would go. I'd say, let Pontiac go too.
We don't need Chevy and Pontiac. I used to say Buick too, but they're starting to show some new promise (look no further than the 2010 Lucerne!).
01-26-09, 07:52 PM
#7
Lexus Fanatic
It was just a question of which division(s) would go. I'd say, let Pontiac go too.
We don't need Chevy and Pontiac. I used to say Buick too, but they're starting to show some new promise (look no further than the 2010 Lucerne!).
We don't need Chevy and Pontiac. I used to say Buick too, but they're starting to show some new promise (look no further than the 2010 Lucerne!).
No way can Chevy fold...it has always been GM's bread-and-butter division. Buick, IMO, can't go, either.....it has a extremely dedicated customer base and repeat-buyership.
So....what CAN GM easily ax? IMO, Saab, Hummer, and GMC. None of those three divisions add very much to the American market. GMCs are mostly just cloned Chevy trucks and SUVs. Saab used to have a small, but quirky and dedicated customer base. Much of that was lost with the axing of the real Swedish-designed Saabs and the substitution of GM world-platform Saabs that their former customers really did not want. Many of then have migrated to other brands.
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01-26-09, 08:00 PM
#8
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In my opinion, for a healthy efficient future, GM should consist of only....
Chevy
Cadillac
Buick
Pontiac or Saturn (not both) - right now, I like Saturn products better.
Chevy
Cadillac
Buick
Pontiac or Saturn (not both) - right now, I like Saturn products better.
01-26-09, 08:01 PM
#9
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So....what CAN GM easily ax? IMO, Saab, Hummer, and GMC. None of those three divisions add very much to the American market. GMCs are mostly just cloned Chevy trucks and SUVs. Saab used to have a small, but quirky and dedicated customer base. Much of that was lost with the axing of the real Swedish-designed Saabs and the substitution of GM world-platform Saabs that their former customers really did not want. Many of then have migrated to other brands.
01-26-09, 08:10 PM
#10
Lexus Fanatic
GM has backed itself into an ugly corner, so these money losing divisions like Pontiac, Hummer and Saturn have to go. GM has already stopped major development funds from going to those nearly dead divisions.
Buick would be history too but largely due to its success in China, it should survive.
Buick would be history too but largely due to its success in China, it should survive.
01-26-09, 08:15 PM
#11
Lexus Fanatic
That's partly my point. They have generally not taken to the newer, GM world-platform Saabs well. One reason is the loss of the traditional Saab hatchbacks....the saab 9-3 and 9-5 were generally sedans and coupes only until the 9-3 Combi wagon came out a few years ago, and it has not been popular either.
01-26-09, 08:20 PM
#12
Lexus Fanatic
No....incorrect. Buick, here, in the U.S., is a long-standing American institution with a BIG, generally older/senior-citizen customer base, and, though generally not popular with youth, is not just limited to grandpa/grandma either. These people have kept Buick in buisness for MANY years.....the repeat-ownership rate is very high.
01-26-09, 08:37 PM
#13
Lexus Fanatic
No....incorrect. Buick, here, in the U.S., is a long-standing American institution with a BIG, generally older/senior-citizen customer base, and, though generally not popular with youth, is not just limited to grandpa/grandma either. These people have kept Buick in buisness for MANY years.....the repeat-ownership rate is very high.
The geezer-pleaser is a somewhat lucrative niche market for GM/Buick. Mediocre cars for the less demanding and a dwindling group of very old buyers. Again I think GM would dump Buick if they didn't have the success in China. But this is all speculation since neither of us works for the bleeding giant of a company. And if they go too far down the path they are on, they may not even get to make some of these choices.
But the strong companies like Toyota and Lexus left it for dead and moved into more lucrative markets with buyers that demand better modern products. It's the correct move by the stronger leaders in the industry such as Toyota, Honda, Nissan, Mercedes, etc.
Here's some info on Buick below and Tiger Woods wasted efforts to help their US sales:
"Truth hurts, and the brutal truth is, GM has been profitless since 2004.
Figures and statistics also show that Woods didn’t help Buick’s sales since they partnered in 1999, especially among the young. In 2008, the median age of Buick buyers was 68 in the US, the same as in 2007.
Sadly, from 2004 up to the present, GM absorbed losses to the tune of $73 billion.
In the first 10 months of 2008 alone, Buick sales dropped 24 percent.
From 1999 to 2007, the years when Woods carried the Buick in his golf bag, sales plunged to 58 percent, with only 185,791 sold units during that span.
The 105-year-old Buick had its peak sale in 1984 (941,611)—12 years before Woods turned pro."
Last edited by IS-SV; 01-26-09 at 09:05 PM.
01-26-09, 08:51 PM
#14
Lexus Fanatic
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01-26-09, 08:52 PM
#15
Lexus Champion
The reality is that the demographics of North America clearly show that society is getting older. I have previously posted statistics that show that the older demographic (if I recall, roughtly 50 years old and up) will be significantly larger than it is today.
There will certainly be a market for cars that are targeted towards Buick's current audience. If no one else caters to this market segment, Buick will be poised to dominate.
