Taking a Little Break
Greetings, everyone. Well, it’s starting to get a little quiet around here as GM gears up (or is it down?) for the annual summer shutdown period observed by U.S. automakers every year. As such, we won’t be posting much to the blogs for the next two weeks, but not to worry, we’ll be back in
full swing following shutdown. I think you’ll like what you see. More to come on that later.
For our U.S. readers, have a great 4th of July weekend. - Adam Denison, GM Social Media Coordinator
- Posted in Business
Michael J
It’s just as well. It seems like there’s nothing but bad news surrounding GM’s financial situation right now.
I hope GM sells some cars in the meantime. I’m pulling for you!
getalifeagain
The real reason GM is having a tough time selling more vehicles is because:
Good taste eludes the masses!(c)jbl
Edwin
Bob,
Thanks for working so hard for GM enthusiasts.
What we’d like to see is more cars in the showrooms like the new Malibu and CTS. How soon on the Invicta concept?
We’d also like to see a small V-8 engine for the luxury buffs that gets 30+ mpg highway. Stop sandbagging us. Don’t say you can’t. If these Corvettes can get 34 mpg on cruise control like we’re getting, surely a small 4.0 V-8 can be tuned to get 30 mpg on the epa rating. Luxury cars are selling, Lexus is pumping them out. GM can beat Lexus by offering a a small fuel efficient V-8 for luxury cars to take away V-6 Lexus sales. GM V-8s have the repution for perfection, balance, quality. Now’s the time to unleash the miracle V-8.
At the same time give Cadillac a hot 4 cyclinder. Sell CARS to everyone!!!
How about a sale to move the SUVs get a FREE Cobalt with the purchase of a truck or SUV. Honda locally is advertising two for ones.
Gereon (Germany)
That’s interesting for all those people, who criticize the Chevy Aveo for not being class-leading in fuel-efficiency. Well, there also seem to be other factors: http://www.autoobserver.com/2008/06/hybrid-vehicles-not-best-value-over-time-edmundscom-finds.html#more
According to the German standards, the 2009 Aveo actually will be one of the most efficient sub-compacts. Its ratings over here even are relatively lower than those of the already gas-sipping Opel Corsa.
Edward Hayes
No, apparently somebody has good taste out there, congratulations GM on pulling out a surprising upset in a month with 3 less selling days than last year as consumers toil with the most volitile gas prices in history.
Hay sales tanked for everyone but GM was on top of the tank with a better performance than the other big four. And while most analysts and sceptics were resigned to the fact Toyota would outsell GM in the US this month have about 76,000 GM sales to explain away and hide.
GM held its own in trucks with the lowest of declines and exponential growth in cars like Aura and Malibu served up some good news we have not heard in a while.
And I know sales are down for the truck brands but you just keep tooling up for that Hummer H3T, the most beautiful midsize truck ever conceived, concepted or created is not going to hurt, as sales in June have shown, people still will go after design, quality, reputation, reliability, and choose the strongest brands whether the segments is rising or falling. In that sense GM is winning even if less fans are showing up and paying for tickets.
Oh, and beautiful, beautiful advertisment for Buick particularly the Invicta in Motor Trend and Automobile magazine, I know a Scion owner who was showing everybody the Invicta at work. He was one of those folks that needed convincing not to long ago of Buick’s potential.
Just unbelievable how quickly perceptions can change, and though it’s hard GM is indeed moving the mountain.
Happy 4th everyone.
Rest up GM and come back DRIVING!
Beaugrand®™©
Miller cycle.
“Higher” (numerically lower) final drive ratios.
More transmission gears, 6 and 7 speeds, manual and automatic.
Vacuum gauges or instantaneous economy readouts, standard equipment on all vehicles.
Better aerodynamics. Huge room for improvement there.
Want to reclaim market share? Increase fuel efficiency 33% across the board in the next 2 years. Fire anybody who says it can’t be done.
BTW, I presently own 2 GM vehicles, a Buick Century and a Pontiac Trans Sport- surprise, surprise.
Beaugrand®™©
Miller cycle.
“Higher” (numerically lower) final drive ratios.
More transmission gears, 6 and 7 speeds, manual and automatic.
Vacuum gauges or instantaneous economy readouts, standard equipment on all vehicles.
Better aerodynamics. Huge room for improvement there.
Want to reclaim market share? Increase fuel efficiency 33% across the board in the next 2 years. Fire anybody who says it can’t be done.
BTW, I presently own 2 GM vehicles, a Buick Century and a Pontiac Trans Sport- surprise, surprise.
