General Motors Cars, Crossovers, Brands Spared from Cost Cutting
By Michelle Krebs July 15, 2008General Motors Vice Chairman Bob Lutz insisted, despite the automaker's sweeping cost
cuts and cash-generation efforts, the future product plan for cars and crossovers has been spared. All brands, except Hummer, are saved and will be "nourished" with product. And highly fuel-efficient and alternative-fuel vehicles will be expanded.
"While deferring and reducing the scope of our future full-size truck (and SUV) programs, we've safeguarded all car and crossover programs - and even pulled some of them ahead," Lutz said said in a conference call with the media and in a separate call with bloggers, including AutoObserver.com.
GM recently announced it was delaying the redesign of its current Chevrolet Silverado and GMC Sierra and the SUVs that use the truck platforms as their basis.
Among GM's safeguarded vehicle programs is the Chevrolet Cruz, with a 1.4-liter turbocharged engine, that will achieve 40 miles per gallon, 9 more miles per gallon in fuel economy than the Cobalt it replaces in the U.S. in 2010, Lutz said. The Chevrolet Equinox will be revamped and equipped with a new 2.3-liter, 4-cylinder direct injection engine.
Lutz further hinted that more alternative fuel vehicles were planned.
GM CEO Rick Wagoner reiterated that the only GM brand under strategic review continues to be Hummer, which he said has lots of interest from outside of GM. GM, will focus on profit improvement for GM's other brands.
"All of our product franchises will be abundantly provided for with passenger cars and crossovers of various sizes," he said. He added that the Buick-Pontiac-GMC group will get smaller, more fuel efficient vehicles with GMC emphasizing crossovers, including a version of the Chevrolet Equinox. Buick will sell a new yet-to-be-named car based on the Invicta concept unveiled at the Beijing motor show in April.
Cadillac, despite some "modifications" in its future product portfolio, will be "very, very, very" well positioned with the CTS station wagon making its debut in spring 2009, the CTS coupe going on sale in summer 2009 and the new SRX crossover, based on the Provoq concept, being introduced in the second quarter of 2009.
"Our stated goal is to adopt the technology that makes us the fuel economy leader in every segment in which we compete with our overall goal being the world's best in overall product excellence," Lutz said. "Nothing about this plan touches that."
What this means to you: Fewer, older trucks and SUVs for you to buy from GM dealerships; more cars and crossovers.
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Regarding the GMC version of the Equinox. I hope the Pontiac Torrent therefore dies otherwise there will be three versions including two in the same dealership (BPG) of the same vehicle. They need to reduce overlap. For example kill off the Saturn Outlook and bring the six seater Opel Zafira (competes with Mazda 5 and Kia Rondo) over. This would provide more unique product and reduce overlap.
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