There are some three million former Saturn, Pontiac and Hummer customers in the United States, all of whom will unlikely ever have the pleasure of buying a newer model of their current make again. These are some of America’s defunct brands, all gone the same way as Plymouth, DeSoto, Packard and many others. These latest additions were culled following General Motors bankruptcy reorganisation in 2009. And Mercury owners are in the same boat.
Now, Ford and GM are desperately trying to hold onto these “brand-less” customers. Accoriding to a report from the Wall Street Journal, in this year alone, 70% Pontiac owners, 71% of Saturn owners and 65% of Mercury owners who traded in their vehicles left with something other than a Ford or GM product.
With the US$1,000 discounts GM was offering to its defunct brands owners in January and February, Pontiac was able to hold onto 57% of its former customer base through trade-ins. Good news for GM; bad news for its investors. GM’s stock price dropped some 3% after Wall Street commentators began asking if these incentive programs marked a return to the dreaded, “Old GM”.
GM North American President Mark Reuss defended those incentive programs, arguing that they threw off the American giant’s competitors and helped keep it on its toes. Still, it’s hard to see GM as being anything but desperate.
Notices are being sent out reminding defunct brand owners of special offers and the new products on offer from Chevrolet, Buick, Cadillac and GMC. One Chevy-Buick dealer in South Dakota is even sending its sales staff out whenever a defunct brand customer brings in their car for a service.
In spite of this, GM’s sales are rising thanks to the slow recovery of the United States economy. Only time will tell if the auto making colossus can hold onto its defunct customer base in the coming years.
By Tristan Hankins
