Driving a New Conversation
First off, I want to say welcome to Driving Conversations. While the world is full of corporate blogs, GM has been on the leading edge of using this type of forum to elevate a more challenging and robust conversation with all the constituents that have a stake or interest in our business. And speaking frankly, I think a blog for GM Europe is well overdue. The intensity of press coverage regarding our European business and our products and brands has, at times, left part of the story untold. This is understandable given the massive changes and challenges that are occurring in the global automotive business as it undergoes fundamental structural changes. Being the biggest player in the industry with arguably the biggest challenges to overcome in respect to making these changes, it’s understandable how some external (and internal) perspectives have been shaped and at times have taken a critical tone. But this glass is not half-empty – not by a long shot.
While we’re in the midst of a fundamental change, the opportunities and challenges have never been more exciting. The product offensive we’re launching within Europe is considerable. We just a few weeks ago announced more than $9 billion in product programs for the Opel brand alone over the next several years. The new Insignia signifies a great future for Opel. All-new versions of the Astra, Meriva and Zafira are all coming soon after. Chevrolet continues to be the fastest growing automotive nameplate in Europe and is now expanding to a truly global product lineup that you will be seeing later this year at the Paris auto show. And Saab is now fully benefiting from our global product development program by getting an all-new 9-4 crossover with a striking new 9-5 soon to follow. These products will be supported by the biggest advanced technology rollouts in the history of GM, with a broad new lineup of small displacement turbo engines, advanced clean diesels, hybrids and the new E-Flex electric vehicle technology.
As we speak, I’m in Düsseldorf, Germany, this week to meet with more than 6,000 European dealers for our GM Next Centennial meeting and celebration, where we will lay out the big picture on product for the next several years to come. We’re using our centennial celebrations to look forward, not back, and to drive a new conversation around the future of GM. That future is about creating products and brands that reignite the affections of our customers and the pride and respect of our employees all over Europe. I look forward to bringing back a full report. In the meantime, I encourage you to use this space to let us know what you’re thinking. Share your thoughts and ideas – push and challenge us on whether we are succeeding. For my part, I promise to keep this an authentic, honest and open forum where all the issues can be put on the table. I hope you look forward to it as much as I do.
Carl-Peter
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- Posted in Carl-Peter Forster |
- Comments (34)
Comments (34)
Swade said:
Welcome to the blogoshere, Mr Forster!
Nice to see Trollhattan Saab on the side bar :-)
Disappointed to see only the 9-4 and 9-5 mentioned as far as Saab are concerned. Please build that beautiful compact car.
We look forward to hearing more from you.
Jean-Charles Jacquemin said:
Mister Forster,
thank you for your initiative.
Being a recent (since 2000) Opel customer, I bought three new cars since then and I am very appreciative of those cars.
However times are changing, and your interview on Auto-motor-und-sport.de in May 2007 where you said "Ich denke, dank der globalen Synergien im GM-Konzern können wir schon Ende 2010 so weit sein - auch für einen Einsatz in Europa bei Opel. Das schöne daran ist, dass wir hier im Gegensatz zum Hybrid bei einer Reichweite von 60 Kilomentern absolut keine fossilen Brennstoffe mehr verbrennen müssen, sondern auf regenerativ erzeugten Strom zurückgreifen können. " (translation : "I believe that, thanks to the global synergies within the GM group, we will be there as early as at the end of 2010 – also for an application at Opel in Europe. The great thing about it is that, contrary to hybrids, we will not have to burn any fossil fuels whatsoever on a range of 60 kilometers but can instead revert to regeneratively created electric power.") was the sign that we could hope that our dependence on oil will decrease in a not too distant future.
You confirm that in your introductive comment.
So may I insist that in two years from now, when I will change my car, I hope the fourth generation Astra will be equiped with an electric motor and a plug-in capacity like it is proposed in the E-flex concepts,
the price of oil will prevent me to buy a car with an ICE engine alone.
Let me also suggest that we need an European warranty (not a national one), it is not correct that the warranty on new Opel cars is 6 years in Germany and only two in Belgium, where the competition is intense with makes like KIA or TOYOTA who propose significantly longer warranties.
The "On star " feature in some GM cars in the USA is also something that should have an equivalent in Europe.
Thanks four your attention.
