As you may know, Saturn was a originally founded as a separate corporate entity apart from the other GM divisions, with the sole purpose of developing modern "team-think" manufacturing and customer service styles to compete more effectively against Japanese imports. Our dealer structure is different, our style is different, our no-hassle no-haggle pricing is different, and our vehicles have pioneered and lead the way. Also, Saturn has historically has the highest "conquest rates" within GM, as more than half of trade-ins accepted when buying a new Saturn were NOT GM vehicles. Among the GM brands, we pioneered the efforts to offer hybrids (the "Green Line" models), we were the first to announce an electric plug-in SUV, and we were among the first to offer smaller turbo-charged motors that increased performance and improved gas mileage at the same time (our "Red Line" vehicles). Saturn is positioned to be successful long into the future.
Some customers have said that based upon errant news reports, they are concerned about warranties, and I can say unequivocably that even if Congress fails to act on the bridge loan, GM isn't going anywhere. In all of the discussions, a restructuring at GM will focus on minimizing the overhead of union and other contracts, but no discussion is being made of not honoring warranties. Toyota made some news this year when it surpassed GM as the #1 automotive manufactuerer in the world, but so far this year, GM has some more than a half a million more cars than Toyota in the US -- we are still #1 in the USA. The main difference between the two companies is what we pay our employees who build the cars. GM is straddled with expensive and onerous union contracts, and once that is fixed, we should be able to return to profitability, and eventually return to the #1 position worldwide. The objective of the bridge loan is to give GM time to re-negotiate contracts and slim down in a more sane and cost-effective manner.
What precisely will happen to Saturn within GM is still under examination, and has been for some time. There is definately a movement afoot by some Saturn dealers to return to our roots. Saturn has never really received the same level of attention or marketing dollars from GM compared to the four larger brands that GM has said they will "focus" on. We are already manufacuting most of our cars overseas, so our costs are already lower. By comparison with Chevy and Cadillac, however, we are a small car company, similar in quantities to the size of Lexus compared to the Toyota brand. There is no concern about whether Saturn will survive. I can say, speaking for myself personally, that I was there when Saturn was started and I am fully prepared to return to our roots as a stand-alone company. I also know most of the other Saturn dealership owners nationwide, and we are a unique breed of owners, resourceful and customer-focussed. During the past few months there have been numerous teleconferences and meetings in Detroit, and we are energized about the future.
Everybody in the car industry is hurting right now. Even Toyota sales are down up to 40% month to month. With gas prices low, people are still driving their cars, so there is a pent-up demand for cars building out there. When the economy turns around, people will be buying cars again, probably at an accelerated rate at least for awhile.
The GM plan seeks to save millions of jobs in the US (not just GM employees, but the entire automotive supply chain), and keep hundreds of billions of dollars in the US economy rather than ship it all overseas. Even though there is uncertainty about what will happen to any specific brand or model, I am hoping that we can agree that keeping GM alive is key to our economic recovery, and key to mainting a US indistrial and economic leadership after this current recession is over.
To learn more about GM's role in the economy, visit: www.gmfactsandfiction.com
