General Motors North America President Mark Reuss is perhaps the highest-ranking executive within the company that looks out for us enthusiasts. Problem is, enthusiasts are a vocal crowd, they’re dwarfed by Joe Camry and the rest of his boring and tasteless friends who view their cars like they do their refrigerators, with driving abilities being equally awful. Despite their dull ways, GM and the rest of the auto industry tend to answer Joe Camry’s calls more than anybody elses, because they bring in the money. Bean counters love money.
What they don’t love, is a business case based on passion — which can’t be added to the bottom line of a balance sheet. That being the case, Reuss and company have an uphill battle to get approval of a small, rear-wheel-drive and affordable Chevrolet vehicle — what many relate to as something along the lines of the Code 130R. Reuss has been successful of late, with such enthusiast-focused products as the 2014 Chevy SS and 2014 Camaro Z/28. It’s very likely that GM has the Zeta architecture underpinning both vehicles already paid for, but something like the Code 130R is more of a challenge.
The problems, which Jalopnik recently laid out, are nothing that we haven’t outlined here before: GM’s Alpha platform can’t really shrink any more than what we see with the Cadillac ATS, making it a bit too big for the proposed vehicle. There’s also the fact that the next-generation Camaro will dowsize and lose some weight, and would therefore perhaps encroach on where the Code 130R-esque vehicle would exist.
This, seemingly, means that a little RWD car would have to require its own architecture, and therefore a lot more money than perhaps the finance guys would want to see put into the project. Adding a platform also seems to go against GM’s plans to halve its amount of current platforms by 2018.
Considering its niche attraction, the model would also need to have appeal globally, thereby allowing GM to leverage high economies of scale.
On Twitter, Reuss addressed Jalopnik’s Matt Hardigree, saying he needs some “creative on how to do it.” That being the case, the GMA community should assist, and sound off…
…Go.
Comments
A smaller platforms lines up Cadillac to make a 1 Series competitor. Opel and Holden could benefit too. Holden is seemingly the ones who will develop the platform anyways.
Build it on Cruze’s architecture? My guess with that though is there might be an issue with implementing RWD on a platform mainly designed for eco boxes.
Croze’s platform isn’t rwd. And it isn’t light enough. Even if it were both of those thing, it still isn’t really good enough to make a worth while sports car.
Everyone is looking at the code 130r as a new vehhicle. Think differently. Remember when the camaro was that car? Affordable? Fun? Desirable? The dawn of the next gen camaro is nearing. This concept was to test the idea of having a lower power affordable coupe. The camaro will be that. Think global.
Base 6th Gen: 2.0T: 18,999-23,999 290 horse
Base 6th Gen w/ 3.6 option: 22999-28999 340 horse
RS 6th gen: 26999-32999 3.6 v6 or 5.3 v8 option 340-390 horse
SS 6th gen: 29999-47999 w/ 6.2 standard and 1le option 440 horse
ZL1 6th gen: 51999-59999 6.2 sc standard 615 horse
Mark has already stated how they would do this car. Yes Alpha is too large so he said they would use a Sub Alpha platform, in other words a new smaller platform.
To pay for this they need to make a business case for not just this car but 2-3 others and make it a global platform.
Doing it as a Chevy would be easy as it would be shared with Holden and Chevys global fleet. If they could use it as a Opel there would be some appeal in Europe for a small RWD too and it would then also be shared as a Buick here and in China.
Also in time this platform could be designed and built for future use as a Camaro etc as the size of car shrink as it could be the way forward to save RWD in the future as they will still have to cut more weight.
As it is a small coupe would be lower in volume in GM’s line up as it will never be a volume car like the Cruze. But what else this car can or could be is what will be needed to win the business case when presented.
Just how many cars can we make from this with out duplication with in the company and what would they challenge in the global market This and other questions need to be answered. GM is being careful with the Alpha not to step on its own toes here and this car need to do the same.
I would love to see them make a small Jeep like vehicle from this for GMC. A small Hummer Jeep like vehicle.
Think with a open mind as there are many things they could do and just what ones would present the most profit potential. This is how we need to think on this now as that is what GM is doing and what Mark has to present.
