GM bets the farm on new, bigger SUVs (Pass the Kool-Aid, please)

[Bozita]

This column occupies the headline space on the frontpage of today's Detroit Free Press.


http://www.freep.com/money/autoreviews/phelan21e_20050921.htm

MARK PHELAN: GM has its future riding on new SUVs


Big trucks for '07 will impress

September 21, 2005


BY MARK PHELAN
FREE PRESS COLUMNIST


The new SUV that may spell salvation for General Motors has arrived.


On Thursday, the automaker debuted the 2007 Chevy Tahoe, a bigger, better looking, more powerful and more fuel-efficient truck than its predecessor, which powered GM's profit for the last four years.


The SUV is vital to GM returning to profitability and to the fate of thousands of jobs at assembly plants and suppliers in Detroit and across North America.


It hits the market when some observers think buyers may have turned away from big SUVs because of rising fuel prices and changing tastes.

more...

[Oreo]

1. Nice knowing you GM

Can you say the word hybrid? A lot of jobs are going to be lost over this stupid idea.

[raccoon]

6. GM's management must be dumb as rocks.

And or/arrogant as the Junta.

Too bad it will be the rank and file who take it in the neck.

[phantom power]

11. I think one thing that is happening is, they *have* to bluff.

They've been caught with a product pipeline full of gas guzzlers. They can't just change it in a year, even if they want to. So, they have to figure out how to sell as much of what they're committed to making, as possible. If they come out and admit they goofed up, and that gas prices will stay high, they are even more screwed than they are already.

Of course, they are in this position because they didn't look ahead 10 years ago, and the Japanese did. But I think their bluster *now* is their last (desperate) option for trying to unload as much inventory as possible.

[muriel_volestrangler]

13. Then again, they do have some dumb customers

so they might get away with it.

"Better fuel economy would make a big difference," said Jennifer Murray, 24, of St. Clair Shores. Murray figures she gets 15 to 16 m.p.g. in her Oldsmobile Bravada midsize SUV, which is considerably smaller than the 2007 Tahoe. "With gas prices this high, all I do is drive to and from work."

Maybe she doesn't need an SUV, then. Maybe she should be driving something like a Honda Civic. That'll get you to and from work, dry and comfortable, however far the commute is.

[ozarkvet]

26. Union

I think they are betting that, by the intentionally having a bad year or two, they can union bust more effectively, move the jobs to right-to-work-for-slave-wages states.

[The Traveler]

29. Not known for market foresight

but good engineering, really.

Someone needs to grab GM by the short hairs and say "FUEL ECONOMY! NEAR ZERO EMISSIONS! HIGH RELIABILITY!"

GM engineers, technicians and assemblers can do it. GM management? Well, their history is clear.

** Edited for typos: "assemnlers" is not a word.

[rkc3]

2. Toyota and Honda's stock prices should rise today.

[trotsky]

3. Wow, that is dumber than dumb.

And what's terrible is that the executives who made this moronic decision will be rewarded with golden parachutes, and the workers will lose their pensions, benefits, and jobs.

[Maggie_May]

4. Dumb Dumb Dumb

I need a new car and isn't going to be a SUV. I am tired of supporting the oil companies.

[ClintonTyree]

5. GM has been behind the curve for some time now..........

and this stupid idea will push them further into the red. Who the hell is running that place, some Republican? :shrug:

[marbuc]

7. You know, I like to buy American where prudent

but GM is not making cars I would be interested in buying. They blame their woes on our healthcare system, and while I agree that healthcare should be administered through the government, this is not their problem. Their problem is they don't make cars that Americans want to buy.

I shopped for a car last year. I looked at GM first, but ultimately bought a Honda because I wanted a compact SUV with decent gas mileage. GM had nothing that compared with Honda or Toyota in this class. Jeep/Chrysler is catching on, why can't GM get it?

[Skink]

8. Maybe W is actually working for GM..

[flvegan]

9. 20.1 (estimated) mpg out of a 5,500 lb behemoth? I'd like to see how.

Does it come with a smaller car in the back that you can use to pull it around in neutral?

It's wider, too. Good luck in the bank drive thru, asshats.

[TommyO]

20. Displacement on Demand

One of the things that GM is doing with some of their vehicles is using an engine that can run on four of it's eight cylinders when it's cruising at speed. The 5.3l engine that they're using in the Pontiac Grand Prix and Chevy Impala gets 28Mpg highway because of it.

[flvegan]

21. Which means that around town and stop and go

It'll get 8, and for the short amount of time most of these folks will be at "cruising speed" it'll get 25. Respectable science, unrealistic expectations of use, I think. Bet it sells big suvs though.

[TommyO]

25. 18/28 for the Impala

but you know those behemoths will be under 10mpg for puttering around town - too low for my blood!

[Ravenseye]

10. In Fairness, it is more fuel efficient

Up to a whopping 20 MPG combined city/highway.

Ugh.

Also

http://www.freep.com/money/autonews/ethanol21e_20050921.htm

They talk about using Ethanol in their trucks and suv's and getting 100 mpg. 85% ethanol, 15% gas.

[Oreo]

14. So are they saying....

100mpg of GAS not the mix? With only 15% per gallon of fuel, wouldn't that put it right at 15mpg(of gas?)

[Ravenseye]

18. I think per total fuel

If the car has a 20 gallon tank you'd fill it with 17 gallons of ethanol, and 3 gallons of gasoline and you'd be able to go 2,000 miles.

Just imagine. A car where every time you go in to fill her up with fuel it's about time for another oil change as well.

