Commentary: UTE in the US = Failure

[Branden]

GM Holden introduces new Holden UTE; US buyers wait with baited breath the headline read….or maybe not...

Last week Holden released details on the much discussed VE series UTE, putting to bed rumors it may not return. Every time the UTE is mentioned on an American car enthusiast forum/website, someone is destined to mention how it would make an awesome El Camino and GM needs it here NOW. I am a car enthusiast at heart and can understand people's afflictions with strange cars. I know a guy who has a thing for 70's Ford Granada's which are beastly in my opinion. I personally love the Fox body Ford T-bird from 1987-88 (Especially the Turbo Coupe). That being said, ever since I was little I always kind of scratched my head when I saw an El Camino on the road. It just never made sense to me that someone would rip out most of the usable passenger space in a car, and throw in a truck bed. A truck bed mind you, that is still attached to a light duty car platform and cannot seriously haul. Keep in mind, I grew in the 80's, so to me the El Camino kind of looked like a Monte Carlo with a serious birth defect. While I am certain there are people who love the El Camino with a passion, they are in much smaller numbers than you typical enthusiast cars (Camaro, Corvette, GTO, Chevelle for example).

Because of this, I kind of chuckle when people say how great it would be to have the UTE exported here as an El Camino. While it is a cool idea, bringing this thing over is a business mistake, plain and simple. I have been doing this a while now, and I cannot remember coming across one person who loved the El Camino so much they would buy a new one, no questions asked. I am sure they are some out there, but they would pale in comparison to the people who paid $7K over sticker for a new GTO, or are putting deposits down on Camaro's based on the concept version alone. Because of this, the El Camino has one strike against it because in that there is simply not a huge enthusiast base relative to the other car's GM markets based on heritage.
To understand why the El Camino was a success in the past, and why it will fail today, you have to understand the root of what the car was. Basically, an El Camino has always been a large car platform that only seats two people with a truck bed on the back. The only reason I can think this was cool years ago is because the trucks of 20+ years ago rode pretty rough, and were used mostly for work. If a family needed to haul, and El Camino made sense as a second car to the usual family sedan/wagon. Fast forward to today, and the family driveway is much different. Every family I can think of has the same basic vehicles. Your typical family will have a truck/SUV and a four door sedan typically. If the family is well off, they will have third fun car like a coupe, Jeep, or whatever.

Now let's try and figure out where the El Camino fit's in today's family driveway. First off, you KNOW the four door sedan in the driveway is safe. The four door sedan has been a staple of American driveways for decades, and that is not changing. The trucks and SUV's that see family hauling duties now are relative newcomers to the game. Popularized because minivans became uncool, and sedan's too small, Americans have turned to trucks and SUV's to get everyone/everything where they need to be in comfort. The trucks and SUV's of today ride almost as nice as cars, seat 5 people, and will haul almost anything any family needs. Want something good on gas? Get a FWD crossover. Need a jack of all trades vehicle that mom can drive, and dad can haul with? Buy an Avalanche. Are you a father who needs a truck for work, but also needs to carry the kids occasionally? Buy a crew cab truck. The most damning thing that will prevent the El Camino from being purchased as a utility vehicle is that sales of standard cab trucks are essentially dead (less than 5% of truck sales). If people are not buying their trucks with two seats, then the two seat El Camino is even less desirable. I honestly can see no scenario where a family will be dumping their truck or SUV for an El Camino.

Because of the above, a new El Camino will be relegated to the same types of markets you see cars like the new Camaro, GTO, etc selling well to. That is the childless couples, single males, or the family's looking for a third "fun" car. Here the El Camino would also face an uphill battle because the competition is so compelling. It is easy to say a new El Camino is cool, but what would be your choice in the following scenarios? New Camaro or new El Camino? New GTO or New El Camino? Mustang GT or El Camino? I think I would also rather have a G8 than an El Camino. That will leave the El Camino selling to the few true enthusiasts out there, and who else? The El Camino will fail not because it is a bad car, but because there are more compelling options on the market.

