Can the New-Look Malibu Help Jump-Start Chevy?

[Flybrian]

Can the New-Look Malibu Help Jump-Start Chevy?
By JOSEPH B. WHITE
January 2, 2007; Page B1

Link to Original Article @ WSJ Online

Say "Chevy Malibu," and some Americans think of a 1960s muscle car. Unfortunately for General Motors Corp., many more think, "rent-a-car."

Now, GM is unveiling a revamped look for the Malibu sedan, as part of a broad effort to convince people shopping for a car priced below $30,000 to pause on their march to Toyota Motor Corp. or Honda Motor Co. dealerships.

Today, GM officially takes the wraps off the complete design for the 2008 Chevrolet Malibu -- almost a year before the first production models are scheduled to hit showrooms. (Part of the car has been seen in teaser photos) GM is trying to generate as much early buzz as possible for the redesigned car, in part to build investor confidence in its turnaround strategy. Chevrolet, GM's highest-volume division, plans a significant launch in early 2008 that GM officials say will compare to the image overhaul executed several years ago for Cadillac.

The new Malibu "will be the beginning of a very big transformation for our car lineup," says Cheryl Catton, general director of marketing for Chevrolet cars.

GM's Vice Chairman for product development Robert Lutz says the new Malibu's more refined looks, improved ride and quieter interior are a milestone in the company's multiyear effort to upgrade the look and feel of its sedans and coupes. Now Chevy is going for a more international feel -- a European look with an inside that borrows from 1960s American style.

"It's a poster boy for what we are trying to do," says Mr. Lutz, who joined GM in 2001 with a mandate to lead a revitalization of its vehicle design.

The Malibu faces a difficult assignment that has overwhelmed a series of new GM cars over the past decade. GM retired the Malibu name in the 1980s and then brought it back in 1997 and slapped it on a midsize, front-wheel drive sedan nothing like the brawny rear-drive muscle cars that bore that name during the 1960s and 1970s.

Starting in the late 1990s, Chevrolet tried to position the car as an alternative to the conservatively styled Japanese sedans that dominate the midsize segment. GM engineers carefully tried to match the functions, features and specifications of the Toyota Camry and Honda Accord. As for styling, Mr. Lutz says, the thinking was "if the Camry is doing so well and it's bland, it means they like bland. Unfortunately, bland only works for the Camry."

Although Chevrolet has thousands more dealers than Toyota, Malibu's retail sales volume of about 100,000 to 125,000 cars a year is less than a third the Camry's total annual sales. As of December, the Malibu sold for an average of $17,939, after an average customer cash rebate of $2,438, according to transaction data collected from dealers by the Power Information Network. The Accord and Camry had no customer cash rebates, and were selling for an average $22,402 and $23,441 respectively. Ford Motor Co.'s Fusion midsize sedan was selling for an average $20,081 with a customer rebate of $1,069.

GM won't try to outsell the Camry with the new Malibu, in part because GM also positions its larger Impala sedan as a Camry fighter. But GM does want to close the pricing and profitability gap. Mr. Lutz says that's where better design comes in.

On the outside, the 2008 Malibu looks German, with an exterior profile and proportions similar to a Volkswagen Passat.

Mr. Lutz and GM vice president for design Ed Welburn point to what makes the 2008 Malibu different from the current car: Wheels that are pushed to the edges of the sheet metal, to avoid the look of a bulky car balanced on roller skates; a chrome molding around the side glass; European-style small turn signals, or "markers" on the fenders. The wheelbase -- the distance between the front and rear wheels -- is about 6 inches longer than the current sedan.

The new Malibu's interior is a more dramatic departure. The new dashboard has a "dual cockpit" look. "It's almost a direct lift from the '58-59 Corvette interiors," says Mr. Lutz.

John Mack, who led the Malibu's interior design team, says most versions of the Malibu will come with two-tone interiors, such as "cocoa and cashmere." Besides color, the Malibu will offer such features as a storage bin under the center arm rest big enough for a purse.

