GM COO says no small car for U.S.
While at the Paris Motor Show, General Motors COO Fritz Henderson told Automotive News that GM has no plans for a minicar in the U.S. While Henderson acknowledges the popularity of the Smart mini/city car, he describes it as a phenomenon and doesn't see a strong case for a similar sized minicar for Chevy in the States. His feelings are that American small-car buyers are happier with something like a Cobalt or Aveo instead. What that means for the future of the Beat, Groove or Trax is uncertain, but it doesn't look good from this statement. And with costarring roles in Transformers 2, it seems like not having them in showrooms is just plain stupid. Hopefully AN just got the quote wrong.
[Source: Automotive News, sub. req.]
Reader Comments (Page 1 of 6)
TJ 2:02PM (10/14/2008)
I think we'll get one of them, if not two. Distract and downplay, nothing more.
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henrykrinkle 2:22PM (10/14/2008)
GM downplay something? Have you ever heard of the Volt?
geo.stewart 4:59PM (10/14/2008)
could be. putting the Beat and Groove on the Aveo chassi would be the correct path. With the Cruze moving hte cobalt up a slight bit, a 3 door aveo looking like the beat and a 5 door looking like the Groove would set their books on fire.
Icon149 4:59PM (10/14/2008)
the aveo isn't exactly a large car, and it is horrible, it is ugly souless crap. wrap up the USA federalized aveo in one of these car designs, spiff up the interior and viola, decent econo car for the USA, the pontiac G3 could be the 2 door (beat i think) make a chevy out of one of the other two and the aveo and G3 can go the way of the button shoe. these cars aren't that micro, they have 4 doors. i don't beleive GM has these 3 designs and they release the pontiac G3...
i am a huge GM fan boy... but GM this is stupid... keep producing these concept cars and staying true to the concept. no dumbed down watered down pedestrian versions. polarizing designs sell. and all 3 of these are just great looking cars. even if they have to grow to accomodate us fat 'mericans thats cool, just leave the lines the same.
Kotse 8:07PM (10/14/2008)
"His feelings are that American small-car buyers are happier with something like a Cobalt or Aveo instead..."
Isn't the Aveo small enuff for ya?!...
judd 2:05PM (10/14/2008)
I see they haven't figured it out yet. Oh well. Nice knowing you GM.
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zamafir 2:11PM (10/14/2008)
It should be a fun next couple of months for them, with their market cap so low, need for cash on hand so high, and apparent lack of understanding of the market (yeah, refute that, in business terms, it should be fun given where they are).
Jack Daniels 2:27PM (10/14/2008)
What GM has figured out is not many would buy mini cars. You are one of the few. I you think America will go from large SUV to mini cars in the near future, you are nuts.
alex 2:36PM (10/14/2008)
You idiots don't get it. GM HAS A SERIOUS CASH PROBLEM! Engineering/designing these cars to pass US emissions and safety regulations would take a serious investment of money that GM doesn't have! And before any of you dumbasses makes a ridiculous comment about how they have money for trucks but not small cars, eat your own ass and then take note of this:
midsized SUV development: canceled
fullsize pickup development: on indefinite hold
it doesn't matter how smart an idea it would be to build these cars if GM doesn't have the money to do it!
Polly Prissy Pants 2:40PM (10/14/2008)
Amen Jackie. The profit margins and markets for these cars are so small that there's no way they could ever sell enough to turn a profit in the U.S. Everybody already knows this anyway or we'd have more than we do. GM needs to stick to their bread and butter vehicles if they're going to turn this thing around, not invest in vehicles that will do nothing but surely lose them more money.
AZZO45b 2:46PM (10/14/2008)
alex: I would like to agree with you... however Chrysler has to be in worse shape than GM & they have been developing their electric production concepts.
Thats a lot of engineering & R&D $$$ as well.
arturo 2:49PM (10/14/2008)
@ Alex
you are trying to look smart but I think everyone already knows what you are saying. We autobloggers are really bright.
Travis 3:05PM (10/14/2008)
Alex, it's really, *really* simple: When designing new cars, keep global safety standards in mind. How much more would it cost to develop the Beat or Trax to meet Euro *and* US safety standards?? They're not incompatible with each other, it's just that a little foresight and money need to be spent so that it's done right the first time. The problem is they haven't wanted to spend the small amount of cash upfront to ensure that they can bring vehicles over, and then cry poverty when the market shifts and they're caught flat-footed.
Daniel 3:15PM (10/14/2008)
With incompetent clowns like this running GM and FORD and Chrysler - it is no wonder that the Big Three is well on its way of becoming the Big Zero. Americans don't want small fuel efficient cars? Ford does not offer it's best European products in the U. S.? Chrysler doesn't have a clue?
How could the leadership of these companies be this bad?
judd 3:46PM (10/14/2008)
Yeah. No one in the US wants small vehicles. That's why it was so easy to buy a fit, right? The real problem they had was they had the accounting department designing their cars (no offense to accountants). Stop using cheap stuff and get it right the first time or Hyundai will own you, soon.
Andrew L 4:25PM (10/14/2008)
I actually cannot believe that you GM fanboys are defending this move. When they debuted these cars didn't they let AMERICA vote on which one they wanted, didn't AMERICA sound interested. If I remember these were supposed to come here and now they they aren't its a great move by GM because they would lose money on them anyway. I bet if GM canceled the Cruze and kept the Cobalt around you guys would say that was a smart move as well...
alex 5:09PM (10/14/2008)
@AZZO45b well GM has also invested tons of money into the volt, hybrids, etc and chrysler doesn't even have a player in the aveo/fit/yaris segment let alone the micro car segment. so I don't see your point.
@ arturo if everyone is smart enough to realize this then why do people act as if GM simply doesn't want to sell these cars instead of realizing that they simply can't due to lack of resources
@ travis it's probably harder than you think to make a car perform well in both US and Euro crash tests, but you're right it would have been smart to make the car built for both from the beginning. however, the time for that has come and gone. you argue that they should have seen this coming... well yeah you can say that they should have seen americans moving towards smaller cars, but i don't think you can argue that they should have seen the credit markets collapse which is what is causing their shortage of cash
anyway, i'm not trying to be a GM apologist. I'm just stating that GM is not ignoring the market and choosing not to bring these small cars here. It's that they can't. Getting critical with GM for not bringing these cars here is like getting pissy with grandpa for not tossing around the football with you. it's not that he doesn't want to... it's that the old man can't get his old bones out of bed to do it.
GOT 7:11AM (10/15/2008)
@alex: Not to state the obvious, but GM ALREADY builds a small car, the Aveo, and it an ugly POS! Why can't they build a great looking small car like the Beat, Groove or Trax??? It can't cost much more to build a great looking car verses a visual-pile-of-crap like the Aveo (and most of the GM fleet for that matter).
GM already has the great design. They already have the small-car platform (Aveo). Put the cool car body on the Aveo platform! How hard can it be?
As for the Beat, Groove or Trax: Fantastic designs in the hands of committee and board-room idiots = concepts forever.
Racer01 2:06PM (10/14/2008)
If this statement by GM is true I don't want any of my tax money wasted on these short sighted idiots. The US would eat these cars up faster than they could be built.
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Geeky1 3:14PM (10/14/2008)
Just like they've been eating up the Smart, right?
I've seen three of those things around here, and I live in the style conscious, yuppie paradise that is silicon valley; if the smart was going to sell well anywhere, I'd expect it to be here and L.A., and I'm just not seeing it. I don't see why these would do any better.