Rick
I have to agree with Edmin, give every Tahoe/Yukon/Suburban buyer a free Colbalt. Charge full price, a reasonable interest rate and give them a high MPG car.
SteveG
I have seen spyshots of the upcoming Cobalt and its clear that the majority of the opinions are negative. That front end does not flow at all and the grill cutting into the hood is just a bad idea. Why have Korea design it when you have the Malibu designers right here? I suggest you consider changing the looks before you show it at the auto shows. You need a homerun here, not a double.
I certainly hope you found a replacement for your defective intermediate shafts that infect seemingly all of your vehicles, including my ‘06n Cobalt and my mothers ‘06 Impala.
On the interior I have seen spyshots that look pretty good (except for the odd blue on the dash), but I hope you don’t use any toxic Korean materials in the interior. The Aveo is a toxic dump.
I also hear you may drop the Cobalt name so you can use one global name. I don’t really think its a good idea but I hope you use a good name like Nova, Monza, or even Optra. Lacetti? No way!
Rum Doodle
~ “Well, it’s starting to get a little quiet around here as GM gears up (or is it down?) for the annual summer shutdown period observed by U.S. automakers every year.”
Just saw the auto sales figures released for June.
Instead of throttling back and taking time off, it seems you should be buckling down and working harder than ever.
GM bankruptcy not impossible says Merrill Lynch
Rum Doodle
Just read that sales of bicycles and motor scooters are skyrocketing.
That leads me to ask: Why isn’t there a GM motor scooter in development and soon to be available at GM dealerships?
Development of the Volt is certainly good, but your dealers need something to offer those who need motorized transportation but who won’t be able to afford a Volt.
Gereon (Germany)
“I suggest you consider changing the looks before you show it at the auto shows.”
Hi Steve,
I also have seen this spy-shots. I seriously doubt, that these have been displaying the final production-model. What you have been mentioning, still looks to me like some sort of camouflage. Of course, the all-new Malibu is the most beautiful sedan Chevrolet ever has built in decades. Nevertheless, I wouldn’t regard the GM-DAT sourced Chevys, which are sold here in Europe, as ugly. After all, the Aveo hatchback and the Optra (Lacetti) represent Giugiaro-design. This guy used to be anything else than a nobody in the car-designer’s league, as you may know. Have a nice Independence Day everybody.
SteveG
Hi Gereon,
I hope you’re right because what we have seen so far is a formless blob of a body and a fugly front end.
Its kinda sad that the new Kia seems to look so much better than the new Cobalt (Chevelle, Nova, or whatever it will be called):
http://www.leftlanenews.com/kia-forte.html
Fred
I agree that the Cobalt replacement is well… yawn. I realize GM doesn’t make very much on these cars, but still. They’re hugely important for perception reasons, as well as making something that appeals to young people. Which is something GM needs desperately.
To me the Malibu was a symbol of GM going back to it’s old ways (the good old ways), where even entry level cars were gorgeous and well made. Unfortunately I don’t think this new compact is continuing the trend. At least not when it comes to design.
I really hope it quickly gets a redesign. And I would REALLY love to see a sporty American designed Pontiac version. The Sunfire is still popular with kids regardless of being, oh my god… American, and just overall a bad car. I think that says something about how important good design is. Especially when it comes to trying to appeal to kids.
terry
1. my old cavalier is getting 37 mpg (I have a highway commute). I want even better on my next car — I’d love a tiny, easy to park, high MPG car.
2. on the volt, think solar panel instead of sunroof. let that baby be the hardest worker in the parking lot.
3. you must get this right — I went to college because of my GM job 35 years ago. I want to buy GM forever — make me the perfect car — small, works for me, good for the air, clever enough to use the sun. call her ’sun-perfect’.
Chris R
I hope you guys are kidding about GM-DAT having anything to do with the Cobalt replacement. That would be a huge error as those cars haven’t been well regarded overall. I’m hoping the actual car is basically an Astra with traditional Coupe and Sedan bodies rather than the Hatchbacks that Saturn has.
I also agree about the name. Nova is what I’d like GM to go with. It’s still got great recognition, and in general, when people hear Chevy Nova, they tend to think of a fairly basic, dependable A to B car without a whole lot of frills. This was true even before the rebadged Corolla in the 80’s.
Gunnar
Thanks, Adam. Happy Fourth
Stephen A.
Well, you picked a fine time to “throttle back.” Just as you announced that you’re going to BUILD the ultra-small, 40 MPG+ “Beat” vehicle here in the US.
