GM News, New Models and Market Share

circlew

No, safe buying a GM vehicle.

Regards,
OW

stever

Ah, well, even the Olds owners are getting parts ok. Even most Daewoo owners for that matter seem to be able to find mechanics. But bankruptcy talk sure scares the buyers away.

aspesisteve

Bush, when asked if GM was so important that it deserved government help, repeated his usual mantra:
"In terms of private enterprises, no, I don't think the government ought to be involved with bailing out companies. I think the government ought to create the conditions so that companies can survive."

i.e. he wants gas prices to go back to where they were and continue tax breaks for 7,000 trucks like the Hummer and Suburban.

Forget about coming up with a hybrid that people will put their names on a waiting list for.

circlew

Yes, I can get parts for a 1966 Nova even today. The economy is going to do GM in. Very bad timing for a recession and a HUGE spike in energy while you build mostly gas guzzlers.

Seems amateurish on the part of Big 3 management, really. Like when the investing accelerated at the end of the DOT.COM boom. You think they were surprised that they were surprised?

Regards,
OW

lemko

Well, I hope that Bush sticks to his guns and doesn't bail out failed banks that gave mortgages to every Tom, Dick, and Harry during the insane Housing Bubble.

aspesisteve

lemko,

we have common ground here!
I'm not a big fan of GM as you are, but I can agree with you that the government is doing taxpayers a disservice to bail out failed banks and ill advised loans.

I've actually got savings - sadly it is in US dollars and not gold. The US dollar is just getting trashed these days.

nippononly

that Saturn and Saab might be the first to go after Hummer:

http://www.autonews.com/article/20080716/ANA02/48644134/1128/ANA05&Profile=1128

Saturn will likely be the next brand to go -- its own independent dealer network makes it an attractive asset for an overseas buyer looking to gain a foothold in the United States, two bankers said.

"While the sale is good because they have too many brands and they need the capital, it's also bad because it empowers another competitor in the U.S. market," one banker said of a possible Saturn divestment in a saturated industry.

GM also could have difficulties marketing its Swedish brand Saab. As a niche brand, Saab lacks the broad sales volume of a mass-market brand, but also lacks premium luxury positioning, one banker said.

Saturn and Saab account for a small fraction of overall U.S. light vehicle sales -- with Saab at less than 1 percent and Saturn at 1.4 percent.

So just how many American brands can those Chinese automakers afford to buy?!

I'd love it if one of the niche American automakers had enough capital and was far enough along in its development to acquire one of these GM brands. I am thinking of Tesla, although there are others that would also fit the mold.

Then there's this:

The Saturn and Saab brands could be divested, although with the U.S. auto industry in a tailspin and with GM having announced a need to raise capital by selling assets, the few willing buyers will likely make low-ball offers, bankers said.

Other assets GM could sell include its OnStar vehicle communications system, or it could sell more of its remaining minority stake in GMAC to Cerberus Capital Management LP, which acquired the majority stake, bankers said.

I don't think GM should sell OnStar or any more of GMAC - those are both moneymakers for GM in the good times and the bad. But it is true that if everyone knows GM is hard up for cash, they will lowball it for any brands that might be for sale.

62vetteefp

More than 80 percent of Americans who intend to buy a new car would abandon their plans if the automaker behind the brand filed for bankruptcy, according to a study released on Wednesday.
The study of 6,000 people who intend to buy new vehicles by auto market research firm CNW Research found the sales losses from bankruptcy would be highest for the U.S. automakers.

62vetteefp

This morning this Driving Woman attended a Q&A session with Ed Wellburn, GM's vice president, Global Design at the Art Center College of Design in Pasadena, California -- which has graduated many noted automotive designers. The main topic: The globalization of GM's vehicle design.

GM recently announced that a fuel-efficient compact "world car," the Chevrolet Cruze, will replace the Chevy Cobalt. It represents a huge shift for GM, which of course is struggling to survive the sea-change in popular preference for smaller cars that get great fuel economy.

