The Current & Soon Coming Chevy Cruze!

Already on sale in South Korea, Australia and soon in Europe, the Chevy Cruze will go on sale summer 2010 as a 2011 model.

General Motors is in the process of a historic reorganization, one that could help the one-time global automotive leader pare excess brands while rolling out a number of new models. You probably have heard of the Chevy Volt, that plug-in hybrid electric vehicle (PHEV) that is just the beginning of the automaker’s quest to transform itself into a company producing revolutionary, highly efficient cars.

What you may not have heard about is the Chevy Cruze, which is based on the Volt’s platform, but will be powered by an economical, gasoline engine. This car has already been introduced in several markets, beginning last year in South Korea. By 2011, the Cruze will be sold across GM’s entire market including here in North America. To that end, this site is dedicated to tracking the Cruze’s progress as well as letting you know a bit more about this game changing car.

Advanced Engineering, Highly Fuel Efficient

Powered by a 1.6L I4 engine, the Cruze is paired with a five-speed manual or optional six-speed automatic transmission. GM also offers 1.4, 1.8 and 2.0L I4 engines depending on the market, the latter being a turbo-diesel engine which is already being sold in Australia as the Holden Cruze. It is believed that a direct-injection version of the 1.4L engine will be made available in the US, a car that GM says should get at least 40 mpg on the highway.

The Cruze is expected to replace the Chevy Cobalt and the Pontiac G5, the latter model which will simply die when the Pontiac name is retired at the end of 2010. Seating five passengers, the Cruze will include all of the latest safety and engineering features that customers expect, but it’ll be priced competitively. GM hasn’t announced pricing yet – the car goes into production in April 2010 – but a price in the neighborhood of $17,000 seems likely.

Lordstown, Ohio Assembly Plant Production

Last summer, GM announced that production for the US spec Cruze would be assigned to the company’s Lordstown Assembly Plant in Ohio, a $500 million retooling investment would help bring the Cruze online. Former GM Chairman and Chief Executive Officer, Rick Wagoner, said at an August 21, 2008 news conference that the Cruze was designed and engineered by the company’s teams in Europe and Asia Pacific and would be manufactured in those regions as well as in Ohio.

Though the company is now going through a painful and deep restructuring, the Cruze project continues as does production for the Volt.  While the Volt be produced in small numbers, the Cruze will be mass produced and could quickly become the best selling model in the GM fleet whether sold as a Holden, Opel, Vauxhall, Chevrolet or Daewoo model.

Photo courtesy of GM Corp.

Carlos Ghosn Bullish On Vehicle Electrification

It took approximately ten years to sell one million hybrid vehicles in the US, a number that is probably far below what advocates envisioned when the technology began to be mass marketed in the late 1990s. Back then, Honda and Toyota had the market to themselves, with few competitors on the horizon. Even today the two automakers sell far more hybrid models then their competitors, but that may soon change.

The Advancement of Hybrid Technology

Hybrid technology has been picked up by Ford who five years ago introduced its Ford Escape Hybrid and has since expanded to include a Ford Fusion Hybrid in the mix. GM and Chrysler have each jumped in while Volkswagen is leaning on its clean diesel technology to provide an alternative to gas powered vehicles.

Carlos Ghosn who is chairman and chief executive officer for both Renault and Nissan aims to be the first automaker to mass produce electric cars. While at least one Chinese automaker, BYD, is already producing electric vehicles as is Tesla Motors and soon, Fisker Automotive, Nissan says that it plans to put its first electric model on the market next year.

Not A Chevy Volt: Cheaper

According to the International Business Times, Nissan will roll out a model in 2010, at a price that makes ‘sense’ to the consumer. Ghosn pointed out that the GM Volt (Chevrolet Volt) will cost about $40,000 which is too high given that consumers can purchase an oil powered car for $15-20,000.