This is GREAT news! I was very upset that GM teased the US market with this vehicle - and a few others like it - during an auto show “survey” asking Americans which one they wanted built, only to say “never mind, we had no intention of selling it to American markets.” Very bad form, but par for the course when it comes to showcars, I’m afraid.
But now you folks have come through and maybe, just maybe, you’ll start making small, ultra-efficient vehicles in time to stave off a TOTAL Toyota takeover of the market. We’ll see.
Rene Curry
3-S GM branding campaign ??
SLOW down
STAY right
SAVE fuel
Make GM the good guy for once!
Start a national campaign promoting this 3-S theme. I think the whole country would jump on the energy saving bandwagon if it was perceived as the kool thing to do. Get the media to promote your campaign with zero advertising costs. Add the saying on all your web sites & literature. GM could get the credit as the driver of the national movement.
Side effects… It could lower fuel use and lower fuel costs due to supply & demand. This has to help your sales of larger vehicles if the fuel price trend was down. It is a better option than the government mandating 55 mph. This could be the interim campaign leading up to the launching the Volt.
EV1 + national campaign + Volt = GM the energy leader.
SLOW down - educate the public on the fuel savings effects of lower speeds.
STAY right - stay right when driving slower for safety and traffic flow. Stay within posted speeds. Stay right except to pass. (as it should be!)
SAVE fuel - $$$ savings + bragging testimonials of their mpg improvements
And I second the immediate addition of vacuum gauges and/or immediate mileage read-outs on all GM vehicles.
Michael J
Right, those shots of the new “Cobalt” are a big yawn. It might as well be a Corolla….an amorphous blob. One only has to look at cars like the Mazda 3 (which is already fairly old in its design) or Honda Civic to realize that this new Cobalt isn’t making the grade, styling-wise. At least let’s hope that the coupe keeps the Corvette-style circular taillights.
Clearly, GM-Europe’s designs (Astra) are much more appealing than GMDAT’s. I’m not a fan of rebadging, but one might as well stick a bowtie on the Astra and sell it as a Chevy. Instead, it’s languishing on Saturn dealer lots. Oh yeah, and how about the Astra VXR turbo….that would be an awesome car, but obviously American’s don’t want that!
Noel Park
Hi Gereon. Best regards.
Beaugrand, 7/1, 11:14 PM:
I hate to shock you, but I agree with you 100%, right down the line, on this one.
Rum doodle, 7/2, 1:22 PM:
That was my first though the instant I saw this post. You took the words right out of my mouth. Do you think that they are taking a vacation at Toyota or Honda? Amen!
The racers say:
“You snooze, you lose.”
Noel Park
BTW, does anyone know any more about the Beat announcement? Like when it wall be available here? If it happens it will be a big step in the right direction.
Likewise the Montana. That is exactly what I need to replace my tired S-10.
GMisCARKING
What is the point of the two-mode hybrid if it’s just limited to SUVs? Take a look at Toyota’s Hybrid Synergy Drive or Honda’s IMA - they are both available for cars. GM should think of a way to put the two-mode in a mid-size sedan like the CTS and Malibu. GM should also cancel the Tahoe GMT platform. SUV is already dead. The Lambda crossovers with two-mode will be simply fantastic. What’s the point of moving the GMT platform to a unibody if you already have Lambda? GM should kill GMC first, and form Pontiac-Buick-Saturn (PBS) channel. In time Pontiac and Saturn can be killed off without buying out dealers. Then Buick can be merged to form Cadillac-Buick-Saab (CBS) channel. Saab is mainly a European brand, which you can sell to the Chinese after you sold Hummer to the Indian. Cadillac and Chevrolet are the two strongest brands in North America and the world. You can thus cut your advertising expenses significantly and invest your money into better products and quality. You should also have a Mexican strategy to defeat the Japanese automakers.
Beaugrand®™©
It might be time to pay attention to my suggestion to design and build a Montana-based, very fuel-efficient light pickup truck.
FWD works just fine for light hauling, up to 1,000 lbs or so.
It might also be a good idea to contract some aftermarket fiberglass companies to come up with some aerodynamic kits to improve mileage for current production and existing late-model vehicles, and have someone come up with some retro-fitting economy mods, like “taller” gear ratios. Make them available for dealers to install…
Beaugrand®™©
It might be time to pay attention to my suggestion to design and build a Montana-based, very fuel-efficient light pickup truck.
FWD works just fine for light hauling, up to 1,000 lbs or so.
