The Chevrolet Orlando You Will Never See…

…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

GM IPO Underscores Company’s Resolve

Quick! What unflattering label haunting General Motors is the company trying to lose? That would be Government Motors, a term coined by some following the Obama Administration-led bankruptcy filing on June 1, 2009.

Though GM quickly emerged from bankruptcy mere weeks later, their survival came at the expense of American and Canadian taxpayers whose governments poured more than $50 billion into the automaker in order to save it. Those monies plus a loan that has already been paid off by GM comprised a historic bail out of what still is one of the largest companies in the world.

Ever since restructuring, GM has been on a mad dash to remake itself and, apparently, is doing a good job of it. Cadillac, Buick, GMC and Chevrolet are the four remaining US brands with Saab sold and Hummer, Pontiac and Saturn retired. Of course, shareholders of the old GM have been left with worthless stock, seeing their once lofty investments turn to dust.

GM finds itself in a very uncomfortable position, thus its plan for an Initial Public Offering (IPO) of stock in order to raise $12-16 billion. On the one hand, the company is grateful that President Obama stepped in to save it. On the other hand, Obama’s poll ratings have tanked and this election cycle promises a power shift to the right.

Put off the IPO until next year and an emboldened Congress could put GM in an uncomfortable spotlight. GM is desperate to sell its cars and lose its government dependency label.  Though the IPO won’t erase that label entirely, it should help GM demonstrate that it is a private corporation and an important contributor to American (and Canadian) manufacturing.

GM also needs to get this stock offering going sooner rather than later as the economy threatens to retreat once again into a recession. The official unemployment figure is 9.5 percent, but that number does not include people who have stopped looking for work or others forced to work part-time until something better comes along.

GM also knows that the current 11 million annual U.S. car sales are a far cry from the 16-17 million units pushed in recent years, which means that the automaker must find a way to stay profitable with less. The automaker has proven that it is viable even during challenging times, an important edge GM does not want to lose.

GM stock, anyone?

Related Reading

Fortune: GM’s IPO: High Hopes and Deep Fears

The Wall Street Journal: Successful GM IPO Won’t Be Enough To Rev Up Entire Market

Is GM Committing Social Media Suicide?!

Critiquing the 2011 Buick Regal

General Motors and the Ford Motor Company are duking it out for top social media honors.

Earlier this week, Ford introduced its 2011 Ford Explorer to the world via Facebook, side-stepping the usual very public auto show or media event to showcase their SUV turned Crossover model. By all accounts, the Explorer Facebook debut was successful at least for helping to create a lot of buzz for a vehicle months away from its showroom debut.

Buick Regal

General Motors, in a bid to inject fresh life into its aged Buick brand, has chosen to mix things up for the 2011 Buick Regal by allowing people to post comments–good, bad and ugly–about its new midsize sedan to its Moment of Truth website. GM has promised to share all comments and though most are overwhelmingly positive, they also include the usual critical pronouncements including:

“Garbage, I’ve personally driven the Autobahn and this won’t cut it….”

“I wouldn’t RIDE in dat thing…It looks like a Volkswagen:”

Buick Speaks

In a statement coinciding with the website’s launch Buick advertising director Craig Bierley had this to say: “We are inviting consumers to find out on their own that Regal is a true performance sedan and worthy of their consideration. We are making it easy for the consumer to get unbiased opinions in one online location.”

Risky move, indeed. But it just may pay off.

Social media is a significant force, one that can propel or bury most any brand. Toyota learned earlier this year that they need to work on staying ahead of the news cycle curve when recall and potential cover-up information was aired online. People are going to say whatever they want about your product, so why not try to capture those thoughts to one place?

Four Ways

GM is offering four sections on it Regal critique site for your review:

1. What the expert’s think — Reviews from automotive columnists and critics.
2. What everyone’s saying — Facebook and other comments.
3. How Regal stacks up — A combination of comments across the board.
4. What Buick is saying — Responses from Buick managers and dealers along with Flickr photographs of the sedan.

GM is working diligently to reshape the Buick brand to attract younger, sophisticated buyers. The automaker is positioning Buick to compete with entry level Lexus models while Cadillac takes on the rest of Lexus, BMW, Mercedes, Infiniti and Audi.

New Models

Right now, Buick is in transition with the Lucerne soon to make an exit and a C-segment model in the works. Along with the Enclave crossover and LaCrosse sedan, Buick hopes its model line attracts a fresh group of new buyers.

The Buick Regal is currently being built in Europe where it is sold as the Opel Insignia. By early 2011, a Canadian factory will start to produce the sedan, allowing GM to cut costs accordingly.

Source: GM Corp.