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View Full Version : GM hides fuel-efficient small cars and trucks - in Brazil.


xcel
06-18-2006, 11:59 AM
US jobs being wrecked every time an American buys a small car from Honda, Toyota, Suzuki, Nissan, Hyundai or Kia. (http://www.washingtonpost.com/wp-dyn/content/article/2006/05/19/AR2006051900550.html)

Warren Brown - Washington Post - May 21, 2006

http://www.cleanmpg.com/photos/data/501/Chevrolet_Montana_Family.jpg
Chevrolet Montana P/U - 35 mpg highway

INDAIATUBA, Brazil - Some of the best little vehicles made by General Motors Corp. are not sold in its home market, and therein lies one of the biggest misconceptions about the world's biggest car company.

On most North American lists of small cars and trucks, GM products are at the bottom, if they are included at all.

Through its South Korean subsidiary, GM Daewoo Auto and Technology, GM makes the tiny Chevrolet Aveo car available to American consumers. But that hardly makes an impression in a fuel-challenged market where small suddenly is big business and where two of GM's toughest foreign rivals, Toyota Motor Corp. and Honda Motor Co., are winning hearts and minds with little runners such as the Honda Fit, Toyota Yaris, Honda Civic, Toyota Corolla, and small wagons and sport-utility vehicles such as the Toyota Rav-4 and Honda CR-V.

Other Japanese manufacturers, including Nissan Motor Co. Ltd., Suzuki Motor Corp. and Mazda Motor Corp. (controlled by Ford Motor Co.), are cranking up their small-car engines in response to U.S. consumer worry about rising gasoline prices. South Korean car companies, Hyundai Motor Co. and Kia Motors, are increasing their offerings of small vehicles. And Chinese car companies are planning to join their Asian counterparts in America's small-car wars.

In those developments, GM seems invisible, apparently content with its current, albeit endangered, good luck in selling a slew of completely revised, but still gargantuan sport-utility vehicles and pickups. The public impression, at least in North America, is that GM does not care about small vehicles and that the company lacks both the will and the competence to produce them.

That is erroneous. But it's GM's fault.

Specifically, it is the fault of GM's North American marketing department and unions, which, for a variety of reasons and through myriad machinations, have managed to keep highly desirable small GM vehicles out of the U.S. market at a time they are very much needed.

The truth, as evidenced by a sampling of GM do Brasil cars and trucks at the company's Cruz Alta Proving Ground here, is that GM can make small vehicles as well as anyone else. But the company is hampered by a North American marketing belief that American consumers won't buy those models, and by labor politics that prevents the U.S. entry of those little cars and trucks because they are not assembled by the United Auto Workers union.

For the record, that's my take. GM officials are loath to be so blunt, although they know I'm telling the truth. They proffer seemingly palatable excuses, such as the high cost of retrofitting their Brazilian models to comply with U.S. safety and emissions rules.

I reject that argument. I refuse to believe that a GM that could make a huge Chevrolet Tahoe sport-utility vehicle meet stringent U.S. safety and air-quality standards can't do the same thing for the car-based, subcompact Chevrolet Montana pickup truck sold here. It just doesn't wash.

That being the case, I humbly suggest to GM's marketing and union people that they rise above their biases, work out their differences, do whatever has to be done and move quickly to strengthen the company's flimsy North American small-ride lineup by allowing the U.S. import of the following GM do Brasil vehicles:

The Chevrolet Montana Sport pickup truck, preferably equipped with the company's splendid 1.8-liter, four-cylinder FlexPower engine, which means it can run on a mixture of 20 percent ethanol and 80 percent gasoline, 100 percent ethanol or gasoline alone.

The FlexPower engine effectively allows consumers to play the fuel market in Brazil, where nearly all of the country's 29,000 filling stations offer an alcohol fuel option. When gasoline prices are high, they can switch to ethanol. When ethanol prices are high, they can switch to gasoline or a combination of gasoline and ethanol.

The Montana is based on GM's subcompact Corsa car. Its 1.8-liter FlexPower engine generates 112 horsepower at 5,600 revolutions per minute and 174 foot-pounds of torque at 2,800 revolutions per minute. But it's a spunky, stable little thing at high speeds. Its five-speed manual shifter works smoothly. With its barely five-foot-long cargo box, it offers urban utility while minimizing urban parking hassles. The interior is one of the best looking I've seen in any small truck. It averages the U.S. equivalent of 35 miles per gallon on the highway.

