How well does the Cruze stack up against the Corolla & Civic?

What is the most important Chevrolet product released over the past few years or soon to be introduced?

Some people may say the Camaro, as that vehicle put Chevrolet squarely back in the pony car game, pitting it against the Ford Mustang. Others might say the Equinox and Traverse as these two models have proven that GM can build crossovers which are at the top of their respective segments. The Malibu has shown Chevrolet’s midsize car prowess while the electrified Volt is likely to win honors as the most hyped product of our time.

Actually, none of these vehicles will likely have as much of an effect on the Chevrolet brand as its compact Cruze, set to be introduced within the next month. Replacing the bland Cobalt, the Cruze is everything a compact sedan should be and more: stylish, roomy, well appointed and highly fuel efficient. The latter two attributes have rarely been seen in a GM model of this size, but the 2011 Chevrolet Cruze is about to change that.

Cruze Confidence

GM is confident that the Cruze has what it takes and is urging its dealers to buy at least one car each from its top competitors — the Toyota Corolla and the Honda Civic. In July, when GM introduced the Cruze to the national press corps in Washington, D.C., we were able to drive the Cruze, Corolla and Civic back-to-back for comparison purposes.

My personal observation of all three has the Cruze on top, which is what GM hopes Chevrolet shoppers will also conclude.

Of course, there is always a risk that customers will choose a competing model especially when those vehicles are showcased front and center at a local Chevrolet dealership. However, that means you are confident that your product is better than the rest and not a mere equal. And, judging by its clean and well appointed interior, superior gas mileage and midsize car roominess, GM finally has a product it doesn’t have to make an apology for.

Cruze Importance

Cobalt sales have hovered around 200,000 annual units from 2005-2008 which is the floor Cruze sales should hit despite ongoing economic weakness. Ideally, Cruze sales will be much higher, perhaps approaching levels reached by the Cavalier during the 1980s when sales peaked well above 400,000 units annually.

Yes, stiffer competition and more of it will be a factor, but if Chevrolet can siphon some sales from Toyota and Honda while giving customers a reason not to purchase the upcoming Ford Focus, the current Hyundai Elantra or the Nissan Altima, then a middle ground number seems likely.

That net increase could put Chevrolet ahead of Ford and within striking range of Toyota, currently the best-selling automotive brand in the United States.

Photo Credit: General Motors Company

All throughout the month of August, reports that the month’s auto sales would plunge surfaced time and again. This reporting was wholly unnecessary or at least overdone as an obvious factor was kicking in: August 2009 was “Cash For Clunkers” time, therefore any comparison with last year would be skewed by that federal government rebate program.

But, comparing month over month figures is how the industry rises and falls even when the numbers are skewed. One of the first to issue their sales report was Volkswagen who cut to the chase in the title of their news release: year to date sales are up by 21 percent. On closer scrutiny, Volkswagen revealed that monthly sales fell by 7.9 percent over August 2009.

Monthly Losers

Nissan went straight to the point with their news: sales fell 27 percent for the month although year to date sales are still up by 14 percent. Honda sales fell by 30 percent, but the Japanese automaker says that it is still ahead of last year’s pace though that lead narrowed to just 1.5 percent.

Toyota sales dropped by 31 percent which means that the world’s largest automaker has fallen behind last year’s year-to-date pace by 6,000 units. Blame all the recalls and bad publicity with having a net drain on Toyota whose position as the world’s largest automaker is in jeopardy regardless. Volkswagen, perhaps even GM, may unseat Toyota this year.

Fab 3

How did 2009′s winners do in August? That would be Subaru, Hyundai and Kia, the only automakers who saw their sales rise in a very depressed market.

Subaru’s sales fell by 22 percent, but they’re still up by 20 percent for the year. Hyundai reported that its sales fell by 11 percent, yet the Korean automaker is still up by 17 percent for the year and on pace to establish yet another sales record. Kia, Hyundai’s cousin, registered a 20 percent decline for the month, but they’re still up by nearly 10 percent year to date.

Detroit 3

The Detroit 3 reported mixed sales results with Chrysler sales increasing by 7 percent for the month and are now up by 10 percent for the year. Chrysler’s rise wasn’t a surprise as it basically had to sit out of  last year’s incentive programs as it recovered from bankruptcy and sought to restart production.

