Stepping into the all-electric vehicle segment is a risky move. Just ask the GM EV1. While technologically advanced and ground-breaking in its own right, the EV1 was deemed unprofitable by General Motors and never got a real chance to succeed. Indeed, this segment is rife with peril.
Development costs are massive, with battery technology, electric motor technology and production retooling all taking their toll. The market is highly volatile as well, with demands that shift like the moods of a sullen teenager. To top it off, EVs are judged against the success of well-established internal-combustion rivals, despite the latter’s clear advantage in terms of infrastructure support and established history.
GM EV1
However, despite all the risks, the all-electric vehicle segment is also filled with opportunity. Just ask Tesla. Money hemorrhaging aside, Tesla continues to enjoy its position as the dominant force and go-to talking point in an emerging segment. If you want to build an EV, it’s gonna have to be some kind of “Tesla fighter.”
Which brings us to GM. It’s considered a “legacy” automaker, with more than 110 years of history to back it. However, despite its size and impressive resume, GM has also been criticized for its sluggish response to the EV segment and major players like Tesla.
Cadillac EV
We think the issue starts with branding. GM’s greatest strength lies in its brands. Customers don’t buy a “GM,” they buy a Cadillac, a GMC, a Chevrolet or a Buick. In fact, it’s not even necessarily common knowledge that Chevy and Cadillac are owned by GM in the first place. But while these brands have plenty of credibility when it comes to performance, or practicality, or luxury, they have far less sway in the more contemporary world of all-electric vehicles.
As such, we would like to make a proposal: GM should create a standalone brand specifically for the EV segment.
It would need to be sleek, futuristic and tech-savvy, with a fresh face to present to a skeptical buying public. It would need to shed all of GM’s baggage, and it would need a brand-new marketing strategy to boot, something that’s ahead of the trends rather than simply reacting to them. It would need to benefit from a separate dealership network and reimagine how people shop, buy and service their vehicles. So far, there’s nothing under the GM umbrella that can offer that kind of combination.
Chevrolet Spark EV
If this sounds a lot like when General Motors launched the Saturn brand in the late ’80s, you’re right. But this time around, with the potential of the EV market slowly growing, things would be different. There would be no badge engineering with this new EV brand, which arguably tainted Saturn’s original marketing strategy.
We could name a dozen new EV startups vying to provide everything listed above. But at the end of the day, every single one of ‘em doesn’t have the experience and resources of GM.
The question is this: is a new EV-specific brand exactly what GM needs? Let us know in the poll and voice your opinion in the comments section.
Comments
They could call it: “Saturn”
Buick GMC dealers have the most potential. GMc is the only General Motors vehicle I’ve ever seen share a drive way with a German car.
GMC will partially electrify with Hummer. Buick, or Avenir, is a dinosaur but a blank slate. If relaunch as a fast, well-designed and luxurious electric brand the brand has potential. This would save money, too, given Buick Blue is already on the drawing board for China.
A new brand isn’t really needed if correct marketing and execution converge. The other option would be buy Lucid and Nikola. They could be serviced via GMC dealers and sold via Macy, Bloomingdale’s and Nordstrom in a post Covid America. These department stores must reinvent & would probably welcome rented showrooms.
A rebirth of Olds or Pontiac.
Electriac
The next generation EV’s need to move away from the “Science Project” feel.
They’re near ubiquitous…no longer something akin to seeing a “Hook-n-Ladder Fire Truck” in traffic.
Wouldn’t rename them. Didn’t work for “Coke Classic”, likely won’t work here.
Blue Potato
The whole Old Coke, New Coke, Coca-cola Classic, thing was marketing genius.
– it created a run on “old Coke” completely removing it from store shelves. Allowing Coca-cola to introduce new products made with high fructose corn syrup instead of sugar.
– the sweeter “New Coke” ended up winning “the Pepsi Challenge” but when drinking a full serving without ice or rum added most people think it’s too sweet.
– When the company introduced “Classic Coke” people believed it was “Old Coke” it quickly became the best selling Cola in the U.S. winning the cola wars for Coca-cola.
GM may be using a very similar strategy. With the Cadillac CT6 and Chevy Impala. I wouldn’t be suprized if a Chevy Cruze showed up at a a future auto show.
But will we see a truly market leading product like the Volt reappear and correct the original Volt marketing debacle?
I wouldn’t hold my breath Suzy. However since there are a few here calling for the Saturn name to reappear here’s my suggestion. Let’s just call it Pluto, then when the GM bean counters decide it’s not a real planet er car they can just drop it too. In the mean time we will just keep enjoying our Volt as do you.
