Opel, Suzuki to develop small car

[nadepalma]

Source: http://in.today.reuters.com/news/new...archived=False

Opel, Suzuki to develop small car - GM
Tue Jun 13, 2006 6:44 PM IST

TOKYO (Reuters) - Japanese compact car maker Suzuki Motor Corp and General Motors Corp's Opel division are working together to develop another small car but have not yet decided where to build it, GM said on Tuesday.

The partners collaborated on a city car sold since 2000 as both the Opel Agila and the Suzuki Wagon R+, which are built in Europe at a GM plant in Poland and Suzuki's factory in Hungary.

"We are working on a next generation of that vehicle but we haven't decided yet with Suzuki what will be the home plant for that," a GM Europe spokesman said.

"Whether we do it all in one plant, whether we share it is up in the air. There is no decision made on that yet," he said, adding it could take a year or two to determine this.

He was responding to a report in Japan's Nihon Keizai newspaper that said the two firms expect to produce about 150,000 units a year of the car, which will be equipped with a 1 to 1.3 litre engine, at Suzuki's Hungarian plant from 2008. The car will be sold under their respective brands, it added.

A Suzuki spokesman could not confirm whether Suzuki and Opel plan to develop a new car.

The paper said Suzuki will supply Opel with tens of thousands of units of the new car on an original equipment manufacturing basis, while Opel will help Suzuki procure parts to reduce costs.

GM in March sold most of its stake in Suzuki back to the Japanese car maker, but the two companies said they would continue to work together on the operational level.

[nadepalma]

I kinda wonder if it's worth Opel continuing to sell the Agila? I say this cause I could have have sworn that GM-E was thinking that perhaps the Agila was a bit too far down market for the "new" Opel. I would think that with Chevrolet supplementing the bottom end of the market, this would especially hold true as Opel tries to move further upmarket.

I wonder about this decision -- perhaps it wouldn't be better to have them brand it as a Chevrolet?

[norway12]

^^ Chevrolet has the Matiz for that.. And building a supermini is not contradictory to moving a little upmarket here in Europe. That is a US-thing, as you often think "the bigger the better". This does not apply to most European markets, so bulding this car wouldn't necessarily bring Opel's image downmarket.

[Bravada]

I don't think this is a good idea to continue the Agila given that GM has Chevy/GM DAT now. They should focus on developing a replacement for the Matiz (which btw is also a distant descendant of Suzuki technology) and kill the embarassing Opel. BTW, both Agila and Wagon R+ are made in Gliwice, Poland now, the Suzuki gave way to Swift, SX4 and Sedici in Hungary. GM and Suzuki could actually use the FSO to make the new car, as the factory still makes old Matizes (?).

[toronado10]

This is not such a good thing, I think. Especially if the new car is anything like the old Wagon R or Agila.

[SonicAerio]

Maybe this vehicle could be a design for that Hybrid sedan we heard about Suzuki producing off the swift platform for 2009....

Makes sense considering they are working on hybrid technology together, and suzuki is planning on creating a New"forenza" and the Aerio will be replaced... GM getting cheaper parts for Suzuki to produce and make the vehicles seems to make the most sense for both lookinf\king to break into the market...

IMO this seems to line up the best with what both companies plan for the future

[paul8488]

Is there anything actually wrong with the Agila, aside from looking dorky? Is it a good vehicle? I see enough of them, and find it intriguing. I'd buy one as a city car, if for no other reason than there are already enough Smart cars. Plus, it's got 5 doors and a back seat.

[kenman923]

Great, now Opel (Saturn in the U.S.) will be competing against itself.

[Bravada]

Is there anything actually wrong with the Agila, aside from looking dorky? Is it a good vehicle? I see enough of them, and find it intriguing. I'd buy one as a city car, if for no other reason than there are already enough Smart cars. Plus, it's got 5 doors and a back seat.

It is not bad, but it's not splendid either. In Germany, the Agila starts at about EUR 10K, the Corsa at EUR 11K, and the Spark at EUR 8K. I don't know why would anybody pay 2K more for an uglier car, especially that for 1K more you can get a decent REAL car (not to mention a Kalos 5-door at the price of the Agila, Picanto and Panda south of EUR 9K, or Pug 107 just north of it).

[paul8488]

Ah thanks Bravada. It's not odd enough to merit an extra grand over the Corsa, I'll agree for sure.

[Bravada]

Just to make sure - it's one grand LESS than the Corsa, but what you get is a self-propelled refrigerator (w/o AC actually) rather than a supermini. Companies like Toyota have to offer a city car under their own brand because they don't have an "econo" brand. GM actually does, and even has an econo city car, I don't see any reason why Opel should have one too. Smart is another league, it's a premium city car, and for a reason it is a standalone brand. Besides, what you get is some real city-driving advantages, like 1 metre rather than 10 cms less.

[cfch3399]

Pathetic. GM/Opel can't develop their own **************** small cars?

[paul8488]

Oops I meant under. I DID understand, just responded wrong.

[61BelAir]

Here is a photo I took this morning. Maybe someone here can Identify. It had Chevy Bowties on the car, but no model identification. It had Michigan mfg plates as well. Sorry about the photo, took it with my cell

http://descention.com/Cadillac/gm%201.jpg

[paul8488]

Optra5 buddy! That's a good angle for that car too! Looks good!