Lutz Says Importing the Astra Saved General Motors $900 Million
General Motors is reporting that the move to bring the Saturn (nee Opel) Astra to the U.S. market instead of developing a new small car specifically for the States will save the company on the order of $900 million.
This revelation comes in direct contrast to years of global automakers telling customers (and themselves) that it is simply too costly to retrofit European cars to U.S. standards.
(Click through the jump to read on about The General's savings.)
Bob Lutz has figured things a little differently, saying that while it cost GM $100 million to make the Astra U.S.-compliant, that’s little in comparison to the roughly $1 billion it would take to develop a new car. Further, GM would have never made the decision to spend that money, as the Astra will be relatively small volume.
The moral of the story seems to be that in an increasingly global market, products need to be sold wherever they can be as a means of making the whole operation more cost effective.
Now, if we can just see about getting an R-Type Civic in our neck of the woods…
+ Autoblog: Lutz says importing Astra saved $900 million
Comments
Ben
Make world cars = make more money.
Maybe the other U.S. automakers will catch on.
Jeb
We can only hope. I like the Astra, hope that the driving dynamics match the looks.
The Stig
Someone please forward this to Ford and let's get some real cars from across the pond over here.
Rational, Reality-Based
Unbelievable! So here is Lutz -- the "car guy" passed over at Chrysler because he "didn't have the finance chops for the big job" -- doing the most basic cost-benefit analysis they teach to college undergrads in Bus 101. And, its a "revelation" to GM product planning! Apparently, the vaunted finance, accounting & management corps at the big three haven't had a clue about the basic economics of automaking (or sound operations management) for the past 30 years. This just really underscores how much GM, Ford and Chrysler have been riding on the marketshare momentum they built between 1945 and 1975 (or thereabouts).
What were they thinking the past 3 decades? The efficiencies of integrated global product strategies and production have been blatently obvious since at least 1978 (and known for far longer). UAW wages and retiree benefits had nothing to do with the big three's failure to make the basic business strategy corrections they needed to capture those efficiencies. The good news appears to be that current GM and Ford management now "get it", and are designing decent products with rational economics of production and distribution. Well, better late than never. But it may still be a decade before they have globally rational product lines. During that decade, Toyota, Honda, et. al., will be plowing the profits of their superior efficiency into more R&D, better products, and lower price points. I love the American auto industry, and dearly want it to do well. But the fact is that Big 3 executive management, until very recently, has been just abysmal. All the other factors industry apologists regularly trot out to excuse their failures are just B.S.
Ben
Are you really The Stig?
Jesda
Some say he swims with ducks and reads appliance manuals. Some say he doesn't know how to urinate.
All we know is, he's called THE STIG.
Doug
very upsetting if his math, seemingly doable in anyones head... is correct and the US has been skipped over for kick ass VWs, Euro Focuses, some fo the snazzy Asian cars... shite!
Paul In Jersey
A wise old man wrote, "On the Internet, nobody knows you're a dog." I think that was in about 1993, right? So it's just like Santa Claus...if you believe he exists, then dagnabit, he exists.
Thank god Bob Lutz exists.
Bryce
Memo to Ford: List to Mullaly since he wants to bring Ford of Europe products here
Dane
Can you give Ford a clue GM???? I love the Astra... I love Ford Europe better... Just can't get them here...
Keep up the cost savings and bring over the Corsa now!!!!
also would love the Astra Estate... (Don't push my luck)...
Congrats GM... Bring it on!!!! Forget the Japanese cars and take on VW, Audi, Mercedes and BMW!!!
Ducati Minor
Car and Driver already reported months ago that Ford Motor will be working to plan a global product structure that would mean Americans seeing Ford’s European and Australian vehicles on their roads. The problem is that the plan, according to C&D insiders, won’t go into effect until 2011.
I read Motive’s Astra review. Wes Grueninger came away disappointed in it compared to the Mazda3 and VW Rabbit. He felt the 1.8 L motor was weak, the feedback numb, the four-speed A/T cheap, the cabin modest, and the price too high. He even displayed reservation at the exterior. Reading Grueninger’s review didn’t affect my attitude towards the car. You can read a preset opinion in his rather bitchy piece. (It reminds me of Sports Car International’s venom against the Pontiac Solstice.)
The Astra, in its introductory state, is an economic hatch meant to complete Saturn’s product line in the low-end price realm. It is not a sport hatch. When GM offers a supercharged or turbo 2.0 L Ecotec with a tight suspension for an Astra Red Line, then you can make an assessment about the car’s speed and cornering ability at high velocity.
My mother drove an L300. I lived near Saturn’s Spring Hill assembly plant. The Astra is a major improvement. I would definitely consider a three-door XR. The car looks great, makes sense, and is proof a US automaker can bring one of its popular foreign products to the country and keep a fair price.
Trinks
I'm hopeful the G8 and its derivatives will inspire Ford to (FINALLY) bring the Australian Falcon over here. This is just another reason why it should work.
mo
somebody can have common sence. good cars should always be for global production.
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Reg Hughes
Anyone who can Help,Ipurchasd a Opal Zafiria 1900 in
Spain from new the Service Manuel is all in Spanish and
the Company that sold me the car were not very helpfull
with my problem If there was a web address in my Spanish Manuel I could download
The car details are..Opel Zafira 1.900 Enjoy120 5P Diesal Thanks
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