you'll go broke. This was my father's admonition to my mother whenever she returned from the sales, triumphantly proclaiming she'd saved vast quantities of cash. He was right, of course, the spoilsport. Comparing what you would have have spent with what you actually spent might make you feel better, but the real comparison lies between what you spent and what you can afford. My father's words returned to me as I read "Lutz: Astra a Huge Cost Saver" [Automotive News, sub]. In this erstwhile piece of automotive journalism, GM Car Czar Maximum Bob Lutz claimed that importing the Opel Astra saved Saturn about $900m in development costs. Given that Lutz admits that GM spent $100m Americanizing the Astra (which didn't stretch to additional cupholders or a center armrest), does this mean it costs GM a billion dollars to develop a compact car? (Someone should tell Telsa.) Also, does the money that GM didn't spend on the Astra figure into the calculations that Maximum Bob uses to assert that the Belgium-built hatchback will generate a profit for his employer? We're talking about a product that will sticker stateside for $15,995 to $18,495 (absent discounts and incentives). Automotive News didn't say. Which is why TTAC has a place in this world.
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Now, now, Robert. Keep asking those tough questions and it will look like your all negative, or something.
Is it just me, or is the media one big cheerleader for the 2.8 these days? I’m glad TTAC is around for some sanity.
$100M Americanizing the Astra and they could make the clock display time in 12 hour increments? Un****** believable.
Besides which, what global automotive giant builds a car in Europe which is unsaleable in the US without $100M in additional expense? Where on earth did they spend that money?
The Ecotech 4 banger has already been federalized in other GM applications, so emissions certification shouldn’t be very hard. Astra is supposedly a “Delta” platform vehicle, which platform first saw light as the beloved 2003 Saturn Ion. How could a platform which was brand new in the US just four model years ago and which uses federalized engines then require $100M to “Americanize” while still not getting the *(&^ clock right?
My neck hurts from shaking my head so much!
Tell me again how much Bob Lutz is getting paid to manage GM’s global design efforts?????
$99,999,900 for GM exec. bonuses to the guys who declared it a success for saving $900m in development costs, money they didn’t have anyway to develop it. Oh and $100 to slap Saturn badges on all of them. I wonder what other cars we might have gotten for the Malibu’s marketing budget.
Perhaps MR. Lutz is unenlightened of the dynamics of the industry. The goal is still progress, in which perhaps current progress will not work to sustain GM. Well a better vehicle is in the hands of consumers anyhow, so something has been accomplished. Consumers have something to look into, it they enlightened enough to see past the gremlins around sales. I think the TTAC can be honest about the industries mistakes without criticizing. No one is perfect or “should” be. No one can take credit for life, so why criticize?
GM does “seem” dishonest to me though. Not sure about their agenda, but I know mine. Its to do what works for me to be happy. I trust what whom I’ve verified to the best of my abilities are trustworthy individuals. I let go or do not buy into those I believe are not. Its simple, yet many folks have dysfunctional believes that its ok to let others have their way with them because this or that. Thats if folks are even up to believing they deserve better in the first place.
I just hope some money was set aside for FedEx shipping charges to bring parts from the EU for warranty work — I’m certain that Saturn won’t be carring a lot of spare parts inventory — it would further weigh down their books losing them even more money.
And I expect that customers will be needing loaner cars, too.
With GM’s massively bloated infrastructure is really a surprise that the Astra incurred 100M in developement costs? It seems as if GM is competeing with the Pentagon to see who can blow more cash on program oversight. 3 trillion dollar F-22 anyone? How about a V-22 at 80M an aircraft?
At least the Astra appears to have some level of chasis dynamics and handling ability. Oversights like the lack of armrests and twelve hour clocks surely will be fixed by 09.
The possibility that Mr Lutz did indeed save GM 900M in R&D costs speakes volumes to just how deep the problems may be. Oh boy.
Who is Telsa?
BlueBrat –
It’s a major city in Oklahoma, I think….
Telsa is Tesla – the $90K sports car EV that looks exciting, but isn’t available yet.