Looking Forward
By John F. Smith
GM Group Vice President
Global Product Planning
2006 Chevrolet Equinox
As you have probably noticed on FastLane this week, several GM executives have taken part in the annual Management Briefing Seminars in Traverse City, Michigan, and I was among them.
I spoke Thursday about GM’s global product development process, and a couple of the areas of interest I covered included our plans for the crossover segment and for hybrid technology.
We are gearing up to take a stronger position in the growing crossover segment. Some believe that we’ve made some questionable portfolio choices, and are behind . . . perhaps irretrievably so.
Well, I’ve got a different perspective on that, because I heard the same thing years ago when Cadillac announced the first Escalade. We were dead last to that market. That was then. Escalade now leads the segment, supporting the notion that “best” matters more than “first.”
In the crossover segment, six years ago, we had none, at least by our definition, and our market share was, hence, zero. Now, we have six different models, sell about 430,000 units annually, and hold 15% share, having taken some from those who were “first,” by the way.
Four years from now, we’ll have 14 crossovers, accounting for about 800,000 units annually, give or take, representing about 1 of every 5 GM vehicles sold. Of course, our plans are subject to change, in this case only upwards.
Why? Because that’s what consumers want. They want something different, more in tune with their increasingly active lifestyles and self-images . . . a further blending and refining of select attributes they know and prefer from separate car and truck experiences, with clear advantages in fuel efficiency.
Our full-size utilities, already the most fuel efficient entries in the category, will be even more so when the new ones debut. How about adding about 1-2 mpg to today’s segment-leading performance?
The story only gets better when those vehicles are purchased with GM’s patented two-mode full hybrid system, available in 2007. This system, while not the first hybrid on the market, will be the best as it will provide benefits across the full range of driving conditions, and a 25 percent fuel efficiency gain with no loss in towing capacity.
This new hybrid system is a better mousetrap. The addition of a second hybrid mode to the drive system improves efficiency, and reduces the need for large electric motors found in typical single-mode systems. The two-mode system will be GM’s third hybrid offering, covering 12 models, by 2008. And we’re focusing them on our largest vehicles first, where they will have the greatest effect on fuel consumption.
Consumers have voted with their wallets in favor of trucks for some time now, and our new full-size utilities will provide fuel economy better than many competitive mid- and -small utilities on the market. With these improvements, and the further gains made possible by our hybrid system, we’ll be offering folks the spacious and highly functional ride they want, with very respectable operating costs.
But our investment in crossovers will give those same customers unmatched choice across the sport utility spectrum, with both fully framed and body-frame integral choices, top to bottom.
In other words, however the market develops, we’ll be there.
31 Comments
Leave a Reply
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)
I’m glad to see a couple american auto manufacturers putting aside the corporate fight in order to work together to get americans to realize that foreign isn’t the best way to go anymore!
If GM really want’s to impress me, and convert me to be a GM buyer, just give me the cars I want. GM produces them as Vauxhall’s and Opel’s. I think the Astra 3 door, 5 door, would fly off the lots in the U.S., and compete very favorably with the Japanese hot hatches. Just package them as Saturn’s, and go to town.
Instead, I fear GM will design something for the American market, downgrade everything, give us bland interiors, bland styling, bland handling — then use bland sales as proof that Americans don’t like hatches. When Mini’s and Golf’s and Japanese ones (not to mention the A3) sell for much more than the American equivalents because they haven’t quite had all the life sucked out of them. Don’t wait 3 years for bureaucrats to give us milk-toast. Just badge brand it, ship it for 2006, with their hot suspension and cool tranny, and let’s see if you can lead the American market in that segment, instead of follow. And you’ll be positioned (hedged) in case of any oil fluctuations with a hot performer in the low end.
Higher is better.
TREND-
Americans were told that the seating position in cars had to get lower to reduce drag for better fuel economy. And every year from the 70’s on the seating position and roof got lower and lower.
Now today over 50% of the market is trucks and growing.
READ-
This is an all out rejection of the lower, lower, lower ride height and roof height phenomenon that was thrust upon us by Detroit and the imports and the uncomfortable seating position that puts drivers at a disadvantage with other cars, SUVs, pick ups and of course the 18 wheeler rigs.
