Wednesday, May 05, 2004

It's about the Product

GM has tried heavy discounts to sell its cars, but you can't perfume on a pig. GM probably has some of the best deals out there, and yet its sales are barely up. Why? Could it be because no one in their right mind would buy an Impala over an Accord no matter how much money they save? Until GM makes cars people want to buy (and the bland new Malibu doesn't count), they're going to have lackluster sales. The new Corvette, and possibly the G6 will help things, but Buick's and Chevrolet's car line is just not anything special. The truck line is what keeps this company in business.

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Isuzu, the next to disappear?

Autoweek has another article on Isuzu's decline in America. What's ironic is that this is a company that specializes in selling SUVs, in a period of time when SUV buying is an epidemic, and yet the company is still unprofitable. What to do?

Part of the problem is that Isuzu's lineup is nothing special. It's filled with the old platforms, and GM hand-me-downs. They don't have any vehicle that is directly connected with their company, like the Z is with Nissan, or the RX is with Mazda. They have no identity.

For that very reason they should try to form an identity. What do they have to work with? Well they have GM hand me downs. Make a truck out of that, and then do something special with it, like turbo charge it. When you have a company on the ropes like Isuzu, your best bet is to go crazy and do the unexpected. You really have nothing to lose at this point. Isuzu is in far worse of a position then Oldsmobile ever was, and you can bet GM won't hesitate in eliminating them as soon as it thinks it can get away with it. Car companies can exist with just two vehicles in their lineup however, just ask Lotus.

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