"Times have changed," he said. "If [the pendulum] swings back to larger cars, it's because they're not running on gas, or they drive themselves and can't crash, requiring less front and rear overhang" [which would shave off weight and improve fuel economy.]

The Cruze will share far more than just a platform/architecture across regions. Practically everything will be identical. While some features may be standard in one country and optional in another, or the available trim levels and colors may differ slightly, it means that a person buying a car in China, India, Europe, and the Americas will be buying the same car. This is a serious engineering challenge, as any world car" will have to meet the highest level of both safety and emissions standards before it can be accepted globally.

It's business school 101: If a company can standardize its parts (particularly across the globe), it achieves tremendous economy of scale in technology, manufacturing, and so on. What surprised me was to learn that GM cars having the same name in different countries often shared absolutely nothing in common up till now. GM was reinventing the wheel in practically every country (or region) it sold in. That was great for appealing to local cultural sensibilities, but financially, it was a disaster.

Hinting at something GM is developing, possibly with Cadillac, Wellburn also said that there is "room in the marketplace for a premium small car." In addition to having a truly luxurious interior, it would have to get great gas mileage.

Wellburn has seen good results from pitting the various design centers against each other. The upcoming Buick LaCrosse, which will debut next year, is the result of such a competition. The exterior will be designed by Detroit, the interior by China. (As a side note, the Chinese, who love Buick, focus a lot of attention on the rear seat, as many Chinese vehicle owners have a driver and so sit in the back. Who knows: We may be treated to a LaCrosse that has not only audio and climate controls in the rear, but a DVD system, USB connection, and lots of leg/headroom, as do some of the vehicles in China.)

As always, it comes down to designing cars that people want to buy. Perhaps it won't be economic efficiencies or economy of scale, but rather a basic human emotion -- the desire to compete -- that brings back GM from the almost dead.

Go to: http://blogs.edmunds.com/strategies/2008/07/gm-design-wants-to-hand-us-the-world- -on-a-silver-platform.html

62vetteefp

Power released its annual Automotive Environmental Index, which ranks the top 30 models based on air pollution, greenhouse gas emissions and fuel economy. It measures fuel economy using a 50/50 average of EPA's figures and consumer-reported mileage.

Toyota and its Lexus brand had a combined seven vehicles in the index: six Toyotas and one Lexus.

Among the Detroit 3, General Motors had the best showing in this year's index. GM's Chevrolet, Pontiac and Saturn brands placed a combined six vehicles.

Ford Motor Co.'s Ford and Mercury brands had a combined three vehicles.

Chrysler LLC's three brands were shut out of this year's index.

circlew

Go to the Caddy Standard of the World board to see my response to this.

Regards,
OW

62vetteefp

General Motors Corp. says one of its Chinese joint ventures has begun exporting Chevrolet minivans to Peru, adding to global automakers' small but growing vehicle exports from China.

GM says Thursday the Chevrolet N200 minivans are made by SAIC-GM-Wuling and will be sold through Chevrolet's dealer network in Peru.

The N200 will be the second Chinese-made GM vehicle sold in Latin America. The company has also exported Chevrolet Sail compact cars from China to Chile.
Most production in China is aimed at the fast-growing Chinese market.

Honda Motor Co. began exporting its Jazz compact from China to Europe in 2005. Chrysler LLC has signed a deal with China's Chery Automobile Co. to produce a low-cost model for sale under the Dodge brand in the U.S.

62vetteefp

General Motors Corp yesterday began selling its hybrid sedan in China as it focuses on more energy efficient models in a battle with its major rival Toyota Motor Corp.

The Buick LaCrosse ECO-hybrid is made by GM's flagship venture Shanghai General Motors Corp and is expected to be the first mass-produced hybrid sedan in China's mid to high-class segment. The car is priced at 269,900 yuan (US$39,691) in China.

Shanghai GM said the model, powered by a 2.4-liter engine and a battery, could reduce fuel consumption by 15 percent to 8.3 liters per 100 kilometers. It can also lower emissions by at least 15 percent.

The company introduced the Buick LaCrosse hybrid at the beginning of the year as part of its "Drive to Green Strategy" to roll out more eco-friendly vehicles in China.

