Hmmm … will we ever see it here … my Korean crystal ball is a bit flaky on that one … as it is on most things … but some experts are suggesting that we will never see it here in Australia. So what are we missing out on because GM thinks that the Holden Cruze is all we really need down here in their unofficial colony?

GM describe the Cadillac ATS as a compact luxury sports sedan designed to take on the likes of BMW in what they also describe as the world’s most significant luxury car segment. Somehow that seems to say it all as far as the Australian market is concerned.

The body
The wheelbase is 2775mm with very short overhangs front and rear and the ATS rides on 17-inch wheels as standard with 18-wheels as an option.

LED lighting is a feature, and aerodynamic drag is reduced by active grill shutters that close once a pre-set highway speed is reached.

Engines and transmission
Weighing in just 1,542kg the Cadillac ATS is certainly not a heavy-weight by any means and it appears that Cadillac intends to offer the ATS in most markets with a choice of just two four-cylinder engines … both with a capacity of 2.0-litres.

One of those four-cylinder engines will be turbo-charged and GM says that it will churn out an impressive 201kW of power.

For the American market the Cadillac ATS will also come with the option of Cadillac’s 3.6-litre V6 and GM estimates that the V6 engine will produce around 237kW of power. Manual and automatic transmissions will be available across the range for both rear-wheel drive versions and a planned all-wheel drive version.

Suspension
GM understands that they need more than just power and fuel economy to compete in the compact luxury market so the ATS will come with five-link rear suspension, multi-link double pivot front suspension, sports suspension that the driver can adjust, variable effort steering gear and four-channel ABS with performance brakes.

The interior
The interior of the new Cadillac ATS features real wood … yes … real wood along with plated metal and carbon fibre trim. The instrument panel and driver’s controls have all been carefully placed to enhance the driving experience.

And perhaps that’s why we Australian’s are almost certainly not going to see the Cadillac ATS down here. It might be a rear-wheel drive compact and lots of Australians want one but GM is talking about a car that will tackle the premium market with a premium price tag … something that most of us would not be prepared to pay for.

So guys you better resign yourselves to years of Holden Cruze and Cruze derivatives because it looks as though that’s what GM has planned for us Vegemite lovers.

GM is taking on the Chinese car makers in their own market with a locally produced car that will be exported to other parts of the world and they’re doing it with the Chevrolet brand.

The Chevrolet New Sail sedan is the first passenger car created in China by a Sino-foreign joint venture. The new small car was developed by Shanghai GM and the Pan Asia Technical Automotive Center (PATAC), both GM-SAIC joint ventures.

Shanghai GM offers five variants of the New Sail with the base model priced around RMB 60,000 (US$8,800). This marks a breakthrough in the under-RMB 70,000 (US$10,300) small car segment, where Chinese brands have traditionally been dominant.

“Our mission has always been to enable more individuals and families to realize their dream of owning a car,” said Kevin Wale, President and Managing Director of the GM China Group. “With the New Sail, we are setting a new standard for the lower-end small car segment while fully living up to the global standards of Chevrolet, one of the world’s leading vehicle brands. The fact that the New Sail will be exported is a testament to the capabilities of our product development organization in China.”

Class-Leading, Fuel-Efficient Powertrains
The New Sail is available with a choice of class-leading 1.2-liter S-TEC II and 1.4-liter S-TEC III engines. The 1.2-liter engine achieves best in class fuel economy under comprehensive road conditions of 5.7L/100 km and it generates power of 53.1 kW. That’s enough gruntto power the New Sail from 0 to 100 km/h in 12.9 seconds. The 1.4-liter engine cuts a full second off that time and has fuel economy under 5.9L/100 km.

The engines incorporate the Variable Geometry Intake System (VGIS), which provides smooth power delivery and torque across all engine speeds. Lightweight materials are used in the engine, transmission and body, further increasing fuel efficiency.

The optimized friction coefficient in the transmission and tire rolling coefficient reduce energy loss caused by mechanical operation. In line with Shanghai GM’s Drive to Green strategy, both engines meet China’s Phase IV emission standard (as well as the Euro IV standard) and can be upgraded to meet China’s Phase V emission standard.

