Think Customers: The 1to1 Blog

Faced with asking for a huge loan from the Federal government, GM prepared a restructuring plan last month to show how it intended to pay back the bail-out funds. Among its goals was selling or phasing out three brands, including Saturn. When that prospect first surfaced in December, I wrote about how Saturn customers (including myself) were left hoping the company didn't desert them.

When GM announced plans to discontinue the brand in 2012, Saturn's GM sent a letter to customers assuring them Saturn was still committed to its founding ideals: no-haggle pricing, economic vehicles, and superior customer service. Within a few days, it became apparent the network of Saturn dealers was working to find a way to save the brand, even if GM wouldn't manufacture any more vehicles under the Saturn name.

I can see how it's tempting for GM, which just announced huge fourth-quarter losses, to focus on more profitable divisions in the short-term. The company sells more Cadillacs and Buicks, which also have higher margins. The question is whether that's sustainable. Saturn dealers are convinced that the future rests with smaller cars and more focus on customers. They want to buy the brand from GM and sell their own cars, which would be manufactured by anyone from Honda to Ford to Chrysler (to even GM). The constant wouldn't be the icon on the car; it would be the experience at the dealership. I know it sounds crazy at first, but just think about it.

Despite low sales numbers, Saturn owners are very loyal customers. The plan hasn't fully taken shape, but if done correctly the dealerships would be able to maintain their customer relationships and have more control over what kinds of cars they offer. What do you think? Is it the car or the experience that's more important?