GM and Chrysler: A Fellow TACH'er Comments

By Roy Z

Mr. Gordon; Further to your comments on the US government position as regards GM and Chrysler, I wish to make a few points:

Each company has had more than 30 years to respond to the entry of imports and transplants into the North American market. It was clear over 30 years ago that "catch up" was not an option. What was required was a "leap frog" approach to quality and innovation in order to beat off the competition. GM and Chrysler chose to play "catch up" and never caught up!

Today, new entries from GM, such as the Pontiac G8 use old technology (short block V8) to inject "fun " into driving at the expense of excessive fuel consumption (15/24mpg claim- actual test 13.8 mpg). A further example is the new Chevrolet Traverse with 17/24 mpg claim and 18.6 actual test.

Chrysler introduced the Challenger SE Rallye with a 3.5 V-6 engine with estimated fuel consumption of 17/25 mpg. They also introduced the Chrysler C SRT8 ("looks like a Bentley"- the writer who made this comment must have a white cane!!) with fuel figures of 13/19 and an actual average of 15.4 mpg.

So, these are examples of "new North American technology" and are supposed to impress the American public in their support of the government, and the loan of more money in support of the ongoing operations of these two companies?

Now the competition: the new Mercedes Benz C300 has fuel figures of 18/25 with an average consumption of 23.5 mpg- similar performance to the G8; but, significantly (70%) better fuel efficiency. Let's see what real world driving results will come from the Challenger SE Rallye, with an engine similar to the Mercedes. My bet is that it won't even be close! The Audi Q7 with a diesel engine matches or beats the Traverse in virtually every area and actually gets 28 mpg average +9.4 (50% more) mpg more than Traverse!! The Toyota Venza with a 3.6 V-6 claims 18/25 mpg and yields 19 mpg average. Close to Traverse but still better! The GM Tahoe hybrid makes a claim of providing an average fuel rating of 20mpg- Hello, which planet are you on- it's supposed to be better than just a gasoline engine!! The North American car industry has dropped to minor league status.

I remember when AL Capp, creator of Li'l Abner comic strip had a character named "General Bullmoose", who would say, "What's good for the General is good for the country!". It was a takeoff on General Motors, which in the 50's had a market share of 51%. Well it isn't true any more!

The dark hope for Chrysler is Fiat, with the 500 and diesel technology that can facilitate access to a market segment that for Chrysler, is as remote as Pluto! Fiat is in the driver seat and Chrysler need them more than Fiat needs them- don't screw it up by demanding an equity share in your company. Remember the phrase, "Pride cometh before the fall!". As for GM, until the Cadillac Evoc can offer 0-60 mph times of 5-6 seconds with a 244 mile range before recharging, talk to Tesla. Better still, the US government should direct funding towards companies like Tesla, with new technology and can offer new jobs with future sustainability!!

The good news is: if either company fails completely, there are plants and skilled laborers that will be hired back by the new owners of the better facilities that each have, in order to meet the market demand that will exist with or without GM and Chrysler.