Quote:
Originally Posted by ENINTY
With all due respect, the problems with the auto industry and particularly GM as discussed in the article go a bit beyond GM just loosing brand identity from changing the concept of the “ladder movement” up scale though brands.
The article seems to assume a static business, regulatory, social, and economic climate and that GM just abandoned its ladder strategy concept as a random management decision, which led to its downfall. The 1981 Cadillac Cimarron was the result of numerous business variables that occurred over the late 60's and 1970's which led GM to change its business model to one that it thought fit with the change in the automotive business climate. Variables such as Governmental environmental and safety regulations that affected the cost of both the design and manufacturing of automobiles, and a radical and rapid change in the cost and availability of gasoline, were just two of the major changes that were difficult hurdles for the American automobile manufacturers to deal with. Throw in union labor strife and an economic down turn in the mid 70's (capital and credit was difficult to come by) just to make even more fun.
All of these changes drastically affected the cost of designing and manufacturing automobiles, which led to decisions GM made such as dressing up a Chevy Cavalier as a Cadillac Cimarron.
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GM's decision to dress up (as you so aptly put it) the Cavalier as a Cadillac was widely denounced at the time as a foolish move. While I agree that there were many social and economic issues that impact the industry, I believe that GM's management was so out of touch with their customers that they were not able to understand why this was a bad idea.
Had they not strayed from the earlier brand strategy, they would have not (most likely) made such a foolish decision, which was just one of many.