The Truly Global GM: One and a Half Years Later

[Sinner]

There's a chick with a Chevy Epica in my apartment's parkade. It's the only one I've ever seen. Definately not a popular car(haven't seen many Veronas either) and we Canadians prefer domestic products.

[Geotpf]

The US dollar is currently very weak versus almost everything except the Japanese Yen and Chinese Yuan. That means everything built in foreign countries (other than Japan and China) has increased costs. This alone probably causes/caused GM to lose money on every single foreign made GTO, G8, Astra, and Aveo they have sold/will sell. Add UAW bribe money, the 2.5% tarriff, and shipping costs, and GM is flushing a very large amount of money down the drain.

Both Daewoo's product and Chinese Buicks are also not up to American standards, with small engines with poor fuel economy. The Aveo was a bit of a success early on because of a lack of competition in the subcompact segment, which is no longer the case now that the Japanese Big 3 have jumped into the market. Suzuki has had some, but limited success with Daewoo product-and GM can't sell the rebadged versions of stuff they sell here.

[gwwyjjliu]

Great article, Ming, and excellent balanced perspective as usual. However, like many others, I disagree with bringing the Tosca to the US as a Buick. Much as I am a big fan of GMDAT Engineering, the new Tosca is a disappointment. In person, the styling is all '90's puffy-oval-bland. I liked the old Epica more with its crisp character lines and unique headlights. Under the skin, there's not much new with the Tosca and it can't compete with the Camry/Accord or even the Malibu/Aura dynamically.

However, you are right on with GM becoming more globally aligned. In the new world order:

Chevy and GM Daewoo aim for the mass-market, value for the money
Buick NA and Buick China share products with luxury and refined elegance
Pontiac and Holden are aligned toward sporty handling and performance
Saturn and Opel converge on their image of European dynamics and eco-friendliness
Cadillac, Saab, and Hummer are stand-alone.

[Butz]

Originally Posted by Ming

That's a good idea as well, and fine by me. I know I drooled over it when I was in China (You might change your mind if you saw one up close BigThreeForever). I guess I had not considered that GM might import the Chinese LaCrosse (W-body derived) as it discontinues W-body production here. Didn't stop GM from doing that with the 3400 in the Equinox.

Also, I think I'll reword my commentary so people don't focus so much on the "LaCrosse Replacement" wording. I think the LaCrosse and Lucerne could be replaced by a single vehicle like the Chinese LaCrosse, but I also think they could use an entry lux car at the low end for more volume.

I'm with you on that Buick needs an entry car and that what the next LaCrosse should be once it moves to EpsilonII and I can't stress on how important it is for it to be the same exact car in NA and China, of course there gotta be some market-special trim levels and equipments.

I really think that once GM gets Buick and Pontiac on track should be relaunched worldwide or at least in some world markets like the Middle East. They, Pontiac and Buick, still have some recognition in the ME even though they haven't been sold here since the mid 90s.

They don't need to import the whole lineup, since it might overlap with the current offering, but with the right lineup I could see them both selling 10000 cars annually, with GM's continued growth they could sell even more.

You can't imagine how many people desire real American cars, as in built in America, and the success of the new Chevy and GMC's GMT900, Cadillac and Hummer says it all.

[Butz]

Originally Posted by mbukukanyau

It's fuel efficient and AWD... plus it a good alternative to those Suzuki and corolla imports

Which is what the Vibe is underneath! A reskinned Toyota!

[iluvcamaros]

Hullo everyone I be Cleo the magik mind reedin' priestess. You be wantin' me da do a readin' of da new Buick Tosca. Wha sure chile!!

hmmmmmmm......hmmm......*C*...........hmmmmmmmm... ..*Cimma*........hmmmmmmm

Why Cimmaron! Definately be seein' da word "Cimmaron".

Do you got any idea what dat be meanin'?
-----------------------------------------------------------------------------------------------
Sorry couldn't resist, don't wanna sound like an a-hole. GM has issues with cars being too similar (Not GM!) but the answer isn't rebadging crappy Daewoos. It is flexible platforms. Hopefully Epsilon II will be able to produce an AWD upscale Lexus ES fighter along with a sporty G6, semi-sporty Euro Aura/Vectra, and middle of the road Chevy Malibu. We shall wait and see.