GM sales fell by 11 percent for its four surviving brands though the largest domestic automaker is still up by 5.4 percent for the year. Ford sales also fell by 11 percent, but the automaker is still up 18 percent for the year.

The Rest

Daimler reported sales up by 7.4 percent for the month, though when breaking things out by brand Mercedes was up 10 percent while Smart fell by 72 percent. Mercedes is capitalizing on Lexus’ woes and may regain the top luxury marque spot from its Japanese nemesis this year.

The BMW Group fell by 1.6 percent but is up 5.6 percent for the year. Mazda fell by nearly 26 percent, but they’re up by 7 percent year to date. Other manufacturers were still tabulating their figures when Auto Trends went to press with this article.

The Meaning

What does August 2010′s sales mean? Not a whole lot. Cash for Clunkers was a hard month to go up against, so a significant drop was expected. Going forward, a stale economy may keep sales down for the rest of the year, underscoring that the battered American consumer will be careful when and if they buy a car this year.

Sources: Automaker News Releases

Fiat loves Chrysler dealers. Or at least they want to love those who can help set up shop for the Fiat brand in 165 markets.

On Monday, Chrysler Group LLC played host to 400 dealers who were on hand in Auburn Hills, Michigan, to find out what it will take to join the Fiat dealer network, getting more information about the Fiat brand and history, future product plans, competition, volume expectations and related matters.

Selected dealers will continue to sell Chrysler products, but they’ll also be given the opportunity to sell Fiats beginning with the subcompact Fiat 500 later this year.

Information Packet

Fiat 500, European Version

“The Fiat brand offers our dealers the opportunity to be part of a unique experience,” said Laura Soave, Head of Fiat Brand North America. “Our dealers will be able to interact with a group of individuals that are not part of their current customer base. These are individuals interested in Italian automotive design coupled with fuel efficient technology. Our dealers will be the key point of contact with our customers, and thereby, a crucial part of the success of the Fiat brand.”

North American Manufacturing

Despite its Italian pedigree, the Fiat 500 sold in the United States will have a distinct North American flavor to it. The car will be built in Toluca, Mexico, and the 1.4-liter engine is being built in the United States. That engine features MultiAir technology, something that will provide a 10 percent boost in power while offering a corresponding increase in fuel mileage and decrease in emissions.

Auto Trends will provide additional dealer information and a review of the Fiat 500 over the coming months.

Source: Chrysler Group, LLC

Opel to be sold beyond Europe

General Motors is down to managing four brands in North America now that Pontiac, Saab, Saturn and Hummer have been sold or shut down.

Cadillac, GMC, Chevrolet and Buick comprise its North American brands, but the company also owns Holden (Australia), Daewoo (Korea), Vauxhall (UK) and Opel (Europe). Holden and Daewoo are sold beyond their local markets, but Opel is not. Vauxhall is Opel in the UK and other markets, selling the same models under a different brand.

Up until now, Opel has been sold only in Europe. Its cars, which have been reworked and sold in the United States as the Saturn Astra, Buick Regal and Chevrolet Cruze, are a good fit for other markets, but GM has kept tight reins on the brand. However, that is about to change.

Opel Initiative

According to Crain Communication’s Automobilwoche (Automobile Week), a sister publication to Automotive News, Opel will soon be sold in China. GM has been enjoying a booming success in China where its Buick brand is a national darling. Chevrolet is sold there too as are some Daewoo products.

Interestingly, Australia is another market where the Opel brand is slated to be sold. That’s Holden territory, but the products likely to be sold down under should be different. Indeed, although the Opel Astra inspired the Holden/Chevrolet Cruze, they are not the same cars. Conceivably, Opel could sell the Astra there too.

Other Markets

Opel will also be selling its cars in two unidentified South American market and one unnamed Asian market besides China. Likely, some of those models will compete against existing GM brands which could present a problem for GM if the Opel introduction isn’t carefully managed.

Following its 2009 bankruptcy filing and reorganization, the General Motors Company has been on a fast track to remaking itself.  In North America and elsewhere, capacity has been realigned to match demand, reducing model availability to their lowest levels in memory.

