Small Cars to be Built at Idled UAW-GM Plant
By Gary Cowger
Group Vice President, Global Manufacturing and Labor Relations
Friday was a very exciting day for us at GM. We took a significant step toward reinventing GM into a leaner, more focused, greener and cost-competitive automaker.
We announced that morning that we’re planning to build a future small car here in the United States at one of the idled UAW-GM plants. Small cars represent one of the fastest growing segments in both the U.S. and around the world, and we’re the first manufacturer to commit to building these vehicles in the United States. We’ll determine which site a little further down the road, but we’re committed to do this in the U.S. (The global small car market is growing fast enough that there will be plenty of production to go around.)
Beyond making sense from a market demand standpoint, this new capability will also help us meet the new fuel efficiency standards the President just announced. We intend to be the greenest automaker in the world, and along with upcoming vehicles like the Chevy Volt and Chevy Cruze, this new small car will be a significant piece of that effort for us.
We’ll be able to build up to 160,000 small and compact cars a year at the re-tooled plant. It won’t be easy; this is a challenging segment in North America, and bringing a domestically produced small car to market here in a cost-competitive and profitable way will take a special effort from everyone involved. But it’s the right thing to do, and together with our UAW partners we’re going to make it work.
Right now, about 67 percent of the cars and trucks GM sells in the U.S. are built in the U.S. With this announcement, we expect that U.S. production levels will increase beyond 70 percent through 2014. No other manufacturer in the U.S. manufacturing has a percentage that high. We’re proud of that, and this new small car is going to be an important part of our future.
We’ll have more details soon on this announcement, but I wanted to share our excitement with you today about this plan. My question to you: what do you think of small car production here in the US, and how would you generate market demand here? Which facets of a small car would you emphasize if you were going to roll out this kind of car?
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Many Americans are so disgusted with GM that we will never, ever again purchase anything, small car, big car or truck from you.!
Janesville can build it. Over 4.8 million square feet. You could even do all of the sequencing and seat building in-house. 100% competitive operating agreement as well. Dedicated work force, generous tax incentives = win, win for General Motors and Wisconsin. Bring it home to the heartland.
This is great news. We need to do this quickly. Let’s build the best with the most value small car and people will buy it. Also let’s start sharing all the good GM news.
Fun-to-drive, affordable small cars with a target of 60 MPG highway are a reality now in Europe… There’s no reason to put off the adoption of fuel-efficient clean diesel technology here in the States any longer. Give the Spark a turbo-diesel and let it go head-to-head with the best of the bunch.
Three words to your last question: practicality, efficiency and fun. The car needs to have all three traits anyway if it is going to be a serious competitor to the Honda Fit, the Scions and the upcoming Ford Fiesta and Mazda2. So you just need to point out these three things as the cars virtues and simply not mention the competition. They aren’t as practical, efficient, or as fun anyway, so why bother mentioning them?
I would also seriously look at the interior materials list and make sure the plastics are top notch. Use different shades and maybe some fabrics or other elements to keep the door panels from looking like one huge slab of plastic. Ford and Toyota both do good jobs in this respect, so take a look at what they’re doing and see if you can improve on it.
I’d also ask you to at least consider a new Delta II based HHR as well. The Orlando looks to be more a competitor for a small van such as the mazda5. While that isn’t a bad thing, it may not appeal to current HHR buyers and former PT Cruiser owners who have seen the light and are looking to switch to GM. There are plenty of other variations on the theme that can be explored, and maybe AWD can finally be an option so that the various publications will finally stop calling this little crossover a wagon.
First of all I am glad to hear that you want our input. After all we are part owners as tax payers
Anyway, I think focusing on the design is the most important thing you can do to make this small car something Americans will buy. It has to be fun, timeless, sporty and utilitarian. Such a car would make you smile and endure for at least a decade. This would save money and the universal appeal could be built all over the world. Think about the current Beetle which still looks good after 11 years. ( I dare say the design could be smaller but he wide stance and rounded shapes make it muscular and friendly. The next car that never seems to go out of style is the Mini. It also is not a model example of utilitarianism since it is a tad bit too low. Still they are fun to see running around town and come in infinite color variations. So think about the enduring timeless look of your future small car. You know a GM car that had some of this quality was the Solstice. Imagine those organic smooth shapes in a taller hatch. This new small car should be offered in a four door hatch and a two door fastback hatch.
Compare these cars to the current choices we have from other manufacturers. The Fit, Yaris, Scion, and even the Aveo. To me these cars are just very forced and pinched in their lines. They all look like fat eggs riding on tiny wheels – mostly the Fit here. The yaris is so convoluted. The Aveo looks ok but a bit skimpy looking. The Scion is more muscular but still very forced.
If you really focus on design and offer the car with auto stop start system then there will be millions running around. Please Don’t forget to include larger wheels and wheel wells as standard. This will set it apart.
While we are on design – I have to say I am sorry to see so much emphasis on the Cruze. I am already growing tired of it’s dated design and it is not even out yet. The Volt is also very dated. Why not something more classic and organic like the Tesla Model S?
I hope you guys really get it now – that it is about design and quality!
I will be aiming to purchase the Volt around 2011 after production ramps up, a quick mention of the competition, My boss has an Acura RSX he is on his second trany and the engjine just blew up at 66k miles, talk about quality, I mention this to all my friends that drive foreign cars, and yes folks they are foreign cars even if they are made in the U.S. NEVER HAD TO PUSH A GM PRODUCT HOME AND NEVER WILL. 78 CHEV VAN 240K STILL GOING STRONG, 2003 CAVALIER LS SPORT COUPE 66K OF TROUBLE FREE MILES. I refuse to buy foreign product because I am an AMERICAN AND SUPPORT AMERICA, so lets hope the rest of the country wakes up before all of the jobs go overseas!!!!!!!!!!
