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Tuesday, December 01, 2009

Small car blitz at LA Show: Too little too late?

Are the Big 3's small car plans simply too little, too late? Hasn't the small car segment, for instance, already become very dependent upon hybrid technology?The Chevy Cruze

Tomorrow I'll be attending press days at the LA Auto Show, and the big theme at this year's show is once again 'green'. This year, however, things are a bit different than past years. Instead of hybrid cars or clean diesel vehicles, the path to green is small cars, particularly a number of new offerings from the Big 3.

While this is great news, I cannot help but wonder, is this too little, too late?

Toyota and Honda have always done a pretty good job selling small cars in the US, and they will probably continue to do well. However, both automakers have hinted that smaller, cheaper hybrids will be critical to their future small car plans.

For now certainly the Chevy Cruze, for instance, will sell. Still, a semi-loaded automatic version of the Cruze will probably list for $18,000 - $20,000. But, what happens if Toyota can sell a slightly smaller Prius for around the same price, or if Honda can sell an even cheaper Honda Fit hybrid?

Without question, the Big 3 should proceed with their small car plans. Nonetheless, are the Big 3 avoiding small hybrids today much the same way they avoided small cars in general for the last few decades? Ultimately, aren't the Big 3 simply chasing the small car US segment when they instead should be showing some real leadership and vision in this segment?

Labels: honda fit hybrid, Hybrid Vehicles, toyota prius

posted by Dahcredyns at 10:31 AM

7 Comments:

Anonymous alcatholic said...

I agree with this take. The state of the art in the small car segment will be cheap hybrids. Just when Detroit are finally bringing their best small cars to the US, it is interesting to see how the competition is still able to stay so far ahead of Detroit.

Still I think it is 100% improvement for Detroit to be simply behind, but competing. Before they weren't even trying.

11:49 AM  
Blogger Dahcredyns said...

i agree. they are taking steps in the right direction.

while the Volt obviously covets all of GM's green press, i'm really very interested in GM's upgraded BAS-lithium hybrid powertrain.

if GM nails that hybrid powertrain, they could have a real winner on their hands. certainly, i think such a powertrain can compete with Honda, and while it might not be quite as good as Toyota's HSD, it could have some pricing advantages.

that won't be enough to overcome Toyota, but it could be a big leap for GM.

i'm meeting with some GM people tonight. hopefully that's an angle i can follow up with them.

12:00 PM  
Blogger Smurf said...

This post has been removed by the author.

12:09 PM  
Blogger Smurf said...

I'm rooting for the Cruze as my cousin works at the Lordstown, OH assembly plant where they will make the Cruze.

I have concerns about the Cruze though. Is a car that competes with the Civic and Corolla going to be a game changer? Give me a hybrid version of the Cruze and maybe I say yes.

The price of gas will be a big player in my opinion. If gas prices stay below $3.00 for another year, we will once again see interest in smaller cars fade away......

12:12 PM  
Blogger Dahcredyns said...

Saw the latest Cruze today and it's hot, seriously. In the short term, I think the Cruze will be a pretty big hit. Of course, Cruze success will ultimately be dependent upon pricing.

Likewise, if Honda and Toyota can create cheaper hybrids in this segment, the Cruze could have some tough work ahead.

9:54 PM  
Blogger Larry G said...

A fuel-efficient ... RELIABLE..American Car will attract a following of folks who realize that American jobs are going to go overseas if we continue to buy foreign ....

but they'll want the car to be competitive in terms of efficiency and, I believe more importantly - reliability.

I am undecided as to how important the average car buyer in the US thinks a hybrid is.

I'm afraid to say that I think many folks are mostly ignorant and their knowledge of hybrids is more sound bite than knowledgeable.

They mostly equate "hybrid" with better fuel efficiency - for a price and probably react like we did when we went shopping for a Toyota and saw two very similar Highlanders - one hybrid and the other vanilla with one exception - the Hybrid was 5K more.

that was a non-starter for us.

we were not going to pay 5K to look more "green".

I'm not sure what the magic number is for hybrid but I'm thinking it's not 5K but probably more like 1 or 2K.

The other car to look at to get more info about this issue would be.. I believe..the Honda Civic/Accords which offer the same car in both favors if not mistaken.

But geeze guys. Anyone who has ever bought the initial model of a GM car and got burned with first year problems.. is not going to go for the Volt.. I don't think.

The Volt - IF IT DELIVERS what people ARE EXPECTING .. AND it develops a reputation of being reliable could well become a standard... i.e. get the foothold.. and just get better and better... gaining more and more market-share...and then start to produce other variants with the Volt badge on them.

This is a big, big stretch for the GM I know....

It's not about the car - it's about the company.

4:44 AM  
Blogger Smurf said...

"I think many folks are mostly ignorant and their knowledge of hybrids is more sound bite than knowledgeable."

You the nail on the head with this one.

When I talk about my hybrid with most folks I find their knowledge is no more extensive than the sound bites I hear on a typical cable news program.

Here's some top sound bites:

"The batteries die after only a couple of years."

"The old batteries will end up filling up our landfills"

"It takes 15 years to get your money back."

"It's too dangerous because blind people can't hear it"

7:50 AM  

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