Opel China

Opel isn’t entirely knew to China as Automobilwoche reports that its cars have been on sale there since mid-2009, with 4,000 units sold. That’s chump change in the world’s largest consumer market, something GM will rectify when the import reins are loosened.

Expect GM to continue to look at new markets for Opel, but the United States and Canada won’t be considered. GM has learned its brand management lesson and is doing what it can to bolster its four surviving North American brands.

Diesel trucks are delayed…again!

Mahindra & Mahindra’s plans to bring its TR20 and TR40 compact pickup trucks to the United States have hit yet another snag, casting doubt as to whether Americans will ever see these diesel-powered vehicles.

Reports surfacing earlier this week revealed that Indian automotive manufacturer Mahindra has unilaterally cancelled its agreement with its American distributor, Global Vehicles U.S.A., Inc. (GV), to sell its trucks through the dealer network assembled by GV. That action, which seems entirely illegal, will likely force GV to respond by making sure that the trucks stay out of the states until the matter is resolved. If Mahindra does not back down, it could be years—if ever—before a single Mahindra truck is sold stateside.

Unilateral Termination

On Thursday, Automotive News reported the following statement posted to Mahindra’s website: “Mahindra’s relationship with Global Vehicles Inc (GV) has ended, the agreement dated 26th September 2006 between Mahindra and GV having terminated.”

That statement compromised in entirety a press release (or note) issued by Mahindra on August 20, 2010, but only discovered this week. GV was not notified directly nor were the 300 plus dealers-in-waiting. Mahindra received EPA certification for its vehicles earlier this month with plans to begin selling their pickup trucks in the United States this December.

U.K. Lawsuit

Mahindra and GV have been preparing to do battle in a UK court with GV having sued Mahindra to make sure that the Indian automaker follows through on its plans. The thrice-delayed Mahindra trucks were initially supposed to have been sold in the United States summer 2009, but Mahindra had to make modifications to its vehicles first and then seek EPA approval. In the meantime, GV lined up a dealer network across the United States with each dealer having paid $200,000 to join.

Mahindra’s actions have apparently caught everyone off-guard as the automotive press corps is trying to sort through the latest news. However, India’s Business Standard Motoring publication has offered a glimpse of the legal wrangling sure to follow, quoting GV’s communication manager, Max Butler, as saying, “They have to obey US law and can’t arbitrarily dismiss a contractual agreement.”

Lesson Needed

And that statement by Butler is true. Mahindra needs a fast lesson in understanding the way business is conducted in the United States if it ever hopes to sell its line of passenger vehicles here. Seems like a major PR disaster is unfolding before our eyes!

See Also – Often Delayed Mahindra Trucks Due In December

…unless you go to Europe!

Chevrolet Orlando show car: Not U.S. bound

Chevrolet contributes at least 70 percent of U.S. sales for General Motors. That isn’t likely to change unless buyers suddenly get a hankering for Buick and GMC or if Cadillac sales explode.

But that isn’t a bad thing either — when I rubbed shoulders with Chevrolet brass in Washington, D.C. last month as part of the Chevrolet Cruze national PR roll out, I learned that Chevrolet’s big slice of the pie is just fine with GM management. Why knock what works? And, Chevrolet is by far the strongest weapon in the GM arsenal, on sale in more than 130 markets worldwide.

Product Line

Top to bottom Chevrolet’s product line is new, significantly updated or soon to get refreshed. There are a few products such as the full-size Chevrolet Impala which could use an update sooner rather than later, but that hasn’t hurt Chevy.

The Cruze will soon replace the Cobalt and a smaller vehicle will slot beneath it in the near term. The Camaro is a wonderful halo model and strong coupe, Chevy trucks continue to sell well and crossovers such as the Traverse and Equinox are stylish, roomy and fuel efficient.

One crossover that will NOT be sold in the United States is the Chevrolet Orlando. Based on the platform underpinning the Cruze, the Orlando was supposed to be sold in the U.S., but GM later decided against it. Slightly smaller than the Equinox, but offering 7-passenger seating, the Orlando would likely compete with the Equinox for customers. And that is a big no-no for Chevrolet.