David, that was an ignorant remark with no factual statements to back up your comments .
GM is forever in my heart. My prayers and best wishes to all of those people who did all they could to keep GM out of Bankruptcy. Thank You for building all of my vehicles that I have ever owned, 11 in all, (we wont count the ‘84 VW Rabbit I had for 3 weeks in high school, piece of junk!).
It is very saddening that Pontiac is going away. Hopefully we will see it come back with Excitement in the future. Thank You for many years worth of dependable vehicles and to Rick Wagoner and Bob Lutz, I know you tried to turn this big boat around despite the media spin. May this debacle end quickly and may the after affects be minimized. My prayers go out to you all. God Bless General Motors!
Follow the example of the most successful car launches of the past decade (Beetle, PT Cruiser, Mini) and sell your new small car with style, style and more style. The styling of this new small car should be revolutionary and unforgettable.
Next, pack it with high-tech gadgets. Think of some new killer-app for OnStar that would compete with Sync.
Sell handling more so than acceleration.
Don’t mention practicality, patriotism, or MPG. Those things may motivate people but are unsexy and should remain unspoken.
Finally, to keep costs down, don’t make too many variations of this car at the factory. Most small car buyers want something loaded so build them all that way. Have only a couple factory options and a lot of accessories like Scion.
sounds like a great idea. why not call this new small car project of building a high quality small car in the usa to compete with the japaneese a Saturn. maybe you could build it at the spring hill plant in tennessee. somehow this sounds familiar………….. deja vous all over again.
While I’m very happy to hear a plant will remain open in the US, lets be honest, keeping US jobs is the least you could do for use taxpayers after burning though billions of our dollars. We all know that had to moved production to Mexico or China, angry mobs would have been outside your headquarters in Detroit with pitch forks. Heres a novel idea, move as much production back to the United States as possible and show the world how America competes!
Unless consumer perception towards small cars changes, I don’t think it is worthwhile making these cars in the US. You would only be building them here for political reasons. I drive a compact myself but cannot convince even one of my friends to go for a small car because of the perception that they are cheap and unsafe. If the new GM is to be profitable, better to import small cars for now while building the capability to produce them in large numbers in the U.S once demand picks up (i.e gas prices go high).
@MPGomatic : the US emissions regulations do not allow companies to build diesel cars and sell them profitably. The cost of diesel emissions after-treatment is not something consumers seem willing to pay for. Hopefully the Govt. steps in and subsidies the cost of diesel vehicles/diesel fuel. Only then will automakers seriously consider selling diesel vehicles here.
@Chris I hope they bring the new Astra here!
This is a joke, right?
One business day before GM files for BANKRUPTCY you, sir, have the audacity to blog about your “excitement” about small cars? Asking for ideas how to market them??
Gee, maybe you could sue California like you did in 2006. Or maybe you could hire a Chairman of North America who thinks global warming is “a total crock of sh**.” Oh, wait, you already have one of those.
You guys failed.
You are a failure.
Too bad it took $20 billion of bailout money before the bankruptcy became reality.
What’s not reality is you. And your “excitement” about building small green cars.
HA HA HA HA hhhaaaaa Haaaaa!!
You must think the American people are complete idiots.
You guys are the idiots. You drove GM into the ground.
I will never buy GM. Because of execs LIKE YOU. NEVER!!!!!!!
Say hi to the bankruptcy judge for me.
Maybe you could forget about small cars and invest in big heavy military-inspired trucks!!
You could call them something cool!!
like HUMMER!!!!
HUMMER!!!!!!! HUMMER H2! HUMMER H3! The possibilities are endless.
If states like California express any concern for the environment you could just sue them!!!!
oh, wait, already tried that right??
HUMMER!!!!!!!!! HUM HUM HUM HUMMER!!!!!!!! I am going to drive my HUMMER to BANKRUPTCY COURT!!!
What would bring me back…..?
1) The reliability of American cars is a major concern for me and many of the people I talk to. Yes, I know that America auto reliability is up over the past few years, but the perception of low quality has been hammered into us for years, so its hard to turn that perception around.
lf GM offered a 4 or 5 year, 50-60 thousand mile bumper to bumper warranty, I’d feel much more comfortable buying one. Case in point; I bought a Mazda a few years ago, in part because they offered a 4 yr, 48,000 mile bumper to bumper warranty. That car was trouble free, so I bought another one, again with the 4 yr bumper to bumper. Again, no problems so far, and at 40,000 miles, I have the peace of mind I am still covered.
A couple of years ago, Mazda reduced their new car warranty to the industry standard 3 yr, 36,000 mile warranty. But, based on my experience with my other two Mazda’s, I would still consider a new one.
2) Long term model loyalty – Something I think American manfacturers have lost. Honda has been making Civics/Accords and Toyota has been making Camry’s/Corolla’s since the 70’s. The cars have always been reliable, and owners can’t wait to see the next model, which are just different enough, yet at the same time just similar enough to bring in new owners while keeping a lot of old customers.
What did US manufacturers do? Camaro…disappeared for a while. Malibu, Monte Carlo, Chevelle, Cutlass, Firebird, either disappeared or new models were often too different or boring to build any loyalty.
Another example is Saturn. I had a 1993 Saturn, and loved that car. But when I was ready for a new one, the car had lost it’s sporty look, and was so bland it was almost indistinguishable from other cars. It looked kinda like this car and kinda like that car, but no identity. I mean the first owners used to drive to the factory for annual picnics! Didn’t that send a message? Who’s going to drive to the factory to have a barbeque with other Citation owners?
3) Build something that people say, “Hey, that’s kinda cool, I’d like to drive that. I think you’ve done a great job with the new Monte Carlo. It’s the first Chevy I’ve seen in years that made me go to the dealer. Same thing with the Chevy Spark.
