Friday, December 05, 2008

Auto Industry Failures and Success

I'm not clear why people think that eliminating marketing brands would save any of these companies money.

The thing that is sucking the money out of the company is because they are selling multitudes of models that cannibalize their own sales. I dont mean re-branding, because thats just getting the same car with a different set of power features and a different grill and tail-lights. I'm talking about having 5 crossovers. 4 midsize cars. Many suvs.

GM could have a separate brand for every vehicle. But they need less vehicles. A car company needs 7-12 models. Fill every niche.

The companies need to restructure business-wise, and have more efficient product lines, across the board.

THATS the real solution.

It just doesnt make as tasty or inflammatory blog postings.

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