GM to shrink to four core brands in North America

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One of General Motors’ biggest criticisms is the number of different brands under its roof, which ends up seeing it sell similar models that often compete with one another in the same segments. In its efforts to secure its share of a federal bailout, GM said it intends to focus its U.S. product and marketing resources on four core brands, namely Buick, Chevrolet, Cadillac and GMC.

That leaves Hummer, Saab, Saturn and Pontiac in an uneasy state. GM has already confirmed that it is looking for a buyer for its Hummer brand, and that Saturn was also under review. Pontiac, meanwhile, is expected to be reduced to just a few models, while Saab could also be sold-off or axed altogether.

At the Detroit Auto Show this week, GM’s North American President Troy Clarke told Automotive News that the company will be able to execute those plans, despite the global credit crisis putting a hold on merger and acquisition activity.

"We have to re-engineer the way we're doing business in many regards," Clarke said. "We're going to be a smaller company."

Also speaking at this week’s Detroit event, GM Vice Chairman Bob Lutz said Pontiac will be reduced to just five models – the G8, G5, Vibe, Solstice and Solstice Coupe.

There has been no decision on the future of Saturn but GM is working closely with its dealers. As for Saab, recent reports suggested that GM was having trouble finding a suitor for the Swedish brand. However, GM has since dismissed the reports explaining that it is still early in the process and that any outcome will take some time.

Part of GM’s downsizing efforts will also see its 6,600 dealer network shrunk to around 4,700 dealers by 2012.

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