Look at your legacy. GM was the trend setter in the auto industry. It’s time to do that again. If you do, I’ll buy one.
oops…from my earlier comment…I meant the new Malibu, not Monte Carlo
Its a new era and its an unfortunate new start for GM, but it works out if GM’s CEO’s actually listened to the people and the demand for Hybrids. GM should be the first to start over and be the leader of the first full production of all hybrid vehicles. Every model that comes out of there production line should be a hybrid that meets consumer needs. Not a $60K hybrid luxury SUV or sedan that middle class families cant afford, but a more gas efficient and affordable and less bells and whistles for the price. GM should keep it simple on a hybrid like cloth seats, stereo, CD, MP3 player. No bose stereo, 6 speaker surround sound, leather, sunroof, Navigation, seat warmers and all the extra stuff that makes hybrids expensive. If they use carbon fiber hoods and trunks and cut 10% of the weight on each rim it will make the vehicle more fuel efficient. I know I’M not the only one saying and thinking like this but its commonsense. Thats why Honda Civic and Toyota Prius is working out so good for them. Less is more
No Pontiac, no customer! You lost me as a loyal Pontiac customer for decades. Your company makes me sick with your decisions. Your going back to bean counters running GM instead of car guys making cars Americans want. That is what got you in trouble in the first place!
The issue isn’t that Ford, GM, or Chrysler are unable to build quality passenger cars. Of course they can. The issue is that they’re all ugly ! My wife & I purchase new passenger vehicles every three years and always give the big three consideration but when all is said and done we purchase BMW’s, MB’s, Audi’s, Lexus’, or Infiniti’s. Why you ask ? Becuse these vehicles are designed to be driven (drive brilliantly), will retain resale value, and have attractive styling.
Imagine the first look you took at your wife or husand. The reason you took a second look and struck up a conversation was because the individual was attractive to you, not becuse they were ugly. Hence, to get consumers into showrooms, big three passenger vehicles must be attractive. This principal applies not only to luxury but also economy passenger vehicles. Young adults in our city all drive small Toyota’s, VW’s, etc.
The big three just don’t get it.
Louis
Whoever suggested building an economical small car in an idled GM plant here in the US needs to be the next CEO of GM, because that person GETS IT. Although, I suspect that person was the President of the US someone at GM could take credit since there are no ethics standards in business.
When I heard GM was going to import cars made in China in the future for sale in the US I was so angry thinking of our tax dollars being wasted on them. I pictured myself picketing places where these Chinese cars would be sold.
GM needs to think of the immediate future of the poor and working poor needing an economical car to get them to low paying jobs. Mass production of these economical cars could help wean GM back into a major player of production, help the workers, the purchasers, stock values and just the best thing to do. And don’t forget we are tired of the lack of choices in colors, we want some colors on the dealers lot to choose from and don’t charge extra if it’s a popular color, give us a break.
I am a loyal GM customer. I always love my gm cars. I always do research and find the most reliable and comfortable cars are GM. This is not and has not been a given, but if you research your purchase, GM usually has a fit. I’ve owned Cadillac, Chevrolet (current), Buick, and post Geo Tracker.
Your real question above is how to market, since small cars have never really worked here in the past. I urge you to look at the amount of people that are hungry for a car they loved from the past. The 1977-1980 For Fiesta is a prime example. That car was a blast to drive. It held the road well, was geared to get moving if it needed to, and got 40 miles to the gallon. All with a English caterpillar 1.6 liter engine. The Chevy Sprint /Geo Metro are not as fun to drive, but get 50 miles to the gallon. The interior products were not long lived though. But out in the used car purchase world, these cars are sought after. I know that my experience in this is limited, but if this is what I know, you have someone there that has your real answer. I know that there are more examples of this phenomenon.
The 3 cyl engine from the Sprint and Metro gets 50 miles to the gallon. Since you already have the engine available, you just need the body. Immediate ability should prevail. The transmission needs to be tougher than the last one though. The seat fabric from the early ninties ahould also be conidered. I have a 1994 Suburban Silverado that the interior still looks like new. In 1995 you changed the seat fabrics and they did not last as long. My grey plush interior is a great product, use it again. The dash in my suburban also lasted in the sun, so those products could be used again.
My point is that America wants a small car that doesn’t feel cheap. Skip the R&D costs. Reuse what worked on your cars in the past. And give us an economical car for less than 10,000 dollars that we feel comfortable and safe driving.
GM is a huge part of our future here in America. Please tread carefully. I am one of the millions who are pulling for you.
Chevy Cavalier Z-24 became a popular style. The Cavalier’s headlight and overall look were sporty. Cute exterior and higher level interior options with comfort are a factor for small car buyers.
Cute exterior.
Sporty.
Comfortable.
What would generate demand for GM’s small cars? Make them styling knock-offs of popular GM designs.
A mini Malibu style would be a hit.
The Lexus IS is an example of small car demand. Its sporty, cute, and a knock off of the ES 350. The Civic seems to have taken some of GM’s Oldmobile concept looks.
The small car buyer wants their car to appear as normal as possible, they want acceptance for their choice. They don’t really want an odd design.
Saturn S series was fine. The Saturn Astra is a good looking alternative design. Its needs promotion and branding as a Chevy.
Big Al, My parents were first introduced by a Chevrolet/Oldsmobile dealer. I grew up with Chevy and Olds. If it did not say Body by Fisher or GM, Mark of Excellence I did not think it should be on the road. Since I started driving I have owned17 GM vehicles, 7 Chrysler, 7 Ford, 1 AMC and 1 Nissan. Several years ago GM had much value, it seems about 60 billion and the stock was $96.00 per share. Economic conditions, gasoline prices, UAW, foreign cars are just a few of the problems that they had to deal with. But, no matter who we want to blame GM mangement has not made the grade. They have squanderd away billions and if it were not for taxpayer money would already be out of business. So, many of us have decided to purchase from other manufacturers, in my families case, Ford!
