Two Roads: GM Takes The One Often Traveled

We liked the contrast of these two articles (even though they weren't written to be contrasty or anything):

AutoWeek reports: 2008 GMC Yukon hybrid: Welcome, alien.

The Detroit News reports: Subcompact sales boom.

So in one article we have GM making a big ol' SUV use less fuel and the other we see how, for non-US makers, subcompact sales are booming.

We wonder which strategy will work.

GMC Yukon hybrid: $50k, 21 city/22 highway (2WD)
Subcompacts: $13k+ over 30mpg in every scenario

Speaking of subcompacts, we find it interesting that Nissan seems to be the sales leader with the Versa, yet it takes 69* days to sell one compared to just 22 days for the Honda Fit. According to the article, Honda would sell more if it could make more -- you'd think Honda would make it a priority. Oh, it's also interesting that Honda claims the Fit is not eating into the sales of the Civic. We have to bet that one of Honda's models is suffering (since Honda's sales aren't up that much -- 4.6% for 2007). Wow, the Element is off by 33% this year? Sounds like Honda's gonna have to move them suckas off the lot right quick -- deal time! Sorry this turned into a Honda post.

Anyway, it's interesting to us that GM is pushing a huge hybrid SUV (for $50k!) and many others are doing well with subcompacts.

*Alison, call us.

Comments

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[Jocelyn Plourde]

Unfortunately, I dissagree with Tom. Car companies need to take a look at the global situation (population, oil consumption, global warming, etc.) and start offering and building vehicles that make sense. A Cadillac pick-up isn't used as a pick-up, its used to say "I can afford a Cadillac!" That makes it a waste. Same goes for luxury SUVs.

And who needs an SUV in the first place? Owning a boat or having 3 children does not mean you need an SUV. It means that once or twice a year, you need a vehicle that can tow the weight of the boat. Rent it or borrow it from someone. The rest of the year, drive a sedan! It'll fit you, your wife and 3 children.

I hate to say that someone needs to make the decision about what we drive for us, but we (in North America) seem unable to make intelligent choices.

[M1EK]

Tom,

Interesting. So when you drive around GM's car lots and see a few months worth of unsold huge SUVs, how, precisely, is this "building [them] what they want"? And when GM lobbies for, and gets, ridiculous ethanol and other SUV-subsidizing boondoggles tossed in with CAFE, how, exactly, is this just "building [them] what they want"?

At BEST, GM is trying to "make them want what [they] build". Emphasis on the "make".

[Used Cars]

It's still cool! It doesn't matter as long as its GM! Like it a lot. . .

http://cars.ozfreeonline.com