Plug-in hybrid technology will be applied to one of GM’s four core brands
By Tom Stephens
Vice Chairman
Let’s face it. We’re making a lot of difficult yet necessary decisions these days to ensure GM’s long-term future, and Fritz Henderson’s recent announcement to pull forward the resolution of the Saturn, Saab and Hummer brands by the end of 2009 ranks as one of the more difficult.
These three brands have each established a loyal following of proud and passionate owners. Saturn, in particular, is known for its outstanding customer service, homecoming events, polymer side panels, and small, efficient cars. But more recently, it has been a key brand in our rollout of fuel-saving hybrid systems.
Saturn currently sells two hybrid vehicles and was scheduled to begin initially offering the Vue plug-in hybrid SUV in 2011 for use in a cooperative demonstration test fleet with the U.S. Dept. of Energy (DOE) and nonprofit Electric Power Research Institute (EPRI), a consortium of more than 30 top electric utility companies.
Although Saturn’s future is likely not to be within GM now, I can assure you our commitment to hybrid, plug-in hybrid and advanced battery technology is a key element of GM’s reinvention.
I’m pleased to let you know the plug-in hybrid technology will be applied to one of GM’s four core brands. Stay tuned for which one, and in the meantime, I’ll enjoy reading the speculation.
Even better news, the introduction of this technology will not be delayed. We are still planning initial delivery, of the plug-in hybrid vehicles, which use a modified version of the GM Two-mode Hybrid system, in 2011 to the DOE and EPRI for use in fleets.
The Volt and plug-in hybrid vehicle are two of 14 hybrid and electric vehicles GM plans to offer by 2012. So while it may seem at times we’re taking a step back, we’re really taking two steps forward.
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Good to hear this and it makes sense. It is obviously either the Equinox or the Terrain. I say do both as they share everything under the skin. This is also why there is no delay in the technology seeing as the Vue shared its components with these two. Actually, I think the Equinox should get it as it will be the volume leader and Chevy is the flagship brand for GM.
So the government is taking you over ha?
The blind leading the blind.
Seriously look Tom,
They say America has no room for three independent automakers. FALSE!
It was not too long ago Chysler was the most profitable automaker in the world and it was sitting on a $15 billion cash hoard. In fact GM, Ford, and Chrysler together had a cash load of over $70 billion.
I consider the day the downfall began was when Bob Lutz was passed up for CEO of Chrysler. A couple of months later Chrysler and Mercedes eloped and Chrysler suffered its worse brain drain in history.
The day they passed up Lutz as CEO was the day we pushed Chrysler off of the plain without a parachute. The day Mercedes took over was the day Chrysler hit the ground and died.
Now today Mercedes can’t give Chrysler away. Mercedes, supposedly one of the most respectible automakers in the world basically took the most precous diamond ever discovered and grinded it down to worthless sand. Shame on them.
But I knew when the Mercedes folks flipped over a minivan several times in their failed development of their own minivan that it was a bad omen.
When they brought Chrysler that is exactly what they did to the company that made the minivan itself.
What now Fiat is going to do any better.
The blind leading the blind.
Even when we were sitting on top of that $70 billion we all knew things would not last, after all this is the automobile industry.
The root of Chrysler’s problems was Mercedes, that was completely avoidable.
The root of GM’s problems is inescapable. 10 retirees for each employee. We knew the day of reconing was coming and it is here.
But let me just say this because some of these wounds were self inflicted, but you were headed to the hospital on a stretcher anyway.
This idea that a vehicle after only one iteration will be deemed a failure or a success.
GM’s worst enemy is it introduces these great vehicles like the Hummer H3 then leave it flaot on its very fist iteration for seven years with no updates, cosmetic changes, or face lifts. No wonder GM does horrible in California.
Toyota, it’s average vehicle has 10 iterations. The Camry is on an a continuous and eternal number of iterations. Since introduction in the 70’s it’s had, What? 20 major facelifts and remodels. Compare that to the H3, only 1. I wonder how the H3 would do on its 20 iteration knowing the 1st H3 did infinitely better than the first Camfy did.
But it goes beyond the H3. GM and Detroit are plagued with “This 1st itineration better be a blockbuster or your dead next year mentality.”
Folks lets review, I told you ages ago the sweet spot of the industry is the redesign of an already successful model. The Taurus had it’s best years after it’s 3rd itineration by the 4th they destroyed the design so they kept that design for years until the Taurus died all together. At least they are bringing it back.
