Industry Report: GM's Bob Lutz Considers Dumping One Brand to Curb Losses

Sport utilities aside, it would be hard to conceive of GM killing off Buick or Pontiac any time soon, especially after dropping

Saturn seems to be on an upwardly mobile course, with fresh new products and among the youngest, most loyal ownership demographic GM enjoys. (Photo: General Motors of Canada)

Oldsmobile. But automotive analysts continue to recommend that the world's largest automaker divest further, if it plans on ever returning to profitability.

So if GM had to make the hard choice, which brand should go? Saturn seems to be on an upwardly mobile course, with fresh new products and among the youngest, most loyal ownership demographic GM enjoys, so it will most likely remain part of the fold. It is also aligning its product development with mainstream GM brands in North America, as well as Europe's Opel, which is a move that makes a great deal of sense and could help both brands reduce development costs by taking advantage of economies of scale.

Chevrolet is the automaker's core brand and the first entry-level nameplate to go global; now made available in Europe and other markets. Chevy is also GM's primary truck brand, and together with GMC accounts for a great portion of the automaker's sales and profits. But this

While sending GMC to pasture would be a smart choice, the vehement outcry by faithful truck fans would reverberate across the continent for years to come. (Photo: Rob Rothwell, Canadian Auto Press)

last point brings up another issue. Chevy and GMC trucks are virtually carbon copies of each other; the most glaring example of brand engineering in the domestic auto industry. Why have two brands selling the same vehicle, with the added development, management and marketing expenses? While sending GMC to pasture would be a smart choice, on paper at least, the vehement outcry by faithful truck fans would reverberate across the continent for years to come. And to complicate matters further, GMC is profitable, plus it satisfies the General's dealers who don't sell bowtie products.