It might also be a good idea to contract some aftermarket fiberglass companies to come up with some aerodynamic kits to improve mileage for current production and existing late-model vehicles, and have someone come up with some retro-fitting economy mods, like “taller” gear ratios. Make them available for dealers to install…
Jeremy
In a Road and Track comparo (Aug) of fuel sipping fun cars, the current Chevy Cobalt SS came up right in front. They really had great things to say about the car. I was really pleased to see this. GM-don’t give up on this current car. Advertise it’s virtues!
motorman
as far as looks go for the VOLT there is only one shape when you want the lowest C of D to get the best mileage. that is why a prius looks like it does.
John Slemko
I think that if we started producing 6 cylinder large pickups with a basic modest build and lower price, and promote them, sales would jump immediately. This would take us back to the days when a good number of our customers viewed our trucks as basic bread and butter vehicles. We need to reclaim these customers. For future planning, a small basic truck with a good 4 banger diesel would also move metal.
Edwin
Read the WSJ article on GM, and noticed that they have left something out of their analysis. The success in Iraq, and the possiblity of early Troop withdrawls will boost the markets and auto sales right along with it, and a new pledge for a balanced budget.
Be confident. Let’s eliminate the foreign competition’s brands and promote GM brands.
Good news, a friend got rid of one of his Mercedes, the AMG sedan, for a new Chevy Avalanche. He also picked up a new 08 Aston Martin - He did test drive an STS-V.
My brother in law picked up a new Chevy Trailblazer for his company. Dad got a DTS loaded, with nightvision.
My friend with the new Corvette Convertable stopped by the Porshe/BMW dealer for a drive and he’s even more happy he has the Corvette instead. Now he’s actually reading the new CTS-V brochure online after I mentioned the high quality construction. Meanwhile your foreign competition allege residual values in their brainwashing campaign. His Mercedes S430 went for 40K less after three years. He got rid of it because it had problems with the AC among other things.
At the next meeting, why not have a new value slogan, emphasizing when “price is no object,” instead of ‘the best car for the money.’ The Corvette is the world’s best regardless of price, the CTS-V is the world’s best, regardless of price, the Malibu is the world’s best family sedan, regardless of price.
My uncle has purchased 36 new American vehicles (All GM and a couple of Mustangs). When he came to visit last year he bought a new Sierra Denali, he bought the only color they had. The GMC purchased the prior year had gotten scratched on the hood so it had to go. Price was no object.
When people chose luxury vehicles and pay 75K to 120K and price is no object, then they discover that the GM vehicle for 55K is even better. More people would think more about if they knew. I’m sometimes asked by these folks, if price were no object what car would I choose. The CTS-V is still a better car than the competition, regardless of price.
Stop letting the foreign competition and their media run down your brands. GM brands are better than theirs, they know this - don’t forget it.
The Buick Enclave is creating lots of buzz. Many people want one, as soon as they can afford it.
GM’s new designs are much stronger, and that bodes well for ALL GM brands.
David
All the above comments are nice, but unfortunately, the General must take some big, unpleasant steps right now to avoid bankruptcy.
First of all, most of Buick’s customers are on life-support, as is the brand, so pull the plug. Then fire whoever decided to name a car “terrazo” when the hottest selling cars in the world don’t have names, just letters and/or numbers. (I challenge you to find one LIVING person who’d rather drive a DeVille than a DTS!)
Second, sell Pontiac - its valuable enough to fetch some good dough, but vulnerable enough to be eliminated from the GM roster. Third, sell Hummer to some rich idot who wanted a football team but can’t buy one.
Take the Buick Lucerne, which is a good car, and make it a Cadillac LTS, and take all the Saturns that aren’t Chevy clones and give them a Chevy last name. Dump the rest.
Now you’re down to Caddy, Chevy, and GMC, three winners. And now you can make some money.
Bob-B
GM’s biggest failures are primarily confined to the North American market. GM North America has always been too focused on selling high margin, low MPG gas guzzlers. Lucky for GM, foreign regulations and gas prices made GM’s foreign divisions better prepared at satisfying US auto demands in the era of $4/gallon gasoline. The only trick will be getting the full line of European-designed GM cars into the US market. The biggest obstacle to that is the die-hard dead-ender mindset of the SUV-4-life managers in Detroit. Selling Buick, Saturn, and Pontiac would be a huge mistake. Buicks are widely recognized as the highest quality, most reliable GM’s made. The Saturn Astra and Aura and the Pontiac G8 and Vibe are exactly the kinds of cars GM needs to catch up with Toyota. The Vibe practically *IS* the Toyota Matrix with a few minor trim differences. GM should be retooling the North American factories to make Opel Corsas instead of closing them. I see GM making one stupid decision after another, and it’s starting to make me think GM won’t survive the decade.
Stephen M
Well ,why you guys are taking it easy, The guys at the dealership are crying the blues.