But GM come on. Potiac G8, after what? 3 months. Solsitice. dead after 1 itineration.
Okay so we are fixing the problem, with the new LaCrosse, new Camaro, new Malibu…
Hay and you didn’t change the name! Thank You!
But I will say this as GM struggles to avoid bankrupcy and satisfy everyone. Ford emerged from this crisis with no casualties. Lincoln, Mercury, Land Rover, Mazda, Volvo all survived and they are not weaker for it I believe they are stronger.
But killing Pontiac, come on folks. Uncalled for. You should sell it to interested and entusiastic investors.
Or just think of the millions of Pontiacs on the road today and hundreds of thousands in the future that would be a moving advertisement, a mobil coffin with a billboard on the hood and trunk that is a reminder and warning to all of GM’s blatant failure.
I look at the Pontiacs passing by and they speak it to me already and here is what they are saying…
“You buy a GM vehicle and this can happen to you too. Ladies and Gentlemen
ATTENTION!!! DEAD BRAND WALKING!!!”
To the millions of Pontiac enthusiasts, you owe it to them and to yourselves. There is no excuse to get rid of a classic American brand to make room for Subaru, Mitsubishi, et. all and the over 900 other Chinese brands and international brands just waiting to fill the void.
Right now automotive boardrooms around the world are thanking you.
So why did Chrysler’s marriage fail? Why do brands fail.
Because GM is running things, Mercedes is running things and brands are not allowed to get a vision of their own that guides them. So I said it once I will say it agian and these words are not my own.
WITHOUT A VISION THE PEOPLE PERISH.
Those simple words is why brand management does not work and brand heads when given reign over a brand was the most successful period is GM’s history. The storied 50’s and 60’s when GM’s market share was well the 50’s and 60’s.
That is why Pontiac will be successful on its own. But GM fears a successful and independent Pontiac.
People, I fear a dead Pontiac and a slew of weak Detroit brands following closely behind.
Welcome to the Fastlane Tom,
I think the unnamed plug-in hybrid is likley to be a Buick – which would be a great outcome.
Given plug-in technology is still new and expensive, it makes sense to fit this technology to a luxury brand like Buick.
On the other hand, the Chevy Volt isn’t such a brilliant outcome.
Chevrolet is a value brand ..a brand for the people. Chevy is not a cutting edge technology brand for the wealthy.
An extremly expensive EREV isn’t the right car for this brand..
Those who can afford Volt would rather be seen in a BMW or a Cadillac.. those who want one will feel alienated because they can’t afford it.
Chevy should concentrate on really good, well designed and engineered gas cars.
Technologies like direct inject & displacement on demand should feature in Chevy cars.
Camaro is a great outcome for Chevy – a well designed, surprisingly efficient and very affordable car.
Plug-in & EREV should be developed for Cadillac first and then trickle down to Buick, GMC and finally Chevy. (I worry every-time I wonder how much money GM will be loosing on the Volt)
Trickle-down is a pretty simple philosophy, the Europeans have mastered it and GM must adopt it if they are to survive.
Dear Mr. Stephens
I realise times are tough at GM, but the company has loyal followings for many of the brands. I was particularly miffed at the closure of Pontiac, having had more than one Trans Am. I am now a Corvette owner and fear for the future of “America’s Sports Car” since the decisions at GM don’t seem to make a lot of sense. When you say you are “pleased to announce” another division will develop a plug in hybrid, what are you thinking? This makes no sense with the Chevy Volt coming which is at least an idea that should work well . I think the idea of an extended range platform such as Volt is the only sensible approach unless one wants a very long extension cord dragging behind you if you want to do more than run to the store for milk. I would suggest to you that GM and Obama think carefully about the decisions in the works….BMW is becoming much more attractive to me.
GM needs put their foot down on dealerships, the larger ones in particular. We are a smaller dealership in an upstate NY community, we have customers who are very loyal and continue to buy from us for two reasons; nice people and excellent service. We have several customers who go south for the winter and then return for the summer. Just yesterday a nice little old lady, Buick owner, came in and showed us a bill from a dealer in Bradenton, FL, who charged her in excess of $2,000 for a coolant issue, something we estimate should not have cost anything more than $300 to repair. The poor women was charged for an injector flush (not recommended by GM unless necessary), a brake system flush (not necessary but ok, we understand that one even though it had nothing to do with the problem), lower intake gaskets (never seen this on a 3800), upper intake gaskets, water pump, …. the list went on and on. This was excessive, what are we, the local small Town dealer to say to this woman? Honestly, we told her sorry for her issues and truthfully, yes, the majority of those items were not necessary and probably not the problem. Everybody in her community told her she was ripped off and to go look at imports, “they don’t work this way” (which was also know is probably not true either, but it’s the misperception GM has), what a way to keep your customers GM.
