GM Hides Fuel-Efficient Small Cars and Trucks -- in Brazil

[cwerdna]

(actually originally read this on detnews.com)
http://www.washingtonpost.com/wp-dyn/conte...51900550_2.html

You can see some of the vehicles mentioned at http://www.chevrolet.com.br.

[JackDodge]

<div class='quotetop'>QUOTE(cwerdna @ Jun 18 2006, 04:57 AM) [snapback]272986[/snapback]</div>

(actually originally read this on detnews.com)
http://www.washingtonpost.com/wp-dyn/conte...51900550_2.html

You can see some of the vehicles mentioned at http://www.chevrolet.com.br.
[/b]

Darn it, you scooped me on this one. It appeared in the Detroit News too:

http://www.detnews.com/apps/pbcs.dll/artic.../606180301/1148

It's interesting that the biggest reason why we don't see these small, fuel-efficient cars from GM is because the unions don't want them here.

[cwerdna]

<div class='quotetop'>QUOTE(JackDodge @ Jun 18 2006, 04:51 PM) [snapback]273207[/snapback]</div>

It's interesting that the biggest reason why we don't see these small, fuel-efficient cars from GM is because the unions don't want them here.
[/b]

I wonder what the union stipulations are. After all, the Aveo is made by Daewoo in Korea and the Pontiac GTO is made by GM owned Holden in Australia. I doubt that US UAW is directly connected w/any auto unions in those countries.

[JackDodge]

<div class='quotetop'>QUOTE(cwerdna @ Jun 18 2006, 11:07 PM) [snapback]273277[/snapback]</div>

I wonder what the union stipulations are. After all, the Aveo is made by Daewoo in Korea and the Pontiac GTO is made by GM owned Holden in Australia. I doubt that US UAW is directly connected w/any auto unions in those countries.
[/b]

I can only guess; perhaps it's a quota type issue where the company had to negotiate with the union that it would only import some cars from other countries. The main sticking point, of course, is that if it's imported, then UAW members aren't building it. Another question is just how much longer that quota will hold, given the union's steady loss of membership and clout. I don't know what the union's logic is but the consequence is pragmatic: GM can't import fuel-efficient cars from Brazil so if you want a fuel-efficient car you have to buy it from a foreign company. With high gas prices, people want fuel-efficient cars so they buy Toyotas and GM loses market share. Lower market share means lower profits which causes lower union membership through buyouts so they end up losing anyway.

[larkinmj]

GM also makes a 7-passenger MPV called the Zafira. It's sold as an Opel in Europe, and as a Chevy in Asia and Mexico (I don't know about Brazil). It's small, efficient, nicely styled- but we can't buy vehicle like this in the U.S.!

[dipper]

You have to remember, GM is there to try to sell you expensive cars. They are just hoping the President is going to fix our fuel cost issue to continue their profit making ways...

But really, GM's plan cannot exist by selling small cars here in the US (especially our non-acceptance of GM's small car products). The profit margin is already small in the small car market. And adding on top of killing profits to sell them cheap (most likely at a lost), it does not make business sense.

Of course, GM could learn from Toyota/Honda and improve their quality... But that is too challenging for them to achieve that goal.

[EricGo]

The article is lacking in specifics.

What is the city mpg ?
What are the emission ratings ?
How much do they cost ?
How reliable are they ?
How well are they competing against their competition ?

addendum: Brazil's domestic auto economy