All these touches cost money, as do the materials and engineering that will make the Malibu quieter inside and new standard safety equipment such as side curtain airbags and stability control. GM engineers have tried to offset the added costs by using more parts from the prior model, sharing parts with other cars such as the Saturn Aura, and redesigning the body to reduce the use of expensive steels. Mr. Lutz says if by putting $200 into features that make the car look better GM can cut a $4,000 rebate to $1,800 "you are $2,000 ahead."

GM wants to sell fewer Malibus to one kind of customer: Rental car agencies. Those sales almost always return lower profits than sales to individuals. Instead of selling about 34% of Malibus to fleets, GM hopes to sell only about a quarter of the redesigned Malibus that way. Mr. Lutz says done right, rental sales could help GM. By selling better looking cars -- without "gray rat's fur upholstery and dark gray plastic parts" -- renting a GM car "becomes a national demonstration program where people actually pay to drive a GM car, and they say, 'Holy smokes, it's fabulous.' "

[turbo200]

all the right words. their ambitions are even in check, though i do hope this malibu can garner enough interest to not need the kind of sales and rebates advertising the fusion does.

Edited January 3, 2007 by turbo200

[Flybrian]

all the right words. their ambitions are even in check, though i do hope this malibu can garner enough interest to not need the kind of sales and rebates advertising the fusion does.

The Malibu doesn't have to build the name for itself the Fusion had to; it has a solid reputation for itself and even the most jaded of us here can admit recent Malibus have been quite good cars, just not anything special. Also, Chevrolet has a very solid midsize sedan customer base unlike Ford who had pillars of Focus and Taurus buyers. The Malibu is also coming forth with its A-game, not watered-down so Mercury and Lincoln versions have a chance.

[regfootball]

shame they won't hit showrooms forever. they are needed now.

[balthazar]

>>"GM retired the Malibu name in the 1980s and then brought it back in 1997 and slapped it on a midsize, front-wheel drive sedan nothing like the brawny rear-drive muscle cars that bore that name during the 1960s and 1970s."<<

"slapped', eh? No attitude there, right?

And it was the Chevelle... or more specifically the Chevelle SS that was typically 'brawny'- Malibus often ran 6-bangers or very small undertuned V-8s.

[Camino LS6]

>>"GM retired the Malibu name in the 1980s and then brought it back in 1997 and slapped it on a midsize, front-wheel drive sedan nothing like the brawny rear-drive muscle cars that bore that name during the 1960s and 1970s."<<

"slapped', eh? No attitude there, right?

And it was the Chevelle... or more specifically the Chevelle SS that was typically 'brawny'- Malibus often ran 6-bangers or very small undertuned V-8s.

Until '78, Malibu was just a trim package on Chevelle. I hate it when people equate the two.

[6t5frlane]

This just confims in my view why Chev. should have ditched the Malibu name and called this new car something else. Malibu=Old. Be prepared to rent one soon while at Disney!

[Chicagoland]

"...nothing like the brawny rear-drive muscle cars that bore that name during the 1960s and 1970s..."

Contrary to what those born after 1980 think, not all RWD cars built in the 60's and 70's were "muscle cars". Most common misconception on the internet.

Chevy's mid-sized "muscle cars" are the "Chevelle SS", NOT "Malibu" at all. From 1964-72, Malibu was the top Chevelle trim level, and it was offered with I6's to 454's. Then the 73-77 Chevelles had many other trim names, like Laguna and Malibu Classic, and the SS was only in '73.

The 1978-83 Bu's are not muscle cars at all, nor are they Chevelles either, just RWD family cars. Sure one could customize a RWD car to a drag racer, but the true "muscle cars" were only 10%, at best, of mid sized cars back then.

So, no, a 1970 Chevelle '300' 4 door with a 307 V8 and automatic is not a muscle car at all. Just like a base Lancer is far from an EVO.

Edited January 19, 2007 by Chicagoland

[CARBIZ]

Still, Chevrolet sold a lot of those mid-sized vehicles and there are many people of prime car buying age who have fond memories of their childhood in the back seat of one of those mid-sizers. The same cannot be said of the later Citation. So, yes, GM did the right thing in resurrecting the Malibu name. I am going to save the FWD-RWD argument for another thread, but the 97-03 Malibu had its strengths. The mistake many pundits make, IMO, is taking a vehicle out of its time line and judging it by TODAY's standards. If you compare a '97 Malibu to a '97 Camry, the similarities are striking. Many of us never warmed to the appearance of the "second" generation Malibu. I believe its sales were somewhat dampened by the odd looking front end and less than exemplary materials inside - although, having driven them on and off for the last two or three years, I have to say that they are very well laid out and easy to live with!

