Magna Group Reportedly Pulls Plug on Building Ampera

[SimonDavid]

Originally Posted by syr74

Or, to be blunt, Magna could actually be looking at this as a purely business venture in which case the near certainty that this car is going to bleed money would have to prove problematic. While I am not on board with the hybrid approach in general regardless of make I do understand the potential benefits of producing such a car for US consumption.....marketing, greenie goodwill, the perception of being on the cutting edge, hybrids are the new 'it' car to have.

The problem here is that, in Europe, those potential benefits just aren't there, at least not it anything like the same measure as they exist here. As best as I can tell the general consensus in Europe is that the whole hybrid genre is a bit silly with greater emphasis being placed on advanced diesel tech instead, even Toyota's hybrid darling is just another also-ran across the pond. And therein lies the rub. Take the marketing goodwill and potentially improved perception out of the deal and Volt is little more than an expensive, C segment car that loses money.

In that light it is easy to see why Magna might not be overly interested, in fact for Magna I think this was the easiest decision they'll get to make for some time.

I agree. A turbo diesel golf gets the same mileage in the real world as a Prius, especially when you do a bit of 80 mph on the motorway as part of your daily commute.

And the Volt is impractical for European cities where everyone lives in apartments. Limited appeal here.

[SimonDavid]

Originally Posted by jamiepeterson2

Overall, this should add one or two jobs at Hamtramck. Big whoop!

Volt production will be lucky to top 20,000 units and the 5,000 or so Amperas to be exported to Europe could easily be slotted into the production line in Michigan. So, why even consider a European assembly plant in the first place?

Same reason they had five different plants building Astras - under "old GM" Vauxhall / Opel was a big make work program.

[CaptainDan]

Originally Posted by chevyman1973

I think this is great news then gm can export these cars instead of having them built in another country!

Exactly! This is nothing but good news for GM/US/Michigan. If any Ampere is built (Chevy or Opel) it will be built in Detroit.

Good for the DHam plant, bad for the Ellesmere plant. But I can certainly understand Opel's reluctance to dedicate an assembly plant to a vehicle which they don't think will sell in large enough numbers to justify the expense.

[MechEng]

Originally Posted by jamiepeterson2

Overall, this should add one or two jobs at Hamtramck. Big whoop!

Volt production will be lucky to top 20,000 units and the 5,000 or so Amperas to be exported to Europe could easily be slotted into the production line in Michigan. So, why even consider a European assembly plant in the first place?

I did a cost benefit analysis of buying a Volt vs a Cruze. I found that I would need gas prices to average $1.48/L (~$5.30/gal US dollars and gallons) to break even. A bit steep in Canada but in Europe gas is already this expensive.

I think you can even make an economic case for Volt today in Europe. People in Europe tend to put a little more thought into there vehicle purchases than people in North America and I wouldn't be supprised if there was more demand in Europe for Voltec than in North America initially.

FYI Currently gas is ~$0.9/L in Ontario ($3.25/gal for the yanks) 1 CAD = 0.95 US
Gas is currently 105p/L in the UK ($6.50/gal for the yanks) 1.63gbp = 1 US$ and 3.79L = 1 US gal

[staspeterson]

Magna's decision to kill the Ampera is a unsolicited godsend to GM. With GM forced to sell it's European subsidiaries it hasrequired GM to scramble and try to replace them with Chevrolet.

Opel is viewed as the upscale European builder of cars. Chevrolet in Europe is viewed as the outlet for cheap Korean entry level cars. The Cruze is changing that a little, as it is way upscale from the unlamented Lacetti. But its still not an Astra.

Its like comparing a Chevy and a Buick here in the States. The Opel version of the improved Cruze is the Astra, with an improved suspension, incorporating a Watts link added to the Cruze suspension, better lights, interior fittings and perhaps more "style". Even when the Cruze gets the 1.4 liter turbo Family 0 to cure the oft criticized Family I engine problems, Opel will get that improvement too.

But there won't be an Opel VOLT so Chevrolet gets a boost in its high tech image. One not immediately offset by a "better Opel" version.