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Stunt Show update on backlot tour
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BalooChicago
Well-Known Member
I have never heard that, and highly doubt it. GM has spent a fortune building Saturn as a brand. Opel has little recognition amongst American consumers, and what recognition there is tends to be bad. That could be GMs answer to Merkur however...
http://www.businessweek.com/magazine/content/03_51/b3863066.htm
Commentary: Can Opel Make Saturn Sparkle?
GM is turning to its European cars for salvation. It may be the last best hope
For years now, General Motors Corp. (GM ) has tried to drag its Saturn Div. into the black. While Saturn's sales have rebounded somewhat from the lows of the late 1990s, they aren't rip-roaring. With only three models, Saturn sales will drop 3% this year, to about 273,000 vehicles roughly where they were a decade ago. Meanwhile, losses will hit roughly $1 billion. So why bother investing in Saturn if it doesn't make money? For one thing, Saturn remains one of the rare U.S. carmakers to attract import buyers. For another, consumers love its no-pressure sales tactics. That's why Robert A. Lutz, GM's vice-chairman for product development, dismisses critics who say Saturn ought to be shut. He calls revitalizing Saturn "one of our top priorities."
Problem is, GM can't afford to lavish money on fixing Saturn. Instead, BusinessWeek has learned, the auto giant is turning to its European subsidiary, Adam Opel (GM), for salvation. GM is already relying more on Opel, using the platform for its Vectra midsize sedan to build a replacement for Saturn's slow-selling L-series in 2006. More important, starting in 2008, Opel will develop as many as three models it will sell under its brand at home and as Saturns in North America. The idea is to share development costs while bringing European sophistication to Saturn's faded brand. Saturn marketers have said they'd like to position the company between Volkswagen and Honda Motor (HMC ). It's a risky plan, but one that GM badly needs to get right. Says a GM exec: "If this makes it, Saturn will survive."
The strategy, which the GM board may approve in January, faces big hurdles. The Saturn cars would be engineered in Germany and built in the U.S. While that makes sense on paper, previous efforts by GM, Ford Motor Co. (F ), and others to create cars for different global markets built on shared platforms have been costly failures. And GM's efforts to sell rebadged Opels in the U.S. have fizzled.
Moreover, Opel itself has been in a slide for years, raising questions about whether it has the ability to create cars jointly for Saturn. In the 1990s, after GM had the German company develop cars for new markets in South America and Asia, it lost its focus in Europe. Quality slipped and Opel missed big shifts as the market moved to diesel, wagons, and convertibles. Now, it's starting to recover on the strength of some new vehicles; GM's shift of new car development for emerging markets to its Asian affiliates has also helped. Losses are shrinking, quality is up, and Opel's European market share is expected to hit 9.6% next year, up from 9.3% in 2003. Says James N. Hall, an analyst at AutoPacific Inc: "Opel's products are getting better." Still, forcing Opel to again take on global design chores could put that recovery at risk.
GM also must avoid repeating mistakes like those that doomed the current Saturn L-Series sedan, launched in 1999. Opel engineered the car using the underpinnings of its Vectra midsize car. While the Vectra was a solid seller in Europe, GM restyled it to look like the bland Saturn S-Series compact. GM also softened the ride, eliminating most of the sporty driving dynamics that draw buyers to German cars. The upshot: With neither the desired cachet of a Volkswagen nor the unquestioned quality of Japanese cars, the L-Series bombed.
This time, GM insiders say, it will be done differently. For the cars set to come out starting in 2008, Opel designers will work with their U.S. colleagues to fashion cars from scratch. But most of the work will be done in Europe. The new models will include a small SUV, a replacement for the Saturn Ion compact, and a new midsize car that resembles the Opel Vectra. GM sources say future Saturns will feature Opel's European styling and driving performance so they will stand out from GM's U.S. models.