I have seen it mentioned elsewhere that if the UTE is exported here it may not be called El Camino automatically. It may instead be a GMC or Pontiac with some generic name until GM-NA can make a proper El Camino at Oshwa. This is an even bigger mistake in my opinion. First off, maybe I am too young, but someone please enlighten me as to how a UTE with a Chevy face would not be a proper El Camino? Honestly, what tidbit of El Camino history am I missing here? With GTO, it was obvious that you need a proper dual exhaust, and hood scoops. With the El Camino, I picture a Monte Carlo egg crate grill, and that's about it. Lastly, if you take the El Camino "heritage" card from this vehicle, it will be dead on arrival, plain and simple. I say this because initially I would expect all the El Camino sale to go to those poor souls out there who have sweated almost 20 years for a new El Camino. Without the warm and fuzzy feeling the El Camino name brings, it is a vehicle that answers a question no one asked.
Many of you are probably wondering why I am whipping on the poor UTE. After all, to export it here would cost GM almost nothing, and it will create a few warm and fuzzies. The main reason I would be upset with the UTE being exported here is because Holden has some much better stuff in the pipeline that I would rather see here quicker. One thing I would love to see is the VE wagon, possibly with AWD. This would be a compelling option in the family sedan market, especially if it had more emotion than the Magnum. Maybe it could be the new Chevy Nomad. Sales would not tear the world up, but Magnum has shown the market will support that type of vehicle to an extent.

Even beyond the wagon, the car I want here the most is a new GTO. I have always been upset that the GTO did not get a fair shake the last time around. The 2004 GTO should have never made it here in the form we received it. It's not rocket science, a GTO with no hood scoops, and exhaust on the same side is destined to fail. Talk about not understanding the market. Sales were good initially, but once Pontiac ran out of customers willing to pay $7K for a half baked car, they took a serious hit. Had it been delayed 6 months, and they addressed the styling issues (I personally don't think LS1 vs. LS2 mattered), the car would be looked upon much differently today. By the time the 2005 model rolled around with proper hood scoops, and exhaust, 04's were being sold for ten thousand under sticker, when people had bought them only months before for seven thousand OVER sticker. Imagine paying $37,000 for a car that is being sold later in the model for $23,000. I feel sorry for the true enthusiasts who lined up to buy a 04 GTO no questions asked because they ended up most hurt by GM's poor decision.

All that being said, the true reason the GTO was not a hot seller is obvious to anyone who test drove it. The car had just enough impracticalities to make it a no go for many families. It was a large car, but had the smallest trunk in recent memory. It had a huge back seat, but the seats did not go far enough forward to get anything wider than 12" back there. If you have a kid in a car seat, look elsewhere, the 2004-06 GTO is not your car. I would love to know how many GTO sales were lost to wives putting their foot down in showrooms. This relegated the GTO to the same third car, childless couple, single male market the El Camino is headed for. Sales in this market have never been high unless your name is Mustang or Camaro.
All that being said, before a UTE, or wagon, GM, I am begging you, please give me a GTO with a proper truck, decent rear seat access, and fold down rear seats. As long as the styling is in line with the G8, you will sell everyone you can make. I really think the American market is craving a larger than Mustang RWD V8 coupe that is practical for family use.

Originally Posted by GMI's Holden Moderator, JoeT - Why A US Ute Would Not Be A Failure

To start with people have got to stop looking at the new Ute as a light truck and more as a Coupe-Utility (coupe being the key word).
Holden has focused the Ute more as a two-seater sports car that can carry some gear rather than a workhorses, as it has in years gone by, and thats why I think a Pontiac G8 Ute will be a bigger success than a GMC or Chevrolet version. Out here for some the SS Ute is a paupers Monaro, so there is no reason why it couldn't sell as a paupers GTO over there.

A 4-door Ute is not being considered by GM or Holden - Period!

If you want a 4-door utility/light truck in the US, GM already plenty of them with the Chevrolet Avalanche & GMC Canyon, just as we do down here with the popular Holden Rodeo utility/light truck range.

This is the reason why Holden has developed the new Ute as more of a sports coupe rather than a work horse, as that market is already well covered.
This is the way the Australian Ute sales have been heading for years and why Holden made the decision to aim the new Ute at that profitable market.

Stop thinking of the Ute as a light truck, because that is no longer the case. The fact it now carries less than any other Ute before it proves this.
Think of the new Ute as a fun, masculine sports coupe-utility that you can carry your tools in on the weekdays and go cruising in on a weekend.

I've have said this several time, but I am starting to believe that the concept of the new Ute and it's place in the world is just too much for some Americans to understand.

Now, considering statistically most vehicles have two or less people in them the vast majority of the time, why does a family need two or more 4 or 5 seater vehicles?
Think about it. How many time do you 4-door 5-seat light truck owners travel to work everyday carrying only your tools and equipment weighing less that 400kg with only you and maybe one workmate on board? Most of the time, I bet.