Derek said:
good luck with your blog. Will you be using it to make corporate or even investor related announcements?
thanks
Mike O'Dowd said:
Carl,
Can you tell us if the exciting new Camaro will be sold
with Corvette's, or will we see it with low cost GMDAT
vehicles? Also, when do you anticipate it being sold in Europe? I'm a huge Camaro/ Corvette fan, having owned seven Camaro's, and one Corvette.
Thank you !
Driving Conversations Team said:
Derek:
Thank you for your encouragement! We won't actually be using the blog to make announcements- news will continue to be distributed through our established channels. But we may well use the blog to provide additional perspective to our corporate news.
Carl-Peter Forster said:
Mr Jacquemin:
Great to hear from you- let me try to answer your questions. Yes we are working on an Opel with the E-Flex system...but it's much too soon to specify how and when this will become a product program. We've been clear from the start that the E-flex is based on our front-wheel-drive architecture, which is the foundations for the Astra. But don't assume that a production E-Flex would necessarily be an Astra. As for timing, late 2010 is the stretch target for the Chevrolet Volt in the U.S. With that, you can assume that any other brand variants off E-flex would be after that. We’ve made some very good steps with the technology we are developing in GM and we are, without question, the leader in this field. We are moving as fast as we can, but lithium battery technology scaled to this level is completely new territory and there is a significant amount of risk. Your second question on differences in European warranties- it is a high priority for us. From country to country there are still different legal requirements. We’re discussing this with the European Community groups in Brussels. I have to say sometimes there are still some really big steps that have to be taken for Europe to become a common market.
Carl-Peter
Carl-Peter Forster said:
Mike:
I'm a huge fan too and I’m sure I’ll be buying one for myself! I can assure you that cars like the Camaro will
be sold in their “own world”. For the exact delivery date and start of sales it’s too early to say, but what I will say is have your money ready in the next two years.
Carl-Peter
Gereon (Germany) said:
Dear Mr. Forster,
regarding your response to Mike O'Dowd, please, allow me to comment:
I think, over here Chevrolet-vehicles should be sold and serviced under one common channel, without any separation of US-built and GM DAT-made models, since this might confuse the customers and may hurt the image (credibility) of the GM DAT-sourced Chevrolet's additionally. In my opinion, the main problem of Chevrolet Germany is its reputation as a "low-cost-brand" ("It's still Daewoo"), rather to be compared publicly with Dacia or Lada, than with other, more upscale import-brands, which actually would be adequate.
My proposal: The European portfolios of Chevrolet Europe should vary, eventually be more "Americanized", depending on the corresponding market potentials of the single countries. For example, I'd like to see the all-new Chevy Malibu replacing the Epica in Western Europe (countries with higher average incomes), whereas the Epica should fit for markets in Eastern- or Southern Europe. In addition, Chevrolet Germany still needs a "fun-machine", a compact coupe to brush up its image. What about the Chevrolet Cobalt SS? The introduction of the HHR was a first right step, however, not far reaching enough. Don't get me wrong: GM DAT builds excellent vehicles. Especially the Aveo and Matiz make a lot of sense over here, as well as the Captiva. It's just me proposal to reconsider the distribution of the various models for the different countries. I also appreciate Chevrolet Germany's efforts regarding LPG. Proposal: Introduce monovalent retro-fittings in the future (instead of bivalent), since these should achieve better CO2-ratings, what will be important soon. The emission of bivalent cars is measured, when the car is running on gasoline, what may be a disadvantage then.
At the end one word to Cadillac Europe, which has a wide range of absolutely gorgeous and world-class products. To me the new CTS is truly the new benchmark in its class. Why are there no TV- or newspaper commercials about these hot cars over here yet...?
Thanks for paying attention.
Jean-Charles Jacquemin said:
Mister Forster,
Thank you for your answers, particularly on the principle of an European warranty.
Sorry, I was not assuming that Opel or GM Europe was the sole responsible for the situation, I know the complexities of the European Union legislation.
Well, perhaps for my next Opel car, I may buy it not 10 kms West from my home but 70 kms East and bother with an administrative mess to register and insure it in Belgium, ...
