Aura Green Line--Just What GM Needs

[nsap]

Aura Green Line--Just What GM Needs
By: NSAP
March 20, 2007

Yesterday GM announced that the 2007 Saturn Aura Green Line hybrid would have a starting price of $22,695—making it the lowest priced hybrid on the market. I’ve been quick to denounce the Aura GL as a pointless attempt by GM to gain some “hybrid” sales. However, after seeing the information released yesterday, I think the Aura GL may be just what GM needed. The car makes a lot of sense.

So far Aura sales have been questionable, selling only 7,898 units thus far this year. If sales don’t pick up in the coming Spring months, I for one am going to be convinced that something has failed to do its job—be it marketing, the dealers, or GM. One thing we all must remember when critiquing the Aura’s sales numbers is that there is no four-cylinder model. A huge chunk of Camry, Accord, and Fusion sales are four-cylinder models (I thought at one time only 25% of Camry sales were V6 models). That’s where I think the new Green Line will come in nicely.

The Aura GL uses GM’s Belt Alternator Starter system. Basically that means it has a huge alternator, a battery, and rejuvenating brakes. The system allows the car to run on total electric at stops, and assists the gas engine much of the time. It’s a very simple set-up, but is good for up to 30% increase in fuel economy, and the best part…it’s cheap! Traditional hybrid owners are quick to knock the BAS system because it isn’t a “full” hybrid. In other words, it doesn’t use Toyota’s Hybrid Synergy Drive, so it isn’t a “true” hybrid. That’s fine, traditional hybrid buyers will not be buying the Aura GL anyway.

Let’s have an over-view of what we have so far. The Aura is the North American Car of the Year; it comes with two V6 powertrains, is beating the Camry in reviews, and is being sold by a brand with a stellar customer service reputation. Sounds like a good deal right? Well, for V6 buyers it is. That’s why I think the Green Line will come to be one of the smartest moves GM has made with the Aura. It’s basically a normal four-cylinder midsize sedan.

Thing is, this four-cylinder midsize sedan has a hybrid badge on it, and gets much better fuel economy ratings than any other four-cylinder midsize sedan in its class. Plus the fact that the Aura qualifies for a $1,300 tax credit by the federal government is just icing on the cake. According to Toyota.com a base Camry four-cylinder costs $20,140 with EPA ratings of 24 city, 33 highway. Compare that to the base Aura GL’s price of $22,695 and EPA ratings of 28 city, 35 highway, and knock off the $1,300 tax credit the feds are going to send you at tax time…the Aura GL begins to look like the best four-cylinder midsize sedan for the money. As long as the boneheads in GM marketing can get the word out about the Aura GL, I see no reason why this car couldn’t really do well in the market.

[CrunkedRL]

Good review and observations. I agree marketing will be very critical in getting the word out about such a unique and economical vehicle. I still have yet to see a commercial or other advertisement about the Vue GL. Either way I think the car's pricepoints are pretty reasonable and between tax credits and fuel savings the mild hybrid technology will undoubtly pay for itself within the first couple years of ownership.

[kenman923]

I am surprised that the Aura hasn't sold as well. If they don't sell well, then it would be that marketing dropped the ball.

[Bornfromparents]

Marketing for Gm seems to be hit or miss, we need a grandslam for this and other new products like the lambdas.

[MBHockey13]

Saturn's marketing is all wrong. They have a unique and winning lineup on their hands - they are selling cars with real European engineering and styling, not to mention sportier handling and other features the typical car enthusiast would like.

However, their ads are WAY too "touchy-feely", like they're selling minivans, or even worse, new Plymouths (remember those awful 'Plymouth - Smart' ads?). It completely subtracts the value of the European connection of the new Saturn and just reinforces Saturns as a car brand for middle-aged women who don't like to be pressured at a car dealer. I should know - my mom bought three in a row at one time.

I already know what their hybrid ads will focus on - more manby-pamby feel good crap about how it's so wonderful for the ferns in the forest as opposed to how it is such a fantastic deal - higher MPG advantages and more equipment at a much better price.

