Posts Tagged ‘GM’

General Motors gear up to challenge the big boys of compact.

New Chevrolet Cruzes will roll out of the assembly line in September, with hopes of drawing the attention of younger drivers and emerge as a major player in the compact market dominated by Honda and Toyota.

The American company had long been struggling to build a steadily profitable line of compacts. Its Corvair and Vega were both safety and design disasters. Customers were more enticed with Corollas and Civic than Chevys. None of its small cars got the Recommended Buy rating from Consumer Reports’ April issue. Cruze’s predecessor, the Chevy Cobalt, sold only 105,000 units in the U.S. last year. In contrast to Japanese car makers Toyota and Honda, both of which drew more than 20 percent of its total auto sales from its compacts, GM only had an 8 percent share.

Furthermore, GM execs dismiss the compact line as an unwise investment due to their cheap prices compared to their expensive manufacturing cost, which is also the reason why its compact offerings, as one reporter observed, are compromised because of GM’s tight control costs.

“They really haven’t spent any time or money on these vehicles,” said Mr. David Champion, the senior director of Consumer Reports’ auto testing department.

Although GM may be lagging behind the compact race, particularly missing the industry boom last decade, the competition is far from over. Demand for compact and subcompacts in the U.S. is increasing phenomenally, from 21 percent in 2005 to 33 percent this year, and much bigger demand is expected from international market.

Early Cruze prototypes had issues of its own, and poor showroom performance resulted in delaying the production from April to August. Noisy tires, constantly shifting transmission, and lag between gas step and the turbocharger were among the major culprits of the delay.

According to Mark Reuss, GM’s North American president, all the problems had been fixed. The former head of engineering assured that the transmission was redone, the turbocharger lag was resolved, so as the transmission. He also added that an Eco version of Cruze will be available, and expected to run for 40 miles in one gallon.

However, many consumers are still skeptical about considering Chevy’s compacts. Previous offerings were often overlooked due to their outdated looks and mediocre performance.

Nonetheless, GM engineers are working hard to improve Cruze’s quality. Pitted against other models during one test ride, Cruze actually proved quieter and the handling seemed to fare better. A reviewer from Consumer Reports was also impressed with the car, from it looks down to its handling and performance.

A base Cruze will retail around $17,000, slightly more than those similar offerings from other companies. GM said that the price premium justifies Cruze’s additional standard features not commonly found in other compacts.

Mr. Tom Stephens, the Head of Product Development of GM said, the construction of the Cruze is better than that of Corolla or Civic.

“They’ve got quite a gap that they’ve got to close just to be competitive, let alone get ahead,” said Mr. Stephens.


Chevrolet Cruze for North America gets specs boost

GM has revealed that the American market version of the Chevrolet Cruze will get refinement upgrades for it to be ‘good enough’ for the American consumer. “We have a different set of competitive vehicles here in North America than what exists in Europe. We needed to make a number of adjustments,” said Chuck Russell, GM’s vehicle line director for compact cars in North America.

Here are a list of the changes:

* The windshield has been replaced with an acoustic laminated version.
* Doors get more insulation and sealters were added to some of the door headers.
* Airbag count tops at 10 including knee airbags and rear seat side airbags.
* The Cruze gets a different rear suspension design – an Opel Astra-like Watt’s Z-link as opposed to the regular torsion beam suspension on the world market Cruze.

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GM, Strickland announce creation of 1,200 jobs in Ohio

LORDSTOWN – Ohio Gov. Ted Strickland joined General Motors North America President Mark Reuss and other state and regional leaders today to announce the creation of 1,200 jobs through the addition of a third shift at GM’s Lordstown plant to support the production of the new 2011 Chevrolet Cruze.

“I’m proud to celebrate the creation of 1,200 new Ohio jobs and the resilience of the working men and women of the Mahoning Valley. The chips were down but we never gave up,” Strickland said. “That grit and steely determination is why I love this valley and why I believe in Ohio.