If you need extra seats every now and again, just use the other half's family mover. It's will save you money and boost your driving excitement all at the same time!
And that's why the 2-seater Ute has been an Aussie favourite for well over 50 years.

That's one of the reasons why the V8 Holden Ute SS has been growing in popularity and the reason why the new Ute is sportier than ever - it's low price tag.

Not every V8 car enthusiast can afford a Commodore/G8, Monaro/GTO or Camaro, especially young blokes who can't own both a sports Coupe/Sedan and a work vehicle, but can afford a shiny new V8 Ute that combines the best of both worlds and offers the same equipment levels and performance for over $10,000 less than the Monaro.

Similar model descriptions
2005 Monaro $60,490 ($49,527US) Real US price $32,295
2005 Ute $40,940 ($33,520US) Possible US price $21,857

If they only sell the sportier V6 SV6 and the V8 SS & SS-V models at the right price and market them to the right audience (young to middle aged rev head tradies) then it will sell well. They'd just not want to import too many of them until they find out how popular they really are, unlike the GTO sales over-estimation problem.

If small manufactures can make a success with limited sales in new markets then there is no reason why a global giant like GM can't do the same with one of it's products.

It may be niche, but if it were to be a Pontiac no special Ute only cost should be incurred and cost no more to produce and ship that a G8 sedan, as they both come down the same production line, fitted with the same Pontiac frontend and interior and then shipped over on the same ship to the same dealers in the US.

If the Ute sells to GM's expectations in the US at a tidy profit, it will be a success. Simple as that.

[Slideways]

You make a lot of good points, but I still think that the styling, both inside and out, would make a fair amount of people consider it. It would never be a big seller, but it would just be too easy not to do it. You can dismiss my opinion because I am an enthusiast, but as much as Pontiac needs the G6, part of me would rather have had Chevy get it as a Chevelle and have the El Camino with the same front-end right next to it in the showroom.

[chad4835]

I completely agree with your UTE assessment and feel like GM has other fish to fry in the U.S. I am sure there are those who will disagree but has anyone seen the Subaru they came out with a couple of years ago on the road? I think it is called the Brat. If they really feel the need to bring this to the U.S. they will need to figure out an extended version or four door.

[Z28x]

Make it limited edition.

If only 10,000 sell in 2 years people will call it a flop. But if it is sold as 1 of 10,000 limited edition El Camions with a number badge it will be see as a hit.

[THE_SMURF]

Originally Posted by Z28x

Make it limited edition.

If only 10,000 sell in 2 years people will call it a flop. But if it is sold as 1 of 10,000 limited edition El Camions with a number badge it will be see as a hit.

Call it an S-10 with three engine ops and see what happens. It is about the right size and class.
The Canyon/Calorado twins are full sized.
PS> The El Camino has always been Spanish for "Funky Old Man and/or RedNeck Ride."

[TahoeMikeZ71]

Originally Posted by THE_SMURF

The Canyon/Calorado twins are full sized.

They are midsized.

[Gatecrasher R/T]

You make many good points. But I have to rebut this one...

It just never made sense to me that someone would rip out most of the usable passenger space in a car, and throw in a truck bed. A truck bed mind you, that is still attached to a light duty car platform and cannot seriously haul.

with Honda Ridgeline. Granted, that one seats 4 and is on a mini-van platform, but the similarities are still there. There are a lot of people out there who just want a "truck" to haul a few bags of potting soil and some 2x4s home from Lowes.

[ChevroletRevived]

Good article, Branden! I've been saying things along these lines about bringing the Ute to the U.S; it wouldn't work or sell in enough volumes (at good enough margins) to make it worth it.

[GTODemon]

As an owner of the GTO I can fully attest that the GTO was never going to be a "hit" in GM terms. There aren't enough folks out there willing to pay $30K for a gas guzzling, stiff riding, small trunk having road rocket with high insurance premiums and absolutely awful wet road/snow traction. Don't get me wrong - I LOVE MY CAR - it's the only GM vehicle I have ever considered buying. The GTO sales should have been compared to the sales of the M3, Porsche Boxter or similar single focused, limited utility vehicles.

The new El Camino should be viewed in a similar light. 10,000 - 15,000 units per year is pretty darn good for a limited utility vehicle like this. You want 100,000 units per year, then stick to mass appeal vehicles like sedans and SUV's. Bravo to GM for introducing the occassional car that is not a mainstream, 100,000 unit vehicle. It shows they have a pulse and maybe they might get lucky and have a sleeper hit on their hands.

