Ever since emerging from bankruptcy, the Chevrolet Cruze has been something of a symbol of GM’s rebound. Widely hailed by the automotive media as General Motors’ strongest effort to date in a compact segment that has become increasingly important in recent years, the Cruze seemed to show that the “new” GM was capable of selling smaller cars on their merits, rather than as afterthoughts to more profitable truck, SUV and large car offerings. And indeed, through the first half of this year, it seemed that the Cruze was something of a roaring success, regularly outselling its segment competitors. But then, in June, when production shifted from 2011 models to 2012 models, something changed: sales started to slow, and inventories started to rise. As Cruzes began piling up on dealer lots, GM trimmed production moderately, but still, inventories began to grow out of control. Clearly something was going wrong.

UPDATED: “Big Six” compact sedan monthly sales graph (Jan-Nov, 2011) added to gallery after the jump.

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Allegedly, GM wants to replace Opel and Vauxhall with Chevrolet in Europe, and turn the bow tie into a true global brand. Apparently, it wants to do this with a severely pruned-down dealer network. Chevy dealers in Germany watch every courier coming through the door with trepidation: Every fifth Chevy dealer in Germany will be handed a letter that tells him that his contract is being terminated, says Germany’s kfz-Betrieb.

As reason, insufficient sales are given. Uwe Heyman, a lawyer who manages the council of Opel and Chevrolet dealers in Germany, thinks the reason is likewise insufficient: (Read More…)

Through the mid-1980s, General Motors essentially owned the midsize sedan market. This dominance was ended by the original Ford Taurus, and GM’s position sunk further with the rise of the Honda Accord and Toyota Camry to the top two spots. In recent years the Fusion has replaced the Taurus, while Nissan, Hyundai, and (for 2012) even Volkswagen have become serious contenders. For GM to reclaim one of the top spots, the Chevrolet Malibu had better be a damn good car. The model has been redesigned for 2013. Is the new car good enough? After doing my best to get some seat time in the Detroit area, I gave up my press junket cherry to Chevrolet to find out.
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Shawn writes:

Hey Sajeev and Steve,

I recently asked the Best and Brightest for help regarding my friend’s car buying dilema, but now I’m in one of my own! I am looking to get rid of my 2006 Mazda5 GT, which has been quite problematic. I can no longer tolerate the frequent trips to the shop. Its got about 125,000km on it, and I’ve been getting offers ranging from $6000-8000 for it on trade. The cars I am considering are in the compact to mid-size class, but there are benefits to each car, and I can’t seem to make up my mind. I am seeking a car with decent fuel economy that is fairly engaging to drive. However, I DO NOT want a harsh ride. The GTA is filled with pot holed roads, and I know the stiff ride would get tiresome. Manual transmission is preferred, but not necessary. I do carry four people occasionally, so cross out any coupes. On the Mazda I’ve taken quite a hit in the residual value, so this time around, I am looking to buy something that is a couple of years old. That way, someone else takes the largest depreciation hit. Here is the list so far:

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Avoiding the usual Auto Journo networking opportunities like the plague leaves me with the road test equivalent of everyone’s sloppy seconds.  But there’s a good story behind a nearly dead model, unless we are talkin’ about the Chevy Malibu. Without the charms of a 6th gen Honda Civic or Panther Love (‘natch) this whip’s demise couldn’t come soon enough. A recent sales chart proves the point: a sad commentary for a car that was once hailed as “the car you can’t ignore” by people genuinely interested in making a CamCord fighter…so how exactly has the ‘Bu faired since then?

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In the comments section of yesterday’s post on the ongoing Chevy Volt fire investigation, I noted that GM might

retrofit Volts with crash protection that can maintain battery integrity in all crash conditions… Mary Barra has said that GM is

“continuing to work with NHTSA to investigate additional actions to reduce or eliminate the potential of a post-crash electrical fire.”

I think some kind of update on the battery integrity front is inevitable, but we shall see…

Sure enough, today Reuters is running an interview with GM CEO Dan Akerson, who says that European deliveries of Opel-branded Volts (called Ampera) would be delayed pending NHTSA’s investigation, and that maybe, just possibly, the Volt’s battery might have to be redesigned. Says Akerson:

We want to assure the safety of our customers, of our buyers, and so we’re just going to take a time out, if you will, in terms of redesigning the battery possibly

Unfortunately, Akerson’s mangled syntax makes it tough to know if GM is really going to redesign the Volt’s battery, or what the “time out” in question means. He does tell the AP [via The WSJ [sub]] that a recall or buyback are options as well. Though redesigning the Volt’s battery could be expensive and devastating for sales, GM’s current post-crash safety protocol is incredibly human resources-intensive, and likely very costly as well. And the fact that GM is even considering redesigning the Volt for safety a year after its release is going to create a huge sales and marketing challenge anyway. Volt production edged down by 199 units in November, and now GM’s sales boss Don Johnson tells the Detroit News that the Volt will miss its 10,000 unit 2011 sales goal. At this point, GM may just want to take a mulligan on the Volt’s first year, redesign the battery, and relaunch the thing.