“The economic impact of GM’s investment will benefit the people of this region and communities throughout Ohio: GM’s Defiance Foundry will build engine blocks for the Cruze. GM’s Parma Metal Center will stamp dozens of components for the Cruze. GM’s Toledo Powertrain Center will produce transmissions and numerous suppliers in the Mahoning Valley and across the state will contribute parts for the Cruze,” Strickland said.

“Born in Ohio, built by Ohioans, the Cruze will become synonymous with Ohio. And that’s fitting because it reflects the innovation and resilience of the people of Ohio.

“It’s a great day in Ohio. Because GM is making a little automotive history in Ohio today. And Ohioans are going to be making a new kind of car for years and years to come,” Strickland said. “We look forward to continuing our strong partnership with GM and the Lordstown community to keep auto manufacturing strong in Ohio.”

U.S. Rep. Tim Ryan also released the following statement:

“President Obama and Congress made the unpopular but necessary decision to take partial ownership of General Motors and guide it through bankruptcy. This bold step may have saved manufacturing in the United States from being wiped out,” Ryan said. “As a result of that leadership, not only were the Mahoning Valley and Northeast Ohio community spared an economic catastrophe, we now stand to reap the benefits of those tough decisions. I commend the workers at the GM Lordstown plant for their leadership and maturity. Without their skills, talents and positive attitude, this day would have never come.

“I would like to thank Governor Strickland for his constant attention to the Mahoning Valley and the 17th Congressional District. His input and guidance have been instrumental in not only this project, but in every one of our economic successes over the past few weeks.

“I would also like to commend Senator Sherrod Brown for his powerful voice on behalf of our domestic manufacturing base. The American auto-industry has no better friend in the Senate.

“It’s clear that our local economic development strategy is working: another 1,100 high-paying jobs in Lordstown, corporate investment of $650 million and 350 permanent jobs at V&M Star, 500 more jobs expected at VXI in downtown Youngstown, a San Francisco technology company bringing up to 100 jobs to the Youngstown Business Incubator in the next two years, and Severstal Steel returning to work in Warren. I believe that this is the beginning of the Miracle on the Mahoning,” Ryan said.

Ohio and GM are continuing to move forward on important investments for our state. Last week Governor Strickland joined GM officials at the Powertrain Plant in Defiance to announce a $59 million investment that will support the production of the next generation fuel efficient Ecotec engine while creating about 80 new jobs.

And, on Feb. 8, the governor announced that the Defiance plant was awarded a $518,232 industry efficiency grant through Ohio’s State Energy Program, funded through the American Recovery and Reinvestment Act. The award will help fund new equipment that will save energy, reduce raw material consumption, reduce greenhouse gas emissions, and allow the facility to be more competitive by reducing its overall annual costs by $515,013.

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Review: 2011 Chevrolet Cruze (German-market Spec)

People buy cars they don’t need with money they don’t have to impress people they don’t like. That’s why hardly anybody in Europe is buying the Chevrolet Cruze, which has been on sale over here since last summer. It’s an affordable car that you might need but you won’t want, and which won’t impress anybody at all, because it’s just not that desirable. Allow me to explain…

The Cruze uses GM’s global Delta II platform, which is also the underpinning of the new Opel Astra as well as (in basic structure) the Chevy Volt. We Euros get Cruzes built in Korea but you in North America will have yours made in Michigan. It’s a conventional sedan, though in Europe at least, a hatchback and station wagon will follow.

The Cruze is Jetta-sized, but I’d say it looks better: less bloat, lower beltline, crisper shapes, good proportions. It manages to be both distinct and clean, with the major exception being the odd “headband” across the grille that encloses the recklessly large Chevy bow tie. If that is supposed to look sporty in a Jane Fonda, 1980’s aerobics way, it serves its purpose.

The interior is good, within the cut price idiom. For a Daewoo, the Cruze is short on depressing Korean genericness and long on generic-but-OK GM stuff, such as the standard cow’s tongue steering wheel and annoyingly deep-set instrument pods. It’s a bit fussy but not in a particularly creepy way, and I actually liked the cloth-befitted dashboard – fabric being generally preferable to dead cow. Finish and the selected plastics are quite OK.

