And you know why?
Because GM can’t build a cost competitive compact car because (supposedly) “no one buys them.” And yet… Civic, Corolla, Forte, Golf, all seem to do just fine.
GM has never been able to find a niche in the market to gain a foothold. Why? Because GM’s mentality is “small cars are meant to be cheap.” Whereas the competition makes “small cars that are competent vehicles.”
The last solid attempt by GM was Saturn…. And they fumbled that ball too.
So GM leans on their Korean counterparts to provide compacts. So what we end up with are Korean-looking cars that really don’t have significant market acceptance or recognition. It might work for the Korean market, but that’s it.
Also, GM doesn’t spend time improving on designs And focusing on efficient, refine 4 cylinder engines. So, even if they have a good design, in 2 years, it hasn’t improved. THen in 4 years, it still hasn’t really been improved. Then in 6 years, sales collapse, and GM says “no one buys compact cars.”
This same scenario holds for mid-sizers as well. While Accord, Camry, and Sonata continue to be improved over time, GM doesn’t. And if it does, the value proposition doesn’t hold. Nor do quality numbers. Or technology. Or refinement. Or efficiency. Yes. Maybe the initial MSPR is lower. But the value and longevity simply isn’t there.
That’s why GM struggles.
And that’s why I say going EV isn’t going to solve all GM’s problems.