Still, 2008 is a long way away. Meanwhile, GM is adding new cars to fill out Saturn's lineup. Next year, the Relay, a U.S.-designed minivan will appear. The following year, Saturn will likely roll out a small sports car built on the same platform as the new Pontiac Solstice roadster, but styled in Europe. And besides replacing the L-series with the Vectra platform, Saturn will sell a crossover SUV engineered and designed in the U.S.
GM's strategy for Opel isn't perfect, but it beats the alternative. "It's better than what Saturn would have had any other way," says Hall. If Opel can give Saturn some good cars, Saturn may once again become a viable American brand.
Commentary: Can Opel Make Saturn Sparkle?
GM is turning to its European cars for salvation. It may be the last best hope
For years now, General Motors Corp. (GM ) has tried to drag its Saturn Div. into the black. While Saturn's sales have rebounded somewhat from the lows of the late 1990s, they aren't rip-roaring. With only three models, Saturn sales will drop 3% this year, to about 273,000 vehicles roughly where they were a decade ago. Meanwhile, losses will hit roughly $1 billion. So why bother investing in Saturn if it doesn't make money? For one thing, Saturn remains one of the rare U.S. carmakers to attract import buyers. For another, consumers love its no-pressure sales tactics. That's why Robert A. Lutz, GM's vice-chairman for product development, dismisses critics who say Saturn ought to be shut. He calls revitalizing Saturn "one of our top priorities."
Problem is, GM can't afford to lavish money on fixing Saturn. Instead, BusinessWeek has learned, the auto giant is turning to its European subsidiary, Adam Opel (GM), for salvation. GM is already relying more on Opel, using the platform for its Vectra midsize sedan to build a replacement for Saturn's slow-selling L-series in 2006. More important, starting in 2008, Opel will develop as many as three models it will sell under its brand at home and as Saturns in North America. The idea is to share development costs while bringing European sophistication to Saturn's faded brand. Saturn marketers have said they'd like to position the company between Volkswagen and Honda Motor (HMC ). It's a risky plan, but one that GM badly needs to get right. Says a GM exec: "If this makes it, Saturn will survive."
The strategy, which the GM board may approve in January, faces big hurdles. The Saturn cars would be engineered in Germany and built in the U.S. While that makes sense on paper, previous efforts by GM, Ford Motor Co. (F ), and others to create cars for different global markets built on shared platforms have been costly failures. And GM's efforts to sell rebadged Opels in the U.S. have fizzled.
Moreover, Opel itself has been in a slide for years, raising questions about whether it has the ability to create cars jointly for Saturn. In the 1990s, after GM had the German company develop cars for new markets in South America and Asia, it lost its focus in Europe. Quality slipped and Opel missed big shifts as the market moved to diesel, wagons, and convertibles. Now, it's starting to recover on the strength of some new vehicles; GM's shift of new car development for emerging markets to its Asian affiliates has also helped. Losses are shrinking, quality is up, and Opel's European market share is expected to hit 9.6% next year, up from 9.3% in 2003. Says James N. Hall, an analyst at AutoPacific Inc: "Opel's products are getting better." Still, forcing Opel to again take on global design chores could put that recovery at risk.
GM also must avoid repeating mistakes like those that doomed the current Saturn L-Series sedan, launched in 1999. Opel engineered the car using the underpinnings of its Vectra midsize car. While the Vectra was a solid seller in Europe, GM restyled it to look like the bland Saturn S-Series compact. GM also softened the ride, eliminating most of the sporty driving dynamics that draw buyers to German cars. The upshot: With neither the desired cachet of a Volkswagen nor the unquestioned quality of Japanese cars, the L-Series bombed.
This time, GM insiders say, it will be done differently. For the cars set to come out starting in 2008, Opel designers will work with their U.S. colleagues to fashion cars from scratch. But most of the work will be done in Europe. The new models will include a small SUV, a replacement for the Saturn Ion compact, and a new midsize car that resembles the Opel Vectra. GM sources say future Saturns will feature Opel's European styling and driving performance so they will stand out from GM's U.S. models.
