Big 3's future rides on new models

**nadepalma** · 08-03-2006, 08:26 AM

Source: http://www.detnews.com/apps/pbcs.dll...608030373/1148

Big 3's future rides on new models
Brett Clanton / The Detroit News
Thursday, August 3, 2006

MILFORD -- General Motors Corp. Chairman and CEO Rick Wagoner could not have been clearer Wednesday in explaining what's at stake with a lineup of full-size pickups the automaker begins launching this fall.

"They are the most important component of the most important part of our turnaround plan," he said as he stood in front of a small armada of 2007 Chevy Silverado and GMC Sierra pickups, unveiled for the first time Wednesday at GM's Milford Proving Grounds.

GM isn't the only automaker counting on a lift from new models in the second half of the year.

Ford Motor Co. hopes a new Edge crossover can help offset this year's startling drop in truck sales. DaimlerChrysler AG's Chrysler Group is emphasizing new cars and small crossovers, while Nissan will launch a redone Altima midsize car as other foreign automakers jump in with new entries.

For Detroit automakers, vehicle launches in the second half of 2006 are at the heart of an effort to rebound from disappointing sales and spotty earnings this year. But the companies will continue to face a challenging environment in the months ahead.

Rising gas prices threaten sales of the Big Three's hugely profitable trucks and SUVs. Asian automakers continue to make inroads. And Detroit carmakers' profit outlook is still hazy.

Perhaps never before have they been under such pressure to get it right with the cars and trucks they introduce in their home market.

"No one gets to make mistakes now," said Jim Sanfilippo, analyst with AMCI Inc., an industry consultancy in Bloomfield Hills. "Failure is not an option with product launches. It's like NASA."

Major automakers are expected to launch 30 percent more vehicles in the next three years -- an average of 46 a year -- than they did during the nearly 20 years between 1987 and 2006, according to Merrill Lynch analyst John Murphy, who in July published an in-depth forecast of the U.S. automotive market for the next four years.

Why the increase? As the U.S. auto market becomes more competitive, automakers must bring to market more vehicles faster to grab the attention of today's buyers.

GM, Chrysler are faster

Among the domestics, GM and Chrysler will have the highest replacement rates in the second half of 2006, which could bode well for their sales in coming months. But Ford is expected to continue losing ground because it is launching fewer vehicles.

New products may come at the best time for GM, which after reporting improved second-quarter earnings last week and progress with a restructuring plan is trying to woo buyers back to its brands.

In coming months, GM will trot out three models for Saturn: the Aura midsize car, a hybrid-gasoline version of the VUE crossover and the Outlook, the first of a trio of full-size crossovers. But the new pickups are the most crucial piece of the automaker's product plans this year.

The current pickups are GM's top-selling vehicle line. GM hopes to boost sales higher with the 2007 models, which boast class-leading safety features, a more upscale interior and engine options that achieve more than 20 mpg in highway driving.

Yet GM Vice Chairman Bob Lutz said Wednesday that the automaker does not expect the full-size pickup category to grow beyond current sales levels, saying it may decline further amid rising gas prices.

"It's very much dependent on fuel prices, and it depends on whether fuel stabilizes at $3 or whether people say, 'Boy, it was two bucks last year, it's three bucks this year, it's going to be $4 next year and $5 the year after that.'

"If the public has that expectation, I would expect the segment to suffer. If it stabilizes at around $3, I think the segment is going to be just fine."

Sales of Ford's F-Series pickups, the country's best-selling vehicle, are down 12 percent this year, while the Dodge Ram is off 11 percent. Demand for big gas-thirsty SUVs is also down sharply this year. But sales of more fuel-efficient cars and crossovers are on the rise.

"Gas prices are part of the issue," said Mike Maroone, president and chief operating officer of AutoNation Inc., the nation's largest auto dealer chain. "But if you really look at the statistics, the average miles per gallon of this year's sales are unchanged from last year."

The average remains at 21 mpg.

Car, crossover sales grow

The bigger driver, he said, is the rash of new products in the car and crossover segments, he said.

Chrysler will roll out eight models in the second half of 2006, including several new fuel-efficient cars and small crossovers that may be hitting the market at the right time. Among them are the Jeep Patriot crossover, a redesigned Chrysler Sebring midsize sedan and Dodge Nitro midsize SUV.