[mcool]

You make good points, and your skepticism is warranted. The E.C. has been missing from our market for a long time now while the UTE soldiered on under several brands in Aus.

I think GM's thinking should come down to volume. In retrospect, the expectations for the GTO were set too high for the dated-styling and lack of the LS2 engine at launch. If GM wants to hit full capacity in Aus and only needs to sell 10-15K units here to do so, maybe it would be worth it. As I ultimately pondered, it may just work best as a Pontiac offering given the tooling is already done for the front clip and it might look too much like a rebadge here under any other brand.

Ultimately, I think GM should look to sell more G8s, with additional offerings like a GXP, coupe, and maybe a wagon, before it throws the UTE our way. If the G8 has high demand, it sure would be nice to tap the capcity in Oz for more desireable sedan units instead of concurrently marketing a limited-volume sport truck in the UTE. We saw how well the largely impractical SSR did, this presents a similar issue when thinking of the 2-passenger layout.

[Perian]

Please...No More SSRs.

In the words of that Buick Enclave buyer from the WSJ article: No Way, No How.

[ijsegurola]

can anyone say SSR part 2?????

[Koasterking]

When I was young, I never like thew El camino. Like you said, it's a car with a truck bed; not much of a people hualer. And it's not. It can only seat two people. The only ones that are going to dig it are the ones who are going to modify them.

[Steel4ring]

Folks remember...the tooling and development are already paid for with the Ute down under.....every sale is icing on the cake......I would take the four door version, but, suggest GM just stick to the standard version in performance trim.

[BBDOS CV8]

But isn't the American driveway changing? I just came back from the US and definitely yes, in the snow belts everyone seems to have a sedan and AWD. But not in urban areas, and not in California when I was there IIRC. Often they had a sedan and a sports car with about the same practicality as a Ute.

Australian driveways are likely to have a his'n'hers car which will be a sedan or small SUV or similar. The Ute driver is usually a DINK male, who might be into dirtbiking, jetskiing etc. The thing about a Ute which is not true about a full-frame truck is it is as easy and practical (more so in some circumstances)as a car. But will also haul significant loads like a tradesman's tools, or a bed and furnishings if you're moving, or your outboard motor or sails for boating.

But it has the same mechanicals, servicing is identical and fuel economy if anything is better. Any parts you develop for G8 performance/handling will bolt straight on. The design/development money is spent - a US left-drive version could be built today from the export parts bin with either Chevvy or Pontiac badges.

The other factor is price: a SS ute with the same six-litre/six-speed driveline and creature comforts as a SS Commodore sedan will cost anything up to $US6K less. Many young males buy them in Australia because it is a cheap, loaded V8 2-door sports car, which will achieve 20/30mpg economy and will still corner, drive and park pretty much like a sedan. And it has a huge open load area capable of carrying 1100lbs. As the Aussie outdoor lifestyle is pretty much what the US one is, it would seem to be a monty. As they are lighter than the equivalent sedan, take one on in a stoplight GP at your peril. 100lbs in the back and traction ceases to be an issue.

And this car has the same 4/5 star NCAP, quad airbags, up to date handling/stability/traction control, noise suppression etc etc etc as a standard Commodore sedan. Which is more than any Japanese light commercial-based buzzbox, or any fullsize SUV sharing it's underpinnings with a 6,000lb truck that rides and handles like a block of apartments.

With wheels and dess-up items it also looks tough. At Australian dragstrips there are tons of these, both speed-shop haulers which double as demo/mod-platforms; and private owners. If these were to hit as a niche with 20/30-something guys it could rapidly become a cult. After all, who would presume a basic little Japanese turbo econobox that sounds like a VW Beetle with a holed exhaust would ever be a hit?

We don't know if the Ute will fly in the US - but as the G8 which shares 75% of components with it is coming there, and the engineering and compliance is the same, it's not going to cost GM US much to find out. Certainly a fraction of the cost of producing a GTO which by Branden's admission is even more narrow focus.

Fully 20% of Commodore sales have traditionally been Utes, and 40% are high-margin V8s which sell themselves. That's a nice business to have.

Even if you sell 20K a year only, the Ute is a high margin vehicle because of content, but doesn't cost much to make compared to a car, especially now they build them on the same line as Commodores and not hand-make the chassis off in the paint shop with the other LWB models.

The El Camino only ever went away because the RWD fullsize cars it was built off died. And a FWD Ute pretty much sucks ass. It might not sell in the snowbelt - but there are enough Americans who never experience that much snow anyway.