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The big auto companies have seen lots of bad news lately. General Motors Corp. (NYSE: GM) just announced a record loss of $39 billion, and even though the number reflects one-time tax losses, it still managed to shock Wall Street. A week ago, Toyota Motor Corp. (NYSE: TM) also stumbled badly when Consumer Reports downgraded the reliability ratings of several of its most popular vehicles, including the V6 Camry. And with the US economy heading into what may already be a recession, the outlook for car sales is pretty grim. However, a bit of good news for GM emerged this week as the 2008 car reviews came out. The new Chevrolet Malibu is finally here and it looks like it could help GM regain ground it has lost to Toyota and other foreign manufacturers in the last few years. I was a bit worried a few months ago when Chevy failed to make the Malibu available for early review. In Hollywood, this is a sure sign that the product is a dog and beyond repair, and I was afraid that this was true in Detroit as well. But the reviews are coming out and they are all positive.
Our pals at Autoblog are pretty excited about the car. In their First Drive review, they admit to "gushing" about the car: "This car has one of the best mid-size interiors to come out of Detroit . . . ever." And these words are not coming from GM flacks. The reviewer went out of his way to say that he is a GM skeptic: "My last GM-made car was 13 years ago, and was awful. I swore I'd never step foot inside another GM showroom. [The Malibu] could very well change my mind about that. It's got the looks, the character and the interior to challenge Camry's reign, and it's about time. If the Malibu can be built to the same quality standards as Toyotas 'supposedly' are, GM is back."
I say it's about time GM started producing cars that can challenge Toyota. There's no reason the best-selling sedan in America can't be made by an American company. Now that the SUV craze has finally passed, GM and the rest of Detroit can get back to making good cars that sell for a reasonable profit. That model has worked very well for Toyota and Honda, and should work just fine for the revitalized American producers.
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Reader Comments (Page 1 of 1)
11-09-2007 @ 10:56AM
V.S. said...
Not only will the Malibu help GM, the new 4 year agreement with the UAW will greatly enhance their profit margin, starting immediately and progressing as time goes on. Wage freezes, pension elimination for new hires, VEBA, 1/2 wage structure for new hires, GM/Ford/Chrysler will start seeing the benefits of the contract immediately....GM stock to start rising ............
11-08-2007 @ 11:37AM
Justin said...
The Malibu should be helpful, although it's all going to come down to the cabilities of GM's directors and senior executives. Despite yesterday's huge blow, with a little bit of luck and the experience of the board (see article about board connections: http://www.newsvisual.com/newsvisual/2007/11/gm.html ), GM should be able to pull itself out of this hole.
11-08-2007 @ 2:23PM
Vern said...
Why cant GM build some driveway cars?Its a shame to pay 30k for a car and have to park it in the back yard or in the garage to keep your neighbors from seeing that Butt Ugly SOB.--thats why I have had Fords since back in the 80s.
the small block chev engine is world class,and the curb appeal of the body styles are the worlds worst.the 67--69 camaro body style was the last good looking car they built.---wake up or break up GM.
11-08-2007 @ 7:29PM
Alouisis said...
At last, they have stopped blaming the UAW for their troubles and decided it is about the product, as it has always been. One worthwhile product will not save the company, if this is indeed worthwhile. It will take a product line supported by competitive price, finance and warranty. We will just have to see if they have learned and are able to react in time.
If I sound skeptical, I am. We have heard the hype before and invariably been disappointed.
11-09-2007 @ 10:58AM
A D said...
Considerig the mighty Toyota has suffed a well deserved black eye for the "hyped" Tundra & Camry, I'm skeptical that those worried about GM have missed the target.
11-12-2007 @ 2:50PM
moberlymoses said...
The quality of Toyota trucks has been questionable for many years now. It makes me laugh to hear Toyota owners defend their cars and trucks even while taking them in to be fixed. My neighbor's Tundra had a taillight falling out and was mad because he had to drive to a distant city to have it repaired. Being honest and fair things happen to all makes and models of cars and trucks. The measure of an auto Company is what they do about the problems when the customer brings the vehicle in for repair. As a retired auto worker GM. I can tell you that an auto worker can only put together the parts that are supplied to him or her. In the past the U.S. auto Company's dropped the ball. Take a look now though. GM with its 100 thousand mile warrenty and Chrysler with a lifetime warrenty on the drivetrain speak loud and clear we make and sell good products and we'll stand behind them. George Moberly Retired GM worker
12-12-2007 @ 1:39AM
Steve said...
Just checked out the new 2008 Malibu. It's gorgeous! The interior is beautiful, and for around $27,000 is well worth the money, and actually, a bargain at that price. I prefer it to the Mercedes C class that I tried out the same day, which was an over-priced slug. Anybody who has anything bad to say about this particular car is insane. GM did this one right. The Saturn Aura is very similar, and also unexpectedly NICE! These cars are obviously made VERY well.