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News, Analysis and EditorialIs
GM's Saturn Line About to Die?
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GM's Saturn Line About to Die?
Auto on Info May 2003
Is GM's Saturn Line About to Die?
BusinessWeek, in a June 2, 2003, article entitled "Saturn: Still Tiny, But Bleeding like a Monster," reported, on page 32, that General Motors' Saturn division has never showed an annual profit, may lose $1,000,000,000 this year, and 2002's unit sales of the L-Series were less than half of the projected sales. It reported that GM's solution is: Build more - that is, more models. To implement the solution, Jill Lajdziak, a Saturn vice-president, said, per the article, that GM will use parts from other GM models and package them in Saturn styling. The one possible problem with the approach is that Saturn's Reliability Percentrank averages are much above those of GM, as the chart below depicts.
However, its Reliability Grades, per the High Standards, differ little from those of GM, as the table below shows.
The former suggests that Saturn owners may be quite dissatisfied with a reliability change; the latter suggests low awareness or modest standards and attendant dissatisfaction that may be none or negligible. In the end, the survival of Saturn may rest on whether the bulk of Saturn consumers have the wherewithal to detect a difference and, if so, how great they assess the difference to be.
If you are a shareholder of General Motors and wish to express your thoughts on GM's decisions regarding the Saturn line, click here.
If you are a Saturn owner and wish to express your thoughts on GM's decisions regarding the Saturn line, click here.
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