Still, 2008 is a long way away. Meanwhile, GM is adding new cars to fill out Saturn's lineup. Next year, the Relay, a U.S.-designed minivan will appear. The following year, Saturn will likely roll out a small sports car built on the same platform as the new Pontiac Solstice roadster, but styled in Europe. And besides replacing the L-series with the Vectra platform, Saturn will sell a crossover SUV engineered and designed in the U.S.
GM's strategy for Opel isn't perfect, but it beats the alternative. "It's better than what Saturn would have had any other way," says Hall. If Opel can give Saturn some good cars, Saturn may once again become a viable American brand.
BalooChicago
Well-Known Member
Thanks for the article. It does, however, say nothing about "Saturn being currently phased out, to be replaced with Opel USA".
argh.. lol. That was the only article I could find in regards to it... several months ago I read one that stated in 2008, Saturn was to become Opel USA.... this was the closest one I could find.
No worries though... I'll keep searching for it.
No worries though... I'll keep searching for it.
grr.. since I can't find the article that I had originally read, I retract my previous statement...
however, judging by this article.. it would make Saturn a third, US based Opel/Vauxhall sibling...
what would this mean? If we could get the Speedster over here.. :sohappy: :sohappy:
however, judging by this article.. it would make Saturn a third, US based Opel/Vauxhall sibling...
what would this mean? If we could get the Speedster over here.. :sohappy: :sohappy:
Pirate665
Well-Known Member
. I was hopeing for a really cool show. And alot of domestic (even though thanks to our wonderful manufactoring rules, aren't really domestic) cars. Like Fords and stuff. Guess my dreams of a Corvette crashing into a Honda are over... wait... I saw that the other day... nevermind. But still, I'd like to see some cars we could recognize.
(If I sound stupid, forgive me. Been a WDWMagic Member since January, but never posted until now. First time forum user.)
(If I sound stupid, forgive me. Been a WDWMagic Member since January, but never posted until now. First time forum user.)
tenchu
Well-Known Member
I thought the vectra was due to be replaced sometime soon anyway? I know it's had numerous restyles, but it first started over 10 years ago surely.
And believe me, saturn really wouldn't have to do much to make a vectra bland. I'd have thought the only ones they'd soften the suspension on would be the sportier GSi models.
Vectra's are the original rep-mobiles.
Bring in the holdens i say! (Rob knows what I'm talking about :animwink: )
ArchiDanDisney
Member
I have heard absolutely nothign along those lines. The only thing i have heard is that opel vehicles may be added to the saturn line.
captainbuzzy
Active Member
From the reports that I have. Saturn will use Opel as well as other GM platforms a basis for upcoming models. The development costs for a new platform are so high that selling multiple variants is necessary to achieve profitable volumes. VW is excellent at this with the New Beetle, Golf, Seat Leon, Jetta, Audi A3, Audi TT, Skoda Octavia all coming from the "Golf" platform. The economies of scale are great and each product is tailored to meet the Brand image and they can be built along side each other filling plant capacity.
Saturn showed a concept called the Curve at the Detroit Auto Show called the Curve that is built off the same platform that the Vauxhall VX Lightning, Opel Speedster and the Pontiac Solstice will be. Exciting stuff for Saturn really because to make the platform viable GM has to have variants to meet the necessary volume for profitability. Most likely there will be a Saturn Speedster except that it will be a Saturn with Satun brand charateristics. Same as the Vue and the Chevy Equinox. Saturn can no longer afford to produce stand alone platforms as no automaker can. The real question is are there enough people still willing to pay for what the Saturn Brand (image and features/options, stying) delivers.
Presently it looks like Saturn is staying put.
For the future, the jury is still out. But we need to look no further than Oldsmobile to tell you how sacred a brand is to GM in the face of profits.
