[/align]By Alex Taylor III, Fortune senior writer[/align]April 26 2007: 1:39 PM EDT[/align]

NEW YORK (Fortune) -- The news that Toyota has finally passed General Motors in global sales is about as surprising as John McCain finally announcing he's running for president. But now that it is officially Number Two, it is time for GM to perform some long-overdue surgery on its brand portfolio. Age has taken its toll, and GM is overdue for a face lift.
In some ways, GM (Charts, Fortune 500) is still built for the size it was 50 years ago. In the United States, GM's market share is half of what it used to be but it sells seven brands - two more than in its heyday. Toyota (Charts), by contrast, gets by with only three brands: Toyota, Lexus and Scion.







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[/align][/align][/align][/align][/align][/align][/align]Despite its shrinking market share, GM has always argued that there is value in its broad brand portfolio. Consumers want choice, and having a variety of brands allows GM to segment the car market more finely than its competitors. If GM eliminates a brand, it fears losing long-time buyers.
But there is a big cost to maintaining all those nameplates. Buyers increasingly demand uniquely engineered models that are costly to develop. Multiple brands mean multiple expenditures for marketing, advertising and distribution. Still suffering from negative cash flow, GM simply has too many mouths to feed.
So GM should adopt a template similar to Toyota's. Keep Chevrolet where it is - the volume brand that is the heartbeat of America. Maintain Cadillac at the top of the market and expand its product offerings with derivatives of the popular

 

Well I miss Oldsmobile!!! [:@] More importantly, this is old news, 6 months old, GM's automotive divisions have topped Toyota, AGAIN!!!

Alex Taylor three sticks don't no his azz from his wife's mouth. Hummer actually has increased its unit sales by a greater % than any other GM Division since June, that is why they are releasing the H3 SUT and H4 to follow?????

 

That article was from April. Some things to think about, but I don't think that GM would get rid of more than one make in the short to medium term.

 

bueno

 

Doc, comment?