Thanks again for this possibility to exchange with you;
Nathan aka "HotCarNut" said:
Carl-Peter:
Congrats on getting the blog started! I know that I enjoy reading Bob Lutz's Fastlane blog, and I'm sure that I will enjoy yours too. Can you talk a little bit about how GM Europe's role will expand in the face of more stringent regulation in Europe and the United States, particularly as it comes to product development? GM North America has zero expertise in small car design, and quite frankly, is getting their hat handed to them on a monthly basis by Asian competitors with quality small vehicles. Have the new products due out in the next 2 years been designed to meet US & European safety and emissions regulations? If so, are there plans to make these truly global automobiles as Ford has announced with the Fiesta, Focus, and Kuga?
Thanks for your time!
Nathan
Carl-Peter Forster said:
Nathan,
Actually, GM is about two or three years ahead of Ford in globalizing its product development organization. In Europe, we're engineering the mid and small front wheel drive vehicles for the globe with two all new global programs launching late this year. Korea has control of the very small passenger cars and SUVs; the US has traditional luxury, large crossovers and trucks; Australia has large rear-wheel-drive and Latin America has mid-trucks and a number of low-cost architectures. We're on a huge product offensive around the globe that is almost entirely passenger car and small cross-over based--despite what you might read in the news about GM being "the truck company!" Stay tuned!
Carl-Peter
Rene Curry said:
Hello Carl-Peter,
It would seem that with the current dollar/euro exchange rate that North American manufactured vehicles have a large cost advantage. (and profit margin potential)
It seems like a no brainer, excess North American manufacturing capacity & a market to ship to. Just plug in a good mix of product and go.
Is the European market that different that this model would not work? Your thoughts.
Thanks, Rene Curry
Nathan aka "HotCarNut" said:
Carl-Peter,
Thanks for your response. Hopefully this means that we will see the entire lineup of small cars and CUVs in the US, including diesels, in the next 2-3 years. The pairing of Opel with Saturn is brilliant, but the next generation Chevrolet Cobalt, Aveo, and a new sub-compact really need to be on the market ASAP. I know GM has made strides in platform sharing and the globalization of purchasing, but North America still seems to drag its feet when it comes to introducing high-quality small cars. Maybe with gas at $4 a gallon this will change.
Best Regards,
Nathan
A Woodruffe said:
Mr. Forster
Thank you for a blog dedicated more to GME operations. I think Fastlane is a great channel for GMA to communicate with their customers but I must say you have gone one step further than Mr Lutz and taken time to answer peoples comments too.
My interests are in Saab which could be said has had a few difficulties over the years. I think this has brought on some anti-Saab comments within the GM world; from customers, enthusiasts and some GM workers who I have spoken with over the years. I think the $9 Billion investment in OPEL is fantastic news, as this means that new engineering advancements debuted at OPEL should find their way into future Saabs. However; this hasn’t always been the case, which leads me to ask 2 questions. When will Saab see an updated power train line-up and when will GM give their premium brand the technology first and quickly filter those innovations into other brands? I realise the Saab did receive the 2.8 (LP9) first and has debuted XWD. However even with the recent 9-3 MCE we still have the old 125hp 1.8i engine and not OPEL’s current 140hp version and for some reason the 2.0 DI Turbo engine (LNF) which can be found in the OPEL GT has not replaced the 9-3’s old 2.0T engine? Can we assume that with the launch of the 9-4x and 9-5, that Saab will no-longer play second fiddle to OPEL or will new advancements debut on an ad-hoc basis. What is GM’s strategy with their Premium European brand (Saab) and their Mainstream brand (OPEL)?
Kind Regards
Anthony
Carl-Peter Forster said:
Dear Anthony,
Thanks for your comments on my blog. Let me first of all assure you that we have a very clear strategy as to how we keep and strengthen the identity of all our brands, which I believe is crucial. We do have a very clear premium brand approach with Saab, as we do with Cadillac and Hummer...each having a different relevance in different parts of the world. Without giving away the store, I promise that what you'll see from Saab in the near future will not disappoint you. And that's an understatement. In fact, Saab is embarking on the biggest product offensive in its entire history with highly distinctive new products and powertrains that will appeal to customers who are looking for a premium alternative to the established premium brands. On this issue of where to position leading technology, might I suggest it's not always about which brand is necessarily first, but more of an issue of getting the right and relevant technologies aligned with the brands. For instance with Saab, bio-fuels, small turbos, cross-wheel-drive and safety are all key technologies that are pillars for the brand. This is evolving for all the brands...stay tuned.
