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Weekly Recap: Chevy and Alfa plot comeback strategies
Sat, Jun 27 2015Chevrolet and Alfa Romeo were two of the 20th Century's most iconic automotive brands. Chevy embodied America's post-war power and confidence. Alfa was the definition of the stylish Italian sports car. They reached halcyon heights in the 1950s and '60s, before declining precipitously amid new competition, changing consumer tastes, and uneven corporate management. Both say 2015 is the start of something better, and this week Chevy and Alfa laid out ambitious plans and showcased new cars that they hope will make them more relevant this year, and in the coming years. Each brand sits at its own crossroads, and their paths forward are as different as the Chevy Cruze and the Alfa Romeo Giulia. Chevy is still a sales beast, as evidenced by its volume of 4.8 million vehicles sold around the world last year. Chevy executives are fond of saying one of their cars is sold every seven seconds, which illustrates the strength and reach of a car brand that is the fourth largest in the world. "Make no mistake about it, we are a brand for the people," said General Motors North America president Alan Batey. But he wants consumers to want to buy a Chevy for its design and technology, not simply because it's affordable. That starts with all Chevys now featuring a distinctive a family look, with sporty cues from the Corvette or strong lines that riff on the Silverado pickup. "We want people to fall in lust with our cars," said Mike Pevovar, executive design director for Chevy passenger cars. "That initial emotional attraction has to be right on the exterior, and that's where form comes into play." Chevy is also loading up its cars, like the freshly unveiled 2016 Chevy Cruze, with technology to appeal to a younger crowd that prizes connectivity. The Cruze will offer Apple CarPlay and Android Auto with its MyLink infotainment system, and OnStar with 4G LTE and wifi. Seeking out younger buyers is also sound business practice: Millennials now outnumber Baby Boomers as the largest single age group in the United States. Younger buyers also can improve a brand's image, which is another area where Chevy would like to improve. Chevy ranks 82nd on Interbrand's Best Global Brand's list, behind 11 other automakers. Apple is No. 1. "We need our own variation of the Genius Bar," Batey said. 2016 Alfa Romeo Giulia View 3 Photos Meanwhile, Alfa is in different shape.
GM may kill 6 car models as it works with UAW to tackle sales slump
Fri, Jul 21 2017The president of the United Auto Workers union said on Thursday the union is talking with General Motors about the potential threat to plants and jobs from slumping U.S. car sales. GM's response will be more trucks and SUVs, and sources say at least six slow-selling car models may be killed off. "We are talking to (GM) right now about the products that they currently have" at underused car plants such as Hamtramck in Michigan and Lordstown in Ohio, and whether they might be replaced with newer, more popular vehicles such as crossovers, Dennis Williams told reporters. "We are tracking it (and) we are addressing it," Williams added. GM has cut shifts at several U.S. plants this year as inventories of unsold cars have ballooned. Industry analysts said more jobs could be at risk as the automaker wrestles with permanently shrinking production of small and midsized sedans. GM is reviewing whether to cancel at least six passenger cars in the U.S. market after 2020, including the Chevrolet Volt hybrid, which could be replaced in 2022 with a new gasoline-electric crossover model, Reuters has learned from people familiar with the plans. Other GM cars at risk include the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic, sources said. Some analysts have singled out GM's Hamtramck plant in Detroit as one of the most vulnerable because of plummeting car sales. The plant, which opened in 1985, builds four slow-selling models: Buick LaCrosse, Chevrolet Impala, Cadillac CT6 and Chevrolet Volt. In the first half, it built fewer than 35,000 cars, down 32 percent from the same period in 2016, according to suppliers familiar with GM's U.S. production schedule. The typical GM assembly plant builds 200,000-300,000 vehicles a year.COMING ATTRACTIONS: TRUCKS AND SUVS GM must "create some innovative new products" to replace slow-selling sedans "or start closing plants," said Sam Fiorani, vice president of AutoForecast Solutions. The auto maker already has begun to shift future production plans from cars to trucks, according to Morgan Stanley auto analyst John Murphy. He estimates that fewer than 10 percent of the new vehicle models that GM will introduce over the next four years will be passenger cars, with the rest divided among trucks, SUVs and crossovers. GM plans to add production of the new Cadillac XT4 crossover next year to its Malibu sedan plant in Fairfax, Kansas.
2016 Chevy Malibu gets premium looks, hybrid model
Wed, Apr 1 2015The Chevrolet Malibu was once an automotive icon, but its modern reputation is one for underachievement. A new 2016 model seeks to restore the storied nameplate with improved styling, more interior room and a new hybrid version. It debuts Wednesday at the New York Auto Show. Put simply, "the goal was to put Chevrolet back in the midsize car segment," said John Cafaro, the brand's executive director of car design. In a crowded arena with 2.2 million sales up for grabs annually, Chevy has not been a player. Last year, the brand sold 188,519 Malibus, a six-percent decline from 2013, and fewer than half the number of Toyota Camrys and Honda Accords sold. Despite awards from J.D. Power and Associates and the Insurance Institute for Highway Safety, Chevy knew the Malibu needed a big change. New Skin, Lighter Bones The redesign has been in the works for at least three years. Although the Malibu is still based on GM's Epsilon 2 platform, the underpinnings are more derivative of the Impala than the outgoing model. The body structure makes greater use of high-strength steel, which helps reduce weight by 300 pounds. Size is more Impala-like as well, with 2.3 inches more overall length and a 3.6-inch wheelbase stretch contributing to greater interior space. A new skin covers the Malibu's lighter bones, and design language from the Impala gives its sibling sedan a fresher, more upscale appearance. To execute this premium appearance, Chevy turned to 25-year-old designer Jaymer Starbody, a four-year General Motors veteran and graduate from Detroit's College for Creative Studies. He described the new Malibu as having a "wheel-oriented" design, and the car looks poised to pounce from certain angles. Though the 2016 Malibu is the same width as before, designers stretched the creases and angles in the sheetmetal to create a flatter, sleeker appearance. The hood and cowl are lower, and the Malibu's face sparkles with LED running lamps on the top trim levels. Inside, the roomier cabin has a new center stack, satin chrome accents on the interior panel and a console storage area designed for mobile devices. Chevy MyLink with a seven-inch color touchscreen is standard on lower trims, and the top model upgrades to an eight-inch screen. Perforated leather seats and ambient lighting are also available options. The cabin was designed to look high-tech, but still remain easy to use, according to Chevy interior design director Crystal Windham.