Louis Luera, it sounds more like it isn’t that you don’t buy American Cars because of their styling, but rather that they’re not snobby enough. It’s all in the marketing. Some people think that anything less than Starbucks is crap too.
P.S. Toyota’s and Honda’s offerings lately have been trainwrecks lately.
Acey, it would hurt GM company’s image even more if they build a car “working poor needing an economical car to get them to low paying jobs”.
That’s that the used car market is for.
People have been slamming GM for having cheapo interiors for years. Imaging trying to build and market a brand new car whose sole appeal is that it’s super cheap? I’ll reinforce the negative stereotype that GM makes junky cars. It may work for the Tata Nano in India, but it won’t work in the United States.
If you can make it work, please do so; we need all the people employed as we can get.
From a strategic perspective, it would probably make the most sense to build the Spark/Beat at an assembly plant in south east Michigan because this assembly plant should be were the $14 an hour screw driver turners start, not the 80+K jobs bank card players(those people need to get out); once the $14 an hour people prove themselves, then you can send them to the Cadillac factory or the truck factory where profits are guaranteed and you can pay them a bit more.
What a joke! Right before bankruptcy (failure) you are claiming an “exciting day” because you plan to begin building small cars that Obama has dictated through new CAFE regs. Come on Gary, it is too little too late.
As for your small car question. Look to Honda for a clue about building small cars that people want to buy. They are well designed, engineered, and reliable. They also don’t change model names every few years. The Accord and Civic continue after 30 years. Many buy Honda after Honda because they are affordable, reliable, and well built.
While GM fumbles through bankruptcy and tries to figure out the future I am enjoying a new Acura and Audi.
Dear Mr. Cowger:
I hope GM will seriously consider building the new subcompact vehicle in Janesville!
Unlike most of your other assembly facilities, the Janesville area is not part of a larger, metropolitan area and is much, much more dependent upon the economic benefits from the local GM assembly plant and its related suppliers. We only have 60,000 people in the city and as such are going to have a very difficult time absorbing the loss of 3,000 GM and supplier jobs and an additional 7,000 to 10,000 related jobs. Local economic experts predict 15,000 to 20,000 people will move away from this area!! The loss of up to 1/3 of our population will be disastrous to what is still a great place to raise a family.
The Janesville area has excellent schools, very low crime rates, beautiful parks, low cost of living, and a great location on I90 and is only 1.5 hrs from Chicago, 1 hr. from Milwaukee, 30 minutes from Madison and Rockford. Also our electricity, gas and water rates are relatively cheap compared to most metropolitan areas. We also have heavy rail access and a 747-capable airport just a couple miles from the plant.
I am realistic and understand that economic impact to an area is at the bottom or not even on the list of criteria for closing a facility. But how about considering the local economic impact for the re-opening of a closed facility? Obviously whichever city gets its facility re-opened will be very grateful but rest assured your decision will have no greater impact on more people’s lives than if the Janesville facility is retooled and restarted.
Finally, there is no place in the country that epitomizes more the timeless anthem of “Baseball, Hot Dogs, Apple Pie and Chevrolet”. Please give Janesville a fair shake to get back on our feet along with the new GM!!!
Thanks,
Mike
Its good u want input frm us..
Well, I think u should focus on the design and the most important thing u can do is to make this small car something Americans will buy.
I wonder why the discussion of GM’s survival is all about North America without referring to the good investment decision that GM took in markets like China, Brazil and Egypt and its access to small car technology through the likes of GM Daewoo in South Korea.
I just came back from Seoul, Korea where there are legions of component manufacturers with their own technology ready to support a GM global strategy with parts that are tried and tested.
Can the commentators who write about GM look a little bit further than the end of their noses and realize that GM has its own built-in small-car solutions once it can sort out the excess and wrong type of capacity currently in North America.
Why will American people buy small cars??
I don’t see it. After this economic crissis Americans will want to get back into large cars.. and GM will be building small cars.
And anyhow, how is GM going to make a profit on small cars with UAW wages??
This is absolutely ridiculous..
Thank God there are grownups running things that know the right thing to do in these times. Allthough my old GM stock is worthless now, I think the New GM after bankrupcy will be a strong player.
I know the haters think the Chevette wasnt sexy, but I remember it differantly, I remember Willimington on 3 shifts, I remember millions of Americans enjoying foreign car ecconomy and nibleness made in the USA.
I wish GM had the guts and pride to call this new car Chevette, but allas that would only apeal to GM lovers like me, There are still some of us here in North America, Latin America, UK. lets not mention Australia right now (they would probably put a 3.6 alloytech inplace of the back seat).
Love, God speed, Enjoy the cash flow.
Jason
i hope the story i heard why they did not originally put a balance shaft in the olds quad 4 does not happen again or GM will not live on. the bean counters CAN NOT be allowed to overrule the engineers
Gary Cowgar,
Personally I am excited to hear GM is starting to focus on small cars. I have heard a lot of talk that no one wants them… of course a look around the import scene shows how untrue this is.
I don’t think the issue is about generating market demand as much as getting the right product. For a while GM hasn’t been in tune with small car buyers (in my opinion).
The Saturn Astra is a good example. As a younger buyer I looked at it and shopped the competition. The VW GTI was hands down a nicer car. It was also more expensive, but that isn’t a big deal to me.
GM needs to realize feature sets and packaging are what sell the car. If you want to sell small cars here go take a look at the sporty designs offered in Europe. Give us turbo diesels for good mileage or small high output turbo engines (like VW uses). Give us the option for advanced electronics and nice interiors. Of course sleek exteriors are high on my list.