Quoting Mr. Ghosn: “Somebody’s got to invest massively and bring to the market zero emission cars, and we think we can do it,” Ghosn told CNBC in an interview from Tokyo. “We have the batteries and we are at the point where within 2010, cars that we will be putting in the U.S. market will be totally attractive to the consumers.”

Consolidation Underway in the Auto Industry

Ghosn also noted that the global auto industry is in a position to consolidate, pointing out that Fiat and Chrysler are in talks while other automakers are collaborating on technology. For example, last year BMW and Mercedes agreed to share some components, a step that some suggest will lead to the German arch-rivals eventually merging. Though that move could be many years off it could be pushed forward if economic forces create a sense of urgency.

With the world embroiled in a deep recession, further moves to join companies together could be on the horizon.

See Also — Nissan Poised to Eliminate Jobs, Transfer Production

Auto Coalition Says That Six Million Jobs Disappear If U.S. Automakers Expire

If you haven’t heard that executives from America’s major automotive manufacturers are meeting with Congress in a bid to secure tens of billions of dollars in loan cost loans, then you are missing one of the news items of the year.

Executives from General Motors Corporation, the Ford Motor Company, and Chrysler LLC are asking Congress and the President to approve a loan guarantee program that would allow each automaker to secure funding, monies they say is essential to whether they stay in business or close down shop. Last month these same executives flew to Washington in corporate jets and were roundly criticized for this action. This month, the executives ended up driving some of their most economical cars to the event including a pre-production version of the hybrid Chevrolet Volt, the hybrid Ford Fusion and the hybrid Dodge Aspen.

Several groups have been speaking out in favor of federal government intervention and some have spoken out against assistance. One group wanting to see Congress intervene is a group that calls itself the “auto coalition” and group of auto suppliers, dealers, and other interested parties representing some six million people in the U.S. What they said follows.

“With six million supplier, dealer and related jobs at risk nationwide, failure of the domestic auto industry is not an option,” said Timothy D. Leuliette, president & CEO of Dura Automotive Systems, Inc. “In addition to the ‘Big Three’ auto companies, countless supporting companies drive good jobs in local economies all across the nation. These are hard working men and women struggling to support their families and communities in the midst of this global economic crisis. Congress must act now to support a bridge loan – not a bailout – for America’s auto industry.”

Given the urgency of the situation and the need to counter misinformation about the vital role the domestic auto industry plays in the U.S. economy, The Engine of Democracy coalition was formed to give voice to the six million people whose jobs are directly or indirectly tied to the health and vitality of domestic automakers. With minimal publicity, the interactive website, www.TheEngineofDemocracy.com, launched on Monday and received more than 15,000 visitors in just four days, generating more than one thousand grassroots emails and letters to Capitol Hill in support of the automotive bridge loan program.

“The American auto industry has long been our nation’s engine of democracy. In World War II, it turned on a dime and became what President Roosevelt called ‘The Arsenal of Democracy.’ After September 11, automakers responded by slashing prices and loan rates to jump-start a needed economic rebound. With the global economic crisis, now is the time for the government to help automakers help the American economy,” said Carl Galeana, who owns several new car dealerships across the country.

America’s car companies play a crucial role in the nation’s economic engine. Almost 4 percent of U.S. gross domestic product is auto-related, and vehicle manufacturing represents 10 percent of U.S. industrial production by value. According to The Automotive Trade Policy Council, the U.S. auto industry invests $10 billion in this country in plants and equipment each year. In addition, the U.S.-based auto industry is second only to the semiconductor industry in R&D spending – $12 billion last year alone.

“If Congress does not take swift action to prevent the collapse of our domestic auto industry, the already hard hit automotive Midwest will be ground zero, but the economic fallout will instantly spread through local economies all across the country,” said Neil DeKoker, president of the Original Equipment Suppliers Association.

Matthew C. Keegan is a freelance writer who resides in Cary, North Carolina. Matt is a contributing writer for Andy’s Auto Sport an aftermarket supplier of quality parts including apparel and bed bars.