General Motors’ current 19.4 percent market share isn’t far off from the 19.6 percent slice of the market it owned in 2009 — when it still had the Pontiac, Saturn and Hummer brands — but that figure could be headed for steady decline as GM customers defect to other brands.
During its 2009 bankruptcy GM was forced to shutter its Pontiac, Saturn and Hummer divisions, leaving the Detroit automaker with a looming question – would it be able to retain owners of those defunct brands? GM managed to keep some customers in the GM family through incentives programs, but those deals have since expired, with most Pontiac, Saturn and Hummer owners now defecting to other automakers.
So far this year, 70 percent of Pontiac owners that have traded in have moved to a non-GM brand. The defection rate for Saturn owners is even higher, with 71 percent choosing a non-GM vehicle.
GM is working closely with its dealers to make Pontiac, Saturn and Hummer owners aware of its current Chevrolet, Buick and GMC offerings, but the effort has proven to be a bigger struggle than expected.
“Hopefully with the breadth of the Chevrolet line and new vehicles from Buick, we can bring those owners into the fold,” said H. Douglas Knust, owner of Harry K Chevrolet Buick in Chamberlain, S.D.
GM’s sales continue to rise with the overall market, but it remains to be seen if defecting owners will eventually undermine those efforts.
References
1.’GM Struggles to…’ view
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