The Chevrolet New Sail comes with a five-speed manual transmission.

Stylish Exterior, Spacious Interior
The New Sail features Chevrolet’s trademark horizontal split grille with the gold Chevrolet emblem showcased in the middle. Three muscular sidelines provide the car a three-dimensional look. A unique short-in-front, long-in-back suspension brings a sporty edge to the exterior. The streamlined shape of the vehicle adds a dynamic styling element while reducing drag, for lower fuel consumption.

The New Sail is initially available in six exterior colors: Crescent Silver, Jasmine White, Sky Blue, Coral Red, Amber Orange and Starfish Blue.

The interior is likewise unique and all Chevrolet. It includes the brand’s twin-cockpit design as well as a flexible, modern central control panel equipped with a radio, CD player and MP3 interface. Designers have added a sporty touch through a double-digital screen and chrome plating.

The New Sail’s adoption of a central fuel tank, a short front and rear suspension, and arch-shaped doors maximizes interior space for up to five people. There are 24 interior storage compartments for added convenience.

Safety
The New Sail is expected to achieve four stars in China New Car Assessment Program (C-NCAP) testing. The New Sail’s safety cage construction with crumple zones offers class-leading passenger protection.

A steel frame surrounds the fuel tanks, for added safety. Dual air bags in front, a retractable steering column, antilock brakes with electronic brake-force distribution, child safety locks and a stronger child seat system are standard. The New Sail also offers outstanding pedestrian protection.

The driver enjoys maximum visibility courtesy of the New Sail’s large windshield, seats designed for local users and no-blind-spot rearview mirror.

Developed Emerging Markets
The New Sail was jointly developed by Shanghai GM and PATAC off a new architecture in accordance with GM’s Global Vehicle Development Process (GVDP) and worldwide standards for engineering and quality.

The development team for the New Sail factored in local climate and driving conditions as well as local fuel quality and Chinese driving habits in the new model’s design. The vehicle’s assembly followed the DTS global C-BOB (best of best) standard.

The New Sail was put through more than 2 million kilometers of testing in extreme hot and cold weather conditions.

To ensure that parts and components meet Chevrolet’s international standards in terms of quality, service, technology and price, 95% of components were supplied by members of GM’s global supply chain, with more than 40 percent coming from industry-leading component groups or their joint ventures.

GM’s global quality management processes and regulations were also applied in R&D, procurement, quality recognition and manufacturing. Shanghai GM’s paint shop adopted Generation 6 Zero-Emission Painting for the New Sail. The vehicle meets all European Union environmental protection standards in terms of heavy metal proportion and the recycling rate of the full vehicle.

World-class Chevrolet Gold Tie Service will be offered to New Sail buyers by Shanghai GM. Approximately 380 dealers in more than 200 cities across China will offer customers nine free services as well as 24-hour emergency assistance.

According to Shanghai GM President Ding Lei, “Several years ago, Shanghai GM made the strategic decision to broaden our customer base by developing the New Sail. We improved cost efficiency while setting new quality, fuel efficiency and value standards for economical family cars. With the arrival of the New Sail, we now have an entry in every major passenger car segment.”

That all changed yesterday when General Motors became the first car maker to take that next step.

General Motors will invest approximately $246 million in the Baltimore Transmission plant to construct a high volume electric drive manufacturing facility that will in 2013 produce U.S. designed and manufactured global rear-drive electric motors, a core technology for hybrids and electric vehicles. The plant will be the first electric motor manufacturing facility in the U.S. operated by a major automaker.

By bringing this capability to the U.S., GM will create approximately 200 jobs. Local and state incentives, along with the Recovery Act funding announced in August 2009 by the U.S. Department of Energy, are helping to make this facility expansion and job creation possible.

“Electric motors are the engines of the future,” Stephens said. “By designing and manufacturing electric motors in-house at Baltimore Transmission, we can more efficiently control the design, materials and production processes. It will also enable us to lower costs and improve performance, quality, reliability, and manufacturability of the electric motors we use in our vehicles.”

