GM Sheds Some Brands: Good News or Bad?

According to Edmunds.com, the Los Angeles-based auto research firm, the number one question on consumers' minds (as it relates to GM) is "What happens to my warranty and service cost in the short and long term?"
And the answer is, that GM will probably honor the warranty, even if the brand goes away. After all, they want to keep GM customers happy and coming back for more GM cars, when their Hummer or Saturn finally dies. Philip Reed, Senior consumer advice editor at Edmunds.com addressed this question in yesterday's WSJ. He also said other dealerships would pick up the warranty work at "comparable" prices.
But he didn't directly address the fact that GM also announced they will be closing the Saturn and Hummer dealerships, and quite possibly other GM dealerships as they prepare to shrink and become profitable again. This is good news for the aftermarket. As long as repair shops know what they're doing, and perform the service at a comparable rate, they should be able to generate additional business for their shops as these changes take place. And where will the good GM/Saturn techs go? They'll bring their expertise to the good shops.

Another comment about the Saturn line that came out in the WSJ yesterday is the potential for a Saturn made in China or India. According to the report, the Saturn Dealer Council would be open to selling vehicles made by Indian or Chinese makers that would be sold as Saturns. GM did not comment on any spinoff plans.

GM May Drop the Hummer

Does this mean the Chevette could be making a comeback? !!! General Motors CEO Rick Wagoner announced they are closing four of their truck & SUV plants this year due to the crazy decline in truck & SUV sales. (Did I just say "crazy"?) That's right! GM announced a 27.5% decline in sales for May, led by sharply declining sales of bigger vehicles. The four plant closings are thought to save GM $1 billion beginning in 2010.
Not everyone loves the Chevette, or loved it. It does hold a soft spot in my heart however. It was the first used car I ever bought (and the last one). I can't say that it had been gently used either, as I was to find out the more I drove my little stick-shift beast. When I finally gave up on it, to buy a more reliable vehicle, one of my first questions to the dealer was - "how much does my new car weigh?" (In case I would be compelled to push it to the side of the road, something I had become an expert at with the Chevette.)
In other news, Ford announced a lousy May as well, with a 16% decline in sales. Their decline was led by a 19% drop in SUV and Truck sales.