To grow, GM tries to make small cars cool
WARREN, Mich.--For all the attention on the electric Chevy Volt, General Motors has big expectations for another key car segment: small cars.
The auto giant opened up its design studios and testing grounds to the media on Tuesday to showcase its product pipeline of 25 new models over the coming two years. Having dramatically cut costs, its turnaround now rides on its ability to sell new cars.
Certainly, GM will continue to sell SUVs, trucks, and large sedans--highly profitable product categories that flourished when gasoline was cheaper than now. But GM's designers have sharpened their focus on smaller fuel-efficient cars and crossovers, betting that rising gasoline prices are inevitable.
"The days when we did a great Silverado (pickup truck) and did an adequate small car--over. We can't do that as a company," CEO Fritz Henderson said during a press conference on Tuesday. "If we do (small cars) well, I think we'll reopen ourselves to a market that frankly we haven't done as well as we should."
The Chevy Spark, one of GM's upcoming 'small and cool' cars.
(Credit: General Motors)The smaller cars--none would qualify as a tiny, two-seater--will help the company meet fleet mileage mandates and help GM better compete on fuel efficiency, company executives and analysts said.
But GM's vice president of global design, Ed Welburn, made clear that the goal isn't just to turn out "econoboxes" that post good mileage ratings.
"Cool and small is the next big thing," said Welburn said. "Small cars have been done before but it was always like, 'I can't afford big so I have this.' I believe small cars can be cool."
Higher gasoline prices
During a tour of GM's design studios on Tuesday, company executives showed the compact cars and smaller crossovers in its pipeline. Later this year, GM will release the Chevrolet Cruze, a four-door compact, and introduce a two-door compact, the Chevy Spark, in 2012.
Although the Chevrolet entry-level brand will tend to have most of its compacts, even its higher-end brands--Buick, GMC, and Cadillac--will introduce or are exploring smaller models.
On Tuesday, Welburn took the wraps off an entry-level Cadillac. Even designers at its GMC brand, known for its giant SUVs and trucks, have created a model of a compact, which roughly resembles a Nissan Cube.
Meanwhile, its Buick lineup will feature a smaller crossover, a new compact sedan, and a plug-in hybrid crossover, which will all be available over the next two years.
GM has been able to get substantially better fuel efficiency on its large vehicles, too, noted Dennis Virag, the president of Automotive Consulting Group in Ann Arbor, Mich. The Chevy Equinox, for example, gets about 32 miles per gallon while most SUVs get about 20 or 22, he said.
"The whole trend in the industry is towards smaller and fuel-efficient vehicles but the consumer still wants the amenities," Virag said.
Henderson said that GM is seeking to meet or exceed the industry benchmark on fuel efficiency not only to meet government mandates but to appeal to consumers who expect gasoline prices to continue going up.
"Our fundamental premise of planning for higher gas prices is the right premise," he said.
Corrected at 9:17 a.m. PDT: The name of the maker of the Cube was incorrect. It is Nissan.
Martin LaMonica is a senior writer for CNET's Green Tech blog. He started at CNET News in 2002, covering IT and Web development. Before that, he was executive editor at IT publication InfoWorld. E-mail Martin. 
Uhh? Scion doesn't have a model called Cube. Nissan does. Scion has the XB.
HMK
You can always get that Tata Motors little death trap they sell in India for $2,000. Just prepare to use the car as a coffin if it is involved in an accident.
the Aptera 2h is expected to sell at 20k and get 300 miles per gallon I believe
so 40k for a 230mpg vehicle is too far too much to ask
Nice idea about the Beatle, Henry but this a GM article!
Man must be easy to work in the GM design team.
There's no need to reinvent the wheel. They just need to start bringing those into the US.
BTW, I was the happy owner of an Open Corsa in Brazil. One of the best cars I've ever had. And it would do 39mpg 10 years ago!
And last time I checked (today), gas was not that expensive, and hasn't been all summer, the time when gas is supposed to be the most expensive. This is not General Motors anymore. Government Motors is now official.
I doubt GM is lieing
but i could see them fudging numbers a bit for more hype
The Chevy Spark is not suitable for Romanian roads. We have better roads here, but unless they upgrade the suspension and put larger tires on it, many people will have issue with this car in the US.
But I digress... "Cool and small is the next big thing," said Welburn... apparently channelling Roger Smith circa 1985. But yeah ? rush a memo to the other manufacturers - obviously this is a ground-breaking epiphany. Well, it was in the last century anyway. Perhaps instead of the next big thing, GM should focus on making good automobiles - that people will desire and want to drive - *and* doing the *right* thing. This doesn?t mean design by committee or copying off your neighbour (the ?Cruze? looks suspiciously derivative as well ? and what?s with that name... have wayward Motorolla marketing execs made their way to GM after driving Moto into the ground?)
