Do you think the proposed strategy of “reinventing the Saturn brand” by introducing hybrid models will work? Why or why not?

Question

What will be an ideal response?

Answer 1

Pros:
1. Offers a product which would be differentiated from the rest of GM’s product line.
2. Forces GM to use dedicated, rather than common, flexible plants for the manufacture of the vehicles.
3. Consistent with Saturn’s original motto: “A different kind of car. A different kind of company”
4. Offers a “100% American made” version of a popular new type of car in a growing segment.
5. Creates a new myth which is consistent with Saturn’s appeal to American pride. Shifting American values generating a belief that America’s dependence of foreign oil contributed to the war in Iraq…. Thereby driving fuel efficient cars is now ‘patriotic’.

Cons:
1. GM does not currently possess hybrid technology. Therefore, it would likely take years to bring the new models to market if developed in house. Saturn does not have years to wait. The need for action is immediate.
2. If the technology were acquired from foreign firms like Honda and Toyota, that would undermine Saturn’s core value of American innovation and competitiveness.
3. GM perceives the hybrid market as a niche market without significant growth potential. If this perception is accurate, the market could be saturated by the time Saturn releases its new models, and they could be unable to generate sufficient volume to recoup the investment.