I personally think Buick only needs the Enclave, Zeta-Lucerne, and EII LaCrosse replacement. Maybe the Velite as a halo to bring attention to the new improved models. Why merge it into the BPG format if your gonna have a bunch of cars where is the advantage?

[Ming]

Originally Posted by Butz

I'm with you on that Buick needs an entry car and that what the next LaCrosse should be once it moves to EpsilonII ...

They don't need to import the whole lineup

You can't imagine how many people desire real American cars, as in built in America, and the success of the new Chevy and GMC's GMT900, Cadillac and Hummer says it all.

Agree with that sentiment here. Its what was on my mind when I bought my Bonneville. But when is a good thing too much? How many Epsilon II's is too many? If done well and differentiated well, that's one thing. But if it turns out to be more of the same from Buick, and if we can judge GM's future actions on what it has done so far when it comes to shared platforms, then my guess is that it would just be more of the same.

Nice to look at for fans of Buick styling at its best, conservative, a little boring, and mechanically identical to at least 2 other GM brand offerings that you could get right down the street.

How does that reverse Buick's market share slide? I don't think it does at all. It's the status quo. Give Buick some version of what Chevy, Pontiac, and now Saturn (not to mention Saab) is selling. Its the tried and failed formula. "Give it a turbo!" we cry. But when it debuts, it ends up with a Malibu powertrain. "But that's a good powertrain!" we end up rationalizing, forgetting how we just ended up with a Malibu reskin with Buick sheetmetal and Quiet Tuning and that's it.

How is that different than, say, the Rainier? How is "another Epsilon" a different and new plan? Can someone tell me why - other than the fact that GM has done this before for Buick, so it "feels right" - this is a way to keep Buick relevant and winning sales?

Very few may like my entry-Buick Daewoo idea (or Chinese LaCrosse) here, on a GM fan forum, but I think it would bring a whole new type of customer in to Buick and boost sales far more than the Buick equivalent of a Mercury Montego. Maybe it would fail. But how is keeping things as usual with nice Buick styling going to really change Buick's downward slide? Is it working with Mercury? They have some nice looking, if boring sedans.

But perhaps what Buick needs is what many here seem to be advocating: another LaCrosse, Lucerne, LeSabre, Regal, Rainier....Terazza...etc. -- the cars Buick has been selling while its market share keeps shrinking. Handsome Buick versions of something you can get elsewhere, but otherwise not unique.

I'm open to it succeeding, but I don't see it working except on paper where it looks nice to have Buick offer another sibling. that "this time" will be better than anything before it.

The Enclave is as handsome a car as Buick has offered in years. But its expensive, and its mechanically identical(?) to its Lambda siblings. If the reaction to the Enclave is anything less than fantastic, then I think we'll have our answer right there. Stay the course and keep restyling other GM USA brand cars for Buick, or try something very new.

[svx92]

Ming- I was intrigued by your comment about detroit engineeered vehicles exported- and it got me thinking more about the kappas...

what do you think of the solitise with a SAAB front end to be sold in International markets? (I don't think we need a third version in the States- but I don't beleive the pontiac has been rebadged anywhere else. The interrior has the angled driver's theme and the Sonnet heritage is there. Could be a contender against the TT in Europe

[Globalist]

Ming: Great article. Keep up the good work.

I think GM is becoming a true global company and is doing extremely well outside the U.S. with explosive growth in China and Middle East. Obviously, there is always room for improvement and the logical next steps in its global endeavor is (my A to Z for GM's globalization):
a) Offer diesel powertrains for Cadillac-- in Europe, Africa, and Middle East.
b) Make Opel models "sellable" globally like do VWs including U.S.
c) Duplicate China's success in India.
d) Grow Daewoo/Chevy
e) Give Hummer another little brother -- Great brand equity in Middle East and Africa.
f) Expand global sourcing footprint.
g) Improve suppliers quality (especially the ones in China.)
h) Win "24hr du Mans."
i) Win "Rallye Paris-Dakar."
j) Sponsor of a Soccer World Cup.
k) Enter Formula 1 (if it's still around!!!!)
l) Develop a profitable $5,000 car for India.
m) Partner with PSA (it's a jewel.)
n) Accelerate hybrid program.
o) Leadership diversity (be glocal--global but with local talent.)
p) Globalize processes/functions.
q) Embrace LEAN.
r) Embrace NPS (Net Promoter Score) as a Customer metric.
s) Watch out materials inflation.
t) Watch out Healthcare inflation.
u) Watch out China's overcapacity and competition.
v) Assume and budget for the worst (fuel price)
w) Benchsmart -- Benchmark and outsmart your competition.
x) Respect and delight your CUSTOMER.
y) Do not ignore GLOBAL WARMING!!!
z) PGFH (this one is coded since it's not very IN nowdays!!!)

