[Perian]

Link: http://www.autonews.com/apps/pbcs.dll/article?AID=/20081103/ANA03/811030365/1197

Article quote:

Jamie LaReau - Automotive News - November 3, 2008

DETROIT — General Motors executives are running the company "minute by minute" as they slash the product development budget to save as much as $1.5 billion.

GM's decision to delay key vehicles such as the Chevrolet Cruze as long as a year is a sign of desperation, analysts warn. The bottom line: Dealers won't get a timely delivery of the products that are supposed to ensure GM's recovery.

But GM executives are working to restore the Cruze to its initial intended launch date, the source noted. GM had planned to launch the Cruze in 2010 as a 2011 model.

Industry analyst Doug Scott says GM should do everything possible to protect high-volume vehicles like the Cruze, which has been tentatively delayed six months to a year. GM had planned to launch the Cruze in 2010 as a 2011 model.

"I find it difficult to believe that they would not bring the Cruze to market and put everything else on hold," said Scott, who is senior vice president of the consulting firm GfK Automotive in suburban Detroit. "This is an environment where a core model strategy is absolutely valuable, and that means you have to have two models on full throttle. You can't do it just on the back of the Malibu."

Full article at link.

 

[Perian]

The Cruze must go Job One on-time.

 

[GMforME]

Perian
Heres my hypothesis. The plants where the Cruze and the Cruze's powertrain are to be built. (ie Lordstown, Flint, and for a great part the use of Hamtramk) all fall under the plant age that make them eligible for the application of funds from the 25 billion in low intrest loans set aside from the energy department. I believe GM has full intention to make use of those funds and expected the release of them for retooling of those plants this year not next. I don't know for a fact but I would bet that there is some clause or restriction on retroactively paying the costs associated with those retools if the funds are spent prior to the release of those GOVT funds. This is the only plausable explanation. Why take a 10% loan this year when they can get a 2% 6 months from now. With margins as tight as they are on small cars a loan of that type for fixed investment could possibly make the Cruze a money looser for several years VS a money maker out of the gate with a 2% loan for the fixed overhead costs of the retool's

Do I think the cruze will be delayed? I don't. If it is I would guess 6 months max.

 

[fp115]

Uhhh the Cruze was never delayed from its original June 2010 launch date..

 

[GMforME]

FP
glad you could say it. I couldn't. On my schedule it hasn't moved.

 

[charts.1]

Uhhh the Cruze was never delayed from its original June 2010 launch date..

The cruze or the volt is not going to save GM. GM made their money on selling trucks (60% of their sales use to be big money making trucks)

GM has stated several times that they make nothing on small cars. If the big three had learned why Honda/Toyota have been successful the big three would still be competitive today.

Last sundays New York financial post (I believe) indicated that a few years back Ford was considering dropping their entire car line because there was no money in making cars. They made their profits selling big gas guzzling trucks. The big three are in very serious trouble.......and GM is riding all their hopes on yet another small car called the cruze is not going to be their saviour.

Honda/Toyota did not become successful by continually recyling car names and models every few years like the big three do. They have made the Civic/Accord.....Corolla/Camry for decades continuing to make improvements with each new generation. Their models have continually been rated tops by ALL auto magazines/writers, for years, and in the USA all listed in the top 10 year after year in sales to good ole americans.

I have been a chevy guy for over 40 years, but if the big three continue to make the same mistakes and not take cues from their competition of how to market products then they will become like so many american car manufucatures from the past. HISTORY!

 

[windvale]

I really think the UAW needs to make some emergency concessions to GM RIGHT NOW !

If things keep going the way they have been GM won't be around in 2010 for the new agreement to kick in.

 

[windvale]

The cruze or the volt is not going to save GM. GM made their money on selling trucks (60% of their sales use to be big money making trucks)

GM has stated several times that they make nothing on small cars. If the big three had learned why Honda/Toyota have been successful the big three would still be competitive today.

Last sundays New York financial post (I believe) indicated that a few years back Ford was considering dropping their entire car line because there was no money in making cars. They made their profits selling big gas guzzling trucks. The big three are in very serious trouble.......and GM is riding all their hopes on yet another small car called the cruze is not going to be their saviour.

Honda/Toyota did not become successful by continually recyling car names and models every few years like the big three do. They have made the Civic/Accord.....Corolla/Camry for decades continuing to make improvements with each new generation. Their models have continually been rated tops by ALL auto magazines/writers, for years, and in the USA all listed in the top 10 year after year in sales to good ole americans.

I have been a chevy guy for over 40 years, but if the big three continue to make the same mistakes and not take cues from their competition of how to market products then they will become like so many american car manufucatures from the past. HISTORY!

Well Said !

 

[paul8488]

Uhhh the Cruze was never delayed from its original June 2010 launch date..

What inside info do you have that these journalists don't?

