Leading off today's event was GM Europe President Mike Burns.
The major focus was GM Europe's continuing Olympia restructuring plan and the restoration of profitability.
Although cost reductions are a key focus of that effort, new, higher margin products are not being ignored. In addition to the next generation Vectra sedan and GTS hatch, analysts were also shown a production version of the next Saab 9-3. Burns also outlined three other new Opel products. Following the GTS hatch due in the 2nd quarter will be a production version of the Signum2 concept (still no name revealed) and later a more traditional "touring" (or station wagon) version of the Vectra. These two will be larger than, and effectively replace, the current Omega sedan and wagon. Later this year Opel will unveil a new monocab vehicle smaller than the Astra-based Zafira. Mentioned previously by GM as far back as 2000, the new microvan is based on the new Gamma-platform Corsa, and was developed in conjunction with GM do Brasil.
Capacity reduction will continue following the introduction of the new Vectra. Plants in Antwerp and Bochum will be further rationalised with the change to the new Astra, with a reduction of lines at these plants.
Burns also repeated the need for new, higher margin "innovative" and niche products like the Zafira and Speedster. Some more conventional products may be "displaced" in favor of these new products.
You may have noticed Burns mentioned the next Astra. This vehicle is too important, and too close to intro to have been cancelled, as recent rumors had claimed. What may change is the mix of body styles that are produced (8 for the current model).
North American chairman Bob Lutz continued the presentation, with an overview of the North American market and what GM's response needs to and will be.
As you might expect Bob focused on product issues, while Gary Cowger followed with manufacturing and cost reduction issues (which this summary will not include).
Lutz's detailed presentation really began with a discussion of "Quality as a value" as a continuing focus of GM North America. An important aspect of this, begun by Zarella, is in "perceived quality." This relates to all of the visual, auditory and tactile impressions the customer gets from the vehicle. These are aspects of quality not easily quantifiable in statistical analyses such as J.D. Powers' "Initial Quality Study." In such "hard quality" measures GM is making good progress, and will continue to pursue improvement. What is needed is a focus on "micro design" issues, such as panel fit, flush fittings, parallelness and size of gaps, the fitting of window seals etc. In the vehicle interior, where Lutz acknowledges GM needs to make some "huge" improvements, it involves material quality, feel and appearance, where high gloss surfaces, poor grain, mismatches etc. create an air of "cheapness" and lack of quality, no matter how well it is put together. GM is aiming to improve this aspect of design, and Lutz and Cowger are holding weekly seminars comparing current and developing GM products to industry benchmarks, usually Audi or VW products.
In material cost reduction, Lutz's focus is on "content control", eliminating "content" customers don't want, use, need or notice, in order to reduce costs. Lutz's view is that much content does not sway customer purchase decisions, and should be eliminated. In some ways these content details are a key difference between Europe and other markets (European consumers favour smaller cars, seeking premium features and high specification in smaller vehicles, and paying more as a result).
Lutz also provided analysts with previews of several upcoming vehicles.
First was Cadillacs upcoming luxury activity vehicle. The Vizon inspired LAV (to be called SRX when it goes into production March next year) is not so much SUV, but more like DCX's Chrysler Pacifica and Mercedes-Benz GST. Lutz promises "sensational" ride and handling similar to the best sports sedans.
The Hummer H2 SUT has been delayed (probably to late 2003), not because of cost pressures, but to better manage volume with expected high initial demand for the standard H2.
Lutz confirmed the 2004 Malibu will be an American version of the Vectra, with minimal changes to styling. One difference will be in the form of the long wheelbase "Signum" version. While in Europe this will be a premium grand tourer, the North American version will be more like the Traverse concept — a crossover with a higher roof than normal station wagon and a highly reconfigurable interior.
Like the Astra the standard Cavalier is still being developed. Lutz showed a proposal for a 4-door sedan, which will be near identical to the next Astra, inside and out. Higher margin niche versions are also planned, such as a coupé (as with the current models) and "one better," something like the PT Cruiser. Lutz revealed a design sketch referred to as "HHR" (with reference to "heritage" and the SSR) inspired by the 1949 and '50 Suburban (for reference see Don Gilbert's similar 1954 GMC Suburban and other early '50s Suburbans at the Old Burb Club website).
Pontiac's 2004 (possibly calendar year rather than model year) Grand Am (shown in profile) "did extremely well in clinics" and did not require any modification. It picks up on the clean athletic lines also seen in the Solstice. Lutz describes it as a design with "charm," and lean, taught lines.
The Hummer H3 is based on a smaller GM truck frame than the H2, and would be about the size of the Grand Cherokee or Ford Explorer. Like the H2 the underlying platform would be extensively modified, with the recognised Hummer design image for potential military application and ruggedised construction. While civilian H3s would sell for a premium price I believe a more spartan version should be considered by GM and AM General for military markets currently served by vehicles such as the Blazer, Toyota Land Cruiser and Land Rover Defender.
Lutz closed with an overview of three of GM's 2002 NAIAS concepts, and their relevance to GM's future.
While many were disappointed by the Belair concept's exterior design, Lutz describes it as "very successful." Based on GM's new small truck platform, which would be GM's lowest cost architecture. The "heritage" design philosophy is one that Lutz wants to explore further.
Lutz believes a strong European flavour is required for a "sporty, youthful, exciting" brand like Pontiac. The well received Pontiac Solstice concept is a "departure from the excessive cladding and complexity" of recent Pontiac designs, eschewing aggression, for a simple athletic purity of form.
The Autonomy concept, although a futuristic flight of fancy, demonstrates GM's confidence in advances in fuel cell technology, and the design possibilities it opens up.
Further details, which will likely include more new product information, will be outlined in GM's annual analysts conference in March.