The Chevrolet Celta, a FlexPower one-liter, four-cylinder subcompact car that is too much of a lightweight for long U.S. highway runs. But it would be perfect for daily suburban-urban commuting. It gets the U.S. equivalent of 40 mpg. You can park it on a dime. It's the perfect car for academic and corporate campuses. The engine generates 70 horsepower at 6,400 revolutions per minute and 86 foot-pounds of torque at 3,200 revolutions per minute. Cute.

The Chevrolet Corsa hatchback and Chevrolet Meriva city wagon, both of which are excellent substitutes for American-style minivans that are anything except "mini" and small-to-mid-size "crossover vehicles" that are minivans pretending to be sport-utility models.

The Meriva and Corsa are straightforward family mobiles, elegant in their overall simplicity, efficient and economical in operation, and beyond sensible in meeting the daily transportation needs of most American motorists and their families.

The Meriva city wagon and Corsa hatchback also come with GM's 1.8-liter, four-cylinder FlexPower engine. They are maneuverable as heck, and they both get a bit more than 30 miles per gallon.

I drove those vehicles and walked away from the GM do Brasil test track wondering aloud how a global car company filled with so many demonstrably talented and intelligent people could do something so dumb as to keep some of the best small vehicles made anywhere out of a market that's clamoring for those models.

It makes no sense. And to anyone offering the counter-argument that bringing in cars from Brazil will undermine GM's U.S. employment and labor-union relationships, I offer the following response:

Those jobs and relationships are being wrecked anyway. They're being wrecked every time an American buys a small car from Honda, Toyota, Suzuki, Nissan, Hyundai or Kia. They're being hurt because of the UAW's failure to win the hearts, minds and dues of workers at those GM rival companies.

The bottom line is that if GM does not give the U.S. market the small vehicles America wants and needs, someone else will. That means a financially struggling GM will lose sales and market share. No company suffering those kinds of losses can offer anyone job security.

Chuck
06-18-2006, 12:16 PM
If Detroit offered a small car with performance close to Honda, I'd seriously consider it, but they have not bothered to do so. :(

It's just that the UAW and Detroit have pretended they can act as though consumers will only buy American, just like the article states.

Do you realize that most trucks and SUVs would incurr a gas guzzler tax if they faced the same standards as cars? Correct me if necessary, but the tax kicks in at 22.5mpg and increases from about $1,000 to $5,000. If the light truck loophole had been at least partially closed, Detroit would be forced to make a better sedan.

I want a reason to buy American - please.

93Hatch
04-17-2008, 03:39 PM
This is an old article, but more relevant now than ever! I like the Meriva.

http://cars.about.com/od/detoursanddiversions/ig/American-world-cars/Chevrolet-Meriva.htm

bestmapman
04-17-2008, 04:02 PM
http://www.cleanmpg.com/photos/data/501/Chevrolet_Montana_Family.jpg
Chevrolet Montana P/U - 35 mpg highway

WOW 35 MPG highway. With a little aero modding and a aerotopper. That could be well over 40 MPH highway.

phoebeisis
04-17-2008, 04:10 PM
Heck-GM make a mini type minivan-the Zafira I think-that gets 40-45 mpg on the highway with their TDI motor.It is roughly the size as a Mazda 5(a nice car)-about 184"- I think-shorter than the 190" Accord and Camry;roughly 9' longer than a Prius.

It would be a perfect USA roadtrip vehicle.It is a Euro car-Vauxall-(mis-spelled) is the GM owned maker of the Zafira

Thanks,
Charlie

rweatherford
04-17-2008, 08:38 PM
Yep the Zafira is pretty good, just not here so Mazda got my business and may from now on.

phoebeisis
04-17-2008, 09:45 PM
Rex,
I like the Mazda 5.One of the local dealers used to advertise a base model for $15,850.Now I noticed that the 2008 is advertised for $17,500(base model).

What sort of actual MPG does it get a 65mpg with the CC on? I'm wondering what sort of interstate trip mpg I could expect. I think it is EPA at 24-29 or so?