Orlando Absence

When I asked Chevrolet management about the Orlando (in this case Chuck Russell, who is in charge of GM’s small car operation), it was explained to me that GM doesn’t believe that every vehicle it builds needs to be sold all over the world.

The Orlando fits nicely with Chevrolet Europe’s product plans and will debut at the 2010 Paris Motor Show (Mondial de l’Automobile 2010) in October (press days are on September 30 and October 1). But there isn’t a need for the vehicle in the United States, thus its absence.

Chevrolet Europe has seen its sales slip this year over last, mostly due to the end of government-backed “cash for clunkers” type programs. With the Orlando’s introduction in early 2011, Chevrolet will have a model that should compete well across Europe. Powered by a 1.8-liter gas or 2.0-liter diesel engine, the Orlando will be one of four new Chevrolet models to make their Paris debut this year according to Automotive News.

Photo: General Motors Company

The Ford Fiesta is making it to the United States and it is being sold to customers. I can vouch for that because I saw my first 2011 Fiesta that wasn’t on a test track or sitting in a dealer showroom earlier this week.  Decked out in Lime Squeeze Metallic, that sedan zipped past me as we were both making left turns opposite each other at a busy intersection.

Production Delays

So far, Ford has managed to contain what could be an embarrassing PR problem with its Fiesta. Built in Mexico, the Ford Fiesta has slowly been making its way to the United States, but delays due to weather problems at the beginning of the summer followed by having to halt shipment this past week to fix a defective part has made Fiesta sightings almost as uncommon as finding Big Foot.

But the Fiesta isn’t your local Yeti with 4,400 models sold through the end of July. That number is likely to pick up; I’m fully expecting that by this time next year the Ford Fiesta will be one of the top ten selling cars in America.

IIHS Honors

One of the biggest tests for the Ford Fiesta (or for any model for that matter) is putting it through the crash test wringer. The Insurance Institute for Highway Safety or IIHS is funded by the major insurance companies and conducts crash tests on new models. The higher the score, the lower your insurance premium. Consumers can save hundreds of dollars annually on auto insurance costs if their vehicle scores high.

This week, the IIHS announced that the Ford Fiesta sedan and hatchback garnered the Top Safety Pick laurels, the first mini car (subcompact or smaller) to do so.  The Fiesta received good ratings for front, side, rollover, and rear crash protection, and for having electronic stability control as standard equipment.

Moreover, the Fiesta represents the eighth Ford Motor Company product to win a Top Safety Pick award giving Ford one more model than Toyota, now in second place. Yes, that feat is great news for consumers and a marketing coup for Ford who most certainly will promote that advantage.

Tough Materials

So, how did Ford make such a small car so tough? Ford says that more than half of the Fiesta’s body structure uses high-strength or ultra-high-strength steels in the floor structure, front rails, beams and in the ultra-rigid, integrated body reinforcement ring designed to help better protect occupants in side impacts.

Further, Ford uses ultra-high-strength aluminized boron steel in its Fiesta A- and B-pillars, pillars that hold up the windshield section and the middle of the roof at the door posts.

Source: Ford Motor Company

Fiat s.P.a. is busy tending its American offspring, attempting to ensure that its Chrysler, Jeep, Dodge and Ram brands have a secure footing going forward. That’s a tall order given the financial problems and its dearth of new products in recent years.

Sergio Marchionne, the workaholic brainchild and CEO behind Fiat and Chrysler has managed to gain hold of Chrysler without spending a single Italian lira, a feat made easier when the feds threatened Chrysler with extinction. But, Marchionne has several Italian brands to maintain including niche supercar brands Ferrari and Maserati, Lancia, Alfa Romeo and its namesake, Fiat.

We now know that General Motors had trouble maintaining eight domestic brands, tossing four in a bid to survive. Nine brands can be very difficult to maintain although Fiat’s plans seem to include matching Alfa Romeo to Chrysler and allowing Jeep and Dodge to tap Fiat for platforms and powertrains.