This is a huge concern, you need to force dealers to eliminate the commission way of working, you are pushing customers away with this garbage. Our customers trust us and none of our employees work off of commission for this reason.
You can read any online car discussion board and there will be countless replies of people who can’t stand their dealership, you need to change this. We have Corvette people who will drive 300 miles to come to us for repairs, they don’t trust their local guy.
This leads me to another concern, your recent announcement to cut dealerships, my guess is you’ll kill us, the local loved dealership with a 80 year history and solid customer base and keep the big city robber who cares for nothing more than to turn a dollar, regardless of how they do it.
Just to add another comment…I agree with above that the relationship with your dealer is important. I purchased my ‘Vette from a rather small country dealership since the dealers in Indianapolis seemed pushy, not knowledgable and irritating. How could anyone drive 300 miles in a “plug-in” vehicle for service? If you destroy these smaller dealerships what then? One benefit of going to Lexus or BMW is the way dealers treat their customers for both the purchase and service experience. Consider too that driven normally or even a bit aggressively and the range for your pure electric drops so dramatically as to be laughable. What happens to battery capacity in 100+ degree weather? Once again, I would look at Top Gear when the Tesla crapped out after 50 miles of aggressive driving. Great. An $80,000 sports car that is great for short shopping trips but an enthusiast cannot even take on a moderate road trip!
I may be wrong, but it seems true hatGM has a little bit neglected this program.
GM is currently under a very difficult and a challenging financial situation. But, I still believe one of the way to get GM out of all financial mess is to bring this technology to the market ASAP. It is very good for GM to establish itself as leader in fuel efficiency, but I think this should apply to evry segment .
“I’m pleased to let you know the plug-in hybrid technology will be applied to one of GM’s four core brands. Stay tuned for which one, and in the meantime, I’ll enjoy reading the speculation.”
Nice attitude. Maybe if you were more of a leader instead of one of the countless lemmings pretending to lead in your company, GM wouldn’t be in the bankrupt position they’re in now. But not to worry. I’m sure taxpayer dollars will continue to keep your outstanding leadership skills employed for another year while you urinate in the wind.
The mideast market 2009 GMC Terrain is the same as the Saturn VUE. And that GMC Terrain is not as hideous as the upcoming 2010 GMC Terrain. (What an embarrassment!)
So, I hope the plug-in two-mode hybrid still arrives as the Saturn VUE-style GMC Terrain. And I hope the new 2010 GMC Terrain never sees the light of day.
Tom,
Your analysis of Saturn as a brand was very good (I would also mention the no-haggle pricing policy and 5 star safety ratings). What I would question is why GM tried to reposition the brand and eliminate what made it unique from your other brands, ie no more homecomings, eliminating the polymer panels, the Saturn exclusive Spring Hill plant and also moving the brand upmarket in price. It is hard for people to be passionate about a brand that was reformulated and is now lacking key product attributes.
What does GM plan to do with all the Saturn tooling sitting unused that could make a variety of fuel efficient vehicles on the same common platform at a low cost? This would help your plants to run at full capacity even as demand flucated.
Mike, you as a small-town dealer are an important cog in the wheel of customer satisfaction that is sometimes lost, as you point out, in the “big city”. Unfortunately, because you would only charge $200 for a potential $2000 job you will surely be on the list of under-performing dealers scheduled to get their walking papers on May 11. Well, that’s my fear, that I hope is unfounded, that GM will cancel dealers more based on population within a certain radius rather than true customer satisfaction. Hope you are still here a week, month, year, decade from now.
Plug in hybrids for a test fleet 2 years from now ? 500 electric Mini Coopers are scheduled for use in New York THIS YEAR ! I don’t get it, all the technology has been available for so long, and GM will be late to the party again. How long before the Mini has a small engine to drive an alternator to extend its range ? Probably before 2012, and that would be Volt territory.
I’ve always been a GM fan, but it gets frustrating to see them blow every opportunity to be a leader by dragging their feet.
Mr. Stephens,
Your hybrid technology and fuel efficiency need to be applied to ALL of GM’s four core brands. That strikes me as odd that you’ll enjoy reading the speculation. We’re not playthings for whom you sit back and are amused, we’re potential customers.
