As part of getting federal money, GM released its 5 year restructuring plan this week (download PDF). I briefly scanned the 100+ page document and it touches on some key points but misses the biggest point – build cars that people want to buy. Below are my recommendations:
Only 3 divisions should be left – Chevrolet, Cadillac and GMC. Chevrolet should be focused on cars below USD 40,000. Cadillac will focus on cars above USD 40,000. GMC should be the truck/SUV division. Stop the overlap of designs and pricing between divisions which just confuses the shi@#$ out of consumers. German cars are so damn easy – small, medium, large. Small (A4, 3 series, C class), Medium (A6, 5 series, E class) Large (A8, 7 series, S class).
Buick/Pontiac – get rid of them. Once again, does anyone believe Tiger Wood’s drives a Buick? Pontiac had it’s glory days but it’s over (NY Times).
Saab/Hummer – Bye. Never could figure out who buys Saab, none of my friends. Hummer…really do we need this kind of fossil fuel consuming vehicle on the road?
Saturn – Should focus on India or China where cheap cars rule. A Saturn car with ding/dent proof doors would do very well in Bombay traffic. But as far as a US entity selling cars…goodbye.
Of course, I have not addressed the two biggest issues ailing GM – unions and health care. That’s for another day.