Due to GM offering 0% I went around to a few dealers checking out a new HHR and they are not dealing and they are not moving cars. I told them I am not desperate to buy, and it doesnt bother me.
They claim if GM supported the dealerships more, they can cut a better deal.
So what gives GM? if the dealers cant move their stock. how do you think they can replace it?
Chris R
David,
If GM is restructuring, then I agree, Chevy and Cadillac would probably be their main brands. Cadillac has some work to do now that the Escalades are a liability rather than an asset. They could probably do better with the Lucerne pitting it against the Lexus ES than Buick has done as Cadillac has more cred in the luxury segment. The BLS would also be an interesting entry Caddy slotting in under the CTS here in the States.
Saturn needs to be rebranded. Seriously, when the final plastic bodied Saturn went out of production, the company ceased being Saturn. So why not call it what it is… Opel. Get rid of the Outlook, and offer every car Opel makes. It’s to expensive to import cars from Europe right now at this price point, so the cars would need to come from the Americas. SAAB could also do with the decent dealer network by being sold through dealers which are currently Saturn dealers. SAAB and Opel could really be like VW and Audi are here in the States, only with much better service departments.
The few Pontiac models that are unique to the brand could easily be folded into Chevy. They would then have real names too. The G8 could be the new Imapala, the Sport truck could be the new El Camino and the G6 Coupe and convertible could be restyled and added to the Malibu line.
Hummer would probably partially go away. The Humvee would still be around for government sale. Though unless Hummer starts mirroring Land Rover and Jeep much more closely, they probably won’t remain viable for civilian vehicles.
chiefpontiac
Montana, hmmm, had to look tht one up even though th efamily had one of teh last south of teh border. Guess GM Canada never got the memo that GM was out of the minivan business, Haha.
chiefpontiac
Oh, and hope when you come back it’s with a name for the G8-based ute - other than El Camino! Call a Pontiac an El Camino and you might as well go all the way and simply badge the new Camaro as a Pontiac and not a Chevy.
Jeremy
Man, between the Wall Street Journal yesterday and the Washington Post today, things are kind of scary. I sure do hate to think of such venerable names as Buick going out the window. This was for quite some time one of the best cars in the world (1920s). When Billy Durant purchased David Dunbar Buick’s Motor Works it was the start of GM. I think where things went wrong was when all of the divisions started to offer all the products. They seem to be heading in the right direction with that now, hopefully they can stay afloat long enough for it to work. Also, I sure do hate to see GM having these fire sales to maintain the number one sales slot. These things sap up 2 years worth of buyers (ie the next two years will be a drag). Close more factories to reduce production, don’t give away cars to maintain high production numbers.
Rum Doodle
~ “I sure do hate to think of such venerable names as Buick going out the window.”
Perhaps, but explain why GM needs to be developing, building, and trying to sell:
* Chevrolets,
* Pontiacs,
* Buicks,
* Saturns,
* GMC trucks and SUVs,
* Cadillacs,
* Saabs,
* Opels, and
* Holdens
At a time when GM must be at the top of their game and focus, the distraction, dispersion of talent, and cost of developing numerous models for each of those brands can no longer be considered a good business model.
Were I calling the shots, I’d go with Chevy and Cadillac for the U.S. Opels for Europe, Holden for Australia, and sell Opels and Holdens here as quality imports.
If they want to keep Buick in China, fine, since apparently Buick as a brand has quite a bit of cachet there. But the sooner they get rid of Buick here, the better. Even Tiger Woods hasn’t been able to improve the perception of being stale that goes with Buick.
Rum Doodle
~ “Montana, hmmm, had to look that one up.”
Chief,
I believe this is the Montana they are talking about: Chevrolet Montana sport truck
Not the old Pontiac Montana mini-van: Pontiac Montana
GM builds the Montana pick-up truck in Brazil for sale in Central and South America, but for some reason doesn’t think North Americans would go for it. Go figure.
Beaugrand®™©
Short-range gasoline price forecast from the DoE:
“Regular-grade gasoline is expected to average $3.84 per gallon
in 2008, more than $1 per gallon above the 2007 average price. The
U.S. average regular-grade gasoline price, about $4.10 per gallon on
June 30, is projected to remain over $4 per gallon until the fourth
quarter of 2009. Retail diesel fuel prices, which averaged $2.88 in
2007, are projected to average $4.35 per gallon in 2008 and $4.48 per
gallon in 2009.”
30 mpg is no longer the “gold standard” of fuel efficiency. Any car manufacturer that can’t field at least one model line that gets 40 mpg or better probably won’t be around in a dozen years.