I sincerely hope that the next generation makes the leap to the forefront of the mid-size market. From what I have seen so far, I am cautiously optmistic. GM needs a winner in this all-important market. Something that will sell more than a quarter million units and not have to be fleeted. I have no illusions that the Malibu will outsell the Camry. Due to GM's adherence to too many brands, Toyota and HOnda's dominance in the "#1 selling" sweepstakes are guaranteed.

[ponchoman49]

Other than the high performance 3.6 and inclusion of the 3.6 this car screams rental queen to me with it's ultra bland styling, numerous compromises and lack of features compared to even the lowest entry level models from abroad. And losing interior space despite a 6 inch longer wheelbase cements this cars low ranking in upcoming comparisons. Also what sense does it make to put a nice retro interior in such a bland genric looking sedan. They should have saved it for the upcoming Impala which hopefully will have more interesting sheetmetal.

[4gm]

I'm with Poncho on this one. I don't think the new Malibu has what it takes to win over a large number of buyers. It is too bland. It has a distinctive grill but that is it. Nothing on the rest of the car stands out. As I mentioned in another thread, I do think this will do better than the current Malibu but any rise in retail sales will probably be offset by a reduction in fleet sales. The Epica or reworking the Commodore design for Epsilon would have been much better choices as Malibu replacements.

[Drew Dowdell]

The Epica......would have been much better choices as Malibu replacements.

uh.... no

[red]

I'm still waiting for someone to explain what happened to the rear-end. Seriously, the definition of "afterthought" in design.

[Intrepidation]

I'm with Poncho on this one. I don't think the new Malibu has what it takes to win over a large number of buyers. It is too bland. It has a distinctive grill but that is it. Nothing on the rest of the car stands out. As I mentioned in another thread, I do think this will do better than the current Malibu but any rise in retail sales will probably be offset by a reduction in fleet sales. The Epica or reworking the Commodore design for Epsilon would have been much better choices as Malibu replacements.

Dude...seriously...NO

It's like a Korean Sebring with a little L-Series thrown in and a lame-ass interior...how is that better?

I'm still waiting for someone to explain what happened to the rear-end. Seriously, the definition of "afterthought" in design.

If only they stole the taillights off the Cobalt Coupe instead of the Mitsubishi Diamante.

NOS did a good chop of it I think. Still, aside from teh rear end this is a very nice car. The interior and powertrain should win over buyers.

[hyperv6]

After seeing this car in person I feel it will do very well for Chevy and will be in the gave with the Accord and Camry.

This class of car is not for enthusiast and many here look at cars like this and expect too much.

The kind of people that buy cars like this are people going from point A to B and want to know they can do it with reliability and a resonable price.

If the reliability of this car holds as I hope they will sell a lot of these cars. GM is not going to take the lead from the Camry with this car but they wil gain a lot of ground with it if everything goes as planned. You have to walk before you run and that means Chevy has to prove this is a great reliable car and just work to regain market share in this class. Reputations are earned not bought or styled.

If looking odd or plain was a major problem in this class the Camry would not be selling so many car [or do all of you think the Camry is a stunningly styled car?]. Also few connect the name Malibu to the old Chevelle Option anymore as it has been a small car nearly as long as it was a Chevelle.

Chevy will make progress with this car over the past model so it will be important to build a great reputation with this car. A new reputation for reliability and dependibility will sell more cars than styling in this class. They you sell it well optioned for 21-25K your going to move cars.

Bottom line this car will much better than the last and will be competitive with the Camry and Accord. Time will prove this out in this appliance class of car. You just can't look at this class of car as a auto enthusiast as you will never be happy as a average joe who just wants to get to work and home 5 days a week and does not care if he stands out in a crowd. These are not ego car and never will be.

If you want to be seen buy a Camaro.

