Filed under: Saturn, Autoline on Autoblog
Why Saturn Failed
In the early 1980s General Motors launched a top-secret program to figure out how it could build a small car to successfully compete against the Japanese automakers. It was called the S-car program and the results of this study shocked top management at GM.
It conclusively proved General Motors could not profitably build a small car in the United States that was priced against the Japanese — at least not under the current GM system. And that launched another study to figure out what it would take become competitive.
GM concluded that it needed a clean-sheet approach to designing, engineering, manufacturing and retailing small cars in the American market. In other words, it needed a whole new car company. And so Saturn was born.
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John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Thu, 01 Oct 2009 14:27:00 EST. Please see our terms for use of feeds.
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