Chevy Pits Cruze Against Corolla & Civic

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

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 Poaches Hyundai…Again

Korean automaker gives up another exec

Hyundai needs to circle the wagons if they are to succeed in keeping General Motors away from its key marketing people.

Chris Perry (L); Jim Campbell (R)

For the second time this year, a key Hyundai executive has left the Korean automaker and is heading to GM. Today, GM announced that Chris Perry has been named Vice President, Chevrolet Marketing replacing Jim Campbell who has been reassigned.

Earlier this year GM grabbed Joel Ewanick although when that poaching took place, Ewanick had already left Hyundai for Nissan. Six weeks into his Nissan gig, GM gave Ewanick an offer he couldn’t refuse, naming him vice-president of U.S. marketing.

Marketing Pro

Perry’s career has been on the ascendancy, having spent 10 years at now defunct American Isuzu Motors before heading to Hyundai in 2000. Though Hyundai’s position in the market has improved dramatically since then, GM still sells more vehicles globally than its Korean competitor. Likely, GM sees Hyundai as much of a threat to its business as anyone else, but they’re willing to snag top Hyundai performers especially if that move helps their own business.

Campbell will land on his feet as Vice President, Performance Vehicles and Motorsports. According to GM,  Campbell will be” responsible for integrating the engineering and marketing of performance versions of current production models, as well as all motorsports activities.” Sounds like a fun job, perhaps better than having to market a wide variety of Chevy products.

Hyundai Magic

As for Perry, he’ll report to Ewanick. Perhaps they’ll do for Chevrolet and General Motors what they did for Hyundai, creating a groundswell of interest in various product lines. Also, maybe they’ll help GM complete a Hyundai trifecta by poaching yet another executive  to bolster some other GM brand.

Stay tuned! The wheels on the bus go round and round….

Source: General Motors Company

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