- Christopher Popa
“I’m pleased to let you know the plug-in hybrid technology will be applied to one of GM’s four core brands. Stay tuned for which one, and in the meantime, I’ll enjoy reading the speculation.”
Why only one? And why are you so indecisive about deciding which one? And why the second-grade game of making us guess, as you “enjoy reading the speculation.” Is that a way of using us as a focus group to help you make up your minds?
If your plug-in hybrid technology is as significant as you claim, all four remaining core badges should get it ~ even GMC trucks.
“Although Saturn’s future is likely not to be within GM now,”
No kidding. You just better hope someone like India’s Tata Motors or Mahindra doesn’t end up owning Saturn and start building cars in the U.S. and selling them in direct competition to you.
You realize I hope that Saturn didn’t have to end up the way it did. You had better manager your four remaining core brands better than you managed Saturn.
I know this has nothing to do with the subject of the article here, but I know what I am about to say will not be addressed in an article on here.
ATTENTION: This is for whom ever’s bone headed idea it was to take a bunch of customers to a lush spa and country club at this time is just outrageous!!!! I have been on the web defending you everyday for months. Now I look like an idiot. How am I suppose to defend that? I realize that you have to do that sort of thing to generate fleet sales. However, you are suppose to go before the government in 2 weeks for the review of your restructuring plan in hopes of a loan and not bankruptcy. How do you think this looks to the general public? The media is on a frenzy today reporting this. Did you not see what happened to the banks when they did that? I am ashamed and embarrassed. You made all of us look bad. I have an idea, why don’t you let the workers take over the company. I am quite sure they could do a much better job running the company than the management we are getting right now….
GM needs to re-brand itself as the engine of change before FIAT beats you to it.
“Struggling GM hosts buyers at Arizona spa”
And here I thought crushing the EV-1 was the stupidest thing GM could ever have done.
Its about time that GM is getting into Plug in Hybrids, at least some is going to. Maybe to little too late with the economy and everyone buying Toyota Hybrids. Should be interesting in the future.
GM made a deal with the Devil and this is the result.
I would love to say that I’ll be buying a GM product anyway, but the fact is long before GM was in financial trouble GM told some of their most loyal customers to stuff themselves. Now, suddenly the new GM customers are showing their fickle mentality and GM wants their loyal customers back. Promises of plug-in hybrids, focusing the brands, blah blah blah.
The last vehicle from GM that I was interested in was the G8. Sadly availability and the markup in the Phoenix area ended up making it a joke when compared to the Charger R/T & 300C.
I didn’t leave GM, GM left me.
Now that the Government and the UAW are running GM, the real question is why?
Why spend too much for something I don’t want, just to support a bunch of overpaid employees.
I worked in a Union Shop, the only way the UAW can save GM from this spiral would be to film a commercial and discuss 1) how they are going to slash their now legendary pay to help their company, 2) what steps they have taken to dramatically increase quality, 3) discuss how now that the UAW has ownership in the company how important the company is to their existence.
Furthermore GM should take the Saturn model of sales and customer service and extend it across the board. I’d be willing to bet that the dealers that are closing are not the ones with the best CSI scores, instead the closures will be the least active from a sales standpoint. GM needs to implement a truth in pricing program. That is post the dealer price, the markup, which would need to be standardized (or at least in a narrow range by region, say 3-6%) and the final price on the window sticker. The dealer makes $X. Then, have GM back this price. No other dealer can undercut the price, if they do, GM will reimburse the customer and address the undercutting dealer directly. The incentive is to cut the sales staff to a smaller number of very knowledgable sales folks vs. lot sharks that can’t answer any questions but love to bash the competition.
Finally, streamline and heavily regulate the service process. Nothing is worse than bogus service. Keep it legit, honest, and priced fairly. Free maintence for the first 2-3 years would go far to help the longevity. Lets face it, most peple are bad at maintenence, let GM do it for the first 3 years and most folks will be amazed how reliabe the cars truly are.
Apologies is this is ever so slightly off topic Mr. Stephens..
Now that GM has four core brands, it needs to ensure it is offering a diverse range of great cars and trucks within these strong brands.
I say this because with the demise of Pontiac & Saturn GM has lost some unique offerings and is left over with many cars all based on the same platforms.
Take the Pontiac G8 as an example; an excellent car but also entirely unique car (there are no cars in the Chevy, Buick, GMC or Cadillac showrooms that are similar to this car)
On the other hand, you can still see a lot of overlap and ‘badge engineering’ between the offerings within the 4 core brands.. all ‘competing’ against each other.
