General Motors is going through a cataclysmic change, one that will actually pull the company out of its current money predicament or result in bankruptcy, even the possible dissolution of the company. In a search to right the listing ship, the company is divesting itself of several brands including its share of Isuzu, Fuji Heavy Industries [Subaru], and others. As far as its wholly owned brands, speculation has been rife that one, 2, perhaps even three brands might be canned or sold. A couple of the most talked about makes for possible divestment are Hummer – the niche military-style SUV brand – and Saab – the Swedish automaker. Although both brands are at present reasonably weak, GM has insisted that the two makes will not only survive, but receive fresh product and backing. Let’s take a look at 2 of GM’s most vulnerable brands and what the company may have in store for each one.
Saab — Saab fans have been highly disappointed ever since General Motors gobbled up the Swedish automaker back during the early 1990s. Admirer’s hopes the brand would receive some deep pocket support haven’t quite worked out the way many would have wanted it to. Instead, the Saab brand is just a shell of its previous self with most models based on other automaker’s platforms including the Subaru inspired 9-2x and the GMC inspired 9-7x.
Saab’s future likely rests with Opel, GM’s large EU brand based in Germany. Future production of some Saab autos is likely to go to Germany with rebadged Opels being sold as Saabs. For the long term, look for each single Saab model to based on somebody else’s technology, effectively ending what was once a a novel Swedish brand.
Hummer — Desert Storm gave rise to the Humvee and soon after the war stopped, the AM General company started to produce civilian versions of its military vehicle to meet client demand. By the late 1990s, General Motors bought the rights to the Hummer name, but GM still relies on AM General to supply the 2 most important models, while building the H3 itself.
Despite purposely low sales, the Hummer name has managed to prosper. Celebs , monetary moguls, and everyday citizens have been attracted to the brand which has given GM a bit of a “halo” effect. With gas prices soaring, demand will actually drop for the bigger Hummers, but GM may counter that with stronger stress on the H3 and the development of the H4, a vehicle allegedly very similar to the compact Jeep Wrangler.
Of course, not most are satisfied with GM’s plans with the two brands, but then again these are not standard times for the struggling automaker. In time, GM’s plans could be refined and Saab could still be sold, especially if Swedish interests step forward. In all, GM is making an attempt to right its listing ship without peeling off too many brands. Will it work? That is hard to say, but if you are a fan of the GM you actually hope that it will.
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Tags: GM, Hummer, production, Saab