Lutz: Importing Astra Saved GM $900m: Low Dollar Could Make It A "GM Charity Project"

[Perian]

Link: https://home.autonews.com/clickshare...9536836&CSx=22

Bringing the redesigned Opel Astra to the American market as a Saturn has saved General Motors about $900 million in development costs, says GM's vice chairman and product czar, Bob Lutz.

"Its adaptation to American requirements cost less than $100 million," Lutz said at the car's North American press introduction here. "In the future," Lutz said, "Opel and Saturn will share about 90 percent of their model portfolios."

The Saturn Astra also will help boost capacity utilization at the Opel plant in Antwerp, Belgium, which will build the hatchback for both brands. About 45,000 Saturn versions are expected to be produced there annually.

Despite the current unfavorable relationship between the euro and the dollar, Lutz stressed that importing the Astra from Europe is still a profitable business case.

"But if exchange rate trends go on the way they have,'' he said, "the Astra will become a GM charity project."

The dollar, which has fallen nearly 40 percent against the euro since 2001, is trading at around $1.45 currently.

[Perian]

Here's hoping the Astra sells well enough to encourage production in North America.

[genjy]

laff

[Kennyboy]

I wonder what would happen if the dollar keeps on deprecating?

[DuSpinnst]

Originally Posted by Kennyboy

I wonder what would happen if the dollar keeps on deprecating?

Production moves to Mexico.

Remember the Astra is sold WORLDWIDE. Moving production to Mexico (or the US) allows GM to save money (or make more money) on every car built.

[slowinthefastlane]

Could have put a few more bucks into giving it an AUX port or bringing over the Nav system and the diesels that the Vauxhall Astra has in the UK. Of course, then it would have more advanced options than the flagship Aura sedan. Can't have that now, can we? The Aura does lead in cup holders, though.

[Koasterking]

I hope the Astra sells well so we can get other varietions over here; redline, twin top, pano winshield, etc. As Lutx says, Saturn and Opel will share 90% of their products. Lets hope it happens quick. I want the Corsa asap!

[b4z]

Deprecating is not the word for what the dollar is doing. LOLZ.

[big swede]

Originally Posted by b4z

Deprecating is not the word for what the dollar is doing. LOLZ.

Not sure about that

[PocoToro]

This could set the stage for other non north American GM products................
Like the Holden Ute

I want a Astra Twin Top or Pontiac Ute

[Joevette]

What was it that the Ford executive said about why they could not import the Euro Focus over to America????? hmm...

[DiRF]

Originally Posted by genjy

laff

...and to the right side of the plane you can see what happens when a car company's American division snubs its European division and doesn't let intelligence get in the way of selfish pride.
"We don't need no foreign-updated Focus, we can take the same one we've been selling for 8 years and just slap a Korean-looking face on it!"

[camaro_freak]

Originally Posted by slowinthefastlane

Could have put a few more bucks into giving it an AUX port or bringing over the Nav system and the diesels that the Vauxhall Astra has in the UK. Of course, then it would have more advanced options than the flagship Aura sedan. Can't have that now, can we? The Aura does lead in cup holders, though.

I totally agree with this statement... should have been a no brainer to go ahead and spend some money giving the extra goodies the kids love these days if it saved them almost a billion dollars in development costs!

[ronald mcretard]

Originally Posted by camaro_freak

I totally agree with this statement... should have been a no brainer to go ahead and spend some money giving the extra goodies the kids love these days if it saved them almost a billion dollars in development costs!

booya +1

[FierySolstice]

Nice car but needs more horsepower!! Redline anyone?