MYTH-
American’s hate cars and love trucks. No they hate the TREND that cars have taken as they have grown lower over the years.
PROPOSAL-
Do an experiment. We will call it HHS (Heritage High Seat). Measure the seating height of a Buick 8 from the classic 50’s or 60’s era. Design a new heritage styled modern day Buick 8 that offers the EXACT ride height and roof height of the legend.
Let the car recall the awesome flat floors, the high thin window profile and add some modern day elements from the Buick Velite. Maybe even give the car a two tone color scheme. Add the proverbial modern, updated wood trimed interior with chrome triple tone brown, cream and tan interior color scheme. Maybe other interior color choices like grays to follow. Maybe even more than one body style too.
A vehicle like this will not only bring Buick back but the family sedan and car back as well.
CONCLUSION-
I don’t think Americans reject cars for crossovers as much as they reject the low ride height and roof height that pervaded car designs in the recent era.
I think the consumers are saying, “Bring the car seat and roof height above the rubber of the 18 wheeler truck that I drive by every morning or I will buy that crossover or truck.”
Tim,
I’m not sure whether I should laugh, or cry, at your comment about “a couple of american auto manufacturers putting aside the corporate fight to work together…”
I assume you’re referring to the link about GM and DaimlerChrysler working together on a hybrid system.
Tim, DaimlerChrysler is a foreign company, a German corporation to be exact. Chrysler is no longer a American company and hasn’t been since 1998.
I have to say I take decided exception to the way DCX is trying to co-opt the heritage of a once American car company, trying to make it their own, portraying themselves as if they’re still American.
That’s disingenuous, at best, on DaimlerChrysler’s part.
If you want to talk about two American corporations cooperating, then look towards the joint venture between GM and Ford developing a 6 speed automatic transmission for their products.
That’s two American companies working together.
No offense to you, Tim. But, as an American, I can’t let this intentional obsfucation on DaimlerChrysler’s part go without comment.
As I know Lambda will have a trio of mid-sized crossover vehicles: Buick, GMC and Saturn.
On the other hand Chevrolet, the volume leader, won’t have a Lambda.
OK, a Chevrolet will compete with Trailblazer and maybe Tahoe, but look at the sales numbers of Toyota 4runner and Highlander, look a those sales, presently and before the Highlander.
At the same time Buick and GMC will be on the same dealer network. Them I don’t understand.
By the way if the XUV had include Chevrolet and not only Envoy, probably it had be a success and not a flop, like the Avalanche.
Ted,
With a substantial amount of the Chrysler group’s R&D occuring here in Auburn Hills, MI – NOT in Stuttgart – I’d reckon to say that the Chrysler Group – despite having two platforms that are rebadged Benzes – is still relatively domestic.
No offense to you, Ted. But as an American, I can’t let this intentional diss on DaimlerChrysler’s American segment and employees go without comment.
Let’s get back on topic again…..
Well, Chrysler is an Americanized spelling of Kreisler (german/jewish). Why just go heritage with your products when you can go heritage with the company itself.
Saw someone driving the new HHR today here in L.A. That’s a pretty good looking little vehicle, especially in black.
Price it fairly and you all could have a hit on your hands. Just don’t overprice it, kill the buzz, and drive the traffic over to the Scion Xb. The HHR may have more features and horsepower, but I doubt it can get much of a price premium over the Xb/PT Cruiser.
Any chance the West Coast Customs Chop Top HHR will make it to production? A Heritage Low Roof HLR would be extremely cool.
Found this in the magazine “CAR” today and it goes with my above post.
High Roof = High Sales
Refering to the wagons that are seeing sales success in Europe.
To me a high roof and seating position which Detrot cars of yore had need to return. Try it on a modern Buick 8.
I believe….
Detroit’s greatness will return to the extent that greatness is expressed in its automobiles.
Also…seen your market cap in Business Week. $20 billion, among the lowest of the industry.
So keep driving GM, still a lot of work to do.
Mr. Smith,
Its great to see GM sell cross overs and hybrids. GM has also seen an increase in car sales, don’t forget that.
GM should recognize trends like the Scion and respond to them. GM also had better have some great designs coming soon in all vehicles, cars, SUV’S, and cross overs.