Here’s an idea: put a 65 mph governor on your light trucks.
Looks like “freezing” the CAFE numbers back in the ’80s wasn’t such a good idea.
Beaugrand®™©
Short-range gasoline price forecast from the DoE:
“Regular-grade gasoline is expected to average $3.84 per gallon
in 2008, more than $1 per gallon above the 2007 average price. The
U.S. average regular-grade gasoline price, about $4.10 per gallon on
June 30, is projected to remain over $4 per gallon until the fourth
quarter of 2009. Retail diesel fuel prices, which averaged $2.88 in
2007, are projected to average $4.35 per gallon in 2008 and $4.48 per
gallon in 2009.”
30 mpg is no longer the “gold standard” of fuel efficiency. Any car manufacturer that can’t field at least one model line that gets 40 mpg or better probably won’t be around in a dozen years.
Here’s an idea: put a 65 mph governor on your light trucks.
Looks like “freezing” the CAFE numbers back in the ’80s wasn’t such a good idea.
Brady Turley
65 mph governor, why not take away free speech while your at it? GM wants to save money, start by cutting its costs. Look at who’s getting paid and for what? I’ll leave it at that.
Beaugrand®™©
This is how GM pulls itself out of the mess it’s in:
Clear out the vehicles on dealers lots. Whatever it takes, “value pricing” or “employee pricing” or rebates; offer a 10-year, 100,000 mile bumper-to-bumper transferable warranty on all vehicles sold from now on, or at least until the 2010 model year. Offer free oil changes for 100,000 miles.
Build all of those “Trio” models.
Revisit the Corvair and Fiero concepts.
Assemble a team of bright young engineers, task them with developing modifications to existing US-spec models for a 33% increase in overall fuel economy. Give them a 6 month deadline. Have them report directly to Bob Lutz, isolate them from meddling “middle managers.”
Conduct a poll of US drivers (Fastlane bloggers could be participants), asking them which fuel-efficient European, Asian, or Central/South American/Mexican GM models they would like to see imported or assembled in North America (after seeing photos, specs, and pricing info, etc).
Import the tooling for some of those very efficient Euro models, and convert some of those shuttered pickup assembly plants to build them here. Last year’s tooling will work fine…
Import those efficient Asian/Central/South American/Mexican models.
Get back to the core business of manufacturing large numbers of efficient, affordable, quality vehicles.
Beaugrand®™©
This is how GM pulls itself out of the mess it’s in:
Clear out the vehicles on dealers lots. Whatever it takes, “value pricing” or “employee pricing” or rebates; offer a 10-year, 100,000 mile bumper-to-bumper transferable warranty on all vehicles sold from now on, or at least until the 2010 model year. Offer free oil changes for 100,000 miles.
Build all of those “Trio” models.
Revisit the Corvair and Fiero concepts.
Assemble a team of bright young engineers, task them with developing modifications to existing US-spec models for a 33% increase in overall fuel economy. Give them a 6 month deadline. Have them report directly to Bob Lutz, isolate them from meddling “middle managers.”
Conduct a poll of US drivers (Fastlane bloggers could be participants), asking them which fuel-efficient European, Asian, or Central/South American/Mexican GM models they would like to see imported or assembled in North America (after seeing photos, specs, and pricing info, etc).
Import the tooling for some of those very efficient Euro models, and convert some of those shuttered pickup assembly plants to build them here. Last year’s tooling will work fine…
Import those efficient Asian/Central/South American/Mexican models.
Get back to the core business of manufacturing large numbers of efficient, affordable, quality vehicles.
David
Let’s look at the gas mileage problem. In my opinion, its almost solved. Since the 1970s, fuel efficiency per horsepower has increased dramatically. A 74 Vista Cruiser wagon, with a 200 HP V-8, hit the scales at about 4,000 lbs. It probably did 0-60 in 11 secs, and got 10 MPG in town.
Today’s 4,000 lb GM car with a 250 HP V-8 probably gets 17 MPG around town and goes 0-60 in 7.5 secs.
Better yet, a 5,500 lb Escalade has 400+ Horses and gets better mileage than the Vista Cruiser, and is much faster. So hats off to GM for efficiency. The problem is the consumer has wanted more speed and more weight. I don’t like regulation, but, a little more CAFE would force consumers to buy today’s great cars with a little less horsepower but far better mileage.
