Tuesday, October 6, 2009

Saturn - the little engine that almost did.

I have been MIA for the past week or so. Sorry.

You no doubt noticed that Saturn, GM's attempt at a "better idea" some 24 years ago, is headed down the tubes. Given the recent turmoil in the auto industry and at GM in particular, I wondered how this would end. Much has been written about Saturn and its underlying change in manufacturing philosophy, as well as the question of its profitability. However, I believe that a major reason for its approaching demise lies with the old guard UAW leaders. They have never liked the changes to the labor contracts that enabled the "Saturn ideology" to begin in the first place. Now in a great seat of power, for them it's payback time! Some union loyalty.

While I have never owned a Saturn, I have known many people who have and I do not recall ANY of them having a bad word to say about their cars. I have known a few individuals who have purchased several Saturns over the past 20 years and they are certainly among the Saturn faithful.

GM surely should be asking "What is to become of these product faithful buyers?" Does GM actually think that they will likely buy a new Chevy or Buick after seeing their favorite brand eviscerated? I think not.

Like those thousands of Cash for Clunker buyers, I would suspect that these ex-Saturn buyers will buy Hondas, Toyotas, and other small, foreign cars. Like so many of the owners of those brands, they too will become faithful, repeat buyers.

For greater insight into the Saturn story check the following link from the Wall Street Journal.
http://online.wsj.com/article/SB10001424052748704471504574447122719252350.html

No comments:

Post a Comment