Showing posts with label Astra. Show all posts
Showing posts with label Astra. Show all posts

Thursday, April 2, 2009

Getting profitable by cutting the profitable

Anyone can speculate or make statements based on anecdotal evidence or familiar talking points. That's one reason I try to back my opinions up with real data when I can. I'm glad to say that with some new numbers, my opinion has once again been validated.

The Big Three American automakers have seen their sales slip nearly 50% year over year. In trying to get the company fit and trim, GM is pruning several makes, Saturn being one of them. In a somewhat recent post, I complained that GM is cutting profitable (or at least better selling) vehicles, like the entire Saturn Line, while keeping redundant makes like GMC (essentially gussied-up Chevrolet trucks and SUVs, but not as nice as Cadillac). Well, a recent report found that while GM's sales figures have slipped phenomenally, the Saturn Astra's sales were up more than 30%.

Let me repeat that. At a company that's seen sales plummet by nearly half, in an industry that's tumbled by nearly a third, GM considers the most prudent move to cut a vehicle that's actually seen a 30% gain.

There's simply nothing more to say about it. I rest my case.