GM needs to increase offerings of high mileage vehicles and to get the message out.
GM should not wait to restructure benefit costs and become competitive. The present crisis over fuel prices should be a wake up call for product planning.
Where are the GM vehicles with Displacement on Demand technology? I’d imagine a hybrid with DoD tech would be even more fuel efficient and cleaner.
Crossovers are great, univeral, multipurposed vehicles, but not everyone wants one. AMC created them with the Concord 4×4’s, and then your Subaru division swiped it sucessfully when AMC failed. Leave that segment to Subaru and stop cannibalizing this company’s divisions!
You once led the world with your now legendary, performance sedans and coupes in the 50’s, 60’s, and early 70’s. You lost ground in the late 80’s by killing the extremely popular RWD G-body: Oldmobile’s Cutlass Supreme, Buick’s Regal/ incredible Grand National, Chevy’s Monte Carlo/ SS, and Pontiac’s once proud Grand Prix. That nameplate alone owned the luxury coupe market from it’s inception. It carried GM’s banner high, but it slowly got stripped of it’s luxuries in the early 80’s & was forced to use GM’s leftovers, SAD! You came back strong with the Roadmaster and Impala SS, but then dropped the ball to build more SUV’s and pickups.
FWD’s are great for certain people. The younger generations love ‘em because that’s all they’ve known. They’re also economical, especially for college kids and big city commuters. That’s why you’ve got the Aveo, Cobalt, Sunfire, and Saturn Ion…..
I want an affordable RWD luxury sedan as do many other people. Not many law enforcement agencies buy Impalas. WHY? That should be quite obvious to you by now, they are too small, torque steered, underpowered, and unreasonably fragile for police duty because they’re unibodies. They can’t survive the constant abuse. You’ve seen the success of DCX’s cars havn’t you? Ford’s seems to do O.K. with their ancient Crown Victoria platform. GM seriously lacks in middle income, RWD luxury sedans/coupes. The CTS-V is not middle income, nor is the GTO. The Impala/ Monte?, Bonneville/Grand Prix?, Buick’s “What’s it called?”…Yes, they are much nicer than the original 1990’s FWD Lumina 3.1 versions and you are now offering V-8’s in them. It’s just a band aid. The Zeta hope is now dead and many die hard GM fans are turning to DCX, which as “Ted” pointed out, isn’t American anymore.
Hopefully you have time to read ALL the blogs posted. Some are vauge others are great, but we are your core buyers and that’s why we post here. I’m shocked more people aren’t doing it.
I just don’t understand why the engines of the Equinoxes are built in China. I thought they were still a communist country. If I wanna see the USA in my Chevrolet, I want it to be from the USA.
“And we’re focusing them on our largest vehicles first, where they will have the greatest effect on fuel consumption.”
This statement regarding hybrids sounds very logical from an engineering type of mindset, but it reflects a lack of understanding from the consumer’s point of view, in my opinion.
In my view, this is not in sync with the consumer mindset. We consumers want GM to knock our socks off with something like the Prius, a uniquely hybrid model. Or, we would like a hybrid version of the crossover Cadillac vehicle, with a prominently placed “H” in its name. We want something that we can commute proudly to work in, driving solo in the HOV lane. We want something that while taking advantage of all of the other hybrid perks, like tax deductins, free parking, etc., we will get noticed for driving something really special.
In my opinion, consumers would have to carry brochures in their full sized utility vehicles to distribute to other drivers explaining how their hybrid is actually a very logical hybrid choice because it is having the greatest effect on fuel consumtpion.
Please recognize that vehicle purchases are not based solely on logic, but emotion and status play an important role. Hybrid is the new black – run with it!
have GM consider putting the 5.3l engine in the the new buick lacrosse
The Avalanche is not a “flop”. Chevrolet sells more Avalanche trucks than Nissan Sells of their Titan.
2005 July Sales:
Avalanche = 9812
Titan = 9114
The Avalanche is a unique vehicle with unique function unlike any other vehicle on the market. The only company that has attempted to make anything like it is Honda with the Ridgeline. Unfortunately; the Ridgeline illustrates what happens when you try to sell hard-core truck customers a crossover.
