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GM's plan to outmaneuver Toyota

How General Motors will use its eight U.S. brands to to attack and outflank competitors and take back market share.

Job: Bring in American car skeptics
Saturn Aura
Saturn
Job: Bring in American car skeptics
In 2004, Saturn presented GM with a unique opportunity. Started in the 1980s, the brand had become well-known - and well-liked - for its friendly, costumer-focused, no-haggle dealership experience. It also happened to have the highest "conquest rates" of any GM brand, i.e., More than half of Saturn buyers traded in a non-GM product. This may have had something to do with the fact that many first-time Saturn buyers didn't even know it was a GM brand.

Saturn's cars, meanwhile, were a matter of indifference at best. People came because they liked the stores, and the cars were good enough. As originally envisioned, Saturn cars were to be built in a separate factory with its own UAW labor agreements. They were to share little or nothing with other GM products. Even the cars' body panels would made from a dent-resistant polymer material not used in other GM models.

So here was a brand with loyal customers and well-loved dealers but with products that weren't great and that were expensive to build. You can probably guess what the solution is: Keep the dealers, ditch the products.

Once Saturn begins selling its new compact car, the Astra, this fall, the oldest car in its line-up will be the Saturn Sky sports car introduced in 2006. Saturn now sells cars and SUVs - steel cars and SUVs - that are designed in cooperation with GM's European Opel division. The process saves money by spreading development costs over two continents. It also results in eye-catching cars and SUVs that drive the way Europeans (and Americans who like European cars) like.

And you can still buy them without haggling over the price.

Last updated December 31 2007: 7:45 AM ET

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