There is no business case for any new platform and Zeta needs to be retired. G M already has too many platforms, and will still have too many once Gamma, Delta and Zeta are retired.
The car part of Gmt only needs the new Delta/Gamma, Epsilon 2 (short and long), Alpha and new Omega plus what they use for Vette.
The only option is to partner with another auto maker and outsource production. Partnerships are great for low volume cars and G M should be working more with others.
G M needs mod platforms like VW but in the short term can shave costs by getting even more strict than One Ford.
Joe Camery is correct from a profit and margin perspective and this is where the company is weakest
OK, this is stepping back in time, but what platform were the Solstice and the Sky built on? A Sky Redline with the GM boost kit made 300 hp. They made a Solstice hardtop right before they killed the brand. Seems to me you could do the small RWD car with already engineered components pretty inexpensively. Of course this doesn’t contribute to halving the number of chassis goal.
You have several problems here.
Many of the parts other than the engine were from vehicles they no longer build or have in productions like the old 1st gen CTS and would have to be retooled to be brought back. That being the case you may as well do a new unit.
Second the Kappa was a parts bin car much like the Fiero. The limited budget presented many compromises. Granted they did a better job than the Fiero but it still could and today should be a better car with more funding.
Note the Kappa platform due to the lack of funding was limited on adaptability and growth. GM did not have money at this time and did the best they could with what they had. They did a nice job but left a lot on the table.
The original plan was to make the adaptable for a small wagon and even a small Hummer but the end result was a car that could be nothing more than it was.
Besides today the Kappa would be a 10 year old design as it was started 10 years ago . That would not wash with todays market. If word came out GM was bringing out a 10 year old design imagine the out cry from the public and the image damage.
If you want to have fun look around the Solstice and see if you guess where many of the parts came from. I recall the First gen CTS, GP, HHR/Cobalt. Trailblazer/Envoy etc.
Complaints about the lack of trunk were do to cost savings by using what they had and saving money on design. If the engineers had more time and money it would have been fixed.
I think you would be better off taking the Alpha and resizing many of the parts into a new platform. While it would not be an Alpha it could easily supply the many in production parts. Weight savings has already been a factor etc. But then again GM I think is looking to do it right and make a dedicated platform to where it will be right and not a compromise like past efforts.
Anyone who has driven the new Alpha can see and feel the results of a properly done platform. GM today can afford to do it right and it will take so little more time to do so.
This is a 4-5 year deal no matter how you do it.
The real factor is they need to finish fixing Buick and Cadillac as this is where most of the car profits will come from. Luxury and near luxury cars provide most of the Auto profits while Chevys mostly comes from the Truck and Cruze.
Sorry but sometimes the business of making a profit gets in the way.
If you look to Toyota on their new coupe it is nice and selling well but is far from a profit center for the company. It provides good income but not like the others like a boring Camry, GM still has a lot of work to do in their comeback and they are well on their way. The gaps will be filled in time but the real work needs to be done first too. The better business case they make the better chance this has to being done.
This is a time to think like a business man and not a enthusiast. I hate to say that but you need both. If not you end up with a brief case coke in FBI photo’s to keep your dream alive. Just read Lutz book as he addresses that money people are a necessary evil. .
Solstice and Sky were on the Kappa, and the Kappa II platform was in development but got scrapped with the bankruptcy. I’ve said ever since then that the Sky should’ve lived on after Saturn as a Chevy.
Once again GM management has to play catch up to Toyota with their FRS. I remember a time when GM led the market. Anyway, they need to make a RWD car that is larger than the FRS, which is dinky. I’d call it a Chevelle, but it needs to look like one. Square it off a bit in styling so it appears larger, like the current Camaro or the Malibu. NOT boxy though like the tired Scion. Those jelly-bean fin mobiles all look like an old Ford Probe or a Hyundai Genesis.
Something like this rendering:
http://artandcolour.blogspot.com/2010/09/im-seeing-red-today.html
I know this is a Cruze concepet, but it works.