All the best,
Carl-Peter
Carl-Peter Forster said:
Hello Rene,
Good thinking, but unfortunately not that as straightforward as it might seem. First of all import duty into the EU from the US offsets some of the foreign exchange benefits. And despite the huge swing in fuel prices in the U.S., the market demands (while getting closer) are still somewhat different, particularly with the vehicle sizes and the lack of diesels in North America. We do import vehicles from the US- Cadillac, Corvette & Hummer with good financial results and there will certainly be more in the future. With our global product development program now fully implemented, moving vehicle families around the globe will be easier. But experience says--even under the fastest circumstances--the investment and lead time in introducing vehicles across global markets means regional manufacturing capability is a must.
Carl-Peter
Andoni said:
Hello Mr Forster! I Thank you for the blog...Great idea!
A long time ago I wrote to Mr Lutz, He says me that OPEL thought about bringing holden commodore to Europe,.. will sell it finally?
I think that opel is doing a fantastic job, the new insignia is art! This design is pure german and I think that OPEL must follow this line in the future.
In the page automotive news, in opel section are one question,that it called the attention to me "Where is OPEL headed??". Could you respond ?
Finally I want to say that I am completely sure thAT This blog is going to be sucessfull.
Mr Hans Demant ,The OPEL chief could also participate , because he could inform us about
the technology and OPEL news...
Gereon (Germany) said:
Dear Mr. Forster,
I agree with Rene Curry. GM is already selling the Chevy HHR at an incredibly favorable price, starting at just 22.990 EUR in Germany. Considering the overall value of this vehicle, to me the HHR clearly appears as the best deal in Chevrolet Germany's portfolio so far. So I would not see any reason, which should GME prevent from the introduction of the Malibu, which, to my taste, has a more beautiful interior than every of its European contenders. I purchased a Chevy (Olds) Alero in 2001. Already 7 years ago this was a great offer (but unfortunately poorly promoted) and so far I didn't regret one single day with this car, also regarding fuel-efficiency. In 2006 I got it retrofitted for the use of LPG, meaning this car is nowadays as inexpensive to run as a much smaller Toyota Prius!
Cadillac as well offers outstanding value for the money, whereas Bähr & Fess Forecasts GmbH predicts an excellent resale-value for the new CTS. Despite of import-duties and other possible necessary efforts it seems to me, that selling GMNA-vehicles over here basically makes a lot of sense.
A. Woodruffe said:
Hello Carl-peter,
Thank you for such a prompt reply in clarifying GME’s position on the introduction of new technologies.
I was reading your answer to Rene’s question with regard to global manufacturing. Where I can see intercontinental shipping and duty counteracting exchange rate advantages, with GM working toward vehicles utilising global architectures could we see future product manufacturing become more localised? As an example once the plants at Kansas City and Lake Michigan are upgraded to take the next generation Epsilon platform could we see some of the Saab 9-5 production moving to the states for US customers and potentially see the Chevrolet Malibu being offered in Europe being manufactured in Rüsselsheim? The 2 models would then not be subjected to Import duty and production costs would be in local currency. Is this a scenario that GM envisaged for a truly adaptable global company?
Jean-Charles Jacquemin said:
Mister Forster,
May I emphazise what A. Woodruffe said but I have no doubts that GM has already thought of such moves.
What worries me a little more is the internal competition between Opel and Chevrolet in Western Europe, the Aveo versus the Corsa, the Captiva vs the Antara, etc. Perhaps there a specific market for both brands on the same territory but this is not (except in the marketing methods) clear tp me.
Carl-Peter Forster said:
Hello Andoni,
As for the direction of Opel, that's a great subject for a
future post. The answer to your question can be found very much in the Insignia....true German engineering with highly expressive and emotional design that isn't resident in other German brands. Much more to say on this...stay tuned.
Carl-Peter
Carl-Peter Forster said:
Mr Jacquemin
I hear this a lot, but the reality proven by a lot of market
research is that there is very little or no interaction between the brands as they are quite well positioned apart. Opel customers basically don't consider Chevy and vice versa. The volume Chevy is gaining--which is considerable--is simply volume we would have given up to other competitors. To keep it like this we have a strong clear plan for both brands that gives us the best opportunity for growth. Thanks for the comment!
