Sunday, August 03, 2008

Sliding Towards Extinction

Can you say dinosaurs? This GM lineup still suffers from weight. Seven eighths of the energy to propel a car is used to move its massive weight. The less mass, the better the fuel economy. Simple physics. Few of these cars will offer significant fuel savings. If this is the best GM can come up with based on its marketing data, Congress's opinion that GM is going to go extinct is most likely correct. So much for innovation, but then huge bureaucracies stifle innovation.

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Hi John

Most GM and Ford cars built and sold here in Australia suffer the same problem. They're too large.

But they're large because large cars are what GM and Ford do best. This is what makes these brands distinctive.

Japanese and Korean makers having been making small cars better and more cheaply. This puts GM etc at an instant competitive disadvantage.

GM/Fords also feed a market segment that demands large cars.

I'd also say much of the problem is that GM/Ford attempt to make too many types of cars (all market segments) complicating management and adding to fixed costs.

Pete
 
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