Toyota started making its Prius in China in 2006. However, the sale of just 1,500 units was far less than expected with the higher price and expensive maintenance being two major barriers for the green car's sales.

62vetteefp

Saturn will drop its Green Line badge with the 2009 model year, though the General Motors brand will introduce a growing family of the hybrid gasoline-electric models for which it created the Green Line name.

GM has decided that simply calling gasoline-electric vehicles hybrids -- the term everybody understands -- makes more sense than coming up with cutesy marketing names.

In addition, Saturn should shortly have three types of hybrids on the road -- a wider array than any other brand.

Each will have its own name. Keeping the Green Line tag would have led to unwieldy badges like "Saturn Vue Green Line 2 Mode Hybrid" and "Saturn Vue Green Line Plug-In Hybrid." Not to mention the "Saturn Vue Green Line Hybrid."

Going forward, Saturn's vehicles will be identified by the model name and type of hybrid system. For instance, Saturn Vue hybrid and Saturn Vue plug-in hybrid.

62vetteefp

One day after General Motors Corp. surprised 97,400 salaried retirees with news that it no longer will provide group health benefits for those 65 or older, it rushed to assure them that a plan is in place to make the transition to Medicare plan choices as seamless and helpful as possible.

The automaker and Extend Health, a San Francisco company working with GM to help retirees find affordable Medicare plans, have devised a new system to try to ensure retirees won't get inundated with insurance pitches and can find good, affordable coverage, the Free Press has learned.

They want to avoid the confusion that salaried Ford Motor Co. and Chrysler retirees faced in the past two years, when they overwhelmed Extend Health's toll-free line and often left insurance information seminars with grocery bags full of complex and conflicting literature from numerous companies.

Williams said that given the comprehensive benefits many GM retirees have had -- with growing out-of-pocket costs that averaged $2,700 a year for each person -- retirees stand to save as much as $500 a year if they shop around and find a nearly equal, more affordable plan.

"The untold story is that over time, any group retiree plan becomes very large, very expensive and very unwieldy, and they passed costs on to retirees for many years," Williams said.

62vetteefp

Ford Motor Co. issued a press release today, raving about the aerodynamics of its 2009 Ford Flex, a boxy compact SUV that the automaker claims outperformed the competition in wind-tunnel tests.

"At 55 mph, the Flex needs only 8.9 horsepower while the nearest competitors in the full-size crossover segment -- the GMC Acadia and Toyota Highlander -- require more than 9.3 horsepower. Moreover, the Flex's coefficient of drag is significantly better than all of its Asian competitors. Flex tests at 0.355 coefficient of drag while the competitors are at 0.375."

So says the new release. While all of that may be true, what really matters to consumers is not the coefficient of drag or the horsepower needed to make a vehicle go 55 miles per hour, but rather the fuel economy that the vehicle's aerodynamics and other factors achieve.

According to the U.S. Environmental Protection Agency, the 2-wheel-drive 2009 Flex gets an estimated 17 mpg city and 24 mpg highway, and the 4-wheel-drive version gets an estimated 16 mpg city and 22 mpg highway. These figures are slightly better than those achieved by the 2008 Ford Flex.

62vetteefp

The 20 members of General Motors' national dealer council are putting their money where their mouths are. They purchased more than $1 million worth of GM stock this week.
The dealers say the move is a symbolic gesture to show support and confidence in the future of the automaker.
GM has been under media scrutiny coupled with a decline in sales and a sharp hit to its stock price, which has plunged to historic lows below $9 a share. But GM's dealer council members say they believe the stock is undervalued and the company is underestimated.
The group bought more than 107,000 shares for a total of $1,057,000, he said. Most of the transactions were completed by the end of Monday, July 14, according to a source familiar with the transactions.

