For decades, GM has
believed that a key to making money in North America was maintaining market share. Many executives feel that having different brands (GM currently has eight)helps the company reach more potential
customers and gives it more tools in fighting the likes of Toyota. Critics say keeping so many brands is a drain on resources and leaves many of its divisions competing with each other.
One brand under examination is Saturn, a maker of economy cars that analysts believe has never made money in its nearly 20-year history. GM recently froze development work on a new Saturn Aura sedan, the brand's flagship model, while it reviews whether it makes sense to continue investing in the division, people familiar with the matter say. Scrapping work on the next Aura would be an acknowledgment that a recent brand makeover has been a bust.
advertisement
advertisement