GM may delay Cruze and Malibu
Click above for a high-res gallery of the 2010 2011 Chevrolet Cruze
As General Motors burns through $1 billion in cash each month, the automaker's belt-tightening continues unabated, spanning the spectrum from lay-offs to shutting down the escalators at the RenCen. Naturally, its products aren't immune from the cash-strapped hatchet.
First came word that the CTS Coupe and Buick Lacrosse debuts have been delayed, and now BusinessWeek reports that the Cruze's launch has been put off by a year, now set to hit dealers in 2011. Additionally, the next generation Malibu won't be out until 2013 – six months after it was due to arrive.
GM spokesperson Dee Allen wouldn't get into specifics, only saying that new-car programs "are going to shift around a bit."
The General's decision to put off development of certain projects isn't surprising considering the automaker's current predicaments (that's putting it lightly), and it's more a move to limit costs as 2008 draws to a close, saving money for 2009, what will surely be GM's make-or-break year.
Gallery: 2011 Chevy Cruze
Gallery: 2010 Chevy Cruze - live shots
[Source: BusinessWeek via eGMCarTech]
Reader Comments (Page 1 of 2)
BigWill 7:37AM (10/27/2008)
At this rate I wonder whether GM will have enough money to pull off the Volt - and that's assuming GM is still around as we know it in 2010.
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Allan 8:39AM (10/27/2008)
But... but... the Volt is supposed to be their savior... right?
Srsly, what the hell is going on over there? If they're going to "shift things around a bit" wouldn't they want at least the Cruze to come out SOONER?
JohnJones 7:55AM (10/27/2008)
GMInside News confirmed that the Cruze won't be delayed for the American market.
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eb110americana 3:04PM (10/27/2008)
What he said, see here:
http://www.wfmj.com/Global/story.asp?S=9240449
http://www.gminsidenews.com/forums/f13/gm-denies-cruze-delays-gmi-confirms-no-delay-70690/
This rumor is so old, it's already come and gone (at least in respect to Cruze). Malibu just came out this year, so being replaced in 2013 would make it a 5 year model run which is quite reasonable, especially if they do a mid-cycle refresh.
henrykrinkle 8:34AM (10/27/2008)
How long before paychecks start getting delayed?
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Gabagool 8:37AM (10/27/2008)
Doomed to fail just like Astra. According to GM it will be priced 2K above Civic and Corolla.
Also according to Motor Trend Cruze will be bigger than Cobalt and will be one of the largest cars in its segment, so there goes the fuel economy (compared to other cars in the segment)
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P.V. 5:36PM (10/27/2008)
Not necessarily. If it uses an updated Cobalt XFE engine with slightly more power/torque without compromising fuel economy (or, better yet, improving it), higher fuel economy + larger size = winner in my book.
Robert 8:38AM (10/27/2008)
I can't understand at all why GM would delay the launch of the Cruze. Every expert seems to admit that it's the lack of a desirable product that's holding back GM's restructuring efforts and leading to more loss of market share. So we have to put up with the Cobalt for 3 more years? Does GM not think that within that time, there won't be a new Honda Civic, or Ford Fiesta, or VW Golf released? The engineering on the Cruise is done, and the design is finalized now. If they wait 3 years, the Cruze will just look OLD when compared to whatever Honda Civic comes out next.
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Gabagool 8:48AM (10/27/2008)
I think Fiesta will be here late in 2009, and Civic in 2011 so Civic and Cruze should go head to head. That won't be pretty for GM.
WVogt 9:06AM (10/27/2008)
You didn't mention the new Mazda 3 with 2.5-liter 4 and 6-speed transmission that will boost fuel economy. GM has always been short-sighted when it comes to small cars...and apparently they haven't gotten that fixed yet. Amazing.
Gabagool 9:21AM (10/27/2008)
And the new Sentra, and Kia Forte, maybe even Chrysler will come up with something. The competition will be there, but will GM.
Tim 9:51AM (10/27/2008)
Uh, 2011 model year is 2 years off, not 3. If its an early 2011 model year release, then you will see it in 1.5 years. Really, its not that far off. Do the math before you post.
Judy Zik 10:16AM (10/27/2008)
It is a bit short sighted. The Malibu redesign probably isn't that bad a thing because the current one is competitive. But the Cruze is a desperately needed replacement for a dog of a car (Cobalt) in what is going to be the most competitive segment soon. This is the segment that is growing while everything else is in the toilet. This is where GM could begin to turn the tide on their sales with a hot car.
They should have bit the bullet and delayed the Volt. They are not going to make any money off it and the last thing a desperate company needs is a money losing halo vehicle.
Brandon 8:56AM (10/27/2008)
VW will have the mkVI Rabbit TDI here by fall 2009 getting mid 40s on the highway. By 2011 VW will have the Jetta replacement being built in Tennessee also getting mid 40s on the highway. The mkVI VWs will be cheaper to build than the current ones. With those 2 cars, the Fiesta, next gen Focus, Civic, and Insight here the Cruze will again be just a catch up product when it could be released today and be the benchmark. GM deserves everything they get.
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Gabagool 8:59AM (10/27/2008)
You see that is the point, right now 40 MPG on highway which Cruze should get would propel it to the top. NOW Cruze could easily put some cars out of business, cars like Focus, and Cruze could give Civic and Corolla a big headache.
But 3 years from now it will be what Cobalt is today. A car that you buy if you can not afford the real deal.
MoonRover 9:31AM (10/27/2008)
This story is not true, it has been debunked by GMInsiders. They Called to check the facts and were told the Cruze would come to the US as planned. Business week is wrong and this would not be the first time for them, they are good at running a story before thoroughly checking the facts. Then they find out the story is not true but rumor.
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MoonRover 9:41AM (10/27/2008)
Another source checked the story, false.
http://www.wfmj.com/Global/story.asp?S=9240449
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Bman 11:03AM (10/27/2008)
Just gotta have that random strip of chrome on the trunk or it can't be a GM!
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Bluestreak 11:18AM (10/27/2008)
With all of the excellent choices already out there that will compete with the Cruze, I see it struggling to find a place in the driveway of anyone other than the bowtie faithful. Neither looks nor price nor drivetrain (taken together or singly) are enough to make this an attractive option to my eyes. The dated Mazda3 looks more appealing, and it's expected to be redone next year.
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Iridium 11:53AM (10/27/2008)
The Cobalt and US Focus are terrible cars but GM and Ford still sell millions of them. The Cruze just has to be ok for it to sell. There are a lot of people that do not know how superior other cars are in the same class because they have never sat in one. As long as the Cruze is better than the Cobalt all of the faithful will think it is the best car they have ever driven.
I had the unpleasant experience of getting a brand new Cobalt rental. The car had 1200 miles on it and the transmission was bad, the brakes were horrible, and the power windows barely worked. I had to get out of the car and pull up the passenger window with my hands.
I wouldn't pay $6000 for a brand new Cobalt. The engine was actually pretty good but everything else attached to the car felt like it came from 1972.
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