Posted by: David Welch on January 12

It’s hard to find a company in America that took a bigger public beating than General Motors did over the past three months. But with all eyes on the company and how it will make use of the $3.4 billion in government loans it will receive, GM made the best of its place in the fish bowl.
At the Detroit auto show Monday, GM has a trio of Chevy cars (not to mention a decent Buick LaCrosse sedan and Cadilaac SRX suv) that could make a difference. These are the sort of cars the company needs to bring buyers back. While crossover suvs are hot—well, hot as this car market goes—GM has only a few of them on the market. It has been a glaring hole in GM’s business. So the company offered up a Chevrolet Equinox with bold styling to replace the bland and cheap Equinox that sells in showroom right now. The new Equinox comes out this spring.
While GM telegraphed that unveiling, the company surprised the motoring press with a couple future Chevy cars that could also make a difference. The first is the Chevy Spark, a Korean-engineered microcar with Boy Racer looks that will take square aim at Smart. It will give Chevy—known more for its pickups and suvs—a bit of urban street cred. Chevy also showed off a small, seven-passenger crossover called the Orlando. The body has some European flair to it and GM managed to packed three rows of seats on a small frame that will also host the Chevy Cruze compact next year. That’s smart product planning, especially if GM can use some of its small-car factories to make a car that reached a different buyer than the Cruze. Keep those assembly lines busy, boys. The Orlando (pictured above) should also get close to 30 miles per gallon.
The new crossovers should really be a big help. Chevy, one of America’s top-selling brands, sold only 67,000 copies of the Equinox last year. The company did launch the traverse in November, a larger crossover. But the Equinox and Orlando will really shoot for a bigger piece of the crossover market since they are smaller and sell at lower prices. Chevy general manager Ed Peper says the Orlando will replace the retro HHR and target Honda Element and Mazda 5 buyers. In fact, Peper made a rare Joe Namath-like statement about the Orlando’s challenge to the Honda Element: “We’ll kick their ass,” he said.
There is only one problem with the Spark and Orlando. While they seem to have the right combination of styling, fuel economy and value to find buyers, GM needs them now. But we won’t see them until 2011. Better late than never, I guess.
The '73 oil embargo staggered the Big3 as their sales plummeted when consumers turned to the foreign manufactures of small cars with efficient engines. Instead of licking their wounds and learning from their mistakes, the Big3 boast that only the Big3 can manufacture a family sized sedan, full-sized pickup trucks, and American-sized luxury cars. The Japanese can only manufacture econo-boxes, said the arrogant CEO and managers of the Big3. Fast forward 35 years. Not only the Japanese car makers manufacture full size family sedans, full size trucks, and American sized luxury cars but they build them in the backyards of the imminent bankrupt Big3. Today, referring to Honda’s competition, GM's Ed Peper said "We'll kick their ass." After 35 years it is astonishing that Big3 corporate culture has changed so little as to their arrogance and contempt toward foreign car makers, even on the eve of receiving government bailout to stall bankruptcy. To be fair to Jets' QB, there is no comparison between the confidence of Jets' Joe Namath' and arrogance of GM's Ed Peper. The Jets and Joe were already unquestioned champions and earned their right to be in the Super Bowl whereas GM and Ed Peper are on a losing team that fumbled too many games away. To succeed in sports as well as in the auto business, a wise person always respects his competitor. Perhaps, Ed Peper has exposed a fatally flawed, stubborn corporate culture as the reason why the Big3 are on the brink of bankruptcy.
Not so arrogant as that. What is arrogant is Union reps that think America can build the better car and keep sales up when overhead exceeds the competition, outpricing the competition and raising cost per unit. This attack on the consumer at the end of the line adds up to a competetive advantage for offsoil competition. If autoworkers want to increase their salary then buy stock in their company and get ahead as a team player.
Go GM!! Continue to take it to the japs. Accord, Altima, and Camry can't hold up to the Malibu, your Lamda crossovers are "kicking ass!" and I am sure the new Equinox and Cadillac SRX will "kick ass", too. Looking forward to your increased market share as more and more car consumers realize the quality, style, and industry leading mileage of your stable of products!!
I just took a look at the Spark at GM's website. My only question is where is the diesel? Biodiesel make a whole heck of a lot more ecological sense than E85 does. Yes, I want to run my car on my used coffee grinds.
http://www.greenbiz.com/blog/2009/01/06/coffee-could-be-next-biofuel-source
Snoz, you are suffering from a dieseas called "hatred for GM/Detroit" and just like you claimed that the GM/Detroit has not changed in their attitude in the last 35 years, I can also claim that you have not gotten over your dieseas. This dieseas has blindsided you to the progress made my GM and as a result you have projected the the enthusiasm of Ed Piper as arrogance. Please help yourself, drive some of GM vehicles. That will help you stop spitting venom, which hopefully calm your dieseas. May god bless you...
You mean to tell me that that ugly station wagon thing is going to save GM? Time to start the stock shorting.
A good product is only one third of the fomula toward a sucessful money making product. It also needs good execution and good quality, which GM lacks greatly. I will bet that Ed Peper will get his butt kicked.
I agree with Snoz. GM's long-held hubris may be the factor that keeps many of these cars from ever being more than vaporware. Their systemic approach to engineering and design have long been compromised by a lack of foresight by management and misplaced cost-containment strategies by accounting. GM has been able to attract amazing talent, yet they waste much of it with LCD investment in product. Even a "product guy" like Lutz can't reform the system there, and his motorhead ethos looks backwards, not into the future.
Since the company is primarily run by men who don't seem to appreciate the product - or their customer - very much, perhaps they need to begin building locomotives and busses again. Many former customers will be riding in those(instead of new GM passenger vehicles) in the coming years.
Want the straight scoop on the auto industry? Detroit bureau chief David Welch and auto beat veterans David Kiley, Dexter Roberts and Ian Rowley bring daily scoop, keen observations and provocative perspective on the auto business from around the globe. Read their take on such weighty issues as Detroit’s attempt at a comeback, Toyota’s quest for dominance and the search for an efficient car.