I mean, who's idea was it to send that NA Car of the Year award with a Polaroid camera to Aura buyers?

[Canuck]

Good commentary NSAP. How large is the dealer network for Saturn? Can the poor sales be caused by a lack of dealers for consumers to purchase an Aura?
How many Toyota and Honda dealerships are there compared to Saturn stores? Urban, suburban, and rural dealer does each have? I am just speculating as to why Saturn has slow sales.

[nsap]

Originally Posted by Canuck

Good commentary NSAP. How large is the dealer network for Saturn? Can the poor sales be caused by a lack of dealers for consumers to purchase an Aura?
How many Toyota and Honda dealerships are there compared to Saturn stores? Urban, suburban, and rural dealer does each have? I am just speculating as to why Saturn has slow sales.

Last year I was told Saturn had ~470 retailers nation-wide.

[mbukukanyau]

Good article.
GM Shortchanged Aura on interior. Lack of Navigation option does not help it either. There is a guy at my work who bought the Camry for it Navigation, though I had sold him on the Aura and he liked the styling better

[JonathanRohr]

Originally Posted by kenman923

I am surprised that the Aura hasn't sold as well. If they don't sell well, then it would be that marketing dropped the ball.

Well, give it some time. This is the first time that Saturn has had a true mid-size, and its also a brand new name. People know that Chevy or Ford have always had a midsize, regardless of name change be it the Lumina/Malibu, Taurus/Fusion. But saturn is faced with a double-whammy in this respect.

Further, there arent too many Saturn dealerships around. I feel as though there is a Chevy and Ford dealership at every dealer-cluster I see, yet the only Saturn dealership I know of is far away and by itself. Saturn just dosent have the network to sell as many of these.

Regardless, GM should treat the Aura the way Toyota is treating the Tundra. As in, dont just dump it because sales are slow; improve it because sales are slow. Keep making it better, keep advertising, keep getting the word out, and slowly but surely chip away at the champions market share.

[minnfang]

Originally Posted by Bornfromparents

Marketing for Gm seems to be hit or miss, we need a grandslam for this and other new products like the lambdas.

No kidding! You have to really dig into the Saturn web site to find any mention of the Aura Hybrid. If it's really coming out this spring they should at least already be working on building awareness via their web site. That costs next to nothing.

[mkaresh]

The brakes don't recapture energy, the motor/generator (or whatever they call it) does. I haven't looked into the details of this system, but have been assuming that a single unit serves as a generator and motor. In the Prius a second electric motor provides the propulsion, while the first one operates the CVT and generates electricity.

[nsap]

Originally Posted by mkaresh

The brakes don't recapture energy, the motor/generator (or whatever they call it) does. I haven't looked into the details of this system, but have been assuming that a single unit serves as a generator and motor. In the Prius a second electric motor provides the propulsion, while the first one operates the CVT and generates electricity.

GM calls it "rejuvenating braking," so that's what I called it. I wasn't about to get technical, as that was not the point of the article.

[telo]

I would seriously consider buying the Green Line especially since our province offers $2000 back when you buy one, but come on, why does the hybrid have to have ugly wheels? Is that an industry standard? The civic hybrid has horrible ones too...
They look like old Malibu wheels.

[1487]

Saturn said there will be no dedicated ad campaign for the Aura hybrid. I read this a few weeks ago. They basically said there isnt enough ad money available to give this vehicle its own campaign.

[yamahr1]

Originally Posted by telo

I would seriously consider buying the Green Line especially since our province offers $2000 back when you buy one, but come on, why does the hybrid have to have ugly wheels? Is that an industry standard? The civic hybrid has horrible ones too...
They look like old Malibu wheels.

I've similarly critcized GM on Lutz's blog site. I think they don't understand that there are people who see hybrids as having high-tech gadget appeal, not just a way to save money. As such, there's no reason they shouldn't have a Denali hybrid option in the GMC lineup, for example. Instead, they seem to think hybrids only appeal to people who want the cheapest thing going, even to the point of stripping the body side moulding off other models.