Jeremy
Rum Doodle,
I think ultimately you are correct in your take on the situation. I was just expressing the emotional sentiment that comes up for me when it is discussed that brands are going to be cut (yes, I am a programmed capitalist robot when it comes to cars). I think you’re correct though. If not that, then GM should go back to having one Pontiac, one Chevrolet, one Buick (like they did in the 60’s). The GMC can be the trucks and vans, Chevrolet the Toyota-Honda competition (midsize and compact sedans), Buick can be a fullsize luxury car (though cheaper than Cadillac) and so on. All of this will have to be sold under one roof GM dealerships. This would allow the brandings to continue (with pseudo-independent r&d) and reduce GM’s production and design costs. Ultimately, cars are slowly becoming commoditized to the point where a consumer doesn’t really care anymore what brand their car is (as long as it runs reliably and is cheap). I think 25 years from now all car brands are going to be just marketing based, all components will be shared (like GM/BMW/Chrysler’s hybrid tranny gig).
Michael J
Just read today that the new Cobalt is going to be named “Cruze”. First off, I hope that this isn’t true, but if it is, what are they thinking? “Cobalt” may not bring to mind exciting cars, but it doesn’t carry the negative emotional baggage that Cavalier did. Moreover, Cobalt is a much cooler name than Cruze (which honestly brings to mind a certain actor, first).
The nomenclature for GM cars is infuriating! First Pontiacs convert to G# names, now Chevy resorts to milktoast names. Think of all the historic model names in Chevy history…Now, we have Aveo and Cruze.
When GM resorts to naming cars with plural words (i.e. Spectra, Millenia) like others, my head will officially explode.
Beaugrand®™©
I think I made that suggestion some months ago- one, maybe two platforms per division, keep Cadillac as the top-of-the-heap luxury brand, Buick as the mid-level luxury brand, Pontiac as the RWD “performance” brand, Chevy as the economy brand, GMC as the truck/SUV brand, Saturn for minivans/wagons/crossovers and basic utilitarian cars for people who aren’t car enthusiasts (bland, utilitarian, boring, functional). Once upon a time, Oldsmobile was thought of as the “experimental” brand, this function could be filled by Buick. Oh, and spin off Corvette as a stand-alone brand, NorthStar as the engine brand for all divisions. Sell all brands under one GM banner.
Beaugrand®™©
I think I made that suggestion some months ago- one, maybe two platforms per division, keep Cadillac as the top-of-the-heap luxury brand, Buick as the mid-level luxury brand, Pontiac as the RWD “performance” brand, Chevy as the economy brand, GMC as the truck/SUV brand, Saturn for minivans/wagons/crossovers and basic utilitarian cars for people who aren’t car enthusiasts (bland, utilitarian, boring, functional). Once upon a time, Oldsmobile was thought of as the “experimental” brand, this function could be filled by Buick. Oh, and spin off Corvette as a stand-alone brand, NorthStar as the engine brand for all divisions. Sell all brands under one GM banner.
Brady Turley
If you want quality, affordable vehicles, your going to need to eliminate a large cost adding factor in the building process. Add it together with the statment above and you may figure out what it is. But until the cost of building a vehicle drops, GM’s got a bit of a challenge to get customer car cost down. Im actually surprised the vehicles don’t cost more. Today people are so spoiled with cars that only need gas and the occasional oil change, they dont realize how good they really got it. Fuel efficency and horsepower are no long polar opposites. If they arent combined, its not going to sell. GM does a great job of fusing them together.
SteveG
So, you guys are going to change the name of the Cobalt to the Cruze!?
I think I’m going to projectile vomit.
Cruze!? I was waiting for GM to come out with a replacement for my Cobalt and now they think I’m going to buy a Chevy Cruze!? Who in Gods name came out with that idiotic, moronic, witless name? I didnt think they should change the name at all but I would have had no problem if they changed it to Nova, Chevelle, Monza, even Optra.
To make matters worse they are waiting until 2010 in their weakest market to sell the replacement while not improving the current Cobalt at all! What do they think the resale value will be on current Cobalts? What about all the Cobalt fansites that exist now?
Cruze? Oh man, I think I am going to have to jump ship this time. Its just not worth an ulcer trying to prop up a company as clueless as GM. The next Focus may be my next purchase or the Mazda 3.
GM, you deserve whatever fate befalls you. I am nauseated right now.
Tom B
Just read that GM is lobbing U. S. government regulators to back off increased gas mileage standards in the 2011-2015 time frame. This is the exact opposite of what is needed. GM clearly is out of touch with reality never mind any kind of an industry leader. The Volt and any GM plug in hybrid electric seems to be too difficult for the Boys in Detroit. Let there be no more Volt ads, please. While GM Executives go on vacation, begging regulators for slack,GM stock goes down,
Toyota & Honda fortunes go up. GM needs too wake up and deliver product that is needed. instead of can’t do speeches to the government.