In recent days rumors of ten-brand Volkswagen Group interest in acquiring Alfa Romeo have surfaced with speculation being that VW wants the Italian brand to help it seize the No. 1 global automaker status from Toyota. In recent years as General Motors and Toyota have traded places as 1-2 automakers, Volkswagen sales have surged to where it is now a close third.

At present, Alfa Romeo produces just over 100,000 cars annually. That’s small potatoes, but Marchionne has said that he plans to increase that number five-fold within the next four years. Another tall order, but one he may be able to pull off if he reintroduces the brand to the U.S. market to sell alongside Fiat at select Chrysler Group dealerships.

Analysts are casting doubt that Fiat will be able to propel Alfa Romeo, but these same folks are saying that Volkswagen may be able to reach Marchionne’s goal and on time. Fiat isn’t awash in cash, while Volkswagen has money and plenty of it to burn.

Marchionne’s misgivings show that he is concerned what it would mean if Alfa Romeo left the Fiat Group fold. Chrysler would suddenly not have product available and would have to tap the Fiat brand for some of its models. Supposedly, Chrysler and Alfa Romeo are well down the road to sharing platforms and powertrains, an initiative threatened if VW acquires Alfa Romeo.

Here’s my solution: Fiat should sell Alfa Romeo to Volkswagen, but retain the right to sell the brand stateside as the exclusive distributor. In addition, Alfa Romeo and Chrysler would continue to collaborate on select products, while Volkswagen would tap Chrysler for its next generation Routan and perhaps gain access to some other models.

Does this sound far-fetched? Five years ago, maybe. But, today automakers are working together on various projects in a bid to cut costs and save their own necks. Fiat would get much needed cash, Chrysler would receive new product while Volkswagen would get a shot at automaker immortality by acquiring Alfa Romeo.

Across much of Europe and in some other markets Volkswagen and Fiat are fierce rivals, but that rivalry could be set aside just enough to allow Alfa Romeo to make a clean transfer to the German automaker.

The Great Automobile Aficionados

Automotive aficionados have helped shape the car industry we see today, men and women who possess a passion for speed, styling, engineering and technology. Without their exuberance and particularly their “need for speed,” today’s cars wouldn’t be much faster than a horse-drawn buggy, utilitarian devices engineered to move people from Point A to Point B.

Happily, that restrained way of driving never caught on. Instead, we have at our disposal some of the most sophisticated pieces of equipment sitting in our driveways, motorcars that have been greatly impacted by those who have a passion for driving.

Author Robert Puyal has captured the people who have shaped or are still fashioning the automotive industry today in his eye-catching coffee table book, “Behind the Wheel: The Great Automobile Aficionados” (2010 | Flammarion).  Scheduled for release this October, I was presented with a review copy and have been taking it in ever since.

First, let’s examine some background information about the author.

Author Background

Robert Puyal is a journalist and car specialist, a Frenchman who writes for several motorsport magazines in France. Puyal focuses on the history of the automobile as well as design, engineering and technology. His love of testing sports car is clearly evident and helps support his well researched details about the industry’s greatest and most influential drivers.

Those drivers were among the “turn of the century” people who helped launch the automobile industry in the 1800s and made it a formidable industry by the 1920s. And Puyal starts off by naming five influential Frenchmen who shaped the industry–Camille Jenatzy, Camille du Gast, Louis Renault, Jules Bonnet and Jules Gout. The focus on France goes beyond Puyal’s ethnicity as his country is truly the birthplace of the automotive industry.

Top Influencers

Puyal showcases the lives of 54 individuals, documenting his information with richly supporting details and lavish black and white and, later, color photographs. The names include people we’re all familiar with including Henry Ford, Preston Tucker, James Dean, Enzo Ferrari, Brock Yates, Paul Newman and Horatio Pagani as well as a number people who were unknown at least to me.

Influential as Louis Renault was in establishing his mark in the automotive industry, it seems odd that the cars sporting his name are not sold in the United States. Indeed, no French brand is currently sold stateside.

Let’s get back to the list of automotive greats!