Meantime, Ford will have a much lighter launch schedule, which analysts say could cause the Dearborn automaker to see sales and market share slip further in coming months.

Ford plans are highlighted by the introduction of the Ford Edge and Lincoln MKX crossovers, heavy-duty pickups and a few spin-offs of existing models. But the replacement for its lagging minivan and a redesign of the F-150 pickup are still years away.

In July, the combined market share of domestic automakers fell to 52 percent, an all-time low. Also last month, in an industry first, Toyota Motor Corp. passed Ford to become the nation's No. 2 auto seller, and Honda Motor Co. overtook Chrysler in the No. 3 spot.

The moves may represent a permanent reordering of the U.S. auto industry, said Christian Wardlaw, senior analyst with Autobytel.com, a car shopping Web site.

"Given what's coming out for 2007 by the Asian manufacturers, that's probably an inevitability."

In the back half of the year, Honda will introduce a redesigned CR-V SUV and a new Acura MDX SUV, while Toyota brings a new version of its Lexus flagship, the LS sedan.

the prix · 08-03-2006, 08:42 AM

Why is it that the real life pictures always look better that the official ones?

Oh yea, that GMC is lookin bad ass! Damn good job GM.

CADILLACSIXTEEN · 08-03-2006, 08:42 AM

Wow, that Sierra Denali looks amazing.

darknight9 · 08-03-2006, 08:51 AM

I'm starting to like Rick a little more lately..

the prix · 08-03-2006, 09:07 AM

Quote:

I'm starting to like Rick a little more lately..

Yeah, I know what you mean. At first I didn't care for him but the guys trying damn hard to miss the iceberg.

boblutzfan · 08-03-2006, 09:20 AM

So the point of this article is that the key to the Big three's success will be in their new product. This is where GM is poised for success. A large number of their new or significantly improved products are cars - not trucks... look at the car pipeline:

Buick
2006 - Still new and strong selling LuCerne
2008 - Upgraded LaCrosse

Cadillac
2006 - Still new and strong selling DTS
2008 - All new CTS

Chevrolet
2006 - Still new and strong selling Impala
2008 - All new Malibu with hybrid powertain, I4 and V6 engines

Pontiac
2007 - G5 - a rebadge, yes. But offers good MPGs at the pontiac dealer
2007 - G6 upgraded this fall with the 3.6L and six speed auto.

Saturn
2007 - Aura. Greenline coming
2008/2009 - Astra - coming soon - another new entry in the compact class.

The lambdas will give a more fuel efficient alternative to the full size suvs. About all Ford has coming is the Edge/MKZ. The Mazda6/Fusion/Milan/Zephyr is selling well - but nothing new coming in terms of sedans or powertrain technology.

Chrysler has the Sebring - but it has never been a strong seller. They need more product - less trucks. How well will the Aspen sell in this market?

With a huricane now headed into the gulf and the war in Lebanon - gas prices aren't going anywhere but up.

kenman923 · 08-03-2006, 09:23 AM

That Sierra Denali is a nice looking vehicle.

I agree that the new models coming out will make or break the automakers. I think that GM has a good shot and better not blow it.

plane · 08-03-2006, 09:26 AM

Quote:

Originally Posted by boblutzfan

So the point of this article is that the key to the Big three's success will be in their new product. This is where GM is poised for success. A large number of their new or significantly improved products are cars - not trucks... look at the car pipeline:

Buick
2006 - Still new and strong selling LuCerne
2008 - Upgraded LaCrosse

Cadillac
2006 - Still new and strong selling DTS
2008 - All new CTS

Chevrolet
2006 - Still new and strong selling Impala
2008 - All new Malibu with hybrid powertain, I4 and V6 engines

Pontiac
2007 - G5 - a rebadge, yes. But offers good MPGs at the pontiac dealer
2007 - G6 upgraded this fall with the 3.6L and six speed auto.

Saturn
2007 - Aura. Greenline coming
2008/2009 - Astra - coming soon - another new entry in the compact class.

The lambdas will give a more fuel efficient alternative to the full size suvs. About all Ford has coming is the Edge/MKZ. The Mazda6/Fusion/Milan/Zephyr is selling well - but nothing new coming in terms of sedans or powertrain technology.

