Will GM Get the Compact Car Right?
This September, GM plans to roll out it’s next generation of compact cars. Really? Another attempt at the industry segment they just can’t seem to get right. However, this time, “General Motors thinks it can finally sell a good small car,” says Tom Krisher of the Associated Press.
This better be the case. The compact car market has long been a bain in GM’s side. Think of the Corvair, or the Geo. Or even more currently the Cobalt. Ah, and even the old-school Vega. Just the thought of these unsafe heaps makes me cringe
GM is hoping the Cruze line will be the answer they need. Last year, GM only sold 105,000 Cobalts. This pales when compared to the numbers posted by the Honda Civic and the Toyota Corolla. Trust me, GM knows this. They know they are strong in the Truck and SUV segments, but they lose big time when it comes to compact cars.
Is GM out of touch with today’s youth? I mean, really, their average buyer is 51 years old. This could explain the out-dated, sleepy Cobalt they mistakenly threw into the game. Maybe they learned something from Scion and Mitsubishi, who tout average buyers around 40. Those guys definitely win with the younger crowd.
So what about the Cruze? Is it ready for this segment? Can it hold its own against the others in this tough department? Can it catch the eye of that younger, hip buyer? Let’s see. After all, “They can’t afford to get it wrong,” says Micael Robinet, an automotive analyst with CSM Worldwide in Michigan.
The Cruze was designed in Korea by Daewoo, a division of GM. It was engineered in Russelsheim, Germany and will be assembled in plants around the world. It is 180 inches long and powered by a new family of direct-injection, turbocharged four-cylinder engines that range from 1.4 liters to 2.0 liters. Recent test drives do show it to be quieter, nimbler, and more robust than anything GM has ever brought to this category.
It may be nicer looking, have a better interior, and pack a better punch that its predecessors, but is is quality? If GM expects younger buyers to look at the Cruze, it will have to compete with the Corolla and the Civic for quality. GM thinks they have this worked out. They plan to invest in quality, saying they have learned people will pay a bit more for superior dependability. They even held up production several months because managers were unhappy with performance.
GM plans to ask around $17,000 for a base model Cruze. Even though this is more than most of the competition, they claim it has a lot more standard features. There will also be a package with leather seats and other gadgets that starts around $22,700.
Tom Stephens, GM head of product development, says the company has tried to make sure the Cruze will be better than the Corolla and Civic, according to Tom Krisher of the Associated Press. We will see when it hits the showroom.
Article Source: http://EzineArticles.com/?expert=David_Ruebush