I also dont like the chinese engine in the equinox. What, GM doesnt havee enough V6 engines made in the USA? For crying out lous, replace it with a US built V6, with more horsepower.
You are manufacuring cars with 43 miles per gallon in China right now. Why don’t you offer that option to Americans? I’ve read other comments. Yes, some people want greater horsepower. But bad policies are wreaking havoc with my wallet and I want relief. So give U.S. buyers options! Not just the same poor performing car with a different body!
I assume the two rebadged MB platforms being referred to are the Crossfire and Sprinter van.
But being “relatively domestic” is like being relatively pregnant. You either are, or you aren’t and there is no middle ground.
Was I dissing DCX? It was certainly no compliment, but it was an opinion. And not a politically correct opinion either. I much prefer politically incorrect because it’s more honest.
But the comment was hardly off topic. It speaks directly to the issue of domestic product development.
Right now GM and Ford, the two remaining domestic manufacturers, are at a cross roads.
They need to both decide if they are going to continue allowing this market to be defined by the non-domestics, or are they going re-assert themselves and set the agenda for what constitutes an “American” car. “American” in the context of form, function and characteristics (not in the context of homebase or point of manufacture).
If neither are willing to re-assert themselves in this market then they will simply fade out over time. And, eventually, like Great Britain, the United States won’t have a domestic auto industry anymore.
I have to agree with Big Al’s postion regarding a lack of a mid-sized, mid-priced RWD in this market. Based on his remarks, I think he gets my point.
Hello,
I just found about this WEB site. I have been frustrated by not being able to give feedback on GM products.
Most of my friends will not even consider a GM product. To them it means unreliable products.
I read both consumer reports and Car and Driver. I keep waiting to read about a good and reliable GM product but for decades the same old story. The GM products rating is on the bottom in both overall rating and reliability. I bought a 2004 trailbalzer after test driving the Pilot, 4runner and Highlaner. I liked the Trailblazer the best. But it really needs a five speed auto transmission. Driving in fourth gear it has no power and it has to shift down on ever little hill. Driving in the mountains even holding it in third gear you still have to shift down to keep up the speed.
The milage is pretty bad in the city. I have had about five or six Blazers in the past and each new model keeps gettin bigger and heavier. I do not like this trend.
How about a 2 door 4 wheel drive short wheelbase vehicle capable of at least 30 mpg on the highway. All these big heavy 4 door SUVs are poor off road performers because of their long wheelbase. Why is it every time GM drops one of their models it’s replacement is bigger, heavier longer and thirstier. With the price of gasoline topping $2.50 per gallon in the midwest maybe this would be a good time to bring back updated versions of the Metro and Tracker. I drive over 500 miles per week and I am getting tired of burning money.
I think Edward “Higher is Better” Hayes makes an excellent point. Ford apparently does, too; witness their new Five Hundred large sedan and the so-called “crossover” (It’s a station wagon, da**it.), the Freestar, which is built on the same platform. Both cars boast a higher – and quite comfortable – entry and seating position than anything in the “car” category (save the Ford Focus, which is really a European car – more on that below) Ford U.S.A. has sold in decades.
Look also at Daimler/Chrysler’s new Chrysler 300/Dodge Charger/Magnum. Though these are well and thoroughly butt-ugly rolling eyesores, they do feature much higher seating than any of Mopar’s recent predecessors.
But one needed only to go to the Europeans to get this all along. I have owned VW’s for years, and while they look like small to medium-sized cars, they all feature chair-high seating and easy entry and egress and ALWAYS HAVE! One only has to park a Jetta next to any similarly sized Japanese or American competitor and the Jetta is nearly always inches taller.
Likewise, look also at Volvo, or GM of Europe’s own Saab, Vauxhall and Opel – all of whom sell sedans with friendly chair-high seating.
The trouble with most American cars – and Japanese cars, too – is not really the height of the cars so much as their proportions. One of the big reasons I have shunned American (and Japanese) sedans is because the rooflines are too low – or rather, the distance from floor to headliner is too short. In order to provide adequate headroom, seats have, over time, been getting closer and closer to the floor. The end result is that one must step down into the seat while simultaneously slipping under the steering wheel – fine if you are average-sized young and supple – sucks bigtime if you are like me, a 6-foot 4-inch baby-boomer-going-to-seed with a sad excuse for a back and injury-and-surgery-wracked knees.