All the best,
Carl-Peter
Carl-Peter Forster said:
Hello Anthony,
Given the sensitivities around discussing future manufacturing footprint issues, I would prefer not to comment on specific plant allocations. However, I think the key point on strategy is that we need maximum utilization and maximum flexibility. As I stated before, it is illogical to think we can simply flock to the current low cost market of the day. We need a balanced manufacturing footprint that will keep us competitive in the mature markets while we expand in developing markets. Please also keep in mind that you need a minimum volume of at least 30- 50,000 units to justify the capital needed to tool-up a second
manufacturing location of any given model!
Good observation.
All the Best,
Carl-Peter
Andoni said:
Hello Carl-Peter.
I want to ask him about the OPEL calibra...
As other european brands, as renault with the new laguna coupe, Is opel thinking a new coupe?
I am a memeber of one opel club.... and this question is asked a lot...
I share with you that the direction of Opel could be a future post.. .
Regards, Andoni.
John aka chiefpontiac said:
Hello Carl-Peter,
My back-seat driving of GM would have brought Opel back to teh US instead of creating Saturn. It was a well-respected brand in teh heartland . I am sure that our domestic rules and regulations had more than something to do with teh departure of Opel. But now that European emissions and crash standards are on par (or beyond) what we have here in the US there is no reason not to import more of the lineup than simply a couple versions of Saturn. At (now approaching) $5 USD per gallon for fuel we are just now feeling teh pain at the pump that has previously caused most European vehicles to be much smaller and more efficient than anything currently for sale in the US. Considering what we do get, a smartcar fortwo achieves lower mpg than a Mini-Cooper. Certainly a Tigra or two thrown into the mix would be well received. Now if we could just downsize the 80,000 lb big rigs so that all the small car drivers would feel safe.
To Gereon, having the Vectra already on sale and presumably doing well, and its revised replacement due in 2010 as Insignia, both of which are either no different except for minor details or are basis of Malibu and Saturn Aura what purose is there in duplicity of selling in your hometown side by side Malibu vs Aura/Insignia. Too many choices of apples compared to apples in part led to the demise of Oldsmobile.
A. Woodruffe said:
Hi John,
When comparing Euro V and Euro VI emission laws which are due to come into effect for vehicles sold as of 2011 and 2015 respectively. The US BIN 5 (50 State) requires a far greater emission control. In one comparison I have seen, Euro VI would require a further 65 - 70% control (reduction) in NOx emissions.
As for synergies between OPEL and Saturn, Bob Lutz on GM’s Fastlane blog has already stated that we should see further integration between the 2 brands. ‘Motor Authority’ reported on January 23 this year that GM are planing the next generation Corsa to be built to meet US regulations. Again Mr Lutz talking with ‘Automotive News Europe’ said. “We want the car as a Saturn in the U.S. and we certainly don’t want to import it from Europe,” So we can see GM very much want to offer OPEL products as Saturns but to make those products cost effective they should be built in America. As Carl-Peter mentioned earlier that will mean a sales potential of at least 30-50,000 units for any given model.
The Malibu and Aura are not competing products as like Chevrolet and OPEL in Europe the cars appeal to different types of customers. When looking at smaller fuel efficient cars may I suggest you look at the Chevrolet Colbalt SS. It has an all new 260hp Direct Injection 2.0Ltr Turbo engine that generates 260lb-ft of tourque at 2000rpm, the even better news is that it will return you 30mpg (hwy).
Best Regards
Anthony
Jonathan said:
Dear Mr Forster,
Further to the comment by Mr Jacquemin , I read this quote today: “We’re particularly interested in creating a new monocab MPV to compete with the Zafira...” ~ Wayne Brannon, chief executive of Chevrolet Europe.
Shouldn't Chevrolet be aiming at non-GM products?
Also, I'm slightly concerned that in the rush to global platforms etc, GM could lose sight of regional differences in markets. For example, the huge cost of establishing Cadillac in Europe, rather than focusing on Saab's future (In the UK, for April, Cadillac sold 11 cars, Saab sold 1452 and Volvo outsold Saab 2-to-1).
Even if the brands don't compete for the same customers, they do compete for product development and production resources. Also, when engineering is globalized, does design stay within the brands or is it globalized too?
Regards
Jean-Charles Jacquemin said:
Jonathan, I just read your comment and I completly agree with you.