I see no reason a small car should be outfit-able with the same options GM provides on bigger cars like Cadillac and Pontiacs. Offer heated seats, leather, multi colored interior panels like leather. Offer a regular trim car and a decked out premium trim.
As another example I saw a Toyota Verza at a traffic light the other day. And thought wow thats neat looking and its AWD. Cool. I took a look at GM and could not find a similar offering. Upon further exploration the Verza had all the features I wanted (good HP, Nav/Bluetooth, HP, Tow capacity and decent mileage). All in a car like package that didn’t scream SUV. I looked at GM’s site and couldn’t find anything appealing like that. A look around Ford’s site and the Edge and T Flex jumped out as looking cool (as compared to even the new Equinox). I’m sure not everyone will agree with me but the reality is the demand isn’t created as much as met.
Put the right features in a car and it will sell itself. Otherwise if GM can’t do that… you’ve proven to US that you dont’ have a clue.
I would think the formula is pretty simple:
As small car has to contain equal parts in a good balance of the following:
Styling
Features
Economy (better then 34 MPG) (I strongly urge a diesel engine)
Cargo Space
Interior Style and features
Electronic feature options.
Interior luxury options (even if only 10% of the cars get them).
Good warranty and service (GM really needs to improve on dealer service and how their warranties are handled/termed)
dazed,
I think you are off base. People want and like small cars they just traditionally see no competitive advantage in GM offerings. Why buy a Cobalt when a foreign car is nicer looking, has better features and is price comparable if not better?
Take a look at Civic, Camary, Jetta, Kia etc… all these companies sell quite a few small cars. It isn’t that no one wants them. Its that GM so far hasn’t hit the target yet. For example the Astra appears to be targeted at the VW GTI but it falls way out of the range when you look at them in styling and features. If GM can meet the mark they won’t have a huge problem selling smaller cars.
You are right to a point that small cars aren’t for everyone. But I think more people would buy them if they could. Personally I hesitate to buy imports just because they are imports. A certain part of me wants to buy GM. But when GM doesn’t have anything I really really like I look elsewhere or make do with what I have.
Clearly GM has some work to do to sell small cars. If GM offered a diesel Cobalt I’d probably go buy one tomorrow. Despite the fact that I don’t like the rest of the car. The idea of a GM car that can get 40+ MPG with a small turbo diesel is appealing…. then again the VW Jetta TDI is a very very nice looking car with a lot of appeal to anyone wanting style and good mileage. Mileage of a diesel will sell quite a few cars if dealers stock them. They just need to get people into them.
Leafing through an old copy of Popular Science I came across a Renault ad from 1968, 35 mpg , msrp $1745 POE. Of course that was days of $0.68 per gallon fuel in Europe (as they said in the ad copy) We’ve come so far with inflation we’ll be lucky to see this “new” GM compact come in under $15,000 I’m afraid. But here’s a target for you: you import now from Korea and dealers sell at or near $10,000. If you really want to capture this market with a groundbreaking American-built vehicle you will have to break th e$10k barrier soundly. Even $15,000 loaded up Aveos and equivalent are slugs on the market. Your competition will not be anything already here, but insteaed will be the fiat 500 and company. Outsmart Smart, offer 45-50 mpg in homegrown technology under $10,000 iwth creature features and you’ll have to expand production to second plant.
Now here’s my marketing plan that in a way keeps or places a traditional American V8 in everyone’s driveway that wants one – require/demand/include, whatever, voucher for purchase of gas guzzler with one gas sipper. BOGO, for instance, buy a V8 Camaro, Silkverado (or last of the G8’s) only upon simultaneous or previous (within so many months) purchase of a new “Spark” (sounds all-electric or didn’t anyone notice the connotation – better get a new name or change drivetrain)
“My question to you: what do you think of small car production here in the US, and how would you generate market demand here? Which facets of a small car would you emphasize if you were going to roll out this kind of car?”
Mr. Cowger,
Go for it. I now drive a VW Jetta TDI station wagon that gets almost 50 mpg*. I say to you, why not build a car such as the TDI? It’s a small car, but not that small that it’s not big enough for a family of four.
VW is now building a billion dollar plant in Chattanooga ~ so they must think their investment will be profitable. What does VW know that GM doesn’t?
I have to believe that if GM were building a car such as the TDI, you’d be selling them as fast as you could make them.
——————————
* A car, by the way, that already exceeds the new CAFE standards.
To: “Mike” from Janesville and other Janesville folks:
I don’t even know where Janesville is, but I can sense your urgency. I live in a small town whose continued prosperity depends largely on the continued success of a couple of small plants. What I want to say is that you-all REALLY need to get your A$$es (pardon my vulgarity) organized, forthwith.You need to be ready to media-blitz. You need to figure out somehow what the criteria are that GM is using to determine which plant they wish to use. Then you need to determine which of these criteria are ones that your community can affect by making changes/working with GM, etc.: tax-rates? transportation infrastructure?, etc. Which are ones that you can propagandize/ argue with GM directly or through the media saying that you do meet them.
Man, I don’t know, but I’ll bet if you organize your community very seriously and quickly, and set up a line of communication between your organized, uhh,.. committee, and GM, you can do a lot to see that the Janesville plant is the one they choose.
Don’t mean to lecture, just expressing ideas.
With Respect,
jonboinAR
I’m glad to hear about GM building a great small car here in the US. I look forward to learning more about it. Every time I go to the Saturn dealer for service the sales rep asks if I am interested in trading in my ‘98 SW-2. Unfortunately I have to say “no thanks”. There is nothing in the showroom that gets my attention. I would buy if: 1) there was an electic car available or a gasoline model that got substantally better mileage than my current car, and 2) the car has the storage versatility of my SW-2 (why are they all sedans or hatchbacks?). Also, I don’t see any point in spending $20K on something that only saves me $250-$400 a year. A versatile, electric car would save me a lot more money. It seems that no manufacturer offers the kind of car I’m looking for, so I continue to drive my ‘98 SW-2. Though I am hoping something will come along in the next couple of years. I’d like to buy another GM car. Perhaps your great small car will be the versatile electric that I’m looking for.
