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Re: Should Buick do a new Riviera?

#39473
Alex Luft
Keymaster

@Brian_E You’re right. That’s why I’m such a fan of the division structure, rather than the “brand” organization. That way, divisions/brands would be free to do what they wished (within certain limits, of course) with their own designers and engineers. Certain functions would be carried out at the GM “level”, but the functional that truly differentiate each division would be division-specific. At that point, each division would be responsible for their own financials. All of this would be most beneficial for truly global products, brands, and divisions.

But, back to your comment: conversely, Lexus is also limited in that it’s only one brand and — in my opinion — is trying to do too much. Lexus came to be by making comfy, luxurious, and reliable luxury cars that were quiet and tame. Now, it’s venturing (noticeably) into BMW territory… and the line is beginning to blur.

GM, on the other hand, isn’t limited to a single luxury brand. That’s why I believe The General has such a unique opportunity to dominate the luxury segment and beat Lexus and BMW at their own respective games with Buick and Cadillac.

GM doesn’t need to blur the lines with its two brands… it can deliver a clear and precise message in marketing and build vehicles accordingly:
– soft, comfortable, understated luxury with Buick (competitors include Lexus and MBZ, to a point)
– red-blooded, performance-oriented luxury with Cadillac (competitors include BMW, Audi, Infiniti)

Interestingly, a Lexus used to offer such a vastly different luxury experience than the “traditional” German players. Now that Lexus is trying to move into BMW’s turf, it’s losing that overall clarity and sense of direction. This also applies to BMW and Audi, which try to “tone down” the performance aspects of their vehicles to not scare away the “traditional” Lexus buyer who is cross-shopping.

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