Chrysler has the Sebring - but it has never been a strong seller. They need more product - less trucks. How well will the Aspen sell in this market?

With a huricane now headed into the gulf and the war in Lebanon - gas prices aren't going anywhere but up.

Great analysis. I would add Solstice GXP to the Pontiac list and Enclave to the Buick list though. IMO, Pontaic and Buick are a little weak on the refresh cycle. The Enclave can't get here soon enough.

MrMax · 08-03-2006, 09:40 AM

That Sierra Denali looks the best it ever has in that picture. Can't wait to see it in person.

kroeze8_29 · 08-03-2006, 09:53 AM

Quote:

Originally Posted by the prix

Why is it that the real life pictures always look better that the official ones?

Correct me if I’m wrong but aren't the official pictures just renderings by a computer program???

8>4 · 08-03-2006, 10:00 AM

I'll join the party. That Sierra Denali looks great in the pics.

Silverado14 · 08-03-2006, 10:07 AM

If they are not, they are at least a little photoshop (like) work going on.....but, yes the real photos look better. Its like some women who wear way too much makeup even though they are very naturally beauiful!

boblutzfan · 08-03-2006, 10:08 AM

Quote:

Originally Posted by plane

Great analysis. I would add Solstice GXP to the Pontiac list and Enclave to the Buick list though. IMO, Pontaic and Buick are a little weak on the refresh cycle. The Enclave can't get here soon enough.

I lumped the Enclave into my Lambda statement. I agree with you though, the Enclave can't get here soon enough.

I didn't include the Sky redline or Solstice GXP because they are niche vehicles and aren't going to really help GM remain competitive in terms of providing vehicles to families lookinf for transportation that gets good gas mileage.

However, the Sky Redline, Soltice GXP and Chevrolet Camaro will help get people into the dealerships to hopefully take notice of some of the sedans that GM will be offering in the next year.

Randle2I · 08-03-2006, 10:23 AM

This article says nothing that many GM fans have'nt been harping for years: PRDUVT PRODUCT PRODUCT, that is the only way GM can save themselves.

hj92126 · 08-03-2006, 10:25 AM

Quote:

Originally Posted by the prix

Why is it that the real life pictures always look better that the official ones?

Oh yea, that GMC is lookin bad ass! Damn good job GM.

A decent camera and natural sunlight make a world of difference!