Please consider taking Pontiac G8 into Chevy showrooms.
This car would not compete against any GM cars – and it would offer a great solution for those who just love the economy and performance of Camaro but need a 4-door car… and please do remember that despite the current economic environment; Camaro seems to be one of the only cars at GM that actually has a waiting list!!
In summary: GM needs to maintain a diverse range so that it can quickly react to the ever changing demands of customers.
Let’s not all narrow our focus to cars like Volt and find that customers’ needs have moved on to something else (this has happened in the past but nobody can afford for it to happen again!!)
I really believe GM has all the ingredients to succeed and grow strong beyond these current times.
Ted, you are right.
There are many causes to why GM always is dragging.
-They try to convince people to buy cars that the GM management has decided to build rather than listen to what people want to have
-They are protectionists which means that engineering and production for different things is not located where it can be successful to have them
- They are more interested in their processes itself than focusing on the result
There is more to say, but I think it would perhaps be best if the 100 year old company could start from beginning, young, more flexible, less prestige, new technical solutions, fuel efficient cars etc.
GM must think new and think global!
I agree with Ted. You say thtat “plug-in hybrids will arrive as part of a test fleet — TWO YEARS — from now? Why do you people continue to drag your feet? It’s like you have to be dragged kicking and screaming into this new world while reciting the usual GM mantra “It’s right around the corner.”
Well, the “corner” came and went. I think your efforts are simply too lackluster and too late to save you. GM’s dinosaur-like sauntering in this fast, highly compettive car market is sinking you.
How tone deaf are you guys? Struggling GM hosts buyers at Arizona spa
“The affair is scaled back from previous years, says GM spokesman Terry Rhadigan. Guests have to pay for their own golf outings, he says.”
Well, at least you had enough sense to make the guests “pay for their own golf outings.” I guess that means in past years you paid for everything, right?
Well, that’s off topic, but too remarkable to ignore: http://www.detnews.com/article/20090508/AUTO01/905080435/1148/Toyota+posts+$7.7B+fourth-quarter+loss
Clint, if GM hosts buyers at a spa, don’t you think that’s still much more forgivable than banks paying fat bonuses to their management, which brought the whole world into this mess? Seriously, I believe there are other things to worry about.
Gereon,
A spa in Arizona isn’t the same as one of your European spas. An Arizona spa is a place for a bunch of well-heeled fat cats to get together, do some grippin’ and grinnin’, drink expensive Scotch whisky, smoke Cuban cigars, play golf, and make backroom deals.
In the current environment (losing six-billion dollars last quarter), that’s not a place for GM to be spending our money when their very existence is at stake.
James S. wrote
“The last vehicle from GM that I was interested in was the G8. Sadly availability and the markup in the Phoenix area ended up making it a joke when compared to the Charger R/T & 300C.
I didn’t leave GM, GM left me.”
What is going on at GM!!??
Mark-ups on the G8?? That’s crazy!! Did GM actually want this car to fail??
I think GM needs to give this award wining car the chance it deserved: Put it in Chevy Showrooms and end this dealer mark-up culture!!
Im thinking Take the G8 – plug in the HFV6 direct inject (DI) technology and you’ll have a V6 sedan with better fuel economy than the newly introduced Buick LaCrosse (see numbers below) and in Chevy dealerships this car wont just get automotive media awards – it will get sales results!!
G8 V6 Without DI
3884 lbs
17mpg/25mpg
LaCrosse With DI
4199 lbs
17mpg/26mpg
Mike
Regarding the dealer in Bradington that you say ripped your customer off.
1. If you are a dealer and have not seen the lower intake gasket leak on a 3800 engine you must not service many cars.
2. I know that GM does not recomend flushing injectors but we see on a weekly basis cars that have driveability problems caused by plugged injectors and carbon build up in the intake systems.
3. Technicians that work on commision have a much better success rate at fixing cars right the first time as if they don’t they will not get paid to do it the 2md time like a tech on hourly pay.
4. I personaly know the Service Managers of the GM dealerships in Bradington and they all run very reputable operations.
I do not believe that this is the place for dealers to bash other dealers. It acomplishes nothing.
“Four Core Brands”, forget the 4 core brands. Just have 1 brand GM, keep all your top selling vehicles badged as they are currently and keep your customers. I’m a PONTIAC girl and have been all my life. It hurts to think about the future Pontiacs, what might have been……….