Frankfurt Auto Show Update: GM Unveils Design for New European Luxury Car

FRANKFURT September 8, 2003; Neal E. Boudette writing for the WSJ reported that General Motors Corp. on Monday unveiled a design for a new European luxury car, a sign it's gearing up to take a run at German premium car makers BMW and Mercedes-Benz.

Developed by GM's Opel unit in Germany, the Insignia is a two-door, rear-wheel drive automobile featuring a 344-horsepower V-8 engine, wide rear fenders and a sloping roof that arcs seamlessly into the rear window and bumpers.

GM Chief Executive Rick Wagoner said the company is waiting to see the reaction to the car before deciding if it will turn the vehicle into a real product. "It is only a concept car. That's all it is right now," he said.

But in a presentation Monday night on the eve of the Frankfurt car show, other GM officials made it clear Opel is counting on getting back into the market for large, upscale cars.

"The only thing missing from the line-up this year is an Opel top-of-the-range model," Opel Managing Director Carl Peter Forster said. "This is a bit unusual for us. We have a long history of producing big, powerful models."

Michael Burns, president of GM Europe, also noted Opel has ended up producing just about all of the concept cars it has shown in the last several years.

The Insignia signals a return to rear-wheel drive technology for GM, which for years has used front-wheel drive systems in most of its passenger vehicles. Mr. Wagoner acknowledged that the underpinnings of the Insignia very likely will be used in future rear-wheel drive cars for the U.S. market.

Opel could offer the Insignia as a less expensive alternative to the BMW 5- Series and Mercedes E-Class, vehicles that sell for around 50,000 euros ($55, 377) and up, a price that's out of reach for most car buyers.

To make the Insignia stand out from the four-door sedans that dominate this segment, Opel built the car with two doors side panels that slide out and back electronically, easing access to the rear seats. It sports elongated windows, a broad front grille and an electronic rear hatch. Inside, the rear seats can fold flat for increased cargo space. A center console in the rear slides back to make a fifth seat.