GM to save $1 billion on new development

adplusone · 08-07-2006, 09:21 PM

Lindsay Chappell | | Automotive News / August 7, 2006 - 5:21 pm

General Motors' next mid-sized car will represent not just a new global platform, but a new way for the automaker to develop products.

Robert Kruse, executive director of vehicle integration and the GM Performance Division, said the new system's first project will save GM $1 billion over its traditional development process.

For the past two years, GM has quietly overhauled its global methods, chucking procedures that had been in place for decades, Kruse told an audience today at the Management Briefing Seminars, sponsored by the Center for Automotive Research.

In its place is a new system that assigns specific vehicle segments to design and engineering centers around the world. According to Kruse, that will correct the historical problem of different regions developing redundant products and competing with each other.

"We've had a lot of attempts at world cars and global architectures in the past," Kruse said. "But what we've always ended up with was a few loosely related products that weren't always transportable to other markets.

"What we've created now is one global entity, designing vehicles for markets around the world," he said.

The first showing from the new system will be a mid-sized vehicle being developed by GM's design center in Russelsheim, Germany. The nine products from that project have not been named or specifically planned for market launches.

Kruse said the project is generating 40 percent lower costs for part and vehicle prototyping and 30 percent lower costs for engineering. Overall, he said, investment in the vehicle program will be 30 percent less than other GM programs.

You may e-mail Lindsay Chappell at lchappell@crain.com

Kennyboy · 08-07-2006, 10:02 PM

Great. Bring those Opels and Holdens here ASAP!

DuSpinnst · 08-07-2006, 10:25 PM

Nine Mid-Size?

1. 9-5
2. 9-3 Sport Sedan/SportCombi/Vert
3. Vectra Sedan/Wagon
4. Malibu
5. G6 Sedan/Coupe/Vert
6. Aura Sedan/Wagon
7. LaCrosse

I get 7.....

cadillacpimpin · 08-07-2006, 10:27 PM

so does that mean that holden designed the zeta platform, and say GM DAT designed the supersmall compact car platform - Gamma?

the Epsilon, Delta, and Sigma were designed here (US)?

69Firebird400 · 08-07-2006, 10:32 PM

Quote:

Originally Posted by DuSpinnst

Nine Mid-Size?

1. 9-5
2. 9-3 Sport Sedan/SportCombi/Vert
3. Vectra Sedan/Wagon
4. Malibu
5. G6 Sedan/Coupe/Vert
6. Aura Sedan/Wagon
7. LaCrosse

I get 7.....

How about the BLS? I can't think of a ninth, though.

DuSpinnst · 08-07-2006, 10:49 PM

Quote:

Originally Posted by cadillacpimpin

so does that mean that holden designed the zeta platform, and say GM DAT designed the supersmall compact car platform - Gamma?

the Epsilon, Delta, and Sigma were designed here (US)?

Epsilon was developed by Opel and Saab. GMNA modded the shiz out of it to get the Malibu, G6, and Aura.

Read into the 9-3 Vert versus the G6 Vert debacle to get more insight to how MESSED UP Epsilon 1 is.

DuSpinnst · 08-07-2006, 10:50 PM

Quote:

Originally Posted by 69Firebird400

How about the BLS? I can't think of a ninth, though.

I KNEW I was forgetting something....

Does Holden get Opel rebadges of Epsilon?

plane · 08-07-2006, 10:59 PM

Don't let anybody mess with you.
This isn't some exciting new way of doing business.
All the've done is cut the doughnut allowance.
There'll be no more company-paid Winchells, Dunkin Donuts, or Crispy-Cremes on engineers' desks from this moment forward.

But look out. Toilet paper is next on the list.....

steverino · 08-07-2006, 11:00 PM

Wow, the news about GM's turnaround just gets better by the day. I wonder if the analysts were aware of this big savings in product development. Some good things are just quietly happening behind the scenes and then BAM, there it is. Great stuff.

Ramair-WS6 · 08-08-2006, 01:03 AM

Quote:

Originally Posted by DuSpinnst

Nine Mid-Size?

1. 9-5
2. 9-3 Sport Sedan/SportCombi/Vert
3. Vectra Sedan/Wagon
4. Malibu
5. G6 Sedan/Coupe/Vert
6. Aura Sedan/Wagon
7. LaCrosse

I get 7.....

From some rumors the Theta chassis will become a part of EPII

Toto · 08-08-2006, 01:42 AM

Quote:

Originally Posted by 69Firebird400

How about the BLS? I can't think of a ninth, though.

Opel Signum.

Earl_Buick_Y · 08-08-2006, 01:59 AM

Quote:

Originally Posted by Toto

Opel Signum.

Daewoo Tosca (Chevy Epica)?

