GM's withering ways.

In the good old days - and I am talking about the 1950s here - GM targeted brands to different segments, and it distinguished each of its brands for that purpose. The brands had shared components but completely unique styling. The branding created a clear upgrade path throughout a consumer's life. You'd start with an affordable Chevy, and then as you became more affluent, you'd move to a Pontiac, a Buick, an Oldsmobile, and ultimately a Cadillac.

Around the 80s, the GM and its peers screwed up. They decided that they'd fool the idiot consumer and start selling the same car with different labels. The Chevy Citation (my family had one), the Oldsmobile Omega, and the Pontiac Phoenix were all almost identical. Similarly in the mid-90s when GM upgraded its popular Chevy Cavalier model, they introduced the new Cavalier and the Pontiac Sunfire. Again, nearly identical. I had a taxi driver tell me once that his opinion was that GM intended the Cavalier for men, and the Sunfire for women. Whatever, it was still a bad choice to make virtually identical cars.

But, perhaps the best example of GM's worst branding practice was the introduction of the Cimarron. Their hope was that they could attract younger buyers to the Cadillac brand (hmmm ... everything Cadillac doesn't stand for). The Cimarron was based on the same platform as the Chevrolet Cavalier, Buick Skyhawk, Oldsmobile Firenza, Pontiac J2000, etc.. Out of the gate Cadillac only had a four-cylinder engine and minimal styling differences from the considerably cheaper Cavalier. Yet it was almost twice as expensive at the Cavalier!

Has GM learned? Apparently not. All you have to do is look at their line up of SUVs and Trucks to see that they are as confused as ever.

Over the next couple of days I'm going to review the GM brands and suggest a major strategy shift that would lead them back to profitability and success.

(Here's a hint ... Look at the strategy of the 50s to restore their prominence in 2010 and on. Narrow the focus of each brand, and then slash and narrow the focus of each sub-brand.)