Rum Doodle
The Opel Agila
When are we going to be able to buy one of these at our local Saturn dealers? Opel Agila
Rum Doodle
~ “Well, it’s starting to get a little quiet around here as GM gears up (or is it down?) for the annual summer shutdown period observed by U.S. automakers every year.”
Draw your own conclusions — no added comment necessary:
Top Toyota engineer dies of overwork
Chris (Toronto)
To SteveG:
Wow, relax. This is, after all, the name of a car. Go for a walk, relax, switch to decaf.
There are many more important issues in the world to get upset about.
Chris (Toronto)
To Tom B:
Toyota is closing plants and reducing sales forcasts, too. P.s. while GM shares have tanked (I am a large shareholder), check out Toyota’s stock price as of late as well - it hasn’t been this low since 2005.
GMisCARKING
The new BMW 3 Series facelift is really disappointing, which makes the Cadillac CTS even better. The CTS, as a mid-size sedan, has the perfect size and proportion, and here’s the dealbreaker, ample rear legroom! The interior is simply fantastic! A great, sporty sedan for the comfort of four full-sized adults. It’s bigger than 3 Series, which is a compact, yet has a price that’s lower than the 3 Series! I hope GM won’t tone down the CTC coupe too much.
The timely introduction of the coupe and convertible of CTS will continue the renaissance of Cadillac. I hope future generations of the CTS will be even better! And I wonder how they will evolve the Diamond-theme design language?
Robert Wilson
Here’s a very interesting article about the top 10 automakers in terms of average fuel economy:
Just a preview - Chevy #3, Pontiac #6, Saturn #7 and Toyota #10.
http://autos.aol.com/article/general/v2/_a/best-worst-automaker-fuel-economy/20080711132109990002
Norman Conquest
“…it’s starting to get a little quiet around here as GM gears up (or is it down?) for the annual summer shutdown period observed by U.S. automakers every year.”
How long does GM’s annual slowdown last? Does the auto industry in the rest of the world also sit on their hands through the summer?
Norman Conquest
Robert,
The charts in those articles mean almost nothing without weighting them for the number of vehicles actually on the road.
So what if the straight-line average of Chevy models is No. 3, if the number of Tahoes, Avalanches, Suburbans, and Trailblazers actually in use far outnumbers the Aveos and Cobalts?
Robert Wilson
Still an interesting article nonetheless. It may be “meaningless” to you, but then what is?
Just for your info - the July 2 week shutdown has been a practice in the US auto industry for at least a couple decades. All of the automakers employ some sort of shutdown cadence.
Bob
Rum Doodle
More from GM on the Opel Agila
These GM-Europe press releases on the new Opel Agila have so many good things to say about the car, it’s hard to believe GM-North America apparently has no intention to bring the car to North America. Go figure. They way GM-Europe describes it, it sounds perfect for the changing and emerging North American market.
Opel Agila Press Releases
Rum Doodle
~ “All of the automakers employ some sort of shutdown cadence.”
Robert,
Yes, they do and have for many years (decades). The reason — and it’s a good one — is and was to retool the assembly plants for the next year’s production run.
But things have changed since 1957 when a plant had to completely shutdown in order to change all the dies and jigs. Now some models continuing being built year to year with little change, and don’t need assembly line down time.
There is also little reason white collar workers in marketing, engineering, customer relations, finance, and design should need an annual break en masse.
One would think that for a company fighting for their very survival, design and engineering would be almost a 24/7/365 process.
Tim
Rum Doodle,
I can definately understand where you’re coming from, but I just wanted to say something. As a GM employee myself, I agree that GM is fighting for it’s survival, but that doesn’t mean GM employee’s personal lives should suffer. I know the auto industry is one of the only industries in the US (I do think that summer shutdowns in Europe are fairly common) to have a summer shut down, but it’s not like it’s free. Employees must either use vacation time or take no pay for the shut down. The only difference is that all the employees are taking a week vacation at the same time, which to be honest, is probably better than everyone taking different schedules. Even if 5 people of a 6 person group is at work, without the 6th person, something might not get done, so those 5 people that are present, are wasting time and money, whereas if they were taking vacation too, GM wouldn’t be losing as much, and the next week, when everyone is at work, the work will get done.
And you say that design, egineering etc should almost be 24/7/365 which for the sake of the company is probably true, but again, you have to remember there are real people working here, we aren’t just a bunch of robots. It doesn’t matter is we are losing billions a year, or raking in billions per year, people are people, and need time off.