
GM has small engines ready, waiting for customer demand
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The automobile industry - and especially the players in the U.S. market - have long been engaged in an all-out battle for more power and performance. The 2008 fuel crunch has shaken that strategy up somewhat, but General Motors says it still needs a signal from buyers that they are willing to accept smaller displacements and equal or less power before it can implement its available small engines.
While that may seem like backward thinking given the evidence of GM's
plummeting sales while companies like
Honda and Hyundai that focus on smaller-displacement, economical cars hold steady or even grow, it's the way the General and its Detroit compatriots have worked for decades. The problem may also lie in GM's current product lineup - customers interested in buying large
SUVs and sedans don't want turbocharged four-cylinders powering them, it appears. Shifting output to smaller cars will make the smaller engines more desirable.
Nevertheless, Thomas G. Stephens, GM's executive vice president, insists the company is ready to move forward with smaller engines, reports
Auto Observer, and is waiting only on customer demand, saying of a vehicle like a turbo four-cylinder
Cadillac CTS or similar-sized car, "[f]rom a technical point of view, we could do it today."
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By James Posted: 7/30/2008 3:43pm PDT
This is why GM is in trouble. They are simply too reactionary. Of course it is a big risk to downsize engines, especially for a car like the CTS --or Corvette even-- but sometimes you have to take risks. I'm no fan of Toyota, but for some reason they saw a need for a Prius, spent their money (or the Japanese govt's money, depending on who you believe) and went forward with development.
One of the problems for an American company like GM is that "Wall Street" --and its sole focus on "next quarter's numbers" and immediate financial gratification-- don't necessarily allow for companies to think "long-term". This short-term mentality is partly why we find ourselves in this current economic mess.
By NoNameDenton Posted: 7/30/2008 7:27pm PDT
By DadzBoyz Posted: 7/30/2008 8:56pm PDT
By NoNameDenton Posted: 7/30/2008 9:37pm PDT
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