Honestly - I was kind of pulling for GM, even after the infuriating SUV/guzzler profit-taking, 'Hummer' - nuff said, years and years of poor design (with a few exceptions) and bloated, cheap quality cars. Apparently though, they'll never learn. It's obviously a company run by lowest-common-denominator focus groups and buzz-phrase lifer executives spouting stale paradigms.
Mr. Welburn, the next big thing just might be the final and complete implosion of GM if you don?t wake up and get a whiff of the market. Personally, if one wanted to buy American cars - or related stock - I would say buy Ford and Chrysler/Fiat, short GM.
The only decentvehicle they use to make was their trucks. Recently one of the guys at work hit a small rock with his chevy truck, it snapped the drive line despite the fact that the rock was soft mudstone you can crush in your hands. When we checked out the driveline it looked like it was a thin layer of pot-metal with cardboard in the middle. *** is up with that, if GM can't make decent vehicles they should go under and all the union jerks that ruied it should get NOTHING.
Chevy Spark: GM SAIC. Built in CHINA with help from GM Daewoo, which is Korean. Will be built in Michigan, parts imported from CHINA
Chevy Aveo: Daewoo Lagnos
Saturn Skyy/Soltice: Opel GT. Built in the US, but designed in Europe. Was a European can for a long time.
Pontiac G8: Holden Commadore (Australian)
Pontiac GTO: Holden Monaro (Australian)
Saturn Vue: GM Daewoo parts imported into Mexico. Cross the border = free trade and low taxes NO UAW LABOR
Saturn Aura: bult in USA, parts iported from Germany (it's an Opel)
Saturn Astra: Opel, built in Belgum
Where did the dollars come from to pay for GM's bailout? That's right, the US government sold bonds to China. Are you sure it's a USA product? Are we REALLY supporting American workers?
The small future GM cars will be too expensive to part and source from the USA. It is becoming increasing common for parts to be imported and most cars are still made here, but that's disappearing. The Fusion is Mexican, with parts from other countries. The Ford Festiva is Mexican.... On and on and on....
GM and Ford are making GREAT cars these days, you can thank the CEO that Obama fired and Bob Lutz for re-energizing GM. I used to be a HARDCORE Euro-fanboi but now my perspective have changed and I love my American cars that are coming out now. Grow a pair of balls and go to nearest GM/Ford dealer and actually see and feel the quality instead of e-web car testing...
When is the government going to realize that bailing out a company that they personally sought to drive into the ground isn't the best of ideas? What would make this scenario even better? If they continued to cripple the business after they bail it out.
Surprise! No longer is it just a distant dream. Oh I cant wait for the day when I climb into my mandatory (by government) small version of a classic K car. It'll be a chick magnet, just as long as she doesn't want to go on any long trips with me as her extra weight wont allow me to reach highway speeds.
Nobody will want these cars other than the environmentalists that go out of their way to inconvenience their, as well as our lives to save the oh so delicate mother earth.
I also forgot to mention... god forbid someone does actually gets up to highway speeds in one of these because a crash isn't going to be pretty. But our savior has that covered too with Obama-care.
I have nothing against small cars, I own a corolla myself. What I do have a problem with are small cars designed and made by the government and unions. There is a huge difference. Lets say I offer you a car. You can choose between a Cobalt or a foreign car such as a Civic or Corolla. You would have to be stupid to choose the GM car.
Yes it was released before the government stepped in, but not before the union stepped in. The union has been GM's problem for years now. They are the reason GM was in trouble in the first place. They are the reason it is impossible for GM to make a reasonably priced quality small car. Its hard to do that when your factory workers are getting paid over $50/h + benefits.
Wait a minute... is that you Barney Frank? Are you angry that people don't like your new car company? I'm sorry i hurt your feelings, but you can go play with your new banks. Its kind of like The Sims.
In all seriousness its hard to argue with someone that denies real world facts, ratings and rejects common sense.
- by joaompq August 13, 2009 3:44 AM PDT
- Bigger its not safer. But US manufacturers have a poor tradition in small/safe cars as you can see in the Euroncap tests (www.euroncap.com). Euroncap is an independent organization that buys cars in the resellers (just like you and me) and makes independent crash tests , you can look for them in youtube (just search euroncap crash tests). BTW , the new Ford Fiesta and Fiat 500 rate 5 stars (the best) , i was very much surprised to discover they are not on sell in the US . The diesel version of the new Fiesta does 60-65MPG (US miles & US galons) and its a very fun to drive , doesn't feel like a small car :)
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