The internal competition for resources inside GM is something that worries me too,.
My personal opinion - that I think is shared by more and more people around me - is that we must get rid of the use of oil as soon as possible. For instance my wife asked me yesterday to investigate the possibility to swap the heating oil burner for an eventual fuel cell, ...
I think the urgency for GM is to come first on the different world markets with cars using other fuels and/or other power trains, such as the E-flex architecture.I also think GM should optimize the portofolio of existing models to concentrate its resources on the power train innovations not to increase to competition between similar models from its different makes.
Carl-Peter Forster said:
Jonathan,
I'm not sure where Wayne said this...but assuming it's accurate...it simply demonstrates that each brand is being managed to meet it's customer's expectations and needs. The reality is, as you seem to indicate, that there is almost zero interaction between Chevy and Opel in the marketplace. I think Wayne was more indicating the type of vehicle that Chevrolet could use for expanding in Europe...not that he's bent on seeing Chevrolet take market from Opel. As for global products hurting regional distinctions, this is always a risk. But understand that each vehicle team around the world is comprised of nationalities
from all over. For instance with Opel and Saab, I can assure you that both myself and Hans Demant (our European product chief) are highly involved in the development of all future products. We won't initiate a
program unless it's clear that the resources are fully in place to make them the best possible products. And to be honest, the amount of resources a Saab or Opel has from being part of a global GM system are vastly greater that either brand could ever have on its own...especially in the highly complex and costly realm of CO2 compliance.
Carl-Peter
Carl-Peter Forster said:
Anthony,
We're working on a number of new petrol engine updates to help comply with the regulations. The reality is that once you drop below 120 gpm in a vehicle that can have reasonable performance while meeting safety standards, petrol engines start running up against the laws of physics. With that, we're putting a number of technologies into the plan to help get below the standards. To name a few, we have direct injection, downsized turbos, HCCI (homogeneous charge compression ingnition) engines, and mild hybridization all in the plan to get petrol down to these very difficult to reach standards. We also see biofuels of the second generation - not competing in any respect with food - as an interesting option. Some of these solutions are already coming next year, so stay tuned.
Carl-Peter
Brian Cuthbertson said:
I have just returned from the USA where I spent 6 weeks driving the Pacific Coast Highway in a Chevy HHR. This is the third time I have rented an HHR. I think they're great and would buy one immediately if they were available in right-hand drive form in the UK. When will they be available over here?
Carl-Peter Forster said:
Jonathan,
Sorry for the slow response, but I’m just getting caught up after a long weekend. As I’ve stated before, we see Chevrolet as competing with other value brands in Europe, such as Skoda, Seat and other Korean makes. On Saab and Cadillac, let me be clear, these two brands could not be further apart in terms of consumer appeal in the premium segment. And while you can make the point that Saab outsells Cadillac in Europe, the exact opposite is true in the U.S. The bottom-line is that both are getting a heavy dose of new products and both are well positioned to grow thanks to having a strong global product development base to work from.
Thanks for the comment!
Carl-Peter
Carl-Peter Forster said:
Brian,
The current HHR will not be offered in RHD. However, all future Chevrolet products being developed for Europe will have RHD...some of these products are coming within a year...stay tuned.
Carl-Peter
Graeme Salmond said:
Having read Wayne Brannon's comments about broadning the range of Chevrolet vehicles and in particular with reference to SUV's I have a question.
Currently in the USA the top selling minivans and so called cuv's are all or at least have the option of being 8 seaters. All have fold flat seating and can carry 8 adults plus luggage. The very definition of a truly multi purpose vehicle.
Chevy USA has the Traverse. Its narrower than a landrover Discovery only a little longer than the hideous audi Q7 and it can seat 8 adults in relative comfort.
You guys are nearly finished with development of the new 250hp V6 diesel for cadilac. So bung it on the lambda and bring it to Europe where the only 8 seaters we have are all based on commercial vans.
Would make an excellent range topper and re americanise Chevy europe along side the camaro.
Just one thing please do some right hand drive models for us in the UK, Australia and New Zealand. Ford are making a packet with top range S-Max selling in droves to execs with families too big for BMW 3 and 5 series. You could give us the CUV and market it as a premium product for our outward bound life styles and it wouldn't all be marketing bull.