Or, a SUPER COOL Nomad “wagon”. The practicality of a PT Cruiser without the ugly:
https://lh6.googleusercontent.com/-9eWxQnsxuqI/TYKq9fvmbiI/AAAAAAAAAng/4I_PzKkgOWA/s1600/Chevrolet_Nomad_Concept-7-vi.jpg
Doesn’t the Buick Encore have AWD so base it off that eco (spark) platform
AWD doesnt = RWD. It is a FWD platform that can transfer power to the rear. This isn’t about having just a rwd platform. This platform needs to be light, stiff, flexible; GM is looking to make a sports car, not a small Cruze coupe
while I like the idea, I think gm has too many holes in it’s lineup to take on this project. chevy already has enough halo cars in the camaro, corvette, and ss. I’d rather them add 2 door versions of either / both the sonic and cruze to attract more younger buyers. Unique styling would be key similar to what was done with the cts.
In order for this to work, the next Camaro CANNOT shrink very much
The new car is a 2 seater only (I believe the code concept is 4 seat), has around 215 HP for the base, and has beautiful driving dynamics. The car has to be the Camaro’s evil twin. Different demographics, different architecture, different engines, different sizes. The similarities are the prices. At all performance levels, the two should start within $1000 of each other.
A good all-new car steals buyers from other companies and markets, and does not take buyers from within the company.
A 2+2 based off a new GMC Ute that could be utilized globally or like I said before get creative with the Sonic Spark Encore
Scott and Andrew, completely agree with your comments… Bring on a Kappa 2, make this a global platform for a range of vehicles… How sweet it could be…
Love the bit on bean counters we all love to hate them lol, with there MPV’s & SUV’s & spending all the profit on loss making no demand hybrids, yes it would be nice to have a range of V6, V8 and performance and nothing else but unfortunately in the real world a compromises are needed to balance the books & keep customers interested & buying hence a excellent range covering many sizes, budgets & markets along with V6, V8 & performance 😀
Look at all the people here saying to use the Delta(II) or Gamma platform.. *ahem, bean counters*.. we are surrounded by them in this very blog
A nice VX220/Speedster etc replacement would be great it’s a fine balance of balancing books for future survival and keeping the range exciting for future survival (too many MPVs for example isn’t good) a excellent range is a must.
I didn’t buy my 2008 Solstice to impress people. I bought it because one of my 1st cars, in between 2 years of Nam tours, was a used MGB. It was my favorite car.
Retiring a few years ago, I treated myself to a used Solstice that had 7000 miles on it. I never had a car that has had as many compliments and questions about the car, like the Solstice.
Manufacturers don’t make much money on halo cars like the Solstice, but the vehicles draw people, of all backgrounds to the show rooms and car lots. GM never advertised the Solstice or the sky, or my wife’s car, the G6 hardtop convertible. But the cars draw people to them, and surprise that they were GM vehicles.
GM doesn’t have to do anything other than slap a Chevrolet emblem on rejuvenated Solstices, made on the same machinery that made the cars for Pontiac… if the machinery still exists. It would be a shame if it doesn’t.
Good article.
The sports car market (2 seater MG types) seems to be a market most firms tend to avoid (Mazda started the ball rolling again) its not a marketplace I would buy from (maybe if I was single/no kids or maybe when I retire, but not now) the VX220/Speedster was Lotus based & in my opinion given what little demand there is (although there is demand) GM would be better placed buying up a small sports car firm & putting whatever GM badge on it. The other option is to work alongside a sports car firm and produce joint models like original VX220/Elise.
Very true ^^ it has to be a raw out & out 2seater RWD mid engined sports car that handles & drives well. Not purchased to show off to others but to please its driver, to be used for track days or just a romantic drive in the country with twisty roads & a lady. Not a large market true, but like everything else if done right sales are there (as proved by Mazda, even if this in my opinion is a little too watered down). A little dinky RWD mid engined 2 seater open top sports car should (like a muscle car should) get all enthusiasts excited.
Kappa Platform (extended for 2+2 seating, Solstice coupe similarities maybe) or any platform that would allow for a small RWD coupe and Kappa seems like the only candidate
Family I Gen III A16LES TwinPort or Family II Ecotec Gen III LTG or Family II Ecotec Gen II LDK/LHU (E85 maybe?)
