GM COO says no small car for U.S.

[mikeyb]

http://www.blogcdn.com/www.autoblog.com/media/2008/10/x07cc_ch161_450.jpg

While at the Paris Motor Show, General Motors COO Fritz Henderson told Automotive News that GM has no plans for a minicar in the U.S. While Henderson acknowledges the popularity of the Smart mini/city car, he describes it as a phenomenon and doesn't see a strong case for a similar sized minicar for Chevy in the States. His feelings are that American small-car buyers are happier with something like a Cobalt or Aveo instead. What that means for the future of the Beat (http://www.autoblog.com/2008/07/06/lutz-chimes-in-on-chevy-beat/), Groove or Trax (http://www.autoblog.com/2008/07/28/u-s-to-get-chevy-groove-or-trax-in-2011/) is uncertain, but it doesn't look good from this statement. And with costarring roles in Transformers 2 (http://www.autoblog.com/2008/06/20/chevy-trax-concept-joins-beat-on-i-tf2-i-set/), it seems like not having them in showrooms is just plain stupid. Hopefully AN just got the quote wrong.

[seanmcsean]

That sound you hear is a bullet being fired into GM's foot.

[Kymerik]

What a freakin idiot...Toyota, Honda and Mini cant keep cars on their lots...and GM continues to be arrogant and stupid. Congrats on your merger with the gas gusslers known as Chrysler and let the sinking of the titanic continue. GOOD FREAKIN RIDDANCE GM

[stdntDrvr]

that's what happens when old suits run companies and try to gain support of the public...instead of going to the people who would actually buy the car, the ask their buddies at chevron and shell what they should build/invest money in...

oh a side note, i honestly do not see these lasting...it's more of a fad, really...the single or newly married couple will buy them...pop out a couple of kids and need something bigger. i have 3 and my msp is WAY too small...i've got to pull the sub/amp rack just to fit the freaking stroller in the car...and 2 car seats and a booster seat in the back doesn't work out too well...so, if you look at it that way, it kinda makes sense. sure, they'll sell for a while...and then once people grow out of them, the new car buyers that are taking their place will want something else...whatever is the cool new thing to have. it just so happens that the new thing is being green...who's to say what it will be in another 5-10 years?

[Kymerik]

that's what happens when old suits run companies and try to gain support of the public...instead of going to the people who would actually buy the car, the ask their buddies at chevron and shell what they should build/invest money in...

oh a side note, i honestly do not see these lasting...it's more of a fad, really...the single or newly married couple will buy them...pop out a couple of kids and need something bigger. i have 3 and my msp is WAY too small...i've got to pull the sub/amp rack just to fit the freaking stroller in the car...and 2 car seats and a booster seat in the back doesn't work out too well...so, if you look at it that way, it kinda makes sense. sure, they'll sell for a while...and then once people grow out of them, the new car buyers that are taking their place will want something else...whatever is the cool new thing to have. it just so happens that the new thing is being green...who's to say what it will be in another 5-10 years?

I understand where you're coming from but the average american household no longer pops out that many units. There are studies galore showing a DECLINE in american population growth by leaps and bounds due to people not wanting to be tied down by even 2 kids. Also, theres the crowd that has kids leaving the house, and need to downgrade their cars because they no longer need the suburban to cart around their 20 child household.

[stdntDrvr]

true, but let's face it...the people who will have an empty nest over the next few years will probably not want to downgrade...the average american sees a car as a status symbol...as sad as that is. sure, they might not have a suburban, but they'll jump into a lexus, benz, etc rather quickly because their payments will either stay the same or dropa little...their budget is already set for a car payment, so they're going to continue to spend what they're used to spending/mo...i've seen this happen more than people trading in to save money or gas. speaking from experience, it is extremely rare for someone to walk into a dealership and want to downsize...and if they do 'downsize,' they go from an suv to a mid-size car or from a full-size suv to a crossover...the percentage of people coming from an suv into one of these 'rub it on carpet and it'll go' cars would probably be a single digit or less percentage. with that in mind, why invest millions of dollars in a product that would have the mark-up of maybe $600 that isn't going to sell like people think they will. humans are creatures of habit...sure, there's a market for the micro-machines, but it's not large enough to re-tool plants for. the investment will be far greater than the return, so you have to respect that aspect of it. it's good business. besides, the sale of suv's is up due to the gas prices coming down...which goes to show that even though people don't like getting 14 mpg's...they're willing to give-up gas mileage for comfort.

[SuperStretch18]

There are plenty of lower income people (and trendies for that matter) that need a low cost, fuel efficient people mover. Smart cars are selling well, so there is a market for smaller cars...

[stdntDrvr]

right, and there are manufacturers that are meeting that need...and gm has a car that meets that need...so why invest more money into it? yeah, the aveo is hideous, but that's their car for the segment...there's no need to have 2 or more for the same segment...especially with the low return from it.