Henderson’s business strategy is based on the assumption that gasoline will reach, if not actually exceed, $4 a gallon in the relative near-term.
It’s time to ban the word, “competitive,” from the General Motors vocabulary, says CEO Fritz Henderson. That’s simply not good enough, he admits. But can GM really “meet or exceed” the best competitors like Honda, Toyota, BMW and Mercedes-Benz can throw at it?
There’s no question the humbled U.S. maker can turn out some compelling offerings. Its Chevrolet Malibu won the cherished North American Car of the Year honors, in 2008, for example, and its second-generation Cadillac CTS has won a bevy of awards, as well. But while the automaker’s recent brush with bankruptcy may have reduced its crushing debt and structural costs, it has only increased the pressure on GM to deliver a solid hit with each new entry it brings to market.
Recognizing the skepticism it faces from the public and media alike, GM officials took the unusual step of briefly lifting the covers on 33 upcoming models, from entry hatchbacks, like the Chevy Spark, to the new luxury flagship, the Cadillac XTS4.
Here’s a look at some of the most significant of those offerings, most of which will reach market by 2012.
As the biggest GM brand, Chevrolet will continue to be the rock upon which the company’s fortunes live or die. The division rolled out an assortment of 10 different products, from the compact, entry-level Spark, to the Corvette Grand Sport.
The display underscored GM CEO Fritz Henderson’s contention that fuel costs will continue to climb, despite the recent reprieve. Henderson’s business strategy is based on the assumption that gasoline will reach, if not exceed $4 a gallon in the relative near-term, and lead to a shift in the products consumers demand. That doesn’t necessarily mean a line-up of small cars alone, he cautioned. But whatever they buy, motorists will want better mileage.
There are, however, a fair share of downsized models coming, at Chevrolet, starting with the Spark. The goal, according to designer Dave Lyons, is to make it “an aspiration vehicle,” and not just sell it on price, like past Chevies. Spark will debut in 2011, about the same time as the slightly larger, redesigned Aveo. For the compact segment, Chevy is rolling out the Cruze, for 2010, which will deliver up to 40 mpg on the EPA’s Highway cycle.
During the preview, Chevy also revealed a revised version of the Camaro Convertible, a ragtop delayed by the financial collapse of a key supplier. With a new vendor in place, the open-air muscle car is due to showrooms by the second quarter of 2011.
One of the more surviving announcements was the plan to replace the popular new Chevy Malibu – which was named North American Car of the Year in January 2008 – with an all-new version of the mid-size sedan. Due to market in 2012, the next-generation Malibu will be both longer and wider, but with notable aerodynamic improvements designed to maintain or even improve fuel efficiency.
The day’s session opened up with the announcement that the well-publicized Volt, Chevy’s “extended-range electric vehicle,” will be rated at 230 mpg, in the new EPA rating system for vehicles using electric propulsion.
While a final figure has yet to be set, insiders have hinted Volt will go for something between $35,000 and $40,000 when it’s launched, late next year. For his part, Henderson admitted that “the cost is high,” but stressed that is the reality of using lithium-ion battery technology. A $7,500 federal tax credit will help soften the blow, the CEO stressed, adding that it will cost as little as $0.40 to charge Volt for the 40 miles it can get using battery power alone.
At the other extreme, in the GM hierarchy, Cadillac will be rolling out an assortment of new products – including the all-new entry-luxury ATS and the premium XTS4 sedan, the former designed to challenge the BMW 3-Series, the latter to go up against the Mercedes-Benz S-Class. Click here for the complete story on Caddy.
While GM is dropping its Hummer, Saab, Saturn and Pontiac brands, it gave a reprieve to Buick, in large part due to that brand’s striking success in China. At one point, only a couple years ago, the plan was to trim Buick to a slim 3-model line-up.
Instead, revealed brand manager Susan Docherty, “We’re going to double the line-up (with) three cars and three crossovers…over the next 24 months.”
The division gave a sneak peek of what’s coming when, last week, it revealed plans for a new compact crossover-utility vehicle, or CUV, that will debut in 2010. Initially, it will offer motorists a choice of two gasoline powertrains, but a year later, it will add a plug-in hybrid alternative permitting a motorist to drive up to 10 miles on battery power alone.
Along with the popular Enclave CUV, a small crossover, based off the same platform as the Chevrolet Orlando, is in the works. Think of it as a “Baby Enclave,” Docherty suggested.
The new LaCrosse is just hitting showrooms, and already gaining more of a buzz than most Buick sedans have in years. It will soon be joined by a sporty midsize 4-door based off the European Opel Insignia. And a premium compact sedan will follow. A variety of variants could come later, a senior Buick insider hinted cryptically.
The final GM brand, going forward, is the truck marque, GMC, which has established a reasonably profitable niche as the provider of “professional grade” alternatives to the workingman’s Chevy trucks.
But GMC also hopes to broaden its appeal, and among the offerings on display, Tuesday, was a boxy compact crossover that is still under development. The goal is to challenge such edgy new imports as the Kia Soul and Nissan Cube, explained GMC designer Peter Davies, but push up-market from their entry-level segment.
The concept version, one of several being studied inside GM, features a decidedly up-market look, with a stainless steel grille and notably up-market head and taillamps, “which gives a clue to the ‘premium-ness’ of the vehicle,” suggested Davies.
For the inside word on GM’s product and marketing strategy, Click Here.
For more on CEO Fritz Henderson’s Tuesday news conference, Click Here.
For an inside look at the “Cadillac Renaissance,” Click Here.