Camille du Gast was the first female worthy of a mention by Puyal, a woman of considerable influence due to her marriage to Jules Crespin who founded the Dufayel department stores in Paris. When he died, Camille was just 27 years old and ready to take on the world. du Gast made a name for herself by becoming the first lady parachutist in the world; by the time she was 33, du Gast was racing cars from Paris to Berlin as well as to Madrid. Her exploits were highly unusual for her gender, with gossipers suggesting one sexual scandal after another. Undeterred, she continued to race, finishing 19th in the Berlin race with well over 100 drivers participating.

Who knew that Henry Ford had a rabid racing streak? The father of the automobile assembly line broke the 100 mph barrier in 1904 when he drove a 19-liter four-cylinder Ford 999 autocar sporting a huge radiator, basic chassis, joystick and just one seat. Imagine trying to control that beast as his speed crept up, but control it he did. Later, Ford would go on to build 16 million Tin Lizzies…all in black, of course!

He was a young Hollywood star and just 24 years old when he died, but James Dean was a dashing actor and cover photo feature for Puyal’s book. His love of acting quickly brought him great wealth, monies he used to purchase motorcycles first, then cars. Fast cars too including a white Porsche 356 Speedster. Dean proved to be a skilled race car driver, entering his first race in 1954 and winning his heat. But, it was a Porsche that proved to be his undoing, a 550 Spyder model involved in a fatal traffic accident near Cholame, California.

In more recent years the notables have included a handful of automotive craftsmen and designers including Argentine-born Horacio Pagani. His interest in cars goes back to his early youth, telling anyone who asked that when he grew up he would build cars in Modena, home of all of the top Italian race car names including Ferrari, Maserati and Lamborghini. True to his word, Pagani took what he learned while working at Lamborghini to start Pagani, a developer of supercars of carbon construction. Each model is priced well over one million dollars, works of art that find their way into the hands of no more than 40 people around the world annually.

Historical Perspective

Even if you aren’t someone who is attracted to fast cars, Behind the Wheel makes for a wonderful history lesson covering the movers and shakers who are. It is these people who have caught Robert Puyal’s attention and have been thoroughly researched by him and generously shared with the rest of us.

Copyright: Behind the Wheel by Robert Puyal, Flammarion, 2010.

Once, twice, perhaps three times or more small pickup trucks from India’s Mahindra & Mahindra company have been promised for the U.S. market. As far back as 2006 we have been hearing that these vehicles were going to be imported by Global Vehicles U.S.A., Inc., but delays beginning in 2008 changed those plans time and again.

EPA Certification

The latest hold up involved the all-important certification from the Environmental Protection Agency. Without the EPA’s approval, Mahindra’s plans would be delayed indefinitely.

On Friday, Global Vehicles issued a statement following the announcement by Mahindra that the Indian automaker had won approval from the EPA. Global Vehicles noted that despite its ongoing litigation with Mahindra, they expect to make available the first trucks to U.S. consumers before the year comes to a close.

Pending Litigation

Global Vehicles is the exclusive distributor for Mahindra trucks, but they sued Mahindra over the delays as well as to ensure that they remain the exclusive distributor according to the July 27, 2010, issue of The Wall Street Journal. That suit was also designed to protect its 300 U.S. distributors who have invested a significant amount of capital in readying their showrooms.

The Indian trucks will compete against the Toyota Tacoma, Nissan Frontier, Suzuki Equator, Ford Ranger, Chevrolet Colorado and GMC Canyon. Unlike the other models, the Mahindra trucks are powered by diesel engines, 2.2-liter four-cylinder engines paired with six-speed automatic transmissions. Available in two- and four-wheel drive, the Mahindra TR20 and Mahindra TR40 should get about 30 mpg on the highway, easily the most fuel efficient trucks in its class.

Additional Models

Expect Mahindra and Global Vehicles to settle their differences and begin working on expanding Mahindra’s U.S. product lines soon after the trucks go on sale. A compact SUV, based on the platform underpinning the trucks, is expected to follow in early 2011 with an undetermined model dubbed MUC expected to be introduced in 2012.

With the introduction of the Mahindra trucks, the automaker becomes the first Indian car manufacturer to sell its vehicles in the United States. Auto Trends will provide additional information about the trucks closer to the distribution date.

Resources

The Wall Street Journal: Mahindra Sets U.S. Pickup Sales