6 speed maunal or 6 speed automatic
LSD
Lightweight is key
Keep it simple
Honestly, not sure about Chevy having a small RWD coupe under the Camaro since the Camaro is shrinking in size anyways, but maybe a small RWD coupe could work as a Buick since Buick seems to be getting all the Vauxhall/Opel rebadged cars. A V6 Camaro starts at around $24k MSRP, so if Chevy did do a small RWD car they would most likely have to price it under that, so the car probably wouldn’t have that great of an engine or parts. Buick on the other hand does not have a coupe, but they could benefit from a $25k MSRP RWD coupe.
Standard and Premium Trim packages (Premium having leather, touchscreen, Bose, Power seat, push button start, etc.)
101 inch wheelbase
2800 lbs
think Opel GT resurrection
let me know what you think…
Riviera Concept
@Marshyd1589 on Jalopnik eh!
lol you and I are ctrl+c : ctrl+v between Jalopnik and here
The list of potential models is desirable in terms of desire/want & sales/profit/balancing books a platform that is RWD and could be adapted for front or mid engine gives GM a Vauxhall/Opel/Buick/Chevy/Holden/Cadillac sports car with differing body shapes plus the potential of a small 1 series rival for any of the above company’s (Astra 3dr shooting brake, Cadillac 3/5dr for examples).
It’s easy.
GM only needs to bring Pontiac back!
Chevy would be here to sell tons of cars while Pontiac could offer RWD cars. I think there’s enough market for Pontiac and I wouldnt mind if I had to pay a little bit more for one. Pontiac wasn’t meant to be the best selling brand. It was all about passion.
Pontiac although its a shame it went cannot return, how/where would they get a full range from. Also Pontiac was traditionally the entry level brand below Chevy so couldn’t be seen as more desirable as its costlier brand. Pontiac being made more expensive than Chevy would put it competing with Buick, again not ideal. Sorry to see Pontiac gone but GM has enough with Chevy, Buick & Caddy.
Price doesnt drive competition, necessarily. Buick is soft-luxury, a return of Pontiac would see rwd performance-sports oriented cars (or fwd Astra VXR)
As for a lineup:
-SS sedan = new G8
-Astra VXR 3-door
-Firebird 3.6TT as well as a TransAM a la Camaro Z/28
-this little 2+2 coupe we are talking about
-Zeta based sport truck (Holden UTE)
That’s a solid low volume line up right there. Just like old Pontiac though, it wouldn’t make a lot of money, hence them gone and Buick still with us.
Why doesn’t GM bring back the Nova for Chevy, and the platform could be shared with Buick,Opel,Cadillac and Holden as small RWD car and for the AWD a Cruze 3 dors could be a hot car.
Bring back the VEGA. Yes and make it brutal 😉
Andrew ^^ it’s a possibility I suppose Pontiac sold the Monaro as the GTO & the VXR8 / Commodore as G8, and judging by comments people in US want the Astra VXR as a Buick/Chevy/Opel model.
Its clear something is brewing, GM definately needs to solidify its brands with strong everyday vehicles across chevy and buick while building the brand image that anyone would desire vehicles from any of their brands, And then there is the fun vehicles that provide a alternative view of the brand one of uniqueness where people really begin to see GM as a company that thinks outside of the box and builds vehicles that dont just dont cater to the status que… To me the Solstice and Sky really spoke to the heritage of GM, a car company that yes produces cars but also produces exciting unique vehicles that people can aspire to… Probably litteraly why most of us are GM fans… At the core we think back to the heritage, we think of the early Camaros, or we see a restored Chevelle that blows us away and we wish we could have one. I remember jetting sround in my buddies restored 70 LeMans where you could feel the power through the vehicle… As GM builds on the future it needs to think about sustained brand image so my 4 year old can look back and say ya I remember that 2016 Chevy “whatever” and how awsome it was, I want to buy a new 2033 Chevy “whatever”. Here is a great example as of right now if I had to recommend say an affordable used GM product to a 16 to 20 something person what would I recommend. Maybe a Cobalt or Saturn Ion maybe an SS package or Redline for these two vehicles… Ok maybe a G6. There is litterally nothing outside of these vehicles that a young person can aspire to or would have any interest in that has been built in the last say 8 years. GM needs to recognize how there cars are percieved in the used car market as well. We all know kids get the hand me down beater, but still they want to aspire to that cool car their rich friend dad bought used.., Another point, in the late 80’s early 90’s you had so many options for cool fun cars the Celice, Supra, Iroc-Z, 240z, I could go on and on… Point is car companies including GM have to have vehicles that youth aspire to this builds long term brand sustainability… If a 16 to 20 something cant find something they want in an automaker then why would they aspire to buy a higher price point or new vehicle from that brand in the future.