As suggested above I always thought this would be a good space for Saturn to return.
Though I think GM would still have to offer EVs under it’s other brands to keep those brands future proof and relevant
I also agree that the Saturn brand should be brought back to fill this space. It could be a low cost entry level ev to get people in the door. Saturn as a brand had one of the highest owner satisfaction rates of any manufacturer. The fact that GM was forced to shed this brand due to the government bailout was a shame. Saturn should offer all ev and hybrid vehicles. The technology could then filter through to the other brands to compliment the more traditional offerings.
GM has stated multiple times already that they will not offer Hybrids. Only pure EV’s
Fairly pointless question to ask as GM has stated an all electric future…
I am floored that people still think that EV’s aren’t coming in Full force. No it does not make sense for GM to have an EV Only Brand. That is so short sighted. So then in 30 years what do you do with Chevy, Buick, GMC, and Cadillac?
Everything and every Brand will one day be pure EV’s. Why is this so difficult?
We can argue if we like it or not but we cannot argue if it will happen. Major Markets around the World have already voted ICE Engines obsolete in the not too distant Future. We as a Country are totally behind the 8 Ball.
If it wasn’t for Tesla, we would basically be in the Stone Ages so to speak. We have no choice. They are coming. Our Government needs to get on Board. Both Sides.
Our Big Three need all the Markets around the World not just the one here. They will not survive otherwise.
when you say “Our Government needs to get on Board”, you really mean our government needs to subsidize EVs even more. without government support, EVs would be dead today.
Oil and gasoline get billions of subsidies every year. If they didn’t, you will be paying more than what the Asians and Europeans pay for gasoline. And that is why foreign manufacturers are fully in making electrics. Only Toyota will be outside this group, believing only in hybrids and in hydrogen fuel (fool) cells.
GM is already making electrics with partners in China. Just look at the Buick Velite! It is what the Chevy Volt could had been!
I think EVs are coming in full force. But I also think that full force for EVs will be something like 15-20% of the market, at least in the near future (5-10 years).
I would argue that for most people, they just aren’t yet practical enough as a primary vehicle.
Nate: But they could be practical enough as primary vehicles in suburban/rural markets as Voltec type EREVs; but, you would actually have to market them…
You live in suburbia, right? Explain urban charging? Will cities be expected to pay for streetside wireless charging parking places?
EV’s are great if you have a garage. Try a Tesla in Manhattan or Brooklyn! Or downtown Albany, NY. Or San Francisco where the bus electric lines don’t carry enough current.
I’m not even worried about the tax increase. What worries me is the theft, possible electrocution, and destruction of green space.
To add to my previous comment. I do think that GM should Bring Hummer back ASAP as a Pure EV Luxury Off Road Player in the Market to take on new Comer Rivian and obviously Range Rover in the Future. That to me is almost a No Brain-er. GM will be basically Printing Money with the Hummer Brand. Just sell them at the GMC Locations.
I get what you’re saying, that for many the Hummer was the ultimate SUV, but there was also the reputation it deserved as a huge gas hog. I think the Volt is the only name of GMs that has a positive reputation among EV enthusiasts so it or a new name is far easier than re-branding. Also, if they want to use some of the old tooling that’s fine, but any viable EV needs to be built on a properly engineered platform, not batteries wedged inside the old frame. So sure, make something that looks similar, with a different name, and fresh branding.
They already have a brand for this, it’s called Buick. It’s Popular in China, so they have to sell Buick EV’s there to meet regulations. They can use the same tech to renovate the brand in America. Buick already builds one of the most reliable cars, and EV’s would compliment that goal. I believe leaders in the BEV program (Mike Harpster/Greg Hubbard) have already proposed this idea. Don’t know if it was approved.
YES! Buick no longer really has a purpose in GM. There is no reason gm needs a company between chevy and caddy. China has terrible smog so, EVs would work for them two. Buick would mainly be focused on china, while importing to america. People want old brands back and gm knows it. The only way a brand can exist inside a company is for it to have a purpose. that is why Olds and pontiac died.
The UAW has become a ball-in-chain that will sink GM. GM will be bankrupt before the company can roll-out a competitive EV lineup. The math doesn’t add up. GM is burned toast.
@Tito
I hear what you are saying. I think the UAW realized an All Electric Future is coming and realize this would be one of their last real Contracts they will sign. People I think do not realize how quickly AI and Robotics are coming for all types of jobs around the World. There is a reason Foreign Auto Makers are at a Break Neck Speed to build never ending Factories in the USA because back home they face the same issue GM does. Unions.
As long as our own Government allows factories to be built down south without utilizing Union Workforce and on top of it subsidize these factories for many years, GM and Ford will continue to look at other NON UAW options.
