Tag Archives | Chevrolet Cruze

Future Unclear for GM’s Inconvenient Vauxhall Unit

By on May 13, 2009 in Features

By Andy Bannister

05.13.2009

vauxhall-logoWith potential buyers including Fiat, GAZ and Magna-Steyr vying to seize control of GM’s European Opel operations, the intriguing possibility is being raised that such a deal could exclude GM’s British arm, Vauxhall Motors.

Vauxhall and Opel started out as completely separate manufacturing companies in Britain and Germany respectively, both of which ended up as rivals in the General Motors empire. Today Vauxhall is little more than another name for Opel UK, but Britain is commercially very important as it generates the most individual GM sales in any European Union country.

When the disposal of Opel was mooted, most commentators automatically assumed that Vauxhall would be part of the package, but since then speculation has been growing that with those big sales in mind, Vauxhall and Opel could be separated. According to this theory, Vauxhall’s future would lie in co-operation with GM’s Korean unit and with Holden in Australia.

Holden currently provides Vauxhall with its only product not shared with Opel, the VXR8 sedan (a version of which is also the Pontiac G8). Opel doesn’t seem to require its own version of the VXR8, and with the demise of Pontiac, Holden’s export programme has been thrown into some disarray. Continue Reading →

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GM Delays Nearly All New Product Development for 2009 and 2010

By on October 29, 2008 in Editorials, News

By Chris Haak

10.29.2008

Automotive News (subscription required) reported this morning that multiple sources familiar with GM’s product plans have said that in order to conserve cash at the struggling auto giant, nearly all new product development activities slated for 2009 and 2010 have been postponed.  The only exceptions are vehicles that are seen as critical to the company’s image (the Chevrolet Volt and Camaro) and products whose development work is basically complete already (the Buick LaCrosse and Cadillac CTS wagon, most likely), the latter because very little cost savings would be realized this late in the game since the development work is basically complete on those vehicles.

GM expects that the moves will save up to $1.5 billion per year with the product delays as the company fights to stave off bankruptcy until the US new car market stabilizes and returns to normal (you know, when a 15% monthly sales decline is seen as a bad thing again instead of a good thing).

This situation is a perfect example of why GM should have done a better job of keeping its mouth shut regarding future product plans, specifically in regard to three Chevrolet products:  the aforementioned Camaro and Volt, plus the Cruze.  We’ve now seen and heard about both the Camaro and Volt for years (the Camaro since January 2006 and the Volt since January 2007) and GM has kept the public completely in the loop with regard to the development of these two products, even to the point of testing Camaro mules without any camouflage and showing the “production Volt” at a September 2008 press conference more than TWO YEARS before the car’s targeted on-sale date of late 2010. Continue Reading →

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Check Your Mirrors

By on September 22, 2008 in News

Check Your Mirrors

Odds and ends about cars and the car business

By Brendan Moore

09.22.2008

WALL STREET woes are probably going to affect Main Street in regard to auto sales. Both consumer and commercial credit is tightening considerably. Consumers are having a tougher time getting approved for auto loans and auto leases are getting scarce. The buyers that do get approved are not getting the same sort of terms that they were getting a year ago from the banks and the captive finance companies because their cost of funds is much higher. Furthermore, the costs associated with inventory financing at the dealerships have risen substantially, which translates into the dealer needing more profit on each vehicle in order to cover his operating costs. This makes the average purchase price higher. What all this means is that fewer prospective buyers are getting approved, and a smaller percentage of those that do get approved can actually afford the payments. Take this one more step further, and you can see why some auto analysts are saying that 2009 will be an even worse year for auto sales than 2008 is shaping up to be.

FORD says that even in a slowing European economy, it expects to sell more of the new Ford Fiesta than the outgoing model. Ford is forecasting sales in excess of 400,000 units in Europe for the new car, the sixth-generation of the Fiesta. Ford sold 378,200 units of the outgoing model last year in a much healthier economy. “The last Fiesta was a great success but we will improve annual sales with this model,” Ingvar Sviggum, head of sales for Ford of Europe, stated. Sviggum noted that the Fiesta buyer population is very loyal to the model, and further, that there are a lot of them. Over 12 million people have bought a Ford Fiesta since the model was launched in 1976. The new model is very attractive and Ford expects to get quite a few conquest buyers from other cars in the segment as well. The new Fiesta launches in Europe over the next few months and is slated for North American sales in 2010, with production for the North American market sourced from Ford plants in Mexico. The launch of the 2010 Ford Fiesta is eagerly anticipated by some consumers and by Ford of North America itself. Continue Reading →

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$500 Million to go Cruzing

By on August 22, 2008 in News

By Jason Lu

08.21.2008

 

 

 

 

 

 

 

 

 

Ford has done it and so has Chrysler. Automakers are saying good-bye to gas-guzzlers and retooling plants for small vehicles. Now in the wake of a small-car battle, the Big Shots at General Motors have decided that $500 million will be invested in the U.S. for Chevy’s all-new, global Cruze. After indulging on some official photographs of the Cruze, shown in an earlier post, I have to say, this investment is worth every penny.

The majority of the money will be spent on the production of the Cruze at GM’s Lordstown, Ohio plant, which will take place next to the Cobalt and the G5 until those are phased out. “Based on the quality of work [at the Lordstown plant], we are pleased to announce our plans to invest another $500 million in the Chevy Cruze product program in the U.S., including more than $350 million in Lordstown.” This move brings the total investment in Ohio to more than $2 billion for the past five years. The United States as a whole has received more than $20 billion of investment in the same time period.

The Chevy Cruze, designed not by Americans, but by Asians and Europeans, will “build on the already successful Chevrolet Cobalt, Cobalt XFE and Cobalt SS, all of which are nearly sold out in dealer showrooms.” Despite a 16-percent rise in year-to-date sales for July 2008, the Cobalt is understandably not the best product in its class. Thankfully GM will strive to “continue the attention to quality, fuel efficiency, and strong value promise of the highly successful Malibu and all other vehicles under the Chevrolet brand.” From the looks of the Cruze, GM does not seem to be lying. The car not only incorporates Malibu design themes, but takes what are already handsome elements and makes them downright sexy with an aggressive grille that appears to be even better looking than its big brother’s. From some angles, there are even hints of Audi, which is a good thing. We have not seen pictures of the interior (other than a few spy shots), but after experiencing the class-leading Malibu’s, we shouldn’t be too concerned. Continue Reading →

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Chevrolet Cruze Details Released Ahead of Paris Debut

By on August 21, 2008 in News

By Kevin Miller

08.21.2008

GM has released details and photos today of the Chevrolet Cruze, its all-new small car which will debut in October at the Paris Motor Show. GM describes the vehicle as a “dynamic four-dour coupe”, using the already-tired vernacular of more expensive four-door sedans masquerading as coupes. Regardless of how its styling is described, the Cruze is certainly better looking than the Cobalt which it will replace in the US, and the Lacetti it will replace in Europe.

Although photos of the interior were not available, the dash is described as a “twin cockpit” design. Such a design theme is used in the interior of the current Malibu, where it is attractively implemented. Interior materials are said to be nicely grained, soft-touch, and low gloss, which will be an improvement compared to the vehicles the Cruze replaces. Continue Reading →

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