Reply to jonboinAr:
Thanks for your input….Janesville is in south central Wisconsin and is the location of GM’s oldest (in years only) assembly plant. GM bought Samson Tractor in 1919 or so and started building trucks shortly afterward. The plant here has obviously assembled many different vehicles including the classic “57 Chevy”, the Cavalier (ugh), pickup trucks and was assembling Suburban, Tahoes, Yukons etc. up until December of 2008.
Our local business community, union local and state government did exactly what you mentioned in your post back when the closure announcement was made in the spring of 2008. They created a task force along with several auto industry consultants and presented an innovative proposal to GM management for continued vehicle production in Janesville. GM was supposedly impressed and have not officially closed our facility. Our recent local UAW contract was rated 100% on GM’s scale which is supposedly a main criteria for which idled plant gets reopened. This contract is being used by GM/UAW as the model contract for the future.
Unfortunately I believe politics (inside GM, UAW in addition to Washington) will ultimately decide which plant is reopened which is very frustrating considering our limp-wristed governor and senators.
Mike
Mr. Cowger,
If you want to build a small car that will sell, where is GM’s all-electric, neighborhood-city car?
Something in the $10,000 range that people can buy as a second car to use for short-range errands around town. Commuting, trips to the grocery and drug store, going to the library, movies, church, taking kids to Little League and soccer, etc.
You seem to have left that market to the small, innovative entrepreneurs. I realize your per vehicle profit on such a car wouldn’t be large, but there will be a market for them. (A market for which the Volt will be too expensive.)
The day will soon be here when many families will have a short-range electric car for most around town uses, and long-range, liquid fuel car for weekends, special trips, etc.
Why isn’t GM planning to jump into the NEV, electric city car market?
Don’t forget that the population is getting older-sad but true! We will need a vehicle that is easy to get in and out of-not a small version of a larger sedan. Orlando??? I have 135,000 mi. on my Maxx but am concerned that it won’t last till I can check out the Orlando, HURRY, HURRY!
Outsourcing didn’t work for GM. Having their small cars built in an unstable country (South Korea) under the threat of war did not work for GM. There is much to be said about the stable environment the US provides. Other countries can change at a second’s notice.
Nate, it’s interesting that you mention the Toyota Venza. That car is only amazing in the fact that Toyota managed to reinvent the Eagle wagon and managed to make it work. That said, I do think that high roof wagons make much more sense than traditional SUV’s. They can be based directly on their sedan counterparts, and can be priced similarly to their sedan counterparts. The Venza (a.k.a Camry wagon) proves that this can work. High roof also may help designers in not sloping the back of the roof to much. I think one of the biggest drawbacks to the Magnum from a utility standpoint was that the roof was to low. People are used to the extra roof height that they get with an SUV, so if wagons are going to sell, they have to have a high roof along with superior ride, handling and fuel economy to draw people out of their urban assault vehicles.
You could take a lesson from Honda, if you’ve accepted that you need input from somewhere other than the 14th floor.
Honda wasn’t noticed as a car company (in the US) until 1970 and the introduction of the Civic- a bit smaller than even most imports of the day, but an immediate hit with the all-important college-age crowd.
They focused on quality above all else, and gained the loyalty of a generation.
As the customer base aged, they added larger models, more features, more luxury, but they kept the focus on quality and consumer needs.
Focus on quality, then, once you’ve gained a reputation for obsessive attention to detail, plan the upgrades. It’s more effective to “stretch” a quality small car than to “shrink” a mediocre large car.
I also vote for using the idled GM plant at Janesville, WI.
You could take advantage of an established cadre of workers with a strong upper Midwest and German heritage work ethic. The Janesville plant is also close to the middle of the country with easy access to the Interstate highway system, as well as immediately next to a cargo airport with three runways, one 7,300 feet long with full instrument landing system (ILS) capability for cargo aircraft to bring in critical parts as part of a “just in time” delivery system.
Having an all-weather airport next to the plant with a long enough runway to handle any cargo aircraft in the world is a definite bonus and strong selling point. Not many of your idled plants have a first class airport so near.
I have owned 2 Corvette and currently have a 2007 Tahoe. As long as the government and the unions own the company I will never purchase another car from GM. As a tax payer and a customer I do not believe the government and the unions understand how to run a major car company. I am tired of my tax dollars going to company that I will never get a dime from. The viral marketing that is happening around GM is horrible. My friends and I have had it with the goverment and GM. I have been to both Rome and Paris and the cars are tiny, the streets are narrow. If I wanted that lifestyle I would move there. Both GM and the goverment seem to forget, you cant make us buy a GM car. And if you have no customers, you have no business.
Charles do you feel better now!!!okay now take your bottle and go have your nap.
You have proven over the last ten years that you can build great cars.Look at the demographics,there is no doubt the age group 20-32 will be very important to this market and their opinion’s are the one’s I would most pay attention to.Keep the number of options to a limit and let the public pick a name for the car.Make this a fun event and keep the potential customer involved as much as you can.
Use all the tools available i.e facebook,twitter,blogs.
Good Luck
Sorry…..I will never buy one of these tin can cars, no matter what company makes them! The insurance is higher, since the insurance companies think they are unsafe. And when there are 650 scientists that say global warming is not man made, and Washington refuses to even give them time to testify……shows me they are not open minded.
They are just transferring the title “barron” from oil to “greenie”.
If GM or Ford stops making a truck, that is much needed for towing, all other related businesses will fail also.