Saturn showed a concept called the Curve at the Detroit Auto Show called the Curve that is built off the same platform that the Vauxhall VX Lightning, Opel Speedster and the Pontiac Solstice will be. Exciting stuff for Saturn really because to make the platform viable GM has to have variants to meet the necessary volume for profitability. Most likely there will be a Saturn Speedster except that it will be a Saturn with Satun brand charateristics. Same as the Vue and the Chevy Equinox. Saturn can no longer afford to produce stand alone platforms as no automaker can. The real question is are there enough people still willing to pay for what the Saturn Brand (image and features/options, stying) delivers.
Presently it looks like Saturn is staying put.
For the future, the jury is still out. But we need to look no further than Oldsmobile to tell you how sacred a brand is to GM in the face of profits.
ArchiDanDisney
Member
I think you are mistaken, its a strong brand for the 19-25 age level. They target the affordability towards college students.
phlydude
Well-Known Member
Fresh from today's Wilmington DE News Journal
872 workers losing jobs at Saturn plant
'Indefinite' layoffs - nearly 75% of work force - start in June
By LULADEY B. TADESSE
Staff reporter
05/21/2004
General Motors Corp. will lay off 872 workers at the Saturn plant near Newport next month, nearly three-quarters of its assembly line work force.
GM said the "permanent reduction" of workers will begin as early as June 7, according to a letter the company filed with the state Department of Labor. On Thursday, GM officials called the layoffs "indefinite" and said they will take place in mid-June.
Some workers could be called back to make the Pontiac Solstice, scheduled for production at the plant next summer, and an unnamed Saturn sports car the following year, said Dan Flores, spokesman for GM Manufacturing. But he did not disclose how many might be called back or when.
David Myers, president of United Auto Workers Local 435, did not return phone calls Thursday.
Laid-off employees receive unemployment benefits and pay equal to 83 percent to 95 percent of their base wages for up to 42 weeks, after which they join the company's jobs bank. Employees in the jobs bank are paid their full salary. The average wage of an assembly line worker at the plant is $26 an hour.
Workers in the jobs bank are eligible for transfer to other GM plants. If an employee refuses four transfer offers, he or she is no longer employed by the company. Workers can remain in the jobs bank until the union contract expires in the fall of 2007.
The layoffs come as GM moves to discontinue the Saturn L-series sedan and wagon this summer, a year earlier than planned. Last year, the plant was shut down for 12 weeks because of weak sales. Also last year, the plant laid off 400 workers as it went to one shift. Some of those workers have since been transferred to other GM plants, including in Baltimore.
The Newport-area plant now employs 1,200 assembly workers and 645 others, including about 500 already in the jobs bank.
"Ultimately, we couldn't justify continuing the product because the market didn't want the product," Flores said.
The end of the L-series and the upcoming idling of the plant for more than 10 months is expected to have an impact beyond plant employees. The Saturn plant contributed about $315 million to the state's economy in direct and indirect jobs last year, according to the Delaware Economic Development Office.
Five companies supply the plant and employ a total of about 260 workers. Some already are laying off workers because of the discontinuation of the L-series. One supplier, Johnson Controls Inc. in New Castle, plans to lay off its 42 employees by July and shut down.
Still, state officials and some workers remain optimistic about the future of the Newport-area plant because GM is investing nearly $50 million to prepare the plant for a set of niche cars based on a new platform called Kappa. Besides the Solstice, the company has said it will build the new Saturn sports car at the plant in 2006.
"We have been left with a strong sense that they are going to bring back workers for the Solstice and more workers for the following model," said Judy McKinney Cherry, of the Delaware Economic Development Office.
Earl Benningfield of Smyrna was among the 400 plant workers laid off last year. He has transferred to a GM plant in Baltimore, but hopes to return to work at the Delaware plant.
"They are getting new products," Benningfield said. "I think it is very promising to Wilmington."
Reach Luladey B. Tadesse at 324-2789 or ltadesse@delawareonline.com.