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Experts: Improvements to Cruze need to be made



Published: Mon, September 3, 2012 @ 12:07 a.m.

New destinations for the Cruze?

GM needs to diversify model in US, improve gas mileage, experts say

By Burton Speakman

bspeakman@vindy.com

LORDSTOWN

Automotive experts believe General Motors needs to improve the value and fuel efficiency of the next-generation Cruze for it to compete effectively in the small-car market worldwide when it debuts with its 2015 model.

One of the first things GM could do is diversify the product line by introducing hatchback or station wagon versions of the Cruze into the U.S. market. These versions already are offered in Europe, said Michele Krebs, senior analyst for Edmunds, an automotive information company.

Offering different versions of a vehicle is a relatively inexpensive way for a model to appeal to more people. Once the platform is developed, it does not cost much to put on a different body type, she said.

“Foreign companies have been doing it for years to attract a wider audience,” Krebs said.

GM does plan to offer a different version with the diesel being released in 2013. Volkswagen has been doing very well with its diesel version of the Jetta for some time, she said.

GM cannot be conservative with the Cruze like it was with the Malibu redesign, Krebs said.

The unions also are hoping for some variation of the Cruze, said Glenn Johnson, president of United Auto Workers 1112 in Lordstown.

“I’ve seen the two-door coupe version, which I think is a beautiful car, but [the company] didn’t think there would be enough consumer interest to build it,” he said.

The workers at the plant haven’t been told anything about new versions of the Cruze, but the hope is there will be some diversification beyond the diesel, said Dave Green, president of UAW 1714.

The next generation of the Cruze has overshadowed the diesel just based on the size of the commitment GM made to each product, Green said.

The company will spend $200 million to develop the next-generation Cruze, while the diesel was a $5 million investment.

The Cruze is the first truly global vehicle for GM, said Jesse Toprak, vice president of market intelligence at TruCar.com, an automotive website.

He said the current Cruze is a solid vehicle, but GM cannot stand pat with the Cruze while its competitors are making improvements.

“A solid vehicle is not enough when everyone else is making great vehicles,” Toprak said. “GM has a lot riding on the Cruze.”

GM has to accomplish two things with the Cruze: Keep its loyal customers and grow sales by attracting new ones, Toprak said.

They could do this either by improving the Cruze’s styling or increasing its value, he added.

“Hyundai did that with the Sonata. They made it such a good value, you get so much car for the money that it was foolish not to check it out,” he said.

The small-car market is one of the most competitive worldwide, Toprak said. It’s one that lends itself to vehicles that present great values.

Fuel economy must be better on the next-generation Cruze.

GM needs the Cruze to reach 40 miles per gallon on the highway on nearly every version of the Cruze and 35 combined city and highway mpg, he said.

“Forty mpg is the new 30,” Toprak said.

Krebs went even further stating the Cruze will need to reach at least 40 mpg for highway driving even on the most-basic models.

“They have to do so not just to keep up with competition, but to keep up with the rising federal fuel efficiency standards,” she said.

The contract for the Lordstown plant runs through 2020. Fuel efficiency standards begin to rise in 2017 and every automaker’s passenger fleet must average 54.5 mpg by 2025.

GM is going to be making a tremendous investment in the development of the next generation of the Cruze, Toprak said.

“They need to work on a lot of things to get the mix right, he said.


Comments

1southsidedave(4856 comments)posted 2 years, 3 months ago

Foreign companies are miles ahead of the Cruze.

Suggest removal:

2DwightK(1304 comments)posted 2 years, 3 months ago

The current Cruze is world class. It will be exciting to see what changes the new version incorporates. I like the idea of a two door coupe and hatchback. Those models would appeal to different customers.

Suggest removal:

3jeep4grog(2 comments)posted 2 years, 3 months ago

Laet time I checked, the unions dont run the company, do business models, or have focus groups to define future models. They are just hired labor. Thier job is to build the car.

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4redeye1(4711 comments)posted 2 years, 3 months ago

jeep4grog The union has a big stake in GM. You thank BO for that , As far as the Cruze if GM was smart they would start over,Because I drove friends car on a trip to Michigan. When I got there my back hurt so bad. It was so uncomfortable.Maybe around town it isn't bad ,but on a long trip it really sucks.

Suggest removal:

5Freeatlast(1991 comments)posted 2 years, 3 months ago

So true
But hate always comes to the surface and floats like what it is made of

Suggest removal:


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