Look everyone, it’s a Chevy Volt that can seat more than four people! Official images of the Volt MPV5 concept have leaked today [via AutoblogGreen], confirming what recently-discovered line drawings hinted at: a people-carrying version of Chevy’s Volt is under development. The extra rear seat and the 30.5 cubic feet of storage space (62.3 cubic feet with rear seats folded) does come at a price though, as GM says the MPV5 comes up 8 miles short of the Volt’s marketing-mission-critical 40 miles of electric range using the same drivetrain. On the upside, it will almost certainly be classified as a light truck (despite its compact, FWD underpinnings), making it the perfect vehicle to goose increasing CAFE standards.
While all eyes are on the Beijing Auto Show, which starts by the end of this week, manufacturers are looking at plots of land and architect plans for new plants. According to The Nikkei [sub], carmakers are adding capacity to keep up with the ravenous appetite of the world’s largest car market.
First developed by Holden in 2004, GM’s Zeta platform now underpins vehicles as diverse as the Statesman/Lumina/G8/Caprice sedans, and the Chevy Camaro. Originally designed for full-sized , rear-drive Australian sedans, Zeta was downsized as far as it could be for the Camaro, which reviewers largely view as overweight and rather too ungainly for true sportscar status. Accordingly, GM has been developing a new rear-drive platform known as “Alpha,” which will form the basis of GM’s performance and luxury RWD models for the considerable future. Last we heard about Alpha was last August, when Bob Lutz swore there was no development underway of the platform he compared to BMW’s 1-/3-series. According to Motor Trend, work on the Alpha platform has begun… but there are already signs of trouble.
Patent drawings of what appears to be a compact/subcompact MPV bearing the Chevy Volt’s grille have surfaced at GMInsidenews, setting off much speculation as to what it all means. And boy is there room to speculate. Initial impressions are of a Chevy Orlando/Buick Granite with a Volt-alike grille, but upon closer inspection the line drawings appear to show a smaller vehicle. After all, Orlando is supposed to offer a seven passenger option, and it’s hard to imagine sitting aft of those rear doors. And yet the Volt drivetrain was built around GM’s Delta II platform, which underpins both the Orlando and Granite (in concept); why would GM downsize its expensive EREV to the Aveo’s Gamma II platform before building out Delta II variants?
Since GM has only recently come out with GAAP-approved financials, determining the company’s value isn’t easy. Still, The Detroit Free Press‘s Tom Walsh reckons The General is worth more than Ford, despite the fact that GM recently fell out of the Fortune 500’s top ten (and below Ford) for the first time in its 100+ years of history. What gives?
When GM was lobbying for a federal bailout back in the Fall and Winter of 2008-09, desperate times called for desperate measures. Unable to explain why 30+ years of decline didn’t open The General’s corporate eyes to the need for change back when it could still afford it, pro-bailout agitators reached for the most divisive, debate-squelching justifications for a billion-dollar handout they could find. Whether that meant accusing opposition of weakening national security, ingratitude towards the outcome of WWII, racism, classism or even more racism, GM’s pro-bailout campaign left no wedge issue or leverageable political identity untouched. And man, are old habits hard to kick. The Detroit News reports that:
General Motors Co. is making a pulpit pit stop today as part of its accelerating quest to change perceptions among buyers, boost market share and reach new customers — particularly minorities.
GM’s government-installed Chairman/CEO Ed Whitacre hasn’t been wildly popular with Detroit insiders, earning dismissive raspberries from more than a few corners of the industry’s peanut gallery. But now that his reign of executive terror is over, Detroit seems to be learning how to stop worrying and love the former AT&T man. As Whitacre prepares for his first visit to Washington DC as head of GM, the local media and other members of “Team Detroit” are making their peace with Whitacre. So what lies beneath the new united front?
The latest Cruze-hyping video from GM shows the forthcoming compact ripping through a test track, as Vehicle Line Director Chuck Russell waxes eloquent about its engineering and reliability. His point is clear: this new Cruze is a truly global product, in contrast to the America-only Cavalier update that was the Cobalt it replaces. And comparing footage of the Cruze ripping through a slalom to that of a Civic negotiating the same obstacles, one is left with the impression that Russell isn’t just blowing smoke. But then, we knew that already. In his review of the European-spec Cruze, TTAC’s Martin Schwoerer notes:
In contrast to the engine, the Cruze’s ride and handling are perfectly acceptable in the grand scheme of things.