No where have I ever seen how much electricity will be used to charge batteries in an elec. car….our electric bill has already gone up, just wait till the Dems. tax us for everything for Cap & Trade. VAT and their health care…..all things will go up….no cars are bought!
Actually if you want to build a small car that people get excited about you should get some feedback from bloggers and others on throughout the design process. Something tells me there will be two or three unique groups that all want different product features….. Good luck….
If GM wants to build small cars they are going to need an entry level and some type of premium level car. It will probably be best to use totally different platforms for PR reasons. It should be very clear that a premium version will be quite costly and low sales number but will serve as a flag ship for GM. While a lower priced car will be needed for the masses.
This should be required reading for EVERYONE. Very Informative. Take it from a guy who knows firsthand – history is repeating itself!
http://online.wsj.com/article/SB124381203054570397.html#mod=loomia?loomia_si=t0:a16:g2:r5:c0.216336:b24856692
Chris R,
If you are talking about the Eagle as in AMC Eagle… you are out to lunch… way out to lunch. You must have missed the point I was making. That point is simple. The Venza has emotional appeal that makes me want to buy it over other competing products that may on a feature by feature basis otherwise make more sense. It is the styling of the Venza that makes it attractive… not JUST its feature set. I can get most of those features in an Equoinox but… to me the Equinox isn’t as nice to look at. Perhaps to some that doesn’t matter but when GM makes another car that makes me stop and think wow I like that (the CTS is the only other car that I say that about)…. then GM will have something.
I highly doubt the Venza is a Camry wagon, though it very well could be (I think the new Camry is a rebadged Lexus so might too be the Venza).
There are people out there like me who don’t really need the extra roof height (and don’t want it) but want other features offered by the Venza (like AWD and a 3500 lb tow capacity). Things most cars don’t have. Sure an Equinox can do that but I like the style of the Venza. The Venza is a small SUV it just doesn’t look like one. At 4000 lbs curb weight who wouldn’t call it that… but it some how manages 29 MPG which is as good as my current car… not bad… not bad at all. GM where is your Venza competition?
Paul Lynch,
Why do we need cars for older people? We have Buicks… they’ve been getting in and out of them for years… why change now?
135,000 miles on a Malibu… that thing is still new. What kinds of things are you worried about?
I drive a 1990 Buick with 130K on it and the only major problem I had was an AC go out and a few door switches acting up. I imagine the new Maxx would outlast my Buick any day of the week.
Redd Nuckles,
People won’t buy Neighborhood electric cars because for some reason they think they are unsafe. Ironically these same people think the Smart Car is unsafe… of course they are safe enough…
Perception is everything and that is why GM probably doesn’t sell any…that and they are too low a quantity to sell.
BTW around town for me is about 50-80 miles round trip… not even the mighty Volt can accommodate that kind of errand running.
chiefpontiac,
Personally I’d never buy an Aveo they have nothing I’m interested in. Not looks, not power, not interior options etc… about all they have is a cheap price tag, good economy and the knowledge that they will probably break sooner then they are supposed to. If GM wants a sub 10K car… they need to fix the looks aspect at least then its justifiable… And if they keep selling parts people can keep fixing them.
Personally I’d rather pay 20K for a decent, quality built small car then some cheap one that is going to break all the time…. just my opinion.
“BTW around town for me is about 50-80 miles round trip… not even the mighty Volt can accommodate that kind of errand running.”
Don’t know where you live, or your circumstances, but that is out of the norm.
The majority of people living in a city could do their daily errands with a all-electric, lightweight, city runabout, reserving their heavier, long-range liquid fuel cars for longer trips and weekend special occasions. Those not in the majority as you are, would use what they need to get the job done.
If GM is serious about building a world class sub-compact and compact car, please take another look at your current designs. If GM wants to take down the Honda Fit or the upcoming Ford Fiesta, GM must design an entirely new car. The current Chevrolet Aveo simply will not be good enough. If GM wants to take down the Honda Civic or the Mazda 3, the designers will have to make some serious changes to the upcoming Chevrolet Cruze. If GM makes only simple changes to the Aveo and leaves the Cruze as is, GM will continue to languish in small car pergatory. Neither of these cars is able to match the styling or the performance of the competition. I don’t wish to be cruel; I simply am stating what many people probably are thinking. If I may, I would like to make one suggestion. The Saturn Astra was a beautifully designed car ( much better looking than the Cruze), but the engine and transmission that was offered was complete underwhelming. If GM wants to grab the attention of the American motorists and say, “Hey, take a look at me,” design a car like the Astra, give it two engines of 140 and 180 horsepower, offer a 6 speen manual instead of a 5, and GM will have one hot item on its hands.
I know people who bought nothing but GM and then got screwed by either GM or GM dealers. One guy bought a new cheverolet every 4 to 5 years and had a new GMC 3/4 ton pickup. Gm put a bad transmission offering in one of their new car lines. When he went in to buy a new car he asked the salesman what transmission was in the car? He was told it had a turbo 350, so he bought the car. Not only did it have the bad transmission, but the differential had to be fixed 3 times by the dealer. His next new car was a Toyota and his next new truck was a Dodge diesel. He decided he wanted a bigger truck and got a Dodge One ton diesel. Every 4 to 5 years he gets a new car, because he a distance driver. Nissian and Toyota have been his new cars. This guy has paid cash everytime he buys a car or truck. You guys really screwed him. I don’t think he will ever buy GM again and he probably will buy 5 or 6 more cars before He will be to old to drive.
As for me I got screwed by a Pontiac dealer and a Buick dealer. You won’t see me driving a either one again.
My daughter got a used Pontiac with a 4 cylinder. The plastic radiator broke and after installing a new radiator. We discovered the engine over heated and blew a head gasket. I was in a Chevrolet dealer and thinking about a new Cheverolet until I saw the plastic radiator. Brass and copper isn’t that expensive and it lasts.
