Is GM delaying its new cars to intro X-Overs?

[Northstar]

The only reason that I have been able to come up with as to why GM would delay/cancel the NG Malibu and ION (both of which were supposed to be awesome -- and we know the ION was) is that now they're concentrating on the several new crossovers they have planned. I remember a discussion a while back in which our insiders told us that GM thinks crossovers are going to be the key to the future. While getting ahead of the game in an expanding market is good, does GM just expect it's current sedan buyers to make the move to X-Overs when they find out the sedans GM offers in 3 years are the same ones it offers now? I'm all for GM trying to control the X-Over segment, but I don't see the need for as many X-Overs as it has planned if it means sacrificing other VERY important products. If my memory serves me correctly (and I probably need a refresh from our insiders on Sub-Theta) both Saturn and Chevy were supposed to have a Sub-Theta to go along with the Equinox and VUE. Now, with the next VUE already having debuted in concept form, and we know it's pretty damn cool, wouldn't it make more sense to push ahead the ION and cancel the S-T (Sub-Theta) because the next VUE looks so good and I see the S-T doing nothing but cannibalizing sales. In addition, I see a Chevy S-T cannibalizing a lot of HHR sales, and it would make a lot more sense to get a kick-ass Malibu out than a S-T that's not going to sell in nearly the volume a class-leading family sedan would. With the news of the ION and Malibu this week, I've been trying to figure out what the hell GM is doing, and this is my only explanation. After examining what I think GM's reasoning may be, it makes almost no sense. Sure, the S-T's may make some money since SUVs/X-Overs are generally good money makers, but they aren't going to sell in the numbers the ION or a class-leading Malibu would. Plus, GM already has a decent foothold in the small X-Over segment with the Equinox and VUE. This is all speculation and it's quite possible the ION and Malibu were delayed/cancelled for other reasons, but I would much rather see GM cancel the S-Ts than cancel CRUCIAL future cars. The S-Ts are not crucial to GM's future success, but the ION and Malibu could be.

[turbo200]

Cancelling or delaying high volume sedans is not a good business practice. Yet again, GM appears to be placing all thier eggs in one basket. What about the 800k plus buyers who buy a Camry and Accord? Is there no hope within GM to someday crack the formula and produce something that startles the public into acceptance? Aura and Malibu were going to be a one-two punch in the mid-size arena. Now it seems GM has other plans. Just as much as I believe RWD is a necessity, I beleieve FWD sedans are a necessity, and this is one of the most hotly contested arenas in automobiledom. The Azera has even been more well received than the Malibu and G6. It's a shame. One of the most important categories and it looked like GM would have some world class products. Now, the beancounters are getting to it and figuring they need to concentrate on somehting else. Can't GM be well rounded for once?

[Trimnell1]

Northstar, I agree with your assessment of what the hell GM is doing right now. It makes absolutely no sense to delay/cancel the Malibu and Ion seeing as how their markets are among the most competitive and they desperately need class-leading cars to stay in the game. Evok said on the "other" forum that the Sub-Thetas had been sent back to the drawing boards, so maybe your reasoning is correct in saying that GM is delaying some of their cars to get the S-Ts right because they didn't get them right the first time. To me, that sucks big time because even though GM does need more crossovers they also need the next-gen Malibu and Ion to keep pace with all these new Asian cars coming to the market. We've all seen the new Camry and how much better it is than the current one, maybe GM delayed the Malibu to modify it after seeing the new Camry's specs. Or perhaps they wanted to wait for Epsilon 2 to arrive because the NG Malibu was still on Epsilon 1, if I'm not mistaken. My only hope is that GM has something even better planned for these two cars that we don't know about yet.

[thegriffon]

No, they are not being delayed or cancelled for the crossovers. Although Ah-HA may be frustrated by the changes, it appears they are doing what they should have done fromt he start—ensuring they get the maximum bang for the buck by consolidating sedan programs internationally, and switching all North American midsize sedans to Epsilon II, even if that means a slight delay for the Malibu. By concentrating resources on a single program instead of two or three duplicate models, they may even be able to bring things forward in some cases.

[VenSeattle]

The problem is that everything continues to stay in development. GM continues to perpetuate a 6-8 year model life cycle for its products even though it claims to be shortening them. True, development is "actually" speeding up, but the product is NOT making it to the showrooms any quicker.

[ehaase]

Considering how Toyota has enlarged the RAV4, cancelling the sub-Thetas makes perfect sense for me. I think that the HHR is sufficient for that market. If GM pushes the Malibu back to 2009 or 2010, I wonder if it will also end up pushing its RWD programs back to 2011 or 2012.

[Northstar]

Considering how Toyota has enlarged the RAV4, cancelling the sub-Thetas makes perfect sense for me.  I think that the HHR is sufficient for that market.