Many good points for sure. At the end,you mention about younger people aspiring to have a cool car. I think GM has a number of aspirational vehicles that younger car folks desire, Corvette, Camaro ZL1, CTS-V to name just a few. Problem is they are so far beyond the financial reach of these buyers, they must settle for something more affordable? Base Camaro? Maybe? But really GM does not have
a vehicle in the hot hatch, pocket rocket or sport compact category any longer? Nothing coming soon, not next month or next year? They talk about, they show concept cars, they show some interesting ideas at SEMA, but that’s it. Every other major competitor has this segment covered with something? Ford,VW, Toyota/Scion, Mazda, Honda all have choices. Is Honda counting on sales of the Civic Si to make it’s bottom line look good? Certainly not, but it may bring not just a customer to the brand, but an enthusiast customer that places importance on what they drive.
If I had to guess for many the Solstice and Sky were a second or third car purchase outside of the family or traditional vehicles they allready owned. Thus bringing non traditional buyers into GM dealerships… As the brands solidify vehicles like this will bring people in that may not even know about say the new Impala or Malibu…
AFAIK there is NO GM small RWD car chassis to base this on. And I don’t consider the Chassis that the Sky ertc was based on as being right for the job. Even in 2009….
If I had my way, every car in GM’s portfolio would have rear wheel drive and a small block V8 as at least an option or probly standard. Saddly, I cant have my way because this is the real world. Id love to see the Code come to life in some form or another, one has ask: with the next Camaro becoming smaller, and probly starting at around the same base price ($23,345), is there room underneath the current for future Camaro for an even smaller RWD coupe? I dont think theres enough meat left on the bone for profit and may actually cannibalize sales of lower level Camaros. I really think GM would be better served by offering a level of Camaro one notch lower than what they have the current V6. What GM and Chevy really need isnt a small sub Camaro coupe, but a Cruze coupe or 3 door hatch (read rebadged Opel Astra); a performance version of such a car would slot very nicely below the Camaro. It has the advantages of having global appeal, it can be based on the next generation of Delta (low cost, no new platform needed), and it appeals to a different type of enthusiast which would broaden the interest in the brand and might get more people into the higher performance cars like the Camaro, Corvette, and SS.
I just wanted to add something about a Kappa 2/Solstice/Sky roadster: That car, if made, would make a much better Buick. Think about it, a comfortable, quiet tuned little roadster for elegantly driving down whatever winding road you can find or pulling up to a destination in style and luxury.
LFX323HP, ya honestly I was trying to speak for the crowd in say the $8,000 range, what is there maybe a Cobalt and the theres maybe a 2000 Camaro… A 2000 Grand Prix Coupe maybe a Grand Am Coupe at this point your talkin high mileage vehicles with very dated interiors, even dated at the time and $4 to 5,000 price point… I really have to stretch myself to come up with something… Surely not an Aveo, and the G6 has no brand to back it up… If I am wrong and there are more $8,000 used vehicles that cater to the 16 to say 25 year old let me know. But would any of us recommend the Cobalt or Ion, Uhhh not sure…
OK, understand. I guess I’m thinking of the same type customer, but the next car after the $8K “first” car. Just got their first “real” job, wants to buy their first new car? Wants some performance, gotta’ be fun to drive, wants the latest technology on-board and has to look like it has some “edge” to it? Lastly, the budget stops right about $25K. From my viewpoint, GM stores circa 2013 do not carry such a vehicle.