Edited January 20, 2007 by hyperv6

[vince]

I am wondering do you guys that think the new Malibu back end is ugly also hate the Lucerne, Impala and G6 back end? Do you think this car is better than those 3, exterior wise? I happen to love the new Camaro but do not think my kids will like the back seat or we will like the small trunk so I think I need to think in this direction. I just feel this Malibu will still look good in a few yrs and is much nicer looking than the Camcords out there. Your thoughts?

[Northstar]

I am wondering do you guys that think the new Malibu back end is ugly also hate the Lucerne, Impala and G6 back end? Do you think this car is better than those 3, exterior wise? I happen to love the new Camaro but do not think my kids will like the back seat or we will like the small trunk so I think I need to think in this direction. I just feel this Malibu will still look good in a few yrs and is much nicer looking than the Camcords out there. Your thoughts?

Go with the Zeta Impala when it comes (if you can wait). Best of both worlds. RWD performance, probably looks better than the Malibu, and has 4-doors.

[vince]

Go with the Zeta Impala when it comes (if you can wait). Best of both worlds. RWD performance, probably looks better than the Malibu, and has 4-doors.

The RWD Imapala interests me greatly but I do wonder about my wife losing it on me becuase she is scared to drive it here in Philly in the winter. LOL!

[gm4life]

The Malibu should be a great car I hope it will!

[pow]

Not with an AURA-quality interior, it won't.

[Mule Bakersdozen LS]

Malibu....its reputation so far is that of an inexpensive, boring, fleet-special mid-size sedan that's been competent (or in the 2004-07, barely). This Malibu has the style going for it, haven't seen the passenger and cargo room or equipment specifications yet, but it remains to be seen whether or not it can unseat Camry, Accord, or Altima. I like the Aura-its the best mid-size GM car since the RWD G-Bodies/FWD A-Bodies (before the 1986 Ford Taurus came), and it has much promise, but there's much that remains to be seen quality-wise and how the Bu' measures up. But seriously, how about some Special Edition a la HHR for this car? Like Calibu (California Malibu)? A Malibu LS Sport package? Malibu Black Sterling with Black/Silverstone paint?

[FUTURE_OF_GM]

Now, GM is unveiling a revamped look for the Malibu sedan, as part of a broad effort to convince people shopping for a car priced below $30,000 to pause on their march to Toyota Motor Corp. or Honda Motor Co. dealerships.

Seems to me that the new Malibu is a little more than a "revamped look"

The new Malibu "will be the beginning of a very big transformation for our car lineup," says Cheryl Catton, general director of marketing for Chevrolet cars.

'bout time Chevrolet was treated as more than a 'catch all'

*** I find it funny that Chevrolet is off a bit for 2006 and all of the sudden we have to "jump start" the division. ***

[regfootball]

The RWD Imapala interests me greatly but I do wonder about my wife losing it on me becuase she is scared to drive it here in Philly in the winter. LOL!

which is why AWD should be optional.

[trinacriabob]

I'm wondering if a new name was needed, as well. But, I'm sure they conducted their marketing research.

At first blush, the Malibu is better looking than either Camry or Accord...by a wide margin.

[turbo200]

After seeing this car in person I feel it will do very well for Chevy and will be in the gave with the Accord and Camry.

This class of car is not for enthusiast and many here look at cars like this and expect too much.

The kind of people that buy cars like this are people going from point A to B and want to know they can do it with reliability and a resonable price.

If the reliability of this car holds as I hope they will sell a lot of these cars. GM is not going to take the lead from the Camry with this car but they wil gain a lot of ground with it if everything goes as planned. You have to walk before you run and that means Chevy has to prove this is a great reliable car and just work to regain market share in this class. Reputations are earned not bought or styled.

If looking odd or plain was a major problem in this class the Camry would not be selling so many car [or do all of you think the Camry is a stunningly styled car?]. Also few connect the name Malibu to the old Chevelle Option anymore as it has been a small car nearly as long as it was a Chevelle.

Chevy will make progress with this car over the past model so it will be important to build a great reputation with this car. A new reputation for reliability and dependibility will sell more cars than styling in this class. They you sell it well optioned for 21-25K your going to move cars.