I wonder if they had insider info on the tuesday announcement? Already made about 40%. Up to almost 13 from almost 8.

bumpy

9.3 horsepower might seem low, but that's only the drag component on the body itself. Frictional losses from the tires and drivetrain push the amount of power the engine has to generate up to, say 40 or so for those barges.

nippononly

I think Ford was just worried that they are launching a large heavy vehicle shaped like a box that looks like an SUV, at a time when fuel economy is on everyone's mind.

I bet the Flex would achieve better mileage if they would cut, say, 1000 needless pounds out of the curb weight of that sucker!

bumpy

Yeah, those dumb things weigh more than my truck with a 900-pound engine under the hood. :sick:

62vetteefp

I guess I was off on the number of BPG dealers. Probably about 2000. So now 2000 x $1,000,000 (minimum) each to buy them out. WOW that is a lot of money!

General Motors Corp. says its strategy of grouping its Buick, Pontiac and GMC brands into one distribution channel, which began in 2002, is working.

The 1,600 dealers currently aligned with the B-P-G channel account for approximately 80% of the sales from the trio of GM nameplates.

Getting the dealers aligned into one channel has been one of GM’s top priorities for the last three or four years. “And we are continuing to work to align dealers along the B-P-G channel, because this makes good business sense,” she says.

“In recent weeks, there have been several articles commenting on the numerous potential auctions by GM in response to these difficult industry and economic conditions. Though the significant shift from trucks to cars and crossovers is a new reality, General Motors and Buick-Pontiac-GMC have performed well in several growing segments.”

Docherty, who previously served as GM’s Western Region general manager, says in a year-to-date comparison, Pontiac Vibe sales have jumped 24%, Pontiac G6 sales are up 4.3% and on track for a third-consecutive year-over-year gain. Acadia deliveries are up 15% and the Enclave continues to be one of the fastest turn-rate vehicles in the industry.

“In addition, both the Acadia and Enclave have one of the highest conquest rates within General Motors, at 50%,” she says. “That’s terrific news for this channel, to think we have products that 50% of the people buying them are brand new to General Motors.”

Buick products are much more purposeful in design and “needs fulfillment,” she says. “Our portfolio strategy for Buick will be fewer models that achieve higher sales per model.”

Docherty also says GM thinks it has the right product and retailing strategy to move the needle for Buick.

With the help of the Pontiac and GMC brands, the B-P-G channel allows the auto maker to optimize each brand by developing distinct and complementary vehicles that reduce overlap.

62vetteefp

General Motors Corp. researchers are working on a windshield that combines lasers, infrared sensors and a camera to take what's happening on the road and enhance it, so aging drivers with vision problems are able to see a little more clearly.

Though it's only in the research stage now, the technology soon will be more useful than ever. The 65 and older population in the U.S. will nearly double in about 20 years, meaning more people will be struggling to see the road like they used to.

GM's new windshield won't improve their vision, but it will make objects stand out that could otherwise go unnoticed by an aged eye.

62vetteefp

Alright, so there's this guy, Harvey Spivey, who's an efficiency expert. He lives the typical suburban life: wife, two kids, dog, minivan, self hatred. Basically, he's the total opposite of Edward Albright, a 2010 Chevy Camaro SS driving, multilingual, lethal operative. But get this: they share the same body. Whoa.

If you're thinking this sounds like a great idea for a TV show, you're not alone. It's coming to NBC this fall starring Christian Slater. Knight Rider might have some competition.

Revealed also are some more closer-up details of the new Camaro SS than those we were able to discern from the shots we saw of this very same Camaro SS on set of the new show. Check out the super thick A Pillar, blacked out grille and the centrally mounted hood scoop. [My Own Worst Enemy via Camaro Z28.com]

michaellno

Only one small issue .. it's not a minivan that Harvey drives, it's the new Chevrolet Traverse CUV.

Big product placement for Chevy, it seems like.

And more next summer with the sequel to "Transformers".

jpstax1

I saw this video over at the NAIOA website and thought everyone at Edmunds might enjoy watching it too:

http://www.forsalebyslim.com/nurburgringZR1.html

torque_r

The Lucerne may be getting the 3.9L V-6 from the Impala in place of the 3.8L for 2009 but I can't confirm. Fuel mileage is 17/26. Still trails the Avalon in power and fuel consumption.

circlew

GM still doesn't get it...