If GM pushes the Malibu back to 2009 or 2010, I wonder if it will also end up pushing its RWD programs back to 2011 or 2012.

[post="55669"]<{POST_SNAPBACK}>[/post]

Agreed on the Sub-Thetas. I never personally saw the reason for anything smaller than the VUE, and the HHR covers the market fine (and the Vibe).

I don't think pushing the Malibu back will push back RWD. RWD is/will already be global before Epsilon II, and thus I think it's possible that the RWDs will come out before the Malibu.

Remember, we're supposed to be getting a surprise Pontiac production vehicle at one of this year's auto shows. We should know a lot more about where RWD depending on what the vehicle is.

[regfootball]

Northstar, I agree with your assessment of what the hell GM is doing right now.  It makes absolutely no sense to delay/cancel the Malibu and Ion seeing as how their markets are among the most competitive and they desperately need class-leading cars to stay in the game.  Evok said on the "other" forum that the Sub-Thetas had been sent back to the drawing boards, so maybe your reasoning is correct in saying that GM is delaying some of their cars to get the S-Ts right because they didn't get them right the first time. 

To me, that sucks big time because even though GM does need more crossovers they also need the next-gen Malibu and Ion to keep pace with all these new Asian cars coming to the market.  We've all seen the new Camry and how much better it is than the current one, maybe GM delayed the Malibu to modify it after seeing the new Camry's specs.  Or perhaps they wanted to wait for Epsilon 2 to arrive because the NG Malibu was still on Epsilon 1, if I'm not mistaken.  My only hope is that GM has something even better planned for these two cars that we don't know about yet.

[post="55620"]<{POST_SNAPBACK}>[/post]

that Aura rebadged as a chevy might end up being the next malibu. it IS built in farifax and its a great way to hedge bets if the Aura doesn't sell.

[Northstar]

that Aura rebadged as a chevy might end up being the next malibu.  it IS built in farifax and its a great way to hedge bets if the Aura doesn't sell.

[post="55817"]<{POST_SNAPBACK}>[/post]

I don't think that's going to happen...

If the Aura doesn't sell then why would they make the Malibu a rebadged Aura? That'd be like commiting suicide.

The Aura is Epsilon I and the next Malibu (because GMX386 got cancelled) is Epsilon II, so I don't think they're going to be rebadges.

[FUTURE_OF_GM]

Cancelling or delaying high volume sedans is not a good business practice. Yet again, GM appears to be placing all thier eggs in one basket. What about the 800k plus buyers who buy a Camry and Accord? Is there no hope within GM to someday crack the formula and produce something that startles the public into acceptance? Aura and Malibu were going to be a one-two punch in the mid-size arena. Now it seems GM has other plans.
Just as much as I believe RWD is a necessity, I beleieve FWD sedans are a necessity, and this is one of the most hotly contested arenas in automobiledom. The Azera has even been more well received than the Malibu and G6. It's a shame. One of the most important categories and it looked like GM would have some world class products. Now, the beancounters are getting to it and figuring they need to concentrate on somehting else. Can't GM be well rounded for once?

[post="55619"]<{POST_SNAPBACK}>[/post]

GOSPEL!

No, they are not being delayed or cancelled for the crossovers. Although Ah-HA may be frustrated by the changes, it appears they are doing what they should have done fromt he start—ensuring they get the maximum bang for the buck by consolidating sedan programs internationally, and switching all North American midsize sedans to Epsilon II, even if that means a slight delay for the Malibu. By concentrating resources on a single program instead of two or three duplicate models, they may even be able to bring things forward in some cases.

As long as it's still a head turning beauty, that's fine by me. GM HAS to be efficient to survive.

[drew770]

It seems like every other day, GM is changing this or delaying that. Who in the hell is in charge!! Get a plan going and stick with it! GM was allegedly already solved the various platform issues. Well, I guess not. So the current Malibu will be sitting on the lots for how many more years? Well, I hope GM has a front & center seat watching the new Camry crush the Malibu. My patience is wearing thin with this management!

[regfootball]

let me say this IF indeed they canceled the 08 malibu but are still going ahead with the camaro...... THEN THE PRIORITIES ARE ALL FUC-ED UP.

[drew770]

Sometimes you have to lose money in order to make money. If the NG Malibu was the drop dead beauty that the critics said it was then why not release them as a stop gap against the new Camry? I know GM has to save resources but there is a growing gap between sales of GM's midsize cars and Camry/Accord. Hopefully, the Aura is all that and a bag of chips because if it isn't then GM's midsize car hopes will be a faded memory.

[Cremazie]

I think they will re-fresh the Malibu, but without sheetmetal change. I could see a better interior and a re-worked nose and tail. It may do the trick, the interior is where it will lack the most. Edited December 11, 2005 by Cremazie