LFX323HP You nailed it, its startling to think.., And honestly a base 2010 Camaro might get you into that arena you are tlkin bout but not everyone wants one…
Dont forget about size too, though. The ATS has a 109″ wheel base and it is safe to say the 6th gen Camaro will be basically the same and weigh ~3200lbs in base 4-cyl form.
The car we are talking about here is around a 100″ wheel base and 2800lbs. That difference could be as much as half a second faster 0-60mph time with the same engine in each car (2.0T). Plus the shorter wheel base and less weight would make for one nimble car.
@ Ed Mundo.
I couldn’t agree more with your last paragraph Ed. Give Buick the roadster, and I would add… Let the British design it.
I love GM, but Chevrolet has too many cars. A small RWD coupe will not work below the Camaro. GM does need a small affordable RWD coupe though, and that coupe should be a Buick.
Remember the Riviera concept…
Build it with a modified Kappa platform or modified Epsilon II platform or any platform that can be RWD. Keep the wheelclose around 101 inches. Keep the weight around 2800 pounds. Give it a 1.6L turbo 4 cylinder or 2.0L turbo 4 cylinder making between 200 and 270 hp. GM has the engines (Family 1 A16LES DCVCP TwinPort or Family II LDK or Family II LTG). Give it a 6 speed manual gearbox with an optional 6 speed auto with paddle shifters. Have 2 trim levels only (standard and premium). Premium coming with leather, touchscreen radio, moonroof, heated seats, navigation, etc. Price it starting at $25k for the standard and around $28k for the premium.
Sell it as a Buick in the USA and sell it globally as an Opel/Vauxhall.
I see that car being very successful and it would help introduce the Buick brand to younger buyers.
Then Buick needs to take theirs current Regal which is a rebadged Opel/Vauxhall insignia, and they need to build the Regal on the ATS Alpha platform. Make it a proper RWD Regal and then put in the new LF3 V6 Twin Turbo under the hood and bring back the Grand National! I would say keep the Insignia platform if their is room in the lineup for it, but name it something else like Skylark or something new.
The Buick Verano is based off the Opel/Vauxhall Astra, but the Opel/Vauxhall version is much better. Buick should try releasing the Opel/Vauxhall Astra OPC/VXR in the states as the Buick Verano GS or GSX To compete with the ford Focus ST, VW GTI, and Mazdaspeed3.
Buick should use GS or GSX as a sports packages for their cars like Chevrolet’s SS and Pontiac’s GXP.
And you think that luxury cars can’t be sold with FWD? You’re not looking hard enough.
RWD will not make Buick more appealing, nor will reusing tired, old, damaged nameplates that nobody under 35 remembers or cares about.
Only competent products and features will sell Buick. Drivetrains don’t turn the majority of luxury buyers on. The few that do will look at Cadillac and it’s V’s.
???
The first things needed to be addressed here is reality.
Pontiac is dead and not coming back
Kappa is dead and not coming back.
This car is not going to be primary or if at all a 2 seater.
This car will have at best a Turbo 4 and that is all.
Now that we have that out of the way.
There is a slot for a car like this if done properly but it needs to be leveraged out over several brands globally within GM.
The fact is it is not a 200,000 unit vehicle and that is what makes it difficult to approve. They need to find a way to leverage it out like the Alpha as it too is not a high volume car in one single model.
This is not hey let copy Toyota deal here as some would like to make it. This is a Billion Dollar program that needs to be addressed right or it will take years to make back the investment.
Also you need to learn how to address the Gen Y buyers that are targeted which is difficult since so many of them have little to no love for cars. To most of them they are just a way to the Apple Store if the bus does not go there.
Also we need to confront what the Toyota really is. Some stories make it the second coming of the Veyron. The truth is it is not the fastest by any means. It does not have nearly the highest grip on the pad and it stopping is good at best. But what the car has to those who have never driven one is balance. This thing can be drifted easy with the smaller tires and balanced platform. It is just fun to drive.
Fun to drive cheap to buy is the key here. Also what else can you do with this platform to get the investment back.
We will get a car like this at some point because with the way things are going even the Alpha will have to be down sized unless someone in office fixes the CAFE to a realistic level.
