General Motors is looking to behave itself this holiday season in hopes that the U.S. Government will see fit to reward it with $12 billion on loans. In order to win the loans and be considered for the bailout, the company needs to streamline its operations and prove that it can provide a solid operating foundation and compete in the world of automaking again.
Currently, General Motors is studying whether or not to drop a few of its associated brands. Under examination is Saturn, Saab, Pontiac, and Hummer. GM also owns Chevrolet, GMC, Cadillac, and Buick.
The idea to drop some of the brands would be to save money and to reduce overlap, as GM’s market saturation may in fact be hampering overall top profits. By limiting the company and streamlining some of the associated brands, or at the very least the brands that aren’t particularly popular, GM can limit its market presence in tough times and can release vehicles under its more established product lines.
GM Chief Executive Officer Rick Wagoner is under a deadline set by House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid. Congress has scheduled a December 5 hearing on a $25 billion auto industry rescue and may vote the week of December 8.
For more information on the bailout, Chevy cars, or what General Motors will try to do next to earn the Senate-led rescue, stay tuned.
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