What is really good is available space: the Cruze has plenty for four. This is more than a commuter car: I could deal with sitting in the back for hours on end and the trunk could handle all my trip luggage too (as it has a capacity of 16 cubic feet). Oddly, GM likes to stress that the trunk has indentations enabling space for two golf bags – I didn’t know that golfers were a cheap-car-buying demographic yet.

Not to forget, the Cruze has fared very well on the newest Euro-NCAP crash tests.

This is a really cheap car, so I’d gladly accept an interior that isn’t quite VW-standard if it saved me thousands. (You can get one like my tester for €15k, which is around 30% less than a comparable Jetta in Germany. And entry-level Cruzes start at €12k, which is the average price of cars that are two sizes smaller).

But some things just aren’t worth a low price. Case in point: the Cruze’s engine. The 1.8L machine produces 140HP of which I could only feel around 105 actually doing any work. And what little output it could muster produced more than its share of an unlovely noise. It’s an old-school engine that has somehow found its way into a new car, and it ruins the experience. Picture a car that feels well-made but which at highway speeds has a gruff, obtrusive, strained sound coming from its engine department: that’s what the Cruze I drove was like. (I also spent an hour in a Cruze equipped with the 110HP 1.6L engine. It’s slightly sweeter, but the sound is still gruff, and it’s so weak you have to thrash it all the time, so it’s not an alternative). Apparently the Diesels are the pick of the bunch, but they come at a steep, three-grand price premium. At a reported 25MPG, the tested 1.8L is not exactly economical either.

I didn’t like the overly snatchy brakes or the late-action clutch, either. And speaking of snatchiness, the ignition lock is snaggly.

In contrast to the engine, the Cruze’s ride and handling are perfectly acceptable in the grand scheme of things. The Chevwoo doesn’t communicate like an Euro-market Focus or cosset like a Renault Megane but it felt capable at a wide range of jobs – city, highway, high-speed (110 MPH) autobahn. The bias is definitely on comfort, but the ride-handling compromise is quite good. And wind and ride noises are pleasantly low.

But back to the engine problem: how can it be that a major car company introduces a new global model with a dud motor? Well, I’m going to speculate that this is the product of a major planning malfunction; it’s the only explanation I can think of. Somewhere along the line, somebody upstairs at GM may have realized that the Cruze had as much interior space as the poorly-packaged, larger yet cramped Opel Insignia / Buick Regal. And that it beats the similar Opel Astra on several counts – but all at a seriously lower price. How to protect the Opels from the Chevys? How to keep the Daewoo off Buick’s neck?

Instead of letting the brands fight it to the finish in the way (for instance) that VW does with Skoda, GM seems to have cheapened the Cruze by installing an obsolete engine. (Obviously, GM has some good small engines on tap; why else wouldn’t they use one? Cost can’t be that much of a factor.)

I have to tell you that it’s a personal thing for me: just as I don’t trust a man who dyes his hair, or I don’t trust a banker, or a teetotaler, I don’t trust a car maker that willingly adulterates one car in order to protect another.

Porsche did it with the 914 and with the Boxster in order to protect the 911, and thereby earned the distrust of first Setright and then Clarkson. (And just look what has happened to Porsche in the mean time). GM does it with the Cruze, so why would I buy one, or recommend it to anybody I know?

I mean, everybody makes mistakes, but to install a crummy engine in a new global car on purpose sounds like what a company would do that is trying to pull one over you. Just think of what kind of unseen short cuts they might be taking, quality-wise.

If you wanted to be generous, you could forget this possibly petty matter of trust. Instead, you could say that this is a pretty decent, useful small car that will hopefully be equipped with a much better engine when it leaves North American factories next year. But as it is right now, there are around a dozen better cars on the market, most made by trustworthier companies.

[Editor's Note: The US-spec 2011 Cruze will offer an available 1.4 liter turbocharged engine in addition to the 1.8 liter base engine tested here]

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