TTAC has received the following protocol, developed by GM in the wake of the June Volt fire at a NHTSA facility in Wisconsin, from a GM source and has confirmed its legitimacy with a second GM source. Though the procedure may be refined based on the findings of NHTSA’s latest round of tests, it gives a good picture of what GM currently does to ensure the safety of Volt driver and passengers as well as rescue workers, towing company workers and salvage yards. And, I have to say, it puts some of my fears about this safety scare to rest. It hadn’t occurred to me that GM’s Onstar system could provide opportunities to respond to crashes in real time, and apparently the system provides a wide variety of data with which GM’s “corporate SWAT team” can tailor its response to any Volt crash event. Hit the jump for the full procedure.

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With NHTSA opening a formal defect investigation into the Chevy Volt, GM is moving to defend its rolling lightning rod (no pun intended) and allay consumer fears about its safety. Yesterday I briefly appeared on Fox Business’s Your World With Neil Cavuto show to talk about what the intro to my segment referred to as “the hybrid from hell” and the “killer in your garage.” I tried to explain that the danger to consumers was basically nil, and that the real concern is for rescue, towing and salvage workers. And I would have explained why NHTSA’s tests still leave some serious questions open, but my “fair and balanced” approach meant that my segment ended up being extremely short. So let’s take the opportunity now to look past the hysteria and pinpoint the real issues with NHTSA’s investigation into the Volt.

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NHTSA has has opened a formal defect investigation into the Chevrolet Volt, on the grounds that

 Intrusion in a crash may damage the battery, which may result in a substantial thermal reaction and fire

We knew that NHTSA was already looking in to this type of defect after an earlier test incident, but the official investigation resume [PDF] lists three separate thermal events that have occurred as a result of NHTSA tests. Hit the jump for the official explanation of this sequence of events.

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After getting the car to run 13s in the quarter-mile with the new engine, I found myself— at age 33— in a sort of “what am I doing with my life?” period of agonizing reappraisal. Ten years of the Impala Hell Project absorbing most of my creative horsepower, and what had I really accomplished with all that work? (Read More…)

I’ve suggested in these pages that the several documented fires involving Chevrolet Volts suggest some kind of pattern, as no other major-manufacturer EVs have been involved in any reported fires. But, as Ronnie Schreiber at Cars In Depth points out, even that pattern seems to pale in comparison to the National Fire Protection Association’s tally of highway vehicle fires in the US each year. Though the number of highway vehicle fires has decreased significantly since 1980, 2009 still saw 190,500 fires. And between 2003 and 2007,

On average, 31 highway vehicle fires were reported per hour. These fires killed one person a day.

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GM has made much of the fact that its Chevrolet Cruze compact has enjoyed strong sales this year, but volume alone isn’t enough to make it in today’s car industry. The key to profitability is keeping production in line with sales, so that plants don’t overproduce, in turn forcing profit-sapping incentives to move the metal. And, as these charts show, GM has been having success selling the Cruze, but not to the extent that it needs to keep production at its current levels. The graph above shows monthly production and sales levels for this year, and it shows that GM has already tried to adjust production once to keep it in line with slower-than-expected sales. But that wasn’t enough. With sales volume dropping the last four months in a row, and inventory jumping from 33 days to 43 days in the month of October alone, the UAW is reporting that the Lordstown plant where Cruze is built will be idled for the entire week of November 28. According to the announcement

The down week is necessary to align production with current market demand. The scheduling modification is attributed to traditional seasonal buying behavior coupled with competitors’ recovering inventories previously impacted by the March earthquake in Japan.

Like a lot of recent Detroit products, the Cruze has received a lot of positive press due to its giant improvement in quality and sales compared to its predecessor. But with demand softening, and GM’s brass fretting over profitability margins as the market shifts to smaller cars, it’s clear that the Cruze’s ultimate success has yet to be proven.

The Chevy Volt fire rumors started early this week, when the utility company Duke Energy told its customers to stop using their Chevy Volt home chargers after an October 30 fire. At last word, NHTSA said that

No conclusions have yet been reached regarding the cause of the fire. We are continuing to monitor the situation.

But it seems that the investigation is coming home, as Bloomberg just reported that a Chevy Volt caught fire at a NHTSA facility, shortly weeks after being crash tested.

The Volt caught fire while parked at a National Highway Traffic Safety Administration testing center in Wisconsin, three weeks after a side-impact crash test, said an agency official. The official, as well as the three other people familiar with the inquiry, said they couldn’t be named because the investigation isn’t public.

The fire was severe enough to burn vehicles parked near the Volt, the agency official said. Investigators determined the battery was the source of the fire, the official said.

Ruh-Roh!

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Summer, 1999: I’d managed to get the Impala into the 14s, barely, with a screamin’ 406-cubic-inch small-block under the hood, but I knew the car would do much better with more traction. Meanwhile, my desire to tell the car’s story coincided with a job move into the maelstrom of dot-com madness. (Read More…)

I’ve been on a Junkyard Find roll lately, but I haven’t forgotten the old/interesting cars that are still among the living. Here’s a nearly-60-year-old Chevy that lives— more accurately, thrives— on the street near downtown Denver. (Read More…)