Thanks,
Charlie

GreenBlues
04-18-2008, 09:33 AM
Cute pick up. Seems that is just what would be need for most city folks to haul the bag of lawn herbicide back from the store.

Does anyone know the exact wording of the UAW contract on small cars? I can see them wanting to limit imports. But this article comes close to implying that the UAW is against producing small vehicles. After the recent reductions in labor costs in the new contract, is GM whining about labor just another case of GM whining. (I hate whiners.) Especially with the new starting wages, what I have heard that some of the foreign owned plants pay very close to what GM does. They want to keep union organizing to a minimum.

"The Chevrolet Celta. It's the perfect car for academic and corporate campuses." No Warren, NEVs are perfect for that application. Why would you need to burn any kind of fuel in a campus environment?

phoebeisis
04-18-2008, 09:48 AM
I'm pretty sure that GM is still at a huge labor cost disadvantage relative to the "foreign" plants in the USA. You are probably right about them-Toyota,Nissan,Honda, paying wages close to GMs-in the hope of keeping unions out.Their-foreign in USA- main advantage is in "benefits" and pensions.The foreign plants have almost no vested retirees-they haven't been here long enough.GM has 100,000's of retirees.Yes,those retirees should be getting paid from fully funded pension funds.Fully-legally-funded but the funds apparently aren't adequately funded.GM's usual explanation for this underfunding is that medical costs rose more quickly than they anticipated.This explanation lets them completely off the hook-you can't say,"you should have anticipated the increase in the increase in healthcare." Well,who knows; my position is ,"so what,this milk is spilled." It would be nice for your managers to have been punished-less $$ handed out-for this screwup, but too late for that.

Bottom line is that GM is still at a labor cost disadvantage,despite wages being close to foreign plant wages.

The UAW and GM are working to correct this-in general by paying new hires a lot less than current workers.

The foreign plants also have younger workers that use less health care.

GM has to hit a home run with the VOLT!!

Charlie

93Hatch
04-18-2008, 10:51 AM
I'm pretty sure that GM is still at a huge labor cost disadvantage relative to the "foreign" plants in the USA. You are probably right about them-Toyota,Nissan,Honda, paying wages close to GMs-in the hope of keeping unions out.Their-foreign in USA- main advantage is in "benefits" and pensions.The foreign plants have almost no vested retirees-they haven't been here long enough.GM has 100,000's of retirees.Yes,those retirees should be getting paid from fully funded pension funds.Fully-legally-funded but the funds apparently aren't adequately funded.GM's usual explanation for this underfunding is that medical costs rose more quickly than they anticipated.This explanation lets them completely off the hook-you can't say,"you should have anticipated the increase in the increase in healthcare." Well,who knows; my position is ,"so what,this milk is spilled." It would be nice for your managers to have been punished-less $$ handed out-for this screwup, but too late for that.

Bottom line is that GM is still at a labor cost disadvantage,despite wages being close to foreign plant wages.

The UAW and GM are working to correct this-in general by paying new hires a lot less than current workers.

The foreign plants also have younger workers that use less health care.

GM has to hit a home run with the VOLT!!

Charlie

The bottom line is that current small GM cars in the US suck. But they make good ones in Brazil. Why not make them in Brazil and bring them here?

If they don't then Honda and Toyota will continue to bury them.

bestmapman
04-18-2008, 11:08 AM
It's hard to have sympathy for GM when you find out they are building nice small cars in Brazil and won't/haven't sell/sold them here.

phoebeisis
04-18-2008, 11:28 AM
93HATCH-Bestmapman,
There isn't any mention of what these cars/trucks sell for in Brazil, is there? I know that in Europe they pay waaaaay more than we do for the same cars,and with the devalued dollar, it is even more.

Maybe Brazilian prices are waaay high also?

It is always dollars and cents and union issues with GM. They stuck with the 1/2 ton SUVs and pickups because they made money on then, and always claimed they couldn't make money selling or making smaller vehicles here in the USA??

I just don't know the answer.GM does have a lot of overhead.The VOLT has to succeed.It has to be a no more than ~$36000 small car with spectacular FE to "beat" the Prius family.The Congress better give big TC just like it did for the Prius- but higher-$4000 or so.
Charlie



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