Comment of the day

What car brands can learn from Saturn's rise and fall


The problem with the US car industry is that they do not appreciate the value of brand names; and how to maintain that value. The Imports are much more careful not to over-produce their premium brands with mass-market versions.

They don't need to create new brands like "Saturn". Toyota, Honda and Nissan succeeded in creating new premium brands but their situation was slightly different. (My jury's still out whether they actually needed to change the name).

'So GM felt the need for an import-fighter brand. Creating a new brand without a very clear differentiator is a very expensive undertaking. Usually ego driven, unnecessary and a waste of resources.

Detroit had some world-class sport/luxury brands in the 60's. Lincoln, Thunderbird, Mustang, Cadillac, Covette, Camaro, Imperial, Charger and Challenger come to mind. 'But they just could not resist t5he temptation to protitute these brands with cheap versions.

Basically that's all Detroit needs to do to compete with imports. Don't over produce your premium brands. If demand gets too strong raise the price, NOT production.


ATTENTION COMMENTERS: Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Email Newsletters
  • General newsletters
  • (Weekdays)
  • (Mondays)
  • (As needed)
  • Video newscasts
  • (Weekdays)
  • (Weekdays)
  • (Saturdays)
  • Special interest newsletters
  • (Thursdays)
  • (Tuesdays)
  • (Monthly)
  • (Monthly)
  • (Wednesdays)
  • (Bimonthly)
  • Special reports
  • (As needed)
  • (As needed)
  • Communication preferences
  • You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.