By on August 21, 2008

Way hey! (courtesy wsj.com)Not to belabor the point (much), but the Chevrolet Cruze is GM's next next big thing. As such, the future Chevy needs a steady stream of spin touting it as such. And so why-the-Hell-isn't-he-embattled GM CEO Rick Wagoner cruises over to Lordstown, Ohio to announce his company's intentions to someday rule the world. I mean, design, build and sell a competitive, profitable small car for the North American market. Automotive News [sub] reports that Rick promised Lordstown $500m to facilitate Cruze control. That ain't much in the new car development scheme of things. And once again, The General's spinmeisters are using every possible opportunity to amp-up the rhetoric re: GM's impact on the U.S. economy. "The investment in Lordstown is one of several that have been announced at U.S. plants in the past five years, adding up to over $2 billion total investment in Ohio and more than $20 billion in the United States." Federal loan guarantee much?

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24 Comments on “GM to Spend $500m on Cruze Launch...”


  • avatar
    Droid800

    Robert-
    The $500 million has nothing to do with actual car development. The money is only being used to re-tool the factory (around $350 million), advertising, and other expenses. Since this is essentially a world car whose platform will underpin at least half a dozen vehicles, the real development costs are probably closer to four times that amount.

  • avatar
    seabrjim

    Gotta love that smile and thumbs up. Whats he thinking? “Soon as this thing bombs in the market our golden parachutes will be just about to open!”

  • avatar
    dwford

    The Cruze will hit the market just in time to compete with the new for 2011 Civic and Focus. Good luck with that.

  • avatar
    Martin Schwoerer

    Cruze is to be introduced at the Paris show, in early October. (Why will it be shown to a primarily European audience?)

    TTAC will be there, and will report.

  • avatar

    I just don’t get spelling words wrong… i mean look back on this car in 40 years… i know it only matters what you sell today.. but really… its a horrible name and one of the only times i’d rather see an alpha number combo…

  • avatar
    Robert Schwartz

    Is this car different from the Saturn/Opel Astra?

  • avatar
    dwford

    The current Cobalt/G5 and the Astra are on similar but not interchangeable chassis. The next gen Cruze/Astra/etc.. will share the same chassis.

  • avatar

    Martin, is the Cruze going to be the big launch, or will the hometown heroes at Purgeot, Citroen and/or Renault have something, too?

  • avatar
    Pig_Iron

    Isn’t Lordstown GM’s most militant plant? Isn’t its labor force one of the most expensive? Doesn’t it have the lowest quality and productivity ratings?

    Why not Ramos, or even Shreveport or Doraville? Why not keep the high margin stuff close to home?

  • avatar
    SupaMan

    Didn’t Wagoner say something about designing the Cruze to “compete with future Civics and Corollas instead of the present offerings”?

    Heh…this I gotta see.

  • avatar
    Needforspeed007

    Its good to see GM putting some money into the marketing of this vehicle. Since that is what was hurting GM for not doing with other models. But starting in Europe isnt a bad move either, since their compact market is far more aggressive than here in the states.

    So, if the Cruze shows and does well in Europe first, then it would have less trouble in the global market a year later after its Euro release.

  • avatar
    law stud

    As the Wall Street Journal points out,

    “The auto maker believes growing demand for nicer, well-equipped small cars coupled with a dramatic redesign for the Cruze will be enough to command sticker prices well beyond the $15,000 base price of a compact Chevrolet Cobalt.”

    –They might sell a few thousand to the hyped fools but the general public knows better. Look at the hybrid Saturns Auras and Malibus sales, pancakes, freaking pancakes.

  • avatar
    Martin Schwoerer

    ferrarimanf355: Paris is big, big, big. Cruze is but one premiere. TTAC will inform about expected news from Paris in mid-September.

  • avatar
    Dave

    I think Ford is launching the new Fiesta and maybe Ka in Paris, and probably VW, Peugeot etc will also have something to show. Not sure if Opel/Astra have anything significant this year – that’s probably why they’re putting the Cruse in, plus it generates some publicity for Chevrolet in Europe.

  • avatar
    nudave

    I’m sure if I’m ever offered one of these at a rental counter, whether in North America or Europe, my only response will be “What else is available?”

  • avatar
    Blunozer

    Just to keep things in perspective…

    GM developed the entire Solstice program on $250 Million.

    The Cruze is scheduled to sell in the U.S. in 2011

    This is the part that kills me. Again, GM is touting its “next big thing” LONG before its available for sale. The Cruze is getting marketed as if we were able to pick it up by the end of the year.

    By 2011 the new Civic, Mazda3, Corrolla, and Focus will all be on the market. Without having the stigma of being “old news”.

  • avatar

    Ahh make Money on small Vehicles eh! It will never happen really, today’s Civic and Corolla and other sub compact vehicles have the quality and the Sales to keep GM in the poor house for a long time and as other have said, why Lordstown!

  • avatar
    mikey610

    Somebody PLEASE dig up the press releases from before the Cobalt launch – I’m sure much of the PR will be cut and pasted from the Last Next Big Thing in Small Cars. (Or was that the Ion?)

  • avatar
    Martin Schwoerer

    It may be Cruze-al for GM, but some are already giving it the Cruze-fiction treatment. (Sorry). Headline in today’s “Autobild” (Germany’s largest car mag): “Chevrolet Cruze: A Korea-Golf for a killer price”.

  • avatar
    50merc

    It won’t get here until 2011? Nah, no need to hurry.

    There’ll be pie in the sky, by and by.

  • avatar
    pfingst

    GM has $500 mil? Who knew?

  • avatar
    kericf

    I was watching the Olympics last night when I saw a commercial for that new Christian Slater show “My own worst enemy”. It actually had a Chevy commercial WITHIN THE TV SHOW commercial(TV Barn). They flash to split screen with two Christian Slaters and the two names under each, then it flashes “CHEVY” on the screen and then a split screen of a Traverse and Camaro with the names under each (Traverse for normal persona, Camaro for the secret agent persona). I laughed out loud at the add and my wife didn’t get what was so funny about it. They are advertising two cars that you cant buy yet?

    From the article I linked to:
    “Speaking for my gender, I’m insulted. It’s like carmakers are trying to fool the guys — for whom this show is obviously intended — into thinking that their product is just like a human. C’mon, give us some credit! I know good and well that one of the co-stars is an inanimate object … and that the other one is a Chevy.”

  • avatar
    Potemkin

    Somebody tell the folks at GM marketing they are working off the wrong calendar. It is not 2011 yet. It’s tough being in GM marketing. People know your current stuff sucks so you can’t say it doesn’t, so you spin the new stuff that people have no experience with.

  • avatar
    cpmanx

    In fairness to GM (I can’t believe I just wrote that), they are facing the same problem that VW and now Ford are facing, as they introduce European models a year or two before the essentially identical products make their US debut. You can’t pretend the Euro models don’t exist, but if you hype them too much in the US you make them sound old by the time they appear here–and you make your current lineup sound positively obsolete.

    That said, the PR folks at GM seem to be running out of control. That might be good for reassuring the stockholders and for making the case for possible gov’t loans, but it’s a terrible way to sell cars. I can’t imagine why anyone would buy a Cobalt now, and yet I also can’t imagine that anyone shopping for a compact car in 2011 will recall the hype machine that was running in 2008.

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