From: bqueiser@magnus.acs.ohio-state.edu (Brian J Queiser)
Subject: Re: saturn/OLDs speculation
Organization: The Ohio State University 
Date: Thu, 5 Nov 1992 14:07:17 GMT

smorris@sumax.seattleu.edu (Steven A. Morris) writes:

>rjwade@rainbow.ecn.purdue.edu (Robert J. Wade) writes:

>>automotive news reports that OLDsmobile management is heading down to
>>saturn to learn the saturn way of doing business...OLDs sales have
>>plumeted from over a million in 1986 to roughly 435k last year...

>>i'd guess there is a good chance that saturn gets approval for building
>>larger cars with new v6s etc and that OLDsmobile gets absorbed into
>>saturn giving them the additional dealer network and manufacturing
>>facilities they need for these new vehicles.
>>anyone care to comment on this???

>This could happen... although if it does I doubt it will work.  GM may
>be missing the point of SATURN's success.  It is perceived as truly a
>different kind of car with quality engineering.  It's odd marketing,
>fixed price and some of it's unique features all contribute to this
>perception.  It has caught on in the market place.

>If they start builing cars on other GM platforms, or convert
>Oldsmobile dealerships to SATURN dealerships, they will lose the
>unique qualities that make SATURN successful.  The SL1 and SL2 has a
>feel of a Japanese car, especially in the interior styling and fit and
>finish quality.  If they start rebadging Oldsmobiles, even with
>modifications, they will feel and seem quite mainstream.  SATURN needs
>to expand it's product line with TRULY INNOVATIVE cars... something
>much more like the NEW CHRYSLER CONCORDE than the OLDS ACHIEVA.

>They need a convertible, and a minivan.

>There is nothing "wrong" with the Achieva...but obviously, in a
>competative market it is not getting sufficient customer attention.
>SATURN cannot afford to become just another GM division.

>It's the BEST thing GM has done in decades, and I doubt they really
>understand it's success!

IMHO, Saturn's fantastic success is due to a completely fresh start
in the automotive business and a lot of protection and cash from
Roger Smith (I am very sorry to say something decent about Smith; it
will never happen again).  This spawned a new management style, new
production techniques, total quality, a great product, and innovative
marketing/sales.

Also, IMHO, this will be utterly destroyed by Olds.

When I read about GM, especially lately, I cannot help but feel that
their board and their executives don't know what the hell to do.  I
think finally they know they have a problem.  It seems to me that they
are bogged down by the union, old management, and inefficient old
plants.  Ultimately, they produce mediocre cars if they are lucky.

So what happens now?  Their financial services launches a credit card,
there is talk of eliminating two divisions, and the union is cry-babying
as usual.  Then there is a shake-up at the top.  I still see no hope
that anything will change in the next decade.  I still see STS's with
trunk lids that don't align and paint stripes that are screwed up.

So when I hear that Olds and Saturn might get into bed together, I
shudder to think of what the offspring will be like.  Sounds like more
badge engineering to me.

Oh well.  I do wish them all the best, tho.

Regards,

Brian

bqueiser@magnus.acs.ohio-state.edu
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I am the engineer, I can choose K.
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Department of Engineering Mechanics
Ohio State University
Columbus, OH