With US Automakers under the careful eye of investors and analysts they realize that they must adapt to the changing market. With fuel prices up and Japanese Automakers capturing another 4-5% of the United States Auto Market it is clear that car buyers want more efficient vehicles. It is quite evident with the 284 million dollar loss at Ford and the Delphi bankruptcy that it is time for a change. General Motors is even discussing dumping GMAC and has already made a deal with the Unions to cut back on some of those healthcare benefits and start discussing the under funded pensions.
As a sign to shareholders and analysts General Motors announced its plans to come out with a new small SUV, as well as introduce some new cross-overs, as many as 14 by 2010. Will it be enough? That is for time to tell, but it shows that GM is serious about fixing some of its ills. There will be smaller versions of the Saturn Vue, Chevy Equinox and the Pontiac Torrent. It is hard to say if this is enough to get buyers to take their names off the waiting lists for Hybrids at the Japanese Automaker Dealerships of Toyota and Honda. The soccer mom has spoken, but one does have to wonder if it is a little too late to bring GM out of a downward spiral as our nation enters a change in our business cycle.
Simply building smaller cars and SUVa may not be enough because it is more about the $100 monthly gasoline bill that the average American Family is looking at than merely the size of the vehicle. In fact people would drive around school buses if they got 50 miles to the gallon. Size does matter, but efficiency in the revolutions per minute is even more important, because that means fuel economy. Think on this.