GM tells us that the cost considerations of global manufacture have led to the use of a torsion beam rear suspension for the Cruze. Although GM engineers claim that they have been able to optimize this design for both accurate handling and a comfortable ride, it's surprising that the Cruze doesn't feature independent rear suspension like the global Ford platform used for the Mazda 3.

Unbelievable.

Regards,
OW

bumpy

It's very much believable. IIRC, the last compact sedan from GM to have an independent rear suspension was the Corvair.

aspesisteve

will GM put any cool cars in the sequel to Transformers like the Camero and then not sell them to the public? :

what ever happened to that car? :confuse:

nippononly

But then again, several of the Big 6 competitors to the Cruze have torsion beam suspensions at the back; the only exceptions are the most expensive of the bunch, the Civic, and the Focus. Perhaps GM is just being practical here?

circlew

I guess that's why the Mazda3 is getting popular and performance is a notch up on the competition.

Very interesting.

Regards,
OW

nippononly

Oh sure, the Mazda3 is probably the best choice in compacts available today, even five years after its launch. My sister loves hers. But it doesn't have the best fuel economy, which is why Civic and Corolla are still way ahead in sales (not to mention it's a Mazda, with the limited dealer network and availability that brings along)

andre1969

It's very much believable. IIRC, the last compact sedan from GM to have an independent rear suspension was the Corvair.

Didn't the N-body get an independent rear suspension once they redesigned them in the late 1990's? Now when the Corsica got massaged into the Malibu, it technically became a midsized car, but I think the Alero and final-gen Grand Am were still considered compacts.

Did the Cavalier ever get an independent rear suspension? What about the Cobalt/G5?

bumpy

I don't think those late N-bodies really count as compacts; they were positioned as midsizers with poor internal packaging.

Did the Cavalier ever get an independent rear suspension? What about the Cobalt/G5?

Torsion beams all the way.

sls002

The Cobalt's rear suspension is considered "semi-independent". Unless these FWD's are intended to be "sports sedans", I don't see any problem with them as is. A serious performance small car should be RWD.

The N platform was independent in the late 90s and is now called the epsilon (which is new).

nippononly

Everyone in the compact game calls theirs "semi-independent". A torsion beam is a torsion beam though.

Torsion beams are more durable, reducing long-term operating costs for the owner, and reduce the price of the car. As such, while it is disappointing to performance fans, they are probably the most appropriate choice for a mainstream compact car. Certainly anything with sporting pretensions should have an indy rear.

I suppose with the advent of the "Cruze" the Cobalt SS will go away. :-(
I wonder if it will be replaced by anything in the Cruze line (get it? Cruze line?! :-P)

andre1969

Isn't the Nissan Maxima's rear suspension a "Semi-independent"? Considering that's supposed to be something of a 4-door sports car, maybe that's a sign that a fully independent rear suspension isn't exactly critical for handling?

As for the N-body, with the introduction of the 1997 Malibu and then the redone Grand Am and the Alero, didn't they call the platform something else? For some reason, "P35" or something like that is sticking in my mind. FWIW, I don't think the 1997 Malibu was a bad car...at the time. Only problem is a new Accord came out the very next year, and I think that's when that "Origami" styled Altima came out, too. Then a new Camry in '02, not to mention another Altima that really re-ignited the horsepower race in that class of car. Then the new Accord came out for '03, and the Malibu was just looking and feeling really outdated by that time.

Back in the 70's, you could still sell a 5-6 year old design (Dodge Dart, for example) and actually end up with a class leading car! But, unlike the 70's, nowadays the new designs tend to be better than the ones they replace, and it's just so easy to get left behind.

bumpy

Supposedly the beam also opens up some room to mount the rear seat a bit further back on the platform. I would assume the turbo 2.0 in the current Cobalt SS will carry over to a Cruze SS.

bumpy

Yeah, the Maxima (and the Sentra) got beamed for 1995 and Nissan swore up and down that the cars still handled well; which was true in a rather narrow set of circumstances, but IRS is far more flexible and adaptable.

nippononly

Does the Cobalt SS have IRS? If so, I hope they continue THAT portion to the Cruze SS as well.

circlew

No!

