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Following its 2009 bankruptcy and emergence from the same as a leaner, if not keener organization, the General Motors we know of today is far different from the automaker who was bleeding billions of dollars monthly in 2008. That's good news because losing money at such a rate is a recipe for disaster, something GM wasn't able to sustain, threatening its very existence and impacting economies and jobs around the world.
Today, GM has been freed of much of its dead weight with four brands-Pontiac, Saab, Saturn and Hummer-shut down, sold or in the process of being discarded. Today's GM consists of Cadillac, Buick, Chevrolet and GMC with Opel, Vauxhall, Holden and GM/Daewoo as additional GM brands peculiar to certain markets. Fewer brands should benefit the giant automaker who is quietly rebounding in markets from China to Europe to North America.
But does GM have what it takes to thrive or even survive for the long term? That is a matter of debate as other automakers such as Toyota, Ford, Volkswagen and Hyundai have taken advantage of GM's misfortunes to lure customers away from the one-time industry leader. Still, the company's position is much better than Chrysler's whose own bankruptcy filing in 2009 has left the company much smaller on fully dependent on Fiat for its lease on life.
To that end, I've come up with four areas where GM needs to either improve or make good headway with what they already have on the market:
Small Cars - GM is rolling out the Chevrolet Cruze worldwide with the North American market getting its new compact vehicle in 2010. The car is a vast improvement over the Chevy Cobalt and should return 40 mpg on the highway for best in segment fuel mileage. Expect that the Cruze will compete well against the Ford Focus, Toyota Corolla and Honda Civic, among the best selling cars in this class. But what GM doesn't have - yet - is a strong subcompact competitor with the Ford Fiesta likely to dominate this segment when it appears stateside in 2010.
Luxury Brand - Cadillac remains ahead of Lincoln, but both American luxury brands trail Audi, BMW, Mercedes, Infiniti and Lexus in its quest for fresh customers. The Cadillac CTS line is the jewel of the Caddy fleet with the SRX crossover offering a good alternative to the Lexus RX line. But, the STS and DTS are outdated while the Escalade is clearly a vehicle for another time. Will GM update its luxury fleet to take on its global rivals?
Buick Blahs - In China, Buick is by far the bestselling GM brand, but in North America the brand has seen better days. The LaCrosse is all new, the Regal is on its way, while the Enclave is a hit. But the Lucerne is dated and the Buick line is thin and in need of some decent new product. Buick still evokes thoughts of belonging to the granny set, imagery that causes customers to look elsewhere.
GM Europe - In 2009, GM announced that they were going to sell Opel (and Vauxhall), reversing course later on in the year. Opel is too important for GM's small car designs to let go while Europe remains a strong market for the automaker. However, head winds are strengthening as government incentives (scrappage programs) come to an end while Ford and Volkswagen continue to strengthen themselves across the continent.
Personally, I don't see GM going away. Its China sales are strong, the North American market is rebounding, while cost cutting has made the company more efficient. GM needs more hybrids, the Chevy Volt has to sell well and other technologies need to emerge to help the company remain competitive.
For the short term, look for GM to continue to grow, even gain market share. But three to five years out, the automaker will have to take a leadership role in several segments or risk getting run off the road by stronger competition.
Matthew C. Keegan is a freelance writer who resides in North Carolina. Matt is a contributing writer for Ground Dynamics an aftermarket supplier cool parts including tail lamps and fenders.




















































