[Mikkoo]

Originally Posted by Sinner

There's a chick with a Chevy Epica in my apartment's parkade. It's the only one I've ever seen. Definately not a popular car(haven't seen many Veronas either) and we Canadians prefer domestic products.

I've seen several Chevrolet Epica's here in Finland. I'd go one step further and say it would compete directly with the Malibu, therefore leave the Epica out of the American market.

[SimonDavid]

what about GM Brazil's potential input into compact trucks and SUV s?

and Wuling developing a Renault logan competitor for world

[Ming]

Originally Posted by svx92

Ming- I was intrigued by your comment about detroit engineeered vehicles exported- and it got me thinking more about the kappas...

what do you think of the solitise with a SAAB front end to be sold in International markets? (I don't think we need a third version in the States- but I don't beleive the pontiac has been rebadged anywhere else. The interrior has the angled driver's theme and the Sonnet heritage is there. Could be a contender against the TT in Europe

I think that would be great. The only potential problem is that we are already exporting the Kappa as the Opel GT, and so it would have to be different looking enough that people in markets where those brands are offered wouldn't just get an Opel GT for less instead. I'm not a big believer in twins differentiated only by sheetmetal like the Sunfire/Cavalier being sold across the street at Chevy/Pontiac dealerships. Same goes for the Saturn Sky and Pontiac Solstice, but I'm wondering if Europeans aren't more sensitive and critical of that kind of reskinning with the same powertrain & platform. From what I understand Opel and Saab are becoming more and more intertwined in their operations in Europe, and so it would need to be more of a Corvette/XLR type difference to avoid the "rebadge/reskin" stigma. At least give one of them a significantly different body style, such as a hatchback hardtop for the Saab version similar to the Sonett V4. With the turbocharged DI engine, however, it would be a great fit for Saab.

SimonDavid what about GM Brazil's potential input into compact trucks and SUV s?

and Wuling developing a Renault logan competitor for world

Definitely. We've heard that GM do Brasil will be developing small trucks, but have yet to see what it might be. They have a couple of neat possibilities including a small car-based pickup that runs on straight Ethanol or gas.

I love the Wuling vans I saw in China - wonder if GM will do anything more with them beyond the China market.

Globalist
I think GM is becoming a true global company and is doing extremely well outside the U.S. with explosive growth in China and Middle East. Obviously, there is always room for improvement and the logical next steps in its global endeavor is (my A to Z for GM's globalization):

Lots of good ideas there. You're taking my meaning to a new level, perhaps, with your list. I was focused on model sharing, but you're looking at my commentary title a bit more literally.

[Ming]

BTW, got a GM Inside Rumor that the next "Tosca" at GMDAT will be off Epsilon II (good to see GM pulling Daewoo into its global technology fold, if true), so everyone gets what they want, haha.

[Globalist]

Originally Posted by Ming

Lots of good ideas there. You're taking my meaning to a new level, perhaps, with your list. I was focused on model sharing, but you're looking at my commentary title a bit more literally.

That's true, truly global for everything--mindset, leadership, products, processes, etc.

[ponchoman49]

Originally Posted by MCGARRETT

Why do you keep pushing this Daewoo Buick thing, the car looks like a warmed over version of the last Saturn L series, I am all for Buick getting a snazzy entry level mid-sized sedan or coupe, but not some Korean thing with a Buick badged slapped in the middle of the grille, pushing something like that while calling the G6 a "rebadge" (that word has totally lost all it's meaning) costs you some points, with me at least.

I agree totally. The day they start selling rebadged Korean Buicks in NA will be the day I stop buying GM products!!