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Q3 Ford earns $2.2 Billion Pre-Tax Profit; Nett Income $1.6 Billion


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The other dilemma facing GM is their truck division.....Drop GMC and put Chevrolet Trucks in all previous GMC slots or the more radical idea is to drop Chevrolet Truck division and make GMC available across the board to all dealerships...would also require dropping Chevrolet and Buick SUVs and making them all GMC SUVs.....Cadillac is unique enough to continue with their SUVs.

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The other dilemma facing GM is their truck division.....Drop GMC and put Chevrolet Trucks in all previous GMC slots or the more radical idea is to drop Chevrolet Truck division and make GMC available across the board to all dealerships...would also require dropping Chevrolet and Buick SUVs and making them all GMC SUVs.....Cadillac is unique enough to continue with their SUVs.

 

Either one is fine - just drop ONE!

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GM is heavily committed to Chevrolet-Buick-Cadillac strategy, and given the elimination of Pontiac, there's no way that GM would ever consider the

elimination Buick to allow Chevrolet to expand upwards. The only way forward I see for GM is bracket creep, Cadillac and Buick move higher allowing

Chevrolet to capture more high series sales - I doubt GM will do that so expect GM to start shifting Chevrolet emphasis from entry level to mid series

in an effort to increase ATPs while maintaining it sales objectives...Apart form that, I don't see GM doing anything radical with Chevrolet.

Edited by jpd80
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I don't have a problem with Buick. There are still a LOT of folks that want a "nice car" but don't want the expense (or really, for the elderly, the complexity) of a Cadillac. Realistically, though, if you dump Buick, you can take that money and simply broaden the product/feature offerings from Cadillac. It's not much different than the overlap of Ford and Lincoln. To have an overlap of feature-laden top-end Chevy and entry-level basic (for Cadillac) Cadillacs probably isn't the end of the world. But Buick IS selling in China and development of those products comes from here. It's ok, I think.

 

But I really think GMC is just dumb. It REALLY is a re-badged Chevy for everyone of its products. But...if those sales make up say, 20% of all 1/2 ton trucks and that 20% is sold at a far higher ATP and margin just because it's a GMC, then it's hard to argue against it.

 

To me, GM's problems are much more in line with rest of Akirby's post (fleet queens/over production/poor risk management).

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