Stephens also noted the importance of the new technology to the nation’s and Maryland’s overall economic growth.

“Electric motors are driving the next wave of automotive growth,” Stephens said. “The expansion of the Baltimore plant will generate a significant influx of money and jobs into the greater Baltimore area, creating U.S.-based manufacturing jobs.”

Through job retention and creation, Baltimore Transmission, which opened in 2000, will employ close to 400 people.

Nationally, including immediate project jobs, manufacturing jobs and the impact on suppliers and local communities, the investment is estimated to retain or create about 1700 jobs.

“Ultimately this expansion, its direct economic impact, its contribution to GM’s capabilities, and its impact on the vehicles we drive will be a model of what a lean, energetic, creative General Motors is capable of doing and contributing, “ Stephens said.

Longer, wider and more spacious than the current production Aveo, the Aveo RS showcases the what Chevrolet suggest as the car’s upscale-looking design cues both inside and out, and presents the many personalization options potentially available on the next-generation car.

“We hope the Aveo RS show car will demonstrate that we are as serious about redefining the Aveo and its place in the small-car segment as we were about reinventing the Malibu,” said Jim Campbell, Chevrolet general manager.

Bodywork
The Aveo RS show car, finished in electric Boracay Blue, wears global Chevrolet design cues such as the dual element grille, round taillamps and fender flares, but there are also low openings and a lower mouth trimmed in a combination of brushed and polished aluminum.

Outboard fog lamps are integrated into an exaggerated brake-cooling inlet that flows into the front fender flares, creating an aggressive-looking face.

Exposed headlamps, with their brushed aluminum structural surround, are inspired by the designers’ affection for motorcycles.

The sleek side profile is characterized by uninterrupted body side lines, a high beltline and low roofline. The side mirrors with amber-colored turn signal indicators carry the same shape as the car and seemingly disappear into the profile.

At first glance, the car actually looks like a three-door hatch because the rear door handles are discreetly located in the “C”-pillar area.

“The Aveo RS show car demonstrates how progressive design can inject personality into a small car,” said Michael Simcoe, executive director, North American Exterior Design. “We want customers to see it and have an emotional reaction to it.”

No performance-minded car looks the part without large wheels and tires. The Aveo RS show car’s wheels are 19-inch, five-spoke with a gun metal metallic finish Chevrolet logo. The wheel openings reveal large Boracay Blue brake calipers.

The rear of the show car continues the sport theme, with an integrated spoiler that flows from the roof, a center-mounted exhaust and chrome exhaust tips. The exposed motorcycle-inspired rear tail-lamps feature tinted aluminum housings and a discreet Bowtie logo.

Interior
With its matte black interior highlighted by gloss black, metallic and blue accents, the Aveo RS show car reflects as much attention to detail as the exterior.

The Boracay Blue theme continues inside, with accent stitching across the dual cockpit instrument panel, front and rear door insert, steering wheel rim, gear shift boot, parking brake, leather seat bolster and even the floor mats. The integrated center stack holds the gearshift, HVAC controls and the sound system, including a USB port.

Ice-blue backlighting on the audio display, telltale indicator screen and knobs augments the blue stitching.

The motorcycle inspiration also carries inside, with a round, analog tachometer set within an asymmetrical LCD readout also trimmed in milled metal with round cutouts; and round, aluminum-trimmed side vents.

The interior is as functional as it is stylish, with storage compartments in the center stack and doors. The rear seats fold
flat for carrying larger items.

Performance
The Aveo RS show car is powered by the same efficient 138-horsepower (103 kW) 1.4L I-4 Ecotec turbocharged engine that
will be available in the upcoming Chevrolet Cruze.

A six-speed manual transmission is included to ensure the car will provide a spirited driving experience. Actual performance figures are yet to be announced.

That restructuring includes selling off a large chunk of GM Europe … almost certainly to a Canadian company … closing a number of plants in the US and putting others into temporary shut down.