Suspension
Front: Independent MacPherson strut-type, SS-specific twin-tube struts, steering knuckles, 27N/mm springs, control arm and stabilizer bar bushings, 24mm solid stabilizer barRear: Semi-independent torsion beam, SS-specific monotube shocks, progressive 28-40N/mm springs, axle bushings, 24mm solid stabilizer bar


Regards,
OW

dave8697

The 2010 Camaro will get 26 hwy mpg with 300 HP 3.6 L V6 and only come with choic of man or auto 6 speeds. 422 HP V8 will get 23 mpg hwy. I see the Mustang TV ads now feature the 26 mpg V6 models instead of the V8 models. High torque engines can shift to higher gears and give mileage close to 4 cyl cars. New '01 Stratus 4 cyl gave me 26 mpg on trip. '99 Sonoma V6 gave me 26 mpg on trip. Sonoma was 1000 lbs heavier, had nearly twice the displacement, and was 8 years older at time of test. Stratus was better on skidpad.

nippononly

Now if only most buyers did all-highway driving, eh?

Of course, even at 26 mpg they would still pay $2000/year just to drive a relatively low 1000 miles per month.

aspesisteve

It doesn't bode well for the timing of the Camero to be planning a 400hp car in the world of $5.00 gas - who knows where it will be in the year 2010. I'm guessing gas was under $2.00 per gallon when they gave the thumbs up for a 400hp car that essentially seats two people.

Kinda shows you how long it takes to turn a sinking ship - I mean we first saw this car in trailers for Transformers - how long ago?

Great looking car, but getting it to market is taking so long that it's mpg is making it antequated before it even hits the showroom.

circlew

They should have sold the rights to Honda. We'd have seen the 5th iteration already with power and economy that works today.

Camaro Challenger, Charger should have been developed alongside the Mustang.

Hello?

Regards,
OW

lemko

Oh yeah, right! Honda "muscle cars!" I guess your idea of muscular must be the automotive equivalent of a pale anemic anorexic nerd who's just been released from a Russian gulag.

nippononly

I definitely would hope not. To be a Honda it would have to lose at least 1000 extraneous pounds, 2 engine cylinders, maybe 4 and add 8000 rpm redline, and some inches of length, preferably wheelbase as well. Then add at least 30% fuel economy, preferably 50%, and voila! The return of the Prelude for the 00's! (which I wouldn't mind seeing at all)...

...why they don't just do a coupe treatment of the S2000, I do not understand...

circlew

Honda is not the point...eons to release a new car and then time it wrong based on market conditions is the point.

Oh, well. The Camaro should do well anyway..it's a real great looker. And the V-6 has decent FE also. I like it and will check it out because I want to see how the suspension works. The SS finished the 'Ring in 8.20. That is one hot time.

What is the projected price for the SS?

BTW, Here's how Honda flexed it's muscles in sales in June! I'll be back (In July)!



Regards,
OW

bumpy

why they don't just do a coupe treatment of the S2000, I do not understand

That's more or less what the CR is, since the hardtop is standard and the soft top is gone. As for a dedicated coupe, it would add more weight than the hardtop + soft top delete, plus Honda doesn't do major body style variations on their specialty cars.

nippononly

I actually saw one of the new Challengers out on the road the other day. Very easy on the eyes....and I agree the Camaro will be the same.

I see from Autoweek today they tried out the 4-cylinder turbo in the Camaro, and in their testing found it not to have substantially better fuel economy than the 3.6L V-6 they were already planning for the base engine. Now they are thinking about trying some new EcoTec turbo 4 (originally destined for the next-gen European Insignia) in the Camaro instead of the existing turbo, which came from the Cobalt SS and the Solstice/Sky.

http://www.autoweek.com/apps/pbcs.dll/article?AID=/20080723/FREE/899569680/1023/- CARNEWS