GM has vehicles for solid recovery
By Mark Phelan
Detroit Free Press
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DETROIT — General Motors Corp. builds more good cars and trucks today than it has in decades, but it's still saddled with too many losers. The plant closures announced this week should address that and allow GM to stop diverting resources it can't afford to vehicles it doesn't need.
It may make sense for Pontiac and Buick to attempt to sell minivans in some alternate universe, but on Earth the boring vehicles only distract GM from coming up with vehicles the public actually wants.
GM has another problem — one that it created for itself: The world's largest automaker has spent the better part of a generation teaching us to expect poor quality and lousy fuel economy.
That's generally not the case today — the Chevrolet Malibu midsize sedan gets 35 miles per gallon on the highway and has won several awards for quality.
As fuel prices rose this summer, it became fashionable to dismiss the new full-size SUVs that GM has coming next year as out of touch and out of time. But GM's big SUVs have outsold the Toyota Prius gasoline-electric hybrid by a ratio of more than 4-to-1 this year.
When a brand has become severely damaged, it takes three to five years for the public perception to catch up with an improvement in its products, GM Vice Chairman Bob Lutz said last summer.
By that measure, GM's Cadillac and Chevrolet brands are in recovery. The automaker's latest moves could set the stage for repairing the rest of its product line.
The two C brands build many excellent models today. The Cadillac CTS has been on the market since 2002 and its sales are still rising, a trend that's almost unprecedented among domestic brands. Buyers are paying the sticker price for the Chevrolet HHR, unheard of for a small car from GM.
Cadillac has a clear mission — to be America's luxury car — and a well-defined product line. Chevrolet's not quite there yet, but upcoming vehicles, including the full-size SUVs and pickups and the stunning replacement for the Malibu midsize sedan spell out GM's plan. Chevy must again become the brand that combines affordability, style and performance for the American family.
Phasing out plants that build peripheral vehicles like Chevrolet's enjoyable but slow-selling SSR pickup makes sense. The market is moving away from vehicles like the Chevy TrailBlazer, GMC Envoy and Buick Rainier. GM is better off concentrating on fuel-efficient replacements for those vehicles that will come from its new assembly plant outside Lansing.
The idea that GM has to provide Buick, GMC, Pontiac and Saturn dealers with a vehicle for every market niche is a luxury GM can't afford.
Buick and Pontiac remain weak. The brands have no clear identity, and they've had too many bland cars for too many years. Their images have sunk lower than Cadillac's and Chevrolet's ever did, Lutz admitted last summer.
Pontiac has the first cars in its revitalization on the road now in the Solstice roadster and GTO sport coupe, but Buick is just getting started.
By ditching the minivans and so-so midsize sedans that clutter their lineups, GM may hasten the recovery by sharpening Pontiac and Buick's focus.
The bottom line, though, is this: If Cadillac and Chevrolet are healthy, GM is healthy. The rest is gravy.