Butz · 08-08-2006, 04:12 AM

So the Tosca is moving to Epsilon II in it's next generation? About time GM built all of its midsize cars of the same platform.

DuSpinnst · 08-08-2006, 06:57 AM

Quote:

Originally Posted by Toto

Opel Signum.

That would be the 9th.

DuSpinnst · 08-08-2006, 06:58 AM

Quote:

Originally Posted by Earl_Buick_Y

Daewoo Tosca (Chevy Epica)?

Probably not.

08-07-2006, 09:21 PM	#1 (permalink)
adplusone 3.8 Liter Supercharged V6 Join Date: Oct 2005 Location: Texas Drives: Long Time Chevy Driver Posts: 672	GM to save $1 billion on new development Lindsay Chappell \| \| Automotive News / August 7, 2006 - 5:21 pm General Motors' next mid-sized car will represent not just a new global platform, but a new way for the automaker to develop products. Robert Kruse, executive director of vehicle integration and the GM Performance Division, said the new system's first project will save GM $1 billion over its traditional development process. For the past two years, GM has quietly overhauled its global methods, chucking procedures that had been in place for decades, Kruse told an audience today at the Management Briefing Seminars, sponsored by the Center for Automotive Research. In its place is a new system that assigns specific vehicle segments to design and engineering centers around the world. According to Kruse, that will correct the historical problem of different regions developing redundant products and competing with each other. "We've had a lot of attempts at world cars and global architectures in the past," Kruse said. "But what we've always ended up with was a few loosely related products that weren't always transportable to other markets. "What we've created now is one global entity, designing vehicles for markets around the world," he said. The first showing from the new system will be a mid-sized vehicle being developed by GM's design center in Russelsheim, Germany. The nine products from that project have not been named or specifically planned for market launches. Kruse said the project is generating 40 percent lower costs for part and vehicle prototyping and 30 percent lower costs for engineering. Overall, he said, investment in the vehicle program will be 30 percent less than other GM programs. You may e-mail Lindsay Chappell at lchappell@crain.com __________________ Long time Chevy driver. Viva Tejas!

08-07-2006, 10:02 PM	#2 (permalink)
Kennyboy 6.0 Liter Vortec V8 Join Date: Apr 2005 Location: Long Beach, CA Drives: Caddy CTS Posts: 1,525	Re: GM to save $1 billion on new development Great. Bring those Opels and Holdens here ASAP! __________________

08-07-2006, 10:25 PM	#3 (permalink)
DuSpinnst Starship Enterpise Join Date: Jul 2005 Posts: 17,211	Re: GM to save $1 billion on new development Nine Mid-Size? 1. 9-5 2. 9-3 Sport Sedan/SportCombi/Vert 3. Vectra Sedan/Wagon 4. Malibu 5. G6 Sedan/Coupe/Vert 6. Aura Sedan/Wagon 7. LaCrosse I get 7..... __________________ The moderation here gets an F for FAILURE.

08-07-2006, 10:27 PM	#4 (permalink)
cadillacpimpin 3.8 Liter Supercharged V6 Join Date: Aug 2005 Location: In My Own Little World Drives: 2000 Lincoln LS V8 Posts: 661	Re: GM to save $1 billion on new development so does that mean that holden designed the zeta platform, and say GM DAT designed the supersmall compact car platform - Gamma? the Epsilon, Delta, and Sigma were designed here (US)? __________________ Ohhh Yeahhh Kool-aid Rocks Until That Giant Bowl of Punch Comes Busting Through Your Wall Sigma Pi Zeta-Omicron Chapter L.G. Fuad Last edited by cadillacpimpin : 08-07-2006 at 10:31 PM.

08-07-2006, 10:59 PM	#8 (permalink)
plane 6.0 Liter LS2 V8 Join Date: May 2005 Location: Just right here Drives: 1980 'Vette Posts: 4,972	Re: GM to save $1 billion on new development Don't let anybody mess with you. This isn't some exciting new way of doing business. All the've done is cut the doughnut allowance. There'll be no more company-paid Winchells, Dunkin Donuts, or Crispy-Cremes on engineers' desks from this moment forward. But look out. Toilet paper is next on the list..... __________________ Of all the properties which belong to honorable men, not one is so highly prized as that of character. Henry Clay Last edited by plane : 08-07-2006 at 11:03 PM.

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08-07-2006, 11:00 PM	#9 (permalink)
steverino 6.2 Liter Vortec V8 Join Date: Oct 2005 Location: on a golf course somewhere in US Drives: 2007 Impala SS Posts: 2,876	Re: GM to save $1 billion on new development Wow, the news about GM's turnaround just gets better by the day. I wonder if the analysts were aware of this big savings in product development. Some good things are just quietly happening behind the scenes and then BAM, there it is. Great stuff. __________________ What, Me worry - Alfred E. Neuman

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