Men Free Blog

Car buyers here in the States are clamoring for fuel efficient transportation, but so far the Saturn Astra hasn’t been on the top of buyers lists. The Astra is a smash hit in Europe and we liked it during its short stay in the Autoblog Garage, but it may just be too expensive compared to the competition with a starting price of $16,495. General Motors isn’t keeping the price high to make a profit on the small volume import, either. GM vice chairman and quote master Bob Lutz told Automotive News that the Belgian-made Astra isn’t profitable in the U.S. at all anymore due to the weak value of the Dollar vs. the Euro. The Astra has gone up in price by $500 since its introduction to reflect the broadening gap between the two currencies, and the price hike was implemented only to lessen the hit from the currency exchange. The Astra is not just a financial burden for the General – it isn’t exactly a sales success, either. GM has sold only 7,914 so far this year, which is far below the projected pace of 25,000 annual units. Part of the problem is that few people actually know the Astra exists, and those who do may not want to pay the relatively high price of entry.

GM Vice Chairman Bob “Maximum” Lutz published a new post today on the corporate GM Fastlane Blog that addresses the automaker’s newest concept that debuted recently at Auto China 2008 in Beijing: the Invicta. The concept heavily hints at what the next-generation Buick LaCrosse will look like, but Bob points out that the global architecture underpinning the vehicle will be the basis of new cars for Chevy, Saab, Opel/Vauxhall and more. In the past, we would’ve expected those accompanying models to be rebadged versions with different grilles, headlights and taillights, but Bob explains how GM’s new global platform sharing process is different than the rebadging of old. In a nutshell, he says that the money saved from sharing common platforms see will be put into making everything that customer’s will see - exterior and interior design, specifically - completely different. While it’s great to hear Bob talk about how GM finally “gets it” when it comes to producing common products across an empire of brands, it’s something that other automakers like VW/Audi have been doing for years while the General kept feeding us “triplets” of every model it made. So kudos to GM for finally getting it, but it took ‘em long enough.
[Source: GM ]

The hopes and dreams of electric car aficionados for a purely battery powered successor to the late, lamented EV1 may soon be satisfied. Or not. It all depends on … you guessed it, the battery. However, the latest utterings from Maximum Bob have people buzzing again. Mr. Lutz spoke to EV site PetroZero the other day and intimated that a purely battery-powered variant of the upcoming Volt is a possibility, leaving the range extender on the cutting room floor. This is actually not a new idea and dates back to the earliest dates of the Volt program. During a media briefing back in December 2006 several weeks before the Volt’s public release, the Volt team showed us images like the one above that included several different powertrain configurations. The premise was to demonstrate the flexibility part of E-Flex. This included a variant with a larger battery and no engine to charge it. This pure EV was described as something that could be built if and when the range and more importantly the cost of the battery reaches a point where it could be successful in the market. Ditching the battery. on the other hand, won’t happen because the inefficiencies inherent in transforming from mechanical to electrical to mechanical power without a battery to store regen energy and grid power just wouldn’t make sense.

Finally, the PetroZero article indicates that Lutz will be driving the first Volt prototype within the next week. Lutz’s use of the word prototype rather than mule led the author to believe this was an actual car with Volt bodywork. We checked with GM’s Rob Peterson, who confirmed that such actual prototypes are still many months away and Lutz would actually be driving the Malibu-bodied mule that is now running with a lithium ion pack installed.
Read

GM has seen plenty of tough times over the past few years, and even the company’s top executives have felt the pinch. Executive pay was among the items cut as the General waded through multi-billion-dollar losses and immense market pressure, but after two years of cuts, the members of GM’s top brass are getting their old salaries back. Top boss Rick Wagoner’s base pay went as “low” as $1.1M but is now back to its 2003 level of $2.2M. Product czar Bob Lutz and money man Fritz Henderson also had their pay restored, and Fritz even got a raise to reflect his promotion to COO. Many of the pay cuts were voluntary in recognition of GM’s market struggles, but even with the cuts in base pay, overall executive pay packages are worth a lot more than just the salaries alone. Wagoner, for example, was paid $14.4M in 2007, while Maximum Bob came in at $6.9M.

[Source: Auto News (subs. req’d)]

Wired magazine got in the queue for some face time with Bob Lutz at the Detroit Auto Show, and came back with a quote that’s raised a few brows. When asked what the target market for the car would be, Lutz said “I don’t know. You’d like to have it at about $30,000 for the customer, but what I’m hearing from the team is we’re not going to get there…. [I]f it costs closer to 40 than 30, well, that’s too bad.”

The issue is the timeline. His engineering team said that if they had more time they could cost-optimize the car, but Lutz doesn’t want to wait for that. As for the recent go-round about when the Volt would appear, November 2010 is such a firm deadline in his mind that when it comes to the internal team, his only question is: “What is there about November 2010 that you don’t understand?”

Lutz must know how important it will be to price this car competitively. A $40,000 Volt before you start checking options boxes will do a lot to keep people looking elsewhere for green options. For Lutz, though, the Volt — like the moon landing — is much about prestige, saying, “If it doesn’t work, it’s not fatal. But if it does work, it will be sensational.” It is also just as much about a return to the kind of design and technological form that the marque hasn’t seen in a long time. “GM’s credibility is rapidly returning and it’s beginning to be reflected in the marketplace.,” Lutz said, “[b]ut there is no doubt you’d like to be able to leapfrog Toyota and come out with a car they aren’t ready to do. There’s nothing magic about the technology. Two or three years after the Volt is introduced, everybody will have something like it. We’d just like to be first for once.”
Read

In the fuel economy and future tech debate, the hybrid vs. diesel vs. hydrogen fuel cells vs. smaller cars and smaller engines always provokes a fair bit of discussion among Autoblog commentators. At this point, no one yet knows what’s going to win since nobody knows how the volatile mix of products, timelines, prices, regulations, legislation, state standards, and gas prices will ultimately pan out. Bob Lutz’s prediction is that diesels, at least as far as the US is concerned, won’t be much of a factor.

His reasoning is simple: “I think customers are going to say, ‘Wait a minute. At equal fuel prices I’m paying $4,000 more for this.” Unlike many countries in Europe, the US offers no incentive for people to buy diesels. In the States the price of a diesel vehicle is often more than $1,000 higher than that of a gasoline-engined car, and diesel fuel is just as expensive as gas (throughout California and other states, it’s slightly more expensive than premium unleaded). In that case, Lutz’s opinion is that just about all the customer will glean from an oilburner is a higher car payment.

Lutz sees diesel uptake in the US hovering at about eight-percent. The technology he sees as winning the day: ethanol. It’s clean, it’s easy to integrate into the refueling infrastructure, and it “doesn’t require a change in consumer behavior.” (Except for the people in emerging markets who’ve seen the price of corn skyrocket.) For another take on the fuel economy battle, according to Kelly Blue Book, 40-percent of US new car shoppers think hybrids are the future, with just 17-percent citing flex-fuel.
[Source: The Car Connection]