One thing I really hate is a timing belt. You just never know when they are going to break. I had a new timing belt break in 6,000 miles. Why can’t you go back to over head valves and forget the over head cam? Also I want to buy a rear wheel drive car. One that gets good mileage. I had an 1982 Datsun B210 MPG model that EPA gave a rating of 50 MPG. I got 48 MPG with it and it was rear wheel drive. Rear wheel drive costs less to fix. So many cars go to the wrecking yard because it costs so much to put in a transmission. My Volare was under $500 for remove and rebuild and reinstall. Most front wheel drive start at $1500 and go up over $2500.
Not only do I want rear wheel drive I want a diesel engine in a rear wheel drive. Also I don’t want a big car because parking lots are designed for midsize cars. (Something the city planners demand.) I would like to see a car about the size of the Ford Fairmont or Plymouth Volare with a diesel in it. I had a 1980 Olds with the 5.7 diesel in it and I really liked that car. It wasn’t the big olds it was a smaller one. I don’t recall the model at the moment, because it was so long ago. I have thought about putting a Nissan SD22 or SD33 in one of these cars, (Volare or Fairmont) since there are a real trouble free engine.
I wanted to mention that some guys are removing the big diesel engines from their pickups and installing the 4 cylinder Cummins and getting 26 miles to the gallon in a 3/4 ton 4 X 4 pickup and still have the power to pull hills with a big load. They are taking the engines out of step vans and they either have a Ford or GM adapter on them depending which model of van they get the engine from. You might think of this for your millage rating for your pickups. Also your pickup rust out real bad compared to Ford. We don’t salt the here in Oregon and the Chevy trucks rot out. You need to figure out what Ford is doing and copy that. I got rid of my chevy truck and now own 2 Ford pickups. One gas and one diesel. One thing I just don’t understand is the huge price difference in diesel parts. There isn’t that much more iron in them and in the production numbers every one has, parts prices should be coming down. I think my next pickup will be a Dodge diesel.
Parts need to be reasonable and with $80+ shop rates they should be easy to find and fix the problem. I keep thinking of the Buick dealer who charged me 2 days labor and the car didn’t run any better when I got it back. I took it to a private shop they found the problen in less than a hour, but couldn’t fix it that day because the engine part was a dealer only item.
My random thoughts. BTW WHY ARE ALL THE NEW CARS SO DAMN UGLY? It doesn’t seem to matter who make the car, they are all ugly.
Richard
YEAH, but where will you make the transmissions, engines or the rest of the part? Will it be China or Korea or Mexico or all of the above?????
for a GM mini car to sell GM will need to offer a 100K mile 10 year warranty because the warranty problems GM had with their much more expensive cars
At an idled plant? Why not at one that’s up an running. Roger is going to need new product for Saturn. If you’re not smart enough to build the new Astra for GM, at least keep him from looking for an import and build it here.
PS, and that comment that the global market is growing so fast that there is more than enough to go around is one reason GM is in the position they are today.
Red Knuckles,
How many people have spare cash for their “liquid fueled car” and their $40K Volt… seems excessive to me.
Richard W,
I didn’t know GM had a vehicle with a timing belt on it.
Nate said ~ “How many people have spare cash for their “liquid fueled car” and their $40K Volt… seems excessive to me.”
That was my point Nate, I’m sorry you misunderstood.
What I was asking is why GM isn’t developing a model to fit into the trajectory of where car ownership is headed? Why isn;t GM looking towards the day when people have cars for different purposes: An inexpensive ($10k or so) all-electric runabout for city errands. And a liquid-fuel, long-range car for special uses and long trips.
Unfortunately, the Volt fits into neither category. It’s too expensive (as you said) to be a runabout for exclusive city use, and really doesn’t fit the long-range category either (although GM is doing their best to market it as such.)
In my opinion, GM should be developing an inexpensive, all-electric runabout people can use as their city “errand car.” Such a car paired with a long-range, liquid-fuel car is where car ownership is headed.
The liquid-fuel cars may even end up being owned jointly (fractional ownership is common with many airplanes and business jets) and checked out of the common ownership pool only when needed.
GM is now the New GM. I dont understand when a need for small cars came and GM didnt address this situation by importing OPEL small cars as Saturns. Sure they stripped the Astra and made it unappealing, but why not the Corsa and Tigra. Its just a thought but how could such a thing be overlooked.
Gary,
My requirement for a car is that it be made in the US by a private US company not owned by or made with UAW labor. Why can’t GM produce cars in the US without the UAW?
Vern,
You do realize that GM has been a public company since like the 30’s or something right? It was a publicly (ie not private) traded company before it was taken over by the government.
Moderator, please delete what you find objectionable and post.
Some of the people on this web site don’t get it. No manufacturer using UAW labor can produce a small car effectively in the US. Can’t and never will be done. The extra cost required for the UAW has to be taken out of the engineering, design or materials in the car. This is why either the quality is bad, the styling bad or it costs too much to compete. The $1500 UAW extra cost per car disadvantage cannot be overcome in the small car market. I would be excited if GM was retooling a non UAW plant in the US to build the small car, but they are not.
I am 100% for American companies building American produced products, but I draw the line at the UAW. Anyone here that does not agree should go to a UAW auto plant and review the thousands of ridiculous grievences being filed or try to make a productivity improvement on the line. The UAW will fight you all the way. I am done with the UAW! my money goes to the first private American company who builds a reasonable American made car without UAW labor.
Tim
Vern,
You do realize that GM has been a public company since like the 30’s or something right? It was a publicly (ie not private) traded company before it was taken over by the government.
Tim,
Yes, by private, I mean either private outright or public company with private shareholder owners.