Once in the driver’s seat, one’s legs feel like they are not going down to the floor, as they naturally do when sitting in a proper chair, but rather sticking straight out and forward, almost as if one is sitting on the floor or on a chair with no legs. (Go to any elementary school 1st-grade classroom and climb down onto one of the chairs the little rugrats sit in – you’ll get the idea.)
Another complaint is that while sitting with one’s arse seeemingly on the floor, the head has only 1 to 1 1/2 inches clearance from the headliner – unless one orders the moonroof, in which case there is NO clearance, your head is constantly brushing up against the rat fur.
Lastly, the view out is over the top of the steering wheel (or THROUGH it if you are short) and along the vast, perspective-distorted expanse of hood. Contrast that with a truck or SUV – or a VW, or nearly any other European car – one sits UPRIGHT with legs going DOWN to the floor, and eyes looking DOWN over the steering wheel and OVER the hood at a commanding vista of road and scenery.
All this speaks to a fundamental difference of opinion on the proper proportions for the automobile interior space.
I won’t drive a truck or SUV because I am the only occupant of my vehicle 99% of the time and it just isn’t a rational use of space, iron and fuel for me to be piloting so much empty tonnage.
What’s more, I just don’t like them. I care about handling, steering response, braking, balance – the total vehicle dynamics thing – and I just find that trucks and SUV’s are slow on their feet, top-heavy and leaden as Ali in his last fight, and just not very much fun to drive.
Just my opinion; call me a car guy, not a truck guy. Truck guys (and girls) can drive trucks if they want to. But I suspect many drivers of trucks and SUV’s are NOT really truck people at all, they just hate the a**-on-the-floor seating position of the typical American or Japanese sedan.
But in European cars – and finally in some Ford and Mopar products (and, in fairness, the latest Toyota Corollas, Camrys and Avalons) – one can get that easy-entry/egress and that so-called “command” driving position that so many Americans have abandoned sedans for trucks and SUV’s in order to get.
GM, it is time for YOU to join Europe and your domestic competitors and start designing sedans that are a little higher, with taller cabins that feature more comfortable (and geezer/gimp-friendly) proportions.
DO NOT, however, bring back two-tone paint jobs! People who weren’t even alive then are all nostalgic and misty-eyed about the 1950’s.
Well, I WAS THERE! Yes, it was the era of chrome, tail fins, Beaver Cleaver, DooWop and Elvis, but it was also the era of Joe McCarthy, Jim “to the back of the bus” Crow, blacklisting, censorship and millions of Godless Commies threatening to make Russian our official language after nuking us ’til we glowed in the dark. In its special 1950’s way, life sucked back then just about as badly as it does now. So LET THE 50′S STAY DEAD!
Mr. Smith,
I’ve recently vacationed in Ireland.
Small cross over SUV’s seem to be quite popular. I think a right hand drive Chevrolet Equinox would compete quite nicely against the Honda CRV and Toyota Land Cruiser. Opel & Vauxhall do not seem to have much of a presence in the segment. If you had a diesel model that would be even better. It is understood that many Irish in rural areas buy diesel vehicles and use diesel fuel for farm tractors (which is taxed at a much lower rate than what is sold at a petrol station) in their personal vehicles.
Brand identity; Since Opel is synonymous with Germany and Vauxhal is synonymous with GB you might consider offering Chevrolet brand vehicles in Ireland. The youth of Ireland love everything American. Case in point is the success Budweiser is enjoying (in partnership with Guinness). The Irish youth (of which there are very large numbers) are growing up in a newer more prosperous Ireland. They identify more with the USA than Germany or GB. Miller light, New Balance, Kimberly Clark, P&G are other examples of successful export of American Brands.
In short if you had a G6/Cobalt, Equinox, Aveo with right hand drive I think you could establish a stron market presence in Ireland.
Best Regards,
Tom
Proud GM owner and share holder.
I find it funny that you used the Equinox in your stock photo. The Equinox has perhaps the most “cheaped out”, old-tech, old-school powertrain with its China-built 3400 engine.
