I originally intended to write an article extolling Cadillac for their colossal turnaround as a brand, but alas, that will have to wait. Today's star is located at the other end of General Motors' wide spectrum of products: Saturn, the General's attempt at an entry-level brand. Go back with me for moment to the 1980's. America's auto industry was reeling from the threat of affordable, entry-level foreign vehicles. The Big Three's entries into the market were, for the most part, being clobbered.
In a twisted automotive version of the Second World War, Japan and Germany were flooding our shores with attractive, fuel-efficient models of their own. From the East came the epitome of cheap, reliable vehicles in the form of Toyota Camrys and Honda Civics. From the West came the cars of the people, Volkswagen's highly acclaimed Golf and Jetta: German engineering, Teutonic style, priced to sell. America, with its shoebox designs and aged brands, couldn't consistently compete in the trenches of low-cost warfare. Something had to be done.
Offensive tactics were implemented; some even paid off. Ford dealt the mid-size segment a huge blow with its futuristic Taurus, and Chrysler was back on the front lines with Commander Lee Iacocca and a barrage of successes: the fuel-sipping K-cars, followed swiftly by the Minivan and the purchase of AMC. One member of the big three had fallen by the wayside however: General Motors. Despite the plethora of brands under its wing, the General lacked a punch when compared to the outsiders.
While General Motors' presence in the 1980's was widespread, it lacked variety. To say that GM cars suffered from a look-alike and drive-alike syndrome is an understatement; GM's cars of the 80's were badge engineering at its finest. GM needed a weapon to level the playing field in this new era. The General made the effort, but it was plagued by a problem that has been afflicting American car manufacturers for the past thirty years: product delinquency. The Saturn brand was no exception.
A company that could have been the Manhattan Project of economy cars in the 80's, Saturn would not begin building cars until 1990. While Saturn was a fresh idea that gave the General a foot in the doorway to the entry-level market, it was also a long time coming.
Saturn's mission was simple: to have compact, entry level, fuel-efficient cars and to give customers a genuinely pleasant experience. And they did. The brand started out strong, winning awards left and right while being commended for their engineering on a regular basis. People loved them; the media loved them. Saturn was a hit, and for a while it seemed to be a contender. Maybe it was the quirky styling, or maybe just the affordability, but something brought people into showrooms to buy these things.
Then, after the late-90's, things started to get quiet. Awards for value and engineering disappeared. The awards now gracing the walls were superficial: sales satisfaction, customer service, and loyalty. While important on some levels, they hardly represented build quality and innovation.
It gets worse. Rising prices and brand dilution led to a loss of identity and increased confusion, pushing Saturn to become a smaller, niche-like Chevrolet. The brand lost sight of its targets, and having done so did not realize a new war had begun raging in the entry-level market: a Korean war. The Koreans brought their A-game to the entry-level table with insanely cheap cars and eternal warranties, dealing a painful blow to an already befuddled brand.
What happened to the "different kind of company" with a focus on people? In a dangerous gamble, the General tried to revamp Saturn into GM's Euro-American brand by teaming with Opel; a dangerous move, because people could (and still can) buy myriad Hondas, Toyotas, and Volkswagens, not to mention Kias and Hyundais, for thousands of dollars less.
The plan was in the pipeline too long (sound familiar?), and by the time it came to fruition with the Astra and Aura people just weren't interested in a $20,000+ Saturn. The brand was left standing in no-man's-land, looking confused about what it wanted to be: entry-level or mid-level? It still doesn't seem to know.
While trying to advance into the mid-level market, already flooded with bloated brands of its own, Saturn sold out. Now the brand and its employees lie dying out on the automotive battlefield, a painful lesson in brand management. Saturn: the latest casualty in the war for consumer dollars.
Phil Alex was born in Rhode Island in 1985, yet for reasons unbeknownst to him moved to South Carolina. He graduated with degrees in Finance and German from Wofford College in 2007 and has had a strange obsession with cars and travel since he was a wee lad. He currently resides a stone's throw from Japan's international airport in Narita. All of this can be seen on Facebook, so check it out. He makes no apologies for his articles and welcomes all feedback, as long as it is adamantly worded.
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