08-03-2006, 08:26 AM	#1 (permalink)
nadepalma GMI Staff Member Join Date: Jan 2003 Location: NJ Posts: 5,646	Big 3's future rides on new models Source: http://www.detnews.com/apps/pbcs.dll...608030373/1148 Big 3's future rides on new models Brett Clanton / The Detroit News Thursday, August 3, 2006 MILFORD -- General Motors Corp. Chairman and CEO Rick Wagoner could not have been clearer Wednesday in explaining what's at stake with a lineup of full-size pickups the automaker begins launching this fall. "They are the most important component of the most important part of our turnaround plan," he said as he stood in front of a small armada of 2007 Chevy Silverado and GMC Sierra pickups, unveiled for the first time Wednesday at GM's Milford Proving Grounds. GM isn't the only automaker counting on a lift from new models in the second half of the year. Ford Motor Co. hopes a new Edge crossover can help offset this year's startling drop in truck sales. DaimlerChrysler AG's Chrysler Group is emphasizing new cars and small crossovers, while Nissan will launch a redone Altima midsize car as other foreign automakers jump in with new entries. For Detroit automakers, vehicle launches in the second half of 2006 are at the heart of an effort to rebound from disappointing sales and spotty earnings this year. But the companies will continue to face a challenging environment in the months ahead. Rising gas prices threaten sales of the Big Three's hugely profitable trucks and SUVs. Asian automakers continue to make inroads. And Detroit carmakers' profit outlook is still hazy. Perhaps never before have they been under such pressure to get it right with the cars and trucks they introduce in their home market. "No one gets to make mistakes now," said Jim Sanfilippo, analyst with AMCI Inc., an industry consultancy in Bloomfield Hills. "Failure is not an option with product launches. It's like NASA." Major automakers are expected to launch 30 percent more vehicles in the next three years -- an average of 46 a year -- than they did during the nearly 20 years between 1987 and 2006, according to Merrill Lynch analyst John Murphy, who in July published an in-depth forecast of the U.S. automotive market for the next four years. Why the increase? As the U.S. auto market becomes more competitive, automakers must bring to market more vehicles faster to grab the attention of today's buyers. GM, Chrysler are faster Among the domestics, GM and Chrysler will have the highest replacement rates in the second half of 2006, which could bode well for their sales in coming months. But Ford is expected to continue losing ground because it is launching fewer vehicles. New products may come at the best time for GM, which after reporting improved second-quarter earnings last week and progress with a restructuring plan is trying to woo buyers back to its brands. In coming months, GM will trot out three models for Saturn: the Aura midsize car, a hybrid-gasoline version of the VUE crossover and the Outlook, the first of a trio of full-size crossovers. But the new pickups are the most crucial piece of the automaker's product plans this year. The current pickups are GM's top-selling vehicle line. GM hopes to boost sales higher with the 2007 models, which boast class-leading safety features, a more upscale interior and engine options that achieve more than 20 mpg in highway driving. Yet GM Vice Chairman Bob Lutz said Wednesday that the automaker does not expect the full-size pickup category to grow beyond current sales levels, saying it may decline further amid rising gas prices. "It's very much dependent on fuel prices, and it depends on whether fuel stabilizes at $3 or whether people say, 'Boy, it was two bucks last year, it's three bucks this year, it's going to be $4 next year and $5 the year after that.' "If the public has that expectation, I would expect the segment to suffer. If it stabilizes at around $3, I think the segment is going to be just fine." Sales of Ford's F-Series pickups, the country's best-selling vehicle, are down 12 percent this year, while the Dodge Ram is off 11 percent. Demand for big gas-thirsty SUVs is also down sharply this year. But sales of more fuel-efficient cars and crossovers are on the rise. "Gas prices are part of the issue," said Mike Maroone, president and chief operating officer of AutoNation Inc., the nation's largest auto dealer chain. "But if you really look at the statistics, the average miles per gallon of this year's sales are unchanged from last year." The average remains at 21 mpg. Car, crossover sales grow The bigger driver, he said, is the rash of new products in the car and crossover segments, he said. Chrysler will roll out eight models in the second half of 2006, including several new fuel-efficient cars and small crossovers that may be hitting the market at the right time. Among them are the Jeep Patriot crossover, a redesigned Chrysler Sebring midsize sedan and Dodge Nitro midsize SUV. Meantime, Ford will have a much lighter launch schedule, which analysts say could cause the Dearborn automaker to see sales and market share slip further in coming months. Ford plans are highlighted by the introduction of the Ford Edge and Lincoln MKX crossovers, heavy-duty pickups and a few spin-offs of existing models. But the replacement for its lagging minivan and a redesign of the F-150 pickup are still years away. In July, the combined market share of domestic automakers fell to 52 percent, an all-time low. Also last month, in an industry first, Toyota Motor Corp. passed Ford to become the nation's No. 2 auto seller, and Honda Motor Co. overtook Chrysler in the No. 3 spot. The moves may represent a permanent reordering of the U.S. auto industry, said Christian Wardlaw, senior analyst with Autobytel.com, a car shopping Web site. "Given what's coming out for 2007 by the Asian manufacturers, that's probably an inevitability." In the back half of the year, Honda will introduce a redesigned CR-V SUV and a new Acura MDX SUV, while Toyota brings a new version of its Lexus flagship, the LS sedan. __________________ Email: nadepalma@gminsidenews.com "La vita è come un albero di Natale..c'è sempre qualcuno che ti rompe le palle!" "You cannot help men permanently by doing for them what they could and should do for themselves" -Abraham Lincoln "Democracy is the worst form of government except for all those others that have been tried" -Winston Churchill "In my many years I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a Congress" -John Adams

08-03-2006, 08:42 AM	#2 (permalink)
the prix 3.8 Liter V6 Join Date: Oct 2004 Location: Savannah, GA Posts: 330	Re: Big 3's future rides on new models Why is it that the real life pictures always look better that the official ones? Oh yea, that GMC is lookin bad ass! Damn good job GM. __________________ Well, you fellas' gonna draw them guns or you gonna whistle Dixie?