Still. I'd have no idea where I could get ethanol. GM might as well say "You can power this SUV with candycane dreams and gumdrop tears and you'll get 300 miles to the gallon"

[cmutt]

23. e85 gas pumps

I'm not sure how it is everywhere else, but in Minnesota, it's up to each station to determine what types of fuel to carry. So, you may find an e85 pump right next to your regular unleaded. The e85 fuel actually costs significantly cheaper as well; about $0.40-$0.45/gallon last time I saw one. As the article mentioned, the e85 fuel is 100 octane and it's not atypical of e85 vehicle owners to brag about better acceleration as well.

[Selteri]

12. Don't use this expression much but - Are they on Crack? Heroine? N/T

[freesqueeze]

15. Is It 1978?

The US Auto industry practices the worst marketing practices in the world. They are going to build the car they think we should like and by god we'll either buy it or ....... what? drive a quarter mile down to the road to a Toyota dealership?

Must they live through the same nightmare again???

[raccoon]

16. Does seem like deja vu all over again, doesn't it? nt

[Jack Rabbit]

17. The world will be a better place without General Motors

This is an example of how modern capitalism works: without competition. When there was only one automaker, Henry Ford said, "America can have any color car it wants, as long as it's black."

Now GM is saying, "America can have any kind of car it wants, as long as its a big gas gazzler."

We need big gas guzzlers like we need neoconservatives. GM doesn't want consumers to have a choice.

I'll stick with my Toyota for now.

[TommyO]

19. need, Need, NEED???

"GM is committed to full-size sport-utilities," company vice president for sales Mark LaNeve said. "The full-size SUV market is not going away" because many buyers need the combination of room and towing capability the vehicles provide.

The reason so many people "need" an SUV is because they've been brainwashed by Ford and GM to believe that they've be safer, sexier, and happier with a high-profit truck instead of a lower-profit car.

[cmutt]

22. Why just GM?

Just a question, but why bash just GM? I know that GM sells 1+ million full-size trucks/suv's in any given year, but do you think that Toyota or Honda would pass up that highly profitable market if they had that chance?

Did anybody see that the new Toyota RAV-4 has a 268hp engine? Toyota's building a new, larger PU/SUV with an even larger engine. Nissan's got a 300+hp engine as well. Jeez, supposed-green Honda just produced a 255hp truck! I know, you'll say: "it's only a 6cyl". Guess what? GM's 4.8l V8 gets the same gas mileage as Honda's 6cyl! GM's 4.8l puts out more hp and torque than Toyota's 4.7l V8 -- and gets better mileage to boot! Honda is in-process of churning out a 10cyl for their Acura NSX replacement. You see where I'm going with this? All auto manufacturers churn out these gas guzzling behemouths because a large (ignorant, IMO) segment of our population is demanding them. Performance-oriented brands like Mazda and Nissan specifically market towards them!

GM is producing what the public wants (as is Toyota, and as is Honda). GM *IS* making a push to make their large vehicles more fuel efficient--as evidenced by the new Tahoe's numbers. Take a look at Chevrolet's Malibu in comparison to the Accord & the Camry:

Malibu (4cyl): 24/35mpg, (6cyl): 24/32mpg
Accord (4cyl): 24/34mpg, (6cyl): 21/30mpg
Camry (4cyl): 23/34mpg, (6cyl): 20/28mpg

Lastly, GM's "dual-mode" hybrid system debuts on their full-size trucks & SUV's next year. Unlike Toyota's Synergy system, GM's dual-mode hybrid system uses 2 smaller electric motors mounted around the gearset of the transmission. The vehicle switches between electric motors as the transmission switches gears. Because the electric motors use the transmission gearing to deliver their propulsion, the motors can be smaller, their range can be extendeed, and the vehicle can drive on electricity at higher speeds (supposedly upto 40-45 mph). Supposed to debut next-year.

BTW, if you haven't guessed it, I'm a bit of an auto-nut. Additionally, it's my personal opinion that some of GM's cars are a tremendous buy right now. The Malibu I mentioned is brand new, gets exceptional gas mileage, and has earned top spot in jdpa's initial quality and long-term durability rankings for 4 of the last 5 years. You combo-that with the deals that they are floating and you can get yourself a excellent value.

IMO, Toyota and Honda have better PR.

[LeftyMom]

28. You're comparing apples and oranges

The Malibu is smaller than the Camry and Accord and generally not as nice in terms of passenger amenities. It's a much closer match to the Carolla, size wise and in terms of kid-hauling capacity (which would be two easily, three in a pinch.) The closest GM comparison for the Accord or Camry is the Impala, which is a fine family car and still rated for 21/32.

[TommyO]

30. The Malibu and Accord are similar in size

The Malibu has 101.4 cubic feet of interior space, while the Accord has 97.7. The Impala is a much larger car at 123.1 cubic feet.

All figures are from the Chevy and Honda websites.

[sarcasmo]

24. These IDIOTS will never get it. If you have a relative that will Retire

with GM. Tell them to take the Pension buy out and get there cash before these IDIOTS declare Bankruptcy and the Government pays out only 60 percent of the pension.

[AX10]

27. Toyota was to become number 1 in 2015. It's like 2009 now.

Maybe sooner. Bye GM. Love your Corvette, but your management sucks.


Congratulation Toyota! :applause:

[mcar]

31. What are these idiots smoking?

Ford finally gets into the hybrid race and GM trots out a new, BIGGER SUV? How dumb can you get?

[wallwriter]

32. You can't defy physics.

You might be able to get slight improvements in gas mileage with displacement on demand if you drive with a very light foot. But you still have 2 1/2 tons of junk to haul around. And when's the last time you saw the average SUV driver go slowly?

The amount of oil we have is limited, but the number of morons is obviously not.