It’s a line of attack that Ford has been careful to avoid in the US, but Ford Europe is lashing out at GM’s request that European governments help finance the restructuring of its Opel division. Businessweek reports that Ford of Europe’s vice president of government affairs Wolfgang Schneider laid into GM’s request for $2b, saying:
Restructuring your business is your own job and you should pay for it yourself and you should not use taxpayer money. We are definitely against any support for Opel. The Europeans have made the choice that they would use their tax money to sustain companies and business and to sustain capacity levels that from an economical point of view are not sustainable. We do not believe that governments will be able to continue that policy forever. Governments run out of money, as well.
Smackdown! Now, why hasn’t Mulally been saying the same thing for the last two years?
With weeks of recall coverage and with Lexus’s GX460 snagging a rare Consumer Reports “do not buy” warning, you’d think that at least one of CR’s recent “worst-made cars on the road” [via Forbes] would be made by Toyota. But you’d be wrong. Dodge Nitro, Jeep Wrangler, and Ford F-250 join four GM products (Cadillac Escalade, Chevy Aveo, Chevy Colorado and GMC Canyon) as the seven worst cars CR could come up with. And though this hometown sweep for Detroit goes a long way from separating facts from fiction, it’s nowhere near as instructive as the responses from each of the Detroit automakers to the charge of making crap vehicles. Let’s take a look, shall we? (Read More…)
According to the latest Rasmussen telephone polling [via The Financial], 48 percent of Americans believe that the government’s ownership stake in GM and Chrysler means it has a conflict of interest in regulating competing automakers. 25 percent disagree, saying that the government’s bailout doesn’t affect regulation, and another 26 percent aren’t sure. When it comes to recent criticism of Toyota by administration officials like Transportation Secretary Ray LaHood, only 25 percent believe the criticism stems from a desire to help GM, while 38 percent disagree and 37 percent aren’t sure. But the polls most interesting results have nothing to do with politics, and everything to do with perception:
Despite Toyota’s major safety recalls, owners of its cars are still more loyal than those who drive cars made by the bailed-out GM. Sixty-four percent (64%) of Americans who currently own a Toyota say they are at least somewhat likely to buy their next car from the troubled automaker, compared to 57% of GM drivers who say they are at least somewhat likely to buy their next car from GM.
HUMMER fans have a new champion in Illinois Senator Roland Burris, who has agreed to investigate GM’s shutdown of the SUV brand according to Hummerguy.net. Attempts to keep the HUMMER brand alive are being fielded by Capital & Labor International Coalition, a recently-founded fund management firm created by Thane Ritchie, founder of Ritchie Capital Management, as well as failed HUMMER bidder Raser Technologies and The Electric Motor Corporation. According to Hummerguy,
CLIC is hoping for an “acquisition by coalition,” which would involve cooperation with private capital and U.A.W. resources. Union representatives from both HUMMER production facilities were on hand to hear the plan and are running the idea up the chain of command to the International U.A.W..
Don’t ask Chairman/CEO Ed Whitacre. His only comments so far on GM’s Q1 2010 performance comes from a memo leaked to Reuters, in which he says:
In January, I said we could earn a profit in 2010, if everything falls into place. Our first quarter financial results will show us an important milestone, and I’m pleased to say that I anticipate solid operating results when we report our first quarter financials in May
“Important milestones”? “Solid operating results?” What the hell is Whitacre trying to say? (Read More…)
GM’s newest board member, UCLA Psychology faculty member Cynthia Telles, and her husband, former California Assembly Speaker Robert Hertzberg, addressing the 2000 Democratic convention. Telles has served on the boards of Kaiser Foundation Health Plan and Burlington Northern Santa Fe Railroad (where she served with GM Chairman/CEO Ed Whitacre), as well as several banks. She has no Auto Industry experience, but at least she knows Ed Whitacre and has strong ties to the Democratic party. Or, as Ed Whitacre puts it in GM’s official release:
The addition of Dr. Telles to GM’s board of directors ensures that the company will continue to benefit from a diversity of perspectives and experience in our mission to provide consumers with the world’s best vehicles
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