While we’re hearing lots of encouraging words from Holden and our politicians about the future of Holden not much information seems to be coming out of the United States at the moment. So don’t be surprised to see Holden end up being sold off in the near future … or maybe even closed.

At the moment the automotive industry is in such turmoil that there are no guarantees … even for a national icon like Holden.

However at the end of May talks between GM and Fiat broke down when the Fiat CEO claimed that he was unable to get full access to the financials of Opel. That doesn’t seem to have worried GM too much because, waiting in the wings was the Canadian spare parts maker Magna.

Magna … with financial backing from Russia is now set to take control of GM Europe.

General Motors has around 6,000 new car dealers spread across the country and plans to terminate up to 2,000 of them and the official announcement is expected soon.

Chrysler is said to be planning to shed around 1,000 new car dealers but an announcement by the manufacturer is not imminent.

The word on the streets is that we could see some Holden dealers disappear soon too. Just when that’s likely to happen is not clear but if it is going to happen then between now and the end of June is a good bet.

 

Reuters is reporting that Ford’s sales in January are down 42.1 percent. General Motors has reported a drop in January sales of 49 percent, Toyota has dropped 34 percent and Nissan is down around 30 percent.

Now let’s wait and see what the Australian industry’s figures look like.

The Mini E will cover around 250km … obviously it’s a much smaller car than the Caddilac but who will want a car that covers just 64km before it needs to be plugged in again?

McAlinden also suggests that GM is not in a position to meet the initial loan conditions set down by the government but the conditions will be changed so that GM can keep the money.

However his view of Chrysler’s future is not so good. Chrysler got $4 billion from the government but already owed $6 billion to its suppliers so how does it go forward with a $2 billion dollar debt hanging around its neck?

That’s something that is anyone’s guess.

And amongst those that are holding their breath waiting to see what happens are all the Chrysler dealers who are, on average, selling less than 40 vehicles a month. That may sound like a lot of cars but dealers don’t make a lot of money on the sale of a new car … some suggest that the dealers only make $1,000 for each sale and overheads are high.

We haven’t seen the end of the gloom and doom in the American car industry and before long that gloom and doom will be spreading to Australia.

At the moment there are some big discounts being offered but they’re on 2008 plated models. The experts suggest that the discounts will disappear when the 2009 models appear but if the local market is down now why will people be prepared to buy a car without a discount?

For Australia it seems that March is the crunch time.

In the short-term it’s probably a good thing too because it really did look as though Congress wanted to tip a whole pile of money down a bottomless pit and it would have had little effect on the ability of the Big 3 manufacturers to survive.

Ford really didn’t want the money on the terms that the Government wanted to impose. Ford is already cashed up and is working hard to actually build cars that people want to buy. The number of hybrids that are currently in production or on the drawing boards is a credit to the company and will benefit the environment and the consumer.

General Motors … well they wanted more money for themselves than what Congress was prepared to give all three manufacturers. Sure they have some great hybrids on the market and even have a full electric car coming down the line but there’s something fundamentally wrong with a company of that size that finds itself in the mess that it’s in and we’re probably better off without it.

I’ve seen reports that GM is already working with its lawyers to arrange  Chapter 11 Bankruptcy protection but you have to wonder just how long they have left.

Chrysler … now here’s a company that just has to be totally clueless and shows it. They’re in a financial mess and plan to close a whole bunch of plants in the next few months … which is a good thing. They also have two hybrids about to hit the market place … but both aren’t in models that sell in big numbers and that’s probably just as well.

You see, among the plants that Chrysler plans to close are the ones that produce those two hybrids so no sooner will they go on sale than the plants will close and the hybrids will go out of production leaving Chrysler with no hybrids on showroom floors and none that are even close to production.

How could a company like Chrysler be so out of touch with reality?

I guess that all along I was wondering why anyone in their right mind would want to spend $14 billion dollars to prop up some companies that were totally out of touch with everything that’s going on around them.

I’m sure someone will pull a rabbit out of the hat and the deal will be back on but I really can’t see that as being good for anyone because it’s simply perpetuating a failed business model and the current mess will only resurface a few years down the track.

