GM: Resurrect Cobalt LTZ
www.gminsidenews.com
August 6, 2008
By: Nsap
Back when the Chevrolet Cobalt was fresh out of the door it launched with a LTZ trim on the sedan. That, of course, was back in 2004 when gas prices were not a problem and everyone plus their dog had a $50,000 Tahoe or Suburban. Who wants a loaded Cobalt right? Well, that has changed and in typical GM fashion, they have not adapted. I applauded GM for having an LTZ Cobalt when it was available; the car was very nicely equipped and just looked like a small car you would not be ashamed of. Naturally, GM killed the LTZ level Cobalt in the 2006 model-year. Obviously all of the equipment the LTZ had is still available on the Cobalt (and some), but that is not the point. Since it sounds like we are stuck with the Cobalt for at least another year and a half (or more), GM really needs to bring back the Cobalt LTZ.
Now that gas prices are at [insert over $3.00 price here], it is only a natural progression that the market is going to migrate to smaller cars. Most customers that are downsizing are not going to want to give up their goodies and luxuries. However that is not the important thing to note in this situation for GM. No, the important point here is that GM needs to capitalize on the changing market. As of mid July the average selling price for a Cobalt was around $12,000. The Honda Civic has a average transaction price of slightly over $19,000. There is a problem there for GM. The Cobalt is not a bad car and the powdered-up 2009 model is really not a bad sale at all for Chevrolet. GM will never see transaction prices averaging $19,000 on the Cobalt, but somewhere along $16,000-$17,000 is not impossible. The market is changing (even if oil does go down for awhile), so it only makes sense to bring back the LTZ Cobalt. Especially considering the profit margin on loaded trim levels is high and, well, GM needs all of the profit they can get.
Chevrolet has just recently seen some very good success with an LTZ model; the recently redesigned 2008 Malibu. The LTZ trim is accounting for 25-30% of total Malibu sales. That is a lot, and that number was prior to GM adding the four-cylinder LTZ model! Granted, the midsize sedan market has a different mix of demographics than the small car market, but one has to wonder…with gas prices going up and the economy on shaky ground; won’t some of the demographics that have been buying up midsize sedans, start buying small cars? My guess would be yep. The GMT-900 SUV’s and trucks have also had great success with the LTZ trim lines, prior to the gas price hike.
One of the Big Three has realized that small cars are moving upscale a bit. For 2009 Ford has created a Focus SEL model. Traditionally, SEL is the highest trim level on Ford vehicles. The Focus was all new in 2008 and only carried the SES as the highest trim level and it was not terribly well-equipped. From what I have been told, Ford has had a very surprising amount of 2009 SEL’s ordered; retail orders (meaning customer orders). I personally am one of those orders! I, like many people, wanted a small car to commute with, but did not want to give up any of the luxuries I am use to with vehicles I have had in the past. The Focus SEL retails for $18,665 with no options. It comes standard with; heated leather seats (with contrast stitching), Microsoft SYNC, Siruis radio, 16” flangeless wheels, chrome door handles and mirrors, and other fancies.
GM, I want to see the Cobalt LTZ come back to take on the Focus SEL and other high-end small cars. The market is now there, it was not when the car launched in 2004. Personally I would like to see the Cobalt LTZ come standard with; heated leather, 17” wheels (take them from the HHR!), Bluetooth, USB port, chrome door handles (take from HHR again!), a nice chrome exhaust tip, chrome grille (original LTZ had it), StabiliTrak, and everything the current LT has. Obviously everything needed to do a Cobalt LTZ is already in the parts bin, so it would not be a costly addition. If they really wanted to go all out, they could do two-toned interiors like the Malibu LTZ. That would be nice. I would go so far to say a Cobalt LTZ Sedan and Coupe should happen this time. Just do NOT make the automatic standard.
All of the above combined with the new 2.2L ECOTEC VVT with 150 HP, 37 MPG on the highway (manual), and E85 capability…that would make a compelling little car! Especially if GM could get the 37 MPG rating out of the Coupe LTZ! I’m sure that is a dream, but I had to get this off my chest.