08-03-2006, 08:42 AM	#3 (permalink)
CADILLACSIXTEEN 5.3 Liter Vortec V8 Join Date: Jul 2005 Drives: 2006 Fusion Orange Metallic Pontiac G6 GTP Coupe Posts: 1,399	Re: Big 3's future rides on new models Wow, that Sierra Denali looks amazing. __________________

08-03-2006, 08:51 AM	#4 (permalink)
darknight9 3.8 Liter V6 Join Date: Mar 2005 Location: My Coffee Shop Drives: 01 Honda S2000 04 Saturn ION 3 Posts: 387	Re: Big 3's future rides on new models I'm starting to like Rick a little more lately.. __________________ 2001 Honda S2000 2004 Saturn Ion 2004 Colorado Z71 Toyota >>moving>>*boredom* Proud owner of an Independent coffee house!

08-03-2006, 09:20 AM	#6 (permalink)
boblutzfan 6.0 Liter LS2 V8 Join Date: Dec 2003 Location: San Antonio, Texas Drives: 2004 Mazda6s - V6/5-speed manual Posts: 4,276	Re: Big 3's future rides on new models So the point of this article is that the key to the Big three's success will be in their new product. This is where GM is poised for success. A large number of their new or significantly improved products are cars - not trucks... look at the car pipeline: Buick 2006 - Still new and strong selling LuCerne 2008 - Upgraded LaCrosse Cadillac 2006 - Still new and strong selling DTS 2008 - All new CTS Chevrolet 2006 - Still new and strong selling Impala 2008 - All new Malibu with hybrid powertain, I4 and V6 engines Pontiac 2007 - G5 - a rebadge, yes. But offers good MPGs at the pontiac dealer 2007 - G6 upgraded this fall with the 3.6L and six speed auto. Saturn 2007 - Aura. Greenline coming 2008/2009 - Astra - coming soon - another new entry in the compact class. The lambdas will give a more fuel efficient alternative to the full size suvs. About all Ford has coming is the Edge/MKZ. The Mazda6/Fusion/Milan/Zephyr is selling well - but nothing new coming in terms of sedans or powertrain technology. Chrysler has the Sebring - but it has never been a strong seller. They need more product - less trucks. How well will the Aspen sell in this market? With a huricane now headed into the gulf and the war in Lebanon - gas prices aren't going anywhere but up.

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08-03-2006, 09:23 AM	#7 (permalink)
kenman923 6.2 Liter Vortec V8 Join Date: Feb 2005 Drives: 2009 Acura TSX Posts: 2,632	Re: Big 3's future rides on new models That Sierra Denali is a nice looking vehicle. I agree that the new models coming out will make or break the automakers. I think that GM has a good shot and better not blow it. __________________ Current: 2009 Acura TSX Gone but not forgotten: 2001 Saturn L300 1993 Saturn SL2 1986 Nissan Sentra

08-03-2006, 09:40 AM	#9 (permalink)
MrMax 3.9 Liter V6 Join Date: Oct 2005 Posts: 766	Re: Big 3's future rides on new models That Sierra Denali looks the best it ever has in that picture. Can't wait to see it in person. __________________

08-03-2006, 10:00 AM	#11 (permalink)
8>4 3.8 Liter V6 Join Date: Oct 2005 Posts: 402	Re: Big 3's future rides on new models I'll join the party. That Sierra Denali looks great in the pics. __________________

08-03-2006, 10:07 AM	#12 (permalink)
Silverado14 2.0 Liter Supercharged ECOTEC Join Date: Aug 2005 Posts: 144	Re: Big 3's future rides on new models If they are not, they are at least a little photoshop (like) work going on.....but, yes the real photos look better. Its like some women who wear way too much makeup even though they are very naturally beauiful!

08-03-2006, 10:23 AM	#14 (permalink)
Randle2I 6.0 Liter Vortec V8 Join Date: Nov 2003 Posts: 1,636	Re: Big 3's future rides on new models This article says nothing that many GM fans have'nt been harping for years: PRDUVT PRODUCT PRODUCT, that is the only way GM can save themselves. __________________ Watch The 4400 or suffer the fate of a terrible future. I'm a new VW Whore and owner of a 71 VW Super Beetle .

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