It’s like you couldn’t let it have a 5-speed transmission and a 3500. That would have made it too competitive.
My wife and I went to the local Chevrolet dealer and saw the HHR last weekend. My wife and I thought it was excellent. Both the exterior and interior design are best in class. It appears GM is getting its design leadership back!
Talk about GM falling farther behind. Here is an EV with an
Eye on the future.
Who said Electric is dead?
With over 100 mile range it works for me daily and is MUCH
cheaper than GAS.
Fuji Heavy (Subaru) Announces Plans for Hybrids and Electric Vehicles
18 August 2005
R1e
FHI President Kyoji Takenaka shows a prototype of the Subaru R1e.
The company also announced that it will release the R1e electric minicar by
2010, and that the vehicle will begin roadtests in Japan this year.
Based on the R1 minicar (earlier post), the R1e uses a lithium-ion battery
can be recharged to 90% of capacity in five minutes. The current prototype can be
driven 120 kilometers (75 miles) without recharging, but the distance is expected
to be expanded to 200 kilometers (124 miles). Fuji Heavy plans to start testing
the R1e on public roads this year.
You can sell an old man/woman a young persons vehicle, but you can’t sell a young person an old persons vehicle.
Give us back our ability to come up with our own vehicles from your supplies.
If I want a chevy I will buy one, I hate chevy and if it comes down to buying from you and driving a chevy under a different name, I will go else where. A rose dipped in …. is still a rose, still has meaning too me.
Got It.
I would love to find out where on earth you are getting your marketing strategy because it seems to me to that your enemies are doing it too, I mean for you.
Ford is killing you because anyone getting the show Rides has gotten to see them work so hard to produce cutting edge sports cars, exciting cars, cars we WANT to drive if only in our dreams.
What do we see from you, cookie cutter cars and sport ute’s.
Sorry they win you lose.
I find it sad that this ‘mega’ auto corp is still trying to sell the same cars and trucks from the 90’s as 21st century vehicles.
Didn’t they notice that the most prestigeous imports are rear wheel drive cars other that Honda’s Acura line, which is still placed in the same class is also one of the top Hi-performance products of desire for the youth market as well
I am sad tos ay the senior exectutives are choking to death this company with their outdated tradtions of division products sharing the same platforms which is why Oldsmobile which was the oldest division whose products were ceased. it seems the overbearing lack of forsight and the absents of hindsight that corporate management has will do to GM the same as thoise same qualities did to AMC.
I tell my fellow motorheads Lets see what the General can do to play at least catchup to Damler-[Mopar]Chrysler and Ford at least, I’m not even thinking about if they can catchup to the Japanese industry. The Koreans are catching upt to the Japanese companies as far as quality and value.
My sugestion to seniro management is to retire and let young designers and engineers with fesh ideas amd design concepts bring new life into the market. without looking like rehashed or a copy of every body elses designes.
Guy
If anyone is listening: When are you guys bring the Opel Zafira over as a Saturn. There is a market for the mini-mpv as evidenced by Mazda selling 2700 Mazda5’s in 3 months with no advertising and no incentives. I have every intention of buying one myself in May 2006 unless you guy give me a reason not to. Please this is a no brainer- dump the Relay, add the Outlook as the large vehicle and add the Zafira as a niche vehicle good for 12-15K a year. Since you alread move 200K a year this added production could be done very efficiently and add to profits.
I find it sad that this ‘mega’ auto corp is still trying to sell the same cars and trucks from the 90’s as 21st century vehicles.
Didn’t they notice that the most prestigeous imports are rear wheel drive cars other that Honda’s Acura line, which is still placed in the same class is also one of the top Hi-performance products of desire for the youth market as well
“Higher is better”? Perhaps if you are hauling manure or driving in the Sahara, but it does not belong on the road. This trend is precisely why I will never buy a car made or designed by the Big 3. Sorry.
Road handling in American cars in general is so bad for my standards, exactly because they have to conform to this ridiculous trend: sit as high as possible so that the center of gravity of the car is high and the car does not corner well. Then, build a soft chasis so that the average driver feels like siting on a sofa. The result are atrocious cars that do not perform. The engine may have power, but performance in corners is pitiful (not to mention dangerous!).
Detroit: think a little….