This is why GM and Ford will continue to look elsewhere for their new Factory options.
if robotics/ai is the answer, what happened to tesla? musk tried to transform his factory into an automation juggernaut. he claimed the robots were going to work so fast, their were concerned about air friction.
billions later, tesla requires more human input to assemble a vehicle than any other manufacturer.
Yes Tesla did error in thinking they could jump right in to extreme automation, and it nearly took them down. They do continue moving in that direction, probably ahead of any others, are patenting new processes on most everything, and know that robotics are the future. They will get there eventually, let’s see what changes come with the model Y.
As long as our own Government allows factories to be built down south without utilizing Union Workforce and on top of it subsidize these factories for many years,
Sounds like freedom to me, glad the “govt” doesn’t dictate to corporations. They work for us not us for them. Pathetic…
GM is selling it’s Lordstown plant to Lordstown Motors, a subsidiary of EV fleet vehicle maker, WorkHorse Group. WorkHorse has contracts with UPS, Ryder, W.B. Mason and has successfully logged millions of delivery miles. GM may consider using their expertise…
WorkHorse is one of the USPS selected candidates to make the next Postal truck.
In the article, it’s mentioned about the massive costs involved in the electric vehicles from inception to end product. Then the question is asked about creating an all new, all electric GM brand. May I say, that is where the largest part of costs in generated? Bringing out an all new brand or sub-brand is beyond high cost and getting that brand to stick becomes even more costly. Case in point? Gas powered: Saturn. Electric only? Tesla. To this day, the question remains if Tesla can survive without a huge purchase from some very deep pockets. Saturn was a losing brand from day one even with GM behind them.
So no. GM needs to develop a mid-sized all electric (think Envision/Acadia, etc), large electric (trucks/larger suv/larger vans) to go along with the smaller Bolt (all electric Encore, Trax, etc). Develop those two more for a total of three all electric “brands” that will be used throughout the current GM lines.
Oldsmobile, sold though GMC/Buick dealers
Olds DID make electric cars! A fire destroyed most of them, and left Olds only with gasoline cars. Look at his history.
Aurora (great styling) and Saturn destroyed Oldsmobile and Pontiac as it diluted GM, now they want to repeat it. Keep what you have and spread the technologies with the current brands.
The entire “stealership” model is dying. Just open up your flip phone and call someone with an IPAD to look up the trend for you. I could be quite happy to never have one rip me off again.
GM need new brands and new leadership ASAP. It may already be too late.
New brand names could be.
The Mexicanna.
The oriental or Asian.
The outsource.
The thanks for the bailout
Or the barra mobile.
Open Note to Ms. Bara – I urge you to consider this idea, i.e. new brand for electric vehicles. Why? Just like going into bankruptcy took all the past toxicity out of GM’s busines – moving the electric vehicles to a new brand would ‘lose’ the GM dealer mentality of the past. I have two GM electric cars – a Volt and a Bolt. From the salespeople to service people to dealer owners into the 800 number customer service based off-shore someplace: electric cars are new, the aptitude to learn is low or non-existent, and it could well ruin an otherwise long term home-run for GM. Do something different – create a ‘Saturn-like’ vibe. DO NOT – I repeat DO NOT try to be successful in the current, outdated mode of ‘dealers’/poor 800 customer support, denials of problems given lack of knowledge: this poor attitude permeates the dealer world. The two cars – they are great: The Volt is 9 years old – I have NEVER kept a car this long. It is a ‘game day player’. The Bolt – wow – it puts fun back into driving without the “Tesla-logo” cost. Great cars with a lacking sales and service experience. Ms. Bara – please – do try to keep the current sales/service model in place – even with massive amounts of re-training/education – it will fail – I beg you not to let this occur.
I think it would make sense to have an EV only brand. GM, despite pooping on their own shoes, have created some darn good EVs over the years. I think they could even recreate the EV1 with updated tech/electronics and batteries, and sell it around $40K and still have buyers. I recently acquired a 2016 Chevy Spark EV which suits my needs perfectly and even thought the Bolt was a logical step up in size, range, etc., if GM continued to update the Spark EV with more efficient battery pack and a range of 150 usable miles of range they would have the the $25K or less smaller Tesla so many seem to be waiting on.
By having a separate EV brand they may even save on marketing and development costs but they’d have to keep all the EVs firmware up to date to assure their charging experiences at 3rd party charging stations are more successful then now. And finally, let’s build them in the US as long as the UAW and the corporation can agree on reasonable wages and benefits to keep people employed and properly trained to assure stability and good products.