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

GM Loosens Opel Reins

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.

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