With the loss of the EV-1 Electric Car, and with an aging platform in the form of the “S” Sedan, Coupe and Wagon, GM started tinkering with the Saturn Division by offering additional models, without really understanding the Saturn Customer.
However, the beginning of the end can be traced to one very important sales event held during the summer of 2005. It was the “GM Employee Pricing for Everyone” sales event. This virtually destroyed the successful no-haggle pricing policy–so heavily guarded at the Saturn division–and overnight Saturn’s most identifiable marketing element was wiped out. While clearing the lots at all GM dealers that summer and setting sales records for many products, it did nothing for the dealers as it eroded their profit margins–including the Chevrolet Corvette and all Cadillac models–catching GM flatfooted when their two domestic rivals matched the sales scheme a month later and proceeded to beat GM at its own game when the corporate giant started to run out of inventory.
Under bankruptcy, the GM reorganization forced GM to shed itself of redundant, unprofitable brands–Pontiac, Hummer, Saab, and Saturn–allowing it to concentrate its resources on its remaining brands, Chevrolet, Cadillac, Buick and GMC. While it can be argued that of all of GM’s brands entering bankruptcy, GMC was the most redundant, a case could be made for the decision to slim down to the final four brands with Buick and GMC combined together, giving those dealerships that survived the painful closing process a nearly full range of mid-sized cars, crossovers, SUVs, and trucks to form a viable channel of distribution. But expect that overlap, where it exists with the Enclave and Acadian, to be eliminated as even this channel will ultimately go on a diet as well.