GM Saving Billions

[rkmdogs]

The Car Connection on 8/14 reported the following news:

GM Saving Billions with Mid-Sizers

New mid-size cars from General Motors-among them, possibly the new Malibu posted here on TheCarConnection this week-are significantly cheaper for the company to develop, according to a report in Automotive News. The paper says GM has been refining its development processes and has trimmed $1 billion from the development tab it would have accrued under its former ways. The News says GM is apportioning projects to centers of expertise around the world, eliminating competition within the GM empire, and is cutting its engineering expenses as a result. Nine new vehicles worldwide will be spun from GM's new mid-size architecture, but the company did not specify which vehicles they were.

So where is all this cost-savings showing up? In more models? Lower prices?

Better quality? Nah! It will go back into more hare-brained schemes!

Edited August 14, 2006 by rkmdogs

[jry]

Good, in fact, great. Keep it going, General!

[prototype66]

The Car Connection on 8/14 reported the following news:

GM Saving Billions with Mid-Sizers

So where is all this cost-savings showing up? In more models? Lower prices?

Better quality? Nah! It will go back into more hare-brained schemes!

180196[/snapback]

What hair brained schemes would you be referring to?

[Robert Hall]

I wonder where the cost-cutting is.. more efficient processes, eliminating duplicated resources, pressuring suppliers, etc?

Hopefully they aren't cutting cost on interior materials (i.e. letting Rubbermaid or Fisher-Price provide the plastics...

[RBB]

Now I could be wrong, but I believe we've seen:

More models

One could argue that GM has too many models as it is. if you mean new vehicles, then GM has provided since CY '05:

Buick Lacrosse

Buick Lucerne

Cadillac DTS

Cadillac STS

Chevrolet Avalanche

Chevrolet Cobalt

Chevolet Corvette

Chevrolet HHR

Chevrolet Impala

Chevrolet Monte Carlo

Chevrolet Suburban

Chevrolet Tahoe

GMC Yukon

GMC Yukon XL

Hummer H3

Pontiac G5

Pontiac G6

Pontiac Solstice

Pontiac Torrent

Saab 9-2x

Saab 9-5

Saab 9-7x

Saturn Sky

Saturn Aura

And these are coming shortly

Buick Enclave

Chevrolet Aveo

Chevrolet Silverado

GMC Acadia

GMC Sierra

Saturn Outlook

lower prices

across-the-board price reductions, and a couple of models have even been reduced twice (see: Colorado, Canyon.)

better quality

Both IQS and long-term quality scores have been improving year-over-year for a while now for most brands. As someone who's bought used Japanese cars in the past because they lasted longer, I'd have few qualms about buying one of GM's newer models used.

Interior quality and build quality are much improved, even on cars built on older architecture such as the Lacrosse or the Impala. Even on newer platforms, you can see steady improvement in chassis refinement and interior quality:

Ion < Cobalt

Malibu < G6 < Aura

And several models are getting new interiors with signifigantly upgraded materials - SRX, Equinox/Torrent, for example.

So, it seems to me that GM is spending all these billions saved in to building better cars that sell for less money while still turning a profit for the first time in a while. But maybe that's just me.

-RBB

[RBB]

And, I should add that GM should continue investing billions into improving their entire lineup. There are a couple of great cars, but most could still stand to be improved. Seeing the great reviews the new GMT900 lineup and the Aura is getting, I'm cautiously optimistic.

-RBB

[GEESIXER]

For instance, the 07 Torrents have a completely redisgned interior from the 06 model!!!!!!

looks good too!!!!!!!

Edited August 15, 2006 by GEESIXER

[LTB51]

Interior quality and build quality are much improved, even on cars built on older architecture such as the Lacrosse or the Impala.  Even on newer platforms, you can see steady improvement in chassis refinement and interior quality:

Ion < Cobalt

Malibu < G6 < Aura

If I have to read another article about how much improvement there is on the Kias and Hyundais I'm gonna puke. Everyone remember who the most improved award went to in school? The worst kid. And even after he was most improved he was likely still the worst.

While GM's interiors are getting much better, they have to just to keep up with the improvements made by everyone else. And GM spotted a lot of them a huge lead.

But what worries me is that the reliability of the Cobalt is worse than the Ion. And the G6 is worse than the Malibu. Both the Cobalt and the G6 are horribly unreliable. They could wipe out any gains GM has made over the past few years. And frankly, GM's reputation can't take this kind of disaster at this time.

I just hope that GM doesn't have to make them for 7 years to get them right. Cause we all know how bad their interiors will look 7 years from now.

[razoredge]

But what worries me is that the reliability of the Cobalt is worse than the Ion.  And the G6 is worse than the Malibu.  Both the Cobalt and the G6 are horribly unreliable.  They could wipe out any gains GM has made over the past few years.  And frankly, GM's reputation can't take this kind of disaster at this time.

181630[/snapback]

On what are you baseing this "horribly unreliable" on ?

[76ChevyTrucker]

Our Cobalt isn't unreliable. I don't get where you're saying it is.

[balthazar]

LTB- have you been reading CR???

[Snate]

I've put 30K on my first model year 05 cobalt with only a minor cruise control glitch. I'd hardly say its unreliable.

[CARBIZ]

Although a little anecdotal, I've sold a lot of Cobalts and the only complaints have been minor in nature: radio problems, tearing of the fabric on the driver's armrest, etc. Actually, we've discussed these on another thread here before.

The only vehicles that have caused me some embarassment have been the Epica (which we just don't stock any more) and the Optra, both of which are built in Korea. Although I've heard elsewhere on this board how awful the Uplander is, I've sold a lot of those, too, and the only real complaints have been about brakes and noises.

I feel quite confident in marching customers over to our sister store and driving them in a Corolla if the customer insists on looking at one. All but the most ardent Japan Inc lapdogs will agree the Cobalt is a better vehicle.