Article: Tiny Aveo a big UAW challenge - workers' prez doubting profitability

[MetroMPG]

(First: Why the *&% do they always insist on calling the Aveo "tiny"??? Does every $%&% headline editor drive a Suburban!??)

Here's the issue in a nut shell:

"I don't know if it is a fair expectation to be able to get the Aveo to profitability," the UAW president told the Free Press."

Last year, GM agreed to build the Aveo in Michigan instead of importing it from a lower-wage country in exchange for UAW concessions ahead of its bankruptcy.

The car will launch in mid-2011 as the smallest assembled in the U.S. -- making it the most intense test of Detroit automakers' abilities to build small cars profitably in their home country with union labor.

Read the full article: http://www.freep.com/article/20100923/B ... -challenge

Kind of sucks for the production workers' boss man to be raining on GM's parade before the first float has even left the staging area, no?

Sounds like ...

1) He's p i s s s e d that labour concessions were made in the heart of GM's bankruptcy meltdown, and he wasn't at the table to get his 2 cents in

plus...

2) He's resentful that some of the fat profit margin vehicles (SUV's and pickups) are currently assembled in Mexico.

Lots of comments on the article here:

http://www.freep.com/comments/article/2 ... -challenge

[petrified.rabbit]

that story is kind of bias, ford had two "new" compact cars released last half of the year while gm will still selling the "same old" aveo, and now they screwed up with how long it took for the sonic to hit the market, it lost the interest of press hype to carry a sales boom.

The cutbacks needed to occur though, as long as they are corporate and not work force.

[petrified.rabbit]

i dont think the sonic will die, but the over lap should die.

GM to Release 25 New Models by 2011 (The Torque Report)

with the over 20 already available. streamlining is what makes the companies with out problems succeed. vw, bmw, mercedes, ford, even chrysler has figured it out. you dont build your own competition (if you offer a better car, why build the other?). You build your cars to be better than the other companies.

[rodo]

i dont think the sonic will die, but the over lap should die.

Sonic and Cruze are both new models, share some engines, and overlap on price... which one wins if the GM line is really trimmed to a width of 14 models (marques) by 2018? Many doubts that this will really happen, but just assume Barra is quoted accurately (and being honest/realistic). Doesn't seem like there would be space for both. If the Chevy line does get extended on this end with the Spark, the Sonic will then be overlapped on both sides.

Just curious if anyone knows where the Sonic/Aveos sold outside of the Americas will be built?

[petrified.rabbit]

honestly, i think the aveo will be the hatchback, the cruze will be the sedan, the will not bring the spark over (unless price point and MPG are really needed). And they will have 1-2 bigger cars. And 2 suvs. That would be chevy with 7 different cars.

[Ratchet104]

Don't forget the pickups. The Silverado is a strong Chevy seller. I'd Say the cruze/sonic hb, Impala, Equinox, Tahoe, Suburban, & Silverado (in 1500-3500)

[petrified.rabbit]

Tahoe, Suburban, & Silverado (in 1500-3500)

for the most part, that is "one" vehicle. just different wheel bases, and suspensions.

[daug1502]

they will likely keep atleast one vehicle in each class, wonder where the monte carlo, camaro, and corvette sit in all this?

[daug1502]

Good point rabbit, i dont think the full size trucks or suvs have much to worry about, mostly the small to midsize vehicles that tend to be more varied.