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Re: LTSG part II
to further expand on Bravada's thoughts,
GM needs to stop going up market. When you go up market you are making more expensive vehicles. But who is there to buy them? People are being laid off left and right, incomes in the US are dropping. The people who are not worried about their incomes are buying Bentley's and Ferrari's, mercedes and BMWs.
GM needs to become profitable per unit, period. Then, utilyzing it's global infrasructure, build a true world car. Something that an be sold for 7,000 dollars and be profitable, and be attractive, not a box on wheels.
The Original VW Beetle should be an influence. It was extremely basic, fuel efficient, cheap, reliable and pretty neat to look at. However it should not stop wth one vehicle. A whole brand dedicated this idea would enable GM to offer a variety of vehicles to more people who today can't afford to buy a new vehicle for 30k. I think if the majority of these vehicles were FWD and then some more sporty models were later offered with RWD, even with small engines they'd be a it with younger kids. Also if the weights were kept in check, a basic 2+2 2200 lb car with a 200 hp engine would be a great beginers sports car. It could be offered with a small 100 hp engine in base form as well.
The cars would not need to be tiny either. A midsize 4 door with ample space for 4-5 adults selling for under 10k in base trim, powered by a small fuel efficient engine, wouldn't be fast but it could be cheap and reliable.
Basically, this would enable GM to offer cars at a part of the market no one is going after which is growing. Then, once they do get that big hit in this segment, they'll own it.
I'd rather see them make 5m cheap cars and make 500 dollars on each one, than set up to make 1m mid-market cars and not sell 500k and lose money on each one.
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