The big three manufacturers in the US are reported to be planning on approaching the White House for a bail out similar to what the banking and finance industry received recently.

And globally Toyota has slashed its profit forecast by 68%.

Can things get any worse for Ford and General Motors? I’m sure they can and I’m sure they will.

Soon though there’s a very strong possibility that the three may be reduced to just two as rumours abound that General Motors and Chrysler are engaging in merger talks. Cerberus Capital Management – the company that owns Chrysler are denying that such talks are taking place but the rumours just won’t go away.

Reuters is also reporting that one of their sources is suggesting that Cerberus is also in talks with “other parties including Renault-Nissan”.

Official VFACTS data released today by the Federal Chamber of Automotive Industries (FCAI) show that 80,938 cars, trucks and buses were sold in September – down 3.1 per cent (2,551 vehicles) compared to the same month last year.

Year-to-date, new vehicles sales are up 0.3 per cent compared to the same period last year with a total of 784,932 vehicles being sold.

“The September figures provide further evidence that car buyers are cautious about the current economic situation and outlook,” FCAI Chief Executive Andrew McKellar said.

“The trend in sales over recent months provides justification for further action to cut interest rates as soon as possible,” he said.

“The industry is looking to rebuild confidence in the marketplace and decisive action to take further pressure off interest rates will provide some welcome relief to motorists,” Mr McKellar said.

Sales in most passenger car and SUV segments were down, except for small cars (up 4.1 per cent), medium cars (up 1.0 per cent) and large SUVs (up 48 per cent).

Light commercial vehicle sales held up well in September with an increase of 559 vehicles or 4.0 per cent compared to the same month last year.

Sales of light buses (up 73.1 per cent), vans (up 29.1 per cent) and 4×2 pick-ups (up 5.5 per cent) were the key performers in that segment.

Toyota retained the top sales position in September with a market share of 22.4 per cent, followed by Holden with 13.1 per cent and Ford with 11.0 per cent.

Year-to-date Toyota sold 183,806 vehicles, followed by Holden with 99,600 vehicles and Fold with 81,416 vehicles.

They’ve just issued a recuall for 42,408 Sturn Vue compact SUVs because there is a possibility that a nut has worked loose in the power steering assembly and that loose nut allows power steering fluid to escape and that’s a potential fire hazard.

So GM is recalling 2008 and 2009 model Vues to have the nut checked and tightened.

General Motors experienced a 37% drop in the sale of SUVs and vans in the United States during May and, when you consider that GM makes more money from the sale of SUVs than it does from conventional vehicles, it’s no wonder that GM is re-thinking its future strategy.

GM did have a team of engineers working on developing fuel-saving technologies for their SUVs with a view to introducing them by 2012 but no more. The team has been dispanded and re-assigned to other projects and General Motors may soon be making changing it’s focus from SUVs to more fuel efficient cars.

Volkswagen is also experiencing some problems in what it describes as “a difficult market environment”. While sales are surging in China they are falling when taken on a worldwide basis. VW reported a drop in of 0.8 percent in worldwide sales in May.

Kia on the other hand reported a 16.5% increase in worldwide sales during May with large increases in all markets. Most noteable were a 56.8 percent increase in sales to China, an 8.8 percent increase in sales to Europe and an 8.6 percent increase in sales to North America.

What was not so obvious though was that General Motors also planned to close part of its plant at Fisherman’s Bend Plant in Melbourne. Reports suggest that up to 500 jobs could be lost and Holden closes the four cyclinder engine production line.

Toyota has just released figures that indicate that in the first quarter of this year it sold 2.3 million vehicles worldwide. That figure put’s it about 900,000 vehicles ahead of General Motors.

Interestingly in Toyota’s home market – in Japan – it’s suffering just as much as Japanese manufacturers. In China – the world’s biggest expanding market – Toyota is also encountering some buyer resistance and is encountering stiff competition from Volkswagen.

And don’t be fooled into thinking that this car can’t travel long distances. General Motors suggests that the Chevrolet Volt can handle 640 miles/1024 kilometres in one trip.

You can read more about the Chevrolet Volt here.

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