Bye bye Oldsmobile!
GM pulls the plug on a 104-year-old icon
By Michael Binstock
Acorn Automotive Editor

The 2001 Alero convertible may never see the showrooms

In a stunning announcement, General Motors President Rick Wagoner announced that the Oldsmobile Division will be phased out, despite major investments over the past few years that resulted in critically acclaimed new Oldsmobile products. In the announcement he confirmed that the division was still unprofitable and its sales volume continued to erode.

"We stretched to find profitable ways to further strengthen the Oldsmobile product line, including developing products with our global alliance partners, but in the current environment, there was no workable solution," said Wagoner.

Wagoner added this has been a very difficult and painful decision because of the history of the Oldsmobile division. "It is the oldest automotive brand in America with a history that is rich with innovation and success stories, including dozens of legendary cars, and over the years it was one of the jewels in the General Motors’ crown," he said.

"In recent years, we have made major investments in new products for Oldsmobile – significant capital and engineering resources – in an effort to re-position Oldsmobile in the market," Wagoner said. "Even with the introduction of several great new products, the brand’s sales and profit performance remain under pressure."

1901 Curved Dash Oldsmobile

A dramatically changing North American automotive landscape is driving GM to focus its resources even more sharply on growth opportunities and on making the entire brand portfolio more effective in the marketplace. That means a portfolio dominated by innovative products with shorter lifecycles.

"I want to assure you that we are very sensitive to the concerns and needs of the Oldsmobile customer," Wagoner added. "We will work together with our Oldsmobile dealers to provide for a smooth and orderly business transition."

There will be several customer care initiatives beginning with a special 1-800 number for Oldsmobile owners. As valued members of the General Motors family, they will have the benefit of the largest and one of the most responsive customer care networks in the industry to address their concerns.

In addition, recent Oldsmobile customers will be provided a certificate of at least $1,000 toward the purchase or lease of a new Oldsmobile or other GM vehicles.

Regarding Oldsmobile employees, Wagoner said that the dedication exhibited by the Oldsmobile team has been exemplary. "This is why we will work hard to provide opportunities for these valued employees to stay in the GM family," said Wagoner. "While this is a difficult decision, we believe that in the long run, it is the right thing to do to increase GM’s competitiveness, profitability and growth, Wagoner said."

Oldsmobile has been responsible for many automotive industry firsts. In 1997 Oldsmobile was the first American car company to celebrate 100 years of innovation and success in the automobile business. In 1899 Olds Motor Works built the first plant specifically designed for the production of the automobile and in 1900 was the first American automobile company to manufacture, market and advertise the automobile.