General
Motors Announces Phase-Out of Oldsmobile
Detroit,
Mich. - GM announced today that the Oldsmobile Division will be phased out
over the next few years.
In making
the announcement, GM President and Chief Executive Officer Rick Wagoner and
Executive Vice President and President North America Ron Zarrella said that
despite major investments over the past few years that resulted in critically
acclaimed new Oldsmobile products, the division was still unprofitable and its
sales volume continued to erode.
“We
stretched to find profitable ways to further strengthen the Oldsmobile product
line, including developing products with our global alliance partners, but in
the current environment, there was no workable solution,” said Wagoner.
Wagoner
added this has been a very difficult and painful decision because of the
history of the Oldsmobile division. “It is the oldest automotive brand in
America with a history that is rich with innovation and success stories,
including dozens of legendary cars, and over the years it was one of the jewels
in the General Motors’ crown,” he said.
“In
recent years, we have made major investments in new products for Oldsmobile –
significant capital and engineering resources – in an effort to re-position
Oldsmobile in the market,” Zarrella said. “Even with the introduction of
several great new products, the brand’s sales and profit performance remain
under pressure.”
A
dramatically changing North American automotive landscape is driving GM to
focus its resources even more sharply on growth opportunities and on making the
entire brand portfolio more effective in the marketplace. That means a
portfolio dominated by innovative products with shorter lifecycles.
“I want
to assure you that we are very sensitive to the concerns and needs of the
Oldsmobile customer,” Zarrella said. “We will work together with our Oldsmobile
dealers to provide for a smooth and orderly business transition.”
A call
center has been established in Detroit to address dealer questions and capture
dealer concerns for resolution. In addition, a transition team will be located
in each of the company’s five regions to address dealer concerns and inquiries.
A dedicated team will work on an individual basis with all dealers involved to
facilitate a smooth and orderly transition.
The
company will also work with Oldsmobile dealers so those customers continue to
receive quality service and parts. If there is any change in Oldsmobile
representation in a customer’s area, service and parts will be made available
through another GM dealer.
There
will be several customer care initiatives beginning with a special 1-800 number
for Oldsmobile owners. As valued members of the General Motors family, they
will have the benefit of the largest and one of the most responsive customer
care networks in the industry to address their concerns.
In
addition, recent Oldsmobile customers will be provided a certificate of at
least $1,000 toward the purchase or lease of a new Oldsmobile or other GM
vehicles.
Regarding
Oldsmobile employees, Zarrella said that the dedication exhibited by the
Oldsmobile team has been exemplary. “This is why we will work hard to provide
opportunities for these valued employees to stay in the GM family,” said
Zarrella.
“While
this is a difficult decision, we believe that in the long run, it is the right
thing to do to increase GM’s competitiveness, profitability and growth,
Zarrella said.”