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

Flex Fueled: The Current Crop

E85 capable vehicles available today.

There is a segment of American drivers who are interested in buying a car capable of running on a strong blend of ethanol and straight gasoline. For them, utilizing a home grown fuel is better than feeding the foreign oil habit, their personal declaration that American energy independence is possible.

Ethanol Ready

All cars built today are able to run on E10 fuel — 10 percent ethanol, 90 percent gasoline; but few can run on E85 fuel — 85 percent ethanol, 15 percent gasoline.

That’s because certain corrosion prevention measures need to be taken to protect the fuel line and gas tank. When in place, placarding in the area of the fuel tank and a notation in the owner’s manual signifies that fueling with E85 is an option.

Oil Dependency

E85 enthusiasts love the fuel for a few other reasons including enjoying a slight boost in performance, low prices where widely available and the support it offers farmers who grow the corn which comprises the fuel. But, there is a loss of fuel efficiency, somewhere between 20-30 percent which makes E85 unattractive for many. And, the fuel is hard to find in areas where corn is not king, diminishing the attraction of E85 further.

For the 2010 model year, a number of vehicles are E85 capable. Let’s take a look at the run down:

Chevrolet — Select Malibus with the 2.4-liter four-cylinder engine paired with a six-speed automatic transmission or 3.5-liter V-6 paired with a four-speed automatic transmission. HHR FWD or Panel FWD with the 2.2-liter four-cylinder engine paired with a five-speed manual or four-speed automatic transmission. Chevrolet Impala equipped with a 3.5-liter or 3.9-liter six-cylinder engine paired with a four-speed automatic transmission. Various Silverado, Avalanche, Tahoe, Express and Suburban models. Lots of Chevrolets! Indeed, Chevrolet claims to have produced 2.5 million FFVs to date.

Ford – Front- and all-wheel-drive Fusion with 3.0L V-6 engine paired with a six-speed automatic transmission.  Ford Escape in 2WD or 4WD with 3.0L V-6 engine paired with a six-speed automatic transmission. Select F-150 and Expedition models.

Chrysler — Sebring hard top sedan and convertible with 2.7-liter V-6 paired with a four-speed automatic transmission. Town & County minivan with 3.3-liter V-6 paired with a four-speed automatic transmission.

Dodge — Avenger with 2.7-liter V-6 paired with a four-speed automatic transmission. Grand Caravan minivan with 3.3-liter V-6 paired with a four-speed automatic transmission. 2WD and 4WD Dakota and Ram pickup trucks outfitted with a 4.7-liter V-8 engine and paired with a five-speed automatic transmission.

Other GM — Buick Lucerne equipped with a 3.9-liter V-6 paired with a four-speed automatic transmission. Numerous GMC models paralleling offerings made by Chevrolet trucks. Various Cadillac Escalade models.

Other Ford — Select Mercury Milan, Mariner and Grand Marquis models. Lincoln Town Car and Navigator.

Foreign Manufacturers — Nissan, Toyota, Mazda and Mercedes models.

FFV vehicles were offered as far back as the early 1990s and new models are being added or existing models subtracted depending on model year. Check with the manufacturer to find out affected models or visit the Environmental Protection Agency list for more information.