 

[motorman]

they need to delay the introduction because with gasoline prices going down it will be a hard sell. people are already coming into the dealership looking at trucks. people know that gas between $2.50/$3.00 is going to be the norm and the $4.00 a gallon was brought on by speculators.

 

[jomo]

The cruze or the volt is not going to save GM. GM made their money on selling trucks (60% of their sales use to be big money making trucks)

GM has stated several times that they make nothing on small cars. If the big three had learned why Honda/Toyota have been successful the big three would still be competitive today.

Last sundays New York financial post (I believe) indicated that a few years back Ford was considering dropping their entire car line because there was no money in making cars. They made their profits selling big gas guzzling trucks. The big three are in very serious trouble.......and GM is riding all their hopes on yet another small car called the cruze is not going to be their saviour.

snippity...

I have been a chevy guy for over 40 years, but if the big three continue to make the same mistakes and not take cues from their competition of how to market products then they will become like so many american car manufucatures from the past. HISTORY!

Ah... the same old fallacious rhetoric. The Big Three sank their money into trucks because... Americans bought them! Why would they NOT sink their money into building products Americans were buying? I must point out to you that the Japanese and Koreans weren't exactly turning down the truck-dollar either. Toyota Tundra, anyone? The big, gas-guzzling (hate that term) truck that was supposed to sell 200,000 copies a year.

Why do they not make money on Cars? It ain't because Japan has some special sauce that makes it cheaper for them to make cars. It's because of systemic currency manipulation, state-provided mass health-care, and other systemic advantages that Detroit-Inc doesn't get. You will note that Toyota's bottom-line always takes it in the shorts when-ever the Yen rises against the dollar, leading the Japanese government to step in and buy dollars to pump up the dollars to keep the exchange rate in a happy place for them. Did the Detroit-3 drop the ball on car designs? Not nearly as much as the press would have you believe. Could they have done better? Sure. The truth is, though, that they're getting hammered by fallacious group-think, when they're honestly trying their darndest to do better.

 

[WishIhadatruck]

I certainly hope they can bring the Cruze here on time since it was coming too late already. It looks like it will be a great car and sell well. I just hope they can figure out how to survive long enough to get through this rough period because it seems like they will have a very good line up of cars in just a couple of years. Right now their line up is hit or miss. They have some stars and some duds.

 

[windvale]

Why do they not make money on Cars? It ain't because Japan has some special sauce that makes it cheaper for them to make cars. It's because of systemic currency manipulation, state-provided mass health-care, and other systemic advantages that Detroit-Inc doesn't get.

The truth is, though, that they're getting hammered by fallacious group-think, when they're honestly trying their darndest to do better.

Exactly ! The Aveo is so much better than the Honda Fit !

It must be currency manipulation !

Question: Why does the Apple Ipod whip the Sony MP3 player in the market place ? Why doesn't currency manipulation and health care give the Sony product a huge advantage ?

Dream on dude...

 

[windvale]

I certainly hope they can bring the Cruze here on time since it was coming too late already. It looks like it will be a great car and sell well. I just hope they can figure out how to survive long enough to get through this rough period because it seems like they will have a very good line up of cars in just a couple of years. Right now their line up is hit or miss. They have some stars and some duds.

Prediction: GM will be in bankruptcy BEFORE the Cruze ever sees the light of day in the US.

 

[nsap]

What inside info do you have that these journalists don't?

Better than the media. The time frame for the US launch of the Cruze has NOT changed one bit. The media loves to spin this stuff....its quite pathetic.

 

[paul8488]

Better than the media. The time frame for the US launch of the Cruze has NOT changed one bit. The media loves to spin this stuff....its quite pathetic.

Can't say I've seen proof either way. Are there any official GM statements about when they planned to release the Cruze, or any revised ones that say that it will be later?

 

[Z28x]

Cruze needs to be moved up to June 2009 launch date or the car will be an also ran next to the 2011 Civic and Focus.

 

[WishIhadatruck]

Prediction: GM will be in bankruptcy BEFORE the Cruze ever sees the light of day in the US.

I'm afraid that is very possible.

Do you know what country the IPOD is made in? I don't own one and don't know. If it isn't made in the US then your argument above is pretty weak the way you stated it. On the other hand GM and the unions own their own problems. Too many bad decisions on wages, benefits, crappy vehicles, etc. It WAS possible for them to fix this mess but they might have waited too long. The cars they need still aren't all here and the reduced expenses of the wages/benefits may not arrive soon enough either.

 

[fp115]

Can't say I've seen proof either way. Are there any official GM statements about when they planned to release the Cruze, or any revised ones that say that it will be later?

Original documents from July and August state a summer 2010 release. Rumour from journalists came out a week ago regarding delays and NSAP's contact confirmed that it was on schedule.

Lately the media has been big on making up rumours, especially on product.

 

[paul8488]

Maybe people are confusing the fact that the Cruze will release elsewhere in the world before the US... and take that to mean that GM is introducing the Cruze later than they planned. It could be that nothing as changed as many of you say. I hope that's the case, anyways!