M/T: GM to continue downsizing after Opel deal

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kevm14
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Joined: Wed Oct 23, 2013 10:28 pm

M/T: GM to continue downsizing after Opel deal

Post by kevm14 »

http://www.motortrend.com/news/report-g ... 54E989EBA8

The headline is a little stronger than it needs to be. I don't think any brands are going away, at least not for the NA market. Internationally though I think they are taking a hard look at profitability and this is the key point:
“There’s a little bit more work that we’re doing in the international markets,” GM CEO Mary Barra told reporters on a conference call, reports Automotive News. “Our overall philosophy is that every country, every market segment has to earn its cost of capital.”
The rest of the article though doesn't quite agree with me. It almost makes it sound like GM is going to pull an FCA and basically get out of the car business to sell trucks. I do not think that is what will happen, though they may axe some slower selling models and consolidate a platform to a single model in some cases. My expectation would be that they would strive to be competitive in all major market areas. Niche markets are a question mark where they are not part of a major brand strategy (i.e. Cadillac Vsport is excepted but I wouldn't hold out too much hope for a Cruze SS).

And naturally this makes me growl as the words as written are misleading:
GM could continue to get rid of its slow-selling cars, like it did by axing the Chevrolet SS.
Sigh. I mentioned this in another thread. You may question the intent, but the intent was never to sell many SSs. Period. It is misleading to leave it open, so the reader would conclude "I assume they aimed to sell as many of these as possible and they didn't, so it was a failure, and they stopped making it - all of that makes sense to me.". Except that's not what happened.
kevm14
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Re: M/T: GM to continue downsizing after Opel deal

Post by kevm14 »

Ah the very first comment backs me up.
Also, Chevy didn't axe the SS sedan due to slow sales. GM is discontinuing Holden in Australia, which is where the SS is produced in very limited numbers. Never intended to be a volume seller even remotely, and it's a shame they won't make a replacement on the Alpha platform and compete in the non-luxury sport sedan division (which is unfortunately dwindling).
Agree with all.
kevm14
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Re: M/T: GM to continue downsizing after Opel deal

Post by kevm14 »

This is worth bringing up:
Buick and GMC could stand alone easily worldwide. Cadillac, not so much. A lot of their product lines rely on the platforms of other GM models.
Think about it: Cadillac's best selling models share a platform in some way with other GM vehicles, namely XT5 and Escalade. The ATS, CTS and CT6 not so much. I mean Alpha is under the Camaro I guess but I'm thinking Alpha would have been made regardless of the decision to use it under the Camaro so I consider it a primarily Cadillac platform, as opposed to C1XX (directly shared with the GMC Acadia) and K2XX (all GM trucks and SUVs). Which means if the bespoke stuff is also selling slowly, that's a real problem for profitability.
bill25
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Re: M/T: GM to continue downsizing after Opel deal

Post by bill25 »

Also, Chevy didn't axe the SS sedan due to slow sales. GM is discontinuing Holden in Australia, which is where the SS is produced in very limited numbers. Never intended to be a volume seller even remotely, and it's a shame they won't make a replacement on the Alpha platform and compete in the non-luxury sport sedan division (which is unfortunately dwindling).
This was exactly what I was thinking.
bill25
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Re: M/T: GM to continue downsizing after Opel deal

Post by bill25 »

It almost makes it sound like GM is going to pull an FCA and basically get out of the car business to sell trucks.
I don't understand this business model. I get that trucks will sell because people who work will always need them, but does everyone have this short of a memory? Remember 4.35 a gallon gas? Remember when GM's bread and butter was trucks and SUVs? Remember the bankruptcy because nobody wanted their smaller cars? Also, how does this business model work for CAFE? I know some bigger trucks have exemptions, but what about CUVs? They are not exempt and do not really get good mileage, so how will they meet CAFE without small cars?

I could see trimming the line a little. Sonic, Cruze, Malibu, and Impala would probably be enough. The Spark seems unnecessary. Why can't the electric cars share a platform (Bolt-Sonic, Volt-Cruze)? Maybe they do already.

They should consolidate the Malibu and Impala, and add an Alpha for variety.

Future lineup:
Sonic/Sonic EV, Cruze/Cruze Hybrid(Delta II platform), Monte Carlo SS (Alpha), Camaro, Impala (GM Epsilon II), Corvette

Buick:
Verano (Delta II platform), Regal (Alpha), Lacrosse (GM Epsilon II)

Cadillac:
ATS (Alpha), CTS(Alpha), XTS (CT6 platform, just not that stupid naming convention)

Done.

So Cadillac would get 1 Cadillac only/flagship platform (XTS/CT6)
Maybe ax Sonic...
You are down to 3 platforms plus a flagship Cadillac and flagship Chevy (Corvette)
Bob
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Re: M/T: GM to continue downsizing after Opel deal

Post by Bob »

I would love to see an SS on the Alpha platform; however I don't think it will happen.

Alpha + LT1 + 4 doors = perfect daily driver combination for me. I will settle for Alpha + TTV6.
kevm14
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Re: M/T: GM to continue downsizing after Opel deal

Post by kevm14 »

I think my dream recipe with available ingredients would be an Omega with LT1. If we are going all out, then I'd like either a CTS-V or a CT6-V. With pushrods please.
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