But when you think about this platform you need to find a way to sell it in numbers up to 200,000 units per year and make back the money needed to build it. You are not going to do that with just a 2 +2 and a 2 seat car.
This car as to be right as anything less will be just a waste of time and money.
The real issues comes down to this. Do you spend a billion on this car and will you make a profit or is there another product that you invest in and make more money with it? The highest profit line is often the one that wins.
Also what else does GM have coming we have no clue of. How would it affect this line of cars too. There is way too much here we do not know.
Scott, GM could produce a 2+2 or 2 seat car under Chevy,Cadi,Buick,Opel and Holden and under one platform and GM have many engines even if for a 2+2 or 2 seat car(a small coupe) a 1.6 turbo or 2.0/2.4 turbo are sufficient, GM could also produce as an example for Chevrolet the code 130 R as a Nova with its variants and 140 Tru as a small coupe with a same platform, and could produce small coupe or sub-compact luxury sporty cars as an A3 OR serie 1 competitor .
One problem all of the named divisions do not need a 2+2 or a 2 seater.
GM has had great issues of having too many models and too many versions of the same models on the same platform.
Today GM needs to be careful not to offer cars that are too close to the others unless it is in a different market. 9K units a year here, They have only averaged 17K-18K even at that over the life of the car in the US market.
2+2 cars are also a limited market anymore. Even spread out over the entire GM line it would be difficult to sell 10K units globally. The markets have changed and while there are still coupe fans they are like standard shift owners a small part of the market.
I want these cars as much as anyone but they need to find a way to leverage the cost of developing this platform out over many different platforms and different types of cars.
The advantage the Alpha has is it was developed as a Cadillac and the profit margin on these cars are great as is the Camaro. On a smaller car like this the profits get squeezed and it make lower volumes more difficult.
The bottom line is they need to find a model or a version that would sell in great volumes that would help support the whole deal. A small sedan may do it but just what and how remains to be seen. Also how these parts can be used in the down sizing of the fleet as we will see in the next ten years will play a part.
Issues like this keep many auto executive up at night as it is not as simple as many think to build many of these products. There are many other ramifications that get left off the web postings that make this a whole different ball game.
The issue with a cheap two seater is it is not easy to sell in the volume you need for a long period of time. Just look at the MR2 and how it has made several limited short runs. Same with the RX7 as it was very popular but yet still died,
It is easy to make a expensive two seater and make up the profit on price but with a cheaper car the volume is just not there. The Miata is one of the few cheap sports cars that has mustered on but even then Mazda is not making a killing at selling as few as 9K units
Building expensive low volume performance can luxury cars are easy. You have a lot of room or work. Same for the high profit trucks. Now to build anything under $35K it become more and more difficult.
Luxury cars like at Cadillac count for nearly 70% of the profit from the car lines even at the low numbers they sell. Cars like the Sonic and Cruze need large volumes to make up any profit. Same would apply to any small low RWD coupe.
Too few people know the numbers it takes and how difficult it is to do anything in the low range.
Good example today it the Tesla S. It is making money at low volumes with a ok package vs. GM, Nissan and Toyota are struggling to sell a Electric at $25-35K. Musk is not an idiot and knew he had to sell high and create a buzz on the car to make it work. Fiskar failed to create a buzz and dies. Elon has created room profit wise with his car but is years from challenging the others in the low end.
I know It is a different car but the financing issues and profits are similar.
This whole deal will work out at some point. Mark has taken to the public to make his points to the board several times and I think this is one of them. GM is one of the few who could do this kind of deal on their own but the trick will be to get everyone to agree just on what they are going to do.
Right now is the time for making a business case as all new products have to do. A lot of arguing and ideas are tossed out and around and in the end they come to an agreement. With Mark I see they have a lot of trust so far and I suspect this will be the deciding factor. He may not have balls as big as Lutz yet but they are growing.
What Mochevy says…
Wonder if there would be a market for a modern day Firenza droop snoot? A shooting brake Astra hatch sized RWD model, they could even bring back the Firenza name.
Unless GM could build a platform who possess the same architecture like kappa !!