GM maintained multiple essentially identical car lines (Pontiac, Buick, Chevrolet, Cadillac) for price discrimination—the same underlying car with different sheet metal and trim sold at different price points—but became increasingly cynical, relying on brand loyalty as quality differences shrank, with the result that consumers defected to Honda rather than down-buying to Chevrolet.
causalpending
Speaker
Michael MungerEvidence Quote
“they relied on the on the loyalty and... people could shift... they relied on the on the loyalty”
Source
Michael Munger on Franchising, Vertical Integration, and the Auto Industry 06/22/2009— EconTalkCreated: 6/17/2026, 10:31:26 AM
My Notes
Loading notes...