4 posts tagged “general motors”

Jerry Flint in Forbes is one of the most intelligent motoring industry commentators in the world today. I pretty much agree with his latest column on saving GM. Highlights:

The issue is not whether there can be a rescue at General Motors; the issue is whether the current management can save it. The record is not good. Since 1992, GM’s U.S. market share has fallen steadily—from 34% that year to 19% in May. Many of GM’s leading executives are from the finance side of the business, but the financial failures are numerous. The company wasted $2 billion on an investment in Fiat and many billions more on the Delphi spin-off. Management also wrecked GMAC, its car loan subsidiary, by lending mortgage money to people who could not pay it back.

   And:

Unlike some commentators, I do not think GM’s problem is that it has too many divisions. It is shifting Buick, Pontiac and GMC to common dealerships, which means some divisions are becoming more like individual models rather than full-fledged brands. It causes less public relations damage and legal liabilities to leave Buick with a few models, rather than endure the type of bad publicity it endured a few years ago when it phased out Oldsmobile.
   I think that GM made a big mistake and did a great disservice to itself and to its dealers when it recently announced that it was looking for ways to unload Hummer. Yes, the biggest Hummers are gas pigs, but Hummer is a strong brand to put up against Jeep. It was a mistake, too, to cancel production of the Hummer H4, a smaller vehicle to compete against the iconic Jeep Wrangler. Just because consumers are flocking to vehicles that are more efficient does not mean that they do not want exciting, macho, sport utility vehicles.
   Russia has plenty of oil and enough wealthy people for vehicles such as Cadillac Escalades and Hummers. Why can't GM step up its export business to such markets?

   Jerry Flint also believes that Bob Lutz and many GM folks can lead the company to recovery. This might be worth a post on the main blog.
   Incidentally, I have been told that Condé Nast Portfolio published my letter to the editor about the US auto industry.

[Cross-posted] There’s a part of us that’s slightly cynical about the corporate involvement in this video, but it’s no different from sponsorships from fashion designers or fabric companies at polytechnic level. General Motors teamed up with the International Academy of Design & Technology and provided five cars from which students could be inspired. They had to design for categories such as avant-garde and eveningwear. Chosen entries were showcased at an event called Imagine 2008.
   General Motors gets an insight into young people’s thinking and how fashion influences its products, while the students learn about processes and how the Zeitgeist fuses product and clothing design together.

General Motors’ latest video, on its new Chevrolet Corvette ZR-1 and the Cadillac CTS-V, emphasizes the new cars’ green credentials. I’m not convinced. There’s a greater commentary over at Lucire, but telling me that a supercar is greener than its competition is like saying a small blade is less harmful than a large one during a knife attack. The ’Vette and its rivals are unlikely to ever see 20 mpg, while the video is a bit light on just why the Caddy is green, with 550 bhp and 550 lb ft.
   They look fabulous on the outside, as many American cars do, but marketing them as green is really optimistic.

Holden Epica CDXi

On my main blog, I have talked about the Holden Epica (née Daewoo Tosca). This is probably, uniformly, the worst mid-sized car on the market in New Zealand. I also happen to think it’s the ugliest.
   Last year, Holden began selling the new Barina. What it neglected to tell you was that the new model scored two stars in various safety tests. The model it replaced scored four.
   The new model is actually the Daewoo Kalos, which was withdrawn from the New Zealand market about three years ago for being, well, crap.
   Now, we have the Tosca. The Tosca is actually derived from the old Daewoo Leganza of the mid-1990s. In fact, the platform is older than the Vectra C’s, the car the Tosca replaces in New Zealand.
   The Leganza, too, was not the safest car in its day. The Australian testers, who gave it two and a half stars, noted, ‘The Leganza did not perform well in the offset crash test (0.9pts out of 16). The passenger compartment was substantially deformed. The driver's contact with the airbag was unstable. The passenger hit the dash, with a moderate risk of life threatening head injury. Protection from serious leg injury was poor for the driver.’
   To be fair, the Tosca, or Epica, is a lot safer than the old Leganza. But it doesn’t mean it isn’t junk.
   Many of the driving impressions that Australian journalists have done indicate that this car is the bottom of the heap. If you must buy a Korean-built car, go over to Hyundai or Kia. Both the Hyundai Sonata and the Kia Magentis fared better in at least one test.
   If you are buying a Holden Vectra—a superior car to the Epica—ask the dealer when the car left the factory. I have nothing to base this on other than an educated opinion, but I believe the New Zealand-market 2007 Vectras left the factory some time in 2005. There should be a way for a buyer to check the chassis and production numbers. My belief is no Vectras have left the German factory with the 2003-model grille for some time.
   I have been on Holden’s back about these cars for over a year, because I think Kiwis are getting a raw deal. Meanwhile, Ford, Toyota and Hyundai will be bracing themselves for extra buyers.