Bottom line this car will much better than the last and will be competitive with the Camry and Accord. Time will prove this out in this appliance class of car. You just can't look at this class of car as a auto enthusiast as you will never be happy as a average joe who just wants to get to work and home 5 days a week and does not care if he stands out in a crowd. These are not ego car and never will be.

If you want to be seen buy a Camaro.

but the problem is, the nissan altima, the only car to seriously challenge in retail sales the Camry and Accord's position, disproves your whole theory. it is stylish and incredibly sporty for the class, especially the new one. it's also elegant and very executive class, but the whole dimmension of the car is sports sedan. The question is Did the Malibu stray yet again to far towards the family spectrum in this class? The Aura is after all, just from the look, more of a sports sedan type than Malibu, but Malibu has far more shots at success than Aura does [brand recognition/history, dealer base, etc].

All that said, I do think the Malibu will be a progressive success for GM. I think it could easily top 300k sales in a couple of years. It will have a lot of buzz because it's a worthy GM car, and that alone will get it buzz, and its competitive pricing, powertrain, interior design, and suave exterior look will win over many. It may take a couple years to build the brand though.

Edited January 22, 2007 by turbo200

[hyperv6]

but the problem is, the nissan altima, the only car to seriously challenge in retail sales the Camry and Accord's position, disproves your whole theory. it is stylish and incredibly sporty for the class, especially the new one. it's also elegant and very executive class, but the whole dimmension of the car is sports sedan. The question is Did the Malibu stray yet again to far towards the family spectrum in this class? The Aura is after all, just from the look, more of a sports sedan type than Malibu, but Malibu has far more shots at success than Aura does [brand recognition/history, dealer base, etc].

All that said, I do think the Malibu will be a progressive success for GM. I think it could easily top 300k sales in a couple of years. It will have a lot of buzz because it's a worthy GM car, and that alone will get it buzz, and its competitive pricing, powertrain, interior design, and suave exterior look will win over many. It may take a couple years to build the brand though.

I think you under estimate a future sport option being offered. Chevy have always offered a F41 package and they still have better engines yet that can be put in. There is a lot that can and will be done here with this new car.

The we have just recieved is the start and is aimed at the larger market as a whole. The nissan is just a small part of the big picture. If Chevy can win sales and match Toyota and Honda they have done what they need to do in this first gen of this changed car. The next car not only needs to meet them but lead the market. By then I would hope GM will hav even better engines and bit to make this the best value car on the market.

This is not a car that is going to be a poster on sonones wall but a car that many non enthusiast will buy because of reliablility and value as that is why when you look around you ave a Camry on every street cornner.

The Nissan is better in many ways but it is not what the market as whole is looking for. Saturn will pick up the sales there as will a new imporved G6 when it is time. GM has the advantage of several divisions to win overal sales they don't have to do it all with one car. If there going to keep the divisions then use em!

Bottom line on this car is it will sell and do well. So far far the press likes it and have rated it sister Aura as being competitive in the market. These are factors GM never had with the last car.

This car will be like the HHR a good triple but not a home run. I will take a few triples and win the game after years of 3 up 3 down and out.

As for AWD Impala's Just how many AWD Chrylsers and Dodges are selling? I see a market but it is not a priority as the market is so small. Cost is such a factor with Chevy an AWD option on a small market is better left to a more expensive Pontiac or Buick.

[AM6_Cutlass]

This just confims in my view why Chev. should have ditched the Malibu name and called this new car something else. Malibu=Old. Be prepared to rent one soon while at Disney!

Malibu is a great name. If GM made the same car, and called it something else it would somehow be less desireable to rental car agencys? A certian percentage of most GM sedans will always be available as rentals. It doesn't have to be a bad thing... We have rented a car every year for vacation since 1997. We rent from Avis specifically to get a GM car, although this year they tried to stick us with a Sonata so we had to upgrade at the counter to get a Lucerne. It was a very positive experience, and I am actually considering buying a Lucerne because of it. I like Lutz's attutude: "done right, rental sales could help GM. By selling better looking cars -- without "gray rat's fur upholstery and dark gray plastic parts" -- renting a GM car "becomes a national demonstration program where people actually pay to drive a GM car, and they say, 'Holy smokes, it's fabulous.' " Edited January 23, 2007 by AM6_Cutlass